Abstract: The core of management in the knowledge economy is the development and deployment and utilization of intangible assets, the most significant being (tacit) knowledge, competence, and intellectual property. Intangible assets are the main basis of competitive differentiation and successful strategies in many sectors, as manifested in the growing literature on issues such as loyalty, intangible assets, complementary assets, appropriability, and technological know-how. This chapter discusses some of these important issues, the nature and development of dynamic capabilities, and draws implications for understanding the theory of the business firm.

Keywords: competences, complementary assets, dynamic capabilities, intangible assets, intellectual property, knowledge, knowledge economy,