Firms and Intellectual Capital at the Turn of the Millennium

This paper is a review of firm level theorising and practice in the field of knowledge management and intellectual capital. The review is based on the premise that we are at the beginning of a new social and economic era: the knowledge economy. As such, a re-thinking effort is needed for all aspects of the society. This review traces the history of management principles and practices on the issue of intellectual capital in a selective but analytical fashion. It highlights major characteristics of the movement, evaluates the implications of those characteristics and weaves a picture of firm level effort at understanding and managing intellectual capital— an effort which is a key part of the larger “knowledge management” movement. The review also pays particular attention to major findings and practices directly related to the valuation of intellectual capital as of today. Finally, a vision is proposed as to the probable directions of this movement.