Aligning intangible assets to innovation in biopharmaceutical industry

This study investigates whether or not intangible asset is a source of organizational innovation according to the resource-based view of firm (RBV). Accordingly, this study designs an empirical model for verifying the influence of intangible assets on innovative capability within the Taiwanese biopharmaceutical industry. This study concerns intangible assets and, more specifically, its potential influence on innovative capability in the biopharmaceutical industry. In short, the empirical model analyzes the impacts of human capital, information capital, and organization capital on innovative capability from the resource-based and balanced scorecard perspectives. To clarify the relational influences of these contextual variables, the empirical analysis includes a structural equation modeling (SEM) that examines the hypothesized model fit and four hypotheses. The analytical results demonstrate that aligning intangible assets positively influence innovation process, and the organization capital mediates the relationship between intangible assets and innovative capability in the biopharmaceutical industry.