There are many special terms and names used within the scale of project. To support common understanding, here is short summary of project glossary:

BALANCED SCORECARD (BSC) – A measurement system that balances financial value and non-financial value. A balanced scorecard is typically divided into a number, usually between three and six, of focus areas that have been identified as critical for the company. The focus areas are populated with indicators that are measured. Suitable for communication around, and visualization of, value creation. The term was coined by Robert S. Kaplan and David P. Norton.

BENCHMARKING – A continuous process of measuring and comparing products, services and processes with those that are ‘‘best-in-class’’; leads to ‘‘best practice’’.

BEST PRACTICE – What has generated best outcome in the past

COMPLEMENTARY ASSETS – Anything that is valuable in getting an enterprise’s products, processes and services to the marketplace, both what exists at the present and what is planned for the future e.g. fruits of innovation including scientific and technological research. There are three types of complementary assets:

  • Generic Assets: General-purpose assets that need not be tailored to the innovation in question
  • Specialised assets: Assets with unilateral dependence
  • Cospecialised assets: Assets with bilateral dependence.

COOPERATION WITH ECONOMIC PARTNERS – This factor stands for cooperation between economic partners, which typically exists along the value chain (suppliers, customers).

COOPERATION WITH FUNDING INSTITUTIONS FROM THE PRIVATE AS WELL AS PUBLIC SECTOR – This factor describes the financial support from different institutions, such as EIB and EIF or private VCs.

COOPERATION WITH UNIVERSITY PARTNERS (E.G. BIGGER PROJECTS, PLATFORMS, STRATEGIC ALLIANCES, COMPETENCE CENTRES ETC.) – This factor describes different forms of cooperation with universities and other R&D institutions. It includes different forms of contracts, common projects and institutionalised forms of cooperation.

CUSTOMER CAPITAL – The value of customer base, customer relationships and customer potential. Component of structural capital.

EXPLICIT KNOWLEDGE – Explicit knowledge is formal and systematic  and can be easily communicated and shared,  in product specifications, scientific formulas or computer programs (Nonaka). Explicit knowledge is articulated knowledge – the words we speak, the books we read, the reports we write, the data we compile (Hubert Saint-Onge).

GEOGRAPHIC PROXIMITY OF ORGANISATIONS – The geographic proximity of organisations and local to regional factors are of high importance in many industrial site models and are partly seen as key factors for the success of companies within these regions. (Cluster and centre of excellence are potential examples which could be mentioned within this context).

HIDDEN VALUE – Value that is not shown in the balance sheet but still contributes to the organization’s value creation, for example knowledge. Equivalent to IC. Value not included in market capitalization but inherent in the company’s intellectual assets; Intellectual (capital) potential (Leif Edvinsson).

HUMAN CAPITAL – The accumulated value of investments in employee training, competence, and future. The term focuses on the value of what the individual can produce; human capital thus encompasses individual value in an economic sense (Gary S. Becker). Can be described as the employees’ competence, relationship ability and values. Work on human capital often focuses on transforming individual into collective competence and more enduring organizational capital.

INDICATOR – A measurement that visualizes a certain aspect of the organization that has been identified having an impact as a key success factor. Indicators are not to be mixed up with objectives, since indicators have the purpose of indicating a certain development and not to describe a target value.

INFOMEDIARIES – Middlemen between investors and investees who broker information on investment opportunities.

INNOVATION – An innovation is the implementation of a new (for the enterprise, the industry or the world) solution aiming at enhancing its competitive position, its performance, or its know-how. An innovation may be technological or organisational. A technological product (good or service) or process innovation comprises implemented technologically new products and processes and significant technological improvements in any of them. An organizational innovation includes the introduction of significantly changed organisational structures, the implementation of advanced management techniques and the implementation of new or substantially changed corporate strategic orientations.

 INNOVATION AND R&D BUDGET WITHIN THE COMPANY – For the implementation of innovation and R&D-projects corresponding budget must be provided. The necessary amount should correspond to the corporate strategic positioning (e.g., technology leader) and can be part of an innovation strategy.

