break·through n . 1. The act, result, or place of breaking through against resistance, as in warfare; 2. a strikingly important advance or discovery
The world is now our manageable landscape. Connections are made East-to-West, North-to-South with many nodes in between. But The Innovation SuperHighway is not only a physical infrastructure, albeit technical and electronic. It is human – a function of insight, interaction and imagination resident in the minds, hearts and hands of people around the globe. I. A 20 Year Journey…
20 year journey AND celebration! Courtesy of http://pdphoto.org/ 20th Year Celebration!
Knowledge Economy Roots… “ Managing the Knowledge Assets into the 21 st Century” (USA) ‘ Knowledge for Development‘ – The World Bank (Washington, DC) “ Knowledge Wave Initiative” (New Zealand) 1987 2001+ 1996 “ Human Capital Reporting for the Knowledge Economy -OECD Observer” ( Paris, France) “ European Union Knowledge Conference (Utrecht, The Netherlands) ‘ Study Commission on the Implications of the Knowledge Economy ( Beijing, China) 2000 1997 1998 Global Knowledge Partnership I (Toronto, Canada) Global Knowledge Partnership II (Kuala Lumpur, Malaysia,) Knowledge Park – The World’s Fair (Hannover, Germany) IC Report for the Nation:Welfare and Security” (Stockholm, Sweden,) “ The IC State of Israel – Hidden Values of the Desert” (Israel) “ IC Statements: Towards a Guideline” (Copenhagen, Denmark,) “ National Conference on IC” (Lima, Peru) 1999 “ FASB Guidelines” (USA) “ Brookings Institute Report on Intangibles” (USA) “ Enterprise Value in the Knowledge Economy - OECD” (Paris, France) “ Indicators – The World Bank” (Washington, DC) “ Poland Prime Minister & Cabinet Visit” (New York, NY) 1994 1991 “ Grande Collogue de Perspective” (Lyons, France) “ Western Hemisphere Knowledge Partnership” (Boston, MA) “ US State Dept Briefing on Russia” (Washington, DC - USA) “ The Innovation Nation” by the Prime Minister (Singapore) “ National Intellectual Capital Index TM ” (UNOPS/ McMaster) “ E100: Building Collaborative Advantage” (NY City, NY) “ PDVSA Conference (Caracas, Venezuela)
“ The underlying truth is that the Knowledge Society is not only about rushing in with a diffusion of the Internet or the development of new technologies. Rather, it is about developing a society that maximizes the ability of all its members to participate in the process of knowledge production and diffusion. The Knowledge Society is not about technological innovations, but also about human beings.”
- “Understanding Knowledge Societies” (UN Division for Public Administration and Development Management) 3/11/2005
II. The Triple Knowledge Lens “ Economic theory has a problem with knowledge: it seems to defy the basic economic principle of scarcity… the more you use it and pass it on, the more it proliferates…infinitely expansible… What is scarce in the new economy is the ability to understand and use knowledge.” — World Economy Survey, The Economist , 1996 Key Slide #1 Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on
Karl Polyani: “Markets are a meeting place for the purpose of barter or buying and selling…Instead of the economy being ruled by social relations, social relations ruled the economy.” - The Great Transformation (1944)
Fritz Machlup: “There is a distinct ‘knowledge industry,’ that it is already one of the largest and most important in our economy, and that it is destined to grow absolutely and relatively.” - The Production and Distribution of Knowledge (1962)
Tom Friedman: Globalization has 3 phases: 1.0 Up to 1800 when things depended on states 2.0 1800-20000 when it was multinational corporations 3.0 Since 2000 when it’s up to brilliant individuals - The World is Flat (2005)
Transformation of assets - Juergen H. Daum (2003) "Intangible Assets and Value Creation". Figure 1.1: Development of the value of intangible assets as a percentage of total market value of S&P 500 companies between 1982 and 1999.
