Role Of Intellectual Capital In Innovation
1. Introduction
This opinion paper is on the contribution of intellectual capital to innovation, strategic value creation and knowledge sharing in an organisation. The paper first looks at defining intellectual capital and intellectual capital as the primary driver of a company’s performance. Thereafter the paper looks at the role of intellectual capital in innovation by discussing the intellectual capital components namely; human capital, structural capital, relational capital and spiritual capital. Finally, the strategic value creation by intellectual capital is discussed with examples relating to organisations. In conclusion, the paper covers knowledge sharing and how it can be used to develop intellectual capital in a company.
2. Defining
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• Driving Change – The adoption of improved ways of running key business functions can also benefit an organisation by increasing efficiency. 4. Role of Intellectual Capital in Innovation
Innovation is an important driver of business growth and it also enables a company to offer products at competitive prices in better quality. The improved prices and quality contributes to the competitive advantage and gaining a bigger share in the market. Innovation does not only create a competitive advantage but also collaborative advantage within the organisation.
Below are possible innovations that can come from organisations using intellectual capital;
• Process Innovation - In process innovation, new and improved processes are used to produce goods and services.
• Product Innovation - A new product or service is developed and has a direct impact on customer satisfaction.
• Organisational Innovation - In organisational innovation, the organisation focuses on the creation or alteration of some business practices, workplace organisation and external
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