IC What IC What You See:You See:

Canada’sCanada’s

Intellectual Intellectual

CapitalCapital

RankingRanking

Dr. Nick Bontis

Associate Professor of Business Policy, McMaster U.Director, Institute for Intellectual Capital Research

Associate Editor, Journal of Intellectual CapitalChief Knowledge Officer, Knexa Solutions

www.Bontis.com nick@bontis.com

Background Background InformationInformation

Customer Capital

Organizational Capital

Innovation Capital

Process Capital

Structural Capital

Human Capital

Intellectual Capital

Financial Capital

Market Value

Conceptual Conceptual Model - FirmModel - Firm

Conceptual Conceptual Model - NationModel - Nation

Market Capital

Organizational Capital

Renewal Capital

Process Capital

Structural Capital

Human Capital

Intellectual Capital

Financial Wealth

National Wealth

House House MetaphorMetaphor

Financial Wealth

Human Capital

Marke

tC

apita

l

Renewal Capital

Pro

cess

Cap

ital

Past

Present

Future

Financial Wealth

Human Capital

Marke

tC

apita

l

Renewal Capital

Pro

cess

Cap

ital

Past

Present

Future

Developed Developed NationsNations

NorwayRussia

Singapore

ItalyJapan

New Zealand

SwedenUK

USA

AustraliaCanadaChina

FinlandFrance

Germany

Descriptive Descriptive Statistics (1 of Statistics (1 of

2)2)GDP/Cap PPP 2000 Pop 2015 Pop 2015 - 2000$ Millions Millions % Change

Australia 25,693 19 21.9 14%Canada 27,840 31 34.4 12%China 3,976 1,263 1410.2 12%Finland 24,996 5 5.2 0%France 24,223 59 61.9 5%Germany 25,103 82 80.7 -2%Italy 23,626 58 55.2 -4%Japan 26,755 127 127.5 0%New Zealand 20,070 4 4.1 7%Norway 29,918 4 4.7 5%Russia 8,377 146 133.3 -8%Singapore 23,356 4 4.8 19%Sweden 24,277 9 8.6 -3%United Kingdom 23,509 60 60.6 1%United States 34,142 282 321.2 14%

Descriptive Descriptive Statistics (2 of Statistics (2 of

2)2)Unemploy Youth Unemp Urban Pop Svc Empt Life ExpRate % Rate % % of total % of total Years

Australia 6.3 14 85 73.6 78.9Canada 6.8 14 77 74.1 78.9China 3.1 3 32 12.9 70.3Finland 9.8 22 67 66.0 77.5France 9.5 27 76 74.0 78.9Germany 7.5 8 88 62.6 77.4Italy 10.7 33 67 62.2 78.7Japan 4.7 9 79 63.1 80.7New Zealand 6.0 14 87 67.6 78.2Norway 3.4 10 76 73.8 78.6Russia 13.3 7 73 58.8 65.3Singapore 3.2 8 100 71.1 77.7Sweden 4.7 14 83 72.2 79.6United Kingdom 5.5 12 90 72.8 77.3United States 4.0 10 77 74.5 77.1

Prime Prime Minister’s Minister’s

ReportReport

Category Canada's Performance Top Performer

Economy Average U.S.

Labour markets Top U.S.

Innovation Poor Sweden

Environment Poor Sweden

Education Average U.S.

Health Average Japan

Financial Financial CapitalCapital

GDP/Cap PPP GDP, PPP Market Cap (listed)$ $ billions % of GDP

Australia 25,693 493 95.6Canada 27,840 856 122.3China 3,976 5,019 53.8Finland 24,996 129 241.7France 24,223 1,427 111.8Germany 25,103 2,062 67.8Italy 23,626 1,363 71.5Japan 26,755 3,394 65.2New Zealand 20,070 77 37.3Norway 29,918 134 40.2Russia 8,377 1,219 15.5Singapore 23,356 94 165.7Sweden 24,277 215 144.4United Kingdom 23,509 1,404 182.2United States 34,142 9,613 153.5

Human Human Capital Capital (1 of 2)(1 of 2)

Adult literacy Secondary Public $ on Educ. Pupil:Teacher% age > 15 enrolment % % of GDP Ratio

