Knowledge Innovation Policy (Federal KM - DC)

Knowledge, Innovation and Change Knowledge. Innovation and Change Knowledge Leadership and Change Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge. Innovation and Change: Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge, Leadership and Change Toward a National Knowledge Innovation Policy Debra M. Amidon Founder and CEO ENTOVATION International Ltd. Dr. Ramon C. Barquin Founder and CEO BARQUIN International Ltd.

Agenda
Introduction
The Need for a National Knowledge Innovation Policy
National Policy Inventory: The U.S. and Beyond
What should the US do?
Discussion

Exploration: We’re achieving KM - Is it Time for a National Knowledge Innovation Policy?

Context
Economic and financial crisis
Environmental challenges
“ Clash of civilizations” themes
Challenges to governance model
New administration with high energy and new ideas

Migration Opportunities
Facilitates the optimization of financial resources to maximize business goals; extrapolation of past performance, product/ marketing and benchmarking.
Appraisal based upon valuation with generally accepted financial principles; documents where you have been.
Based upon classifying costs - labor,material and overhead; has a direct impact on the efficiency of the business.
Facilitates the innovation of broadened goals - knowledge being a renewable resource; process is a bench-learning system for the creation, conversion and commercialization of ideas.
Appraisal based upon both financial and intellectual capital - managerial standards; points where you are going.
Based upon knowledge/learning indicators - organization memory, knowledge-sharing, partnering; has direct impact on performance and productive growth.
Map Measure Compass Business Planning Innovation Strategy Key Slide #1

Knowledge Innovation – Beyond KM

Why the Trapeze Parable? Photo by Morozova Tatiana Warriors of the Heart by Danaan Parry (1996) http:// www.entovation.com/gkp/trapeze.htm

The Concept
Definition: Knowledge Innovation®
The creation, evolution, exchange and application of new ideas into marketable goods and services for:
the success of an enterprise
the vitality of a nation's economy
the advancement of society .”
— Knowledge Innovation , PRISM (1993)
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

New Agenda for the World
Knowledge is the new organizing principle for society
Wealth-generating Assets come in the form of Intellectual Capital (IC)
Cyberspace is the new medium for knowledge transmission and capture
Competitiveness depends on collaboration and knowledge sharing through cyberspace
All of this is meaningless unless you INNOVATE!

Knowledge is the new organizing principle for society 1

Knowledge Economy
Utilizes knowledge as its principal driver - a wealth multiplier
Knowledge is leveraged in all ways for economic development
ALL economies of the world have made major advancements.

"The success of the economy will be determined by knowledge, skills and education" Tony Blair

Wealth assets come in the form of IC 2

Article available upon request. Key Slide #2

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.

KIZ P 7 Blueprint: Performance Intent: How would the US rank in contrast to Europe and in contrast to the rest of the world?

Cyberspace is the new medium for knowledge transmission and capture 3

What is happening? A world where knowledge is the most important of all commodities, hence we are trying to capture – and leverage – all knowledge…globally.

How Do We Cultivate and Capture Knowledge?
The Internet
Google
Collaboration mechanisms
Wikis
Social Networking Sites
Blogs
YouTube

Images
2006: 20 billion images on net
2010: By 2010 there will be 500 billion images captured by cell phone annually

Top Twenty Countries by % Population On-Line
Luxembourg 71/0%
Korea, South 70.7%
Hong Kong 69.5%
Switzerland 69.0%
Denmark 68.6%
United Kingdom 68.6%
Taiwan 67.2%
Liechtenstein 66.7%
Slovenia 64.8%
Germany 63.8%
Source: www.tofocus.info
Netherlands 90.1%
Norway 87.7%
Iceland 84.8%
Canada 84.3%
New Zealand 80.5%
Australia 79.4%
Sweden 77.4%
Japan 73.8%
Portugal 72.9%
United States 72.5%

“ 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
Knowledge Societies
(UNESCO) 6/1/2005

Competitiveness depends on collaboration and knowledge sharing through cyberspace 4

Competitiveness vs Connectivity
Netherlands 90.1%
Norway 87.7%
Iceland 84.8%
Canada 84.3%
New Zealand 80.5%
Australia 79.4%
Sweden 77.4%
Japan 73.8%
Portugal 72.9%
United States 72.5%
Luxembourg 71/0%
Korea, South 70.7%
Hong Kong 69.5%
Switzerland 69.0%
Denmark 68.6%
United Kingdom 68.6%
Taiwan 67.2%
Liechtenstein 66.7%
Slovenia 64.8%
Germany 63.8%
United States
Switzerland
Denmark
Sweden
Singapore
Finland
Germany
Netherlands
Japan
Canada
Hong Kong SAR
United Kingdom
Korea, Rep.
Austria
Norway
France
Taiwan, China
Australia
Belgium
Iceland
Source: www.tofocus.info (6/2008) Source: World Economic Forum (Davos - Oct/08)

