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Intellectual Capital and Development

Dr. Ahlam Al-qubati

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     Today, the world is experiencing rapid changes in various technological, information, specialized, social and political fields, which has led to the emergence of new concepts, one of which is the concept of "intellectual capital", where institutions with their various activities seek  to benefit from the capabilities of intellectual capital in business, institutional, production, service and social tasks.             

      The issue of intellectual capital and its investment is increasing importance today as it is the main tributary that contributes to gaining and strengthening the cognitive and organizational capabilities of individuals, enabling them to produce new for the institutions they belong to with high quality and then expanding  their market share on the one hand, and maximizing their strengths on the other hand, which gives them an advantage competitiveness that distinguishes it from others.     

       Dealing with development on the basis that it has nothing to do with the intellectual and creative aspect of human resources is a very dangerous matter. 


The time has come to combine social, economic and political theories with the normative application of their foundations for development advancement, because it is the best way that enables any society to become productive, and achieve quality in institutions and societies that are supposed to become more  productive for knowledge and skill rather than focusing on the development of systems away from individuals. 

        The human resource for any institution is one of the most important components of intellectual capital, and development specialists have gone to adopt a system of postulates in this field, including emphasizing that the importance of intellectual capital outweighs the importance of other material resources as the main  guide for all activities, through the knowledge it possesses and the skills and experiences acquired in the various stages of education, work and training, whether in the specialized field or in practical or public life

Knowledge is the main motive of the development process in all its fields, and this is no longer limited to physical capital, as it was in the past.  Intellectual capital is based on the strategy of accumulation of knowledge and not on the accumulation of capital. 


From another perspective, intellectual capital is based on the combination of information, experiences, and data in human resources, and the faculties of creativity, innovation, research and development that it owns.  Therefore, intellectual capital consists of two parts, the first of which is the apparent knowledge represented by the information base of information, data and knowledge from various fields, and the other is the latent skills represented in the capabilities of individuals to invest that information in  production and employ it in its various fields.


        Human capital is concerned with planning and managing the quality of work, and appropriately determining the nature of the associated tasks, that is, it is one of the most important factors of production.  We do not mean here the issue of the amount of work, but we mean the skills that can be achieved by the employee, and therefore it is another way to increase production;  Therefore, the continuous improvement of human capital is critical to achieving comprehensive development, for example, a large part of Japan's continued prosperity was carried out by the emerging middle class, which gives great importance to knowledge and skill, as is the case for China,  India, Indonesia and Malaysia as well.

     Intellectual capital results from the interaction of the three components involved: structural capital, human capital, and customer capital.  The preoccupation of bodies and institutions seeking leadership has become how to manage these components to advance them, and develop the professional and productive level through them.  This proves the close relationship between human capital enhancement and development.  Therefore, human capital - which is an important and effective factor in improving the quality of life for societies at various levels - should not be neglected when searching for new ways to promote development.

     There is a direct relationship between intellectual capital and the process of comprehensive development advancement;  It has a strong impact on social and institutional development through the application of the information and skills possessed by individuals in various professional aspects, that is, intellectual capital referring to the knowledge, skills and motives possessed by individuals to develop their institutions and societies, which  made most organizations and institutions strive to own it as a resource strategically and as an essential source of innovation that enables it to maintain a competitive advantage.               

         In this regard, we note that the organizatins and institutions in Yemen - in light of the deteriorating living conditions and the ongoing conflicts - have entered the stage of real danger, as Yemeni institutions have witnessed major problems that resulted in the bankruptcy of most of them  , and the dismissal of their employees, which led to a high rate of unemployment and the spread of corruption of all kinds, which makes it an intervention on a dangerous slope.                                             

  If we assume that the job is provided with a somewhat adequate salary, one of the most important responsibilities that may become an obstacle to the management of human capital appears before the institutions, which is to provide an adequate level of job satisfaction, and it is  one of the tasks through which the institution provides professional care for its human resources.  At the same time, it is a basic requirement for increasing productivity and improving the quality of performance and production.  The concept of job satisfaction refers to “all facilitating and motivational measures and services provided by the institution with the aim of providing an appropriate professional environment, protecting its human resources from pressures that can be avoided in different ways according to their quality, or reducing work  injuries psychologically, physically and professionally.”  

  Professional care for human resources was previously just indicative social services, carried out by institutions or countries when they had a surplus in their budget and lacked the characteristic of an integrative nature.  This view has changed;  Productive efficiency comes when raising the level of job satisfaction, because the individual who suffers from a defect in job satisfaction for various reasons may represent this defect as an obstacle between him and making sufficient effort within the production process, while the individual who feels the appropriate  job satisfaction can participate seriously and effectively in Advance all tasks and make a distinguished effort that sometimes reaches creativity.

  We can say that one of the most important reasons hindering Yemeni institutions and bodies is the human resources management systems that still take their traditional style in the ways of dealing and employment, and the scarcity of interest in motivation, care and training, and this requires  the need to find a strategy capable of facing major challenges.  The basis of this strategy lies in how to take care of human capital, and therefore it is necessary to reconsider how human resource systems are managed;  To be able to invest an intellectual capital in a way that reflects positively on the outputs of institutions, and work according to the principle “that what is spent on their human resources is not a cost but a real investment” and that it will return to them  with positive returns, making them able to face huge challenges, and enable them to have a competitive advantage and continuity.

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