Australia 99.9 79 4.8 4.8Canada 99.9 94 5.6 5.6China 84.1 50 2.3 23.7Finland 99.9 95 7.1 17.8France 99.9 94 5.9 5.9Germany 99.9 88 4.6 4.6Italy 98.4 88 4.7 4.7Japan 99.9 97 3.5 3.5New Zealand 99.9 84 7.2 7.2Norway 99.9 96 7.7 7.7Russia 99.6 78Singapore 92.3 75 25.4Sweden 99.9 100 8.0 8.0United Kingdom 99.9 94 4.7 4.7United States 99.9 90 5.0 5.0

Human Human Capital Capital (2 of 2)(2 of 2)

Teachers' comp Educ exp Edu Exp% of Educ Exp as % of GNP as % of Gov Exp

Australia 5.5 13.5Canada 18.0 6.9 12.9China 21.5 2.3 12.2Finland 17.3 7.5 12.2France 18.9 6.0 10.9Germany 17.0 4.8 9.6Italy 11.3 4.9 9.1Japan 21.0 3.6 9.9New Zealand 7.3 17.1Norway 7.7 16.8Russia 17.6 3.5 9.6Singapore 25.3 3.0 23.3Sweden 12.3 8.3 12.2United Kingdom 19.1 5.3 11.6United States 15.4 5.4 14.4

Process Process Capital Capital (1 of 2)(1 of 2)

Telephones Moblies TV sets Cable TV PCs Radios Internet hosts per 1,000 per 1,000 per 1,000 per 1,000 per 1,000 per 1,000 per 1,000

Australia 525 447 738 68 465 1,376 85.7Canada 677 285 715 259 390 1,047 77.4China 112 66 293 61 16 339 0.1Finland 550 720 692 184 396 1,564 102.3France 579 493 628 45 304 950 19.1Germany 611 586 586 247 336 948 24.8Italy 474 737 494 1 180 878 17.8Japan 586 526 725 147 315 956 36.5New Zealand 500 563 522 4 360 997 90.6Norway 532 751 669 184 491 915 101.1Russian Federation 218 22 421 78 43 418 2.2Singapore 484 684 304 63 483 672 45.2Sweden 682 717 574 199 507 932 67.3United Kingdom 589 727 653 57 338 1,432 28.2United States 700 398 854 252 585 2,118 295.2

Process Process Capital Capital (2 of 2)(2 of 2)

Electricity consumption IT exp. IT Exp. / capita Internet users (active)kwh per capita % of GDP US$ % of population

Australia 8,884 9.7 1,922 34%Canada 15,260 8.4 1,911 41%China 758 5.4 46 2%Finland 14,366 7.8 1,835 37%France 6,392 8.7 1,916 14%Germany 5,690 7.9 1,798 29%Italy 4,535 5.7 1,068 23%Japan 7,443 8.3 3,118 37%New Zealand 8,426 13.6 1,771 22%Norway 24,248 6.9 2,445 49%Russian Federation 4,050 3.7 63 2%Singapore 6,641 9.7 2,104 30%Sweden 14,138 10.4 2,674 46%United Kingdom 5,384 9.1 2,187 30%United States 11,994 8.1 2,926 34%

Market Market Capital Capital (1 of 1)(1 of 1)

High-tech exports License fees receipts Outgoing Int. telecom Daily newspapers % of Mfg. exports US$ per person mins / subscriber per 1,000

Australia 15.22 17.9 136 293Canada 18.60 44.7 347 159China 18.58 0.1 11Finland 27.33 219.9 164 455France 24.26 39 129 201Germany 17.71 34.4 184 305Italy 9.19 9.8 101 104Japan 28.35 80.5 35 578New Zealand 10.16 12.9 340 207Norway 17.13 29.3 234 581Russia 13.53 0.6 29 105Singapore 63.00 538 298Sweden 22.00 144.2 209 432United Kingdom 32.00 123.9 227 329United States 34.00 134.3 153 213

Renewal Renewal Capital Capital (1 of 2)(1 of 2)

R&D Exp. R&D Scientists Science students% of GDP per million % of tertiary

Australia 1.7 3,320 24.2Canada 1.7 3,009 15.7China 0.1 459 53.0Finland 2,668 36.6France 2.2 2,686 48.0Germany 2.3 2,873 39.2Italy 1.0 1,322 30.8Japan 2.8 4,960 26.7New Zealand 1.2 2,197 19.9Norway 1.7 4,095 26.1Russia 1.1 3,397 48.0Singapore 1.1 2,182 18.5Sweden 3.8 4,507 37.6United Kingdom 1.8 2,678 29.0United States 2.5 4,103 36.5

