The Value of Intellectual Capital
In this post, I am going to challenge our current understanding of the value of Intellectual Capital. The concept has been widely treated and researched over the last several decades and a simple scan of the corresponding page on Wikipedia - https://en.wikipedia.org/wiki/Intellectual_capital -, simply defines it as: "... the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner ( organization ), covering the competencies of its people ( human capital ), the value relating to its relationships ( relational capital ), and everything that is left when the employees go home ( structural capital )... ". So far, I'm guessing there will be significant agreement on this context. My challenge starts when I look at the balance sheet of a regular company - e.g. a public company that shares their balance sheet details for disclosure purposes. I've reviewed a handful - I have to admit my skills, knowl...