Sectoral Intellectual Capital and Sector Performance in an Emerging Market

The role of creating long-term competitive advantage of intellectual capital for firms, industries, regions and countries has been widely recognized.However, the measurement of sectoral intellectual capital has largely been ignored in intellectual capital literature.Hence, this study proposes a method to measure sectoral intellectual capital index based on the modified value-added intellectual coefficient model (MVAIC) model.In addition, this paper also examines the contribution of sectoral intellectual capital index to industries performance across 12 industries in the Vietnamese economy from 2011 to 2018.Besides, the dynamic common correlated estimator (DCCE) technique is utilized in this study.Our results strongly confirm that sectoral intellectual capital index makes a positive contribution to both return on assets and return on equity across indutries in Vietnam.In addition, our findings indicate that securities sector has the highest sectoral intellectual capital index, while technology has the lowest.This study shed the light on the role of sectoral intellectual capital on industries performance.In addtion, our study also provides a valuable framework for policy makers in managing and enhancing sectoral intellectual capital within emerging markets.