Towards an econophysics view of intellectual capital dynamics: from self-organized criticality to the stochastic frontier

The paper begins with research studying the concept and nature of Intellectual Capital (IC), as well as how close IC firms are to the stochastic frontier. Then basic concepts of complexity theory – such as agents, self-organized criticality (SOC), connectivities, fractals, and power laws (PLs) – are used to distinguish between two kinds of IC firms’ success: traditional SOC applications to how firms maintain their position in a changing industry vs . how an IC firm (such as Apple) creates a new stochastic frontier. The research sets up PLs as indicators of whether or not firms and industries are SOC-effective and includes propositions about: (1) How IC firms benefit from complexity dynamics and SOC; (2) How PL distributions are indicators of efficacious SOC and adaptivity; and (3) Why IC attributes serve to create more transient dynamics pertaining to the stochastic frontier and the rest of the industry's rank/frequency distribution.