- Accelerated globalization.
- Constant technology advances.
- Intensified competition.
- 765 CEOs and thought leaders
- 21 industries around the world
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 .” http://www-935.ibm.com/services/uk/bcs/pdf/g510-6259-01-the-global-ceo-study-2006.pdf

All of this is meaningless unless you INNOVATE 5

Innovation is “the commercial or industrial application of something new – new product, process or method of production; and new form of commercial business or financial organization.” - Joseph Schumpeter

Other Definitions of Innovation…
Innovation is the “intersection of invention and insight, leading to the creation of social and economic value ” – Council on Competitiveness 2005
Innovation covers a wide range of activities to improve firm performance, including the implementation of a new or significantly improved product, service, distribution process, manufacturing process, marketing method or organizational method.”
– European Commission 2004
Innovation – the blend of invention, insight and entrepreneurship that launches growth industries, generates new value and creates high value jobs.” – Business Council of New York State 2006
The design, invention, development and/or implementation of new or altered products, services, processes, systems or organizational models for the purpose of creating new value for customers and financial returns for the firm.” – Advisory Committee on Measuring Innovation in the 21st Century, US Department of Commerce 2008
An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. Innovation activities are all scientific, technological, organizational, financial and commercial steps which actually, or are intended to, lead to the implementation of innovations.” – OECD 2005
Innovation success is the degree to which value is created for customers through enterprises that transform new knowledge and technologies into profitable products and services for national and global markets. A high rate of innovation in turn contributes to market-creation, economic growth, job creation, wealth and a higher standard of living.” – Innovation Vital Signs Project 2007
http://www.bea.gov/scb/pdf/2009/01%20January/0109_innovation.pdf

The One Global Superpower, the United States, Isn’t Doing Very Well
Innovation and Competitiveness Ranking
6 th overall
Very little improvement in the last decade
Some areas are lower
9 th in higher education
17 th in corporate taxes
16 th in trade balance
34 th in foreign direct investment
Over the last decade it has made the least progress of all 40 countries measured in the study
Source: The Atlantic Century, February 2009

Many Initiatives Have Been Proposed
U.S. Council on Competitiveness
National Innovation Initiative (NII)
National Governor’s Association
Innovate America
National Innovation Foundation
Multiple publications
Several legislative actions
Suggested “Secretary of Innovation” position

The National Policy Inventory: The U.S. and Beyond

US National Innovation Initiatives (1)
Industry-university-research partnerships
Regional innovation promotion
Technology adoption
Regional industry clusters
Performance accountability
Innovation policy within and across agencies
National Innovation Foundation – Brookings Institute [2008]
Government: Framework for measuring innovation
Business: Firm and industry-level measures
Research: Innovation Outcome Measures
Innovation Measurement – Report to the US Department of Commerce [2008]
National Innovation Advisor
National Innovation Council
Office of Innovation Assessment
National Innovation Agenda John Kao [2007]
President’s Council on Innovation and Competitiveness
US Congress Legislation – Competes Act: P.L. 110-69 [2007]
The Federal Role
The State Role
The Governor Role
Build STEM Capacity
Align Postsecondary Education Compact
Implement Innovation-based Economic Policies
NGA Innovate America [2006-2007]
Talent: National Innovation Education Strategy
Investment: Frontier and Multidisciplinary Research
Infrastructure: National Consensus for Growth
National Innovation Initiative – Council on Competitiveness [2005]

Short-term:
Baldrige Quality Award -> Innovation Award
Manufacturing Extension Partnership (MEP) -> Innovation Extension (IPEP)
NSF Engineering Research Centers -> Design Research Centers
Federal government support research and teaching related to the services industries and service functions in the manufacturing sector.
Number of new measures to enhance disclosure and utilization of intangibles
Enact a permanent R&E tax credit, to transform the provision into a knowledge generation and acquisition incentive
Longer-term:
Analyzing regulatory activities with an innovation impact
R&D spending among federal agencies — OSTP and OMB
White House role in balancing intellectual property policy
National Foundation for Science, Technology, and Creativity
Government procurement to push new business models
Obama Innovation Policy – Athena Alliance [2008]
R&D Tax Credit
National Innovation Foundation
Foreign student Green cards
Patent system reform
Investment in IT
Federal Information Officer
National Broadband Strategy
Innovation-based foreign trade policy
Innovation Economics – ITIF [2008]

Purpose
Principles
Process
Performance
Policies
Practices
Prosperity
What’s on YOUR mind?!
Put in place incentives for firms to innovate within their borders
Be open to high-skill immigration
Foster a digital economy
Support institutions that are critical to innovation
Ensure that regulations and other related government policies support, not retard, innovation
The Atlantic Century: Benchmarking EU & U.S. Innovation & Competitiveness ITIF [2009]
Graduated Tax Credits for R&D Investments
Innovation Booster Grants
Innovation Awards
National Business Incubators
Innovation Training
Intellectual Property Auction
Innovation Index Fund
Cabinet Secretary of Innovation and Plan – BusinessWeek [2-11-09 and 3-9-09]

