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

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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%

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

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

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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.

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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

<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

intellectual capital

intellectual way

meeting local expertise

destination competitiveness

new economy

connected destination

new employment economy

unique value

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