LAUSR

Abstract This study investigates the impact that intellectual capital (IC) and value creation have on a firm's performance, in relation to the leading innovative firms in the world, at the start of the Fourth Industrial Revolution. An analysis is based on the top 100 innovative companies from different countries and sectors, as indexed by Forbes in 2016, for the period between 2011 and 2015, by using the pooled OLS regression model. The Fourth Industrial Revolution characterizes the fusion of technologies, and is blurring the boundaries between physical, digital, and biological spheres. The study reveals that capital employed efficiency and human capital efficiency have a significant positive impact on a firm's performance, whereas, the relational capital efficiency and structural capital efficiency are not related to it. Findings also suggest that relational capital efficiency is positively related to the value creation of innovative firms, while all the other mechanisms of intellectual capital and Modified Value-Added IC (MVAIC), are not associated with the value creation of innovative companies. The study advocates that innovation policies are critical, and require a rigorous review from the top management in order to meet the challenges of the Fourth Industrial Revolution, that is heavily innovation-based, and requires overwhelmingly new competencies.