INTANGIBLE ASSETS – An identifiable non-monetary asset without physical substance held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.

INTELLECTUAL CAPITAL – Intellectual capital is the combination of the human, organizational and relational resources and activities of an organization. It includes the knowledge, skills, experiences and abilities of the employees; the R&D activities, the organizational routines, procedures, systems, databases and intellectual property rights of the company; and all resources linked to the external relationships of the firm, with customers, suppliers, R&D partners, etc. This combination of intangible resources and activities allows an organisation to transform a bundle of material, financial and human resources in a system capable of creating stakeholder value. Intangibles to become part of the intellectual capital of an organisation have to be durably and effectively internalised and/or appropriated by this organisation.

IC REPORTING – IC Reporting is the process of creating a story that shows how an enterprise creates value for its customers by using its Intellectual Capital. This involves identifying, measuring, and reporting Intellectual Capital, and constructing a coherent presentation of how the enterprise uses its knowledge resources.

IC STATEMENT – An IC Statement is a report on the Intellectual Capital of the enterprise that combines numbers with narratives and visualizations, that can have two functions:

  • complement financial management information (internal management function);
  • complement the financial statement (external reporting function).

INSTITUTIONS FOR KNOWLEDGE TRANSFER AND SUPPORT – Knowledge transfer institutions offer and coordinate supporting measures, consult and organise dissemination, networking and matchmaking, etc. Beyond this regional or national state organisations also support export

INTELLECTUAL PROPERTY – Intellectual assets that qualify for legal or commercial protection i.e. patents, trademarks, copyrights, and trade secrets.

INTELLECTUAL PROPERTY RIGHTS – Protection of intellectual assets such as patents and trademarks.

INTERNATIONALISATION – Internationalisation leads to global competition, enhanced competitive pressure and at the same time to a decrease of the development time of new technologies through increased interdisciplinary cooperation

INVESTORS – Public or private organizations and private individuals who invest in new or existing ventures in order to achieve a positive financial outcome

KNOWLEDGE – Information that has value in the interaction with human capital. The ability people have to use information to solve complex problems and adapt to change. The individual ability to master the unknown. The ability to act (Karl-Erik Sveiby). Knowledge can be classified as explicit or tacit (Nonaka).

KNOWLEDGE ECONOMY – An economy in which knowledge is the most important input factor. The new economic theory for the knowledge economy is – in contrast to the conventional economic theory – developed in and for the knowledge era. It is especially characterized by the law of increasing returns (W. Brian Arthur and Paul Romer).

KNOWLEDGE INNOVATION SM – Creation, evolution, exchange and application of new ideas into marketable goods and services, leading to success of an enterprise, the vitality of a nation’s economy and the advancement of society (service mark owned by Debra M. Amidon, Entovation International).

KNOWLEDGE MANAGEMENT (KM) – Knowledge management includes managing information (explicit/recorded knowledge); managing processes (embedded knowledge); managing people (tacit knowledge); managing innovation (knowledge conversion); and managing assets (IC) (David Skyrme, Nick Willard).

LEADING FIGURES AND STAKEHOLDERS – This factor describes the role of leading figures (entrepreneurs,politicians, scientists) with regard to their influence on the shape of a RIS (Regional innovation system).

NEW TECHNOLOGIES – This factor stands for the implementation of new Technologies and technology transfer in companies. The acquisition of technologies can be done by own developments, purchasing technologies or patents, mergers and acquisitions or in course of cooperation.

ORGANIZATIONAL CAPITAL – Systematized and packaged knowledge,  plus systems for leveraging the company’s innovative strength and value-creating organizational capability.

QUALIFIED STAFF ON THE REGIONAL LABOUR MARKET – This factor describes the available number and the relevant qualification of specialised staff available on the regional labour market. To achieve this, a sufficient number of educational institutions in the region is necessary, which offer a corresponding study programme.

