The human capital and structural capital constitute the primary assets of every organisation and more and more every territory: on urban, local, regional, national and global levels. Restructuring technique, technology, organisation of production and work (means of production, subjects of work, power factors and economic factors) necessitates great knowledge, competence and skills, as well as the right organisational culture and philosophy. These factors constitute the basic elements of human capital. Mutual dependency of these factors results in the need of proper management of planning, organisation and motivation as well as of controlling human capital. Business practice confirms the need of developing basic organisational features that would result in creating a unique corporate image. It turns out that an individual character of a company facilitates its winning competitive advantage. Shaping the basic variables in corporate resources enables one to identify technical, organisational, economic and social features. Creating an individual character of a company on the basis of primary material resources rarely brings the desired effect. The material character of technical, organisational and economic resources is a feature that may be easily copied by competitors. Among the distinguished features, only human capital may thus decide on the individual character of a company.human capital, intellectual capital

Janusz Grabra

Piotr Pachura

Sebastian Kot

English

Research Papers in Economics

Revista economică 
32 
Piotr PACHURA, Ph.D. 
Janusz GRABRA, Ph.D Professor  
Sebastian KOT, Ph.D. Ing.  
Czestochowa University of Technology, Management Faculty 
 
 
THE CONCEPT OF INTELLECTUAL CAPITAL IN 
DEVELOPMENT SYSTEMS 
 
 
Abstract: The human capital and structural capital constitute the primary assets of 
every  organisation  and  more  and  more  every  territory:  on  urban,  local,  regional, 
national  and  global  levels.  Restructuring  technique,  technology,  organisation  of 
production  and  work  (means  of  production,  subjects  of  work,  power  factors  and 
economic factors) necessitates great knowledge, competence and skills, as well as the 
right organisational culture and philosophy. These factors constitute the basic elements 
of human capital. Mutual dependency of these factors results in the need of proper 
management of planning, organisation and motivation as well as of controlling human 
capital.  
Business practice confirms the need of developing basic organisational features 
that would result in creating a unique corporate image. It turns out that an individual 
character of a company facilitates its winning competitive advantage. Shaping the basic 
variables  in  corporate  resources  enables  one  to  identify  technical,  organisational, 
economic and social features. Creating an individual character of a company on the 
basis of primary material resources rarely brings the desired effect.  
The material character of technical, organisational and economic resources is a 
feature that may be easily copied by competitors. Among the distinguished features, only 
human capital may thus decide on the individual character of a company.  
 
Key words: human capital,  intellectual capital 
 
JEL Classification : J24, O15 
 
The concept of human capital 
The  concept  of  human  capital  may  be  considered  as  capital  itself. 
According to a dictionary definition, capital is every value that brings added 
value
1. There is no clear definition of human capital in the literature. Some 
experts dealing with the problem of corporate capital stress the role of tangible 
and financial assets, devoting less attention to human capital. A number of 
                                                       
1 Skrzywan S., Small Encyclopaedia of Accounting, PWE, Warszawa 1961, p. 78 Nr. 3 (46)/2009 
33 
authors identify human capital with the knowledge and skills of managers only. 
The definition is often limited to social factors describing human capital.  
Recently, human capital is most frequently defined as knowledge and 
skills acquired in the process of learning and professional training as well as 
health and vitality (…) that cannot be the subject of market turnover and cannot 
change its owner as it is an individual feature of this owner
1. In relation to 
business activity, human capital may be described as a combination of the 
following factors
2: 
-  human features: intelligence, energy, positive attitude, reliability and 
involvement, 
-  ability of a person to learn: receptivity, imagination, creativity and 
sound reason, 
-  motivating employees to share information and knowledge: team spirit 
and objective-orientation. 
The  existence  of  numerous  factors  characterising  human  capital  is 
confirmed by the cycle of human capital development and by the fact that 
knowledge  management  has  been  accepted  as  the  basis  of  human  capital 
management.  According  to  J.  Naisbitt  and  P.  Aburdene,  the  traditional 
understanding of strategic resources concerned mostly material assets, that is 
traditional production factors, whereas the contemporary definition of these 
resources stresses the importance of three elements: information, knowledge 
and creativity [Naisbitt, Aburdene1985]  
3. 
In  present  economic  reality,  knowledge  constitutes  one  of  the  most 
important factors determining competitiveness of economic organizations and 
in spatial context like urban and regional competitiveness. The above statement 
finds its application not only in case of various categories of economic entities 
but  also  on  the  level  of  regional  and  national  economies.  Condition  for 
economy based on knowledge require precise strategies to be implemented by 
local authorities. Those strategies have to take into account a particular role of 
intellectual resources while winning competitive advantage on a market. Top 
priority  of  knowledge  in  modern  economy  was  noted  among  others  by  P. 
                                                       
