Book Review: Intangible Capital

Intangible Capital is a book that seeks to create a new way of thinking about our businesses and how we operate them. Traditionally our businesses and how we organize them, even how we measure and report on them, have been based on labor and tangible capital (property, plant and equipment). That’s because traditionally these were the motive forces behind how firms differentiated and made money. Firms that managed their tangible assets and labor effectively made more money than those that didn’t.

But what if the situation changed and tangible capital wasn’t as important as intangibles. Those intangibles might reflect the accumulated knowledge in the business, its strategies and recipes, its intellectual property and ideas. What happens to how we structure an organization and how we value an organization if intangible capital becomes as important, or more important, than physical capital?

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By Jeffrey Phillips

Intangible Capital is a book that seeks to create a new way of thinking about our businesses and how we operate them.  Traditionally our businesses and how we organize them, even how we measure and report on them, have been based on labor and tangible capital (property, plant and equipment).  That’s because traditionally these were the motive forces behind how firms differentiated and made money.  Firms that managed their tangible assets and labor effectively made more money than those that didn’t.

But what if the situation changed and tangible capital wasn’t as important as intangibles.  Those intangibles might reflect the accumulated knowledge in the business, its strategies and recipes, its intellectual property and ideas.  What happens to how we structure an organization and how we value an organization if intangible capital becomes as important, or more important, than physical capital? Leer más “Book Review: Intangible Capital”