Carol Yeh-Yun Lin and Leif Edvinsson
Scatterpl ot of Market Capi tal vs. Process Capi tal of Portugal 6.2 6.0
1996
1997
1995
Market Capital
5.8 1998
5.6
1999
5.4
2003
5.2 2002
2006 2001
5.0 2004
4.8
2005 2000 2007
2008
4.6 3.0
3.5
4.0
4.5 Process Capital
5.0
5.5
6.0
Figure 5: Scatter plot of market capital vs. process capital of Portugal For Spain, in regard to the development of market capital and process capital, as shown in Figure 6, a generally negative correlation appears starting from 2001 with 2008 hitting rock bottom. The declining short-term value creating capability partially explains Spain’s disturbing 19.5% unemployment rate in 2009, a projected gross debt in 2010 of 66.3% GDP and a stock market decline of -13% as of Feb. 11, 2010 (http://news.bbc.co.uk/2/hi/8510603.stm). Spain has been very hard-hit by huge declines in its property markets, and so it remains the only major economy in Europe still in recession; as a result, Spain government announced a 50bn-euro austerity package, including a civil-service hiring freeze, at the end of January 2010 (http:// news.bbc.co.uk/2/hi/8510603.stm).
Scatterpl ot of Market Capi tal vs. Process Capi tal of Spai n 1998
1996 1997
6.0
1999 2001 2000 2003
1995
Market Capital
5.5
2002
2006 2004
5.0 2007
2005
4.5 2008
3.0
3.5
4.0
4.5 Process Capital
5.0
5.5
6.0
Figure 6: Scatter plot of market capital vs. process capital of Spain
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