1.The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighwayThe Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway: How to Manage, Measure and Profit from It Toronto, Ontario, Canada 1 May 2007 Debra M. Amidon Founder and Chief Strategist ENTOVATION International Ltd. Igor Zenin

2. Outline

A twenty year journey

Three interdependent lenses

Welcome to the KIZ World...

What if anything can be managed

How to create value

Where we are headed

Whats on YOUR mind?

breakthrough n . 1. The act, result, or place of breaking through against resistance, as in warfare;2. a strikingly important advance or discovery 3. 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, interactionand imagination resident in the minds, heartsand hands of people around the globe. I. A 20 Year Journey 4. 20 year journey AND celebration! Courtesy ofhttp://pdphoto.org/ 20th Year Celebration! 5. KnowledgeEconomy Roots Managing the Knowledge Assets into the 21 stCentury (USA) Knowledge for Development The World Bank (Washington, DC) Knowledge WaveInitiative (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 PartnershipI (Toronto, Canada) Global Knowledge Partnership II (Kuala Lumpur, Malaysia,) Knowledge Park The Worlds 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 onIC (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 IndexTM (UNOPS/ McMaster) E100: BuildingCollaborativeAdvantage(NY City, NY) PDVSA Conference (Caracas, Venezuela) 6. Definition #1

Knowledge-Based Economy:

A n economywhereorganizations and people innovate knowledge -- existing and new -- to enhance economic growth and collaborative advantage.

7. 1 st- We have successfully put the focus onKnowledge and IC and themeasurementthereof; 8. 2 nd- We have successfully put the focus onInnovation(redefined!) and themanagementthereof; and 9. 3 rd- We have successfully put the focus onCollaborative (NOT competitive) Advantage and thepotentialthereof.http://www.entovation.com/kleadmap/index.htm 10. The Knowledge Innovation ARCHITECTURE 11. We discovered.

There is a new discipline Knowledge Economics.

What wecount mattershidden intellectual wealth.

Knowledge Structures operate as holonomies nesting ofnetworks with local and global scope and spheres of influence.

Everyone is aKnowledge Worker and must be motivated to contribute with modes of interdependence.

AllKnowledge Processes fit under the rubric of innovation strategy and we need to make the practice explicit.

Knowledge Technology especially in its collaborative and multi-media forms - isnt an end, but an enabler.

12. 3 Laws ofKnowledge Dynamics

Knowledge in the form of Intellectual Capital (IC) - is a multiplier of economic wealth.

Innovation Valueis created when knowledge moves from origin to the point of highest needor opportunity.

Collaboration for mutual leverage provides best utilization of tangible and intangible resources.

Knowledge Economics: Principles, Policies and Practiceshttp://www.entovation.com/knowledge-economics.htm

1 2 3 31 authors from 17 countriespublished by Tartu University Press Knowledge Economics (Amidon, Formica andMercier-Laurent 2006) 13.

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

14. In the Mainstream 15. 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, themore it proliferatesinfinitely expansibleWhat 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 onFocus on Focus on Focus onFocus on Focus on Focus on Focus onFocus onFocus on Focus on Focus on Focus on Focus on Focus on 16. Article available upon request. 17. The Economic Experts

Karl Polyani:Markets are a meeting place for the purpose of barter or buying and sellingInstead 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 states2.0 1800-20000 when it was multinational corporations 3.0Since 2000 when its up to brilliant individuals-The World is Flat(2005)

18. 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. 19. 20. Triple Knowledge Lens PERFORMANCE INDICES 21. IC - INTANGIBLES FRAMEWORK 22. Capital Value Driversone example 23. 24. 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 onFocus on Focus on Focus onFocus on Focus on Focus on Focus onFocus onFocus on Focus on Focus on Focus on Focus on Focus on 25. Publication available upon request. 26. Drivers for Knowledge Strategy

Dispersion

Change / restructuring

Complexity / interdependencies

Improving business performance

Customer relationships

Need for innovation

Better enabling technology

Minimizing uncertainty and risk

Regulation

Case study material in the

Skyrme/Amidon Report (1997)

Networks

Change

The internet

Competition between business models

Free agent nation - War for talent

Virtualization of markets

Globalization

Open source movement

Value of intangibles

Industrial to digital economy

Visualization technologies

Emergence of Knowledge Zones

Davis/Amidon article

Knowledge Management (2004)

Article available upon request. 27. A Knowledge Innovation Zone (KIZ) A world-wide phenomenon

Physical GeographyKnowledge 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 28. Definition #2

Knowledge Innovation Zone (KIZ)

Ageographic 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.

