Management of intellectual capital is an important issue in knowledge intensive organizations. Part of this is the composition of the optimal project portfolio the organization will carry out in the future. Standard methods that guide this process mostly focus on project selection on the basis of expected returns. However, in many cases other strategic factors should be considered in their interdependence such as customer satisfaction, reputation, and development of core competences. In this paper we present a tool for the selection of a project portfolio, explicitly taking into account the balancing of these strategic factors. The point of departure is the intellectual capital scorecard in which the indicators are periodically measured against a target; the scores constitute the input of a programming model. From the optimal portfolio computed, objectives for management can be derived. The method is illustrated in the case of R&D departments.

intellectual assets, knowledge capitalization, knowledge management, optimal portfolio
Organizational Behavior; Transaction Costs; Property Rights (jel D23), Business Administration and Business Economics; Marketing; Accounting (jel M), Production Management (jel M11), Transportation Systems (jel R4)
Erasmus Research Institute of Management
ERIM Report Series Research in Management
Copyright 2003, D. Daniels, B. De Jonge, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Erasmus Research Institute of Management

Daniels, H.A.M, & de Jonge, B. (2003). Project Selection Directed By Intellectual Capital Scorecards (No. ERS-2003-001-LIS). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from