Identification And Measurement Of Intellectual Capital In Knowledge Based Firms

The rise of the "new economy",one principally driven by knowledge,is attributed to the increased prominence of intellectual capital as a business and research topic. Intellectual capital is implicated in recent economic,managerial,technological,and sociological developments in a manner previously unknown and largely unforeseen,there is much to support the assertion that intellectual capital is instrumental in the determination of enterprise value and national economic performance.Nowadays,there is a dramatic increase in the number of companies whose value lies largely in their intellectual capital,with relatively little or no value associated with their tangible assets. Substantial differences between these companies' book values and market values indicate the presence of assets not recognized and measured in company balance sheets. Intellectual capital accounts for a substantial proportion of this discrepancy. At present,the traditional accounting system is ineffective for measuring the true impact of such intangibles.Measuring intellectual capital is a growing area of interest in the field of intellectual capital research. A lot of researches have been conducted in order to define a feasible and reliable path to measure the intellectual capital of a company. Several models have been defined,though problems still remain to be solved. This article discusses the problem of valuing intellectual capital and devotes to construct a feasible measurement system to measure intellectual capital in the knowledge based firm,and this kind of system is based on the identification of intellectual capital. This system has two levels,First,at the firm level,financial performance of the whole value of the intellectual capital is developed;Second,at the operation level,the non-financial measurement is performed using IAM theory,which is the kernel of this thesis.At the end of the thesis,Intellectual capital is further measured by artificial neural networks (ANN),moreover the relation between result of non-financial measurement and the value of intellectual capital is researched. This model is then applied to a knowledge-based company. The result of measurement is very important for the management of enterprise.