What Is Innovation Capital?

What Is Innovation Capital?

What Is Innovation Capital? Jonathan Poland

Innovation capital is a form of intellectual capital that refers to the resources and processes that an organization uses to foster innovation. It includes anything that helps the organization to develop and implement new ideas beyond the creativity and talent of its employees. Innovation capital can take many forms, including intangible assets such as patents, trademarks, and copyrights. It may also include processes and systems that support innovation, such as research and development (R&D) programs, design thinking methodologies, and collaboration tools.

Innovation capital is important because it helps organizations to stay competitive and adapt to changing market conditions. By investing in innovation capital, organizations can create new products and services, improve existing ones, and find new ways to solve problems and meet customer needs. To effectively leverage innovation capital, organizations should have a clear understanding of their innovation goals and priorities, and should allocate resources appropriately. They should also ensure that their innovation processes are well-designed and aligned with their overall business strategy. The following are illustrative examples of innovation capital.

Launching an innovation under a strong brand can be a significant advantage as it may dramatically increase adoption.

Trade Secrets
Competitive advantages that are defended using secrecy. For example, a firm may have superior manufacturing processes that allows a new innovation to be manufactured cheaply at high quality.

Documented knowledge that can be leveraged by innovation teams such as a guide to setting up a business experiment.

Data sets that can be used for experiments, validations or ideas.

Intellectual Property
Legal rights such as patents that prevent the competition from copying an innovation.

Learn More
What is a Business Model? Jonathan Poland

What is a Business Model?

A business model is a plan or framework that outlines how a business intends to generate revenue and profit. It…

Credit Risk Jonathan Poland

Credit Risk

Credit risk refers to the likelihood that a borrower will default on their debt obligations. When an entity has a…

Market Intelligence Jonathan Poland

Market Intelligence

Market intelligence refers to the process of gathering, analyzing, and disseminating information about a market, competitors, and industry trends in…

Organizational Culture Jonathan Poland

Organizational Culture

Organizational culture refers to the shared beliefs, values, customs, behaviors, and symbols that characterize an organization and differentiate it from…

Brand Image Jonathan Poland

Brand Image

Brand image is the overall perception that consumers and the public have of a brand. It is the way that…

Information Advantage Jonathan Poland

Information Advantage

A unique knowledge that provides a competitive edge in a specific situation is known as an information advantage. This advantage…

Operations Planning Jonathan Poland

Operations Planning

Operations planning involves identifying and implementing strategies and tactics to optimize the core processes and practices that enable a business…

What is Stagflation? Jonathan Poland

What is Stagflation?

Stagflation is a period of high inflation, low economic growth and high unemployment. Stagflation is a economic phenomenon in which…

Product-as-a-Service Jonathan Poland


The Product-as-a-Service business model involves offering a service in areas that were traditionally sold as products. This model involves ongoing…

Content Database

What is a thought experiment? Jonathan Poland

What is a thought experiment?

A thought experiment is a mental exercise that involves exploring the implications or consequences of a hypothetical idea, story, or…

Brand Perception Jonathan Poland

Brand Perception

Brand perception refers to the way that a brand is perceived by its target audience. It’s important for companies to…

Machine Learning Jonathan Poland

Machine Learning

Machine learning is a method of teaching computers to learn from data, without being explicitly programmed. It is a type…

Creative Services Jonathan Poland

Creative Services

Creative services refer to a range of services that involve the use of creativity and innovative thinking. These services often…

Consumer Services Jonathan Poland

Consumer Services

Consumer services are services that are provided to individual consumers, rather than to businesses or organizations. These services are typically…

Market Risk Jonathan Poland

Market Risk

Market risk is the possibility that the value of an investment will decline due to changes in market conditions. This…

Triple Flag Jonathan Poland

Triple Flag

Triple Flag Precious Metals Corp (TFPM) is a gold-focused royalty and streaming company that offers diversified exposure to precious metals…

Small Business Jonathan Poland

Small Business

A small business is a privately owned and operated company with a small number of employees and relatively low volume…

What are Field Services? Jonathan Poland

What are Field Services?

Field service involves managing and deploying resources and assets at customer, public, and third-party locations, as well as providing services…