Knowledge capital is a concept which asserts that ideas have intrinsic value which can be shared and leveraged within and between organizations. Knowledge capital connotes that sharing skills and information is a means of sharing power. Knowledge capital is the know how that results from the experience, information, knowledge, learning, and skills of the employees or individual of an organization or group. Of all the factors of production, knowledge capital creates the longest lasting competitive advantage. It may consist entirely of technical information (as in chemical and electronics industries) or may reside in the actual experience or skills acquired by the individuals (as in construction and steel industries). Knowledge capital is an essential component of human capital. Knowledge capital at large can be a strong vision, strategic information on market and business model, networks, talent, supply chain, innovation and creativity. There is also knowledge liability, the unknown concerning future business models, lack of knowledge on product-service, on human potential, on governance and supply chain. The balance between knowledge capital and knowledge liability equals knowledge equity. Knowledge equity plus emotional equity equals immaterial value of the company (goodwill).
Famous quotes containing the words knowledge and/or capital:
“He who, in an enlightened and literary society, aspires to be a great poet, must first become a little child. He must take to pieces the whole web of his mind. He must unlearn much of that knowledge which has perhaps constituted hitherto his chief title to superiority. His very talents will be a hindrance to him.”
—Thomas Babington Macaulay (1800–1859)
“I still need more healthy rest in order to work at my best. My health is the main capital I have and I want to administer it intelligently.”
—Ernest Hemingway (1899–1961)