Renewal Renewal Capital Capital (2 of 2)(2 of 2)

License fees paymt. Trademarks filed Patents grantedUS$ per person per million per million

Australia 52 3,065 75Canada 106 1,313 31China 1 131 1Finland 106 1,828 187France 35 1,708 205Germany 66 1,044 235Italy 21 778 13Japan 87 961 994New Zealand 80 4,327 103Norway 87 3,026 103Russia 0 199 131Singapore 0 3,921 8Sweden 101 1,755 271United Kingdom 103 1,186 82United States 57 926 289

Development Development of the Nof the NFFCICI

GDP/Cap PPP GDP, PPP Market Cap (listed) NFCI$ $ billions % of GDP

United States 34,142 9,613 153.5 3.64Finland 24,996 129 241.7 3.02United Kingdom 23,509 1,404 182.2 1.64Singapore 23,356 94 165.7 1.16Canada 27,840 856 122.3 1.11Sweden 24,277 215 144.4 .89France 24,223 1,427 111.8 .32Australia 25,693 493 95.6 .15Japan 26,755 3,394 65.2 -.03Norway 29,918 134 40.2 -.29Germany 25,103 2,062 67.8 -.38Italy 23,626 1,363 71.5 -.63New Zealand 20,070 77 37.3 -2.07China 3,976 5,019 53.8 -4.09Russia 8,377 1,219 15.5 -4.45

Development Development of the Nof the NHHCICI

H1 H2 H3 H4 H5 H6 H7 NHCISweden 99.9 100 8.0 8.0 12.3 8.3 12.2 1.27Norway 99.9 96 7.7 7.7 7.7 16.8 .71Canada 99.9 94 5.6 5.6 18.0 6.9 12.9 .49Finland 99.9 95 7.1 17.8 17.3 7.5 12.2 .46Italy 98.4 88 4.7 4.7 11.3 4.9 9.1 .44France 99.9 94 5.9 5.9 18.9 6 10.9 .40New Zealand 99.9 84 7.2 7.2 7.3 17.1 .40United States 99.9 90 5.0 5.0 15.4 5.4 14.4 .31United Kingdom 99.9 94 4.7 4.7 19.1 5.3 11.6 .20Germany 99.9 88 4.6 4.6 17.0 4.8 9.6 .19Australia 99.9 79 4.8 4.8 5.5 13.5 -.01Japan 99.9 97 3.5 3.5 21.0 3.6 9.9 -.10Russia 99.6 78 17.6 3.5 9.6 -.22Singapore 92.3 75 25.4 25.3 3 23.3 -1.86China 84.1 50 2.3 23.7 21.5 2.3 12.2 -2.69

Development Development of the Nof the NPPCICI

PC1 PC2 PC3 PC4 PC5 PC6 PC7 PC8 PC9 PC10 PC11 NPCIUnited States 700 398 854 252 585 2,118 295.2 11,994 8.1 2,926 34% 1.53Norway 532 751 669 184 491 915 101.1 24,248 6.9 2,445 49% .88Sweden 682 717 574 199 507 932 67.3 14,138 10.4 2,674 46% .85Finland 550 720 692 184 396 1,564 102.3 14,366 7.8 1,835 37% .64Canada 677 285 715 259 390 1,047 77.4 15,260 8.4 1,911 41% .58Australia 525 447 738 68 465 1,376 85.7 8,884 9.7 1,922 34% .36Japan 586 526 725 147 315 956 36.5 7,443 8.3 3,118 37% .34United Kingdom 589 727 653 57 338 1,432 28.2 5,384 9.1 2,187 30% .18Germany 611 586 586 247 336 948 24.8 5,690 7.9 1,798 29% .05New Zealand 500 563 522 4 360 997 90.6 8,426 13.6 1,771 22% -.05Singapore 484 684 304 63 483 672 45.2 6,641 9.7 2,104 30% -.20France 579 493 628 45 304 950 19.1 6,392 8.7 1,916 14% -.30Italy 474 737 494 1 180 878 17.8 4,535 5.7 1,068 23% -.76Russia 218 22 421 78 43 418 2.2 4,050 3.7 63 2% -1.92China 112 66 293 61 16 339 0.1 758 5.4 46 2% -2.17