ORGANISATIONAL STRUCTURES FOR R&D AND INNOVATION – For the generation of ideas and innovative products permanent organisational structures for innovation projects are of importance. These structures can be formed by temporary innovation management groups, teams for the creation and assessment of ideas to the point of permanent R&D departments.

POLICY MAKERS – Civil servants on European, country, region or local level involved with the stimulation of the European knowledge economy

PROFESSIONAL EXPERTISE (OF POTENTIAL EMPLOYEES) / EDUCATIONAL STANDARDS – For the planning and implementation of innovation and R&D-projects a sufficient number of specialized employees are necessary in the companies. For a long term commitment of the employees and the development of a pool of skilled resources, career opportunities and incentive systems should be implemented.

RELATIONS TO NATIONAL GOVERNMENTAL INSTITUTIONS AND POLICY MAKERS – This factor describes the relation to several national policy makers and institutions, which govern the development of the regional entities.

RESEARCH & DEVELOPMENT – Research and development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new products or services.

RESEARCH/INNOVATIVE INTENSIVE SME – High tech SMEs including start-ups. For these SMEs R&D is a core activity. Medium and Low tech SMEs. These SMEs perform R&D or outsource R&D but it is not a core activity. Innovative SMEs who do not perform R&D but who are innovative.

R&D FUNDING (PROGRAMMES) – WHICH ARE REGIONALLY AVAILABLE (COULD ALSO BE NATIONAL ONES, FROM WHICH THE REGION TAKES BENEFITS) AND FISCAL INCENTIVES FOR R&D – This factor encompasses all kinds of direct R&D funding, such as diverse structural and thematic programmes on a regional, national and international (EU level).

SMES – Small and medium sized enterprises are enterprises that have between 10 and 249 occupied persons, a turnover of maximum 50 million EURO and a balance-sheet total of maximum 43 million. SMEs can be divided into: Medium-sized enterprises- Medium-sized enterprises have between 50 and 249 occupied persons. The turnover threshold is 50 million and the threshold for the balance-sheet total is 43 million. Small enterprises – Small enterprises have between 10 and 49 occupied persons. The turnover threshold and the balance-sheet total is 10 million.

STRUCTURAL CAPITAL – Customer capital and organizational capital. What is left in the company, when the human capital, the employees, have gone home. The result/value of past IC transformation efficiency/performance. The potential for future Intellectual Capital and financial value creation. The tool(s)/vehicles for human capital relationship value creation: Consists of value-creating and non value creating (value-consuming) components. The sum of intangible assets and intangible liabilities (Leif Edvinsson).

TACIT KNOWLEDGE Tacit knowledge is highly personal and hard to normalize and communicate. Tacit knowledge consists of know-how and mental models, beliefs and perspectives (Ikujiro Nonaka).

TANGIBLE ASSET – A physical or monetary asset. Often associated with the financial focus area.

TRAFFIC FACILITIES AND LOCAL PUBLIC INFRASTRUCTURE – This factor characterises the traffic and public infrastructure, especially public transport networks and super-regional transport connections.

TRUST, CONVENTIONS AND CULTURAL ASPECTS – This factor stands for non-formalised norms, rules, conventions,habits, traditions as well as trust, which arise from social Interactions in the long run. These values are bilaterally accepted and reproduced by all actors.

VALUE – A measure of people’s appreciation of some phenomenon. The value of goods and services can either be measured by the amount of money or other goods or services for which they can be exchanged. Value is what someone wants and is willing to pay to get it.

VALUE CREATION – Refinement and transformation of human capital, customer capital and organizational capital through mutual collaboration, into financial as well as non-financial value. A direct result of how people generate and apply knowledge

WEAK TIES” – (SUGGESTED FOCUS ON THE COOPERATION OF THE REGION WITH OTHERS) – This factor describes so called ‘weak tie’-relationships with others and also stands for an openness of the system to external actors.


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