Market valuation of innovation capital

The aim of this study is twofold. Firstly, an attempt is made to give a concise review of the concept of innovation capital and its measures in selected intellectual capital models and to analyse the process of the stock market valuation of a firm's innovation capabilities in theoretical framework. Secondly, an investigation of the relationship between the firms' innovation capital and their market value is conducted. The main findings of the study are as follows: innovation capital has a positive linear relationship with the firms' market value and this relationship is sensitive to inter industry differences in technological opportunity.