Understanding Our Knowledge-Based Capital

Knowledge-Based Capital VisualIt is our non-physical assets that drive innovation, these make up our knowledge-based capital.  The economic value of managing our knowledge capital offers the Enterprise the opportunity to transform themselves and perform at higher levels of awareness.

It is becoming critical to understand our sources of knowledge, it gives us the unique capital that differentiates one Enterprise from another. The intangibles today are up to 80% of the value assigned to the (market value) worth. Managing these intangibles is critical to our future. Yet, we still have a very poor grasp of how to capture these and drive this knowledge capital. That needs to change.

It is the Knowledge and Innovation combined that make the firm competitive. There is this positive correlation between these two.

One amplifies the other, one deepens the other in the connected understanding. The basis for this comes from both human and artificial intelligence. As we learn to capture from both we build our capital base and strengthen our future potential. We make ourselves more sustainable as well as increasingly adaptive.

The greater the stock of knowledge understanding will increase the potential flows of innovation.

I wrote this about “stocks and flows“, it is worth a read in relating to the position of knowledge and innovation

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