1 KoŜuch B., Investing in Human Resources and Economy Development, Papers of the 
Polish Economic Society, VII Congress of Polish Economists, Session IV: 
Entrepreneurship and competition, Book 12, Agencja Wydawnicza INTERART-TAL, 
Warszawa 2001, p. 5 
2 Fitzenz J., ROI of Human Capital, Dom Wydawniczy ABC, Kraków 2001, p. 9 
3 Naisbitt J., Aburdene P., Reinventing the Corporation. Transforming Your Job and Your 
Company for the New Information Society, A. Warner Book, New York 1985 (in:) 
Wawrzyniak B., Corporate Human Resources Management. (in:) Human Resources 
Management 2001, No 3-4, p. 52 Revista economică 
34 
Drucker who at the same time determines traditional means of production as 
being of secondary importance. Knowledge is understood as utility and means 
to achieve social and economic results. It is a basic asset applied to introduce 
innovations systematically [Drucker 1999] 
1. L. Edvinsson, one of pioneers of 
the  intellectual  capital  concept,  stresses  that  in  a  situation  of  economy  of 
knowledge, value of countries, regions, organizations and individual units is 
directly connected with their knowledge and intellectual capital [Edvinsson, 
Bounfour 2004]  
2. 
A concept of intellectual capital that goes back to the beginnings of the 
90’s  of  the  20
th  century  became  an  interesting  notion  to  investigate  for 
practitioners  and  researchers  from  various  scientific  disciplines.  Different 
conceptual  approaches  accepted  by  the  scientific  milieu  and  a  constant 
development of theories in this field have not resulted so far in creation of a 
standard and widely accepted definition of the  intellectual capital. Multitude of 
definitions  and  conceptual  approaches  may  result  from  a  broad  and 
interdisciplinary character of the intellectual capital as well as from different 
approaches presented by researchers working in economic and social fields.  
The second half of the 20
th century constitutes the beginning of a new 
stage of development of social and  economic relations. The shift concerns 
abandoning  production  of  material  goods  and  concentrating  on  production, 
organization,  transfer  and  exchange  of  knowledge  [Delanty  2001] 
3.  The 
mentioned shift caused conceptualization and perception of modern phenomena 
as the knowledge society [Giddens 1991] 
4. The authorship of this notion is 
attributed to Daniel Bell, the author of The Coming of Post-Industrial Society: 
A Venture in Social Forecasting issued in 1973 [Bell 1973] 
5. In his work, Bell 
points  at  decline  of  knowledge  as  well  as  society  of  practical  knowledge 
(technical,  professional)  and  the  beginning  of  theoretical  knowledge 
domination. This includes  development of technologies based on advanced 
research and theoretical works “a new intellectual technology”. Simultaneously, 
it  is  recognized  that  the  beginning  of  the  “knowledge  society”  era,  is 
                                                       
1 Drucker P.F., „Społeczeństwo pokapitalistyczne“, PWN, Warszawa 1999, str. 40-41. 
2 Edvinsson L., Bounfour A., “Assessing national and regional value creation”, 
Measuring Business Excellence, Vol. 8, No 1/2004, p. 55. 
3 Delanty, G. (2001), Challenging Knowledge: The University in the Knowledge Society. 
Buckingham: SRHE & Open University Press. 
4 Giddens, A. (1991), The Consequences of Modernity. Cambridge: Polity Press, Knorr 
Cetina, K. (1999), Epistemic Cultures: How the Sciences Make Knowledge. Cambridge, 
MA: Harvard University Press. 
5 Bell, D. (1973), The Coming of Post-Industrial Society: A Venture in Social Forecasting. 
New York, NY: Basic Books. Nr. 3 (46)/2009 
35 
accompanied  by  growth of importance of  education, particularly  on  higher 
education level.  
 
