Innovation and Intellectual Capital

Today in an extremely fierce and global competition, companies more than ever need some proven advice how to enhance innovation. Literature proposes intellectual capital as a source of competitive advantage that can eventually lead to higher innovation. Drawing on literature from creativity, innovation management and intellectual capital we propose a four component model of intellectual capital and prove its validity. We prove that indeed intellectual capital fosters innovation but it is by no means an easy or linear process. The analysis also shows significant interrelation proving that intellectual capital is indeed a complex construct.