Intellectual Capital: energy stored as information, the potential to create value; can be converted into physical and/or financial capital; IC ('ice'). Value is defined as that which satisfies the needs and wants of the consumers of goods and services. The stored potential to create value is what distinguishes IC from mere data, what makes IC a specific subtype of information. IC itself can be considered as value without being converted into physical capital (e.g., a building) or financial capital (e.g., money). Today’s service-based Information Economy often considers IC itself as value, such as when large amounts of physical and financial capital are invested in an internet service provider, the return being that customers of the service will value the information flow received, will expend financial capital in order to have access to it.

Intellectual capital is energy stored as information, much as ice is water stored in solid form. As ice holds the potential to be transformed to water, to flow, so IC holds the potential to be transformed to value, to flow. A first point of note is that IC in its base form is akin to potential energy (e.g., gravity) but not kinetic energy (e.g., motion), so in order to create value flow it must be released, it must be used. If IC is not used it will sit and be cold, useless. A second point of note is that once IC is released, once it is flowing there must be direction, a distinct and monitored path for the flow so that value does not drain away.

My definitions of intellectual capital are functional as opposed to structural. Structural definitions of IC may focus on information technology systems, on the physical manifestations of data whereas functional definitions focus on what IC can do, how it is used. I suggest that functional definitions are more relevant and appropriate, as our global economy is based on the needs and wants of consumers. These needs and wants are based on thought, on perception, a consumer wants something not because of its physical structure, not because of its existence but rather for what it can do. Economics coordinates the distribution of scarce resources and it is function that makes a resource a resource, what allows a thing to satisfy a need or want. I therefore suggest that in many ways structural definitions of IC miss the point.

This website will explore some of the emerging frontiers of the 21st century, the ways in which intellectual capital can be defined, created, used, the effects it will continue to have on our economy and our lives in general. Below please find links to these topics, some links are more developed than others, all are in a continuing state of growth. Throughout the site you can click on the IC icon to come back to this homepage.

The Business Of Education - Why should business invest in education? Should investment be driven by enlightenment, self-interest or both? If universities are run like businesses and businesses are running their own universities...more

The Business Of Education, Part 2 - How is business investing in education? This section contains a nationwide directory with information on the education policies, programs and personnel of state chambers of commerce in all 50 states plus...more

National Insecurity - What is the greatest threat to national security over the next 25 years? Are we living off the benefits of past investments in IC? The relationship between America's IC infrastructure and its security...more

The Importance Of Being Human - In the 21st century business world does a person primarily exist as a physical presence or as a collection of data in the minds of others? Since people are the creators and users of IC, Frederick Taylor may come back albeit in a different form...more

Restricted Speech - What about free speech? Are restrictions on speech an impediment to the distribution and use of intellectual capital? The relationship between speech and the creation and flow of value can sometimes...more

Meet The New Biz, Same As The Old Biz - What IC accounting methods need to be developed? How can the present value of an IC asset be calculated? Will marketing change? Is classical economics still relevant? Must labor be redefined? Have organizational structures been inverted? Managers must...more

There's No Business Like Show Business - How can TV and movie studios conduct intellectual capital audits? How can show business executives identify the most valuable ideas as presented in pitches? in scripts? How can IC values be converted into financial capital values, into dollar amounts? The impact of 3C, the third screen and...more

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