Intellectual Capital
Candlefocus EditorOn the one side, intellectual capital includes factors such as technical skills, innovative processes and unique information that are developed and accumulated by a companyʹs employees. On the other side, it also includes knowledge, brand recognition and patents, investments in research and development, and the sum of the knowledge contained within the organization.
With the ever-expanding plans for the acquisition of new knowledge, the utilization of existing knowledge, and the thoughtful implementation of best practices, managing intellectual capital is a key factor for success in any business across all industries from technology to finance and from retail to healthcare. It is impossible to measure a companyʹs intellectual capital in monetary terms, however, companies are increasingly finding more sophisticated methods for its identification and evaluation.
Investing in human capital is a vital part of growing a business. Hiring employees with the right skills, expertise and potential is key to fostering intellectual capital and keeping it flowing. Training and management of existing employees likewise contribute to this effort. Other types of investments in intellectual capital involve the development of new patents, the acquisition of other companies, or the use of state-of-the-art technology or software.
In short, intellectual capital is the driving force of successful businesses and the lifeblood of the boardroom. Companies must be proactive in leveraging the intellectual capital of their employees and other sources in order to compete in the rapidly evolving business environment. By doing so, they stand to reap the rewards of improved performance and greater overall value.