10 Facts About Intellectual capital

Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner, covering the competencies of its people, the value relating to its relationships, and everything that is left when the employees go home, of which intellectual property is but one component.

Creating, shaping and updating the stock of intellectual capital requires the formulation of a strategic vision, which blends together all three dimensions of intellectual capital within the organisational context through exploration, exploitation, measurement, and disclosure.

Directly visible on corporate books is capital embodied in its physical assets and financial capital; however all three make up the value of an enterprise.

Creating, shaping and updating the stock of intellectual capital requires the formulation of a strategic vision, which blends together all three dimensions of intellectual capital within the organisational context through exploration and exploitation, measurement and disclosure.

Therefore, the organisational value of intellectual capital is developed via an ongoing and emergent process focused on the capability to leverage, develop and change the dimensions.

The management of intellectual capital is conceptualised as occurring via a multiple stage process, governed by an evolutionary logic.

Intellectual capital management is defined as a cycle of four inter-related sets of practices: strategic alignment, exploration and exploitation, measurement, and reporting of intellectual capital.

Management of intellectual capital is conceptualised as occurring via a multiple stage process, governed by an evolutionary logic.

The transfer of rights to intellectual capital to offshore subsidiaries is a major enabler of corporate tax avoidance.

Early methods of intellectual capital measurement include the balanced scorecard framework, the Skandia Navigator, and the Intangible Asset Monitor.