What everybody is trying to do is work the problem of knowledge asset valuation from the bottom up. They point to software and patents and trained people. They try and estimate the valuation of that and add it up to come up with total Knowledge Capital. Well, that is not the way it works. That is not what value is all about.
Value is what the customers' demand as values and are willing to pay for it.
It is a top-down issue. Once you have completed the top-down validation, which demonstrates that the market recognizes the value, then you are entitled to look at the details. I do valuation of outputs before looking at the valuation of inputs. I first examine the capacity of a firm to receive revenue from customers who are willing to pay a premium price because they recognize that, in addition to the capital goods and manufacturing capabilities that you offer knowledge. Until the customer recognizes that fact, a firm's Knowledge Capital is not worth anything.