Understanding Intellectual Capital in a Business

Intellectual capital (IC) is just that: a capital asset consisting of intellectual material. As such, it is one of three forms of capital:
Financial capital;  Tangible or fixed assets, which include land, buildings, machinery, and other long-lived equipment; and Knowledge. To be considered intellectual capital, knowledge must be an asset – able to be used to create wealth. Thus Intellectual Capital includes: The talents and skills of individuals and groups; Technological and social networks and the software and culture that connect them; and Intellectual property such as patents, copyrights, methods, procedures, achieves, etc….

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