The MICO Model of Intellectual Capital

Abstract

To date intellectual capital definitions have not dealt systematically with intellectual capital challenges. The paper takes a step further in the evolution of intellectual capital and defines intellectual capital according to its challenges. Market-to-book value, increasing returns and competitive advantage enable an asset to be defined as intellectual capital. Further, the ownership transformation of volatile intellectual capital is essential to the definition of owned intellectual capital. The paper divides intellectual capital challenges into two categories: (a) basic challenges that refer to the definition of intellectual capital and (b) ownership transformation challenge. Such an approach enables us to present the MICO model of intellectual capital.