TITLE:
Effects of the Growth of Intangible Capital Value on Firms
AUTHORS:
Sabrina Pan
KEYWORDS:
Intangible Capital, Intellectual Property
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.12 No.10,
October
28,
2022
ABSTRACT: This paper discusses the effects of the growth of intangible capital
value on firms after a thorough synthesis of over 20 sources. It begins by
noting how the increased importance and prevalence of intangible assets and
intellectual property, such as patents, trademarks, and copyrights, in the
world economy over the past few decades has influenced various business
activities and corporate decisions. These impacts range from changes in the
competitive landscape within sectors to how firms borrow and choose targets for
acquisition. From these impacts, it is hypothesized that the burgeoning growth
of intangible capital will affect firms’ ability to borrow, how and why they decide to merge
or produce new products, and international trade deals. With these changes, it
is imperative that there will be further policies enacted to cover intangible
capital and intellectual property usage during international trade agreements
due to their heightened importance, changes within anticompetitive and antitrust legislation that take intangible capital into
greater account, and a furthering of new legislation
that pushes back against anticompetitive intellectual property rights and
patent trolls. Lastly, this paper concludes by highlighting the disparate
influence of intangible capital on two unique industries: fashion and
technology, along with suggestions on how to better protect intangible
assets in the future.