Knowledge - based development II : knowledge cities 9781845441852, 9781845440213

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Volume 8 Number 5 2004

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Knowledge Management Knowledge-based development II: knowledge cities Guest Editor: Francisco Javier Carrillo

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Table of contents Knowledge-based development II: Knowledge cities Guest Editor: Francisco Javier Carrillo Volume 8 Number 5 2004

Access this journal online

2

Editorial

3

Francisco Javier Carrillo

Articles Towards knowledge cities: conceptual analysis and success stories

5

Kostas Ergazakis, Kostas Metaxiotis and John Psarras

Innovation engines for knowledge cities: an innovation ecology perspective

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Ron Dvir and Edna Pasher

Capital cities: a taxonomy of capital accounts for knowledge cities

28

Francisco J. Carrillo

Developing futures: a knowledge-based capital for Manchester

47

Blanca C. Garcia

Greater Phoenix as a knowledge capital

61

Jay Chatzkel

Creating a knowledge-based city: the example of Hsinchu Science Park 73 Stephen Chen and Chong Ju Choi

Ba for knowledge cities: a futuristic technology model

83

Muhammad Naveed Baqir and Yunus Kathawala

Knowledge repositories in knowledge cities: institutions, conventions and knowledge subnetworks

96

Philip Cheng, Chong Ju Choi, Stephen Chen, Tarek Ibrahim Eldomiaty and Carla C.J.M. Millar

A compilation of resources on knowledge cities and knowledge-based development 107 Marı´a del Rosario Gonza´lez Ovalle, Jose´ Antonio Alvarado Ma´rquez and Samuel David Martı´nez Salomo´n

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Editorial Knowledge-based development of cities nowledge management as a discipline has evolved simultaneously in several planes: it has grown in depth, impact and reach. In terms of depth, it is coming to terms with its philosophical and scientific foundations. In terms of impact, it is consolidating as an approach to the strategic development of knowledge-based organizations. In terms of reach, it has grown from its origins as a business movement to its presence in all forms of human organizations.

K

The first JKM special issue on knowledge-based development (KBD) aimed at bridging KM and economic growth theory (Vol. 6, No. 4, 2002). Thereat, it became evident that the convergence of both disciplines was a fertile ground for a new approach to social development founded on knowledge-based value systems. Within the last two years the field of KBD has proven to be a productive one and seems to be gathering momentum. One particular subject within KBD has gained considerable attention – knowledge cities (KCs). The contribution to this issue by Gonza´lez et al. gives testimony to the enormous amount of interest that has been generated recently under the umbrella concept of KCs. KCs constitute a subset in the KBD domain. Hence, most of the general concepts and frameworks of KBD apply to KCs. Yet, there are also issues, concepts and frameworks specific to KCs. In particular, the well-established fields of urban studies and planning (USP) need to be fully recognized and brought into consideration when looking at the phenomenon of KCs. Substantial contributions to KBD and KCs have already been produced within the field of USP (cf. the special editions and bibliography sections in Gonza´lez et al., op. cit.). At the same time, the distinctive perspective of knowledge-based value systems needs to be fully recognized in order to achieve a wider understanding and fuller development of KCs. The bridging of UPS and KM may also provide the grounds to capitalize on recent developments in other disciplines, which may contribute to drastically reformulate our views on human societies and our ways to manage them. Recent contributions from anthropology, history, sociology, psychology, economics and complexity studies are indispensable to tackle the full developmental potential of KCs. This special issue covers a wide range of KC issues from a variety of perspectives. Some 20 authors from nine countries have collaborated in producing the nine articles that comprise it. These articles can be organized in three blocks. The first block of contributions consists of articles that examine general theoretical and methodological issues related to KCs. The paper by Kostas Ergazakis, Kostas Metaxiotis and John Psarras provides an overview of the new field of KCs from a KM perspective, identifying some success factors and analyzing selected cases, both real and virtual. Their preliminary review leads them to conclude that so far there has been neither a coherent framework nor a unified methodology for the design and implementation of KCs. Ron Dvir and Edna Pasher look at KCs from the perspective of innovation ecology – a set of conditions that have been shown to enable knowledge development and innovation in individual businesses and productivity networks alike. They suggest weaving the business and urban dimensions through the development of ‘‘urban innovation engines’’: a number of traditional and new urban constructs that have evolved into building blocks of the KC. The paper by Francisco Carrillo outlines a theoretical and methodological framework for understanding, designing, assessing and benchmarking KCs. The core of this framework is a taxonomy of knowledge capital accounts, on the basis of which a number of discontinuities in the evolution of urban centers as human value systems are explored. The author concludes that planning and policy-making based on

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the cities’ capital systems may be a requirement for urban regions to evolve into the next-level of communitarian value systems. The second block of contributions consists of actual cases of KCs, analyzed from a diversity of theoretical and methodological standpoints. Blanca Garcia takes us on a virtual tour of Greater Manchester – formerly a paradigm of the industrial city – in an exercise of identification and valuation of the city’s knowledge capitals. Based on actor-network principles as well as on the concept of knowledge-based value systems, the author assesses the results of regeneration efforts in inner Manchester and pinpoints the major knowledge repositories and agents that may sustain the evolution towards a deliberate and full KC. Next, Jay Chatzkel looks at the development of Phoenix as a knowledge capital. In doing so, the author provides a strategic perspective of the major elements of a knowledge capital and then integrates a series of conversational interviews with regional leaders of different backgrounds from the Greater Phoenix region. The paper finds that an apparent split between those interested in developing and implementing a strategy for knowledge capitals and those concerned with transforming existing organizations into knowledge-based enterprises needs to be overcome to build a true knowledge capital. In their paper, Stephen Chen and Chong Ju Choi focus on the role of tacit knowledge to suggest that successful KCs depend on three interrelated processes of tacit knowledge creation and transfer: local knowledge creation, transfer of knowledge from external sources and the transfer of that knowledge into productive activities. They also suggest that the concepts of creative capital and tacit knowledge link three streams of literature related to KBD: international management, economic geography and urban planning. On these grounds, they look at the case of Hsinchu Science Park in Taiwan to exemplify the successful creation of a system for converting tacit knowledge into productive processes. The third and last block of contributions looks at more specific issues related to KBD and KCs, also from a variety of conceptual and methodological approaches. Muhammad Naveed Baqir and Yunus Kathawala explore the application of a concept not unfamiliar to KM practitioners – the concept of Ba – as a framework for designing knowledge homes that enable knowledge creation, sharing and management. In this context, they propose a knowledge city model based on the integration of five critical ITCs: intelligent agents, semantic web, Web services, ontology and ontology-based systems and the global computational grid. Next, Philip Cheng and colleagues, adopting a multi-disciplinary approach, look at the role of institutions, conventions and knowledge ‘‘sub-networks’’ as fundamental elements of KCs. They suggest that knowledge can be stored and transmitted via institutions and also that knowledge ‘‘subnetworks’’ or smaller groupings within larger networks can become key repositories of knowledge. Finally, to round-up this special issue, Rocı´o Gonza´lez, Antonio Alvarado and Samuel Martı´nez provide a compilation of resources on KCs and KBD, organized under eight categories: a glossary of KC-related terms, a list of KBD initiatives, a list of associations and organizations related to the topic, a list of urban KBD-related value dimensions and their indicators, a list of international rankings, a list of special editions on KCs, a bibliography, and a directory of related sites on the Internet. This compilation constitutes probably the widest, most updated integration of public domain information relevant to KCs available anywhere. When all the articles are taken together, a state-of-the art and diverse perspective of the emerging field of KCs unfolds. The papers also generates resonance amongst themselves, giving rise to new ideas and possible lines of research. They provide a variety of entry points to the complex phenomenon of KC and, by raising as many new questions as they address, they contribute to establishing KC as a field of study in its own right and consolidate the role that KM and KBD will continue to play in the evolution of urban centers. I would like to take the opportunity to thank Rory Chase, the General Editor of the JKM, for his continued support in the edition of this special issue. Without his wise council this initiative would not have been possible. Francisco Javier Carrillo Guest Editor

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Towards knowledge cities: conceptual analysis and success stories Kostas Ergazakis, Kostas Metaxiotis and John Psarras

Kostas Ergazakis is a PhD Student, at the School of Electrical and Computer Engineering, National Technical University of Athens, Greece ([email protected]). Kostas Metaxiotis is a Senior Researcher at the School of Electrical and Computer Engineering, National Technical University of Athens, Greece ([email protected]). John Psarras is an Associate Professor at the School of Electrical and Computer Engineering, National Technical University of Athens, Greece ([email protected]).

Abstract Over the past several years, there have been intensive discussions about the importance of knowledge management (KM) in our society. Nowadays, it is commonly accepted that many KM disciplines and practices are relevant to the social-level knowledgebased development. In this context, the new theme of ‘‘knowledge cities’’ came to the front. This paper attempts on the one hand to define the concept in a coherent way – presenting also its main implications and benefits – and on the other hand, to examine – on a worldwide scale – the different models of knowledge cities as well as modes of practice. The authors were based on a broad range of published works, including papers, books, reports and Web sites. The main approach was to briefly present the existing views of the concept, accompanied by some criteria determining a knowledge city. The authors also tried to provide a meaningful and concise review of existing cases, avoiding to get into many confusing details. This review provided valuable input for the definition of the key success factors and main benefits related to knowledge cities. This new concept is currently a main topic of interest for the research community and practitioners. It becomes clear that it has important benefits and in this way, focused research is needed towards many directions, in order for it to become a part of our life in near future. This integrated review is a very useful source of information for academics and practitioners who want to be acquainted with the knowledge cities concept. Keywords Development, Knowledge management

1. Introduction In the business world, knowledge management (KM) is considered as the process of creating value from the intangible assets of an enterprise. It deals with how best to leverage knowledge internally in the enterprise and externally to the customers and stakeholders. Knowledge is considered as a valuable asset of an enterprise, which has to be managed. The essence of KM is to provide strategies to get the right knowledge to the right people at the right time and in the right format (Nonaka, 1991; Wiig, 1993, 1997; Wilkins et al., 1997; Milton et al., 1999; Ergazakis et al., 2004). The need of inventing and implementing efficient and effective approaches so as to manage knowledge became apparent primarily in the world of enterprises and business in general. However, over the last few years KM evolved into a strategic management approach, finding application not only in business but also in other human organizations and areas such as education, government, and international organizations etc. The fact that major international organizations – such as the European Commission (2000), the World Bank (1998), the United

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Nations Organization (2001) and the OCDE (2001) – have adopted KM frameworks in their strategic directions regarding global development clearly indicates that a new link was created between KM and knowledge-based development (Carrillo, 2002; Komninos, 2002; Metaxiotis et al., 2004a,b). In our attempt to provide a brief explanation of this phenomenon we should consider the basic goal of KM, described as follows: ‘‘Knowledge management is concerned with the exploitation and development of the knowledge assets of an organization with a view to furthering the organization’s objectives. The knowledge to be managed includes both explicit, documented knowledge and tacit, subjective knowledge . . .’’ (Davenport et al., 1998). The above goal remains always the same regardless the specific point of view and the level of application. This new link between KM and knowledge-based development, created a favorable environment for the advent of a new concept in the scientific community, the concept of ‘‘knowledge city’’. In this paper, the authors, recognizing the importance of knowledge cities, throw light on several aspects of this field (sections 2 and 3), discuss implications and benefits (section 4) and review specific case studies and success stories in order to illustrate various modes of practice (section 5).

2. Knowledge cities: new concept, different views A comprehensive review of the current literature has revealed that there are several views and opinions about what a knowledge city is, and which its main characteristics are. In this section, the authors attempt to briefly present those views and additionally, to propose a generic definition of the concept. Leif Edvinsson, corporate director of intellectual capital at Skandia of Stockholm, supports that: ‘‘A knowledge city, is a city purposefully designed to encourage the nurturing of knowledge’’ (Henley, 2003). According to a technical report derived from a research project (SGS Economics, 2002): ‘‘The term knowledge city is short hand for a regional economy driven by high value added exports created through research, technology and brainpower. Compared to other cities in advanced economies, knowledge cities invest significantly more of the community’s income (GDP) in education, training and research’’. This report includes some pre-requisites and success factors regarding the success of a knowledge city. In the strategic plan for the cultural sector of Barcelona, there are also some ‘‘criteria’’ for a city claiming to be a knowledge city. This strategic plan was issued from the Barcelona Institute of Culture (Barcelona, 1999) with the contribution of over 350 persons from various areas of culture. The examination of the above-mentioned pre-requisites and ‘‘criteria’’ revealed that some of them are in fact indispensable for any modern, well-developed city. However, some others could be considered as characteristics for what is called ‘‘a knowledge city’’. In this respect, we have the following: Any modern, well-developed city: J high quality of life; J provision of efficient, dependable and cost competitive access to infrastructure for transport of people, goods and information; J an urban design and an architecture that incorporate the new technologies; J central educational strategy including all cultural facilities and services; J economy with enough ‘‘critical mass’’ to support world competitive specialization; J networks of commercial influence, in order to attract funds; J market access and awareness, that is to say high capacity in sustaining robust trading relationships with other markets; J a business culture, which is at once collaborative and competitive;

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concept of the knowledge city is particularly new ‘‘ The and very broad. ’’ J responsive and creative public services; and J open, tolerant and merit based culture and inclusive society. A knowledge city: J provision of access to the new communication technologies for all citizens; J research excellence which provides the platform for new knowledge-based goods and services; J provision of instruments to make knowledge accessible to citizens, in a systematic, efficient, and effective way; J ability to generate, attract and retain highly skilled citizens in different domains; and J existence of civic centers being open to diversity and fostering face-to-face relations. Based on the findings above, it can be concluded that the concept of the knowledge city is particularly new and very broad. It may be refer to some or all of the aspects of social, economic and cultural life of a city. The definitions mentioned above are of different kinds and examine the concept from various points of view. All the definitions are highly dependent on the main strategic objective(s) that such a city has. Consequently, any attempt to give a definition for this concept must be accompanied with reference to these strategic objective(s). The authors, hereby propose a generic definition of the concept, by considering the strategic objective of the knowledge-based development of the city: ‘‘A knowledge city is a city that aims at a knowledge-based development, by encouraging the continuous creation, sharing, evaluation, renewal and update of knowledge. This can be achieved through the continuous interaction between its citizens themselves and at the same time between them and other cities’ citizens. The citizens’ knowledge-sharing culture as well as the city’s appropriate design, IT networks and infrastructures support these interactions’’. This definition is also illustrated in Figure 1.

3. Key success factors The process of developing a knowledge city is neither quick nor simple. As it was mentioned above, this concept refers to many different aspects of life in a city. In this way, any effort to develop a knowledge city must be actively supported by the entire society, i.e. local government, citizens, private sector, organizations, universities etc. It requires a coherent strategy, starting with an examination of the city’s strengths, local government’s political will, regulatory environment, resources and ability of the population to develop a knowledge-sharing culture. Local governments have different strategies to transform their cities into knowledge cities. Figure 2 presents the main key success factors related to the knowledge city concept, categorized in six basic categories. The authors consider these categories (as well as the key success factors that these categories include) as being the most important. It must be noted that this categorization has derived from the examination of existing efforts to develop knowledge cities, presented in section 5. It is a first attempt to identify and categorize the key success factors related to this issue, in a unified way. Consequently, this set of categories of key success factors is subject to additions or changes. These categories are: J Political: the political will is the most important factor for the success of the concept. It can be characterized as the spark for any further action. Of course, an appropriate legislative framework should exist.

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Figure 1 The knowledge city concept

KNOWLEDGE-SHARING CULTURE

IT NETWORKS INTERACTIONS BETWEEN CITIZENS INTERACTION WITH CITIZENS OF OTHER CITIES

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KNOWLEDGE MANAGEMENT Creation

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Figure 2 Success factors related to the knowledge city concept

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J Strategic: any attempt to transform a city to a knowledge city is doomed to failure if it is not guided by a clear strategic vision. This strategic vision should incorporate and take into account the entirety of in-depth knowledge concerning the city status. It is compiled by the actors being responsible for the future of the city (e.g. local government, specific agencies and organizations etc) and it results to a set of specific objectives and a series of measures and actions. J Financial: before the implementation of any strategic plan, the appropriate funding of the initiatives should have been ensured. Through marketing actions, the city can attract outside investments. J Technological: it is important that citizens are familiar with new technologies and have access to them. The information and communications technology (ICT) infrastructure of the city should be of a high level. J Societal: a high level of education and standard of living combined with a knowledge-sharing culture is significant because it will allow the widespread adoption – from citizens’ part – of the new concept and of the necessary changes in their way of living. All that happens in the appropriate context of human rights and freedoms. J Environmental: the business environment and the market needs are two very significant factors that should be thoroughly analyzed. During the implementation phase, the private sector and NGOs play a major role. Their commitment to the strategic plan and their active support to the implementation of projects will help towards the direction of transforming the city into a knowledge city.

4. Main benefits of knowledge cities Nowadays, it is quite clear that the traditional model of development is no longer functional. The advantages of the knowledge-based development for the human societies are also particularly emphasized during the last years in the literature (Malone et al., 2002; Laszlo et al., 2002; Arbonı´es et al., 2002; Mansell, 2002; Scheel, 2002). In this context, the main benefit of knowledge cities is that, by definition, they are functioning in such a way that is in favor of their knowledge-based development. If we would like to examine the benefits of knowledge cities, on a more local scale, we should refer to the following: J creation of more and well-paid employment; J faster growth in community’s income and wealth; J a more sustainable economy, by increasing their capacity to take on technological innovations and attract off-shore investment; J revitalization of traditional industries; J a boost to tourism; J greater opportunities to share the wealth through investment in the public domain (parks and gardens, public transport, cultural facilities etc) and better funding of social safety nets; J a boost to the city’s pride and confidence, which acts as a platform for reinvestment of local capital into the local economy; J creation of knowledge communities that will provide ‘‘just-in-time’’ knowledge when it is needed; J better education services; and J creation of a tolerant environment towards minorities and immigrants. In addition, the structure of a knowledge city contributes to the better functioning of democracy by online knowledge-sharing among all the citizens, provision of inexpensive, real-time access to consistent, up-to-date information facilities, support for online debates etc. We should also stress the fact that the ‘‘digital divide’’ is replaced with ‘‘digital inclusion’’ and the benefits of technology flow to all members of the community.

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Finally, a knowledge city could serve as an excellent platform and basis for the further development of a digital city or a virtual knowledge city. Digital cities integrate urban information and create public spaces for people living in the cities (Ishida, 2000). Many worldwide projects had or have as a main target to develop digital cities over real-life cities (Van den Besselaar et al., 1998; Beckers, 1998; Peeters, 2000; De Bruine, 2000; Ishida, 2002; McQuillan, 2002).

5. Selected cases and success stories Several cities identify themselves as knowledge vities, while some otherd have already elaborated strategic plans in order to be transformed into knowledge vities. In what follows, we present some successful initiatives and projects, as examples of an attempt to promote this concept in several countries. Section 5.1 is devoted to knowledge vities, while in section 5.2 there are two cases of ‘‘virtual’’ knowledge cities. 5.1. Knowledge cities 5.1.1. Barcelona, city of knowledge (Ploeger, 2001). According to the third strategic plan for the development of the city of barcelona (Barcelona, 1999b): ‘‘In the new context of globalization and the European Union, Barcelona, as the metropolitan region and capital of Catalonia, should press forward with a social and urban economic transformation process in order to place itself amongst the leading group of urban regions in the new information and knowledge society of the 21st century . . .’’. The general council and the executive board responsible for the implementation of this strategic plan, chose five strategic lines, with main points being ‘‘knowledge’’ and the ‘‘own strengths’’ of Barcelona. Strategic line 3 involved the concept of ‘‘city of knowledge’’. A new councilor was added to the city’s political structure, who works horizontally within the city administration and is responsible for the project called ‘‘City of Knowledge’’. The new councilor’s task is to make this concept an integral part of the policies of other departments – culture, tourism and urban development – with the concurrent support of the important agencies in knowledge production, transfer and application. The success of the concept is particularly dependent on the private sector’s initiatives and actions. In this respect, Barcelona attempts to stimulate private sector with two types of measures: on the one side, by providing the basic infrastructure which is considered necessary – energy infrastructure, communication infrastructure, transport systems etc. – and on the other side by encouraging, through the appropriate regulations, the development of buildings for ‘‘knowledge’’ businesses. Moreover, the offices of economic promotion, employment, tourism and commerce use the concept of ‘‘city of knowledge’’ in its activities, mostly through Barcelona Activa, which is an autonomous company fully sponsored by the City Hall and responsible for the overall economic development of Barcelona. Some of Barcelona Activa’s latest projects are related to the ‘‘City of Knowledge’’ strategy: J Barcelona Net Activa, a virtual community based on Internet/intranet/extranet technologies. It provides support to business people, accommodating a virtual community of enterprises and promoting the creation of enterprises through co-operation, innovation and continuous learning. J Ciberna`rium, an ‘‘Internet multispace’’ for the professional and business community. Its main objective is to bring new technologies closer to enterprises, professionals, students and all the people interested in the opportunities offered by a knowledge society. J Infopime, a project that pursues the objective of creating an efficient communications system between Barcelona City Council and businesses, via a web site. J Barcelona Empre`n, a venture capital company addressed specifically to satisfy the financial needs of small innovative enterprises, for their development. The financing is derived from the municipality of Barcelona, financial institutions, insurance companies and large enterprises of the city. It must be noted that the concept of knowledge city has quickly gained interest in Barcelona. All agencies involved in the implementation of Barcelona’s strategic plan, including local

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authorities, participated with equal power in the process of setting the priorities. In this way, the relations between public and private parties were strengthened. In addition, the appointment of the councilor mentioned above, made clear that the city wishes to use its innovative capacities to their full potential. The remaining question is whether the investments in knowledge and new innovative firms will eventually result to the anticipated economic success story that is anticipated. It is hoped that the presence of many small knowledge-intensive companies in certain sectors will make the city an important economic center and that bigger companies will be attracted by this environment. 5.1.2. Delft: from industrial city to knowledge city (Kraaijestein, 2002). Delft is located in The Netherlands, in the province of south Holland. The city has a long tradition in industrial activity, in sectors like metal industry, chemical industry, construction, food and drinks. Especially before 1975, the industry employment was an important feature. However, in the decades of 1970s and 1980s, the difficulties that the industrial companies faced, resulted in a significant drop of employment in the industrial sector. Unemployment used to be a main problem for local authorities as well as for national government. The local government of Delft responded to this decline in employment in a way that can be distinguished in three phases: J Phase 1. In this phase, placed chronologically at the end of the decade of the 1970s, the objective was to maintain the number of jobs. The local government had the opinion that an active policy was necessary and recognized the importance of the local University of Technology and of TNO (research institute) in the direction of offering business in Delft. However, the local government did not translate this into specific policy measures. J Phase 2. Unemployment increased considerably in the beginning of the 1980s. Much attention was paid to social and cultural activities for the unemployed. At the end of the decade the local government realized that the city needed to have a clear vision for the future. The project known as ‘‘View of Delft’’ set a new direction for the local government. Delft, as a modern center of knowledge, was considered to be one of the strong points for future development. J Phase 3. The development of Delft, the knowledge city. A study implemented for the city, by TNO-INRO (TNO-INRO, 1990; Knight, 1995), named ‘‘Delft, the knowledge city’’, offered an extensive analysis of the strengths and weaknesses of Delft economy. The main conclusion was that knowledge was one of its strongest points. About one-third of jobs in Delft were knowledge-intensive. According to the report, the local government had the responsibility of taking the initiative to transform Delft into a knowledge city, through the promotion of networks linking local business, the university, research institutions and the local government as partners. In order to bridge the ‘‘traditional Delft’’ and the knowledge sector, a change in culture was needed. Citizens, companies and social organizations should be actively involved in this cultural shift. Knowledge was no longer an abstract meaning, but it was regarded as a production factor like labor and capital. In 1996, Delft City Council adopted the main strategy in order to further develop as a knowledge city. This strategy could not be accomplished by the city on its own. Practitioners from the ‘‘knowledge industry’’ were invited to take part in the planning process. Knowledge players in town were asked to help define the mission and develop an action plan, financed by the $3 million fund that was made available. Since then, 60 projects have been carried out. At the beginning of the 1990s, 30 percent of the economy was knowledge-based and had grown to 40 percent by the end of the century. The city clustered its knowledge intensive projects, included in the ‘‘Delft Knowledge City’’ initiative, in five streams, which reflect Delft’s strengths: (1) water and soil; (2) design and architecture; (3) information technology; (4) innovative transport systems; and (5) environmental technologies. During implementation of the strategy, the intention was to strengthen these points and thereby increase employment levels in Delft as well as the familiarity of Delft as a brand. 5.1.3. Eindhvoen (Ploeger, 2001). Eindhoven is a city of 200,000 inhabitants in the southern part of The Netherlands. It is the central city in the most industrialized region in The Netherlands. Many public agencies are involved in the design and the implementation of the strategy of the city.

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process of developing a knowledge city is neither ‘‘ The quick nor simple. ’’ NV Rede is the executive agency for the Eindhoven Region. It aims to develop the region’s ‘‘dynamism’’. In order to further develop the region’s advantageous position in industrial technology, five spearheads were chosen: (1) mechanics; (2) knowledge technology; (3) medical technology; (4) environmental technology; and (5) automotive industry. The clustering principle is at the heart of the plans for these sectors. Companies make use of each other’s knowledge in supplier-manufacturer relationships and these clusters should profit from technological know-how available in the various knowledge institutions of the region. Thus, the main projects involve knowledge sharing and continuous training programs in order to strengthen the clusters. NV Rede is one of the main parties in the stimulus program, along with the national Ministry of Economic Affairs and the Province of North Brabant. One of the main aims of the program is to develop the Eindhoven region as a ‘‘brainport’’. The City of Eindhoven set the development lines for the city’s future, in its development program 1999-2003. In this program, the vision for the future of Eindhoven has four main pillars. One of them is named ‘‘Eindhoven knowledge city’’. It is believed that the main competitive advantage of the city, in relation to other Dutch cities, is located in innovation and technology. The municipality mainly acts on this slogan with physical measures, by developing the infrastructure in which knowledge clusters can flourish. It also facilitates the establishment and the foundation of knowledge businesses and institutes. Two projects related to this main pillar of the city’s strategy have to do with the development of two ‘‘brainparks’’: (1) The TUE Campus (EU Techpark), where the Technical University of Eindhoven is one of the main actors for knowledge development. This campus will be further developed as a ‘‘breeding ground’’ for knowledge, where young entrepreneurs and academicians could meet. (2) The Philips Technology Campus. The same concept as above is used by the municipality of the city for this campus. In this case, office space and labs will be developed as well as shops, restaurants and other facilities. 5.1.4. Melbourne, knowledge city. According to the City Plan 2010 for Melbourne (Melbourne, 2010) one of the main strategic directions is to grow Melbourne’s competencies as a globallyrecognized, entrepreneurial and competitive ‘‘knowledge city’’. In the plan it is stated that: ‘‘Our capacity to cultivate and apply knowledge is critically important because it will drive economic development in the city through the creation of new products, processes and services’’. Until 2010, the city will build on its competitive strengths on ICT, advanced manufacturing, biotechnology etc. Another critical factor for the city’s future as a knowledge city is the quality of urban environment. Some of the main objectives towards this strategic direction are the following: J redress the skill shortage in the ICT sector and build the city’s reputation as the ICT capital of Australia; J develop the city as a gateway for biotechnology in Australia and the Asia-Pacific region; J promote the growth of education services in the city’s territory;

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J develop and promote the city as a place that understands, respects and operates successfully with other business cultures; and J develop and promote the city’s diverse and highly skilled workforce regionally, nationally and globally, so as to attract global projects. 5.2. ‘‘Virtual’’ knowledge cities 5.2.1. City of Knowledge. This is the title of a research project launched in 2001 and implemented in Brazil. It was coordinated by the University of Sa˜o Paulo, with the support of banks, high tech companies, NGOs, business associations, and media groups etc. The main objective was to build a community connecting high school, undergraduate and graduate students with professionals from all areas of knowledge and social status. A flow of tacit knowledge will be created among organizations, thus establishing a public space for the continuous sharing of tacit end explicit knowledge. The existence of such a network would form the performative structure within which, the community becomes a knowledge community beyond the codes, software and hardware involved (Schwartz, 2001). The ‘‘virtual’’ knowledge city created in the context of the project, is a communications network which links the worlds of education and labor. Both worlds’ share and cooperative knowledge contributes to the objective of expanding and enhancing employment opportunities in Brazil. Each participant produces a given content that, in turn, is available at the University of Sa˜o Paulo’s digital library. Moreover, this city is a research network on new forms of knowledge production and democratization. 5.2.2. City-to-city knowledge sharing. In 1999, municipal staff from seven cities in Philippines met in order to create a comprehensive plan for economic growth and investment priorities. Within a period of four years, this network grew to 40 cities throughout the Philippines. The group of officials from the different cities was extremely interested in sharing ideas with other cities in their area. In this way, with the economic assistance of World Bank and with the advice offered by other organizations, the network launched an Internet portal in February 2001 (Philippines, 2001). The Philippine City Network is a knowledge-sharing platform for the cities of the network. This platform was created in order to cover the following needs of leaders and practitioners: J expansion of their existing network; J sharing of knowledge and discussion; and J development of effective solutions for urban problems. This network allows each member to be connected to the right knowledge quickly; in this way, it provides access to ‘‘just-in-time’’ knowledge. The mayors of the cities commented that when they face a new problem or questions, the platform connected them to knowledge – delivered immediately – which helped to improve cities’ management and service delivery to residents. This initiative has also served as a model for similar initiatives in Indonesia and China.

6. Conclusions The concept of knowledge cities has begun to attract the interest of research community and practitioners, during the last years. From the cases examined, one main ‘‘lesson learnt’’ in knowledge cities’ design and implementation is the importance of having strong links and creating synergy and trust between all social actors, national and local government, universities, industries and society as a whole. This should be done in the context of the appropriate technological infrastructure, but without adopting a narrow, too technical view, that overlooks the social and cultural barriers to the creation of an environment that is conductive to creativity and knowledge sharing. In this point, we should stress the fact that local culture and values play a key role in the creation of a knowledge-sharing culture. The right financial incentives and resources are indispensable as well as a ‘‘high mobility’’ workforce. It also becomes clear that there is neither a coherent framework nor a unified methodology for the design and implementation of knowledge cities. Future research efforts should be focused in this direction. A further step is the definition of innovative metrics for the evaluation of

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knowledge cities initiatives. Finally, considering the fact that many projects have as an objective the building of digital cities, the theme of parallel and integrated development of a real-life knowledge city and of its digital or ‘‘virtual’’ version should be investigated.

