Intellectual Capital Management

Part One introduces the reader to the world of intellectual capital by first examining the main dynamics that affect competition in the knowledge economy. Exploring these dynamics from multiple perspectives, intellectual capital is uncovered as the driving force behind competition in the knowledge economy (read also about money investment). Chapter 1 demonstrates that intellectual capital is the main driver behind mergers, startups, innovation, and hence business performance. As such, developing intellectual capital management as the core organizational competency is the formula of success. This, however, is a very general statement, and therefore Chapter 1 breaks this into a number of organizational competencies comprising knowledge, innovation and intellectual property management, creating the right culture for intellectual capital management, and synchronizing different programs into a comprehensive intellectual capital management system.

Before this part proceeds with the "how," it examines the classifications and models that emerged to define, recognize, and measure intellectual capital. Despite the great insight provided by the intellectual capital model, which to date has been the basis of all efforts and models to manage intellectual capital, it falls short of providing business with pragmatic practices and applications. Building on the intellectual capital model and expanding it immensely, the author develops the Comprehensive Intellectual Capital Management (CICM) model outlined in Chapter 4, after examining the question of IC reporting in Chapter 3.

The CICM model is designed to manage all forms of intellectual capital at three stagesknowledge, innovation, and intellectual property management. Though the latter two stages have been established for decades, they are presented under the light of the IC concept and combined with the new discipline of knowledge management to create the CICM model. Chapter 4 presents an overview of the CICM model and outlines its pragmatic features, and thus serves as a gate to Part Two.