The knowledge economy has brought a new set of dynamics to the
twenty first century business and economy. It is undeniable that
currently knowledge and innovation dominate the physical and
financial assets. The gap between book value and market value is
vast and continuously increasing in many firms. These trends have
made it crucial to accurately measure and effectively manage
intellectual capital. Although, the importance of intellectual
capital is widely recognized, intellectual capital measurement and
management processes are still not well structured in most
companies. This is mainly due to the difficulty of measuring and
managing intangible assets, as they are not clearly observable as
tangible assets. However, today for many companies, it is
favorable, even essential to create and extract value from their
intellectual capital in order to obtain and maintain competitive
advantage and generate profits in the long run. This book offers a
comprehensive overlook on the measurement and management of
intellectual capital and provides case studies on two pioneer
companies in intellectual capital management, Skandia and Dow.
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