References Arbonı´es, A.L. and Moso, M. (2002), ‘‘Basque country: the knowledge cluster’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 347-55. Barcelona Institute of Culture (1999), ‘‘Strategic plan for the cultural sector of Barcelona’’, available at www.bcn.es/accentcultura/angl Barcelona (1999b), ‘‘Pla estrategic economic social de Barcelona (en la perspective 1999-2005)’’, Associacio pla estrategic de Barcelona & Ajuntament de Barcelona. Beckers, D. (1998), ‘‘Use and users of the Amsterdam digital city’’, MA thesis, University of Amsterdam. Carrillo, F.J. (2002), ‘‘Capital systems: implications for a global knowledge agenda’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 379-99. Davenport, T. and Prusak, L. (1998), Working Knowledge: Managing What Your Organisation Knows, Harvard Business School Press, Boston, MA. De Bruine, A. (2000), ‘‘Digital city Bristol: a case study’’, in Ishida, T. and Isbister, K. (Eds), Digital Cities: Experiences, Technologies and Future Perspectives, Lecture Notes in Computer Science, Vol. 1765, Springer-Verlag, Berlin, pp. 110-24. Ergazakis, K., Karnezis, K., Metaxiotis, K. and Psarras, J. (2004), ‘‘Knowledge management in enterprises: a research agenda’’, International Journal of Intelligent Systems in Accounting, Finance & Management, in press. European Commission (2000), Innovation Policy in a Knowledge-Based Economy, Office for Official Publications of the European Communities, Brussels. Henley (2003), Henley Knowledge Management Conference, Annual 2-Day Conference, 3-4 June, Henley Management College, UK. Ishida, T. (2000), ‘‘Understanding digital cities’’, in Ishida, T. and Isbister (Eds), Digital Cities: Experiences, Technologies and Future Perspectives, Lecture Notes in Computer Science, Vol. 1765, Springer-Verlag, Berlin. Ishida, T. (2002), ‘‘Digital city Kyoto’’, Communications of the ACM, Vol. 45 No. 6, pp. 76-81. Knight, R. (1995), ‘‘Delft Kennisstad concept’’, Knowledge-based development: policy and planning implications for cities, Urban Studies, No. 2, pp. 243-5. Komninos, N. (2002), Intelligent Cities: Innovation, Knowledge Systems and Digital Spaces, Routledge mot E F & N Spon. Kraaijestein, M. (2002), ‘‘Delft: from industrial city to knowledge city. Local economic policy in Delft, The Netherlands’’, Urban History Conference, Edinburgh. Laszlo, K.C. and Laszlo, A. (2002), ‘‘Evolving knowledge for development: the role of knowledge management in a changing world’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 400-12. Malone, T.F. and Yohe, G.W. (2002), ‘‘Knowledge partnerships for a sustainable, equitable and stable society’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 368-78. Mansell, R. (2002), ‘‘Constructing the knowledge base for knowledge-driven development’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 317-29. McQuillan, H. (2002), ‘‘Ennis information age town: virtuality rooted in reality’’, in Tanabe, M., Van den Besselaar, P. and Ishida, T. (Eds), Digital Cities, Lecture Notes in Computer Science, Vol. 2362, SpringerVerlag, Berlin, pp. 139-51. Melbourne (2010), ‘‘Melbourne city plan 2010’’, www.melbourne.vic.gov.au/cityplan/infopage.cfm?tid=-1

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Milton, N., Shadbolt, N., Cottman, H. and Hammersley, M. (1999), ‘‘Towards a knowledge technology for knowledge management’’, International Journal Human-Computer Studies, Vol. 51, pp. 615-41. Nonaka, I. (1991), ‘‘The knowledge-creating company’’, Harvard Business Review, Vol. 69, pp. 96-104. OCDE (2001), ‘‘The new economy: beyond the hype’’, Final Report on the OCDE Growth Project, available at: www.oecd.org/EN/home/0,,EN-home-33-nodirectorate-no-no-33,FF.html Peeters, B. (2000), ‘‘The information society in the city of Antwerp’’, in Ishida, T. and Isbister, K. (Eds), Digital Cities, Lecture Notes in Computer Science, Vol. 1765, Springer-Verlag, Berlin, pp. 73-82. Philippines (2001), The Philippine City Network, available at: www.cdsea.org Ploeger, R (2001), ‘‘Innovation and new entrepreneurship: a cross national survey of policies in 13 European cities’’, Technical Report, Amsterdam study centre for the Metropolitan Environment, available at: www.ez.amsterdam.nl/eurocities Scheel, C. (2002), ‘‘Knowledge clusters of technological innovation systems’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 356-67. Schwartz, G. (2001), ‘‘Knowledge city: a digital knowware’’, ThinkCycle Organisation first workshop, MIT Cambridge, available at: www.thinkcycle.org/tc-filesystem/file?file_id=13027 SGS Economics and the Eureka Project (2002), ‘‘Towards a knowledge city strategy’’, Technical Report, Melbourne City Council. TNO-INRO (Instituut voor Ruimtelijke organisatie) (1990), ‘‘Delft Kennisstad concept’’, Technical Report, Delft. United Nations Organisation (2001), ‘‘Making new technologies work for human development’’, The Human Development Report 2001, UNO, New York, NY. Van den Besselaar, P. and Beckers, D. (1998), ‘‘Demographics and sociographics of the digital city’’, in Ishida, T. (Ed.), Community and Support Systems, Lecture Notes in Computer Science, Vol. 151, SpringerVerlag, Berlin, pp. 109-25. Wiig, K. (1993), Knowledge Management Foundations: Thinking About Thinking – How People and Organizations Represent, Create and Use Knowledge, Schema Press, Arlington, TX. Wiig, K. (1997), ‘‘Knowledge management: where did it come from and where will it go?’’, Expert Systems with Applications, Vol. 13 No. 1, pp. 1-14. Wilkins, J., Van Wegen, B. and De Hoog, R. (1997), ‘‘Understanding and valuing knowledge assets: Overview and method’’, Expert Systems with Applications, Vol. 13, pp. 55-72. World Bank (1998), ‘‘Knowledge for development’’, World Development Report, available at: www.worldbank.org/wdr/wdr98/index.htm

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Innovation engines for knowledge cities: an innovation ecology perspective Ron Dvir and Edna Pasher

Ron Dvir, Founder and CEO, Innovation Ecology, Pardesiya, Israel ([email protected]). Edna Pasher, CEO, Management Consultants, Herzliya, Israel ([email protected]).

Abstract Innovation is the process of turning knowledge and ideas into value. An ‘‘urban innovation engine’’ is a system which can trigger, generate, foster and catalyze innovation in the city. This paper describes the concept of the ‘‘urban innovation engine’’, provides some historical and contemporary examples, and suggests a set of guidelines for turning ordinary urban institutions into innovation engines. The paper has two purposes: to trigger further theoretic and action research and exploration in the domain of urban innovation. In recent years there has been intensive research about the conditions (‘‘ecology’’) which enable and catalyze knowledge development and innovation in the business world. A second new focus area in the research of knowledge development is the role of the city as a hub for intensive flows and exchanges of knowledge among its habitants and additional stakeholders. We suggest weaving the learning from the business and urban worlds by attempting to apply the dimensions of innovation ecology models to knowledge cities. More specifically, we look at multiple traditional urban constructs, and show how they might act as significant drivers for creativity and renewal. Typically an urban innovation engine is a complex system that includes people, relationships, values, processes, tools and technological, physical and financial infrastructure. We suggest that what innovation engines really do is to create conversations – which are the foundation of most innovations. We bring some examples and snap-shots from several urban innovation engines such as the museum, the library, the stock exchange, the cafe´, the brownfield, the grand fair, the outlook tower, and the industrial district. The paper conceptualizes the notion of ‘‘urban innovation engines’’. Based on this concept, it provides a set of guidelines for creating a knowledge city using innovation engines as its building blocks, and innovation ecology elements as an important part of its operating system. Keywords Knowledge management, Innovation

Introduction The town-planner Borja (1998) defined the city as ‘‘that European, Mediterranean, but also American, Asian, physical, political and complex cultural product that we have characterized in our ideology and our values as a concentration of population and activity, a social and functional mixture, capable of self-government and an area of symbolic identification and civic participation – the city as a place of encounter, exchange, where city equals culture and trade – a city of place and not a mere nexus of flux’’. The world’s burgeoning cities are a critical fact of the 21st century – and represent one of the greatest challenges to the future. By the year 2050 cities with populations over 3,000,000 will more than double from 70 today to over 150.

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DOI 10.1108/13673270410558756

When knowledge is perhaps the most important factor in today’s economy, there is a growing interest in the concept of the ‘‘knowledge city’’. ‘‘Knowledge’’ and ‘‘innovation’’ are strongly connected concepts. Amidon (1993) tied the two together and defined ‘‘knowledge innovation’’ as ‘‘the creation, evolution, exchange and application of new ideas into marketable goods and services for the excellence of an enterprise, the vitality of a nation’s economy and the advancement of society as a whole’’. The process of innovation becomes expeditiously one of the ultimate managerial challenges of the next decade and beyond. It is at the heart of business survival, transformation and sustainability (Amidon, 1996). But, innovation is critical not only for business but also in civic domains, such as cities and regions. The quest for innovation is relevant not only to economic sustainability but also to social and cultural life. Therefore, the creation of an organizational climate which enables and catalyzes innovation deserves special attention from both the academic community and the practitioners who lead all forms of organizations – be it business organizations, cities, regions, non-governmental organizations etc. In this paper we describe the elements of such a climate, which we call the ‘‘principles of innovation ecology’’. The paper argues that these principles can be embedded in cities through ‘‘urban innovation engines’’. Although the terminology is new, there are many historical examples of ‘‘knowledge cities’’ and ‘‘innovation engines’’. Thus, some of the snap shots reflect ancient experiences, while other represent contemporary initiatives. The trigger for this paper was the three ‘‘knowledge Cafe´s’’ session at the combined Entovation 100 roundtable and Latin America knowledge development forum, Monterrey, Mexico, in November 2003. Three levels of the knowledge society were discussed: ‘‘knowledge cities’’, ‘‘knowledge regions’’ and ‘‘knowledge world’’.

What is a ‘‘knowledge city’’? Leif Edvinsson defines knowledge city as ‘‘a city that was purposefully designed to encourage the nurturing of knowledge’’. An interesting list of characteristics of a knowledge city is included in a position paper titled ‘‘Culture, the motor of the knowledge city – strategic plan of the cultural sector of Barcelona’’ (Barcelona, 2003). The following list highlights some of the proposed criteria: J a city that has instruments to make knowledge accessible to citizens; J a network of public libraries that is compatible with the European standards; J access to the new communication technologies for all citizens; J all cultural facilities and services with a central educational strategy; J a city that has a newspaper – and book-reading level that is similar to the average European level; J a city that has a network of schools connected with artistic instruction throughout its territory; J a city that is respectful of the diversity of cultural practices of its citizens; J a city that places the streets at the service of culture; J a city that simplifies, through the provision of spaces and resources, the cultural activity of the community collectivizes and associations; J a city with civic centers that are open to diversity and that foster face-to-face relations; and J a city that makes available to citizens from other territories all the tools required for them to express themselves. There are already several cities that identify themselves as knowledge cities, or have generated strategic plans to become knowledge cities. The list includes the following cities as examples: J Barcelona, Spain – the activity of Barcelona Forum 2004, which manifests the cultural perspective which Barcelona took, is described later in this paper.

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J Calgary, Canada – Calgary was named the co-recipient of the ‘‘World’s Top Intelligent Community of 2002’’ by the World Teleport Authority’s Intelligent Community Forum. ‘‘Calgary was chosen for its strength in a variety of areas . . . however, the most compelling case was made by Calgary’s efforts to bridge the digital divide and bring technology access, and the benefits of effective use of technology to those in the community who are traditionally excluded’’. J Delft, The Netherlands – the city clustered its knowledge intensive projects included in the ‘‘delft knowledge city’’ initiative in five themes: soil and water; design and architecture; information technology; innovative transport systems; environmental technologies. J Melbourne, Australia – its strategic plan for 2010 emphasizes the path towards enhancing its position as a knowledge city (Melbourne, 2003). J Monterrey City, Mexico - the new governor elected in 2003 set the explicit goal of becoming a knowledge city among his top five priorities. A note on terminology and scope: although the focus of the paper is on ‘‘knowledge cities’’ it should be noted that the same principles apply also to other ‘‘knowledge zones’’ such as knowledge corridors, knowledge harbors, knowledge villages and knowledge regions. ‘‘Knowledge city’’ is used as an umbrella metaphor for geographical entities which focus on knowledge creation (Davis, 2004). When we mention ‘‘urban innovation engine’’, it can also apply to a ‘‘regional innovation engine’’. The notion of ‘‘Knowledge City’’ is interchangeable to a certain degree with similar evolving concepts such as ‘‘intelligent city’’ (Komninos, 2002), ‘‘educating city’’ (Figueras, 2004), or ‘‘smart city’’.

The ecology of innovation As argued in the introduction, innovation is a critical challenge in the knowledge economy. In this section we present a set of principles for an organizational climate that fosters knowledge creation and innovation which we call the principles of innovation ecology. The research on this subject is well developed in the domain of business organizations, and therefore many of the references in this section refer to the business world. However, it is suggested that the same principles can apply also to non-business domains such as knowledge cities. According to Por (2001), a successful work ecology is a ‘‘complete, organic, ecosystem. It integrates many disciplines together to produce a dynamic, holistic view of the workplace and its relationship to its environment. It addresses all elements that make up today’s high velocity, rapidly changing workplace, especially the way they interact in the form of work to produce the outcomes needed by the enterprise and its stakeholders’’ (Ward, A., 1999). It is a rich ‘‘stew’’ of interdependent elements, continuously interacting and adapting to produce outcomes that ensure the vitality and sustainability of the enterprise (Por, 1999). Great leaders create conditions that bring out people’s ability to produce extraordinary results. Central to that task is the creation of a climate for innovation, which is a force field that guides managers and entrepreneurs towards innovation – or against it (Pinchot and Pellman, 1999). Innovation ecology is the work environment (or an urban environment), a setting that can enable, encourage, foster, and catalyze the generation of ideas and creation of value out of them (Hale, 1996). It supports individuals, teams, and the whole organization in the journey towards sustainable growth and success that is based on on-going innovation. The elements of innovation ecology The ecology of innovation is a complex system composed of many interlinked elements (Figure 1). Here are some of the more influential ones: Element 1: Time. New ideas require exploration before their value can be demonstrated to others. Innovative organizations give people the freedom to use some of their time to explore ideas without having to ask permission (Pinchot and Pellman, 1999). In many organizational surveys, ‘‘lack of time’’ appears as the #1 obstacle for innovation. The solution of 3M is well known: their 15 percent rule states that every employee can use up to 15 percent of his/her time on ideas not related to daily work and responsibilities (Kanter et al., 1997).

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Figure 1 Ecology of innovation

Source: Dvir et al. (2000)

Element 2: Organizational structure. Flat organizational structure, weak boundaries between departments, low emphasis on hierarchy, and perhaps even a loosely defined structure increase the chances that the organization will enhance, rather than inhibit, the generation, flow and leverage of ideas. Organizational forms are of fundamental importance to innovation. Different kinds of innovation have different characteristics and require different organizational forms and managerial approaches in order to be successful (Damaskopolus, 2002). Integrated project teams, multi-disciplinary teams, virtual teams, future centers, and internal incubators are examples of forms that contribute to innovation. Element 3: Physical space. In an economy based on innovation, what better use can there be for space than to inspire creativity? Several innovative organizations believe that creative space – both the shared space and the private office – can significantly contribute to the organizational atmosphere of wild ideas, action, chaos, open mind, and barrier breaking. (Liber, 2001; Ward, V., 1999). The playful design of IDEO’s Boston offices invites employees to play with ideas, think out of the box, and break the rules. At IDEO, they believe that at its best, space can inspire and amuse. The merging of fun and work is invigorating (Kelley, 2000). Element 4: Tolerance of risk. Innovative organizations promote risk taking. Innovation requires learning of new things, experimentation, and pushing the boundaries of the unknown. The leaders of such organizations invite and reward (clever) risk taking, and do not punish mistakes. Failures are taken as golden learning opportunities. Element 5: Strategy. In an innovative environment, the vision and strategic intent of the organization are clearly communicated to all employees. This joins all creative forces and energies and directs them towards the strategic benefit of the organization (Pinchot, 1997). Element 6: Recognition and incentive systems. Creative people are self-motivated. However, all innovation researchers, leaders and practitioners agree that rewarding innovation can contribute to its success. There is an open dispute about the appropriate mechanism to reward innovation. In some organizations, there are significant direct financial incentives related to the financial expected contribution of the innovation. For example, in Pfizer, the creative people enjoy a faster career path, salary increases and prizes for individuals and teams (Kanter et al.,

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1997). Others believe that the softer ways are preferred: public recognition, attention from management, and symbolic signs of recognition. Element 7: Virtual space. In many innovative organizations of the 21st century, technology has multiple supportive roles, such as facilitating collaboration between distant members and streamlining and catalyzing the flow of ideas, as demonstrated forcefully by BT’s ideas management intranet system (Lakin, 2001). A research of virtual scientific collaboration showed that the virtual conferencing provided the participants with an adequate means of exchanging and creating knowledge, creating a sense of ‘‘presence’’ and ‘‘being there’’ (Towell and Towell, 2001). Nonaka, when discussing the concept of ‘‘ba’’, a space for knowledge creation, suggests that it can also take a virtual form, a ‘‘cyber ba’’ (Nonaka, 1998). Element 8: Structured and spontaneous processes. Many studies have found that serendipity is a key to recurring innovation (e.g. Koeing, 2000). Innovative companies must protect the possibility that surprises will occur. Serendipity, intuition, experience, scanning, and relations are sources of surprises (Cope. 1998). At the same time, without a powerful process to capture the good ideas and turn them into value, most ideas will vanish without having a fair chance to make their way through a serious evaluation, development and testing funnel. Maintaining a degree of tension between structure and creativity can be useful, and the inherent conflicts between them should not be completely resolved (Brown and Duguid, 2001). Here we need to emphasize that structured processes enhance the innovation capability of the organization, but too much structure and bureaucracy can kill it. Element 9: Knowledge management. Management of the existing knowledge of the organization provides a solid foundation for the creation of new knowledge (Ruggles and Ross, 1997). Effective treatment of the organizational knowledge resources (experience, expertise, history, lessons learned, best practices, to name some of the typical knowledge assets) is part of an innovation ecology. Element 10: Financial capital. Serious innovation requires significant investment in translating brilliant ideas into viable products and services. Innovative organizations allocate considerable resources to the various innovation phases: understanding customer needs, researching the environment, developing products, and testing them in the laboratory and in the market. There are several models of internal incubation in which employees with good ideas receive significant resources to test them. Element 11: Diversity. Similar people will generate similar ideas. Some innovative organizations deliberately increase diversity in the work force. Diverse experiences, cultural backgrounds, professions, academic background, ages, and personalities contribute to the creation of fruitful dialogues based on multiple perspectives (Naimen, 1998). Element 12: Attention to the future. In a turbulent environment, there is continuous tension between the day-to-day challenges, tasks and problems and the need to focus on the future. In organizations that excel in innovation, the top priority issue is the future. In other companies, most management and employee attention is directed to fire fighting and short-term objectives. ‘‘The future is 14 second away’’ argues Edvinsson (2003), and created Skandia future center, with the explicit objective of ‘‘turning the future into an asset’’. Element 13: Challenge. Open ended, non-structured tasks engender higher creativity than narrow jobs. People respond positively when they are challenged and provided with sufficient scope to generate novel solutions (Ahmed, 1998). Element 14: The unifying principle – conversations. According to Nonaka’s (1998) spiral model of knowledge creation, the process is based on the conversion of knowledge: J combination – from explicit knowledge to explicit; J internalization – from explicit to tacit; J externalization – from tacit to explicit; and J socialization – from tacit to tacit.

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Conversation (including contemplation, which is an inner conversation) is instrumental to these four knowledge conversion phases. Ideas are created at conversations (and contemplation), and are enhanced and developed through conversations (Stewart, 2001). Alan Webber argues that ‘‘Conversations inside and outside the company are the chief mechanism for making change and renewal an ongoing part of the company’s culture’’ (quoted in Stewart, 2001). Therefore, they are a core element of an innovation ecology. A close examination of the other elements elaborated above shows that most of them support and enable conversations. For example, the physical space, the virtual space, the time space, the challenge space (which calls for meaningful conversations), diversity – all are important enablers of innovative conversations. Therefore, the conversations have a special role in the set of innovation ecology principles, as a unifying element.

Urban innovation engines An ‘‘urban innovation engine’’ is a system which can trigger, generate, foster, and catalyze innovation in the city. Typically, it is a complex system that includes people, relationships, values, processes, tools and technological, physical and financial infrastructure (Dvir, 2003). The Agora in ancient Athens was perhaps one of the first examples of such urban places (Plate 1). Using the terminology of Nonaka, an innovation engine is a ‘‘ba’’, a place which enables knowledge creation and innovation. The concept of ba was originally proposed by Japanese philosopher Kitaro Nishida (1970). Plate 1. The school of Athens, Rafael (1509-1510) Professor Ikujiro Nonaka adapted this concept for the purpose of elaborating his model of knowledge creation which constitutes on the four phases of socialization, internalization, combination and externalization (Nonaka, 1998). Ba is a context, which harbors meaning. Thus, ba can be considered as a shared space that serves as a foundation for knowledge creation. ‘‘Ba’’ can be thought of as a shared space for emerging relationships. This space can be physical (e.g. office, dispersed business space), virtual (e.g. e-mail, teleconference), mental (e.g. shared experiences, ideas, ideals) or any combination of them. Ba provides a platform for advancing individual and/or collective knowledge.

Plate 2. Outdoor cafe´ (Pierre August Renoir)

A close examination of the constructs of a typical city reveals that many of them can serve as innovation engines. However, not every university, or library, or industrial district, for example, does play the role of a true innovation engine. There is always a unique combination of intangible factors which turn a specific ordinary urban organ into an innovation engine. These factors have been described above as the principles of innovation ecology. This set might include, for example, a strategic intention, an explicit vision to use it as an innovation engine, exceptional leadership, a stimulating physical space, an urgent need or challenge, and a special team. The following section presents 11 generic innovation engines: the cafe´, the big event, the library, the museum, the gate, the future outlook tower, the university, the capital market, the digital infrastructure, the industrial district and science park, the brownfield industrial zone and finally, the urban virtual space. This is not a comprehensive list, rather, it is used to demonstrate some of the principles of innovation engines, and to show that they are (or can be) interwoven into the dynamics of any living knowledge city.

The cafe´ and other ‘‘third places’’ The first innovation engine we visit is the old good cafe´, since knowledge and ideas are created mainly through conversations (Plate 2). Historically, cafe´s provided a stimulating environment for rich conversations which led to the creation of exchange of provocative ideas and breakthrough in diverse areas such as arts, philosophy, psychology and politics (Plate 3). Many of the influencing ideas of the 19th century were created at the cafe´s of Wien and Paris, for example (Dak, 2003). Plate 3. Jean Paul Sartre, Parisian cafe

It is only natural that the methodology of ‘‘knowledge cafe´’’ was developed to support innovative brainstorming sessions (Plate 4). The cafe´ is an example of ‘‘third places’’ or ‘‘great

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good places’’ which are the ‘‘many public places where people can gather, put aside the concerns of home and work (their first and second places) and hang out simply for the pleasures of good company and lively conversation’’ (Oldenburg, 1999). Coffee shops, bookstores, bars and hair salon have a similar function – and sometimes can act as innovation engines.

Plate 4. Knowledge cafe´ in the E100 roundtable and Latin America knowledge development forum, Monterrey, 2003

How do third places provide an ecology for innovation and relate to the set of elements explained above? They provide the stimulating physical space; they provide the relaxed time space; some of them provide diversity space; all provide the spontaneous knowledge creation processes; most provide safe opportunity for risk taking; usually they excel at informal knowledge management; all provide the ecology for conversation and inner conversations, i.e. contemplation.

The big urban event What is common to Paris 1900 and Barcelona 2004? Both are fine examples of cities that used large-scale events as innovation engines. The ‘‘Paris Exposition Universelle de 1900’’ was an opportunity for many nations to present and share their scientific and cultural achievements. It was also a trigger to push forward the state-of-art in diverse areas – the Tour Eiffel is perhaps the most impressive manifestation of this in the area of innovative engineering (Plate 5). The visioning and organization of ‘‘Forum Universal de las Culturas 2004’’ is one of the many tangible steps of the city to realize its vision ‘‘Barcelona knowledge city’’ (Plate 6). ‘‘Forum Barcelona will offer a new and creative space for reflection and experimentation in relation to the main cultural and social conflicts that humanity is faced with at the outset of the 21st century. These 30 hectares are filled with ideas, distributed throughout parks, streets, auditoriums, a swimming area and a marina. This huge area provides opportunities to watch and listen, to experiment, create and taste, to learn and discover, to get excited, but also to reflect. The activities that take place there are designed to respond to visitors’ concerns and satisfy their curiosity, regardless of nationality, age or educational background’’ (Barcelona, 2004). Plate 5. The site of Paris Exposition, 1900

The innovation ecology elements which are relevant to cafe´s and third places (such as time, space, conversations, diversity) are also applicable to the case of the big events. However, more principles are demonstrated in the big event: the strategic intention of the city leaders, the big challenge, financial capital and the attention to the future.

The library

Plate 6. Layout of Forum Barcelona, 2004

Great libraries are not only about archiving the intellectual achievements of the past generations but can serve as a place for innovation. The ancient library at Alexandria, which for a thousand years had been the western world’s most important center of learning. The Alexandria Library was nothing less than the summit of ancient scholarship. Its archives and museum were filled with the intellectual riches of Mesopotamia, Persia, Greece, Rome and Egypt, and its research center was visited by many generations of scholars seeking to stimulate their minds and keep alive memories of the past (Plate 7). Today, in an event that speaks of renewal, Alexandria is trying to recapture the spirit of perhaps its richest legacy – the Great Library of Alexandria – by opening the new Bibliotheca Alexandrina (Plate 8). The reader probably knows two kinds of libraries – sleeping dead warehouses of books, and active, lively places where knowledge may be created and exchange, ideas may be generated through conversations, and innovation can occur. This is the case with all of the other urban institutions explored in the paper – each can be a dead place or play the role of a local innovation engine which applies some or all of the innovation ecology principles.

The gate

Plate 7. Scholars at the old Alexandria Library

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‘‘. . . More recently, I have been looking to identify the major ‘‘knowledge cities’’ of the world. And as Steve Searle in New Zealand pointed out, a starting point is to identify which cities have a university and an international airport’’ (Gurteen, 2003). The airport symbolizes the opportunity for free flows of knowledge, ideas, different perspectives, expertise and innovation from and into the city. It is a central element of the innovation infrastructure of any modern city.

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And in the past the marine port served a similar role. Think of Barcelona port, the departing point of so many exploration adventures and discoveries (Plate 9). ‘‘All roads lead to Rome’’? In the glorious days of the Roman Empire, it was the sophisticated highway system which enabled the flow of ideas and knowledge between Rome and the rest of the Empire (Plate 10).

Plate 8. The new Bibliotheca Alexandrina

The gate is the good example of an innovation engine which provides the element of connectivity which is so critical in todays knowledge economy. It should be noted that a gate is not necessarily of physical entity. The virtual urban portal provides connectivity and access to all citizens.

The museum Similarly to the case of libraries, great museums not only show past cultural achievements but can also serve as hosts and stimulators of innovation in diverse arts fields as well as in other areas. One of the best examples is the Guggenheim museum at Bilbao, which was one of the most important ingredients in the plan to redevelop the city of Bilbao and transform this old industrial town into a knowledge city. Since it opened its doors in 1997, the museum hosted not only art events but many conferences in business innovation, intellectual capital and similar domains (Plates 11 and 12).

Plate 9. Barcelona city and port

The reader is invited to reflect on possible scenarios for the museum as an innovation engine: J What if 65 percent of the museum exhibition space will be dedicated to present future images and not past achievements or representations of contemporary art? J What if 65 precent of the exhibits will be co-created by the visitors and not by established artists? J What if the museum will open its gates 24 hours a day – the muse is still there, before 10:00 and after 17:00.

The future outlook tower Plate 10. Old Rome

Plate 11. Guggenheim museum, Bilbao

Ericsson, the Swedish telecommunication corporation, established in 2000 a small unit called ‘‘Foresight’’. Ericsson Foresight is the corporate futures group, a longterm futures center with a ten-year outlook. The group identifies emerging trends, invites creative ideas, creates scenarios and develops strategic options in a wide range of areas (Ericsson, 2004). Similarly to this organizational observation tower, knowledge cities may establish urban observation towers. One example is The New York Center for an Urban Future, a public policy organization dedicated to improving the overall health of New York City and serving its long-term interests (New York, 2004). The concept of regional/urban future centers includes four elements: (1) a gallery for the creation and presentation of future pictures; (2) an innovation laboratory; (3) a market place for ideas, and (4) a training center for ‘‘future skills’’ (Dvir and Pasher, 2004). The ‘‘on-going citizens conversation’’ is at the heart of the concept (Plate 13). A word of caution: in order to serve as a true innovation engine, the tower must be strongly connected to the city’s citizens – as opposed to a typical ‘‘ivory tower’’. Creating a sense of common language and meaning is also important – in order to avoid the tower from the destiny of the tower of Babylon (Plate 14).

The university

Plate 12. Bilbao – a plan for urban renewal

The University of California, Berkeley in San Francisco, the colleges of Oxford, MIT and Harvard at Boston, Le Sorbonne in Paris, Monterrey Tech at Monterrey (Plate 15), the Technion at Haifa – are all fine examples of the scale, quality and different kind of innovativeness that a good university can contribute to a city. In all

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visions and strategic plans of knowledge cities, the local universities play an instrumental role. However, beware of ivory towers. It is not enough to nourish the academic excellence of the university. The multi-faceted linked between the university and the city citizens – children, teachers, business people, artists, industrialists, etc. – turn the university from a learning and research center into an innovation engine.