Sustaining Economic Viability… Threats From Nature Man Made Security Threats Requires New Mindsets: Intuition, Imagination, Innovation

15 December 2005 National Innovation Initiative Summit Same day…same location…same agenda? National Economic Summit

ITIF - The Atlantic Century HC = Human Capital ITI = Information technology Infrastructure IC = Innovation Capacity EPF = Economic Policy Factor E = Entrepreneurship EP = Economic Performance http://www.itif.org/files/2009-atlantic-century.pdf ■ ■ 2 nd 10 th Productivity EP ■ ■ 1 st 15 th GDP/Working-Age Adult EP ■ ■ 16 th 13 th Foreign Direct Investment EPF ■ ■ 20 th 16 th Trade Balance EPF ■ ■ 2 nd 8 th Ease of Doing Business EPF ■ ■ 22 nd (Last) Effective Corporate Tax Rates EPF ■ ■ 2 nd 10 th Corporate Investment in IT ITI ■ ■ 7 th 22 nd Broadband Telecommunications ITI ■ ■ 2 nd 22 nd E-Government ITI ■ ■ 4 th 12 th New Firms E ■ ■ 5 th 11 th Venture Capital E ■ ■ 2 nd 16 th Share and Quality of World Publications IC ■ ■ 4 th 15 th Government R&D Investment IC ■ ■ 5 th 17 th Corporate R&D Investment IC ■ ■ 4 th 20 th S&T Researchers HC ■ ■ 8 th 15 th Higher Education Attainment HC US vs. Rest-of-World US vs. Europe Rank & Decade Progress Indicator Driver

Suggested Hotlinks
Athena Alliance: http:// www.athenaalliance.org /
Brookings Institute – Blueprint for American Prosperity: http://www.brookings.edu/reports/2008/04_federal_role_atkinson_wial.aspx
Council on Competitiveness:
- Innovate America: http://www.compete.org/images/uploads/File/PDF%20Files/NII_Innovate_America.pdf
- Clusters of Innovation: http://www.compete.org/images/uploads/File/PDF%20Files/CoC_Reg_Found_national_cluster.pdf
- Monographs: Collaborate, Transform, Illuminate, Provoke, Define, Cooperate, Thrive, Reflect, Reveal, Advance, Discover, Prioritize, Engage, Compete, Rebound, and Prepare.
Innovation Measurement – US Department of Commerce: http://www.innovationmetrics.gov/Innovation%20Measurement%2001-08%20rev%20040908.pdf
Innovation Nation by John Kao: http://www.nytimes.com/2008/06/24/science/24prof.html?_r=1&ref=science
Information Technology and Innovation Foundation (ITIF):
- Atlantic Century: http://www.itif.org/files/2009-atlantic-century.pdf
- Innovation Economics: http:// www.innovationeconomics.org /
- ITIF 2008 New State Economy Index: http://www.itif.org/files/2008_State_New_Economy_Index_small.pdf
Kaufmann Foundation Thoughtbook: http://www.kauffman.org/about-foundation/kauffman-thoughtbook-2009.aspx
National Governor’s Association (NGA) Innovate America Task Force:
http://www.nga.org/Files/pdf/0707INNOVATIONFINAL.PDF
National Research Council and National Academy Press:
- Rising above the Gathering Storm: http://books.nap.edu/openbook.php?isbn=0309100399
- Envisioning a 21 st Century S&E Workforce: http://books.nap.edu/openbook.php?record_id=10647&page=13
US Department of Commerce – Bureau of Economic Analysis (BEA):
- Briefing on Measurement of Innovation and Intangibles:
http://www.bea.gov/scb/pdf/2009/01%20January/0109_innovation.pdf

Concept-in-Practice: KIZ World Definition #3: Knowledge Innovation Zone (KIZ) A geographic region, product/service/industry segment or community of practice in which knowledge flows from the point of origin to the point of need or opportunity. 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

Publication available upon request.