The intellectual capital 
The intellectual capital became a subject of investigations for economists, 
sociologists, specialists in management and accounting. According to literature 
studies presenting different scientific approaches it may be concluded that the 
main  source  of  intellectual  capital  is  knowledge  understood  as  a  factor  of 
primary importance for any organization’s value. While attempting to define 
the notion of the intellectual capital for the needs of the present paper it can be 
assumed that its main source is knowledge understood as a factor of primary 
importance for economic value. Understanding knowledge as a source of value 
was confirmed by Wriston who claims that “the new source of value is not 
material, it is information, knowledge used for creating value”  [Wriston 1992] 
 
1. The literature on the subject most commonly defines the intellectual capital as 
“knowledge that can be transformed into value or profit” [Edvinsson, Sullivan 
1996]
 2. The intellectual capital approached at an enterprise level is understood 
as “intellectual subject which has been formalized, seized and used to create 
assets of high value 
3”[Edvinsson, Sullivan 1996].  
According to a present stream of evolution of intellectual capital theory 
certain attempts have been made to transfer and apply this concept on national, 
regional and urban systems. The above approach fits into innovative policy 
foundations which aims at constructing economy of knowledge. Intellectual 
assets localized in regions become determinant for their future development. 
They  also  constitute  a  certain  base  for  creation  of  regional  and  urban 
innovations  systems  and  winning  competitive  advantage.  Edvinsson  in  his 
discussion over one of the first complex works concerning intellectual capital in 
regional  and  urban  context  (Bounfour  A.,  Edvinsson  L.,  eds.,  “Intellectual 
Capital  for  Communities,  Nations,  Regions  and  Cities”)  points  out  that  
intellectual capital considered in this sense can be seen as capacities to achieve 
regional  and  urban  competitive  advantage  in  the  future  in  the  following 
                                                       
1 Wriston W., „The Twilight of Sovereignty”, Scribner’s New York 1992 [after] Edvinsson 
L., Malone M. S., “Kapitał intelektualny”, PWN, Warszawa 2001, p. 10 
2 Edvinsson L., Sullivan P., “Developing a model for managing IC”, European 
Management Journal, Vol. 14, No 4, Aug 1996, p. 357, Stewart T.A. “IC: the new wealth 
of organizations”, Doubleday/Currency, New York 1997, Sullivan P.H., Harrison S., 
“Profiting from IC. Learning from Leading Companies”, Journal of Intellectual Capital, 
Vol. 1, Issue 1, 2000, 
3 Edvinsson Leif, Sullivan Patrick, „Developing a model for managing IC”, European 
Management Journal, Vol. 14, No 4, Aug 1996, p. 357. Revista economică 
36 
contexts:  human,  infrastructural  and  in  relations  between  single  units. 
According to the author, intellectual capital of a region is a capacity to generate 
constant wealth for its dwellers in the future
1. Bontis on the other hand, while 
conducting research on measuring the intellectual capital of countries, defined it 
as hidden values of units, enterprises, institutions, communities and regions that 
constitute a present as well as potential sources of wealth creation [Bontis 2004] 
2.  Authors  of  another  research  project  concerning  investigation  of  the 
intellectual capital of one of Polish regions propose to define intellectual capital 
as “region’s ability to a qualitatively new approach towards joining capacities 
that  the  region  already  possesses  in  order  to  create  new  values
3.  All  the 
definitions proposed let us understand the intellectual capital of a region as 
common knowledge of single regional entities. This knowledge constitutes a 
base for realization of specific strategies and taking effective measures in order 
to  assure  constant  socio-economic  development.  The  above  ability  and 
effectiveness  in  use  of  common  resources  of  knowledge  is  determined  by 
collective actions that aim at preservation of the effect of intellectual synergy. 
In  order  to  transform  individual  knowledge  of  single  actors  of  the  socio-
economic sphere into a common value, it is crucial to engage specific stimuli 
i.e. social capital as a factor favoring knowledge processes.  
A  modern  paradigm  becomes  the  fact  that  IC  defines  organization’s 
competitiveness,  also  in  global  conditions.  However,  IC  is  not  a  static 
phenomenon  and  its  level  is  changing,  thus  competitive  capacities  of  the 
organization  change  as  well.  IC  should  be  perceived  through  a  dynamic 
systems based on system approach.  
The concept of intellectual capital in regional and urban system context is 
also frequently associated with investing in knowledge, in other words called 
non-material investments. On the one hand such approach may be considered 
as fully justified since to  achieve a high  value of  intellectual capital it is 
necessary  to  engage  certain  expenditures  which  in  turn  generate  specific 
intellectual assets. Investments in knowledge coming from public and private  
sources determine future development and growth of the intellectual capital of a 
region. The above category of investments is defined as expenditures aiming at 
                                                       