III. Welcome to the KIZ World “ Thirty years ago, 80 special economic zones (SEZs) in 30 countries generated barely $6B in exports and employed about 1M people. Today, 3,000 SEZs operate in 120 countries and account for $600B+ in exports and 50M in direct jobs.” – The World Bank (2006) Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on
KNOWLEDGE INNOVATION ZONES A Sampler ALMERE, NETHERLANDS BARCELONA, SPAIN DUBAI, UAE PALMERSTON NORTH, NZ CIUDAD DE SABER, PANAMA CALGARY, CANADA SILICONVALLEY, CALIFORNIA MANCHESTER, UK LEUVEN, BELGIUM MELBOURNE, AUSTRALIA JOBURG, SOUTH AFRICA TIANJIN, CHINA
Formation of Knowledge Innovation Zones (KIZ) Government/Industry/Academe Interaction Science, Technology & Cultural Parks Knowledge Clusters/ Collaboratories Knowledge Companies, Cities, Regions & World HIGH MEDIUM LOW Innovation-Based (real-time performance) Learning-Based (continuous/breakthrough improvement) Training-Based (discovery, interaction, resource allocation) Sustainability Intensity Degree of Stakeholder Interaction
Feature: US SAN JOSE IS THE WORLD’S MOST KNOWLEDGE COMPETITIVE ECONOMY ” World Knowledge Competitiveness Index (WKCI) - published by Robert Huggins Associates Research Technology Park Austin, TX
IDEAS Boston The Boston History Collaborative The Innovation Odyssey - 400 Years The Boston Foundation The Boston Indicators Report - Creativity and Innovation: Bridge to the Future - The Wisdom of our Choices Indicators of Progress, Change and Sustainability - The Massachusetts Technology Collaborative 2003 Indicators Metro Future The Boston Historical Society 'Venture Philanthropy' The Colleges of Worcester Consortium's Intellectual Capital Impact Study A journey…
Knowledge Corridor: Hartford/Springfield Silicon Valley Cultural Industries Silicon Alley – New York's Digital Media Scene
Feature: Canada THECIS - InnovaWest Ontario Centres for Excellence Culuturescope: Canada’s Cultural Observatory Niagara Region
Feature: Europe Barcelona Activa Bilbao, Spain
Almere, The Netherlands The Baltics: Estonia, Latvia and Lithuania Øresund Region: Copenhagen, DK Malmö, Sweden http://www.mva.org/composite-18.htm
Ireland: Knowledge is in our Nature Analog Devices BV AOL Citigroup GlaxoSmithKline Ingersoll-Rand (IR) Intel Lucent Technologies Inc Medtronic Inc Microsoft Corporation Olympus Corporation Oracle Corporation Pramerica Systems Ireland Ltd Pfizer Takeda Chemical Industries Ltd Wyeth Ireland's Unique Investment Environment - A skilled and flexible workforce - One of the lowest corporate tax rates in the world - Youngest and one of the best educated populations in Europe - A positive political and economic environment IDA Ireland (Industrial Development Agency) is an Irish Government agency with responsibility for securing new investment from overseas. Over 1,050 overseas companies have chosen to invest in Ireland as their European base.
Feature: India “ The Commission will advise the Prime Minister on matters relating to institutions of knowledge production, knowledge use and knowledge dissemination. The mandate of the Commission is to sharpen India's ’knowledge edge‘. “ Tomorrow’s societies will be knowledge societies. Tomorrow’s markets will be knowledge markets. Tomorrow’s wars will be fought not by the conventional weapons. They will be fought in the knowledge markets with the new weapons called information and knowledge.” - R. A. Mashelkar, Economics of Knowledge
Feature: Africa “ Progress through partnership. Progress through people.” Knowledge economy initiatives – is South Africa on board? “ In today's knowledge-driven economy, countries can no longer depend on natural resources alone to be globally competitive. Rather, the knowledge and resourcefulness of its people and its rate of innovation as a fundamental source of economic growth is what sets a country apart.” Mauritius Scheduled to be the 1 st wireless country in the world.
Feature: Asia Incheon, South Korea – Virtual Models Island City – Fukuowa, Asia and the rest of the world Malaysia Innovation Corridor
Singapore Beijing, China “ To many people, the word "innovate" conjures up images of science labs, high-tech computers, and people with a string of degrees working in a faraway place called Silicon Valley. But that is incorrect. Innovation is nothing more than coming up with good ideas and implementing them to realize their value. It is about value creation….Throughout the history of mankind and civilizations, countries and corporations, which were able to anticipate, respond and adapt to changes quickly, have triumphed over others. Those that failed to act and react quickly fell by the wayside.” - Singapore Prime Minister Goh Chok Tong Artist’s Impression of “Fusionopolis” to be developed at One North, Singapore
Feature: Middle East Dubai Knowledge Village Knowledge Oasis Muscat (KOM) - Oman Abu Dhabi - CERT
Feature: Down Under Desert Knowledge Australia Building networks and partnerships across Australia to create and economic and socially sustainable future. A national research network linking local and indigenous and local knowledge with science and education to improve desert livelihoods. New Zealand: Catching the Knowledge Wave
Feature: Latin America Panama City of Knowledge Monterrey, Mexico Brazil IDB
http://english.cas.cn/eng2003/page/KIP.asp Knowledge Innovation - A Chinese cornerstone…
Knowledge Innovation in the mainstream of India…
“ To stay in lead and increase India's share in the global market, the Indian government and IT/BPO industry need to focus on moving up the value chain by cultivating deep and enduring innovation across three dimensions - a) Business model innovation; b) Knowledge innovation; and c) Ecosystem innovation .