Plate 13. Future center at Mitzpe Ramon – conceptual plan

All existing universities already play the role of local (and sometimes international) innovation engines. The challenge is one of intensity – how well do they play this role? How well are they equipped for this? How good are their ‘‘outputs’’ (graduates, research results, breakthroughs, patents, impact on social and business innovation of their environment)? What percentage of their curriculum does address innovation, directly and indirectly? How fast do they turn ideas into reality?

The capital market place In the six facets model of innovation developed in the NIMCube project, ‘‘Exploitation’’, i.e. the act and art of turning ideas into value, was identified as a critical element of innovation (Dvir et al., 2002). In order to allow large-scale exploitation, significant financial resources are required. Therefore we believe that the stock exchanges, banks, joint venture funds and other financial institutions can serve as engines for innovation. However, the potential of these institutions to drive innovation should not be taken for granted – it requires smart, responsible and innovative attitude from all the stakeholders (Plate 16). Designers at Barcelona’s Competitive Design Network coined the term InnoCracy – a democratic approach towards innovation. Although the capital markets have developed in the last 20 years, access to them is still limited, and entry barrier is high – perhaps too high if we believe that wider parts of the population can take part in the InnoCracy game. Plate 14. The Tower of Babylon

Knowledge intensive industrial district and science parks The importance of knowledge intensive industrial districts and science parks as engines for urban, regional and national innovation is well recognized by policy makers at all levels. Most strategic plans for ‘‘knowledge cities’’ emphasize their role (e.g. in Barcelona, Melbourne and Delft knowledge cities). Groningen is another European town defining itself as a ‘‘knowledge city’’. For more than 400 years Groningen has been an important knowledge center in The Netherlands, which is a result of the presence of the University of Groningen. Zernike Science Park complements the university as a driving force for innovation (Plate 17).

Plate 15. Sunday morning, Monterrey Tech.

Innovation parks exemplifies that the operation of innovation engines requires intensive and rich interactions between many stakeholders. In a typical innovation park the government, international corporations, education establishments, research institutes, financial funds and local professionals are all involved.

Brownfield sites

ective

Brownfield sites are underused urban areas, generally dating from the first phase of industrialization. Many cities, including Chicago, London and Toronto are involved in large scale projects to revitalized brownfields and turn them into lively city places which involves culture, business, education, etc. The Westergasfabriek is a former coal gasification plant which was built on farmland on the outskirts of Amsterdam in 1883. It supplied gas until the 1960s and played an important role in lighting the streets of the city in the early part of this century and providing gas for industry. In the recent years it was transformed into a ‘‘park of the future’’ (Plate 18).

Plate 16. The Wall Street Stock Exchange, New York

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Marc van Warmerdam, the director of the famous Dutch music theatre company, captured the unique and important role that this former industrial site plays in sustaining and promoting cultural development in The Netherlands: ‘‘A lot of cultural activity and opportunity comes together in a project like this. Here you can bring commercial elements together with culture. What you need to further your work is to bring young, creative people together, in a large space. This is where it can happen – and these buildings in the Westergasfabriek make it possible’’ (Brownfields Exchange, 1999).

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The cast of brownfields as innovation engines exemplifies that innovation engines should not necessarily be designed and build from scratch. The alternative of reusing old institutions and revitalizing them as innovation engines is more feasible in many cases. It also bears the special quality of past-present-future link, which can intensify creativity.

The digital infrastructure J number of computers per capita; Plate 17. Zernike Science Park

J percentage of population connected to Internet; J intensity of IT education at the kindergarten; and J number of teleworking employees. These are just few examples to some of the criteria or performance measures used by knowledge cities. Why? Both researchers and policy makers believe that the IT intensity is the great divider between developed nations and cities, and those who are lagging behind. Thus, advanced IT infrastructure is considered as a critical condition for an innovative city. The ‘‘City of Knowledge’’ is a research project created in 2001 by economist, sociologist and journalist Gilson Schwartz, Visiting Professor at the Institute of Advanced Studies of the University of Sa˜o Paulo, Brazil. Envisioned as a living network, it could be approximately described as a ‘‘digital city’’ built by ‘‘communities of practice’’ that develop new space-time frameworks for the production of cultural identities and collective intelligence (Schwartz, 2001)

Plate 18. Amsterdam Westergasfabrik

En2Polis was designed by Entovation as the ‘‘international knowledge city of the future’’. It will be composed of several virtual urban institutions such as ‘‘Future Center’’, ‘‘Knowledge Exchange’’, ‘‘Innovation Olympics Stadium’’ and ‘‘Club Know’’ (Amidon, 2003). In the context of a knowledge city, a particular challenge is the combination of virtual and physical innovation engines. For example, one possible approach is to have a virtual branch for each physical innovation engine, in order to exploit the complementary characteristics of the physical space with the ‘‘cyber ba’’.

Other urban innovation engines? How can cities turn other urban places and institutions into engines for innovation? We believe that creative thinking based on collaborative efforts of all stakeholders – citizens, business people, policy makers, educators etc. – can lead to interesting answers. For example the following urban places can become innovation engines: kindergartens, streets, piazzas, open markets, shopping malls, and town halls.

Conclusion – how to build a knowledge city? One of the projects of the Harvard Design School Project on the city was a how-to guide titled ‘‘How to build a city: roman operating system’’ (Andraos et al., 2001). The team of designers explored multiple old Roman cities and investigated their commonalities and architectural and social core concepts. They defined a leg-like set of building blocks such as the Basiclica, the Capitolium, the Templa, the Theatrum, the Forum, the Limites, and the Ceneturatio etc. The manual starts with the following basic assumptions (Plate 19): ‘‘There are four main elements that you will need to understand for building, proliferation and networking of a city: (1) The city is comprised of standardized parts arranged in a matrix. These parts are the standard equipment included in the container of each city and are easily identifiable. (2) The city is organized according to a series of general principles which are socially, culturally, and politically determined, and in most cases are manifested in clear architectural and urban examples. (3) The city is the relationship of constantly changing flows superimposed onto a generic template. Plate 19. A typical Roman city

(4) You will have the ability to customize your city according to local topographical, climatic or cultural conditions.

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For all its apparent complexity, once you know the rules a city is easy to build’’ (Andraos et al., 2001). Can the same logic be applied to the creation of a knowledge city? We don’t think that a knowledge city ‘‘is easy to build’’. There are considerable differences between a theoretical (or even a real) old Roman city and a modern city. Probably the most notable difference is that coemergence and self-organizing principles dominate the development of most human settlements rather then synthetic planning. As suggested by many urban planners (e.g. Sola-Morales, 1997) ‘‘a diffuse organicism can be the underlying model for understanding the transformations of cities. Just as the organs of a living being grow, adapt and transform themselves – in the same way the organs – the architectures – of the city grow, adapt and transform themselves in constant interaction with the natural or social environment’’. Sometimes, the organic development co-exists with a more planned one. However, we do adopt some of the ideas of the above structured logic suggested by the Roman city operating manual to the challenge of architecting a knowledge city. The guide might start with the following principles: J The planning should address the dynamics of knowledge development and the economy of intangible assets, which are very different than the ones of the traditional economy which is based on tangible goods. J The role of the city is to provide its citizens with the enabling conditions which foster knowledge creation, knowledge exchange and innovation. These conditions are embedded in the set of ‘‘innovation ecology principles’’ which were described earlier. J ‘‘Innovation engines’’ accessible to the citizens are the urban organs which turn these enabling conditions into reality. Thus, they should be nourished. J In most cases you will not build a greenfield ‘‘knowledge city’’ or brand new innovation engines. The challenge would usually be to transform ordinary existing (and maybe even aging) urban constructs and re-invent them as true innovation engines which apply the principles of innovation ecology. J The innovation engines must not become isolated ivory towers. They must be connected continuously to each other as well as be integrated in all city’s flows. J Each city is characterized by different cultural, economical and political conditions. Therefore, the specific set of the city’s innovation engines, and the form they will take will be customized to the unique urban circumstances, competencies, opportunities and challenges. J A viable ‘‘knowledge city’’ or any of its innovation engine constructs will not be architected by a single professional or urban department. Rather, it will be the outcome of a collaborative process which involves the talent, insights and perspectives of all stakeholders – senior citizens, children, local business people, academic, council officials, artists, urban planning experts, to name some of them.

References Ahmed, P.K. (1998), ‘‘Culture and climate of innovation’’, European Journal of Innovation Management, Vol. 1 No. 1. Amidon, D. (1993), ‘‘Knowledge innovation: the common language’’, Journal of Technology Studies, Fall. Amidon, D. (1996), Innovation Strategy for the Knowledge Economy, Butterworth-Heinemann, Boston, MA. Amidon, D. (2003), ‘‘The Entovation ‘ba’ and beyond!’’, available at: www.skyrme.com/updates/ u75_f3.htm Andraos, A., El-Samahy, P., Heyda, P., Lee, L., Long, C., Mendenhall, A., Meza, F., Tura, H.F. and Zellner, P. (2001), ‘‘How to build a city: Roman operating system’’, in Koolhaas, R., Boeri, S., Kwinter, S. and Tzi, N. (Eds), Mutations, ACTAR, Barcelona pp. 10-19. Barcelona (2003), ‘‘Culture, the motor of the knowledge city – strategic plan of the cultural sector of Barcelona’’, available at: www.bcn.es/accentcultura/angl/webang.doc Barcelona (2004), ‘‘Forum Barcelona 2004’’, available at: www.barcelona2004.org

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Borja, N. (1998), ‘‘La ciutat del futur i el futur de les ciutats’’, quoted in Figueras, P. (2004), ‘‘Educating cities’’, available at: www. www.bcn.es/edcities/aice Broanwefields Exchange (1999), ‘‘The nature of possibilities’’, available at: www.waterfronttrail.org/ graphics/whatnew/ibenatureofpossibility.pdf Brown, J.S. and Duguid, P. (2001), ‘‘Creativity vs. structure: a useful tension’’, Sloan Management Review, Vol 42 No. 4. Browning, G. (2002), ‘‘Ten ways to create an innovation culture’’, Management Today, London, p. 20. Cope, M. (1998), ‘‘The corporate inventor: how to foster Individual creativity and surface new ideas’’, Knowledge Management Review, Vol. 4. Dak, M. (2003), More Coffee? 500 years of Coffee Drinking Culture, Keter, Jerusalem. Davis, B. (2004). ‘‘Knowledge zones’’, available at: www.kikm.org Delft (2003), ‘‘Delft knowledge coty’’, available at: www.delft.nl/kennisstad/en/vervoer.html Dvir, R. (2003), ‘‘Innovation engines for knowledge cities’’, available at: www.knowledgeboard.com Dvir, R., Pasher, E. and Roth, N. (Eds) (2002), From Knowledge to Value: Unfolding the Innovation Cube, Tel Aviv. Edvinsson, L., Dvir, R., Roth, N. and Pasher, E. (2004), ‘‘Innovations - the new unit of analysis in the knowledge era’’, Intellectual Capital, in press. Edvinsson, L. (2002), Corporate Longitude, Pearson Education, Harlow. Ericsson (2004), ‘‘Ericsson Foresight’’, available at: www.ericsson.com/foresight/about_us.shtml Figueras, P. (2004), ‘‘Educating cities’’, available at: www.bcn.es/edcities/aice Gurteen (2004), ‘‘The knowledge city’’, available at: www.gurteen.com Hale, G.A. (1996), ‘‘Managing for innovation’’, R&D Innovator, Vol. 5 No. 10. Kelley, T. (200), The Art of Innovation, Currency Doubleday, New York, NY. Lakin, S. (2001), ‘‘BT’s approach to ideas management’’, Knowledge management Review, Vol 4 No. 1. Melbourne (2002), ‘‘City plan 2010", available at: www.melbourne.vic.gov.au/cityplan Naimen, L. (1998), ‘‘Fostering innovation in an IT world’’, Canadian Information Processing Society Journal, available at: www.nycfuture.org Nishida, K. (1970), An inquiry into the Good, trans. by Abe, M. and Ives, C. (Yale University Press, New Haven, CT, 1990); K. Nishida, Fundamental Problems of Philosophy: The world of Action and the Dialectical World (Sophia University, Tokyo, 1970). Nonaka, I. and Konno, N. (1998), ‘‘The concept of ‘ba’: building a foundation for knowledge creation’’. California Management Review, Vol. 40 No. 3, pp. 40-54. Pinchot, G. and Pellman, R. (1999), Intrapreneuring in Action, Berrett Koehler, San Francisco, CA, pp. 105-43. Por, G. (2001), ‘‘Introduction to knowledge ecology’’, available at: www.knowledgecology.com Ruggles, R. and Ross, L. (1997), ‘‘Knowledge management and innovation: an initial exploration’’, working paper, Ernst & Young. Schwartz (2001), ‘‘City of knowledge’’, available at: www.cidade.usp.br/english/ Sola-Morales, I. (1997), Present and Future – Architecture in Cities, ACTAR, Barcelona. Stewart, A. (2001), ‘‘The conversing company – its power, culture and potential’’, presented at the 1st World Conference of Systematic Management, Vienna, May, available at: www.knowledgevboard.com Towell, J. and Towell, E. (2001), ‘‘Virtual scientific collaboration and Nonaka’s ba’’, Proceedings of the 34th Hawaii International Conference on System Sciences. Ward, A. (1999), ‘‘Work ecology – the next step in the evolution of the high performance enterprise’’, available at: www.wrokfroniters.com/cybrary.html Ward, V. (1999), ‘‘Victoria Ward asks: can the design of physical space influence collaboration?’’, Knowledge Management Review, Vol. 10.

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Capital cities: a taxonomy of capital accounts for knowledge cities Francisco J. Carrillo

Francisco Javier Carrillo is Chairman of the World Capital Institute, and Director of the Center for Knowledge Systems at Tecnolo´gico de Monterrey, Me´xico ([email protected]).

Abstract Aims to outline a theoretical and methodological framework for the understanding, design, assessment and benchmarking of knowledge cities (KCs) based on social knowledge capital accounts as common ground for interdisciplinary work between KM and the established field of urban studies and planning. The evolution of urban regions throughout history is analyzed from the perspective of value systems. Under this perspective, the basic configuration of human urban settlements is seen to evolve as the forms of production of social value have done. Alternative concepts of KCs are then discussed, allowing the distinction of three stages of development. Based on this distinction, some critical levels of KC analysis as well as some specific dimensions of urban capital are identified. The requirements for a formal structure of KC capital system are then established as a criterion to identify and value the knowledge accounts of urban regions, specifically in the form of KBD indicators. A taxonomy of capital accounts for KCs – the core part of this work – is introduced and main categories described. Based on these capital accounts, the future of cities is perceived as carrying some critical discontinuities in developmental dynamics. Specifically some breaking points which seem to be implicit and embrionic in any third-stage KC are discussed. KBD emerges as a disruptive approach that may contribute to overcome the exhaustion of the industrial city and therefore the inertial carry over of its decadence into the future and potentially leapfrog urban regions into the next-level of communitary value systems. Keywords Knowledge management, Urban areas, Economic planning

Rethinking cities as evolutionary value systems The urban experience ‘‘An inhabited place of greater size, population, or importance than a town or village’’ is the Merriam-Webster Dictionary entry for ‘‘city’’. Most definitions, unless referring to very particular usages (e.g. The City as London’s financial district), convey the concept of a status granted to a relatively permanent, organized human settlement. The Chambers Dictionary includes as a definition the following: ‘‘. . . in various countries, a municipality of higher rank, variously defined . . .’’. Thus, a generic concept of city can be synthesized as a self-governed human settlement that has been granted a special status by virtue of its relative size, population, merits or strategic importance. In short, a city is a relatively permanent human settlement of relatively high importance. The latest concept comes close to the idea of an urban region, a permanent and important human settlement that is not formally designated as a city, but that is functionally equivalent.

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DOI 10.1108/13673270410558738

Conurbated regions, sections of large metropolis, suburban areas, even highly urbanized rural or industrial areas that are home to relatively large and established communities are all equivalent to average small cities (say, between 100,000 and 1,000,000 inhabitants) and aggregate into medium and large agglomerations with populations of up to 30,000,000[1]. For the purpose of this paper, all such human settlements are equivalent to cities insofar as they provide fundamentally an urban experience to its inhabitants. The telescopic nature of evolution Such urban human experience constitutes a rather recent phenomenon in terms of human history. Nomadic tribes of hunters and gatherers account for a half million years as a dominant form of human society, from the appearance of Homo sapiens sapiens 40,000 years ago to the development of the first Neolithic villages about 10,000 years ago and then the foundation of the first urban settlements on the Sumerian coast and along the Indus Valley about 3,500 BC (Morris, 1967). This covers about 75 percent of all human history, while both urban agricultural and urban industrial societies together account for the remaining 25 percent. During these last 5,500 years, agricultural societies became increasingly dominant, while nomadic civilizations progressively vanished, and today only a few sporadic forms remain. Urbanization experienced a great leap during the Industrial Revolution, the last 200 years account for only about 0.5 percent of human existence on Earth. Massive urbanization took hold in most countries throughout the 20th century. It is only with the advent of the 21st century that for the first time in human history over half of the world’s population is becoming a city resident. The urbanization of human experience is, as a dominant phenomenon, a reality of the new millennium. Hence, the definite urbanization of human experience is taking place about 5,000 years after the appearance of the first cities, which in turn developed about 35,000 years after our species emerged and 500,000 years after the appearance of the first hominids. This ‘‘telescopic nature[2]’’ of evolution will prove helpful in understanding the implications of a knowledgebased development (KBD) perspective on the current developmental perspectives of cities. Such an accelerated nature of evolution, where subsequent stages take shorter and shorter periods of time to complete, is exemplified in Figure 1, where four consecutive segments of evolution – astronomic, biological, human and urban – are depicted. The acceleration of evolutionary change can also be seen from the perspective of Sagan’s ‘‘cosmic calendar’’ (Figure 2) and of Nierenberg’s ‘‘Earth’s history clock’’ (Figure 3). Sagan divides the estimated 15 billion years since the origin of the Universe into an imaginary 12-month calendar. If the ‘‘big bang’’ happened on the 1st second of January the 1st, then the first cities appeared in the last minute of December 31st, at 23:59:35 (i.e. 5,500 years ago). Nierenberg does something similar, dividing the estimated 4,600 years since the origin of the Earth into the 12 hours of a clock’s face. In both imaginary exercises the diminute scale of human civilizations, and within these, of modern industrial societies, is equally overwhelming. The powerful pattern that consistently emerges from these scales suggests we might be at the threshold of a novel evolutionary cycle. It also raises the question whether the present configuration, organization and life style of most urban centers might be more an inheritance of tribal, hierarchical and material-production patterns than an urban design and culture fit for the knowledge-based society (Graham, 2002). This idea is explored further towards the end of this paper. The raison d’etre for the concept of KC is that the space of possibilities for urban development goes far beyond the provision of better housing and transportation or ‘‘businessas-usual urbanism’’. The concept of KC may continue to shed new light on urban studies and planning (USP), even in avant-gard forms of new urban studies and post-urbanism. Cities as capital systems The understanding of human organizations – whether a tribe, a country, or a contemporary company – primarily as productive entities is fundamental to KBD. Production here denotes the generation of any form of collective value: a function in which there is a positive difference between total input value and total output value. Value denotes all objects of preference – either tangible or intangible – for a given community, such as material, artistic or relational. Hence, production as the basis of social organization refers to activities which increase social value.

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Figure 1 Astronomic, biological, anthropoid, human and urban time scopes

From that perspective, all forms of human organization throughout history constitute value collectives or human value systems insofar as they intend to provide the best possible balance of total value for willingly participating individuals. Value-balance tends to evolve from a focus on the most fundamental means for survival and welfare, to an increasing array of desired intangibles, such as education, culture and other forms of human development. This does not necessarily involve a linear progression, for discontinuities, regressions and leapfrogging may occur. Hence, the key factor that makes a city exist is neither size nor importance, nor any other parameter on the basis of which a particular human settlement is commonly distinguished above others. Rather, it is the fact that a significant community of people organize their lives around a recognizable value system and decide to settle down and stay together. Given the current transition from industrial to knowledge-based production, cities as value collectives are becoming increasingly knowledge-based. Hence, for the purpose of this analysis, contemporary cities are regarded as emerging knowledge-based value systems (Carrillo, 1998). Such value systems will continue to sustain their cohesive faculty (i.e. will continue to exist as cities) insofar as the balance of collective value is positive. Conversely, constituent units such as families, companies or colonies will decide to move to, stay in or abandon a particular city according to their particular value balance relative to perceived alternatives. Nomadic civilizations also involved a trade-off in pre-urban history, where integration to nature, agility

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Figure 2 Cosmic calendar (after Sagan, 1989)

Figure 3 The Earth’s history clock

‘‘The colosal time span over which geological processes operate is emphasized if one compresses the 4,600 million years of earth history into 12 hours on a clock face. The first 2 hours 52 minutes are obscure. The earliest rocks occur at about 02.52 hours but the planet remains a lifeless desert until 04.20, when bacterial and algal organisms appear. Aeons of time drag by until just after 10.30 when there is a explosion of inbertebrate life in the seas. Dinosaurs wander the land at 11.25 only to be replaced by birds and mammals 25 minutes later. Hominids arrive about half a minute before noon. The last tenth of a second covers the history of civilization’’ (Hierenberg, 1980)

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and a sense of belonging ranked high at a cost of comfort, permanence, possession and individuality. A trade-off that is being revisited today. Whereas the individual value perspective is fundamental for the understanding of KBD phenomena such as the attractiveness of knowledge talent[3], the present analysis focuses on the aggregate or collective value system of a city: the universe of value categories shared by most citizens. While major physical assets, which have so far been the central focus of urban planning continue to receive attention, special emphasis is placed on the intangible capital – or knowledge commons – of cities. Both types of assets become integrated into a single value structure. Such a consolidated value structure - including all significant forms of social value – is referred to as a city’s ‘‘capital system’’ (Carrillo, 2002). Evolution of production systems In the construction of a well-defined capital system – whether for a company, a government office, an NGO or a city – it becomes necessary to look at the generic array of value elements that are required to sustain the production function. Simplified to the irreducible form of an input/process/output system, all production systems consist of: (1) an input capital that is the given value base with which the system begins to operate (in the case of cities, the set of favorable circumstances that led to the foundation of a city: water supply, orography, climate, etc.); two process capitals: (2) the agent capital which performs production (in the case of contemporary cities, basically its functional population) and (3) the instrumental capital, which constitutes all the means of production (in the case of cities, most of the traditional objects of urban planning such as layout, water supply and sewage, etc.); finally, some form of value exists as (4) product capital (surplus yield from primitive farming was a critical condition for the transition from nomadic to urban societies). To sum up, all value-creation systems include an input capital, process capitals (agent capital plus instrumental capital) and an output capital. Hence, all human societies can be described as production systems. All operate on the basis of an input, an agent, an instrument and a product capital. Table I illustrates how different societal forms include these elementary forms of capital. Subsequent types of production are arranged in two major eras: the physical-based production era (all types existing from the first civilizations to the industrial societies) and the knowledge-based production era (starting now). For each of the major production systems there were distinctive forms of division of labor, political organization, social control, technological development, artistic expression, knowledge

Table I Dominant factors of major production systems

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codification and transmission, and overall cultural integration. These generic structural elements interacted with other space- and time-specific variables such as historical conditions, military and political dominance, ethnic and linguistic blending, trade routes, regional cultural environment, natural and man-induced catastrophes, ideological movements, etc. that contributed to generate and shape the particular value blend giving each city its unique character (Graham, 2002). Cities are thus evolving entities, both as production systems and as varying arrays of cultural, political and economic capital systems obtaining a positive value balance as collectives and offering individual citizens a positive trade off. The focus on production systems as a foundation element accounts for the typology of cities across history, geography and cultures.

Defining knowledge cities Current KC concepts Knowledge cities (KCs) are creations of the new millennium. Even if references to KCs can be traced back to about a decade ago (Ryser, 1994; Knight, 1995) and even if some ancestral cities as well as some newer ones have by origin a strong association with knowledge and wisdom, was only at the down of the 21st century that cities round the world started giving increasing attention to KBD (see contribution by Gonza´lez et al. in this issue). Since current programs deliberately construed as KCs are still in the planning or in early stages of implementation, few best practices can be recognized yet. There is little in terms of development and assessment frameworks for KCs and therefore little consensus as to what the design requirements, the development parameters and the very concept of KC may be. With regard to KCs, we are at what Thomas Kuhn would refer to as a pre-paradigmatic stage. The intention of this article is to provide a generic framework for designing, implementing and assessing KC programs. Figure 4 shows some of the terms that have been used to characterize different forms of KBD or demi-KBD as applied to different developmental demarcations. Most combinations can be found in practice. Besides these combinations, there are also some integrated terms such as ‘‘Ideopolis’’, ‘‘Brainport’’, ‘‘Technopole’’ and ‘‘Ba’’. Also, the concepts of ‘‘cross-city’’ (a greater metropolitan area conglomerate) and ‘‘meta-city’’ (several meanings); as well as several knowledge demarcations (‘‘K-x’’), such as ‘‘K-twin cities’’, ‘‘K-conurbation’’, and ‘‘K-alliance/ network’’ (local, interregional, international, global). The KC concept admits all associated

Figure 4 A combination of KC labels

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denominations, since all relevant KBD conglomerates are urbanized regions and therefore, all – unless larger and, hence, containing more than one urban region, such as a country or a continent – can be reasonably described as knowledge-urban regions and ultimately, as KCs. The amount and diversity of KC concepts – most of them rather improvised – can be arranged in three groups or stages, depending on how close they come to the concept of KBD. All can be sorted in terms of the explicit or underlying concepts of ‘‘knowledge’’ and ‘‘development’’ on which they are based and, therefore, the KBD concept they sustain. Table II shows the generic characteristics of KCs in these stages. While all three can generate social value, stage III does represent the distinctive potential and full KBD perspective of social capital systems and therefore the ultimate concept of KC. The contribution by Gonza´lez et al. (in this issue) provides examples of current programs which, according to available information, can be categorized under stages I, II or III. Since the development of social capital attainable through stages I and II can be subsumed under stage III, the rest of this article will concentrate on the latter and regard it as a synonym of KBD. Hence, when referring to KCs, the unit of analysis is the city in the broadest sense described earlier and stage III KBD, becomes the framework of analysis. Therefore, a KC can be defined as a permanent settlement of relatively higher rank in which the citizenship undertakes a deliberate, systematic attempt to identify and develop its capital system in a balanced, sustainable manner. All other initiatives, such as technoparks and e-programs can, from this perspective, be regarded as stage I and II KBD programs, eventually leading to a full KC initiative (stage III KBD).

K-cities levels of analysis From a KBD perspective, deploying a KC strategy consists primarily of: (1) making explicit the value system to which a city responds; (2) identifying the critical dimensions of such a system in everyday life; and (3) converting such dimensions into an operational system of indicators and policy-making. The city capital accounts thus become the central instrument for strategy formulation, policy implementation and overall accountability. If all theories are value-laden, development frameworks carry a substantial load of tacit and implicit values. Not only every development framework needs to be clear about the axiological

Table II Three KBD stages

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human societies can be described as production ‘‘ All systems. ’’ bases on which it stands, but in addition each methodological decision should state the preference system on which it rests. Therefore, making the value system of a city explicit is not enough for the construction of its system of capitals. Each external assessment must also be able to identify the value coordinates to which a particular city responds. Benchmarks and comparative analyses should take into account the specific developmental conditions of a given city. Some of these levels of analysis include: J Age and history. The age of some cities runs in millennia, while others are barely a century old. Experiences accumulated in collective memory are a powerful determinant of a city’s possibilities, as is its layout. What was once a treasured factor, such as a strategic location for defense, may now be a liability and vice a versa. J Endogenesis versus exogenesis. Some cities have been built from within, responding mainly to internal forces, whereas others have been largely shaped by external forces, such as domination by foreign rule, immigration, etc. Although all contain a blend of both, it is important to understand where current value elements originated (Graham, 2002). J Critical incidents. Most cities have undergone a number of experiences which have left scars on their current configuration. Some have been totally destroyed by natural or maninduced action and re-founded, in some cases, several times. Others have experienced the superimposition of a new urban layer[4]. Still others have been occupied by an alien power, with the displacement of the original inhabitants or their submission by use of force. Others have been divided, sometimes into several quarters. Finally, some have been absorbed on and off by alternating nations or cultures, due to border redefinitions or political reconfigurations. Critical incidents have also been benign, such as economic booms, the merging on equal grounds or the peaceful assimilation of multiple ethnic and cultural streams. J Relative level of development. There are no a priori bases on which all cities can be compared or rated in terms of KBD. Even if consensus were built on the general applicability of a framework such as the one presented here, the relative weight of each capital can be established only with reference to the specific importance it has in a given city’s context. Nevertheless, it may be possible to achieve consensus on some basic standards, such as human rights, environmental protection, social cohesion, etc. in similar fashion to what has been happening at other levels of global organization. In any case, it becomes fundamental to make explicit the city’s own value system as the grounds for assessment and comparison. In this respect, not all capitals are given the same weight in terms of developmental perspectives in Addis Abeba as in Adelaide, in Ankara as in Antwerp, or in Bangkok as in Bogota. Comparisons are possible and meaningful, and in fact desirable, once the capital system of each city is established and clearly referenced to its distinctive value base.

