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 Netscape's 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.
Why?
? This is because a company's brain, the know-how, intellectual property, trade secre ...