Intellectual Capital
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Intellectual Capital
Definition:
The sum of knowledge
information,
intellectual property,
talent,
experience,
within a country or an organization
Example:
When the Netscape decided to go public (becomes a public company listed on the stock market) in 1995, it had $17 million USD in sales with 50 employees. After the first day of trading, the stock market in the United States valued Netscape at $3 billion! Individuals and institution had invested in the value of Netscapes people and their knowledge.
Effects of knowledge and intellectual
Positive
Talent people will discover new and unique products that can attract investors to invest on the company. Thus increasing the country economy.
Negative
The talent people may migrate to other countries who offer them better paid. As a result, the home country economy to decrease.
Effect on competitiveness and productivity of a company
The effect of knowledge and intellectual capital have on competitiveness and productivity of a company is it has the benefits of ideas and this is more advantages over their competitors as it has the sauce of wealth.
This is because a companys brain, the know-how, intellectual property,