Urban capital dimensions As mentioned before, capital systems are applicable to all forms of human organization. Having originated, as all KM did, in a business environment, it soon expanded from commercial enterprises to public management, international agencies and NGOs. In the case of commercial enterprises, each sector of the economy, industry and line of business has characteristic capital dimensions. Cities, too, have some capital dimensions of their own. Some of these dimensions derive from space and time coordinates. The main capital dimensions resulting in the present balance or ‘‘state of the city’’ seem to emerge at three historical moments: (1) those capitals which pre-existed the foundation of the city, mainly the natural settings determined by geographical position; (2) those capitals which are the product of human activity throughout history and have left a mark – whether physical, social, economic or

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cultural; and (3) those capitals which constitute the current fitness or evolutionary potential of that city, in terms of collective competencies for sustainability. These dimensions can be distributed as follows: J Natural capital j Geographic location j Longitude and latitude j Climate j Orography and Hidrography j Geology and Seismography j Accessibility j Natural surroundings J Artificial capital j Political demarcation I National and other encompassing authority I Structural and functional limits I Surrounding or closely related places, cultures, markets j People(s) I Ethnic diversity I Linguistic diversity I Demographic configuration I Socio-economic configuration I Labor force and immigration j Institutions I Government I Industry and Trade I Civil society j Culture I Age and history I Cultural heritage J Evolutionary capital j Referential capital I Identity I External intelligence j Binding capital I Internal cohesion I External relations j Immanence capital I Resilience I Adaptability One of the driving forces of the KM movement has been the need to identify and value knowledge capitals (also ‘‘intangible assets’’ or ‘‘intellectual capital’’) and to capitalize on them. At the organizational level, there has been multiple frameworks, mostly inductive exercises, to categorize knowledge capital dimensions and convert them into operational indicators. There are also several proposals of KC indicators. The contribution by Gonza´lez et al. (in this issue) tracks the most visible exercises and compiles them into a general list of KBD dimensions and indicators. That compilation provides an idea of what people have been looking at so far in terms of KC indicators but does not provide a comprehensive system of indicators, let alone a consistent one. Like any formal system, capital systems must aim to fulfill two fundamental criteria: completeness and consistency. The first requirement means that it covers all significant categories; the second, that the inclusion of one does not imply the exclusion of another. These two requirements also imply – unlike most existing knowledge capital indicator inventories – that the categories must be homogeneous, i.e. that all categories are generated from a well-defined set of dimensions. In particular, financial and material capitals must be included in the same universe of natural dimensions as all other social knowledge capitals.

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A taxonomy of capital accounts for knowledge cities A generic system of capitals (applicable to all human organizations) is proposed and discussed elsewhere, with particular reference to KBD (Carrillo, 2002)[5]. From that generic system, and considering the levels of analysis as well as the specific capital dimensions of cities discussed before, a general taxonomy of KC capitals can be constructed. Table III is a summary of such a KC capitals taxonomy, to which a more detailed disaggregation immediately follows. This disaggregation is by no means complete[6], but it aims at being generic at the upper levels of aggregation. Disaggregation of the generic KC capital system J Meta-capitals j Referential I Identity: clarity and differentiation I Intelligence: responsiveness to relevant external entities and events j Articulation I Relational: social integration and cohesion; equality and legality I Financial: financial states J Human j Individual base I Ethnic diversity I Health I Education and learning I Socio-economic j Collective base I Live culture(s) i Languages i Religions i Customs i Clothing i Food i Celebrations and rituals I Evolutive capacities i Diversity

Table III Basic categories of a generic KC capital system

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i Tolerance i Participation J Instrumental j Tangible I Geographic (given) i Longitude and latitude i Orography, hidrography, soil composition, tectonics i Climate, Natural Assets and Liabilities I Environmental i Air i Soil, vegetation i Water: sources and dependency i Ecological sustainability I Infrastructural i Landscaping i Underground infrastructure ? Pipelines r Water r Sewage r Gas r Oil ? Wiring r Electricity r Telephone r Wired telecoms i Urban structure ? Zoning, districts, neighborhoods ? Commons, parks, squares ? Streets and civil infrastructure r Highways, avenues, streets r Bridges, tunnels ? Traffic configuration i Extra-city transportation ? Roads ? Airports ? Docks ? Train and bus stations i Intra-city transportation ? Public transport networks r Underground r Urban train r Buses j Intangible or symbolic I Public institutions, systems and procedures i Authority appointment procedures i Government systems and procedures ? Legislative ? Executive ? Judiciary I Private institutions, systems and procedures i Commercial institutions i NGOs I Information platforms i Manual registration, processing, storing, retrieval and distribution systems ? Print media i Electronic registration, processing, storing, retrieval and distribution systems ? E-government

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? Electronic media I Memory contents i Physical ? Archaeological and historical sites and records ? Museums and collections ? Chronicles and archives ? Other physical repositories i Electronic databases ? Government databases ? Public services ? Other databases belonging to civic organizations As the system disaggregates further and further, it becomes more and more specific to a given city. Hence, these categories have general applicability only at the uppermost levels. It is each city’s privilege and responsibility to build its own distinctive capital system, a responsibility that may be facilitated but never delegated. The more endogenous and participative the exercise, the more meaningful the result. The process can certainly benefit from benchmarking and external sources. KC’s capital systems can be nourished from urban rights charters, such as those proposed by Borja (2003), and The European Charter of Rights on City Safeguards (SaintDenis, 2002; extracted by Fiori, in Borja, 2003).

Cities of the knowledge era The megacities prospect Graphic visualizations of future cities often depict a sort of technologically stylized projection of current cities. Huge skyscrapers, beehive-like human conglomerations, all connected by some gravity-defying transportation network. Massive and standardized as a general rule, but with life-patterns very similar to today’s[7]. Certainly, the demands on housing, jobs and services faced by many cities, given current trends in population growth, are enormous. Even if some regions have reached a stable population (balancing an ever-increasing life expectancy), migration and other phenomena exert a substantial strain on the size and density of cities. Until global population peaks, as hoped, by 2025 and the demographic curve has its subsequent impacts (elderly peak during the second half of the 21st century), this will be a critical consideration for most of the world’s regions. Still, forecasts for future cities tend to take for granted the continuity of the model of human life that became dominant by the end of the 20th century – the industrial capitalist model. Such a model implies, amongst other assumptions: (1) the individualization and private ownership of most material goods and services; (2) a hierarchical distribution of wealth and power; (3) the physical presence of individuals for the performance of most core activities, such as work, education and leisure; (4) a production pattern involving massive inputs, large production centers, massive outputs and consequently vast waste disposal, etc. From this perspective, cities can only become bigger and bigger, demanding increasingly greater inputs and generating growing outputs and waste[8]. The end prospect for any such approach is inevitable collapse, as cities surpass the manageable limits for superimposed growth. For many ancient cities and civilizations, such a limit was the inexorable depletion of natural resources within a radius close enough to balance access cost. For contemporary and future megacities the limits are not just physical and economic, but also the social, cultural and psychological limits to intolerable overcrowding, some of which may increase exponentially as size increases. Vulnerability to terrorism and epidemics, lack of social identity and cohesion, violence, intolerance and control, etc. all tend to increase with overcrowding. Urban life in a knowledge era Looking at the transition from a material-production era – encompassing all of prior human history – to a knowledge-production era (Figure 1), we become aware of a number of major changes that are bound to have an impact on the patterns of human activity and urban living. Some such changes, to be discussed subsequently, include:

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J dematerialization: a lesser volume of material inputs and outputs; J environmentalism: a greater concern with sustainability; J experience upgrade: the rise of the k-worker and the k-citizen; J virtuality: the capacity (virtus) to attain the same results without the conventional means (e.g. another space/time); J essentialism: the understanding and pursuit of ever more fundamental values. The trend towards the systematic reduction of material inputs is a current reality. Even if absolute demand is still growing and will continue to do so for some time, it is countered by strong forces stimulating de-materialization as the transition from industrial to knowledge-based production takes hold in most regions. Some of these forces are economic, such as the energy crises that started in the 1970s and the productivity pressures generated by the quality movement: both meant the production of more with less and the reduction of input waste and cost. Some are technological, such as new materials and nanotechnology. Some others are cultural and political, such as recycling and organic living. Some integrate all of these factors into public policy initiatives, such as the European Union’s ‘‘Factor X’’ movement, aiming at reducing material demands to 1/20th of 2000 levels by 2020 (Robe`rt et al., 2000). A greater concern and more effective actions for stopping irreparable damages to the biosphere by human action are evident. It is not clear whether all these efforts will be enough to prevent the global degradation of air, water and soil. Some damages, such as the extinction of countless species seem irreversible. Nonetheless, the environmentalist movement has taken hold worldwide and is gaining weight in the value systems of all nations, regions and cities committed to sustainable development and has been expressed in agendas for action such as the Kyoto Protocol (Newman and Kenworthy, 1999; Brown, 2001; Beatley, 2002; Schor and Taylor, 2003). A further trend associated with the emergence of knowledge societies is the growing demand for the knowledge worker, which has received increasing attention (Drucker, 1994; Florida, 2003). This phenomenon is paralleled by the less noticed emergence of the knowledge citizen, which refers to the profile of a city dweller who is distinctively better educated (not necessarily in academic terms), well-informed, participative, critical, and politically active; seeks a better quality of life; has healthier habits and is less dependent on consumption; gives more weight to artistic expression and cultural activities; is more diverse and tolerant; is more competent in human relations. At first, these may be just by-products of a form of production (knowledgeintensive jobs) which increasingly demand such values and competencies (intellectual as well as emotional). At a growing rate, these characteristics involve an experience upgrade, insofar as people seek to live more balanced and meaningful lives. Virtuality is another trend that is still little understood and anticipated, but that has already pervaded many social practices and is bound to gain ubiquity (Rheingold, 1994). The most immediate impact is the reduction in displacements made possible by the Internet and by wireless telecommunications. Not only work, but also schooling and shopping patterns are changing substantially. Some of the most distinctive features of the industrial city, such as commuting, suburban residence, central districts, and zoning in general are fading. Instead, distributed work and learning, e-services, empty office space, and zone reconversions are fast becoming commonplace. Yet, the most transcendental aspects of the virtual experience are only beginning to become manifest. In the foreseeable future, the most important aspects of the knowledge-urban experience will no longer require presence and simultaneity, and therefore the current patterns of transportation, scheduling, configuration, zoning and infrastructure[9]. Simultaneously, the privilege of human contact: concurrence in transportation and public space as the lifeblood of the city, would be managed no longer as inevitable chores, but as fulfilling options. The final trend is the growing preference of knowledge citizens for more fundamental aspects of their value scale. In the introduction, cities were reconceptualized as collective value systems. In subsequent sections the transition of cities as value structures throughout different material-

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based societies and into the knowledge-based society was observed. The evolution of the individual’s values as possibilities evolved, and was also recognized. Alongside those values, social configuration, practices and institutions also evolved, and with these the physiognomy of cities. Therefore, the fundamental transformation that knowledge cities bring as human preferences and activities are reallocated cannot be neglected. Contrary to the received view of megacities, a trend towards urban minimalism, revaluation of commons (greens and public spaces as well as knowledge commons) environmental care, minimal individual material possessions (obtaining experiences, rather than acquiring objects), can be envisaged (Landry, 2000). On the edge of the virtual and essentialist city, human experience transcends the original motivations for settling down, to become global and minimalist at a time. The ‘‘no-City’’[10] as an ideal becomes the most powerful vision for human communities in terms of the reexpression of the lost values of nomadic life in the context of the knowledge-intensive civilization. Unrelenting search, critical thinking, permanent discovery, detachment both from things and fixed ideas are the grounds for creativity and innovation. If a truly creative class is emerging, it should not fear these values. Transition patterns and breaking points The transition from industrial cities to KCs, like other major changes in urban history, will blend generic historical conditions with particular ones. For the first time in history, a number of factors such as those analyzed throughout this article are generic in nature and global in reach. Environmental, technological, commercial and financial realities have now a global dimension. But these realities are far from the homologation of civilizations and the entropy of history, certainly not the history of cities. Paradoxically, the downfall of globalism as an ideology is evident not only in the catastrophic results of financial homologation programs by the Bretton Woods institutions, but also in the resurgence of regionalisms and the revaluation of indigenous cultures (Saul, 2004). ‘‘Think globally, act locally’’ becomes a pertinent motto for knowledge citizens. If de-materialization is to be paralleled by the converse increase in knowledge-intensity of societies[11], it becomes clear that we are right at the transition point. De-materialization may continue until probably reaching a lower limit, while knowledge-intensification may continue in unexpected ways. Given that the emergence of the knowledge society is synchronous with the definite urbanization of humanity[12], KCs are becoming the scenario for possibly the most transcendental change in human evolution. Figure 5 describes a transition pattern from material-intensive civilizations (particularly the industrial capitalist society) to knowledgeintensive civilizations. The relative weight of both becomes inverted, with the crossing point happening about now. The shift of GDP base from mainly-industrial to mainly knowledge-based in an increasing number of countries after the Second World War and the very emergence of the concept of knowledge cities constitute indications of this trend. The concept of urban development evolves from economic growth (i.e. capital accumulation) to value balance (i.e. dynamic equilibrium of capitals). The emergence of KCs as a breaking point in human evolution has been argued throughout this article on the basis of a number of signs indicating the discontinuity of the current state of affairs. As a matter of fact, unless such emerging discontinuities are consummated, the very survival of life on Earth may be at risk. The emergence of de-materialization both as a disruption of industrial capitalist societies and as an driver towards KCs is fundamental for the understanding of the significance of the current evolutionary crossroads. Figure 6 depicts a hypothetical pattern on a nominal time scale by which forms of production and associated forms of civilization were triggered by critical events, given an appropriate context. As a new form of

cities are becoming the scenario for probably ‘‘ Knowledge the most substantial development in human evolution. ’’

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Figure 5 Transition from material-based to knowledge-based societies

Figure 6 A hypothetical pattern of change in production systems: some breaking points

collective life became dominant, new conditions prepared the ground for subsequent disruptions to take place. For far longer than the whole history of cities, the Neolithic village was a semi-permanent human settlement forced to move continually by the fast depletion of the soil. As agricultural techniques improved, a surplus agricultural yield meant several things: (1) an input (‘‘investment’’) capital was available to ‘‘finance’’ labor for building, crafts and services; (2) a technological capital allowed for cultivating land without depleting its nutrients and for carrying out irrigation; and (3) social bonds and rules of coexistence congregated early settlers into urban agricultural

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civilizations with written records starting about 3,500 BC and lasting through 1800 or 96.36 percent of urban history. On a grand scale, this pattern repeated itself several times in evershorter periods: the industrial urban society started only 200 years ago and is rapidly approaching its demise. The emergence of KCs might be starting another such cycle, but this time involving a qualitative difference: the transition from the material-based value system, to the knowledge-based, where intellectual, emotional and relational factors are as critical components as physical infrastructure and survival factors continue to be. The clear signs of transition towards knowledge-based societies starting at the end of the Second World War suggest the immediacy of a major qualitative change, much like other similar transitions: ‘‘The life of the hunter-gatherer, of moving with the seasons and living off a cycle of food sources, was first adopted by Homo erectus about 1 million years ago and it continued through the archaic Homo sapiens and the emergence of Homo sapiens sapiens, and down to the invention of agriculture only 10,000 years ago. Within 8,000 years at least half of the population had shifted to the new way of life. By 200 years ago, the self-sufficient hunters and gatherers had dwindled to less than 10 percent of the Earth’s population. The speed of transition is as dramatic as the nature of the change’’ (The Commonwealth Institute, 1985, p. 30). This syncopated pattern of change, with a slow beginning, fast acceleration and relatively sudden end, rather than suggesting the death of the city suggests a cycle of regenerations and necessary deaths, of subsequent life renewals much in the fashion of Kelly’s (1999) cycles of innovation. Cities exhibit such resilience and self-regenerating capacity: ‘‘Is the city dead? Now it is globalization that is killing it. Before there was the development of the metropolis, that emerged with the Industrial Revolution. And before that the baroque city, that expanded beyond the Medieval kingdom. Periodically, when historic change appears to accelerate and is perceptible in the expanding forms of urban development, the death of the city is decreed’’ (Borja, 2000, p. 23).

KBD as a disruptive paradigm Change in nature comes in different forms. There is evolutionary change with characteristic bifurcations. There are sudden leaps, exponential accelerations, and cyclical changes. There is also revolutionary, retrogressive and catastrophic change (Myers, 1990). Individuals, as well as societies, also experience change throughout their lifetimes in several, often disruptive, ways. Throughout this paper, the case has been made for the contribution of KM to urban planning and studies in terms of KBD and particularly the contribution of capital systems to the study, design, development and assessment of KCs. Yet, such a case would be somehow futile, if it fails to generate the sense of urgency and discontinuous change that leapfrogging into a level-III KC implies. UPS models have become increasingly receptive to the idea of holistic and sustainable development. A case for city-KBD holds insofar as KC frameworks leverage the evolution of cities to new realms. In other words, the case for KCs is as substantial as KBD proves to be a disruptive paradigm. During the course of this paper, several analytical dimensions of cities have been suggested as critical triggers in the transitions towards KCs. To conclude, two sources of tension built into cities as value systems and the possibility that these may be solved in the transition to KCs will be discussed. These are the animal/human and the individual/collective tensions. The animal/human tension refers to the apparent opposition between natural instinct and civilized rationality that permeates most human civilizations (Griffith, 2003). The need to enforce the rules of urban coexistence seem to have induced a polarization of the corporeal and the psychological, denigrating the first and idealizing the second. Western culture in particular, and hence westernized cities, carry the mortgage of the mind/body dichotomy and the subsequent alienation of mankind from nature. The received denial of the animal and natural bases of human life awaits a solution in a knowledge culture capable of accommodating all dimensions of human existence. Such solution, often contradicting the cannons of established moral and religion, are becoming increasingly well established on the basis of sociobiology and evolutionary psychology (Small, 1995; Wilson, 1998). Indeed, a capital system – and with it, KM

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and KMD – is meaningful only insofar as it is homogenous, and homogeneity is only attainable within a continuum perspective of the natural universe (Liedloff, 1985). A KC system of capitals encompasses all relevant dimensions of an urban experience. Therefore, a KC capital system should aim at integrating the physical with the cultural, the organic with the psychological, the emotional with the rational. The minimalist vision of future cities presented here may come close to recovering a balance with nature (both extra-city and intra-city) that not only existed in the pre-urban world, but that occurred in those middle-ground demi-cities that were (and to some extent still are) nomadic encampments on the one hand and the feudal-manorial blend of town and country on the other (some new urbanism and post-urbanism trends aim at recovering the local village in suburban areas, favoring pedestrian walks, ecological balance, integration with nature, open commons). As mentioned earlier, for any knowledge-based community the promise of the city (the attainment of its value-system) becomes ever more feasible as virtualization, essentialism and distributed patterns of life prevail. The second tension, the individual/collective, is not independent from the first. As primeval urban settlements responded to bare survival values such as defense and food, a physically strong and highly centralized leadership prevailed. During critical times, some as widespread and lasting as the lower Middle Ages, urban life meant the rendering of will to a lord in exchange for protection. The promise of the city, the values of a higher existence, were kept out of reach in an ethereal safe by the very same powers which managed production: ‘‘Social ethos and organization enforced submission to the common good of earthly survival and heavenly reward; the true city, civitas Dei, was not of this world[13]’’. The history of cities is largely the history of the emancipation of their citizens and the pursuit of self-regulation, the collective ownership of the ideal, the accountability of city management. Yet, the physiognomy of each city and the less visible configuration of its power structure have bequeathed to some extent the ethos of hierarchical power and differential rights. The emergence of the knowledge citizen is an opportunity to regain and leverage equal opportunities and self-determination for individuals. As citizens become better informed and more responsible, governments are bound to become more transparent and accountable. A KC’s capital system exhibits the declared values and associated responsibilities for each. A KC’s capital system is the true city in this world. The possible resolution of these tensions by the trends towards virtualization and minimalism, on the one hand, and by a more responsible role of knowledge citizens, on the other, can be catalyzed by the capital system. The capital system becomes an instrument for social responsibility and social accountability. Any city government truly committed to its residents should welcome the formulation of its own, distinctive capital system, as a means to build a consensus on the value structure that provides identity and cohesion to that community and focuses its developmental efforts. KCs are becoming the scenario for probably the most substantial development in human evolution. History, the history of the human species as a conscious creature, may be just about to start. We cannot help being seduced by the implications of recovering the collective dream and making it accountable to public knowledge: ‘‘We are all overwhelmed by a strange love, the secret love of future and its unknown face . . . The city overwhelms us with the terrible duty of hope’’ (Jorge Luis Borges)[14].

Notes 1. According to the City Population Web site www.citypopulation.de/World.html (updated 2004-05-01), there are now 421 agglomerations in the world with a population of 1 million or more and 24 with 10 million or more, lead by Tokio (33,850,000), Mexico City (22,000,000), Seoul (21,850,000) and New York (21,800,000). 2. Eamonn Healy used this concept and the resulting acceleration into the ‘‘neo-human’’, while interviewed in Richard Linklater’s film Waking Life (Fox Searchlight, 2002). Carl Sagan (1989) made an extensive didactic use of the idea.

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3. Much as in medieval cities, when lords competed to draw the most creative talent in war, medicine, arts, and entertainment (Servia´, 1995, p. 61), today’s cities are competing deliberately to attract the most qualified talent in knowledge-based business creation and development. 4. The first excavations of the Hissarlik hill by Schliemann in 1870 in search of the mythic Troy on the basis of the Homeric texts discovered not one but nine cities, superimposed in a vertical register of 3,000 years (Garnett, 1967). 5. The generic system of capitals taxonomy, including the original definitions and an explanation is available at: www.worldcapitalinstitute.com 6. A more detailed dissagregation and some actual cases are available at: www.knowledgecities.com 7. A recent educational TV series projects ‘‘megacities’’ as the paradigm towards which urban planning is evolving. 8. Californians throw away more than 5 million tons of food scraps each year (see www.ciwmb.ca.gov/ FoodWaste/). The implications of urban waste management are complex, with important international programs addressing this issue (see www.gdrc.org/uem/waste/waste.html and www.worldbank.org/ urban/solid_wm/swm_body.htm and also http://uwmrc.cjb.net/). 9. See Virtual Cities Resurce Center at: www.casa.ucl.ac.uk/vc/welcome.htm and www.rice.edu/ projects/RDA/programs/VirtualCity/ and also http://mappa.mundi.net/maps/maps_013/ 10. In the same sense as ‘‘no-banks’’ (i.e. alternative organizations providing financial services), ‘‘nobusiness’’ (e.g. ‘‘free’’ goods and services delivered by Internet with no apparent profit) and other instances have been named to designate functionally equivalent entities but lacking conventional features. 11. All societies have a knowledge base, but their relative weight is different. The knowledge society is that in which over 50 percent of production is based on processing of information rather than matter and energy. 12. This includes all knowledge-intensive communities, whether living or not in relatively large human urban conglomerates. Under the perspective of virtualization and essentialism, the once polarized experiences of rural and urban living would become increasingly alike. 13. ‘‘City’’, Encyclopaedia Britannica article, p. 4. 14. Quoted by Borja (2000), p. 351.

References Barnett, J. (2003), Redesigning Cities: Principles, Practice, Implementation, American Planning Association, USA. Beatley, T. (2002), Green Urbanism: Learning from European Cities, Island Press, Washington, DC. Borja, J. (2003), La Ciudad Conquistada, Alianza Editorial, Madrid. Brown, L.R. (2001), Eco-Economy: Building an Economy for the Earth, W.W. Norton & Company, New York, NY. Carrillo, F.J. (1998), ‘‘Managing knowledge-based value systems’’, Journal of Knowledge Management, Vol. 1 No. 4, p. 280-6. Carrillo, F.J. (2002), ‘‘Capital systems: implications for a global knowledge agenda’’, Journal of Knowledge Management, Vol. 6 No. 4, p. 379-99. Daniel, G. (2004), The First Civilizations: The Archaeology of their Origin, Phoenix Press, London. Daniels, P.W. and Bryson, J.R. (2002), ‘‘Manufacturing services and servicing manufacturing: knowledgebased cities and changing form of production’’, Urban Studies, Vol. 39 Nos. 5-6, pp. 977-91. Duany, A., Plater-Zyberk, E. and Speck, J. (2001), Suburban Nation: The Rise of Sprawl and the Decline of the American Dream, North Point Press, New York, NY. Drucker, P.F. (1994), Post-Capitalist Society, HarperBusiness, New York, NY. Florida, R. (2002), The Rise of the Creative Class: And How It’s Transforming Work, Leisure, Community and Everyday Life, Basic Books, New York, NY.

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Fodor, E. (Ed.) (2001), Better Not Bigger: How to Take Control of Urban Growth and Improve Your Community, New Society Publishers, British Columbia. Garnett, H. (1967), Treasures of Yesterday, Aldus Books, London. Graham, B. (2002), ‘‘Heritage as knowledge: capital or culture’’, Urban Studies, Vol. 39 Nos. 5-6, p. 100317. Griffith, J. (2003), A Species in Denial, FHA Publishing & Communications, Sidney. Higgleton, E. (Ed.) (1993), The Chambers Dictionary, Chambers Harrap Publishers, Edinburgh. Johnson, J.H. (2002), ‘‘A conceptual model for enhancing community competitiveness in the new economy’’, Urban Affairs Review, Vol. 37 No. 6, p. 763-79. Kelly, K. (1999), New Rules for the New Economy: 10 Radical Strategies for a Connected World, Penguin, USA. Knight, R.W. (1995), ‘‘Knowledge-based development: policy and planning implications for cities’’, Urban Studies, Vol. 32 No. 2, p. 225-60. Komninos, N. (2002), Intelligent Cities, Spon Press, London. Kunstler, J.H. (1998), Home from Nowhere: Remaking our Everyday World for the 21st. Century, Free Press, New York, NY. Landry, C. (2000), The Creative City: A Toolkit for Urban Innovators, Earthscan Publications, London. Lever, W.F. (2002), ‘‘Correlating the knowledge-base of cities with economic growth’’, Urban Studies, Vol. 39, Nos. 5-6, p. 859-70. Liedloff, J. (1985), The Continuum Concept: Allowing Human Nature to Work Successfully Addsion-Wesley, Reading, MA. Morris, A.E.J. (1996), History of Urban Form: Before the Industrial Revolution, 3rd edition, Addison-Wesley, Reading, MA. Myers, N. (1990), The Gaia Atlas of Future Worlds: Challenge and Opportunity in an Age of Change, Anchor Books, New York. Newman, P. and Kenworthy, J. (1999), Sustainability and Cities: Overcoming Automobile Dependence, Island Press, Washington, DC. Nierenberg, W.A. (1980), ‘‘The physical Earth’’, in Mitchell, J. (Ed.) The Joy of Knowledge, Guild Publishing, London. Rheingold, H. (1994), The Virtual Community: Homesteading on the Electronic Frontier, MIT Press, Boston, MA. Robe`rt, K., Holmberg, J. and Ulrich von Weizsa¨cke, E. (2000), ‘‘Factor X for subtle policy-making objectives, potentials and obstacles’’, GMI Report, Greeenleaf Publishing, Sweden. Ryser, J. (1994), The Future of European Capitals: Knowledge Based Development, Goethe, Germany. Saul, J.R. (2004), ‘‘The collapse of globalism’’, Harper’s, Vol. 308 No. 1846, March, pp. 33-43. Sagan, C. (1989), Cosmos, video series, Turner Home Entertainement, New York, NY. Servia´, M.J. (1995), Ası´ vivian en la Italia del Renacimiento, Anaya, Madrid. Schor, J. and Taylor, B. (Eds) (2003), Sustainable Planet: Solutions for the Twenty-first Century, Beacon Press, Boston, MA. Sim, L., Ong, S., Agarval, A., Parsa, A. and Keivani, R. (2003), ‘‘Singapore’s competitiveness as a global city: development strategy, institutions and business environment’’, Cities, Vol. 20 No. 2, pp. 115-27. Small, M. (1995), "Rethinking human nature (again)’’, Natural History, Vol. 104 No. 9, pp. 8-24. The Commonwealth Institute (1985) The Human History, The Commonwealth Institute, London. Wilson, E.O. (1998), ‘‘The biological basis of morality’’, The Atlantic Monthly, Vol. 281 No. 4, pp. 53-70. Wood, P. (2002), ‘‘Knowledge-intensive services and urban innovativeness’’, Urban Studies, Vol. 39 Nos. 5-6, pp. 993-1002.

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Developing futures: a knowledge-based capital for Manchester Blanca C. Garcia

Blanca C. Garcia is a 2nd year PhD research student at the Institute for Development Policy and Management (IDPM), in the Victoria University of Manchester, UK ([email protected] or [email protected]).

Abstract This piece of work reports on the initial findings of ongoing research conducted at the Victoria University of Manchester UK, aiming at categorizing the city-region’s different forms of knowledge capital. Using a global knowledge-based development (KBD) model as an instrument, information about recent urban regeneration and development experiences in its inner city and beyond have been collected, identified and analyzed. Such research is aiming to establish Manchester’s potential to become a knowledge city. In this aim, the current research paper will report first on a review of the theoretical background behind the concepts of the knowledge city (KC) and KBD, which have been the catalysts to a systematic account of facts and figures of urban regeneration developments within Manchester. The review will be followed by the narrative of KDB observations on the continuous flow of creation and renovation initiatives; with observations on outcomes that can be traced out through Manchester’s cumulated and diversified capital repositories and agents. Such flow is presented through the eyes of the different actors involved (authorities, researchers, and partnership organizations), whose voices are present in the diverse capital landmarks of the city. The global knowledgebased model used has served as a comprehensive framework for consistent, systematic gathering of primary data on capital systems for a deeply contextualized case study. It has facilitated powerful inter-relational capabilities for researchers’ insights on the city-region’s potential knowledge capital. It has also provided the platform for systematic identification of socio-economic issues beyond level one. In the case of Manchester, the model helped interrelating concerns about social inclusion, access, and skills for sustainable development. They were also re-positioned to their true dimensions as the KBD model has assisted research with the systematic identification of the (knowledge capital) roles that city-region actors (k-agents and k-repositories) are playing, and the solutions they are bringing to those concerns and beyond. Most of all, the KBD model facilitated multiple insights into how global challenges are finding local solutions. And Manchester’s case is undoubtedly filling a gap in the recent literature of knowledge cities. This contribution, amongst many others, is aiming to trigger further debate through a rainbow of contrasting points of view about what KBD has meant for the city-region of Manchester. It is also hoped that a renewed interest in capital systems research and its social policy implications in and about the city would be triggered as well. Keywords Social inclusion, Knowledge management, Development

Introduction The early 1990s saw a renewed attempt at remaking Manchester. A tidy city center, with boats on the River Irwell, fine restaurants and prosperous high street boutiques at the Exchange and

DOI 10.1108/13673270410558774

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1800 and 1850, Manchester’s population ‘‘ Between grew from 77,000 to 316,000 which made it a ‘Cottonopolis’. ’’ St Ann’s Squares were the european, knowledge dream city of some Mancunians (Mellor, 2002). A long history of unemployment, poor health, low educational skill levels, high crime and extensive environmental dereliction in the heart of the city and beyond were the daily reality for a lot more of them (Mellor, 2002; Robson, 2002). Local authorities were thus faced with an exceptionally difficult balancing act, as they undertook extensive regeneration projects in their hands (Dicken, 2002). Indeed, new millennium regional and national initiatives seem to be concentrating in the complex task of rescuing the huge British urban heritage of cities such as Manchester through national devolution and redevelopment plans. Wales and Scotland are seemingly not the only beneficiaries, as eight major English cities (Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield) are proposed as poles of a renewed nationwide development. For Manchester in particular, finding a ‘‘model’’ in order to build partnerships for infrastructure investment and re-shaping its labor market is making policy makers and scholars ask some poignant questions: What kind of role will/can Manchester play in the global system? Can the pioneer city of the first industrial revolution find development opportunities in this new (knowledge) one? (Dicken, 2002). In this context, the purpose of this paper is to observe such windows of opportunity and build a case study of the city-region of Manchester. The paper will present a knowledge-based development criteria and a value-system model to characterize the different knowledge capitals already in place within the city systems. Recent literature on the city’s progress is also presented, as well as the internal contradictions, trends and possibilities of the city-region emerging as the northern ‘‘Ideopolis’’ of UK under the capital systems framework. We will first review the theoretical background behind the concept of the knowledge city (KC) as a means to introduce a generic, integrative framework for capital systems analysis proposed by key authors in the field of knowledge-based development. Such framework will then be the platform to characterize the different levels of capital observed, through a virtual tour in the city and its different assets throughout the city-region, reporting the findings. In brief, this piece of work is committed to present an inventory of the different value capitals found in Manchester as seen by a knowledge agent living in the city, in close contact with knowledge repositories such as newspapers, research reports, other knowledge agents and varied knowledge events. Such agent is taking the opportunity to embark as any other knowledge citizen would do, on the risky adventure of finding the new identity of a place where ideas, vitality, creativity and diversity are increasingly becoming measurable (human) capitals of knowledge.

