Definition

intellectual capital

Intellectual capital is knowledge that can be exploited for some money-making or other useful purpose. The term combines the idea of the intellect or brain-power with the economic concept of capital, the saving of entitled benefits so that they can be invested in producing more goods and services.

Intellectual capital includes the following: 

  • the skills and knowledge that a company has developed about how to make its goods or services;
  • individual employees or groups of employees whose knowledge is deemed critical to a company's continued success;
  • an aggregation of documents about processes, customers, research results, and other information that might have value for a competitor but is not common knowledge.
This was last updated in March 2007

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