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What is intellectual capital?

Intellectual capital

This is a term that refers to the intangible value of a company, its staff and their total knowledge. It can include its relationships (relationship capital), its staff (human capital) and what is left when staff go home (structural capital).

Where have you heard about intellectual capital?

It is an academic term used to try to quantify assets a company may have that are not seen on a balance sheet, such as the skills and experience of its staff.

What you need to know about intellectual capital.

Although this is a vital asset to any business, it is subjective and very difficult to measure exactly. However, successful companies usually aim to boost their intellectual capital by training staff to a high level and making sure they are motivated to give their best in a comfortable and supportive environment. Firms which fail to take these considerations into account may find poorly training and demotivated staff will underperform, which can hit productivity and cause profits to suffer.

Find out more about intellectual capital.

Intellectual property is one aspect that makes up structural capital.

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