Knowledge capital refers to any company asset that lacks a physical form and can’t be measured. These assets are also known as knowledge assets or intellectual capital. Employee knowledge, skills, experience, and learning are all examples of intangible assets. Company ideas, processes, licenses, franchises, software, and patents represent other knowledge capital as well.
What Small and Midsize Businesses Need to Know About Knowledge Capital
Small and midsize companies need knowledge capital to meet business goals. The higher the level of knowledge capital, the greater the productivity or profitability. In general, assets become more valuable when time and money are used to create knowledge. Knowledge can be enhanced by encouraging employees to share what they know and improve their skills.