Intellectual Capital's Incentive And Risk Control

The 21st century is the age called knowledge-based economy and in this age, the focus of the competition is not merely on tangible financial capital, but on the intellectual capital such as intangible assets, knowledge and technology, management capacity. Therefore, intellectual capital becomes the rare resource also the core resource in the competition and development of enterprise. While intellectual capital, as the core competence of enterprise, is creating values and winning competitions for enterprise, if intellectual capital is wrongly incented, enterprise's development will have bad influence and its value will be damaged. Because intellectual capital has risks such as depreciation and so on, it is necessary to put research on how to control the risks of intellectual capital.The thesis consists of six chapters.Chapter 1 is an introduction to the background of intellectual capital, propose and significance of the thesis, its structure and main content, and research methods explored in this paper, through which, readers could have a general understanding in regards of this paper's outline.Chapter 2 deals with the concept of intellectual capital. It gives an introduction to how researchers both at home and abroad understand intellectual capital.Chapter 3 discusses about how to design proper incentives for enterprise given special properties of intellectual capital. It first puts forward three kinds of inspirit mechanism, and then proposes corresponding inspirit mechanism according to their features respectively, which therefore, makes traditional inspirit theory more systematic and enhances the practicability of the inspirit theory.Chapter 4 focuses on studying company risk prevention mechanisms. As we know, Intellectual capital's risks not only come from enterprise's incentives to intellectual capital, but also from extern environment. In order to prevent from losing intellectual capital, it is a must to pay high attention to risk control of intellectual capital. This paper analyzes character and variety of intellectual capital risk and discusses the prevention measurement in order to minimize company's loss and maximize its income.Chapter 5 is devoted to analysis of the UT Starcom Co., Ltd. case by using the incentive theory and risk control advices. This paper gives its own advices on how to optimize intellectual capital's present incentive system for UT Starcom.In chapter 6, a conclusion is drawn and it also look forward to the relevant research that is to took out in this field in the near future.The main contributions of this paper are critically assimilating incentive measures of intellectual capital both at home and abroad, then providing a reasonable and comprehensive intellectual capital incentive based on the unique properties of intellectual capital; Using the incentive mechanism and risk prevention measures of intellectual capital to analyzing UT Starcom in order to provide a new way of thinking and new methods for high Tec knowledge-based company in regards of intellectual capital's incentives and risk prevention.There are still many deficiencies in this article because of restrictions of my personal knowledge structure. Although this paper attempts to quantify intellectual capital, the scope and depth of case analysis is limited due to difficulties of data collection about UT Starcom. Still, incentives and other issues of intellectual capital need to be studied further.