An integrative perspective In urban settings especially, the 1990s challenged our societies to become accurate information managers. As data flows escalated and multiplied, individuals, organizations and societies were compelled to make sense of information (and ideally, knowledge) in real time despite of geographical distance (Castells, 2000). Information flows also changed our concept of development. A frantic rush for golden strategies to process knowledge and enable learning accelerated most organizations, and not few societies. In such context, the notion of learning regions started to emerge as a framework for understanding development in a multidimensional, highly networked setting beyond city limits (Florida, 1995); along with other conceptual tools such as intellectual capital systems (Stewart, 1997), innovation clusters (Porter, 1995), global networks (World Bank, 2002), capacity building strategies (UNDP, 2002) and other related concepts. New knowledge-based development strategies affecting various levels of society were identified and adopted; benefiting from the heritage (and blend) of sound theoretical frameworks. The human capital theories drew heavily on the structuration (social reproduction)

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model coined by Giddens (1984). Those in turn influenced work-based, knowledge-sharing strategies for human resources development (Garavan et al., 2001). Simultaneously, the knowledge management theories drew on key theorists within the actor-network framework (Latour, 1987; Callon, 1991) making specific emphasis on electronic forms of knowledge storage and transmission, allowing innovation networks to flow (Heeks, 2001). The rich blend of theory and practice is finding new theoretical expressions such as the knowledge city (KC), a learning city driven by knowledge production (Work Foundation, 2002); or the Ideopolis (a city of ideas and inclusive communities), but allegedly, it is not exempt of a few drawbacks. Indeed, one of the most problematic practicalities of the knowledge-based models and KC proposals has been to operationalize the theoretical variables into measurable equivalences, or quantifiable units. The nature of knowledge, as an intangible asset, as a flow and a process, is imposing to knowledge-based development researchers an ‘‘epistemological shift from matter-centered to relation-centered knowledge’’ (Carrillo, 2002). Since knowledge consists of value-enhancing associations, knowledge management (KM) and KBD are ‘‘above all, a matter of relevance or value: representing and managing value systems’’ (Carrillo, 2002). Going from ‘‘physical’’ to ‘‘knowledge’’ capital benchmarking and analysis has been a laborious attempt of many entities already reporting some success stories and their corresponding failures: Skandia Navigator (Cheng et al., 2004), Balance Scorecards, Intangible Assets Monitor, KAM, e-readiness index etc. (Malhotra, 2003). Moreover, many local or regional authorities are actively seeking to develop their own, tailormade system to measure their (own) intangible capital. This is the case of Manchester, for which the drafts of a North West Regional Strategy indicated the vision and targets to be pursued in eight core points, as follows (AGMA, 2002).

Manchester : knowledge capital needs (1) Infrastructure – to create an epicenter, a regional knowledge environment; (2) Business development – to nurture and growth knowledge-led clusters; (3) Social inclusion – to utilize knowledge-rich organizations to deliver wealth, skills and jobs to deprived communities;; (4) Culture – to deliver a unique integrated urban cultural experience; (5) Academic – to increase the economic and social exploitation of higher and further education; (6) Connections – to achieve the maximum connectivity locally, nationally and internationally; (7) Image – to unify behind the ‘‘Knowledge capital: Manchester’’ brand as the symbol of the city-region vision for the next decade; and (8) Creatives – to create and retain knowledge entrepreneurs. But although Manchester’s and other regions’ policy-makers are attempting to measure national knowledge assets with ad hoc models, some knowledge-based development frameworks challenge theorists and practitioners to seek global significance in their measurements. According to some theorists, a global orientation in measurement would advance accurate achievements, by means of a complete, consistent, systematic and inclusive capital system (Carrillo, 2002) as shown in Table I. These aspirations of a global model are placing human and cultural capital in an integrative meaning of knowledge; as it is becoming progressively apparent for KBD scholars that ‘‘there is a convergence between the ‘sciences of development’ and the ‘sciences of knowledge’ as together, they refer to the whole domain of human experience and potential’’ (Carrillo, 2002). This model, as integrative as it seems suits our research purposes in identifying and characterizing the value system present in Manchester. Above all, this value system model allows a free analysis with a diverse and multiple description of the features of a KC and in that sense the benchmarking and analysis of value systems (Carrillo, 2002) becomes a unique adventure of discovery.

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Table I A generic cystem of capitals Family of k

Levels of KBD

Forms of capital

Object centered K

Instrumental capital management

ICTs

Agent centered K

Instrumental capital management Agent capital management

Education, self-managed learning, technology transfer, experience sharing

Context centered K

Instrumental capital management Agent capital management Alignment and strategic consolidation of capitals

Productive capital Investment capital Financial capital Relational capital Identity capital Intelligence capital Articulating capital Reference capital

Source: Carrillo (2002)

This is a framework completely immersed within context, where value-based background, history and capabilities play a major role. It will mirror the city’s historical antecedents and preexisting knowledge, as well as present knowledge capital, which in turn will enhance the city’s future potential for development. Such research approach will not only subscribe a sound contemporary KM model, but it will also honor the Manchester research traditions of model simulation in the realm of engineering sciences; and the oral history, personal narratives, and mass observation practices initiated in the 1930s in Bolton (to record local people’s experiences) in the realm of the social sciences. Following the actor-network principles, we will undertake a search for possible value system elements already existing in the city-region of Manchester, attempting an identification and a characterization of the findings, and opening a possibility for further measuring proposals. By using the basic elements in a Knowledge event, or k-event, we would like to propose a knowledge process where this researcher becomes a ‘‘knowledge agent’’ (k-agent) looking for k-objects (knowledge capital in its various forms), within the city of Manchester. In such context, this k-agent will take a virtual tour of the city in order to explore its present and near future possibilities of becoming a true knowledge capital in the North West.

A knowledge capital background Manchester was only incorporated as a town in 1838, being the industrial revolution the engine to bring rapid change to the city. Before that, few records remain about these ‘‘frontier people’’. Their integration to the feudal system was never properly established, and the well-known English ‘‘class-structure’’ never really thrived in these territories. Instead, all this seemed to give birth to an independent, resilient spirit that became a core value of the Mancunian identity (Worthington, 2002). Between 1800 and 1850, Manchester’s population grew from 77,000 to 316,000 which made it a ‘‘Cottonopolis’’, the leading UK northern center for commerce, industry and communications (University of Manchester, 2001a). Manchester also became the ‘‘shock city’’ (Briggs, 1963, quoted in Peck and Ward, 2002). A city where typical Victorian desire for self-improvement lived along side with the alienation of the well known ‘‘satanic mills’’ of the textile industry and the worst working class living conditions of its time (Desai, 2003). A shock city was an unusual birthplace to capital development, but historically, it has been indeed the singular context where ‘‘the process of globalization was unleashed, liberalizing trade’’ (Desai, 2003). Today, the city-region, also known as Greater Manchester, is a conurbation with a population over two and a half million people living within 12 miles (20 km) of the city center. It regroups the two cities of Manchester and Salford and the neighboring boroughs of Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford and Wigan. The city-region has a GDP of £18 billion,

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which makes it, in size and importance, second in UK after London, which is situated 183 miles (300 km) to the south west (MIDAS, 2004). A recent portrait of the city-region alleged that Manchester, ‘‘at one time synonymous with brutal, competitive capitalism, had been hit hard by the global challenges over the last 20 years’’ (Work Foundation, 2002, p. 14). Indeed, some of the city’s areas (East Manchester in particular) include the nation’s poorest and most disadvantaged areas (Pritchard, 1989). As a former center for traditional manufacturing industry, Manchester suffered particularly badly from the economic recessions of the 1970s and 1980s. It lost 60 percent of its employment base between 1975 and 1985. In some neighborhoods, large areas of idle, ex-industrial open space can still be seen as well as the effects of high levels of unemployment. Poverty, crime and the fear of crime, poor health, poor working skills, low educational levels and a lack of facilities are clearly the heritage of such recessions (Manchester City Council, 2004).

A knowledge agent in a knowledge city On the other hand, Manchester also seems to be the repository of a variety of knowledge capitals, including an impending university ‘‘super-campus’’ by October 2004. The city only explicitly adopted the KC development model after the 1990s regeneration plans were already started. In fact, the city’s regeneration authorities did not seem to have adopted a KC development model until the first North West regional strategy was launched in 1999 (SURF, 2003, p. 13). Seemingly, it has been only in the last three to five years that city authorities have actually ‘‘marketed’’ a new vocabulary and public image. It appears to be more comprehensive than the City Pride initiative started in 1996; and clearly subscribes to the knowledge city/ Ideopolis model of development for the city-region (Peck and Ward, 2002). In that aim, we have sought sponsorship[1] to lead a virtual tour around Manchester from a KC model point of view. In such tour, the evolution in the city’s mechanisms for delivering regeneration will be evident. The updated ‘‘Mancunian Way’’ (also a name for a motorway) for development is that of partnerships (Manchester City Council, 2004). From Hulme’s City Challenge in 1992, the main actors are local City Council authorities working with urban regeneration companies. They are sanctioned by central government and have now developed a ‘‘commercial ethos’’ that attracts private sector investors as partners in an ‘‘overall master plan’’. This is occasionally tempered by sensitivity to community priorities (Robson, 2002). The city center’s free ‘‘Metro-shuttle’’ buses No. 1 and No. 2 are such kind of partnership. The Manchester City Council and GMPTE (the Greater Manchester transport authority) are in partnership with First (a private sector transport supplier), Spinningfields (a major building project in the city center) and a city center (regeneration) management company. They provide the service to an average of 950 daily users, who need to link from train stations to bus stations during work hours (Manchester City Council, 2003). Our virtual tour will take place on the ‘‘Metro-shuttle’’ bus No. 2. It provides a hop-on, hop-off service, therefore allowing us to stop at ease. Although using real pick-up points, we will be stopping to visit atypical and timeless historical points, eight in total, where different value kcapitals have been identified. We will follow the KBD value capital model described earlier as global and inclusive capital system (Carrillo, 2002); (see Table II) as a point of reference. It has been argued that the 2000 Olympic bid ‘‘galvanized an emergent network of public and private sector elites’’ and united them behind the single, overarching objective of securing Manchester’s future (Peck and Ward, 2002). The bid failed, but instead, Manchester became the proud host site of the Commonwealth Games held in the city-region in the Summer of 2002. The games became a regeneration spearhead for intense re-development, and a focal point for policy strategy (Robson, 2002). As we fly over the Manchester moments before landing, we can observe the investment (input) capital already made in the city for sports purposes. The £250m construction of the City of Manchester Stadium and the Sportcity complex constitute the major and most recent regeneration project undertaken by New East Manchester. This needy area is one of the poverty belts surrounding the city center with most dramatic and acute puzzles for ongoing development in the city-region (Pritchard, 1989).

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Table II A Mancunian system of capitals Family of K

Forms of capital 1

Capital systems in Manchester 2

Object centered K

ICTs

An incipient network is under construction for social purposes. Corporations and universities seem to be ahead of the game

Agent centered K

Education, self-managed learning, technology transfer, experience sharing

A wider skills base and education infrastructure. A diverse population. Some sectors with notorious resistances to learn and adapt

Context centered K

Productive capital Investment capital

Emerging track record of technology transfer and innovation. Improved and improving transport infrastructure (air, road, rail, metrolink). A major international airport with good surrounding rail and road connections

Context centred K

Financial capital Relational capital Identity capital Intelligence capital

Massive higher education resource. Four world-class universities with research centers and strong links to business and industry – Europe’s largest ‘‘super-campus’’. A large and talented workforce of young and creative people – 80,000 students. Liveability: attractive spaces; a thriving creative and cultural life; an architectural heritage. An entrepreneurial culture, cooperativism, rich in ideas

Context centered K

Articulating capital Reference capital

Bold city leadership and a reputation for delivering world-class regeneration initiatives. Planning opportunity. Good sources of capital. Bold partnerships and especially city leadership with a reputation for world-class regeneration initiatives. Strong economic clusters in existing and emerging sectors

Sources: 1Carrillo (2002); 2Association of Greater Manchester Authorities, AGMA (2002)

As we land, we also note the £400m investment in the Manchester Airport, for additional terminals and a second runaway that will increase passenger numbers to 39 million by 2015. It is the second largest regional airfreight facility, with 117 tone capacity (Work Foundation, 2002).

The virtual tour Shortly after, we take the train heading to Blackpool, which will take us to the heart of the student area in Oxford Road Station, in the city center. Over £750m has been invested for office, retail and leisure facilities in some areas of the center (MIDAS, 2004). As we approach our destination, we witness the ‘‘MIDAS touch’’ in Piccadilly Station, which also had a complete face-lift, changing the image of the city in preparation for the Commonwealth Games (Peck and Ward, 2002). At this time, we will continue our virtual tour of the city on Route 2 metro-shuttle. As we will soon see, Manchester’s sources of capital make the city a very contrasting conurbation. Compared by some to a ‘‘third-world city’’ (Clark, 2000 in Mellor, 2002), its bright new developments are adjacent to old urban challenges. The carcass of sordid, dark buildings in deprived areas are lined up in silence alongside with illuminated wall-size windows and luxurious recently-built structures. The latter justify the presence of numerous lifters and cranes (the ‘‘crane index’’) in the Manchester’s thriving horizon (Peck and Ward, 2003). Pick up point 1: Investment (input) capital – the Oxford Road train station It has been argued that the predominant global pattern is one of complex cross-investment between industrialized countries (Dicken, 2002). But regardless of its original source (mainly, central government and European funding), as we move along the virtual tour it is becoming apparent that Manchester’s investment capital is one of its strong points as a knowledge city. At this pick up point, plans are already made to redevelop Oxford Road into ‘‘Manchester’s Broadway’’, by enhancing existing cultural venues including the Corner House, (a Bohemian coffee bar surrounded with alternative cinema), theatre venues and concert halls (Manchester City Council, 2003). By the time we get to Whitworth Street, we can start realizing the realities of Mancunian investment capital in the South Gateway project, a notorious re-development project aiming to

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create a seamless link to the retail and commercial core of the Manchester city center with the rest of the central areas (Work Foundation, 2002). The ‘‘Conference Quarter’’ as it has been recently renamed, includes G-Mex Center (opened in 1986), built on the shell of the old Central Station by an earlier development project. It also includes the high-profile Bridgewater Concert Hall, house of the Mancunian Halle´ musical tradition (Kennedy, 1960) and a sumptuous product of the Urban Development Corporation established in 1988 (Robson, 2002). The same corporation also undertook the extensive refurbishment of warehouses in the Castlefield area (towards the west from where we are); now boasting first class neighborhoods for high standard lifestyles (Robson, 2002). Neighboring the Castlefield area, towards the south west of where we are, it will be important to mention, as observers of the investment capital in the city, Hulme’s major City Challenge project. Aiming to re-connect communities that had been dislocated by waves of job loss in previous decades, the project addressed decay, unemployment and crime (Work Foundation, 2002). Infrastructure regeneration in the order of £35m for the original Hulme project were followed up by additional $24m for enhancement in the local quality of life and community capacity building of the area, that would include neighboring Moss Side (with a darker reputation than Hulme). An estimated total of £400m worth public and private investments have gone into the two areas since 1997 (SURF, 2002). The Manchester authorities seemed to succeed with a remarkable community recovery, now saluted by many as one with major outcomes amongst world-class regeneration projects (Robson, 2002; Work Foundation, 2002). But also heavily criticized for the lack of protection to local SMEs and the incursion of private sector firms in such regeneration projects, like the Asda (Walmart) supermarkets (Mellor, 2002). This particular partnership strategy intended to lock-in local spending and to build local community capacity in regenerated areas (Work Foundation, 2002:10) aiming for long term sustainability. Pick up point 2: (Reference capital) Intelligence capital – the Museum of Science and Industry We turned right and are now at the beginning of Deansgate Avenue; and will soon stop at the oldest passenger railway building complex in the world. It now houses the Manchester Museum of Science and Industry, which contains most of the historical artifacts that tell the story of this world’s first industrial city, and its capital-generating intelligence. Intelligence capital can be seen as competences, networks and values; or as brands, patents, processes, structures and concepts (Chen et al., 2004). In over 200 years of modern history, Manchester seems to have both. Its undeniable first place in the industrial revolution gives it the brands, and the presence in Trafford Park of industry firms such as Ciba Geigy, Bayer, BASF, Phillips, Siemens and the like, gives it the competences. Surprisingly, in terms of partnerships and networking, it is argued that universities have played a less relevant role in this mode of intelligence capital (Robson, 2002), as a high degree of resistance to transact has allegedly been found amidst Mancunian academics, researchers and innovators. This has been the case of the computer, which was invented by Manchester engineers but ‘‘commercialized’’ by entrepreneurs overseas. However, a quantity of the city’s intelligence capital is being facilitated to younger generations with science-based businesses, (MANCAT) to be completed in 2008; and the e-Science North West Center, managing a portfolio of e-science projects and Grid technologies in the North West region (ESNW, 2004). Indeed, Manchester shows a privileged geographical epicenter in terms of higher education, not only because it boasts four ranked universities, with student numbers in the lines of 86,435 (MIDAS, 2004; University of Manchester, 2001). It is estimated that the four institutions contribute with over £500m to the local economy, and its intelligence capital is yet to be measured. Most importantly, Manchester has one of the KC key prerequisites: a biotechnology and bioscience base. This is possible through a partnership between Manchester Victoria University, the Welcome Trust, the Office of Science and Technology and the Higher Education Funding Council for England. This has triggered the construction of the Integrative Center for

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actors in the city of Manchester are engaged in ‘‘ Key challenging the city’s old ambitions and identity. ’’ Molecular Cell Biology (ICMCB) within the School of Biological Sciences premises. This project has a potential of 31 research groups coming to work in areas such as cell biology and genomics, ‘‘exploring the understanding and treatment of life-threatening diseases in the future’’ (University of Manchester, 2002). In terms of technology transfer, a form of relational capital is discussed in pick-up point eight. Pick up point 3: (Articulating capital) Financial capital – Spinningfields The virtual tour continues on Deansgate Avenue, and soon we will see on our left a site under construction. Due for completion in 2008, Manchester’s Spinningfields business complex is planned to be one of Europe’s largest city center commercial developments, with 122,780 m2 in office space, plus two new hotels, riverside apartments, restaurants, shops and banks. The Royal Bank of Scotland is thought to be relocating 4,000 of its employees in this facility (MIDAS, 2004). In terms of financial capital, the sector indicators state a growth from £1.3bn of lending in 1991 to over £7.4bn as of September 2002, which could still be higher for the present year (MIDAS, 2004). The city’s financial capital health has been arguably paralleled to that its investment capital: the flow of incoming sources to fund development are far from collapsing (Deakin, 2002). Pick up point 4: (Reference capital) Identity capital – John Rylands Library This stop leads us to ‘‘Unlock the Rylands’’, which is the name of the project that has been awarded £8.19m by the Heritage Lottery Fund for extensive redevelopment and refurbishment of this gothic historic building of the John Rylands Library (JRL) on Deansgate, housing historically relevant religious books (University of Manchester, 2001). Mancunians have indeed inherited the non-conformist church worldview that has imprinted in them values such as an individual sense of identity, equality of opportunity, tolerance, the desire for individual and intellectual self-development and independence (Worthington, 2002). Such values are present in documents, buildings, urban manners and traditions. This kind of capital is also present in the 19th century Manchester Art Gallery that re-opened in 2002 (after a £35m extension), as well as the impressive £30m glass Urbis new city museum, aiming to be a symbol of the new (KC) Manchester. Also the £94m Lowry Arts complex and the Imperial War Museum North in Salford Quays have been opened in recent years (Worthington, 2002). For Mancunians, an important piece of identity is the ‘‘brass band’’ movement, particularly strong in the North of England, (Herbert, 1991; Hailstone, 1987), and a trademark of the creative working classes in the Manchester of the 19th century. Pick up point 5: Product capital – Marks & Spencer As we turn on the right from Deansgate, we find Market Street and the shopping quarter, with eye-catching shopping windows. The notion of product capital is used here as an ‘‘output’’ form of capital, such as retail, and traditionally, this is the street where trade and retail transactions are made since the foundation of the city. All the notorious retail names can be found on this high street market, such as (the now ailing) Marks & Spencer. But June 1996 carried a distressing, brutal halt in the city’s commercial activities. The old building of M&S was badly damaged – as well as the city’s ‘‘heart’’– by an IRA bomb explosion. As the Mancunian resilience arose with a ‘‘They went for the heart of Manchester. But missed the soul’’ (Manchester Evening News, in Peck and Ward, 2002), a massive £85m for a building replacement was seen as a vote of confidence in the city’s future (Worthington, 2002). By June 2000 the on going expansion and redevelopment of the city center rapidly increased the proportion of retail spaces available in Manchester. Since then it has included the opening of brand stores (Selfridges, Harvey Nichols) and a variety of shops and boutiques (Work Foundation, 2002, p. 19). It has also implied the raid of the city’s poor from those commercial areas (Mellor, 2002).

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Pick up point 6: Agent capital – Corporation Street, Co-Op Group From the corner of Market Street and Cross Street, we make a left turn and are now on Corporation Street. Landmarks such as the Triangle shopping center, Urbis or Victoria Train Station will be soon seen on the left. On the right, stand the Printworks, (a leisure complex), and the New Century House complex housing the national headquarters of the Co-Operative Group. They represent the stronghold of the Co-Operative movement, and the best example of agent capital – Manchester’s human resources traditions and skills. Amid the complex, in front of the Co-Operative Bank, there is a modern statue of Robert Owen. He is regarded as the founder of the co-operative movement that started in Rochdale (North Manchester) in 1844. Through its ‘‘scientific socialism’’ theories, he fostered textile workers’ initiative to buy, own and run the first Co-operative Wholesale shop. This way, they put and end to the exploitation and unfair trade (high prices for adulterated food) of unscrupulous shopkeepers (Worthington, 2002). The Co-Op is the second largest employer in the city, only after Co-Operative Insurance Services Group (CIS), with over 64,000 employees nation-wide. In fact, out of a population of 2.5m, the workforce in the Manchester city-region is of 1.2 million, with a GDP of £28 billion, almost 40 percent of the regional GDP. Also, it is important to note that 65 percent of the population is under 45 years old, meaning that the city workforce is predominantly young (MIDAS, 2004). These numbers would mean a dynamic, flexible workforce as part of the agent capital of the KC model for Manchester. However, according to the Greater Manchester Learning and Skills Council there are 420,000 people in the area with poor basic skills. One in five adults within the workforce are functionally illiterate and as high as one in four are functionally innumerate (Work Foundation, 2002, p. 23). And although the City Council is recurring to partnerships to campaign for skills training, the Manchester job gap is one of its weakest points as a KC. Recent partnerships are the massive ‘‘Skills City’’ exhibition at G-Mex (29 February to 2 March, 2004) and the ‘‘Creative City’’ exhibition at Urbis (11 March, 2004) in which (mainly) the youth can test their learning skills in all sorts of vocational jobs; from call centers to media communications, and from hair dressing and catering to applied engineering. But as some authors argue, this youth will encounter selective, exclusionary, segmented labor markets. Racism is one element, style and accent is another. Skills and access are often subordinated to those first two (Mellor, 2002), and thus the youth in some sectors are discouraged to pursue further development. This chronic lack of intermediate level skills is a serious brake to competitiveness (Work Foundation, 2002). Pick up point 7: Instrumental – Back to Oxford Road, BBC and National Computer Center After our virtual visit to Corporation Street, we take the shuttle again at Victoria Train Station. Enjoying other city KC landmarks such as the Cathedral, the Town Library and the Town Hall, we will go back to Oxford Road Station and will get off from the shuttle so we can now experience a walking tour on Oxford Road, going south towards the university precincts. Two massive buildings on the left had side remind us of the importance of connectivity: the BBC building and the National Computer Center. Indeed, the instrumental capital par excellence, in the knowledge city are the information and communication technologies (ICTs). As connectivity becomes critical for the model, a plan has been made to establish the Manchester Digital Development Agency, to attract and sustain further investment in ICT and e-commerce across all sectors of the economy (Manchester City Council, 2003). Pick up point 8: (Articulating capital) Relational capital – Manchester Science Park After a short visit to the university precincts on Oxford Road, we would like to finish our virtual KC tour at the Manchester Science Park (MSP), attempting to observe the kind of knowledge sharing strategies and k-networking between knowledge clusters. If we walk up to Upper Cambridge Street, behind the (second) John Rylands Library on campus, we will find MSP. It is a purpose-built complex with facilities for growing companies engaged in technology-focused activities, especially those in partnership with some faculty or research team at universities.

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people in Manchester do not recognize ‘‘ Ordinary themselves as part of a knowledge city. ’’ MSP had 74 tenant companies at the end of 2002, with more than 1,000 people on site and over 15 percent of those employed are alumni of one of Manchester’s universities. Its turnover at the end of the year 2002 was £2.4m, and the ICT sector remains the dominant technology sector (MIDAS, 2004). Other examples of technology transfer units are Campus Ventures, UMIST Ventures, Academic Enterprise, Manchester Science and Enterprise Center (MSEC), Manchester Incubator and the Techno Park, which is an extension of the MSC, located on Princess Parkway, the expressway between the city and the airport (MIDAS, 2004). The view of the Techno Park on the way to the airport reminds us that our virtual KC tour of Manchester is over.

After the tour: facts and issues Although the tour gave us a panoramic view of the different knowledge repositories in the city, the model we used made us able to perceive the complex template of social problems in the national and local policy making in cities and regions. As we got the opportunity to speak to other knowledge agents, and to travel to other areas in the city; problematic issues such as centralization, fragmentation and economic dislocation started to emerge. Centralization. The evidence that Manchester, its residents and local authorities are not totally the owners of its future is unquestionable. The biding rules for regeneration funding competitions are established in London, Brussels and beyond, making Manchester vulnerable to decisions taken elsewhere (Peck and Ward, 2002). In that sense, Manchester and other aspiring KCs remain in the periphery, and still will be, as long as key decisions at the center control a percentage of their destiny (Work Foundation, 2002). Fragmentation. Ordinary people in Manchester do not recognize themselves as part of a knowledge city, and do not seem to be aware of the implications of living in one. A clear identity exists, however, in being a Mancunian or Salfordian resident, and a citizen of the first European industrial city (SURF, 2003). In that sense, common Mancunian people may have lost the connection between what they perceive as their identity and the new one created by the global economy. Some scholars will find the roots of this fragmentation in the exclusion and dispossession of city spaces (and identity) from their original owners, the working class. And further, by focusing on ‘‘image’’ rather than roots, it is argued that the regeneration policies have cut off the city from its true meanings and purposes. As these scholars affirm, Manchester’s poverty cannot be solved by the make over of its city center (Mellor, 2002); as ‘‘many of the city’s underlying social and economic problems have been displaced rather than solved’’ (Peck and Ward, 2002). Dislocation. While some voices acknowledge Manchester’s potential as a KC which ‘‘has always been located at the leading, or bleeding edge of change’’ (Robson, 2002) some others have demonstrated Manchester’s impossibility of becoming a core city for it lies outside Europe’s major growth axis (Dicken, 2002). A major issue is indeed the acute ‘‘skill gap’’ aggravated by a cycle of unemployment and exclusion in the labor market. Further, this narrowing of opportunities is spilling out into skilled university knowledge-workers, compelled to ongoing industrial action (AUT, 2004) in protest for the dislocating economic models that have dangerously overlooked the causes of poverty and under-employment (Peck and Ward, 2002).