- Shri. Jainder Singh , IT Secretary to the Government of India
“ According to the experts at the meet, we should concentrate to produce our own products...in 2005, India had registered 650 patents; China registered 2,500 patents while US and Europe had registered 45,000 and 25,000 patents. This is the difference of knowledge innovation.”
- Pratyush, www.indiadaily.org
http://www.sciencebusiness.net Zone Thinking - Throughout the EU and abroad…
Time to learn and prosper…together World Summit on Innovation and Entrepreneurship (WSIE)
80 speakers around the globe
commitments to action
focus on impact
IV. What to Manage… “ Companies that know how to innovate don’t necessarily throw money into R&D. Instead, they cultivate a new style of corporate behavior that’s comfortable with new ideas, change, risk and even failure.” — Fortune (March 3, 1997) Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on
Finding: 65% of CEOs expect to collaborate to radically change their enterprises over the next two years with an increased focus on operational and business model innovation as the key drivers of sustainable performance and change. “ The nature of innovation – the inherent definition of innovation – has changed today from what it was in the past. It is no longer individuals toiling in the laboratory, coming up with some great invention. It’s not a individual. It’s individuals. It’s multi-disciplinary. It’s global. It’s collaborative.” - Sam Palmisano, IBM Chairman and CEO http://www-935.ibm.com/services/uk/bcs/pdf/g510-6259-01-the-global-ceo-study-2006.pdf
V. Creating Value with the P 7 Blueprint Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on
Knowledge Innovation ® Zone KIZ P 7 Blueprint 5. Policies 3. Innovation Process 6. Practices 2. Principles Knowledge Innovation ® is a registered trademark of ENTOVATION International Ltd. 7. Pathways for Stakeholder Innovation 1 . Platform 4. Performance Design Phase Development Phase Deployment Phase Critical Slide #3 Key Slide #3
Platform : for a shared understanding the trends of the Knowledge Economy and determining the TKL implications for the enterprise.
Principles : to examine the trends, architectural considerations and options for action-based strategies for enterprise planning.
Process : to perform a systematic gap analysis of the relative strengths and weakness of the enterprise and create an integrated knowledge strategy and projects to affect high-performance.
Performance : to gain an understanding of which drivers and influencing variables are most germane and - if established - would yield expected standards of results, and to put the plan in motion.
Policies : to revisit existing policies to stimulate more effective the knowledge-based economic and financial policies to foster human and technical communications across boundaries and result in more efficient and effective innovation practices.
Practices : to establish bench-learning, (i.e., learn from the best), to transfer those insights into the leadership and to be able to map and visualize the knowledge innovation gained.
Pathways : to create mechanisms to ensure constant iteration of new products and services to meet constituent needs while maintaining an innovative competitive positioning.
“ It is about opening doors, developing long-term trade and investment opportunities in foreign markets for businesses, including small and medium-sized enterprises, women, youth and aboriginal entrepreneurs and new exporters.”
Conclusion: It is a matter of creating mutual advantage for each of the parties involved.
http://www.tcm-mec.gc.ca/menu-en.asp Video: ‘Canada – The Natural Home for the Innovation Economy’
VI. Where we are headed – Phase II Prototyping Arena Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on Focus on
Emerging Wave of 6 th Generation Technology as the Asset Customer as the Asset Knowledge as the Asset Project as the Asset Enterprise as the Asset Future as the Asset VI Adapted from Charles Handy’s Sigmoid Curve with Leif Edvinsson A B Quality Re-engineering Innovation I II III IV V
Primary Benefit: Operating within a living network of activity with common purpose linking communities and teams across boundaries that can lead to opportunities for leadership and global visibility.
Primary Risk: Executives of public and private ventures are experts in traditional competitive advantage and will need to be open to collaborative activity for mutual success (and eventual global leadership).
Phase II KIZ Goal: Collaborate to build capabilities for knowledge innovation worldwide, thus improving the ROI generated by the confluence of economy, society and infrastructure.
Expanding KIZ market-space(s).
Next generation metrics and indicators
Novel business model innovation
Innovation culture with a new mindset
Systems of enterprise-wide innovation
Testing ground for blockbuster ideas and entrepreneurial growth
“ We are creating a new economic world order based upon the flow of knowledge, (not technology), innovation (not solutions), value-systems (not chains), stakeholder success, (not satisfaction), and international collaboration (not competition).”
Applying the KIZ principles enables us to transcend traditional boundaries to accomplish what we and others cannot do alone. Further, we will make more effective use of knowledge innovation as a lever to generate sustainable growth and increased standard of living across our local, regional and global economies. Article available upon request.
3 KEY Slides… How to Measure… How to Manage… How to Create Value… Action details available upon request.