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management” stresses that for growth to happen, there is a strong need to integrate Human<br />

Capital into Structural Capital. Sharing, exchange flow, and transformation of knowledge<br />

from Human Capital to Structural Capital among other things according to him are essential<br />

for the success of national growth. He sees that strong communication infrastructure will<br />

facilitate rapid exchange of information and its translation into knowledge inherent into<br />

innovative processes, products and services (Tan, 2002, p.338)<br />

2.1.4. Renewal and development capital.<br />

Renewal and development capital is a component of intellectual capital that reflects the<br />

nation‟s capabilities and actual investments for future growth such as research and<br />

development, patents, trademarks, and start-up companies that may be considered as<br />

determinants of national competence in future markets (Malhotra, 2000, p.3). Abdul Samad<br />

Kazi suggests that, in a competitive market, companies, products, and services are fast<br />

duplicated more and more. According to Kazi, the ability of an organisation to innovate and<br />

develop new knowledge in its core competencies is a central feature of the organisation‟s<br />

future growth, and therefore is an excellent measure for evaluating the company.<br />

Renewal and development assets according to Kazi include investments in research and<br />

development, patents, trademarks, new products development, usage of advanced<br />

technological tools and the like (Kazi, 2004, p.57). The world is ever changing and what<br />

worked well in the industrial age may not work in the knowledge age. Gary Hamel, as cited<br />

in Kazi, A.S. (2004, p.57), claimed that companies inherited an important set of virtues from<br />

industrial era: diligence, replication and control. According to him, these virtues are<br />

becoming less important in an age where the new required virtues are creativity, imagination,<br />

diversity, speed, openness, and flexibility (Hamel, 1999).<br />

Francisco Javier Carrillo in “knowledge cities” stressed that, it is not enough only to manage<br />

knowledge assets. According to Carrillo it is imperative to create new knowledge. Renewal<br />

and Development assets include investments in research and development, new initiatives,<br />

using innovative technologies, using and exploiting new products and devices. Carrillo<br />

further suggested that Renewal and Development Capital shows the readiness of the<br />

organisation to deal with the future and what it brings with it and concluded that it reflects the<br />

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