Technological innovation: a resource-based view
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# 7 Core capabilities as knowledge assets

There may have been a time in history when it was possible to value an organisation simply on the basis of its physical assets (e.g. goods, materials, plant, and buildings) and a very small number of intangible assets such as the goodwill of customers. But now the global economy, and society more generally, has moved towards one based on information and knowledge, putting a value on an organisation has become much more complex, largely because of the increased emphasis on and recognition of the value of an organisation’s intellectual capital – or knowledge assets.

In the case of many of our most well-known IT and technology companies, for example, this value is often in the source code of their software, their patents, and their brand names. By comparison, the physical assets they hold may be relatively low in value.

As Dobni (2010, p. 56) notes:

> This knowledge is fuelled by interaction with customers and value chain members in the competitive cluster. Second, knowledge is power, and for organizations, knowledge only becomes powerful if it is disseminated amongst those who possess common goals. The degree to which this knowledge is shared (the organization’s knowledge dissemination capacity) will propel innovation as it affords an organization both offensive and defensive positioning options.

> (Dobni, 2010, p. 56)

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