Cognitive Capital and its Profitability

Abstract

Transformation of competition in cognitive capitalism makes the creation and increment values on the basis of intangible assets - knowledge, developments and ideas. The knowledge economy is becoming a significant resource of scientific and technical knowledge, which is made on the basis of a new form of capital - cognitive capital. Due to lack of development of a new type of economic system, formalization remains low. The concept of cognitive capitalism recognizes the predominant form of accumulation by misappropriation and exploitation of knowledge. The article analyzes the current economic processes in terms of the transition to a knowledge-based economy. At the article is been made the attempt of the scientific definition of cognitive capital. Have done an example of return on cognitive capital. The cognitive component of the national capital identifies monopolistic competition, that is competition for new ideas it promotes the search for new combinations, new applications, new knowledge, which reduces the overall price level. Of course, initially these new developments costs are included in the price structure, and initial development can be costly enough, but as the general price level is reduced scale. That is, this new application is possible more resource-saving, it allows you to receive the overall economy and thus contribute to lower prices.