Intellectual Capital Inhibit Competition Case Study

Introduction
“Intellectual capital inhibit competition”. We strongly agree with this statement. “Intellectual capital” can be assumed as non-financial assets of a company because it is not easily translatable into financial terms. Intellectual Capital is the skills and knowledge of individuals that owned by a company. It can be used to produce wealth, gain more competitive advantage for the company and enhance value to other capital. Therefore, intellectual capital is increasing the competitive advantage in the company and thus decreasing the competition with others.
This topic is important because intellectual capital has been rarely studied or understood. Managers and investors are often neglect intellectual capital of an organisations. Handy (1989) concluded that the intellectual assets of a corporation are usually three or four times tangible book value. He said that no company would let the factory space idle, yet if CEOs are asked how much of the knowledge in their companies is used, they typically say only about 20 per cent. The importance of this topic is also reflected in the increased importance of the professional services industry and the

By increasing the capacity of workers, intellectual capital can be increased. Human capital is the firm’s collective capability to come out with the best solutions from the knowledge of its people. It is important because it is a source of innovation and creativity of idea, whether it is from brainstorming in a meeting room, improving personal skills or developing new products. Individual competence is important for organizations. This is people’s capacity to act in various situations. People create new ideas and new products, and they establish relationships that make processes truly work. Unfortunately, when people leave, they take along their knowledge, including internal, external, formal, and informal