Intellectual Capital

Collective Knowledge (whether or not documented) of the individuals in an organization or society. This knowledge can be used to produce wealth, multiply output of physical assets, gain competitive advantage, and/or to enhance value of other types of capital.

Intellectual capital is now beginning to be classified as a true capital because

1. investment in (and replacement of) people is equivalent to investment in machines and plants, and

2. expenses incurred in education and training (to maintain the self life of intellectual capital) are equivalent to depreciation costs of physical assets.

Intellectual Capital includes customer capital, human capital, intellectual property and structural capital.

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One thought on “Intellectual Capital

  1. Pingback: Intellectual Asset | MBA Bhejha Fry

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