A Knowledge Innovation ® Zone (KIZ) A world-wide phenomenon
Physical Geography –Knowledge Park, Region, Corridor, Internet Village, Innovation Nation…
Industry Geography – Companies, Clusters, Collaboratories
Cyber Geography – Virtual Space
® Knowledge Innovation is a registered trademark of Entovation International Ltd

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

www.inthekzone.com

http://english.cas.cn/eng2003/page/KIP.asp Knowledge Innovation - A Chinese cornerstone…

Knowledge Innovation ® in the mainstream of India…
Indian IT-ITES industry has grown at a CAGR of over 28 per cent since FY 1999-2000; industry’s contribution to the national GDP has risen from 1.9 per cent in FY 1999-2000 to a projected 4.8 per cent in the current fiscal.
IT-ITES exports from India grew from USD 13.3 billion in FY 2003-04 to USD 18.2 billion in FY 2004-05 .
India’s stock of foreign exchange earnings risen from USD 5.8 billion in FY1990-91 to USD139 billion in January 2006 .
Americas and Europe remain the key markets, accounting for over 90 per cent of IT-ITES exports .
“ 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

“ Knowledge and Innovation have already become the major competitive advantages of many companies… Intellectual capital (IC) forms the basis for high quality products and services as well as for organizational innovations.”
Strengthen the competitiveness and innovation potential of European organizations by systematically activating their IC.
Establish IC Statement as an important and valuable management tool in a Knowledge-driven economy.
Integrate and consolidate individual national approaches on ICaS on a European Level.
“ Backbone of the European Economy”

Time to learn and prosper…together World Summit on Innovation and Entrepreneurship (WSIE)
80 speakers around the globe
58 countries
650 participants
6 themes
26 sponsors
no presentations
real-time voting
detailed aspirations
commitments to action
focus on impact
media highlights
published report
virtual dialogue

Lessons Learned
Most initiatives are R&D or Creativity-driven, NOT innovation!
Most books, reports and indices focus on one or 2 isolated facets (e.g., performance or policies), NOT the entire system.
All studies seem to focus on Benchmarking (past), NOT Bench-learning (future).
Most recommendations are made in isolation, with NO real program development or value-extension activities.
Attempts at international activity is based upon documentation – usually through 3 rd party sources (e.g., OECD, UN, WEF), and NOT direct interaction with global leadership.
The imperative remains one of (outdated) competitive positioning, rather than building Collaborative Advantage.
Other parts of the world (e.g., Europe. Middle East and Asia) have embraced mechanisms of IC (Intellectual Capital) or intangible wealth – far more than the US.
Worldwide people seem focused on cluster development. This it no longer provides an advantage. The new frontier is found in ‘zones of innovation”…for a company or a country.
Regions are bring the world to THEIR doorstep (e.g., Festival of Thinkers, WSIE).
America is losing ground in what was previously her strength – an innovation edge.

What should the US do?

A Knowledge Economy Call…
Call it the economic tsunami, the financial crisis of our lifetime, the global meltdown…it’s real.
We ARE suspended – between the old financial system that does not work and the new rules which have yet to be innovated.
We need to convert the current fiscal and political threats to opportunities.
Remember: The ‘transition zone’ is where REAL change, REAL growth occurs.
We have the answers to some of the questions (finally) being asked.
We need a Bretton Woods for the Knowledge Economy purposed to create a global innovation platform for peace and the ‘World Trade of Ideas’.
Photo by Morozova Tatiana Who, When and How?!

A U.S. Public Policy Framework
Congress
Think tanks/academia
New administration

THE KNOWLEDGE ARCHITECTURE

P 7 Blueprint for Effective KIZs 5. Policies 3. Innovation Process 6. Practices 2. Principles 7. Prosperity 1 . Purpose 4. Performance Design Phase Development Phase Deployment Phase

E100 Performance Experts

Future of Innovation: E100 Alert http://www.entovation.com/mailing/E100-Alert-2009-Kaleidoscope.htm

Future of Innovation: ISPIM Website http:// www.thefutureofinnovation.org /

Next Steps
Engage the (inter)national dialogue.
Name an independent bipartisan ‘Möbius Dialogue of Knowledge Innovation’ (MDKI) to review existing recommendations on innovation.
Launch a KIZ Prototyping Arena as a pilot
Perform an analysis of policy initiatives within the US and abroad.
Develop a draft policy by the end of this year to (re)positiion the US as leaders in collaborative advantage and establish roadmap to influence policy.

We had a Clinger-Cohen Act to advance the state of IT.
We had the Bayh-Dole Act to catapult Technology Transfer initiatives.
Do we now need a Knowledge Innovation Act – one which features knowledge, innovation and collaboration - to move our country forward?

Questions? Photos by Bevin Murphy & Carol Hayes

Knowledge, Innovation and Change Knowledge. Innovation and Change Knowledge Leadership and Change Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge. Innovation and Change: Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge, Innovation and Change Knowledge Innovation and Change Knowledge, Leadership and Change Toward a National Knowledge Innovation Policy Debra M. Amidon ENTOVATION International Ltd. [email_address] www.entovation.com www.inthekzone.com Dr. Ramon C. Barquin BARQUIN International Ltd. [email_address] www.barquin.com Join us...

Knowledge Innovation Policy (Federal KM - DC)

by Debra M. Amidon

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Knowledge Innovation Policy (Federal KM - DC) Presentation Transcript