Abstract
ABSTRACT Intellectual capital represents the strategic tool of success. It is the means by which an organization can be promoted and stabilized through the better utilization of the capacities and capabilities available to the human components. It gives the support to the participation in providing ideas and suggestions to produce new ways to ensure wishes and requirements of customers and the excellence on organizations competing. The research problem sheds the lights on the lack of management, understanding, use and importance of that resource in the studied factory and its role in adding competitive advantage, as well as the lack of ways to develop its products. The research also focuses on the role of intellectual capital components (human capital, structural capital, customer capital) to test its correlation and impact on the product development through pilot study on Children Clothing Factory in Mosul City. Result of correlation and impact test proved that there are significant relationship between intellectual capital and product development that means increased attention to intellectual capital in the studied factory helped in raising its potential and ability to develop products and allowed to strengthen its competitive position