Development Development of the Nof the NRRCICI

RC1 RC2 RC3 RC4 RC5 RC6 NRCIJapan 2.8 4,960 26.7 87 961 994 1.97449Sweden 3.8 4,507 37.6 101 1,755 271 1.45856United States 2.5 4,103 36.5 57 926 289 .59575Norway 1.7 4,095 26.1 87 3,026 103 .47169Canada 1.7 3,009 15.7 106 1,313 31 .28614Finland 2,668 36.6 106 1,828 187 .18849Germany 2.3 2,873 39.2 66 1,044 235 .17207United Kingdom 1.8 2,678 29.0 103 1,186 82 .12403Australia 1.7 3,320 24.2 52 3,065 75 .02155New Zealand 1.2 2,197 19.9 80 4,327 103 -.16539France 2.2 2,686 48.0 35 1,708 205 -.22504Russia 1.1 3,397 48.0 0 199 131 -.77830Singapore 1.1 2,182 18.5 0 3,921 8 -.83511Italy 1.0 1,322 30.8 21 778 13 -1.17329China 0.1 459 53.0 1 131 1 -2.11564

Development Development of the Nof the NMMCICI

MC1 MC2 MC3 MC4 NMCISingapore 63.00 538 298 2.11881Finland 27.33 219.9 164 455 1.30552United Kingdom 32.00 123.9 227 329 .78730Sweden 22.00 144.2 209 432 .72343United States 34.00 134.3 153 213 .53448Japan 28.35 80.5 35 578 .43603Norway 17.13 29.3 234 581 .19953Canada 18.60 44.7 347 159 -.19449Germany 17.71 34.4 184 305 -.38188France 24.26 39 129 201 -.45042New Zealand 10.16 12.9 340 207 -.60013Australia 15.22 17.9 136 293 -.69522China 18.58 0.1 11 -.95016Italy 9.19 9.8 101 104 -1.38288Russia 13.53 0.6 29 105 -1.44992

Countries Countries Ranked by Ranked by

NICINICI

Is the NICI a good predictor of a nation’s wealth?

NHCI NPCI NRCI NMCI NICI NFCISweden 1.27062 .84501 1.45856 .72343 1.07440 .89213United States .30747 1.53446 .59575 .53448 .74304 3.63611Japan -.10460 .33760 1.97449 .43603 .66088 -.02992Finland .46333 .63571 .18849 1.30552 .64827 3.02013Norway .71069 .88401 .47169 .19953 .56648 -.28583United Kingdom.20407 .18041 .12403 .78730 .32395 1.64398Canada .49292 .58380 .28614 -.19449 .29209 1.11303Germany .18696 .04741 .17207 -.38188 .00614 -.38255Australia -.01249 .36316 .02155 -.69522 -.08075 .15366New Zealand .40285 -.04699 -.16539 -.60013 -.10241 -2.06696France .40326 -.30324 -.22504 -.45042 -.14386 .31559Singapore -1.85927 -.20475 -.83511 2.11881 -.19508 1.15927Italy .44235 -.76415 -1.17329 -1.38288 -.71949 -.62521Russia -.22235 -1.92334 -.77830 -1.44992 -1.09348 -4.45314China -2.68582 -2.16912 -2.11564 -.95016 -1.98019 -4.09029

Structural Structural Model of NICIModel of NICI

Path H1 H2 H3 H4 H5 H6 Arab Region coefficient 0.450 0.106 0.775 0.279 0.273 0.277

National Human Capital

National Process Capital

National Market Capital

National Renewal Capital

National Financial Capital

H3

H1

H4

H2

H5

H6

R2 = 20.9%

G8 + coefficient 0.742 0.868 0.771 0.645 -0.418 -0.670

National Human Capital

National Process Capital

National Market Capital

National Renewal Capital

National Financial Capital

H3

H1

H4

H2

H5

H6

R2 = 20.9%

0.9130.2080.454-0.544-0.578-0.4180.6450.7710.8680.742 coefficientG8 +

-0.670-0.4180.6450.7710.8680.742 coefficientG8 +

0.2770.2730.2790.7750.1060.450 coefficientArab Region

H10H9H8H7H6H5H4H3H2H1Path

0.9130.2080.454-0.544-0.578-0.4180.6450.7710.8680.742 coefficientG8 +

-0.670-0.4180.6450.7710.8680.742 coefficientG8 +

0.2770.2730.2790.7750.1060.450 coefficientArab Region

H10H9H8H7H6H5H4H3H2H1Path

Modified Modified NICI ?NICI ?