Beyond KBD Some of the advantages of the knowledge-based development model (Carrillo, 2002) were identified; while using it as an instrument to analyze Manchester’s potential to become an Ideopolis in the ‘‘new economy’’. The model is: J Comprehensive, in the sense it embraced a complete and clear overview of the city’s different kinds of capitals and values. This model performs a thorough exploration of a city in

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the same way the 360 feedback appraisal system does for individuals in a organizational settings (Garavan et al., 2001). J Consistent, in the sense it allowed quantitative and qualitative comparisons of k-capitals, and even facilitated the recording of information not primarily relevant to the model, i.e. population identities and attitudes towards challenge. J Systematic, in the sense that it allowed observant k-agents to classify and characterize information under categories that allow interrelations and insights that increase the awareness of other kinds of values, i.e. agent capital can lead to the identification of skills gaps in the city’s labor market with underlying cultures of exclusion and poverty. J Inclusive, in the sense than KBD models like the present one (Carrillo, 2002) are a useful tool when facing a diversity of cultures, religions, and traditions. It allows the identification of the origins of the populations who have built the city of Manchester to this day, without the risk of premature standardization found in other models (Cheng, 2004). However, although compliant with all these aspirations, the present utilization of the model has to overcome some limitations to become genuinely global. Not by the foundational principles or the operational guidelines of the model as such, but by the nature of the knowledge capitals and knowledge repositories found in Manchester’s issues on social inclusion. Regional identity is one of them. The meta-national aspirations the model proposes, such as the emergence of a global (planetary) value systems are presently clashing against the walls of national and regional identities deeply embedded in the collective consciousness of Manchester citizens. Like other aspiring European knowledge capitals, (Helsinki, Barcelona) Manchester is building its knowledge capital with and by means of a strong regional identity that resists international interventions and uniformity (Peck and Ward, 2002); and is reinforced by collective actions such as the City Pride project after the IRA bomb (Work Foundation, 2002). Group identity might be another. Although the North West escaped in many ways the recalcitrant class-structure of the England of the South (Worthington, 2002), it has nevertheless re-created a clear hierarchy of access to learning and employment through FE and HE institutions that privileges the right to ‘‘belong’’ to a (professional, social, political) group and exclude the ones who don’t have such right. Furthermore, it seems to be opening irreconcilable opinion gaps between the academics, policy makers and social actors involved in regeneration and development projects. Clearly, these actors have been deeply involved in their (corresponding) tasks of transforming Manchester into a better place to work, live and learn. At the same time they seem to have engaged in energetic debates (mostly enriching), as the literature demonstrates. It is only hoped that the risk to exclude one or more of such actors is called off with the same level of passion. Indeed, Manchester is not a networked city, or a learning city, as some models would aspire (SURF, 2003, p. 47). Its potential to become an Ideopolis might be remote, as some authors affirm. But beyond theoretical frameworks, key actors in the city of Manchester are engaged in challenging the city’s old ambitions and identity; and these efforts might re-define its place in the knowledge geography (Landry, 2000). The potential is irresistible, as some of the city’s k-capitals seem to be in place, including the k-heritage of its revolutionary past (Work Foundation, 2002). In that sense, Manchester constitutes a KC promise that could materialize before our eyes; according to, or in spite of, our best theoretical predictions. Even if the iconic Ideopolis is just an aspiration, Manchester’s values, projects and intentions seem to be leading the city-region into new forms of relationship with the center. That might become Manchester’s true and most prominent capital.

Acknowledgements This article benefited from the review and unreserved advice of Professor Bryan Allison and Action Learning set colleagues Jane Watt and Coletta Kapingo at the Revans Institute for Action Learning and Research, University of Salford (Greater Manchester, UK).

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Note 1. Mexico’s central government Council for Science and Technology (Conacyt), has been the sponsor.

References Association of Greater Manchester Authorities (AGMA) (2002), ‘‘Knowledge capital – Manchester. A catalyst for global competitiveness’’, draft Greater Manchester Strategy, Wigan, AGMA, available at: www.thecontactpartnership.ac.uk Association of University Teachers (AUT) (2004), available at: www.aut.org.uk Briggs, A. (1963), ‘‘Manchester, symbol of a new age’’, Victorian Cities, Odhams Press, London. Burke, P. (2000), Social History of Knowledge, Blackwell, Oxford. Callon, M. (1991), ‘‘Techno-economic networks and irreversibility’’, in: Law, J. (Ed.), A Sociology of Monsters: Essays on Power, Technology and Domination, Routledge, London, pp. 132-61. Carrillo, F.J. (2002), ‘‘Capital systems: implications for a global knowledge agenda’’, Journal of Knowledge Management, Vol. 6 No. 4, pp. 379-99. Carrillo, F.J. (1998), ‘‘Managing knowledge-based value systems’’, Journal of Knowledge Management, Vol. 1 No. 4, pp. 280-86. Castells, M. (2000), The Information Age, Vol. 1-3, Blackwell, Oxford. Cheng, J., Zhu, Z. and Xie, H.Y. (2004), ‘‘Measuring intellectual capital: a new model and empirical study’’, Journal of Intellectual Capital, Vol. 5, No. 1, pp. 195-212. Co-Operative Group (2004), ‘‘You have spoken!’’, Scene, special edition, February. Cochrane, A., Peck, J. and Tickell, A. (2002), ‘‘Olympic dreams: visions of partnership’’, in Peck, J. and Ward, K. (Eds), City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. Desai, Lord (2003), ‘‘Manchester and development: trade, growth and markets’’, Third Manchester Lecture in International Development (Master Conference in the occasion of the opening of University of Manchester’s Harold Hankins Building, and the 45th Anniversary of IDPM), Manchester, UK, 29th October. Dicken, P. (2002), ‘‘Global Manchester: from globaliser to globalised’’, in Peck, J. and Ward, K. (Eds), City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. Florida, R. (1995), ‘‘Toward the learning region’’, Futures, Vol. 27 No. 5, pp. 527-36. Garavan, T., Morley, M., Gunnigle, P. and Collins E. (2001), ‘‘Human capital accumulation: the role of human resource development’’, Journal of European Industrial Training, Vol. 25 No. 2-4, pp. 48-68. Giddens, A. (1984), The Constitution of Society: Outline of the Theory of Structuration, University of California Press, Berkeley, CA. Heeks, R. (2001), ‘‘What did Giddens and Latour ever do for us?’’, Information Technology in Developing Countries Newsletter, Vol. 11 No. 1, April, pp. 3-4. Hailstone, A. (1987), The British Bandsman – A Social History of Brass Bands, Egon, Hertfordshire. Herbert, T. (1991), Bands. The Brass Band Movement in the 19th and 20th Centuries, Open University Press, Milton Keynes. Hofmaier, B. (2001), ‘‘Learning regions – concepts, visions and examples’’, Conference paper, Halmstad University College, pp. 1-12. Hylton, S. (2003), A History of Manchester, Phillimore, Chichester, West Sussex. Kennedy, M. (1960), The Halle´ Tradition: A Century of Music, Manchester University Press, Manchester. Latour, B. (1987), Science in Action, Harvard University Press, London. Landry, C. (2001), The Creative City, Earthscan, London. Malhotra, Y. (2003), ‘‘Measuring knowledge assets of a nation: knowledge systems for development’’, Research paper prepared for the Invited Keynote presentation delivered at the United Nations Advisory Meeting of the Department of Economic and Social Affairs, New York, NY, 4-5 September. Manchester City Council and Knowledge Capital Partnership (2003), ‘‘Manchester: knowledge capital’’, Gyroscope Manchester, June.

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Manchester City Council (2004), ‘‘The City of Manchester’’, available at: www.manchester.gov.uk/ index.htm Manchester Investment and www.manchestercalling.com

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McNeil, R. and George D. (2002), Manchester – Archetype City of the Industrial Revolution, Manchester University Press, Manchester. Mellor, R. (2002), ‘‘Hypocritical city: cycles of urban exclusion’’, in Peck, J. and Ward, K. (Eds), City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. Peck, J. and Ward, K. (2002), City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. Peck, J. and Ward, K. (Eds) (2002), ‘‘Placing Manchester’’, City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. Porter, M. (1995), ‘‘The competitive advantage of the inner city’’, Harvard Business Review, May-June. Pritchard, F. (1989), East Manchester Remembered, Neil Richardson, Radcliff, Manchester. Robson, B. (2002), ‘‘Mancunian ways: the politics of regeneration’’, in Peck, J. and Ward, K. (Eds), City of Revolution. Restructuring Manchester, Manchester University Press, Manchester. SURF Centre for Sustainable Urban and Regional Futures (2002), ‘‘Hulme, ten years on’’, report to Manchester City Council, June, available at: www.thecontactpartnership.ac.uk SURF Centre for Sustainable Urban and Regional Futures (2003), ‘‘Knowledge capital: from concept to action’’, report to the Contact Partnership Group, May, available at: www.thecontactpartnership.ac.uk Stewart, T. (1997), Intellectual Capital: The New Wealth of Organisations, Doubleday/Currency, New York, NY. University of Manchester (2001), History of the University, Brochure produced by the International and Public Relations Office. University of Manchester (2002), This Week Next Week, student magazine of the University of Manchester, Vol. 26, January-April, and Vol. 27, January-June. University of Salford (2003), ‘‘Revitalising the English regions’’, in Campus Report, student magazine of the University of Salford, Autumn, pp. 1-2. University of Salford (2003), ‘‘Manchester – the UK’s only knowledge capital outside London’’, in Campus Report, student magazine of the University of Salford, Autumn, pp. 3-4. United Nations Development Programme (UNDP) (2002), Developing Capacity Through Technical Cooperation: Country Experiences, Overseas Development Institute, London. World Bank (2002), ‘‘Global development learning network’’, available at: www.globalknowledge.org Work Foundation (2002), Manchester: Ideopolis? Developing a Knowledge Capital, The Work Foundation, London. Worthington, B. (2002), www.sigmapress.co.uk

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Digital bibliography Central Manchester and Manchester Children’s University Hospitals NHS Trust (www.cmmc.nhs.uk). City of Salford (www.salford.gov.uk). e-Science North West Centre (www.esnw.ac.uk). Government Office for the North West (www.go-nw.gov.uk). Greater Manchester Learning and Skills Council (www.lsc.gov.uk). Manchester City Council (www.manchester.gov.uk). Manchester Enterprises (www.manchester-enterprises.com). Manchester Investment and Development Agency Service (MIDAS) (www.manchestercalling.com). Manchester: Knowledge Capital (www.manchesterknowledge.com). Manchester Metropolitan University (www.mmu.ac.uk).

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Northwest Development Agency (www.nwda.co.uk). Pro-Manchester (www.pro-manchester.org.uk). Tameside Metropolitan Borough Council (www.tameside.gov.uk). The Contact Partnership (www.thecontactpartnership.ac.uk). The core Cities Group (www.corecities.com). Trafford Metropolitan Borough Council (www.trafford.gov.uk). University of Manchester Institute of Science and Technology (UMIST) (www.umist.ac.uk). University of Salford (www.salford.ac.uk) Victoria University of Manchester (www.manchester.ac.uk).

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Greater Phoenix as a knowledge capital Jay Chatzkel

Jay Chatzkel is Principal of Progressive Practices where he assists organizations in transforming themselves into knowledge-based, intelligent enterprises. He is the author of two books: Knowledge Capital: How Knowledge-Based Enterprises Really Get Built (Oxford University Press, 2003) and Intellectual Capital (John Wiley & Sons, 2002) (jchatzkel@ progressivepractices.com). .

Abstract Aims to provide a strategic perspective for professionals and practitioners to better understand necessary elements are for building a successful knowledge capital and to demonstrate how holding conversations with key leadership evokes viewpoints and relevant information to take into account. The paper maps out a strategic perspective of the major elements of a knowledge capital and then integrates a series of conversational interviews with regional leaders who have backgrounds in policy, journalism, and technology. The conceptual scope of the paper dealt with mapping out essential principals and practices for the creation of knowledge capitals in general. The particular focus of the paper was on the Greater Phoenix region and the specific efforts underway there to transition into becoming a knowledge capital. The results are an integrated approach delineating the necessary perspective for developing a knowledge capital and a set of views from significant leadership of a region on what its problems are in becoming a knowledge capital and what can be done to achieve that status. The paper finds that there tends to be a split between those people interested in developing and implementing a strategy for knowledge capitals and those concerned with the transforming existing organizations to become knowledge-based enterprises. The broader reality is that both efforts need to be co-joint and co-equal if a region is to become a true knowledge capital over time. Keywords Knowledge management, Human capital

What is a knowledge capital? A ‘‘knowledge capital’’ is a region that bases its ability to create wealth on its capacity to generate and leverage its knowledge capabilities. In a knowledge capital, enterprises and people link to form knowledge-based extended networks to achieve strategic goals, cultivate innovation and successfully respond to rapidly changing conditions. A knowledge capital recognizes that its ability to grow, capture, leverage and share its knowledge is the basis for both its competitive advantage in the world and for its quality of life. As we emerge from the industrial era, physical and financial resources still are important, but it is now knowledge, and actionable knowledge specifically, that is the most powerful factor of

reason to pursue becoming a knowledge region is to ‘‘ The create the capacities for great gain. ’’

DOI 10.1108/13673270410558783

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production. Physical and financial resources have become commodities that are relatively easy to obtain or replicate. The knowledge factor differentiates a region by uniquely producing the ability to generate, capture and leverage the knowledge necessary to mobilize the other resources and yield remarkable outcomes.

The engine of a global network The reason to pursue becoming a knowledge region is to create the capacities for great gain. In fact, every country or company that has made great leaps has built a knowledge base as its springboard. This is no less the case for Greater Phoenix or any other potential knowledge capital at this point in time. The driving enablers for this transformation will be the revamping of the institutions of the region (private, not-for-profit and public) to become knowledge-based enterprises, as well as mapping out an overall set of strategic goals for the region and a knowledge strategy to achieve those goals. A knowledge capital is the center point of ultimately a network with global reach. This has been true not just for our own times, but throughout history. In the early fifteenth century, Prince Henry the Navigator set the stage for Portugal to become the wealthiest commercial force in the world for two centuries through establishing a knowledge capital. Captain James Cook used a sea borne knowledge capital to chart out the future British Empire during his voyages in the years from 1768 to 1778. Those involved in forging twenty-first century knowledge capitals must embark on similar expeditions to map the new territories of the next half-century. These expeditions will be to bring into being new territories of the mind which will be part of extended knowledge-based enterprise networks. To be sure, a knowledge capital will not serve its people if it is purely local or even regional in scope. It must see itself operating as a global wealthgenerating actor. The advent of the computer and the Internet, coupled with growing global competition and hyper-exponential change have changed the recipe for a creating and sustaining a successful enterprise and region. Knowledge is directly in the hands of all members of an enterprise who can communicate much more freely via the Internet anywhere, at any time, to anyone. Physical and political boundaries mean far less, and are far more permeable. At this point in history no enterprise can consider itself effectively insulated from global competition. In fact, in an increasingly wireless world, that competition can arise from any place on the globe where there are adequately educated people and sufficient technology. While in previous decades it was manufacturing jobs with lower skill requirements that became footloose, relocating to areas of least expensive labor, at the beginning of the twenty-first new century, now it is white collar professional and technical jobs are equally in play and can wind up anywhere. This has resulted in the currently high levels of current angst of many who thought they had privileges of seniority, benefits and a secure future in their enterprises, only to find out that their jobs were outsourced to India, China, the Philippines or Poland. The rate of change is not just growing, and growing exponentially, but it is growing hyper-exponentially, as John Seely Brown[1] has said. We have been led to expect that we will be encountering a continually changing environment, but the velocity of change is hyper accelerated due to the convergence of new technologies, new availabilities of those technologies and the universal incidence of those technologies. In conjunction with these dynamic challenges, we are beginning to realize that approaches and technologies that we believed were good and progressive are actually value neutral. The attacks of September 11, 2001 showed that all of these technologies and approaches, such as intellectual capital and knowledge management, can be used for good or ill. As wealthy in physical resources and powerful as the United States was, it turned out to be vulnerable to a small number of people with a minimal, and barely adequate amount of technology training, but a fierce will, who used the physical resources of United States against itself. The lesson here is that organizations, and even city/regions and nation states, must not only actively cultivate their intellectual capital and knowledge management capabilities, which is usually an internally focused, self-improvement type of effort, they also need to have the ability to be acutely sensitive to the whole range of possible competitive forces at play globally that can affect them. We live in a world where any advantage is temporary, and the challenges to the status quo are

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knowledge capital is the center point of ultimately a ‘‘ Anetwork with global reach. ’’ disruptive and ongoing. It is a world where dominance of purely physical resources does not make the difference, but rather where the capability to shape the whole range of physical, financial, human, and technological resources to respond to ever changing conditions is what matters. In a word, it is the intangible capabilities and the ability to navigate and reshape recipes for transformation that creates the competitive edge.

The knowledge capital advantage Knowledge capitals have a unique advantage in this world. They are the dynamic centers where new knowledge is created, brought into use and leveraged. Just as the great merchant cities of the Renaissance, such as Venice, were the catalysts and focal points for generating wealth and power, and the New York’s and Chicago’s of the early twentieth century were where society’s problems were both most intense and at the same time freshly resolved[2], knowledge capitals of the twenty-first century will be where the critical problems of the planet are met and responded to. And, it is the tackling of those problems that yields new, breakthrough opportunities. Knowledge capitals are singularly able to meet these challenges and forge new opportunities because they have the concentrations of human capital, infrastructure and the other requisite resources, as well as the values and the entrepreneurial orientation to bring to bear to create solutions and implement these responses. While nation-states will continue to exist, it is the knowledge capitals that will negotiate their future with each other. Over time, knowledge capitals across North America, South America, Europe, Asia, and Africa will most likely have more in common and be better and more directly linked with each other than will be their host nation-states. Will these knowledge capitals be the same as traditional cities of the past century? What will continue to be true is that knowledge capitals will be where the action is. The actual physical and other characteristics will vary from place to place determined by regional requirements. For example, knowledge capitals may, or may not, have downtowns, but even if they do they will not be the conventional downtowns of the past. In fact, there may be no dominant downtown, but rather a number of centers in a region, similar to how Los Angeles has developed over the last several decades. These various centers could operate as a an overall value creating network of diverse meeting places, with each center having its own special focus and clusters of capabilities. Whatever the configuration, the dominant elements in a knowledge city will continue to be an intensity of interaction and high levels of performance. Silicon Valley, the technology corridors around Washington DC, the Research Triangle in North Carolina, and the clusters of office complexes in Bangalore may be good indicators that it is clustering, connectivity, proximity and intimacy that matter more so than traditional downtown locations and physical structures.

Bringing a knowledge capital into existence There are two dimensions in the development of a knowledge capital. Internally enterprises must be in a continuous process of transformation in order to be at one and respond to changing conditions in the world. At the same time the region needs to formulate overall strategies that build upon and capitalize on its unique strategic advantages. These strategies guide the development of the knowledge city’s technological, physical and social infrastructure across enterprises and extend out into the world. From the internal perspective, knowledge era organizations need to generate extended enterprise structures for operating. This means that the enterprise must reground itself in its business strategy, customer strategy, organizational strategy and knowledge strategy. The business strategy is the largest context and each other strategy nests in, and is aligned with and reinforced by the larger business strategy[3].

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The business strategy maps out the place of the enterprise in the world and denotes its competing areas such as niche markets, customized offerings and service packages. The customer strategy targets selected customer foci and concentrates on the nature and levels of relationship and service level, as well as the goods and services that would be developed and supplied to discrete customer groupings. The organizational strategy looks at the internal operations of the organization, articulating types of human capital functional abilities and experience and the processes that are necessary to support the customer and business strategy. The knowledge strategy deals with the kinds of knowledge leadership, staff, suppliers and customers need, tied to the technology that is critical to achieve business strategy goals. As part of that internal perspective, the enterprise must move beyond the old social contracts which were temporary truces between the antagonistic interests of management versus labor. That type of social contract is now in tatters. Enterprises can no longer support work rules and benefit agreements geared to an era of gradual growth and long term relationships. Rapidly changing and newly emerging requirements demand new skills and ever changing offerings and have made traditional arrangements obsolete and counterproductive. In the emerging knowledge capital recipe, management, the workforce, suppliers, and customers have to collaborate in an extended supplier/producer/customer network or not survive. This is not an easy or simple process. It requires that each individual build and use a strong set of negotiating skills to flesh out the specific characteristics of their deals with the enterprises they work with. Autonomous members of the workforce must negotiate with enterprise managers to forge these new ‘‘social contracts’’ where individuals ‘‘invest’’ their capabilities so that the enterprise’s strategic goals can be reached. Just as financial investors bring their financial capital to the table to invest and work out the best deal for themselves, all individuals in the workforce are investors of their own human capital and seek the best return on investment for themselves[4]. The enterprise shapes the context for these ‘‘deals’’ so that the human capital resources are used to achieve strategic targets. Everyone has to participate in negotiating these deals. Front-line employees, supervisors and senior leadership all have to seek the best outcome for both the enterprise and the workforce. The same holds true in the relationship between the enterprise and the customers of its outcomes, with products and services being co-generated with inputs from users. Second, there are a range of strategic policy choices that leadership of enterprises and city/ regions must make. Becoming a knowledge capital requires a conscious decision to establish a network of knowledge-based entities that interface with the world. It then requires a set of strategic goals and commitment of resources to build the infrastructure and engage the talent that is necessary to design and implement the related dimensions of the knowledge enterprise and region. While this is happening, all parties need to search out existing and emerging opportunity areas that can be new centers for innovation and service that take the knowledge capital to new levels of achievement and performance. Building a knowledge capital further entails understanding that this is a long-term undertaking. Projects can be the impetus and catalyst to establishing a new basis for the economy and society, serving as stepping-stones to the larger transformation. For a knowledge capital to be fully successful all elements of the population need to participate. This requires extensive and continuous communications across all sectors and to all populations about the transformation. In the end, everyone in the city/region (i.e. business leaders, politicians, school teachers, artists, students, retirees and office workers) needs to understand that there is a shift to a knowledge era economy and society underway and to understand that knowledge is the currency of the new era. A knowledge capital cannot afford to leave anyone out. Further, a knowledge capital is not just about communication, it is also about education. Since knowledge capital is rooted in knowledge-abilities everyone needs to participate in a lifelong education process. This is not an option but rather a core way of operating and providing the basis for generating new wealth.

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There is a tendency for some in the knowledge capital movement to emphasize the development of a strategic action framework, while others concentrate on making individual enterprises increasingly knowledge-based enterprises. The truth of the matter is that there is a fundamental bond between creating a strategic action framework through which the city/region moves to reposition and reframe itself as a knowledge capital and the simultaneous development of enterprises built on principles of responsiveness, speed, transparent values, continuous learning and high performance. It can be said that the relationship is Janus like, where each is necessarily an embodiment, reflection and manifestation of the other but with a different face. In the end, it is the same brand, the same quality of intelligence and level of performance that is brought to bear on the global scene.

Can the Greater Phoenix region become a knowledge capital? The Greater Phoenix region has major elements that can enable it to become a knowledge capital. It has a number of educational institutions at the university, community college and technical school level that are interested in creating the technological basis for knowledge enterprises. It is the political capital of Arizona, with certain agencies that have developed themselves into world-class operations. Further, people from all over the United States and the world are drawn to live and vacation in a remarkable climate in Greater Phoenix, with its numerous resorts and legions of continuously developing communities for people of all ages. Its climate, along with relatively inexpensive development and operating costs, drew a core group of technology companies to the region. Beyond that Greater Phoenix has clusters of cultural organizations and is also a gateway to many of the most outstanding recreational areas in the United States. It has a transportation network, primarily of highways, that give it access across the region and country, and an international airport that provides connections to anywhere in the world. At the same time, Greater Phoenix is a living contradiction. It banks heavily on tourism, a continuing construction boom, and a low wage service economy. All of these economic pillars are vulnerable. The tourism industry is still recovering from the attacks of September 11, 2001, and can be equally affected by any similar incident or downturn. The real estate development industry can experience an unpredictable rise in interest rates that could starkly cut the market for its offerings. And finally, its low wage service work is increasingly under pressure since major elements of it, such as call centers, are easily outsourced offshore. The result is that, based upon these three economic drivers, it is difficult for many residents of the Greater Phoenix region to build a satisfying and sustainable standard of living.

A knowledge conversation: building the basis for making the leap A knowledge capital is a result of a continuing conversation of the major participants in the region. The people who join in this conversation map out the strategic goals for the region and determine the knowledge strategy. This conversation focuses on determining the basic requirements for becoming knowledge-based enterprises and the need to set goals for the region to achieve so that it can win in the global competitions over the five decades. There are two basic, overall approaches to a knowledge strategy. One is enterprise wide and the other is project specific. In some cases there is a basis to mobilize the entire region network of enterprises, as was done in Singapore, to make it a ‘‘wired’’, highly educated country with institutions that have a common goal of furthering the Singapore ‘‘brand’’. Areas as diverse as the ports, the airline, and the defense department were all focal points for transformation, supported by a well-educated and outwardly focused government and people. Another approach is more project-based. While the operating principles of both are the same, the project-based approach specifically targets opportunities, gradually building up a constituency and over time weaving the links into a full-scale knowledge capital enterprise.

capitals have a unique advantage in this ‘‘ Knowledge world. ’’

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This project-based approach may make the most sense in the Greater Phoenix region. There are numerous opportunities to create projects that are catalysts for broader transformation in the region. For example, Greater Phoenix is in a unique position to establish a Center for NAFTA Performance Excellence. Phoenix is a major American city that stands near Mexican border and has a strong Canadian presence. Such a center could both draw on and build the academic capabilities required to study international trade issues, be a focal point for how enterprises could markedly improve their performance, be a generator for the kinds of industries that could actively beneficially participate in cross border activities. This could ultimately be the basis for Greater Phoenix becoming an international trade center similar to the role that Miami, Florida plays in its region. Additional centers also serve the role of catalysts to raise the level of service, performance and knowledge in the Greater Phoenix region and have ripple effects outward in stimulating a broader incentive to reframe participating institutions to become knowledge-based enterprises. Some are: J Center for technology and innovation: a cross-enterprise endeavor of educational and private enterprise institutions to name and nurture technologies that could introduce new opportunities and support higher levels of performance in regional enterprises. J Center for enterprise performance: this center would focus on availing the new and innovative perspectives and skills that need to be cultivated in all types of enterprises in the region. The goal would be to foster world-class levels of performance characterized by an attitude of autonomy, collaboration and investment among the workforce and the abilities of enterprises to achieve their strategic goals. J Center for hospitality and tourism: the tourism and hospitality sectors are well developed and have a very strong presence in the Greater Phoenix region. However, there is no center at the university or advanced degree level for developing the broad range of leadership and technical skills needed to make Greater Phoenix a destination metropolitan area and not largely a pass through to competing cities like Las Vegas. In a word, Greater Phoenix has to cultivate itself to be experienced as one of the most compelling attractions in the world. J Center for construction and the environment: although construction and real estate is a prime driver in the Greater Phoenix region, the emphasis has been capitalizing on development of inexpensive land and related resources and not developing itself as a cutting edge center for design and construction of sustainable environments. Urban design and architecture, coupled with explorations on how to build on the Greater Phoenix region’s unique Sonoran desert setting would create an exciting, living legacy for all ranges of the regions population, across all income levels. J Center for citizen participation: retirees and others that have an extensive background of experience and talent could be drawn upon to participate as volunteers in the gamut of nonprofit, public and public enterprises of the region, and be in a continuous process of learning as well. J Center for new citizens: the Greater Phoenix region is faced with a critical problem and opportunity. There is a vast legion of Latino and other immigrants to the region that need to be integrated into the overall fabric of communities. Beyond being a social welfare agency, such a center could focus on the education, advancement and well being of this significant population, building it as a major asset for the region. J Center for educational transformation: this center would concentrate on the kinds of educational opportunities needed to be brought into play to prepare Phoenicians of all ages to participate in their knowledge-based future. J Center for gerontology: a significant proportion of the Greater Phoenix population is retirees. However, at this point there is not a major research, preventive and treatment network program for health care among senior citizens. Health care providers individually or collectively could lead this effort. J A future center: the future belongs to those who shape it. A ‘‘future center’’ will explore possible emerging trends and opportunities and experiment with prototype applications of

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nation-states will continue to exist, it is the ‘‘ While knowledge capitals that will negotiate their future with each other. ’’ goods and services that will be of value in time frames 10 to 20 years from our present day. The outcomes of the future center would be available to regional enterprises for further development and broad scale implementation. Explorations at the future center would also provide early indicators of how the Greater Phoenix region would need to redirect its energies and investments.

A knowledge capital conversation in action To gain a broader understanding of the issues involved in the transition to becoming a knowledge capital, a set of conversations took place involving participants from a variety of sectors and perspectives discussing a series of key elements involved in the transformation of Greater Phoenix into a knowledge capital. All have extensive experience with the business and economic development communities, as well as other interest groups in the Greater Phoenix region[5]. Participants were: J Francine Hardaway, lead partner of Stealthmode Partners and a technology marketing specialist; J Noah Kroloff, Chief Assistant for Policy and the New Economy to the Governor of Arizona; J Julia Rosen, Director of Economic Affairs of the Arizona State University; J Jon Talton, business columnist for the Arizona Republic newspaper; and J Mary Jo Waits, Associate Director of the Morrison Institute of Public Policy of the Arizona State University.