29. And OCE is one, comprised of several and part of numerous others

Centre of Excellence for Communications and Information Technology

Centre of Excellence for Earth and Environmental Technologies

Centre of Excellence for Energy

Centre of Excellence for Materials and Manufacturing

Centre of Excellence for Photonics

Vision: The Ontario Centres of Excellence is thepre-eminent research-to-commercialization*vehicle in Ontariothats innovation! 30. 31. www.inthekzone.com 32. 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 33. 34. Formation ofKnowledge 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 35. Developing KIZs: Methods/Tools

Methodology/Software - KIS

Knowledge Cities Manifesto

Books: Individual and Collaborative

Training Courses - Gyroscope

Collaborative Technology - CoLayer

SNA Analysis and more 36. Feature:US SAN JOSEIS THE WORLDSMOST KNOWLEDGE COMPETITIVE ECONOMY World Knowledge Competitiveness Index (WKCI)- published by Robert Huggins Associates Research Technology Park Austin, TX 37. 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 38. Knowledge Corridor: Hartford/Springfield Silicon Valley Cultural Industries Silicon Alley New York's Digital Media Scene 39. Feature:Canada THECIS - InnovaWest Ontario Centres for Excellence Culuturescope:Canadas Cultural Observatory Niagara Region 40. Feature:EuropeBarcelona Activa Bilbao, Spain 41. Almere,The Netherlands The Baltics: Estonia,Latvia and Lithuania resund Region: Copenhagen, DK Malm, Sweden http://www.mva.org/composite-18.htm 42. 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 WyethIreland'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. 43. Feature:India The Commission will advise the Prime Minister on matters relating toinstitutions of knowledge production, knowledge use and knowledge dissemination.The mandate of the Commission is to sharpen India's knowledge edge. Tomorrows societies will be knowledge societies.Tomorrows markets will be knowledge markets.Tomorrows wars will be fought not by the conventional weapons. They will be fought in the knowledge markets with the new weaponscalled information and knowledge. - R. A. Mashelkar, Economics of Knowledge 44. 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 onnatural resources alone to be globally competitive.Rather, the knowledge and resourcefulnessof its people and its rate of innovationas a fundamental source of economic growthis what sets a country apart. Mauritius Scheduled to be the 1 stwireless country in the world. 45. Feature:AsiaIncheon, South Korea Virtual Models Island City Fukuowa, Asiaand the rest of the world Malaysia Innovation Corridor 46. 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 Artists Impression of Fusionopolisto be developed at One North, Singapore 47. Feature:Middle East Dubai Knowledge Village Knowledge Oasis Muscat (KOM) - Oman Abu Dhabi - CERT 48. Feature:Down Under Desert Knowledge Australia Building networks and partnerships across Australiato create and economic and socially sustainable future. A national research networklinking local and indigenousand local knowledgewith science and educationto improve desert livelihoods. New Zealand: Catching the Knowledge Wave 49. Feature:Latin America Panama City of Knowledge Monterrey, Mexico Brazil IDB 50. http://english.cas.cn/eng2003/page/KIP.asp Knowledge Innovation -A Chinese cornerstone 51. 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; andc)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/ 52. http://www.sciencebusiness.net Zone Thinking -Throughout the EU and abroad 53. Time to learn and prospertogether 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

54. IV. What to Manage Companies that know how to innovate dont necessarily throw money into R&D. Instead, they cultivate a new style of corporate behavior thats comfortable with new ideas, change, risk and even failure. Fortune(March 3, 1997) Focus on Focus on Focus on Focus on Focus on Focus onFocus on Focus on Focus onFocus on Focus on Focus on Focus onFocus onFocus on Focus on Focus on Focus on Focus on Focus on 55.

- 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. Its not a individual. Its individuals. Its multi-disciplinary. Its global. Its 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 56. Definition #3

Knowledge Innovation

The creation, evolution, exchange and application of new ideas into marketable goods and services for:

• • the success of anenterprise

• • the vitality of anation's economy

• • the advancement ofsociety

NOTE: There are IC Reports and indicators at all three economic levels micro-, meso- and macro-economic levels 57. Elevator Pitch

Just because you are creative, does not necessarily mean that you are innovative.

Because you are innovative does not necessarily mean that you have an innovation strategy to capitalize upon the Knowledge Economy.

When you view an enterprise, company, industry or nation as a zone of innovation, real wealth can be generated.

The strategy supported by values and vision must be comprehensive, cohesive and compelling for optimal value.

