Comparative analysis on country reputation through patterns of intellectual capital: The case Portugal versus Romania

In the last decade the world economy has undergone numerous transformations that have changed the way we evaluate the assets of organizations, cities and countries. In this context, Intellectual Capital (IC) and Knowledge Management (KM), based on the management of intangible assets, became a factor of differentiation and competitiveness. The way countries are dealing with IC and knowledge management is a decisive factor in their international reputation, which in turn acts as country branding. Country branding is the image of a nation-state and from the link between this image and the success of its economy, corresponding to its competitiveness, its richness, the efficiency of the state and the quality of life of its citizens, among others. Reputable countries usually attract more investment and, consequently, are more innovative. While some decision makers argue that economic development should focus on investment and the creation of jobs, many studies have shown that this growth should be underpinned by the proper management of IC in all its dimensions. Assuming that is proved a cause-effect relationship between IC management and innovation - the most innovative countries are those with a better IC management and vice versa - the purpose of this study is to search for empirical evidence of a possible relationship between these indicators and the reputation of the countries. If it is possible to identify a connection between the variables that compose each index, we can design patterns that can guide the management of international branding strategy of each country. This paper uses multivariate data analyses techniques, including biplots methodology, in its attempt to study the case of Portugal versus Romania. These countries have different indicators, but both have problems in reputation management. In terms of originality, this empirical study aims to create discussions about the factors that determine the reputation of these countries.