Innovation is essential for a companys survival. Particularly in times marked by the rigors of an international economic crisis, the idea of the knowledge-based economy has come increasingly to the forefront. In a globalized market place, a companys ability to keep ahead through innovation is vital for ensuring the long-term maintenance and consolidation of its competitive edge. And its here that the intangible assets of European firms prove to be their greatest strength. But how can companies make better use of their intangible resources to their capacity for innovation over the long term? An intellectual capital statement (ICS) can help companies to evaluate their intellectual capital the intangible assets that are so vital for the companys success to give it strategic focus and embed it within the corporate strategy.