Intangible Assets: Value Drivers for Competitive Advantage

Abstract

In the current business environment of globalization and a demanding competitive paradigm, it is essential from a strategic management perspective to focus on the financial dimension of value associated with intangible assets to create sustainable long term advantages. Some of the organizational assets valued by the market but overlooked by current accounting practices are intangibles. The paper underlines significance of intangibles assents in knowledge economy and presents resourced based view perspective of intangible assets. Recognition and characteristics of various components of intangible assets are also highlighted. This paper presents the key issues pertaining to the management of intangible assets, focuses on identification and measurement practices for measurement of intangible assets and identifies value drivers for intangible assets.

Keywords: intellectual capital, knowledge economy, intangibles accounting, resourced based view, valuation