Key strategic principles The first area of conversation focused on the key strategic principles for the Greater Phoenix region to become a knowledge capital. The overriding strategy is to create the basis for that transition to happen. Frances Hardaway sets out that an active concern is essential for making this shift: ‘‘If you don’t care, you are not going to be a knowledge economy. You have to know enough about what is going on outside Arizona and in the world to understand where we stack up now and where we could go’’. Hardaway further stated that: ‘‘There is no such thing as having a knowledge economy with the education system we have wherein we are forty-ninth in the United States in education funding and in education results. But the education that is needed is not one of facts and tactics, but rather the emphasis needs to be on critical thinking skills, problem solving, resourcefulness, and innovation, which together generate the ability for people to create their own capacities’’. Noah Kroloff concurred, saying ‘‘We cannot build a knowledge community without having knowledge-able workers’’. The Governor of Arizona has made it a major goal to both implement full time kindergarten programs across the state as well as providing support for high-level research at the university level. What is the connection between full time kindergarten and highlevel research? His comment was that, ‘‘You are not going to get genomics research and building on key core competencies like sustainable systems without having a workforce that has been supported by an educational system that is adequate’’. Linked to these efforts is generating the intellectual capital resources at the universities in conjunction with other enterprises to enable producing new and breakthrough knowledge, eliminate barriers faced by growing knowledge-based enterprises. Without these kinds of efforts, both enterprises and their high talented people will be drawn to migrate to other regions

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like Austin, Texas or San Diego, California to get the kinds of funding capital and supporting networks for continuing development. Another key strategy that is underway is changing state laws to permit public/private partnership ‘‘technology transfer initiatives’’ that enable universities to take equity positions in start-up companies that need and want their research. That is tied to an effort to stimulate raising the levels of excellence at the university while simultaneously finding a variety of ways to get more venture capital into the region. Mary Jo Waits contributed an encompassing set of principles which she summarizes as building a ‘‘quality of place’’, which she sees entails the kinds of things that matter in the knowledge economy. She maps out six elements: (1) Placing the emphasis on attracting and keeping smart, exceptional people, more so than in seeking raw population growth. She views that we need at least two types of exceptional people: the people who discover things, such as scientist and engineers, and then entrepreneurs who turn those discoveries into things that matter in the marketplace. (2) Preserve and enhance the natural environment. Talented, exceptional people have the resources to live in great places and will choose those areas with the most appealing amenities. The traditional emphasis on low cost land, basic entertainment and depending on climate is not sufficient for building a sustainable knowledge capital environment. (3) This element goes beyond natural amenities, as beautiful as they are in the Greater Phoenix region, noting that those nature-based attributes are not enough. Becoming a knowledge capital requires that the Greater Phoenix region have distinctive urban amenities as well. These would be unique to the region and not merely imitations of what every other city/ region has. These are the things that will make Greater Phoenix be a destination place, on the one hand, but also a place that has the unique attributes that are important to significant ranges of individuals in the resident population. This means that there will be specific clusters of amenities for such key, yet diverse groups, as young talent, baby boomers, and highly skilled immigrants. (4) Be a ‘‘smart, innovative’’ place. This is creating the experience that Greater Phoenix is a knowledge capital where rapid advances in an array of areas take place through face-toface interactions and knowledge exchange. Greater Phoenix would have to redesign itself as a both a physical and social space that its ‘‘knowledge capitalists’’ can be in close proximity to one another, and to institutions like universities, design schools and specialized research centers for ready access, opportunity exploration and being resources to one another in working through complex responses. This is, in a sense, bringing together ‘‘smart people’’ with ‘‘smart assets’’. (5) Knowledge capital would not be just about assembling people and spaces. It would also be encouraging the attitudes, tolerance and entrepreneurial culture so that creative people feel Greater Phoenix is ‘‘where the action is’’. Recently, as Julia Rosen noted, there has been a campaign in Austin, Texas to ‘‘Keep Austin Weird’’. The diversity and uniqueness of a place is essential to draw out and bring together the many, and often, contradictory and unorthodox people and approaches that can keep a knowledge capital on its creative and competitive edge. While Greater Phoenix does not have to be ‘‘weird’’ it does have to generate a unique, special and compelling energy. (6) Speed – speed to market, rapid learning and incorporating new ideas, are all essential to retain and attract the kinds of people and enterprises that will make the Greater Phoenix region a knowledge capital. According to Julia Rosen, these kinds of undertakings require three major dimensions: a long term perspective, a recognition that moving the Greater Phoenix region into becoming a knowledge capital will not be cheap, and the willingness to embrace change. Since people already flock to the Greater Phoenix region for its climate and environment, the real question is how can the emerging knowledge capital provide the resources, the basis for quality of life, and the exciting opportunities for all of these talented, diverse people so that they stay, invest their human capital and grow their knowledge-based enterprises.

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Who needs to be involved in leading the transition to a knowledge capital? Core leaders have been playing major roles in establishing the momentum for Greater Phoenix to become a knowledge capital: Governor Janet Napolitano speaks directly to establishing a knowledge-based economy, President Michael Crow of Arizona State University has been a dynamic force in reshaping the university to become a knowledge enterprise, and the major municipality, the City of Phoenix has made an active decision to garner its resources to provide opportunities for a knowledge economy. That is a strong beginning, but there is a need for a great number more significant players to be involved. Jon Talton felt that the most important people for this are what he calls ‘‘champions with checkbooks’’. These are business leaders that can actually commit capital and ‘‘where necessary crack heads behind the scenes’’. Talton believed that this was what Greater Phoenix lacked to a great degree. ‘‘We have well meaning people but they can’t bring capital to bear’’. The challenge in the Greater Phoenix region is that many of the people with a significant amount of money and knowledge view Phoenix as a ‘‘disposable community. They send their money ‘back home’ and are not fully engaged’’. Additionally, Talton and others call for a much more extensive base of people to be involved. Talton speaks specifically of involving the many different Latino communities in the Greater Phoenix region. Noah Kroloff stated that he ‘‘would not want to put a limit on any sector to be involved, but first and foremost, the Greater Phoenix region needs the backing and interest of the broader based business community’’. Further, Kroloff emphasized that even traditional industrial era businesses and their CEO’s need to understand and be involved in moving the state and the Greater Phoenix community forward in the knowledge economy because ‘‘that is where the workforce is going to go and their long term sustainability is going to be based upon a knowledge economy and not on a manufacturing economy’’. Julia Rosen stressed that beyond the larger business leadership and the state government, there is a need to be much more inclusive, engaging other very promising, emerging groups, such as small technology companies, students, and people of different generational groups and lifestyles, from Gen X and Gen Y to retirees. Francine Hardaway commented that ‘‘We can’t just have a knowledge economy take place if it only comes from the top down. I believe that writers can help, artists can help, and elementary school teachers can help. And for those that are not in able to participate themselves, we need to engage community organizations. Everyone can help’’. Mary Jo Waits adds that people involved in building Greater Phoenix as a knowledge capital must not only lead, they must also create and articulate the vision of the emerging knowledge capital and network to reach out beyond their institutions to establish new, unprecedented, and potent working relationships with other organizations. These are the same people that are involved in generating and sharing the new knowledge that is the basis for a knowledge economy. There is a fair amount of disagreement concerning how critical it is for the legislature to be involved. Waits feels that it would be fine if the legislature just did not get in the way. Others, however, including Talton and Hardaway, are far more concerned that a highly conservative legislature would stifle necessary important initiatives if those initiatives required increasing taxes and expanding the role of government. Resistance to these schemes could hinder not only the infusion of technical and new capital into the region, but also undermine the support of educational and social programs, in areas such as health care and other essential supporting services, that are part of the new fabric of the knowledge capital environment. These critics view that enhancing the quality of life and the level of performance in the region are equally as key strategically as environmental amenities and specific measures to augment economic competitiveness. All of these initiatives may well need to be upheld by the legislature. Talton also emphasizes that activating the political power of the state’s senators and representatives to the US Congress is needed to get the State of Arizona and the Greater

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Phoenix region the money it needs to support the transformation effort. He notes that Arizona ‘‘was built on federal money and we have been languishing now for 15 or 20 years’’. Interestingly, that time period is approximately same time frame various participants said that the Greater Phoenix region was behind regions like Austin, Texas and San Diego, California. Now that the regional leadership has come to be aware of the need for the knowledge-based transformation and is mobilizing for it, extensive resources must be built up and brought into play. At this point there has been exceptional leadership breaking ground in major areas that will allow Greater Phoenix to become a knowledge capital. Now the conversation has to be far more broadly expanded and deepened across all populations and sectors so that everyone knows what is at stake, how they can participate and what the gains are for all concerned. With a much more broad-based involvement, a critical mass of aware, educated, skilled and innovation oriented people can continue to produce outstanding outcomes even if exceptional leaders and visionaries choose to move on to opportunities elsewhere. When this critical mass has come to exist, the Greater Phoenix region will have accomplished becoming a self-generating knowledge capital.

The core capacities for making the leap into being a destination city/region and knowledge capital A third element in the transformation of the region into a knowledge capital is the cultivation, integration and activation of strategic capabilities. The focus is on the capability to respond, rather than owning or controlling the physical resources themselves. There was a common agreement among participants that real estate development and hospitality are the two areas that Greater Phoenix knows how to do well. Also, by the 1990s the universities had developed a capability in information technology. Since then the Arizona State University, the State of Arizona, and the City of Phoenix have made a major commitment to bio sciences and genomics, which is now in the embryonic stage, as well as in sustainable systems in a move to more broadly develop the region’s strategic advantages. There have been the beginnings of significant rethinking in other capacities as well, particularly in cultivating the skills, technology, the physical and communications infrastructure vis-a`-vis Mexico. Kroloff points out that the region’s proximity to Mexico can be leveraged into a major strategic advantage not only for Phoenix positioning itself as a physical and communications center for trade linking Canada, Mexico and the Latin American community, but also by having Greater Phoenix provide specific capabilities in such areas as environmental technology where Phoenix is far ahead of other regions.

What would the Greater Phoenix region be like as a knowledge capital? Participants keyed in on a number of points regarding how the Greater Phoenix region would look and feel as a knowledge-based economy came into existence. Talton said that: ‘‘We would have more decision-making and creative work here and no longer be a colony where the lowest end work is done. We would attract significantly more private capital and be a place where everybody has rising per capita incomes’’. In Talton’s view, the economy would be much more diverse, with different technology industries driving its future as well as current real estate and tourism. At the heart of Talton’s points was that the Greater Phoenix region would be on the cutting edge at the heart of new innovation, in an upstream position, characterized by a place where at least five of Fortune magazine’s ‘‘Top ten trends to watch’’ would be markedly manifested in the region. Rosen and Hardaway strongly expressed that a successful knowledge capital would have good, well paying jobs for the many bright young people who both grow up in Greater Phoenix, as well as those who move here. In addition Greater Phoenix would be an exciting enough place for them to want to spend their twenties and early thirties. Complementing that would be a vibrant, world class educational system from K-12 through university level, that there would a sufficient level of social services, and a more dynamic arts and cultural environment. Kroloff added that it means that the many small businesses that start their lives in the Greater Phoenix region would continue to stay in the region and to grow in scale and thrive.

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The test will be whether the Greater Phoenix region ‘‘stays the course’’ on what it already has started to develop over the last decade and especially the last several years. As Waits said, ‘‘Everybody has the same assets. It is really how you put them together to gain a competitive advantage that nobody else has. That is the challenge’’.

Closing thoughts The Greater Phoenix region has begun the process that can lead it to become a knowledge capital. It has made some key, strategic moves to bring in new technology sectors, reposition its major university assets, and generally decide that it is going to stake its future on becoming a knowledge capital. It has started to construct critical building blocks for being a significant, creative region. The seeds for the transformation have been planted, awareness is being raised and important actions have been taken. Nonetheless, the transition is a multi-year, multi-decade and multipartner process. Will the seeds sufficiently root, bear fruit, and be harvested and leveraged in such way that it changes the character, mindset and nature of activities in the Greater Phoenix region? This is not only a change from a doing one type of work to another, it is also a shift from a way of life and economy that consumes resources to one that emphasizes sustainability over the long-term. This is only something that the people of the Phoenix region and those who will be joining them over the next decades can determine. The Greater Phoenix region has been best at mapping out its specific strategic thrusts. It is just starting to address the co-equal need to transform its organizations into knowledge-based enterprises. One thing that may hamper Phoenix in its effort is that, at this point, there is very little in the way of knowledge management or intellectual capital coursework being offered at the community college, university or professional level in the Greater Phoenix region. This lack of available education into the basics of a knowledge economy, the role of intangibles and the building of knowledge-based enterprises and ecology may significantly handicap the movement of the region into becoming a knowledge capital. Establishing fundamental opportunities to learn the principles and practices of a knowledge capital is an essential part of generating the necessary broad-based awareness and skill base for the Greater Phoenix region to revamp itself for the knowledge era. Building that awareness and skills will go a long way towards enabling an effective and successful transition to the knowledge age network of enterprises the region must become. If Greater Phoenix is to make its mark in the world these policies and strategies must be enabled by enterprises characterized by great capacities for responsiveness and world-class performance. However, the world will not wait. There are numerous other candidates, both in the United States and around the world, who also striving for the same role, mobilizing themselves, making the requisite investments in people and infrastructure, and committed to building their long term knowledge-based futures. To be sure, the Greater Phoenix region has great promise to become a dynamic, vital knowledge capital, but time will tell how well it mobilizes to recreate itself to fulfill that promise in the unfolding knowledge era. Phoenix profile J Phoenix is the fifth largest population city in the United States with 1.3 million people; J Phoenix is surrounded by nine other cities in Maricopa County that have populations of 100,000 people or more; J The overall population for Maricopa County is 3,500,000 people, growing 45 percent over the last decade; J The Phoenix-Mesa metropolitan area increased in population by 45 percent during that same period; J 34 percent of the City of Phoenix population is Hispanic/Latino, and 25 percent of Maricopa County population is Hispanic/Latino; and J The Phoenix metro area is just over 9,000 square miles in area. (Source: US Bureau of Census Data)

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Notes 1. Presentation at the 2001 BrainTrust Conference, February 13, 2001, San Francisco, CA. 2. Jacobs (1970) discusses the differentiation of capabilities in The Economy of Cities. 3. Hubert Saint Onge and Charles Armstrong (2004) articulate the four dimensional hierarchy in The Conductive Organization: Building Beyond Sustainability. 4. Thomas O. Davenport (1999) offers a compelling framework for understanding that people will determine how they will invest their human capital and how organizations can collaborate with their workforce to leverage that human capital for strategic outcomes in Human Capital: What It Is and Why People Invest It. 5. This series of interview conversations took place from March 9 through March 19, 2004.

References Davenport, T.O. (1999), Human Capital: What It Is and Why People Invest It, Jossey-Bass, San Francisco, CA. Jacobs, J. (1970), The Economy of Cities, Vintage, New York, NY. Saint-Onge, H. and Armstrong, C. (2004), The Conductive Organization: Building Beyond Sustainability, Butterworth-Heinemann, Woburn, MA.

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Creating a knowledge-based city: the example of Hsinchu Science Park Stephen Chen and Chong Ju Choi

Stephen Chen is a Senior Lecturer ([email protected]) and Chong Ju Choi is Professor of International Business, and Executive Director (chong.choi@ anu.edu.au), and both are at the National Graduate School of Management, Australian National University, Canberra.

Abstract The purpose of this paper is to highlight the role of tacit knowledge in successful knowledge-based cities. It focuses on a case study of Hsinchu Science Park in Taiwan. The growth of successful knowledge-based cities is dependent on three interrelated processes that create and transfer tacit knowledge in cities: local knowledge creation, transfer of knowledge from external sources and transfer of that knowledge into productive activities. Researchers need to focus on processes for the creation and transfer of tacit knowledge in cities, and designers and policy makers of knowledge-based cities need to focus on creating tacit knowledge in cities. Discusses the connection between tacit knowledge and growth of global cities. Keywords Innovation, Information exchange, Knowledge management, Information networks

Introduction Creating knowledge-based cities has become a topic of interest to both academic researchers and policy-makers worldwide. It is estimated that by 2030, 60 percent of the world’s population will live in cities (Wagner, 2001). Much of this urban growth will be fuelled by knowledge workers in industries such as consulting, investment banking, law, science and technology that are becoming increasingly important in the growth of most developed nations. An important question for policy-makers is how best to convert the knowledge of these skilled professionals into productive activities that will lead to economic growth. Research within several disciplines has highlighted the increasing importance of scarce human resources in the growth of cities. For example, in international business and economics, research on foreign direct investment decisions by multinational corporations (e.g. Dunning, 1980) or the economic competitiveness of regions and nation states (Porter, 1990) has shown that a critical factor is scarce labor. Likewise in urban and regional planning, researchers, such as Florida (2002a,b), Choi (2003) and Saxenian (2002) have shown how the growth of cities depends on the knowledge of certain creative classes that are able create new ideas and new businesses. In this paper we suggest that not only is growth dependent on a particular class of workers but that the knowledge transferred or exchanged is knowledge of a particular type – tacit knowledge. Kogut and Zander (1993) have suggested that the main function of MNCs is to efficiently exploit tacit knowledge across borders. We suggest similar processes operate at the city/regional level. Using the case of Hsinchu Science Park in Taiwan we examine how

DOI 10.1108/13673270410558792

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related to knowledge-based cities stretches ‘‘ Research across many disciplines but three key streams of research are economic geography, international business and urban planning.

’’

transnational networks of individuals or firms can transfer tacit knowledge across borders and transfer that knowledge into productive processes within cities. The rest of the paper is set out in the following way. First, we review the literature related to knowledge-based cities in international management, economic geography and city and urban planning. Second, we show how the concepts of creative capital and tacit knowledge link all three literatures. Third, we illustrate how Hsinchu Science Park has successfully created a system for converting tacit knowledge into productive processes.

Literature on knowledge-based cities Research related to knowledge-based cities stretches across many disciplines but three key streams of research are economic geography, international business and urban planning. Economic geography Within the field of economic geography, research has focused primarily on the locational factors such as market access and transport networks that contribute to economic success (Losch, 1940; Christaller, 1933). Economic geography’s main focus has been the cumulation or agglomeration process of firms that decide to locate or conduct business in a particular location, country or region (Krugman, 1991, 1998). An example comes from Storper and Christopherson (1987) who observed a process of transition from mass production to flexible specialization in the US film industry, which involved the weakening of internal scale economies in favor of external economies. External economies and geographical concentration are linked in positive feedback relationships. Such economies may arise, for example, from shared infrastructure or from a shared pool of skilled labor. This means that the location of a number of successful corporations in one region or city, can create a self-reinforcing type of aggregate effect where larger markets are created, encouraging more suppliers to work in the region, and further reinforce the various positive effects. In turn, this can lead to a rapid development of particular cities or regions and the development of a local economy (Arbonies and Moso, 2002). Overall, the research points to the key determinant of economic development in cities being the ease of interaction and exchange with other major players, such as consumers, suppliers, information and technology. Such interactions are necessary for backward linkages such as the firm purchasing from others in the region, and forward linkages such as the firm supplying parts or training workers. The tug of war between the twin forces of clustering and locating in one place versus separating out into several areas has been one of the crucial areas of research in the new economic geography. The centripetal forces that lead to clustering towards the center are driven by factors such as market size effects, concentration of highly skilled labor; whereas the opposing centrifugal forces that lead to a scattering of firms are driven by the rents and costs of land and the immobility of labor (Krugman, 1999; Kim, 1995). International business/management In the field of international business, location has been a topic for research at least since the article by Knickerbocker (1973) analyzing the tendency for multinational enterprises to follow into areas, countries, regions that other multinational enterprises have pursued in the past. One of the most successful frameworks for understanding the globalization decisions of traditional firms and the growth of multinational enterprises (MNEs) has been Dunning’s (1980) eclectic paradigm of foreign direct investment (FDI). This paradigm brings together earlier, disparate literature on foreign direct investment into a framework that identifies three key conditions that need to be met for a foreign investment to occur: ownership, internalization and location.

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Ownership advantage relates to firm factors that make FDI for that firm favorable such as the possession and exploitation of monopoly power, scarce, unique and sustainable resources and capabilities and managerial competencies. Internalization refers to advantages gained through direct control of goods rather than trading in a market. Location advantages are factors that make the location attractive for investment such as physical and human resources, host government support, costs of local factors of production, and the strategic fit with global resources of the MNEs. Similarly, Porter (1990) has described the phenomena of firms clustering in locations relatively close to other competitor firms and firms in supporting industries. Location within a cluster can provide superior or lower cost access to specialized inputs such as components, machinery, business services, and personnel and also personal relationships and community ties that provide access to extensive market, technical, and other specialized information that accumulates within firms in a cluster. For example, Porter and Stern (2001) highlight local factors such as links between industry and universities as being key determinants of the success of high technology firms in locations such as Silicon Valley in California. Many clusters include governmental and other institutions (e.g. universities, think tanks, vocational training providers, standards-setting agencies, trade associations) that provide specialized training, education, information, research, and technical support. Urban and regional planning Within the urban and regional planning a focus has been on designing policies to attract investment and encourage economic growth in certain cities or regions. Early continental European works in geography and regional science (Weber, 1909; Christaller, 1933; Losch, 1940) assumed a relatively immobile labor market, but as the pace of globalization increases and most activities become increasingly mobile, the focus has shifted. In the past the focus of planners was to ensure adequate provision of key infrastructure such as housing, transport and communications that will attract businesses. The focus has shifted to creating the social amenities and communities that will attract key workers (Martin, 2001; Choi, 2003). As city and regional planning researchers have shown, social relationships and ‘‘quality of life’’ in a place, location, or city are key factors in attracting talented workers to certain global cities such Paris, New York, London and Sydney (Mathur, 1999; Leamer and Storper, 2001; Robinson, 2002; Santagata, 2002). By extension they are also key factors that determine a city’s economic as well as social competitiveness (Rogerson, 1999). The importance of this issue is increasing as the relationships between work, family and the community become increasingly intertwined (Voydanoff, 2001; Iverson and Maguire, 2000). This trend is confirmed in the field by human resource professionals who attest to the growing importance of the quality of life in a location as an issue in recruiting new employees (Patel, 2001). Similarly, Galbraith and De Noble (1988) found in a survey of high technology firms that ambiance and availability of labor and property were key factors in deciding where to locate their business.

Knowledge workers The literatures in all three disciplines thus converge on the increasing importance of knowledge work and knowledge professionals, reflecting the increasing importance of scarce knowledge resources in the economy. The suggestion that growth of cities is related to human capital can be dated back as far as Ullman’s (1958) work on regional development and Jacob’s (1961, 1969) work on the economy of cities. Since then extensive empirical work has confirmed a link between human capital and the economic growth of cities. For example, Glaeser et al. (1995) found a strong relationship between human capital and city growth; Glaeser (2000) further suggested that access to scarce human capital is a key driver for firms for the clustering in a particular location; Eaton and Eckstein (1997) and Black and Henderson (1999) have suggested that productivity gains can occur through knowledge spillovers when people are co-located. The emphasis in research in the growth of cities has once again shifted to ‘‘creative capital’’ as a key source of growth with work by Florida (2002a,b). Florida argues that it is a particular type of human capital that is significant in growth of cities and regions, which he terms ‘‘creative capital’’. This is the knowledge provided by creative professionals working in fields such as science and engineering, finance, law, health care, architecture and design, education, arts,

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music and entertainment who engage in the production of knowledge or in complex problemsolving. Although creative industries promote economic growth in their own right by providing labor and profitable products, Florida argues that creative industries also have a secondary effect in attracting highly innovative, technology based industries to that location. Knowledge workers with high human capital are typically also attracted to locations where their cultural needs will be satisfied. For example, we believe it is no coincidence that three of the locations in the US with greatest demand for opera are New York, San Francisco and Seattle where there also happens to be high concentrations of a highly educated workforce in high technology industries in the vicinity. However, in line with a growing body of research in urban studies (Howells, 2002), we suggest that it is not just creative capital but tacit knowledge that is key to growth of cities and regions. The concept of tacit knowledge is now a familiar one in knowledge management research and generally refers to knowledge that is not explicitly codifiable (Polanyi, 1967). Within strategic management the focus has been on the increasing importance of tacit knowledge as a valuable resource in economic competition (Spender, 1996; Grant, 1996; Liebeskind, 1996). Researchers such as Nonaka (1994) have identified the importance of tacit knowledge transfers in work groups working in close proximity as being key sources of competitive advantage in many firms while Kogut and Zander (1993) argue that the main raison d’o˜tre for MNCs is that they are more able to efficiently transfer tacit knowledge than rival forms of organization. We believe that a similar argument applies to knowledge transfer within cities. Following Kogut and Zander (1993) we view cities as social communities that serve as efficient mechanisms for the creation and transformation of knowledge into economically rewarded products and services. Cooperation within a community leads to a set of capabilities that are easier to transfer within that community than across communities. These capabilities consist as well of the capacity to grow and develop through the recombination of existing elements of the knowledge of the firm and its members. An industrial system is created when, through repeated interactions, individuals and groups develop shared understandings that allow the translation of ideas into production and the creation of markets (Chen, 1997). It is this system of tacit knowledge transfer from idea creation to production which we believe lies at the heart of successful knowledge-based cities. Teece (1977) found that the principal determinants of costs of transferring knowledge are the degree of previous experience with transferring the technology, the age of the technology, and the number of firms using similar technologies. As Kogut and Zander (1993) note these factors can be tied to a common latent factor involving the codification of knowledge or how tacit the underlying knowledge is. Since older technologies are often better codified, they are less costly to transfer. Experience with the technology again points to the important relationship between the current state of knowledge and learning capabilities of the adopter.

Science parks While the clustering of firms and knowledge transfer in a particular location often occurs without external intervention, in many countries one of the means by which this process has been encouraged intentionally is through the establishment of science parks in or near to the city. The concept of science parks was initiated at Stanford University, where the science park functioned as an interface turning R&D outcomes from the university laboratory to market. Thus, a key characteristic of a science park is that it should cover the integration of technical innovation and industrial manufacturing. A number of studies have suggested that science parks should extend close links with adjacent universities and research institutes in developing

view cities as social communities that serve as ‘‘ We efficient mechanisms for the creation and transformation of knowledge into economically rewarded products and services.

’’

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R&D and innovation competence. They should also link closely with local industries in order to convert the R&D into economically useful products. The knowledge flow between industries and science parks has been elaborated into a model by Monck et al. (1990), i.e. the so-called linear model of innovation: Theoretical science (universities) ! Applied science (research institutes) ! Technological implementation (manufacturers) ! Market However, the literature on the actual performance of science parks shows mixed results. Storey and Tether (1998) argue that, with the exception of those in France, the science parks in Europe have made only a modest direct contribution to employment and the contribution to technology transfer was difficult to assess. Massey et al. (1992) argue that many science parks are primarily a form of prestigious real estate with few productive synergies generated and geographical proximity between a university and a science park seems to account for very little in promoting technology transfer. Similarly Westhead and Storey (1995) found that although a number of firms have located on a science park in order to be close to a university, the extent to which these university-industry links existed was less than that anticipated. This finding is also supported by Vedovello (1997) who shows, through a comparative analysis, that geographical proximity between partners is not an important influence for the existence or strength of formal links between university and industry. Although there are many possible reasons why some science parks fail, one of the reasons is a failure to establish the crucial link from so-called ‘‘creative activities’’ such as concept generation and design to production. Using the example of Hsinchu Science Park we show how its has successfully combined three processes: (1) local knowledge creation; (2) transfer of tacit knowledge from Silicon Valley in California; (3) transfer of that knowledge into production facilities in Taipei to create a self-sustaining learning system (Scheel, 2002).

How Hsinchu Science Park exploits knowledge Unlike many other countries that have set out to create science parks within the private sector, Taiwan by contrast set out to create its core high-technology capabilities within the public sector, and then to use these institutions, such as the Industrial Technology Research Institute (ITRI), as the engines of rapid diffusion of technological capabilities to the private sector. The Taiwanese approach also departed from the conventional view that sees industrial innovation in terms of new firms developing new products or processes. Instead the Taiwanese jumped to the second stage, namely, the diffusion of the new product or process knowledge to other firms. What they created was an institutionalized innovation system linked directly to the world’s most advanced centers of technology. The key elements of this system include: J private sector firms-both small and large; J public sector research institutes and infrastructure; J government regulatory and coordination agencies; and J inter-organizational structures, e.g. trade associations and product development consortia. The most significant state-directed infrastructure project in Taiwan to date has been the development of Hsinchu Science Technology Valley, situated between Hsinchu City and Hsinchu County, 15 minutes by car from the center of the city. In terms of the role of public policy and government, the Hsinchu Science-based Industrial Park (HSIP) is similar to the successful cases of Antipolis in Southern France and Cambridge Science Park (Garnsey and Cannon-Brookes, 1993), in that the Taiwanese government, working closely with domestic companies, encouraged foreign companies to develop their technology in the Hsinchu district (Pack, 2000). But unlike Antipolis and Cambridge Science Park, which encouraged welldeveloped technology companies to locate there, the Taiwanese government, on the contrary, set out to create their own comparative advantage where none had existed.

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That the system works can be seen in the R&D and sales figures. In 2001, 2,991 patents from Hsinchu’s 335 companies were approved. Meanwhile sales grew by 4.2 percent and firms created revenue of around US$30 billion. The contribution is particularly significant in semiconductors, where Hsinchu contributes almost two-thirds of semiconductor revenue in Taiwan. The phenomenal success of HSIP lies in a combination of processes that create and transfer knowledge into production (see Figure 1). Local knowledge creation Within a radius of two miles, HSIP can easily gain access to two universities with sound reputations in engineering (National Chiao-Tung University and National Tsing-Hua University); an advanced research unit (Industrial Technology Research Institute, (ITRI)); and interchanges of the two major freeways. These not only act as a source of new ideas that can serve local businesses but provide a regular supply of students to universities overseas, mainly in the US, many of whom later return to start up new businesses or to invigorate the local research. Transnational knowledge transfer The second crucial factor in the growth and success of Hsinchu has been the transnational network of entrepreneurs linking the USA and Taiwan (Saxenian, 2002). Talented Taiwanese immigrants who have studied and worked in the USA are increasingly reversing the ‘‘brain drain’’ by returning to their home countries to take advantage of promising opportunities there. During the 1980s Taiwan sent more doctoral candidates in science and engineering to the USA than any other country. In the late 1980s, many of these US-educated engineers began to return home, attracted by active government recruitment and rapid economic development. These returning US-educated engineers have the professional contacts and language skills to function effectively in both Silicon Valley and Taiwan and often regularly commute between the two. By locating HSIP close to the international airport (within 45 minutes by car). Hsinchu Science Park offers a range of incentives to encourage returning entrepreneurs such as fiscal incentives for qualified technology investments and provided returnees with preferential access to scarce, high quality housing and to the only Chinese-American school in Taiwan – both of which are located on the Park grounds. From the other side, the Park is attractive to companies from the USA in part because of its location, which was close to the headquarters of Taiwan’s leading public research institute, ITRI, and its subsidiary, the Electronics Research and Service Organization (ERSO) which in the 1980s spearheaded a technological leapfrogging through the government-led acquisition of semiconductor manufacturing technology from the USA (Mathews 1997).

Figure 1 The knowledge creation cycle in Hsinchu

USA

LOCAL KNOWLEDGE CENTRES

NEW TECHNOLOGY BUSINESSES

PRODUCTION FACILITIES

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These transnational networks provide an important mechanism for the diffusion of tacit knowledge across borders and the creation and upgrading of local capabilities – one that is distinct from, but complementary to, global production networks. As engineers travel between the two regions they carry technical knowledge as well as contacts, capital, and information about new opportunities and new markets. Moreover, this information moves almost as quickly between these distant regions as it does within them because of the density of the social networks and trust within the community. These transnational ties have dramatically accelerated the flows of skill, know-how, and market information between the two regions. In addition, they frequently coordinate relationships between the network flagships and suppliers, ranging from helping to identify appropriate original equipment manufacturer (OEM) suppliers to facilitating the ongoing (and often face-to-face) inter-firm communications required to keep up with the rapid pace of change in the industry. Knowledge transfer into production The final critical process is transfer of the new knowledge into productive activities. Here the proximity to the city of Taipei is not only beneficial to HSIP for so-called proximity to innovative milieu and convenient recruitment of skilled labor, but also critical to the production links made with existing electronic firms in Taipei. This integration of up-stream and down-stream industries significantly reduces the transaction costs as shown most clearly in the semiconductor industry. This networking has also been encouraged by the close relationship between state and local businesses. Government policies have protected local businesses from foreign competition and encouraged cooperation and sharing of knowledge between firms. As Hage and Hollingsworth (2000) argue, the strength of interconnectedness among the diverse actors in such networks has a direct impact on the knowledge transfer and innovation that occurs. In the case of Taiwan, the close relationships between partners have been key to the success of many firms. For example, as Skoggard (1996) describes in his study of the Taiwan shoe industry, social relationships have been key factors in the success of the Taiwanese industry. Similarly, as Jou and Chen (2002) show in their analysis of interfirm networks in the integrated circuit industry, one of the ways that Hsinchu has been able to keep the region open and dynamic is through both strong and weak ties between firms in the region. These are more than just vertical integration but a network organization encompassing firms in all parts of the industry. Another factor has been the use of advanced information technology (IT), which facilitates real-time information flows and functional coordination across organizational and national boundaries (Chen, 2002).

