An Intellectual Capital framework to measure universities' third mission activities

•Third mission is a key part in the role of universities to foster regional development.•A framework is proposed to measure the third mission performance of universities.•The framework focuses on three interrelated areas of third mission goal.•For each area a set of Intellectual Capital indicators are presented.•The performance indicators measure the relationships of IC for value creation.

Third mission activities of universities are related to the generation, use, application and exploitation of knowledge with external stakeholders and society in general. Third mission cannot be considered as a residual function but complementary to the other two missions of universities: teaching and research. Performance criteria for measuring the third mission stream of universities have now become crucial. The call for performance measures is also driven by the European policy framework such as the definition of Smart Specialisation strategies (RIS3) which highlight the key the role of universities in regional development. In an attempt to cover this gap, the paper proposes a new conceptual framework based on Intellectual Capital approaches to measure third mission activities of universities. The framework establishes a generic approach for systematically analysing third stream activities in universities. Moving from the third mission goals, it focuses on three interrelated areas: research, i.e. technology transfer and innovation, teaching, i.e. lifelong learning and continuing education, as well as, social engagement in line with regional and national development. A first exploration of the framework in four European universities approaching third mission performance is provided to discuss implementation opportunities. Finally, theoretical and empirical implications are discussed indicating avenues for moving ahead academic research.