Knowledge Cities - profiling cities and desitnations as intellctual capitals

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Session code:
53rd ICCA Congress
Intellectual Capital: Theory and Practice, and
its impact on destination competitiveness
###
Günter Koch, Prof. DI
President of the Humboldt Cosmos Multiversity, Tenerife, Spain,
and Co-Founder of the New Club of Paris
www.execupery.com

2#ICCAWorld | iccaworld.com
IT’s time for upgrading in the knowledge society

Why Intellectual Capital
became so important:
- Number of problems („Grand
Challenges“) is growing
- Problems are „bigger“ than
in former times (e.g. finances)
- Complexity is increasing
without that we have
methods /tools to master it
- Underlying paradigms are
changing fast
Relevance of IC in radical change agendas

One big challenge:
the inversion of the age pyramid

Radical Change in Employment

Exasperating me in a 1st instance:
Elling Hamso’s reaction on my draft presentation
“…I think of destinations having something more to offer to congresses than
just tourist attractions and nice venues. The recent 'Germany Expertise' report
from GCB is an example of this. It works both ways, congress delegates may
gain from meeting local expertise, see facilities, learn how they have become
successful, etc. and the local expertise is enhanced by meeting delegate
experts in the field…”
Experience with Tallinn, some years ago: “…I suggested they branded
themselves as 'The Connected Destination' instead and target the IT sector,
but my idea fell on stony ground…”

The people of Tallinn must have kept this advice in mind

Ideas seem to coincide: Austria’s Ex Vice-Chancellor
asks for more sex appeal in Intellectual Capital projects
Elling Hamso interviewing Martin Sirk
on the session on “The sex-appeal of the
brain”: how ICCA sees the shift in how
destinations change their marketing
towards a more intellectual way. Paving
the way for meeting architectures?
“…Martin Sirk has an excellent metaphor
called 'empty box marketing' and the
intellectual capital of destinations is used
to fill the box with unique value for the
customer…”
Erhard Busek (left), former Vice Chancellor of Austria,
at an Intellectual Capital Event in Salzburg requires
that we need „dancing stars“ in Intellectual Capital

Outline of a “traditional” destination guide

Smart Cities as Destinations ?

A show case for IC of a destination: Shenzhen

Intellectual Capital is taking over
Anteil immaterieller Vermögenswerte am Marktwert S&P 500
20%32%68%83%
80%68%17% 32%
0%
25%
50%
75%
100%
1975 1985 1995 2005
Intangible Assets
Tangible Assets
Quelle: Ocean Torno
Share of immaterial value of the market value of S&P 500 enterprises

The new employment economy

Plead for replacing GDP based econometrics

A new economy expressed in old terminology?

Knowledge as a subject of investment
On July 31, 2013 the U.S. Bureau of
Economic Analysis rewrites history on a
grand scale by restating the size and
composition of the gross domestic
product (GDP), all the way back to the
first year it was recorded, 1929. The
biggest change will be the reclassification
… of research and development. R&D
will no longer be treated as a mere
expense, like the electricity bill or food
for the company cafeteria. It will be
categorized on the government’s books
as an investment…

Dimensions of Intellectual Capital

A light definition of Intellectul Capital

Intangible Asset Components
Intellectual Capital Assets
Monetary Physical Relational Structural / Organ’l Human
 Cash
 Investments
 Receivables/Debtors
 Payables/Creditors
 Credit Rating/s
 Undrawn Facilities
 Borrowing Capacity
(relative to like
companies – based on
character)‫‏‬
 Borrowing Covenant
Slack
 Receivables and
Accruals Certainty
 Quality of Earnings
 Balance Sheet Strength
 Property
 Plant
 Equipment
 Inventory -
 Finished Goods
 WIP
 Parts/Raw Materials
 Plant Flexibility
 Plant Modernity
 Infrastructure
Surrounding Plant/s
 Stranded Assets?
 Tradability” of
Facilities?
 Access Rights
 Plant Regard (“Can
Do”; “Will Do”)‫‏‬
 Inventory
Good, Obsolete,
Redundant)‫‏‬
 Customer Contracts
 Formal Alliances
(JVs, Supply
Agreements)‫‏‬
 Customer Loyalty
 Behavioral
 Attitudinal
 Quality of Supply
Contracts
 Right to Tender”; Right to
Compete”; “Right to
Design”
 Strength of Stakeholder
Support (including
Opinion Leaders)‫‏‬
 Networks
 Regulatory Imposts
 Systems
 Formalized
Processes
 Codified
Knowledge
 Patents
 Brands
 Impressi Structural
Appropriateness
 Informal Processes
 Organizational
Reputation
 Brand Meaning
(Strength; Stature)‫‏‬
 Productivity of R&D
Process
 Quality of Corporate
Governance
 Know How”
 Tacit Knowledge
 Acknowledged Skill
Sets
 Experience
 Employee Loyalty
 Top Management Quality
 Top Management
Experience
 Ability to Execute on
Strategy
 Capabilities
 Problem Solving Ability
 Employee Loyalty -
 Behavioral
 Attitudinal
 Personnel Reputation
TangibleAssetsIntangibleAssets
Traditional Accounting Assets

