intellectual capital

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Collective knowledge (whether or not documented) of the individuals in an organization or society. This knowledge can be used to produce wealth, multiply output of physical assets, gain competitive advantage, and/or to enhance value of other types of capital. Intellectual capital is now beginning to be classified as a true capital cost because (1) investment in (and replacement of) people tantamounts to investment in machines and plants, and (2) expenses incurred in education and training (to maintain the shelf life of intellectual assets) are equivalent to depreciation costs of physical assets.
Intellectual capital includes customer capital, human capital, intellectual property, and structural capital.

Use 'intellectual capital' in a Sentence

Even though it was expensive to pay the tuition of some of her workers, the manager knew that she was making a good investment in intellectual capital.
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The intellectual capital that was at work in the higher level of the U.S. government foreign relations office was immense and anyone leaving the organization was bound to create a great hole of expertise when they departed.
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The only thing that made the deal difficult was the the intellectual capital and base technology was already patented in another name.
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