This paper aims to emphasize the quantification of intellectual capital, not disclosed on the assets side of the balance sheet in the smart and knowledge-based enterprise, because it is very important for the more precise quantification of the profitability ratio, such as the return on assets (ROA). For this purpose, the paper suggests the EIC (efficiency of intellectual capital) methodology. It points out the necessity for the new profitability formula, gives methodological solutions for it, and investigates the impacts of intellectual capital (IC) efficiency indicators on traditional and new formulas of profitability in the case of knowledge-intensive and smart companies. The research confirms the importance of improving the profitability measurement in the knowledge economy era, where exists the dominance of intangible assets. It emphasizes the need for the correction of the denominator of the traditional ROA indicator. The comprehensive measurement of the total intellectual capital, especially its non-disclosed component in the balance sheet, provides information for more precise and accurate profitability measurements. The paper points out the issue of improving the traditional financial ratio, such as the ROA. This can be achieved by incorporating the value of intellectual resources, which are undisclosed in the balance sheet, in its denominator. This solution results in creating a new profitability indicator—return on total employed resources (EOR). This EOR indicator is more successful in capturing the enterprise’s intellectual performance compared with traditional profitability ROA indicators. This fact leads to the conclusion that EOR is better profitability indicator especially for smart and knowledge-intensive companies.

Background: In modern business conditions, intangible assets have a dominant impact on the business performance of the company. R&D activities, the level of R&D investments and the efficiency of R&D investments affect company profitability. There are various performance indicators of R&D activities that have an impact on profitability. Purpose: Bearing in mind that R&D is the precondition of growth and development of the company, as well as the efficiency of R&D investments, is the key determinant of economic corporate responsibility, the purpose of this paper is to investigate the effects of various performance indicators of R&D activities on companies' profitability. The aim of this paper is to investigate the effects of R&D investments, R&D intensity and return on R&D capital on the profitability of highly innovative companies. Study design/methodology/approach: Correlation, regression and cluster analyses were performed to provide an empirical investigation of the impact of key R&D performance indicators on the return on assets (ROA) of highly innovative companies, which are on the list of the top R&D spenders in the world. The data for the analysis comprises 24 R&D-intensive companies for the period 2013-2021. Findings/conclusions: The regression analysis results conducted on the determined clusters show that all three analyzed indicators of R&D activities have a positive and statistically significant impact on ROA in highly R&D-intensive companies. It is confirmed that the effects of various indicators of R&D activities are bigger in companies with higher RDII. Limitations/future research: The sample encompasses the 24 companies listed among the top 50 R&D spenders worldwide, which is considered insufficient for extensive analysis. The other limitation is related to the short research period. As the R&D activities produce yields after several years, the possible direction for future research is to investigate the impact of accumulated R&D investment over several years on ROA.

In order to establish sustainable economic growth, governments around the world are increasingly introducing programs to support the environmental aspects of companies' business as part of their policies. In order to meet the demands of the market, and at the same time contribute to the realization of the principle of sustainability, companies increasingly invest in research and development and eco-innovation. The number of green patents is often used as a parameter of the intensity of eco-innovation. The question is how the possession of green patents affects the performance of companies and the economic growth of the national economies in which they operate. The subject of this paper is to consider the impact of green patents on the economic growth of national economies that are leading in the number of applied green patents. The aim of this paper is to determine the relationship between the selected indicators of green patents and the gross domestic product of these national economies.

Sustainable intellectual capital, in the new economy, is becoming a key determinant of sustainable growth and development of enterprises. This is an important precondition for gaining a sustainable competitive advantage of a modern enterprise. It is intellectual capital that includes knowledge aimed at solving environmental issues. Also, these intangible assets of enterprises include the so-called green innovations that contribute to the sustainability of enterprise business. Moreover, successful enterprises are expected to adopt corporate social responsibility strategies, and as a result, the concepts of sustainable intellectual capital and green intellectual capital are being developed. The aim of this paper is to present the basic characteristics of the modern approach to intellectual capital in the era of knowledge economy, i.e. to point out important elements of the concept of sustainable intellectual capital and the concept of green intellectual capital.

Circular economy and business according to its principles are gaining in importance in increasingly competitive business conditions. The main goal of the company is to make a profit through respect for the environmental and social dimensions. Through sustainable development and the application of the zero-waste principle, the emphasis is shifted to production that saves resources and uses renewable energy. The aim of this paper is to emphasize the connection between sustainable development and circular economy, as well as the possibility of extending the life of products and raw materials through the concept of the circular economy. The importance of this topic stems from the need to align economic goals with the goals of preserving resources and the environment. The main purpose is to show the connection between sustainable development and the circular economy, as well as to point out how compliance with standards and recommendations can help in the transition from a linear to a circular way of doing business.

In the conditions of economic globalization and a dynamic business environment, companies need to continuously improve and innovate their business, in order to avoid complex and fierce competition and to achieve long-term and sustainable success. Due to the intensive effect of technical and technological progress, the survival and success of the company on the market depends on the introduction of innovative changes in the company and the undertaking of research and development activities. Research and development activities are a crucial factor in generating knowledge, creating patents and innovations, as well as in the increasing of profitability in the business of modern companies. Research and development (R&D) and innovations are considered to be a cornerstone of competitive advantage. The object of this paper is to point out the vital importance that R&D has for innovativeness, i.e. for performing innovative activities at the level of European countries and worldwide.