1 Edvinsson L., discussion on an internet forum: http://www.knowledgeboard.com, 
27.01.2005. 
2 Bontis N., „National Intellectual Capital Index. A United Nations initiative for the Arab 
region”, Journal of Intellectual Capital, Vol. 5, No 1/2004, p. 14. 
3 Projekt „Kapitał Intelektualny Lubelszczyzny. Badania potencjału regionu” (The 
Intellectual Capital of the Lubelszczyzna region. Research on the potential of the region” 
project), www.kapitalintelektualny.pl Nr. 3 (46)/2009 
37 
reinforcing the existing knowledge, acquiring new knowledge and favoring the 
circulation of knowledge. The result of investments in knowledge is generation 
or  diffusion  of  knowledge.  According  to  the  approach  presented  above, 
expenditures on education, research and development, trainings, innovations 
and software are perceived as main categories of investments in knowledge  
[Khan 2005] 
1. This approach, among others, goes together with the approach 
accepted by the OECD in reports published on the economy of knowledge of 
different countries. The enumerated above categories of investments are often 
identified with development of an economy based on knowledge.  
On the other hand however, identifying knowledge-absorbing investments 
with the level or sometimes even value of the intellectual capital seems to be, to 
say the least, superficial. It lacks deeper analysis of processes of creation and 
use  of  knowledge  resources  in  creating  value.  Despite  the  existence  of  an 
obvious correlation between investments in research and development as well 
as in education and the level of innovativeness,  on this basis it is hard to 
conclude  clear-cut  about  regional  or  national  creativeness.  An  important 
element  that  has  to  be  completed  seems  to  be  the  effectiveness  in  use  of 
investments made to create economic value. 
 
Closing remarks 
It has to be stressed that the future of scientific thought as well as that of 
tools for practical application in the process of urban and regional development 
is more and more frequently associated with concepts of knowledge creation, 
management and benchmarking of intellectual capital. The concept of IC could 
be regarded as a sign of system thinking and “a holistic vision”. The notion of 
IC constitutes a certain form  of “complement” to the  previously  presented 
vision of the economic reality. 
 
 
Bibliography: 
1.  Bell,  D.  (1973),  The  Coming  of  Post-Industrial  Society:  A  Venture  in  Social 
Forecasting. New York, NY: Basic Books. 
2.  Bontis N., „National Intellectual Capital Index. A United Nations initiative for the 
Arab region”, Journal of Intellectual Capital, Vol. 5, No 1/2004 
3.  Delanty, G. (2001), Challenging Knowledge: The University in the Knowledge 
Society. Buckingham: SRHE & Open University Press. 
                                                       
