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Intellectual capital is the intangible value of a business, covering its people (Human Capital), the value inherent in its relationships (Relational capital), and everything that is left when the people go home (Structural capital), of which Intellectual property (IP) is but one component.<ref>Luthy, David H. "Intellectual capital and its measurement." Proceedings of the Asian Pacific Interdisciplinary Research in Accounting Conference (APIRA), Osaka, Japan. 1998.</ref> The term is used in academia in an attempt to account for the value of intangible assets not listed explicitly on a company's balance sheets.<ref>Brooking, Annie. Intellectual capital. International Thomson Business Press, 1997.</ref> A second meaning that is used in academia and was adopted in large corporations is focused on the recycling of knowledge via Knowledge management,<ref>Choo, Chun Wei, and Nick Bontis, eds. The strategic management of intellectual capital and organizational knowledge. Oxford University Press, 2002.</ref><ref>Wiig, Karl M. "Integrating intellectual capital and knowledge management." Long range planning 30.3 (1997): 399-405.</ref> Intellectual capital is used in the context of assessing the wealth of organizations.<ref>Thomas A. Stewart: Intellectual Capital: the Wealth of Organizations; Currency, 1998</ref> A metric for the value of intellectual capital is the amount by which the enterprise value of a firm exceeds its the value of its tangible (physical and financial) assets.<ref>Paolo Magrassi (2002) "A Taxonomy of Intellectual Capital", Research Note COM-17-1985, Gartner</ref><ref>{{#invoke:Citation/CS1|citation |CitationClass=journal }}</ref> Directly visible on corporate books is capital embodied in its physical assets and financial capital; however all three make up the value of an enterprise.<ref>Gio Wiederhold (2013) Valuing Intellectual Capital, Multinationals and Taxhavens; Management for Professionals, Springer Verlag.</ref> Measuring the real value and the total performance of intellectual capital's components is a critical part of running a company in the knowledge economy and Information Age. Understanding the intellectual capital in an enterprise allows leveraging of its intellectual assets.<ref>Khavandkar , Jalil & Khavandkar , Ehsan . (2009), "Intellectual Capital: Managing, Development and Measurement Models". Iran Ministry of Science, Research and Technology Press.</ref> For a corporation, the result will optimize its stock price.


Intellectual capital sections
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