Definitions by Iana Zborshchyk

Intellectual capital is the group of knowledge assets that differs a company from others similar organizations in the same industry.

Human capital is a component of intellectual capital, which refers to the knowledge, skills, and experience that employees take with them when they leave a company. The main function of human capital is producing innovations (product, technology, markets, equipment, and organization structure). Human capital increases in two ways: 1) a company uses a maximum amount of workers knowledge; 2) a maximum amount of the employees possesses knowledge that increases company market value. The index of human capital is an amount of new production in total output.