Intellectual Capital Types and Classification

Intellectual Capital

The result of mental processes and the competences of the people who own it is intellectual capital. It is an important form of capital that can be used for economic activity and generate income for its owner. It is divided into three types – Knowledge-based, Non-financial, and Intangible. Here is a breakdown of each type and its classification. It is crucial to understand all three types to maximize its use. Listed below are some common types of intellectual capital.

Knowledge-based Intellectual capital

In a knowledge-based economy, knowledge-based resources can generate competitive advantages for firms, organizations, nations, and regions. Knowledge-based intellectual capital strategy management addresses the role of organisations, institutions, and nations in knowledge storage and management. It addresses both practitioners and academics interested in this growing strategic asset. This paper provides an introduction to the topic. We will explore how to measure and manage knowledge-based intellectual capital and how it can improve the performance of an organisation.

Intellectual capital in knowledge-based organisations is a substantial component of organisational value. The components of intellectual capital are “soft” factors, but when considered in context, reveal the true value. The study also identifies the characteristics of the strengths of LK Styria’s intellectual capital, including its IT-structure, core competencies in the business fields, and positive relationships with board members and customers. While this framework emphasizes the importance of relationships, it does not exclude the role of tangible assets.

Non-financial Intellectual capital

Intellectual capital is a non-financial asset in the form of collective knowledge and resources that a company has, and which cannot be easily replaced by money. Intellectual capital is used to measure the value of a firm’s intangible assets and divide them into categories that are meaningful. Other types of intellectual capital include human capital, information capital, instructional and brand awareness. There are many ways to build intellectual capital for your business, from hiring better employees to developing new patents.

The idea that intellectual capital has an influence on market and financial performance is not new. Research has shown that firms that invest in intellectual capital have improved performance compared to firms that do not. A good use of intellectual capital allows for significant improvements in the quality of goods and services, new managerial technologies, and industrial innovations. Although this may seem counterintuitive, it is a very useful concept for non-financial firms to understand.


Many businesses have heard of intellectual capital, but how can companies use it to grow? The answer is to continuously reassess how best to apply this capital in their organizations. Intangible assets are important, but they also must be scaleable and synergistic. To keep track of how much of your company’s value is intangible, you should set up a control tower. Here are three ways to use this tool:

The first step is to identify which intangible assets you have. Then, measure the value of each of them in the form of a scorecard. The value of your intellectual capital will be the difference between book value and market value. This is the best way to measure intellectual capital. Once you have determined what assets your company has, you should start measuring your Intellectual Capital. If you’re using a scorecard, you can define all of the assets that are part of each component.

Intellectual capital Classification

The IFAC Guidelines for the Classification of Intellectual Capital were used for data collection. The guidelines are based on the IFAC Guidelines, and guide the disaggregation of capital types. They are considered superior to other frameworks for intellectual capital classification, because they consist of distinctly defined items within each of the dimensions. The authors’ study demonstrates how this methodology can help managers and investors measure the value of intellectual capital and improve the value of companies.

Intellectual capital is a set of knowledge resources that are stored in a variety of forms, and which may provide a competitive advantage. Various management theories and disciplines have different definitions for intellectual capital, and they are often used interchangeably. These terms include knowledge-based and non-financial assets. The OECD defines intellectual capital as the economic value of two dimensions of intangible assets. This is often the case when organizations use a variety of strategies to generate value.


There is no single synthetic indicator that can accurately measure the stock of intellectual capital. Measurements are based on a variety of criteria and have been used since Pulic’s work. Most of these metrics are non-monetary in nature, but can be useful for identifying which areas of intellectual capital are lacking. This article will explore the benefits of using this methodology and how it can be used to better measure the value of intellectual capital. The following sections will discuss some of the most effective measurement strategies for intellectual capital.

The first step in measuring intellectual capital is to define its definition. Intellectual capital can be viewed from an organizational standpoint. These intangible assets can be converted into new products, services, and processes. As long as these assets generate value, they are recorded. Some methods measure intellectual capital by using observable indicators. Other methods use reflective and formative indicators. In general, the most appropriate measurement method depends on the organizational culture and goals of the organization.