PPT Slide
“What economists really have been describing with growing frequency in recent years is the movement from a tangible-asset to an intangible-asset-based economy. The economy is not itself new, but the relative importance of economic assets has been fundamentally transformed. In an intangible economy, concepts such as patents, copyrights, customer relationships, brand value, unique institutional designs, the value of future products and services, and their structural capital (corporate culture, systems, and processes) become ever more important to firms. Most of the value of the intangible economy is anchored to a firm’s stock of human capital and to the locations in which they reside.”
Ross DeVol and Rob Koepp with Junghoon Ki, State Technology and Science Index Enduring Lessons for the Intangible Economy, Milken Institute, March 2004