0.993-0.6700.2080.454-0.544-0.4180.6450.7710.8680.742 coefficientG8 +

-0.670-0.4180.6450.7710.8680.742 coefficientG8 +

0.2770.2730.2790.7750.1060.450 coefficientArab Region

H10H9H8H7H6H5H4H3H2H1Path

0.993-0.6700.2080.454-0.544-0.4180.6450.7710.8680.742 coefficientG8 +

-0.670-0.4180.6450.7710.8680.742 coefficientG8 +

0.2770.2730.2790.7750.1060.450 coefficientArab Region

H10H9H8H7H6H5H4H3H2H1Path

Poverty

GenderEmpowerment

Health

H7

H8

H9

H10

R2 = 83.3%

0.913-0.6700.578

PovertyPovertyUN Human Poverty Probability not People lacking Population below Poverty

Index @ surviving to 60 functional skills poverty lineUnited States 15.8 12.8 20.7 16.9 1.61749Russian Federation 30.1 20.1 1.25961United Kingdom 15.1 9.9 21.8 13.4 1.23980Australia 12.9 9.1 17.0 14.3 .56012Canada 12.3 9.5 16.6 12.8 .32925Italy 12.2 9.1 14.2 .28208New Zealand 10.7 18.4 .26560China .00000Singapore .00000Japan 11.2 8.2 11.8 -.08392France 11.1 11.4 8.0 -.31247Germany 10.5 10.6 14.4 7.5 -.51778Finland 8.8 11.3 10.4 5.1 -1.28109Norway 7.5 9.1 8.5 6.9 -1.55023Sweden 6.7 8.0 7.5 6.6 -1.80848

HealthHealthLife Expectancy Baby measles Physicians Health Exp. Health

Years % immunized per 100,000 per Capita PPPItaly 78.7 90 554 1,676 2.18991Germany 77.4 95 350 2,697 1.33894Norway 78.6 93 413 3,182 .93127United States 77.1 92 279 4,271 .71905France 78.9 84 303 2,288 .57583Sweden 79.6 96 311 2,145 -.02859Australia 78.9 89 240 1,714 -.18666New Zealand 78.2 83 218 1,163 -.22436Japan 80.7 94 193 2,243 -.35919Finland 77.5 96 299 1,704 -.37005Russia 65.3 97 421 -.42537Canada 78.9 96 229 1,939 -.51542United Kingdom 77.3 91 164 1,675 -.73388Singapore 77.7 93 163 678 -1.21061China 70.3 90 162 40 -1.70086

Gender Gender EmpowermenEmpowermen

ttUN GEM % Seats in Female pros Income Gender EmpowerValue parliament % of total ratio

Finland 0.803 36.5 27 0.70 1.51276Sweden 0.824 42.7 49 0.68 1.40361Norway 0.837 36.4 49 0.64 1.08853New Zealand 0.765 30.8 54 0.67 .70486Australia 0.759 26.5 48 0.69 .70061Canada 0.777 23.6 53 0.62 .33363Germany 0.765 31.0 50 0.50 .13904China 21.8 -.00311United States 0.757 13.8 54 0.62 -.07301United Kingdom 0.684 17.1 45 0.61 -.11351France 10.9 -.36633Singapore 0.592 11.8 42 0.50 -.95806Russia 0.450 6.4 64 0.64 -1.39917Italy 0.539 9.1 44 0.44 -1.47306Japan 0.527 10.0 45 0.44 -1.49677

Clustering Clustering by by NICINICI and GDP and GDP

RelativeGDP / capita

NICI

1.0

0.5

0.00.0 0.5 1.0

Sudan

Kuwait

JordanTunisia

Egypt

Morocco

Yemen

Algeria

Oman

S. Arabia ?

G8 G8 ++ by NICIby NICI and NCFIand NCFI

RelativeNFCI

Relative NICI

4.0

0.0

-4.0-2.0 -1.0 0.0 1.0 2.0

United States

CanadaSweden

Russia

Japan

Finland

Norway

United Kingdom

Germany

Australia

New Zealand

FranceSingapore

Italy

China

Dr. Nick Bontis Ph.D.

DeGroote Business SchoolMcMaster UniversityTel: (905) 525-9140 x23918Fax: (905) 521-8995Director, Institute for Intellectual Capital ResearchChief Knowledge Officer (CKO), Knexa SolutionsAssociate Editor, Journal of Intellectual Capital nick@bontis.com www.Bontis.com

Thank Thank you ! you !

www.Bontis.com/research.htm

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