1 Khan M., „Estimating the Level of Investment in Knowledge Across the OECD 
Countries”, [in] Bounfour A., Edvinsson L., eds, “Intellectual Capital for Communities, 
Nations, Regions and Cities”, Elsevier Butterworth-Heinemann, Oxford 2005, pp. 39-40 Revista economică 
38 
4.  Drucker P.F., „Społeczeństwo pokapitalistyczne“, PWN, Warszawa 1999,  
5.  Edvinsson  L., Sullivan P.,  “Developing a  model for managing IC”, European 
Management Journal, Vol. 14, No 4, Aug 1996, Stewart T.A. “IC: the new wealth 
of organizations”, Doubleday/Currency, New York 1997,  
6.  Edvinsson  Leif,  Sullivan  Patrick,  „Developing  a  model  for  managing  IC”, 
European Management Journal, Vol. 14, No 4, Aug 1996, p. 357. 
7.  Edvinsson L., discussion on an internet forum: http://www.knowledgeboard.com, 
27.01.2005. 
8.  Edvinsson L., Bounfour A., “Assessing national and regional value creation”, 
Measuring Business Excellence, Vol. 8, No 1/2004,  
9.  Edvinsson L., eds, “Intellectual Capital for Communities, Nations, Regions and 
Cities”, Elsevier Butterworth-Heinemann, Oxford 2005,  
10.  Fitzenz J., ROI of Human Capital, Dom Wydawniczy ABC, Kraków 2001,  
11.  Giddens, A. (1991), The Consequences of Modernity. Cambridge: Polity Press, 
Knorr Cetina, K. (1999), Epistemic Cultures: How the Sciences Make Knowledge. 
Cambridge, MA: Harvard University Press. 
12.  Khan M., „Estimating the Level of Investment in Knowledge Across the OECD 
Countries”, [in] Bounfour A.,  
13.  KoŜuch B., Investing in Human Resources and Economy Development, Papers of 
the Polish Economic Society, VII Congress of Polish Economists, Session IV: 
Entrepreneurship and competition, Book 12, Agencja Wydawnicza INTERART-
TAL, Warszawa 2001 
14.  Naisbitt J., Aburdene P., Reinventing the Corporation. Transforming Your Job and 
Your Company for the New Information Society, A. Warner Book, New York 1985 
(in:)  Wawrzyniak  B.,  Corporate  Human  Resources  Management.  (in:)  Human 
Resources Management 2001, No 3-4, 
15.  Projekt „Kapitał Intelektualny Lubelszczyzny. Badania potencjału regionu” (The 
Intellectual Capital of the Lubelszczyzna region. Research on the potential of the 
region” project), www.kapitalintelektualny.pl 
16.  Skrzywan S., Small Encyclopaedia of Accounting, PWE, Warszawa 1961,  
17.  Sullivan  P.H.,  Harrison  S.,  “Profiting  from  IC.  Learning  from  Leading 
Companies”, Journal of Intellectual Capital, Vol. 1, Issue 1, 2000, 
18.  Wriston W.,  „The  Twilight  of  Sovereignty”, Scribner’s  New  York 1992  [after] 
Edvinsson L., Malone M. S., “Kapitał intelektualny”, PWN, Warszawa 2001 
 
 
 
 

Assessing national and regional value creation”,

Challenging Knowledge: The University in the Knowledge Society. Buckingham: SRHE &

Developing a model for managing IC”,

discussion on an internet forum: http://www.knowledgeboard.com,

eds, “Intellectual Capital for Communities, Nations, Regions and Cities”, Elsevier Butterworth-Heinemann,

Estimating the Level of Investment

Investing in Human Resources and Economy Development, Papers of the Polish Economic Society,

National Intellectual Capital Index. A United Nations initiative for the Arab region”,

Profiting from IC. Learning from Leading Companies”,

Projekt „Kapitał Intelektualny Lubelszczyzny. Badania potencjału regionu” (The Intellectual Capital of the Lubelszczyzna region. Research on the potential of the region” project), www.kapitalintelektualny.pl

Reinventing the Corporation. Transforming Your Job and Your Company for the New Information Society,

THE CONCEPT OF INTELLECTUAL CAPITAL IN DEVELOPMENT SYSTEMS

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