Intellectual Capital

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