intangible assets and value of territories
Geographic entities themselves are motors of sustainable development. From cities to départements to entire countries, a given territory has a value beyond what GDP and other traditional economic indicators can measure. The global value of a territory can be expressed in euros as well as in terms of strengths and weaknesses of its component assets, whether tangible or intangible.
The following asset categories make up the value of a territory:
Why measure the value of a territory?
A territory’s wealth is created through its economic activity, natural capital stock, and the quality of its infrastructure. The global value of a territory can be evaluated in consideration of its tangible and intangible assets and their strengths and weaknesses.
For local governments or other relevant stakeholders, the value of a territory can be conducted through:
- Extra-financial ratings out of 20 of each asset. This type of evaluation highlights strengths and weaknesses and offers insights on actions that help protect and develop the wealth of a territory
- Financial valuations, which calculates a reference value of a territory, allowing a measurement of project or public policy impacts on a given geographic entity. More in-depth than a simple financial analysis, project impact studies are useful tools for stakeholders of an administrative region. They can also be used to compare different scenarios of projects and help investors choose the most viable plan of action.
How is the value of a territory mesured?
For our previous projects, we have measured the global value of France and its départements as well as that of Belgium and Morocco. As with our company methodologies, two complementary methods allow us to determine the value of a territory:
Qualitative extra-financial method
Our method Thésaurus-Territoire attributes a rating out of 20 to each of the intangible and tangible assets that make up the wealth or value of a territory.
Our method Thésaurus-Territoire also allows us to calculate a financial value on all intangible and tangible assets of a given territory.
A few case studies
- Capital Immatériel
- KI Territoire