Mike Weaver Featured in The Telegraph on the Value of Today’s Knowledge Economy

Mike Weaver, Managing Director and Head of Valuation Advisory EMEA, was featured in The Telegraph on the increasing value of intangible assets that comprise the knowledge economy.

Mike says, “The value of companies in today’s knowledge economy is mostly generated from their intangible assets such as software, intellectual property, or even employees’ capabilities and knowledge. These intangible assets drive innovation.”

The Telegraph reports that the knowledge economy, driven by hi-tech companies, is now worth £95 billion per year in the UK. Although hi-tech companies fuel the knowledge economy, companies across industries are investing in computer software, and putting less value on their tangible assets.

The Telegraph compares this revolution to the Industrial Revolution. Where the focus of the Industrial Revolution was on producing tangible items on mass, the knowledge economy focuses on sharing intellectual material and bringing it to market quickly with accessibility.

Mike says, “Our economy is in a process of major transformation, where knowledge is replacing labor and the value of goods and services from a company is based both on their tangible and intangible assets.”

The UK is embracing the knowledge economy, with 39% of businesses in the UK considered ‘knowledge-intensive’, according to the article. They are accomplishing this through strategic private-public sector partnerships, using technology like AI to drive efficiency and investing in software assets.

Mike warns that businesses must keep abreast on the value of their intangible assets. “Intangible assets can be separated or divided from the entity and sold, transferred, licensed, rented or exchanged. Monetizing intangibles is usually achieved through charging a royalty or license fee to third parties that wish to use the assets. Occasionally they are sold outright,” he says.

Read the full article here.

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