Knowledge Creation and Transfer Effects on Decision Making

Abstract

Our economy has been moving towards an Information Age that relies upon intangible assets utilization that has not been fully captured in the financial statements of organizations. Between 1978 and the present, the non-book or intangible assets value of all companies rose approximately 70 % of market value (Rodgers, J Intellect Cap 8:205–215, 2007). Hence, today tangible asset value for companies in general reflects less than 30 % of market value. In this information/knowledge dominated environment, evidence on the employment of intangible or knowledge assets is becoming quite apparent. With the move of sophisticated economies from a resource-based to a knowledge-based production, many national governments have progressively more recognized “knowledge” and “innovation” as momentous driving forces of economic growth, social development, and job creation. In this context the elevation of ‘knowledge transfer’ has increasingly become a theme of public and economic policy. Our economy has been moving towards an Information Age that relies upon intangible assets utilization that has not been fully captured in the financial statements of organizations.