Intellectual Capital - the Bigger Picture
In simple terms the Intellectual Capital of a business is a combination of its Intellectual Property, and its Intellectual Assets.
To simplify this further, you can consider the Intellectual Property to be those aspects of the business which can be protected through legal processes (e.g. patents, trademarks, copyright, registered designs, etc.)
In simple terms the Intellectual Capital of a business is a combination of its Intellectual Property, and its Intellectual Assets.
To simplify this further, you can consider the Intellectual Property to be those aspects of the business which can be protected through legal processes (e.g. patents, trademarks, copyright, registered designs, etc.)
However, businesses have many other intellectual aspects which are valuable to the business, and which cannot be formally protected. In many instances these assets are very confidential, and thus a business would not want them to become known to competitors through a formal IP protection process (where you must identify what you are protecting). Quite often these assets allow businesses to have a competitive edge over competitors, and/or allow them to do what they do. These assets, which typically comprise knowledge, skills, and experience, are Intellectual Assets.
Intellectual Property often represents the core products and technologies that your business is about.
Intellectual Assets often represents the skills, expertise, confidential information, and knowledge that your business relies on to DO what it does.
Unfortunately, while Intellectual Capital is often key to a business, and may represent the bulk of value of its true assets, they are very difficult to measure in monetary terms. Hence it is very rare for them to appear on any asset or balance sheet. Consequently, many businesses are unaware of them and fail to use one of their most important business tools for growth
Intellectual Property often represents the core products and technologies that your business is about.
Intellectual Assets often represents the skills, expertise, confidential information, and knowledge that your business relies on to DO what it does.
Unfortunately, while Intellectual Capital is often key to a business, and may represent the bulk of value of its true assets, they are very difficult to measure in monetary terms. Hence it is very rare for them to appear on any asset or balance sheet. Consequently, many businesses are unaware of them and fail to use one of their most important business tools for growth
Intellectual Property represents what your business is about.
Intellectual Assets represent what enables your business to do what it does.
Intellectual Capital is the combination of both and represents a key business tool for any business.
Most businesses are unaware of their Intellectual Capital, and fail to use it to their advantage.
Intellectual Assets represent what enables your business to do what it does.
Intellectual Capital is the combination of both and represents a key business tool for any business.
Most businesses are unaware of their Intellectual Capital, and fail to use it to their advantage.