The case triggering my engagement in IC / KM
Mission: Turning around
a large R&D organisation

The reference model for IC analysis

Intellectual Capital ?
… in this start-up company ?

E.g. structural capital

What is IC analysis / reporting good for?
Result from an IC analysis:
The IC Report -> Strategic KM Plan
The very first IC report of
a university in 2002, serving
as the model case

University as a knowledge institution

Shift in values needs shift in (company) modelling

Expanding IC Reporting to nations and regions

Hot Spots in the Knowledge Economy

Most Admired Knowledge Cities AWARD (MAKCi)
The evaluation model applied
to knowledge city candidates
© World Capital Institute, Monterrey, Mexico

Knowledge Cities Candidates for the MAKCi Award

Destinations in emerging counntries (PwC study)

Criteria for “measuring” intangibles of locations

Tentative Ranking after the different criteria dimensions

Military Intelligence
University & Education
Art & Culture
Telecom
& IT
Tourism & Leisure
Administration &
Government
Cities as
symbols:
Moroccan Towns
of Knowledge

IC / Knowledge Reports for Nations / Regions

Amongst those having created key œvres in Vienna
Coffee Houses, some even changing the world, were
(also doubtful ) persons such as
• Theodor Herzl
• Leo Trotzki
• Wladimir Iljitsch Lenin
•Josif Stalin & Adolf Hitler
• Franz Kafka
• Robert Musil …
The Vienna Coffee House
is a true stem cell for creating
new ideas, concepts, poems, literature, political
declarations, etc …
It is an incubator within an ethnic and cultural melting pot.
Hot spots: Coffee Houses as intellectual incubators

Coffee Houses are incubators - everywhere
Britain’s first coffee shop opened in Oxford in
1650. Two years later Pasqua Rosee brought
the new drink to London. In 1688, Edward
Lloyd’s coffee house on Tower Street earned a
reputation as the place to go for marine
insurance. In 1698, the owner of Jonathan’s
coffee house in Exchange Alley began to issue
a list of stock and commodity prices called
“The Course of the Exchange and other things”:
so starting of the London Stock Exchange.

References : „Aalto University‘s
Campus for societal Innovation“
(ACSI) or
the Tenerife based
Humboldt Cosmos Multiversity
The university of the future

Micro-Universities everywhere

Knowledge Regions / Places

A Think Tank devoted to knowledge economy

The New Club of Paris

The Club’ core team in 2011

Publications series of members of The New Club of Paris

One key service of the NCP: Setting the
agenda for the knowledge society
• Round Table = an „Advisory Product“ of The New Club of Paris
• was established in 2006 in Helsinki for Finland under the auspices and
participation of Finland‘s Prime Minister Matti Vanhanen, the Finish
Parliament & designed by NCP‘s Finnish Board Member Pirjo Stahle.
• Concept: Combine the self view of a nation with an external view
in order to identify the potential for becoming a „knowledge nation“
• The Austrian Round Table session deliberately took place in the
Austrian Parliament under the auspices of its President
→ Birthday event for „Knowledge Politics“ in Austria
• Has been followed by a public conference „Agenda Knowledge“, declared
to be the 1st Conference on Knowledge Politics ever

Aspects of the Knowledge Universe

Pioneering „Knowledge Politics“ for Austria: a long way…

Some countries follow NCP’s approach
 Austria
 Finland
 Malaysia
 Morocco
 (Serbia)
 (Romania)

Romania: a double tiers approach -
universities & regions
<published>
<To be published in 2015>
+

Current project: profiling the Kosice-region in Slovakia
…

What I learned by Eling Hamso’s intervention:
Question is on new meeting & convention architectures

The end – let’s keep in touch !

Knowledge Cities - profiling cities and desitnations as intellctual capitals

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