Knowledge value is the worth or usefulness of knowledge. This is extraordinarily difficult to estimate as seemingly interesting knowledge assets may not have much impact on an organization's future revenue and cost. The following are common ways to value knowledge.
CostThe cost that was paid to generate the knowledge. For example, the amount you paid employees to develop a document.
Market ValueThe estimated market value of knowledge. Currently, the market for knowledge assets isn't particularly liquid such that it is difficult to benchmark prices accurately.
Economic ValueAn estimate of the future impact of knowledge on your revenue and costs.
GoodwillWhen one firm acquires another, intangible assets such as brands are accounted for with a concept known as goodwill. This represents the difference between the price of the acquisition and the value of its assets. In cases where knowledge is the primary intangible asset, goodwill is more-or-less the price that was paid for that knowledge. This serves as concrete evidence of the value of knowledge in an industry.
Knowledge has value to individuals as it may improve their quality of life in a variety of ways. Access to education, information and other knowledge related resources such as museums are valuable to individuals and communities as measured by quality of life.
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