Igor Zenin 58. MigrationOpportunities

Facilitates the optimization of financial resources to maximize business goals; extrapolation of past performance, product/ marketing and benchmarking.

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.

Map Business Planning Innovation Strategy 59. MigrationOpportunities

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 financialprinciples; documents where you have been.

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.

Map Measure Business Planning Innovation Strategy 60. MigrationOpportunities

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 financialprinciples; 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 #2 61. Knowledge InnovationStrategy Computer/Communications Collaborative Dialogue Performance Measures Education/ Development Learning Network InnovationIntelligence Products/ Services StrategicAlliances Market Interaction Leadership/ Governance ENT08.26 Action details available upon request. 62. KIZProof of Concept- Egypt

• 120 high potentials in 8 cohorts generated:

• • 32 group Knowledge Innovation projects

• • 160 innovative and viable ideas

• • 320 small projects

• 15 Knowledge Innovation trained high potentials developed:

• • 5 viable Knowledge Innovation Strategy funding proposals

• • • and are moving them into incubation

http://www.mastering-echange.com/KEN-RITSEC/RITSEC-Masterfile-Web.htm

Sample Projects:

National Knowledge Innovation Network

Capital Markets Knowledge Diffusion

EGAS into the Knowledge Innovation Era

Investors Guide

NRC Commercialization

63. V. Creating Value withthe P 7Blueprint Focus on Focus on Focus on Focus on Focus on Focus onFocus on Focus on Focus onFocus on Focus on Focus on Focus onFocus onFocus on Focus on Focus on Focus on Focus on Focus on 64. Knowledge Innovation ZoneKIZP 7Blueprint 5. Policies 3. Innovation Process 6. Practices 2. Principles Knowledge Innovation is a registered trademark of ENTOVATION International Ltd. 7. Pathways forStakeholder Innovation 1 .Platform 4. Performance DesignPhase DevelopmentPhase DeploymentPhase Critical Slide #3 Key Slide #3 65. P 7KIZAssessment Blueprint

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.

66. Insightsabound www.inthekzone.com 67. Some KIZs are better than others www.inthekzone.com See Handout for specific examples 68. In short

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 69. VI. Where we are headed Phase II Prototyping Arena Focus on Focus on Focus on Focus on Focus on Focus onFocus on Focus on Focus onFocus on Focus on Focus on Focus onFocus onFocus on Focus on Focus on Focus on Focus on Focus on 70. Emerging Wave of6 thGeneration Technologyas the Asset Customeras the Asset Knowledgeas the Asset Projectas the Asset Enterpriseas the Asset Futureas the Asset VI Adapted from Charles Handys Sigmoid Curve with Leif Edvinsson A B Quality Re-engineering Innovation I II III IV V 71. Body of Knowledge forPhase II Bench-Learning

State-of-the-World Report of Phase I

KIZ Policy Innovation Assessment/Auditing Matrix

Intelligence scan covering KIZ specific emerging Trends

Unique KIZ Classification and Taxonomy schema

KIZ specific Expertise Directory

KIZ Resource directory and Index to KIZ projects world-wide

KIZ Innovations Knowledge Base and Catalogue

Intellectual Capital & Intangibles Assessment/Auditing Framework

KIZ - Leadership Roles - Mentoring Framework

KIZ advanced Leadership Development Educational Curriculum

Strategic Choice-board to help strategists to think about new KIZbusiness models and development patterns and options.

Set of KIZ specific Key Performance Indicators/Indices

And more

72. 73. Value of Prototyping

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).

74. 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

Risk-reducing collaboration

Novel business model innovation

Innovation culture with a new mindset

Systems of enterprise-wide innovation

Testing ground for blockbuster ideas and entrepreneurial growth

75. KIZ Phase III http://www.entovation.com/group-alliance/en2polis.htm 76.

We are creating anew 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).

Global Momentum of Knowledge Strategy1999

TheVision 77. KIZ Declaration

Preamble

We Believe

We Agree

We Resolve

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. 78. 3KEYSlides How toMeasure How toManage How toCreate Value Action details available upon request. 79. Whats on YOUR Mind? 80. The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighway IRI Enters The Innovation SuperHighway The Innovation SuperHighwayThe Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway The Innovation SuperHighway: How to Manage, Measure and Profit from It Toronto, Ontario, Canada 1 May 2007 Debra M. Amidon T: (+1) 978.988.7995 E-mail: [email_address] www.entovation.com www.inthekzone.com Thank YOU! Igor Zenin Igor Zenin