Developing a model for managing intellectual capital

Although there has been an explosive interest in an intellectual capital and a thirst for information on how it might be managed, there has been little written to describe or define the concept. This article provides background and definition to the notion of intellectual capital and describes where and how it fits into the 'knowledge company'. The article is written for theoreticians and practitioners alike. It is intended to provide an overview of intellectual capital, where it fits into the 'knowledge firm', what the component elements of it are, and what might be done to manage them. The article defines intellectual capital as well as its relationship to other elements of a knowledge company. The terms and definitions presented in this article are drawn from the experience of eight major international companies all of whom are actively managing their intellectual capital. The component elements of intellectual capital are identified, defined, and discussed. The management activities used in each of the component areas are described as are some of the techniques utilized by practitioners. Finally, there is a review of the actual practice of several major knowledge companies and how they manage their intellectual capital.