Definition of Intellectual capital:
The skills and knowledge possessed by an individual, organization, etc., regarded as a resource or asset.
Intellectual property is the value of a company or organization's employee knowledge, skills, business training or any proprietary information that may provide the company with a competitive advantage. Intellectual capital is considered an asset, and can broadly be defined as the collection of all informational resources a company has at its disposal that can be used to drive profits, gain new customers, create new products or otherwise improve the business. It is the sum of employee expertise, organizational processes, and other intangibles that contribute to a company's bottom line.
Some of the subsets of intellectual capital include human capital, information capital, brand awareness and instructional 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 cost because (1) investment in (and replacement of) people tantamounts to investment in machines and plants, and (2) expenses incurred in education and training (to maintain the shelf life of intellectual assets) are equivalent to depreciation costs of physical assets. Intellectual capital includes customer capital, human capital, intellectual property, and structural capital.
How to use Intellectual capital in a sentence?
- The intellectual capital that was at work in the higher level of the U.S. government foreign relations office was immense and anyone leaving the organization was bound to create a great hole of expertise when they departed.
- Even though it was expensive to pay the tuition of some of her workers, the manager knew that she was making a good investment in intellectual capital .
- There is no standard method to measure intellectual capital, and standards for measurement vary across organizations.
- The only thing that made the deal difficult was the the intellectual capital and base technology was already patented in another name.
- Intellectual capital refers to the intangible assets that contribute to a company's bottom line. These assets include the expertise of employees, organizational processes, and sum of knowledge contained within the organization.
Meaning of Intellectual capital & Intellectual capital Definition