Implications As the example of Hsinchu shows, public policy can play a significant role in creating knowledge-based cities by creating an environment that attracts knowledge workers. However, in order for these knowledge workers to create wealth, a system to convert tacit knowledge into productive processes as well as a system to create knowledge is required. Many science parks have failed to live up their expectations because they failed in this critical step of the knowledge conversion process. Others have succeeded in converting knowledge into production but failed to create knowledge and become merely production sites for creative companies located overseas.

Conclusions Knowledge-based cities will play an increasingly important role in future business and science parks can play an important role transferring new ideas into production. If successfully leveraged, these cities will serve as a source of ‘‘new value creation’’ for today’s organizations. Creation of knowledge-based cities lies in three interrelated processes that create and transfer tacit knowledge: (1) local knowledge creation; (2) transfer of knowledge from external sources; and (3) transfer of that knowledge into productive activities.

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Ba for knowledge cities: a futuristic technology model Muhammad Naveed Baqir and Yunus Kathawala

Muhammad Naveed Baqir is an Assistant Professor and is currently on study leave from University of Management and Technology in Pakistan. He is pursuing a degree in technology management from the School of Technology at Eastern Illinois University, Charleston, IL, USA ([email protected]). Yunus Kathawala is a Professor in Lumpkin College of Business at Eastern Illinois University, Charleston, IL, USA ([email protected]).

Abstract Aims to develop a knowledge city model by constructing knowledge homes using futuristic technology building blocks that can help in implementing the concept of virtual Ba to share, manage, and create knowledge. A variety of research organizations and forums are researching new technologies for better connectivity, contactivity, and computational power to manage knowledge. In this paper, a knowledge city model has been developed based upon five important technological components leading to knowledge sharing/creation for knowledgeable citizens. The model also sheds light on how it may cater to the educational, socio-cultural, business and governmental needs of knowledge cities. Amalgamation of different technologies is indispensable to managing the knowledge of a learning organization. This type of technology integration leads to increasing amounts of data, and intensifies the pressure of information overload upon knowledge workers. The growing network usage also upsets network models, putting remarkable pressure on bandwidth requirements and network management. The technologies used to build a knowledge city address these issues by developing a smart knowledge network. This is not an exhaustive review of various technologies used to construct a knowledge city model, but it is a useful resource for knowledge managers, technology managers, and planners who are interested in exploring promising technologies to manage knowledge. This paper combines the latest technologies to build a knowledge home that is aimed towards implementing Ba in a knowledge city. The paper also introduces the concept of virtual Ba by unifying the traditional Ba and knowledge management technologies. Keywords Knowledge management, Learning organizations

Introduction Education, culture, economy, government, religion and environment are some of the important common threads of the technological advancement of complex human social structures (Reynolds and Cutcliffe, 1997). Technology has played a role in transforming societies into smart, flexible, learning, and knowledge-creating societies. Traditional approaches to study the impact of technological, organizational and structural aspect of society results in yet more sophisticated and advanced frameworks. With advancement in technological, ethnological, theological and topological structures, frameworks become limited and potentially inadequate in catering to the requirements of the transformed society (Nakanishi et al., 2003). These challenges must be faced to help transform the ever-changing human, social and technological environments. The Internet has revolutionized the everyday life of individuals. Education, culture, economy, government, religion and environment are being redefined as they assume new meanings.

DOI 10.1108/13673270410558828

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Strategies and policies of business organizations are constantly changing in order to accommodate the shift in paradigms. Concepts of management are entering into the fifth generation of the management model. ‘‘The basic economic resource is no longer capital, nor natural resources, nor labor. It is, and will be, knowledge’’ (Drucker, 1994). E-learning and virtual communities are changing the traditional concepts of education and culture. Electronic banking and electronic government infrastructures are becoming less expensive resulting in better, faster and more reliable services for businesses and people. Community networks and software applications, visualization and mobile technologies, social interaction and communityware (Toru and Katherine, 2000) are transforming societies into smart, continuously learning societies. The importance of knowledge management and creation, in the face of such exponential growth of information is not simply an exaggeration but a reality (Bailey and Clarke, 2000). Every aspect and common thread of technological development possesses knowledge in itself and there is a need to assure that this knowledge is not only well managed, but new knowledge is constantly being created. On one hand, the amalgamation of different technologies is indispensable to accomplishing various tasks of managing knowledge to allow the transformation of societies into smart learning ones. On the other hand, the increasing amount of data (online and offline) is posing new challenges in managing knowledge and being effective in attaining a competitive advantage (Styhre, 2003). From the societal point of view, the increasing amount of data intensifies the pressure of information overload. From network standpoint, growing usage upsets network models and puts increased pressure on bandwidth requirement and the ability to manage these networks effectively. As the volume of data grows, futuristic technologies are desirable to better combat the threats of data overload and capabilities to meet knowledge management requirements (Tiwana, 2000). This paper has been organized into three major sections. The first section discusses the significance of Ba in managing knowledge and a knowledge home model. The section also relates the concept of Ba, virtual Ba and knowledge home to the knowledge cities model. The second section gives an overview of the five futuristic technologies, which will serve as the building blocks of the knowledge city model. The five technologies are: (1) intelligent agent; (2) semantic Web; (3) Web services; (4) Ontologies and ontology based systems; and (5) global computational grid. The last section consists of a discussion of a knowledge city, concluding with a summary.

Ba, virtual Ba and knowledge management Knowledge creation is bound to put information into a certain context. Nonaka et al. (2000) note that knowledge creation is necessarily context dependent in terms of who and how individuals participate. Knowledge needs a physical context. The concept of providing a shared context is one central premise that is usually overlooked when selecting technologies for building knowledge management and sharing systems (Fayard, 2003). This concept is significant to the modeling of a knowledge home and a knowledge city. This shared context of knowledge is achieved by Ba (Nonaka et al., 2000), an important notion to knowledge management and creation. Ba is a Japanese word, which means a place or a platform. Knowledge is created when information is put into context e.g. when people gather in a meeting room and share their knowledge to solve a problem, they are providing a shared context to create new knowledge. The meeting place such as town hall, senate, assembly or a similar physical platform provides Ba to the citizens for solving their social, economical, educational or political problems. These physical places provide Ba by giving the citizens a shared context of knowledge management and creation. Therefore, Ba is an important concept for knowledge management. A knowledge cities model, in the absence of Ba, will be of a little value to its citizens. The citizens will

model of a knowledge home is a basis for a ‘‘ The knowledge cities model. ’’

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consistently need Ba for their everyday needs of education, socio-cultural interaction, economy, business, politics, government, religion and environment. Technologies can give an alternative to the physical platforms that provide Ba for example, Internet activities; audio and video conferences provide a virtually shared platform to the participants. Virtual Ba can be introduced by combining the concept of Ba with the virtual context provided by information and communication technologies. If the quality of virtual Ba is equivalent to the Ba of a physical meeting place then an ideal knowledge city can be modeled. However, the quality of virtual Ba, is not comparable to the quality of Ba available in a physical environment. In knowledge cities technology model, selection of technologies is aimed at meeting this challenge. Therefore, this aspect is crucial in the selection of an appropriate technology model for a knowledge city. Polanyi (1966) has pointed out two dimensions of knowledge, i.e. tacit and explicit. Explicit knowledge is formal, systematic and precise; whereas tacit knowledge is difficult to formalize and express, offering low precision. The tacit dimension of knowledge has to be combined with the explicit dimension to achieve the process of continuous knowledge management, sharing, creation and verification. Figure 1 shows the relationship between information and knowledge. Without Ba, sharing and creating knowledge has little meaning. The knowledge cities model has been developed with this consideration as a priority. This technology model will meet the educational needs and determine the quantity and quality of socio-cultural interactions of citizens. It will also play a major role in the economical, political, governmental, religious and environmental aspects of the citizens. Major characteristics of such a model includes community computing, community networking, collaborative work sites, digital meeting places, electronic educational settings, social informatics, spatial information processing, virtual communities, and visualization. The model of a knowledge home is a basis for a knowledge cities model. Knowledge networking of knowledge homes will result in a knowledge city, which will consequently give birth to the concept of a knowledge world. In this paper, the discussion is however, limited to a knowledge home and a knowledge city. The knowledge home appears to be somewhat complex due to its formation, multiple roles, interests and many other coordination issues that contribute towards providing a shared platform for managing and creating knowledge, i.e. Ba. It needs to involve many interdisciplinary and complementary fields as a basis for large, multidisciplinary collaborative efforts. The research, innovation and commercial activities should be embedded in an environment, which has all the functions of a knowledge city. These

Figure 1 Shared context, ‘‘Ba’’

Knowledge

Explicit Knowledge

"Ba": Shared Contexts based on Circumstances and

Semantics Raw Data

Information

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knowledge cities need to have a provision for distributed problem solving. On one hand, this model presents a remedy for the problems being faced by data and information overload; on the other hand it combines the best of the futuristic research in communication systems development.

A knowledge home The knowledge cities model consists of a basic unit referred to as a knowledge home. This knowledge home needs a futuristic foundation for its computation, connectivity and contactivity requirements. Pillars of this home use novel technologies to support the computational needs of knowledge systems to build using a groundbreaking knowledge sharing and management system. These technologies include intelligent agents, semantic web, Web services, ontologies and global computational grid. These knowledge pillars are futuristic applications that need to communicate with each other to give birth to a unified and shared context of knowledge. The roof of this home, resting upon the knowledge pillars, demonstrates the provision of the shared context, Ba. This revolutionary home needs a new socio-cultural structure, which has been represented as the rooftop of such a knowledge home. Figure 2 illustrates such a knowledge home in a knowledge cities model The following sections elaborate the basic building blocks of a knowledge home. This home consists of self-healing, self-managing and self-aware technological components and can take care of the coordinative and cooperative distributed problems. Networking of these knowledge homes will result in knowledge cities. These cities can take full advantage of the seven levers of competitive advantage, as described by Skyrme (1999).

Intelligent agents Citizens in knowledge cities will use emerging technology tools such as intelligent physical agents and/or software components that work without the assistance of users by making choices on behalf of their owners[2, 3]. The choices are based on rules of behavior that knowledge home developers will identify and build into the software. As an alternative

Figure 2 A knowledge home

Socio-Cultural Structure Shared Social Context for Education, Politics, Society, Economy, Government,

Computational Global Grid

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Web Services

Intelligent Agents

Semantic Web

Ontology Based Systems

approach, new tools can also be developed such as robots or programs that have the ability to act autonomously on their user’s behalf, learn from experience, and collaborate with other agents to achieve a common goal[12]. These are some of the essential properties for an effective knowledge management system. Agents can also be storage and retrieval tools, which routinely scan networks and systems for information meeting specified criteria, putting the data and information into context. Thus giving it a meaning and converting it into knowledge[16, 17]. Intelligent agents have properties that distinguish them from conventional software programs. Based upon autonomy and bounded rationality, intelligent agents can act intentionally. They also exhibit what is referred to as social capabilities, i.e. their ability to be aware of other agents, to relate themselves to and interact with their environment, and form groups and coalitions. Real differences between software agents and human beings cannot be associated in general; this is quite different to the situation where agents act on behalf of a formally constituted body, e.g. an enterprise. In such cases, agents may adapt themselves to formal roles, and they may perform activities in order to contribute to the aims and goals of the embedding company. Numerous examples indicate that the difference between observable human behavior and observable agent behavior is decreasing for instance, it is already not possible to clearly identify whether information, a message, or an e-mail arriving at a local desktop has been generated and sent out by an agent or by a human being (Baqir and Kausar, 2002). The agents considered in this paper are part of a cognitive society. In contrast to traditional approaches in organizational and management science, however, those agents are not merely intelligent machines belonging to the technical infrastructure of the enterprise. Instead, it is assumed that the behavior of agents can only be described, analyzed, and controlled appropriately if one addresses their particular capabilities for knowledge management and problem solving strategies. This concept is central to providing shared contexts for managing knowledge in a knowledge home. Without this provision, a knowledge home and knowledge city model cannot succeed. In this perspective, agents are embedded in, related to, or associated with the organizational system of an enterprise. Hence, it seems fruitful to coordinate research in the respective disciplines of distributed artificial intelligence and organizational behavior. Until now, however, organizational theory in general, as well as societal transformation in particular has only considered transformational relationships among humans. Technical systems have sometimes been incorporated as contingent factors. Therefore, further research is needed to enhance this technology because it is one of the most important technologies required to achieve Ba. This is why this technology is the central point in a knowledge home. Most artificial intelligent agent researchers agree that a computer program, in order for it to be considered an intelligent agent must meet certain conditions. The conditions, outlined (Wooldridge, 2000), are as follows: (1) Autonomy: the agent must use learned knowledge to automatically initiate communication, monitor events, and execute tasks to meet the objective set up by the user. (2) Adaptiveness: an agent can learn through interaction with its environment, and improve its ability to perform task over time. (3) Collaborative behavior: the ability for an agent to interact with other agents and possibly humans, by means of a common communication language, to achieve common goals. (4) Mobility: agents must have the capacity to independently migrate from one network to another network in order to complete assignments. Although some researchers do no believe mobility to be a necessary characteristic of an agent, it is assumed that agent mobility will help reduce network congestion and the burden on network bandwidth. Although an agent could possess more capabilities, these four conditions are basic to any knowledge management infrastructure. Therefore, for a knowledge cities model, intelligent agents become an ultimate component.

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Agents are effective at distributed problem solving that will be needed for an effective implementation of a knowledge home. A typical distributed problem proceeds through five sequential phases: (1) task definition; (2) task decomposition; (3) subtask allocation; (4) subtask solution; and (5) synthesis of sub-solutions into one overall result. Agents may possess a particular capability profile for example, the ability to deal with a particular type of financial service, or to efficiently operate an electronic market. As problem types are key ingredients of societal and organizational design, this perspective provides a possibility to embed agents into the organizational system of a society or an enterprise (Klusch, 1999). In order to organize the process of distributed problem solving, three types of roles can be suggested for knowledge home agents: managers of a task, bidders, and contractors. Typically, agents may apply not only to one role, but to all three roles simultaneously. This relates to the basic level of coordination. Until now, many agent system designers have used such role concepts for longterm coordination in their systems[23]. An agent may act as a provider, as a consumer of financial services, or as a mediator in the market as it relates to the life of a knowledge cities citizen. Intelligent software agents may also apply to any of these roles at any time. This reveals that in organizational and societal theories, roles refer to the definition of expected behaviors of a member of a society, be it human or agent. Therefore, the concept of roles relates agents to a social system of organizations. It provides flexibility in defining agents for different purposes, and is yet another important aspect of knowledge management infrastructure. How and when will these intelligent software agents be available for service? The answer is, even today such agents are available. Although these agents are not perfect, they exhibit a glimpse of what the future holds in this technology. Search agents can have a query-search utility for a database with millions of uniform resource locators (URLs). Such agents usually have a database which is generated when an agent wanders the Web in search of new URLs. Web crawlers are examples of such agents working today but these are merely a shadow of what will be available in knowledge cities. For example, Microsoft Office assistant[29] presents a primitive and basic form of what the future holds. These agents will be highly personalized software components, able to monitor the behavior of their users. Even with current technologies, such nearly intelligent agents can be fairly implemented. Improvements in voice-recognition technologies are the most obvious weak point in this type of system. Even without 100 percent voice-recognition in the next five years (which seems unlikely), primitive agents appearing on desktop computers can be seen, eliminating the need for users to perform repetitive, routine tasks over and over again. With the anticipated improvements in voice recognition, technology will have progressed to a point where it is used in everyday computing. Thus, advances in technology would lead to an increased usage of intelligent agents in knowledge management applications. Apple’s Knowledge Navigator vision may seem farfetched at first, but may actually be partially developed in this time frame[30]. On the educational fronts in the knowledge cities, the ability for a computer to interact with a student to present information and teach new topics would have a dramatic effect on the educational system. An agent could be much like a personalized tutor, noticing when students are having troubles with a topic, or when they might be able to skip ahead to newer material. Personalized education could well be on its way into the lives of knowledge citizens. Likewise, other technological threads are supported well with these technologies. Research indicates that work on social agents is still in its infancy, which is a step towards a knowledge home and knowledge city implementation (Dautenhahn et al., 2002).

Semantic Web The Internet provided various services such as file transfer protocol (FTP), gopher, news, and email with its inception. In 1989, the World Wide Web (WWW) service was introduced. This service was designed as an information space, with the goal of providing human-human communication on the Internet via hyperlinks. WWW has the capability to connect to databases but, agents require training in order to understand the structure of the data and to behave like humans. Therefore, machine-machine communication and manipulation cannot be achieved easily without training agents. This problem is addressed in semantic Web by developing agent communication language for expressing information in a machine process-able form[4]

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(Daconta et al., 2003). Tim Berners-Lee, known to be the father of WWW, coined the term semantic Web. Semantic Web promises the future Internet as a web of data, like a global database with well defined semantics (Ba to some extent) built into it (Berners-Lee et al., 2001). The infrastructure of the semantic Web would allow machines as well as humans to make deductions and organize information. The architectural components include: (1) semantics i.e. meaning of the elements, (2) structure i.e. organization of the elements, and (3) syntax i.e. communication (Davies et al., 2003). In today’s WWW, information is mainly presented for human users, but for a knowledge city, agents will be needed to read information from the Web or other resources to make decisions based on the criteria provided by the knowledge city citizens. The semantic Web, as envisioned by Berners-Lee et al. (2001), promises to make the hyper-textual information presented to the human users available as computable data by making explicit, the underlying structure. The semantic Web can be a visual presentation of significantly related words and concepts. It is an extension of the current Web in which information is given well-defined and precise meaning, better enabling computers and people to work in cooperation. The semantic Web is a collaborative effort led by the World Wide Web Consortium (W3C) with participation from a large number of researchers and industrial partners[19, 24]. It is based on the resource description framework (RDF), which integrates a variety of applications using XML (Extensible Markup Language) for syntax and URI (Universal Resource Identifier) or URL for naming. While search engines, which index HTML (Hyper Text Markup Language) pages, find many answers to searches and cover a huge part of the Web, they return many inappropriate answers. There is no notion of precision to such searches. This problem needs attention and without a solution to this problem the knowledge home dream cannot be realized. Logical engines have typically been able to restrict their output to correct answers, but have suffered from the inability to search through the mass of available data for constructing valid answers. The combinatorial explosion of possibilities to be traced has been intractable. However, the scale upon which search engines have been successful may require reexamination of basic assumptions in implementing a knowledge home. If a future engine combines a reasoning engine based upon semantics, it may be able to get the best of both worlds, and actually be able to construct proofs in a certain number of cases of real impact. It will be able to reach out to indexes which contain complete lists of all occurrences of a given term, and then use logic and semantics to weed out all except those that can be of use in solving the given problem. Therefore, combinatorial explosion is inevitable. However, using a few inferential steps to build smart and semantic Web for a knowledge city can solve many problems. These steps may involve making caches of intermediate results analogous to the search engines’ indexes of today (Davies et al., 2003). WWW provides a wide variety of services. The knowledge city’s semantic Web aims at multiplying this versatility a thousand fold. For some, the defining feature of the semantic Web will be the ease with which personal digital assistant, laptop, desktop, servers, and cars will communicate with each other. For others, it will be the automation of corporate level decisions that previously had to be laboriously hand-processed using computers and networks or the WWW. For still others, it will be the ability to assess the trustworthiness of documents on the Web and the remarkable ease with which answers can be found for the inquiries of knowledge city citizens. Though there might not be a machine which can guarantee answers to arbitrary questions, the power to answer real questions may be quite remarkable. Due to the ability to present information with semantics, semantic Web has been selected as one of the basic and important pillars of the everyday life of knowledge citizens.

Web services Currently, information exchange between applications is cumbersome. The knowledge city needs application integration to be able to share information to create knowledge. Knowledge applications should have custom interfaces developed for inter-application communication. This is not enough for a knowledge city model; there is a need for something more. The

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introduction of XML is an important step in simplifying the application integration process and coping with this problem. XML enables the separation of data content exposed over the Web from its presentation[31]. A predefined markup language like HTML defines a way to describe information in one specific class of documents. XML, on the other hand allows new customized markup languages for different kinds of documents. This implies that data can be easily exchanged, not only among humans through Web browsers, but also among computers. More importantly, XML has been widely accepted as the universal language for exchanging information over the Web and is a public format. As a result, standards for specific functions based on XML or XML-based standards can be developed for a knowledge city[5]. Web services have emerged as the next generation of Web-based technology for exchanging information. Web services are modular, self-describing, self-contained applications that are accessible over the Internet. Based on open standards, Web services will enable knowledge home developers to build Web based applications for any platform, object model, or programming language that they might require. Web services allow any piece of software to communicate with a standardized XML messaging system. The modularity and flexibility of Web services make them ideal for application integration for a knowledge home. Functionality of these Web services may vary significantly. They might perform anything from simple tasks of computation to complex tasks of idea exchange and knowledge creation in a knowledge city. Once a Web service is deployed, other applications and Web services can discover and invoke that service. These applications are interoperable software components on the Web. Web services achieve a higher level of commonality than has previously been available[10]. Web services require four types of protocols for their functionality, i.e. XML, SOAP (Simple Object Access Protocol), WSDL (Web Service Definition Language), and UDDI (Universal Description, Discovery and Integration). XML and SOAP are probably the two most important protocols. The idea behind SOAP is to have a standard way of accessing objects on any system that supports this protocol. XML is simply a standard way of structuring the text that passes between these objects. SOAP based objects understand XML in a similar manner as the Internet browsers understand HTML resulting in a process called XML Remote Procedure Call (RPC). Web services are software powered resources or functional components whose capabilities can be accessed through a URI. Standards based Web services use XML to interact with each other, allowing them to link up on demand using loose coupling (Daconta et al., 2003). With all of these benefits, Web services are reusable, ubiquitous and consumable software components used by both humans and computers. Therefore, they become a crucial choice as a pillar of the knowledge city model.

Ontology and ontology based systems Ontologies, as they are referred to in computer science literature, are probably the best way of developing knowledge management and sharing systems[10] (Welt, 2003). In the context of knowledge sharing, ontology means a ‘‘specification of a conceptualization’’ or specification of a concept[13]. Ontology is a description of the concepts and relationships that can exist for humans or software agents. This definition is consistent with the usage of ontology as a set-ofconcept-definition, but more general. Ontologies have been used for the purpose of knowledge sharing and reuse[14]. In this context, ontology is a real specification used for making ontological commitments. In other words, ontology can be a set of definitions of formal vocabulary. Therefore, it is important to have shared meaning of concepts in a knowledge city. Without such a mechanism, a knowledge city model cannot be successful in achieving the shared context of knowledge creation and management. Although this is not the only way to specify conceptualization, ontologies have some properties for knowledge sharing among software components; semantics, independent of reader and context. Practically, an ontological commitment is an agreement to use a vocabulary. Software agents in knowledge homes will be built to use ontologies. Design of these ontologies would provide knowledge sharing capabilities to the fullest extent of their potential with and among knowledge city citizens and their intelligent agents. Thus, it provides a shared context of Ba for managing and sharing knowledge.

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global computational grid is the foundation of a ‘‘ The knowledge home and city. ’’ From a technical stand-point, when the knowledge of a domain is represented in a declarative formalism, the set of objects that can be represented is called the universe of discourse. This set of objects, and the describable relationships among them, are reflected in the representational vocabulary with which a knowledge based program represents knowledge. Thus, ontology can be described by defining a set of representational terms. In such ontology, definitions associate the names of entities in the universe of discourse with human readable text describing what the names mean, and formal axioms that constrain the interpretation and well formed use of these terms. Pragmatically, a common ontology defines the vocabulary with which queries and assertions are exchanged among human users or agents. Ontological analysis clarifies the structure of knowledge. Given a domain, its ontology forms the heart of any system of knowledge representation for that domain. Without ontologies, or the conceptualizations that underlie knowledge, there cannot be a vocabulary for representing knowledge[6]. With all these benefits in hand, the best choice to build underlying knowledge management systems appears to be an ontology based development. Ontologies are the logical choice for creating shared meaning of concepts thus achieving shared context, Ba. This shared vocabulary avoids the problems related to interpretation of concepts into other forms and formats. A consistent ontology is a stepping stone towards an effective knowledge management model.

Global computational grid The global computational grid is the foundation of a knowledge home and city. Grid computing is an ambitious global effort to develop an environment in which individual users can access computers, databases and experimental facilities simply and transparently, without having to consider where those facilities are located[7, 8]. Grids are clusters of servers joined together over the Internet using standard protocols and other open technologies[9]. This allows widely dispersed societies and organizations to share applications, data and other computing resources[22]. Grid computing is a means of network computing that harnesses the unused processing cycles of numerous computers. It solves intensive problems that are often too large for a single computer to handle, such as in life sciences or climate modeling. This distributed computing environment operates as a uniform service, looking after resource management and security independent of individual technology choices. Grid computing promises virtualization of distributed computing and data resources (such as processing, network bandwidth and storage capacity) creating a single system image, granting users and applications seamless access to vast information technology capabilities. Just as an Internet user views a unified instance of content via the Web, a grid user essentially observes a single, large virtual computer. Such a tremendous computing power will be limited only by imagination of the knowledge city citizens. It is similar to a global supercomputer providing access to every knowledge citizen for usage. At its core, grid computing is based on an open set of standards and protocols for example, open grid services architecture (OGSA) that enables communication across heterogeneous, geographically dispersed environments. With grid computing, organizations can optimize computing and data resources, pool them for large capacity workloads, share them across networks and enable collaboration[8]. In fact, grids can be seen as the latest and complete evolution of more familiar developments; such as distributed computing, Web, peer-to-peer computing and virtualization technologies. Grid computing keeps complexity hidden and multiple users enjoy a single, unified experience. It not only enables communication but also provides full collaboration towards common goals. These are compelling reasons towards making grids the underlying infrastructure provider to a knowledge city. In addition to providing electric power, computational power is also needed in a knowledge city. This grid is similar to the traditional power grid in the sense that users are not

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concerned about where this power is coming from and how it is being generated. Analogous to an electric power grid, a computational grid aims to couple geographically distributed resources providing consistent and inexpensive access to resources irrespective of its physical location or access point. A grid is capable of providing peer-to-peer computing services allowing users to share resources; another important aspect of knowledge management and creation. This sharing of resources is not limited to two people using the same resource, it will allow users to connect many-to-many resources and harness the potential of such an infrastructure. Grid computing not only enables the virtualization of resources but, also the virtualization of vast and disparate information and communication resources. The growing popularity of the Internet, along with the availability of powerful computers and high-speed networks as low-cost commodity components, is changing the way computing is done today. Grid computing enables the clustering of a wide variety of geographically distributed resources such as supercomputers, storage systems, data sources, and special classes of devices, allowing them to be used as a single unified resource[7]. Without this kind of connectivity, communication technologies and ontological systems development, the dream of a true knowledge city cannot be achieved. Thus a computational grid is important for providing computational resources for a knowledge city.

A knowledge city The knowledge home has the ability to provide knowledge management and creation, to meet the needs of knowledge citizens. By combining the building blocks and technological pillars of a knowledge home, an abstract model of a knowledge city can be constructed. Figure 3 illustrates a model outlining knowledge homes and buildings linked through a knowledge network. The knowledge network consists of knowledge hubs incorporating the underlying building blocks of a knowledge city.

Summary This paper has identified developing, supporting and promising technologies for the knowledge cities model. This model provides a structure for a knowledge home with multiple interactive

Figure 3 A knowledge city

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knowledge network consists of knowledge hubs ‘‘ The incorporating the underlying building blocks of a knowledge city. ’’ entities, interests and coordination. These multiple entities and the interaction between their interests may lead to many issues of coordination that need careful planning. It also needs world class science in several complementary fields as a basis for large multidisciplinary collaborative efforts. The research and innovation activities have to be embedded in a milieu, which has all the functions of a global city. These knowledge cities will belong to a global network of social community. Knowledge cities can be materialized with the characterization of proximity between research, commercial activities and city life. Some of the expected gains of such development will include more interdisciplinary research and new innovations, lower transaction costs, more efficient use of science and technology and discoveries relevant to innovation. The technology model of knowledge cities caters to the common threads that connect the knowledge homes with the knowledge citizens. These include education, socio-cultural interaction, economy, business, politics, government, religion and environment. This model also fulfills the needs of community computing, community networking, collaborative work, digital meeting places, electronic education, social informatics, spatial information processing, virtual communities, virtualization and visualization. Therefore, a knowledge home can be an effective way to achieve Ba in knowledge cities. Further studies will be needed to systematically bring together relevant perspectives to develop a framework for societal transformation towards this ‘‘knowledge cities’’ model based upon the integrated concepts.

Acknowledgement Authors are thankful to Dr Francisco Javier Carrillo, Dr Rashid Kausar, Dr Farooq Ahmad, Dr Arshad Ali, Dr Mahmood Butt, Dr Larry L. Helsel and Mr M.A. Latif for providing critical reviews and suggestions for this paper.

Notes 1. www.ktweb.org 2. www.agentlink.org 3. www.agentcities.org 4. www.semanticweb.org 5. www.webservices.org 6. www.ontology.org 7. www.gridforum.org 8. www.ibm.com/grid 9. www.globus.org 10. www-ksl.stanford.edu/kst/kst-overview.html 11. www.capescience.com/education/primer/index.shtml 12. www.agentcities.net 13. http://ontogeo.ntua.gr 14. www.ontoweb.org 15. www.fipa.org 16. www.daml.org 17. www.auml.org

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18. www.mindswap.org 19. www.w3.org 20. www.digitalcity.jst.go.jp 21. www.intelligententerprise.com 22. www.ict.csiro.au/Grid 23. www.niit.edu.pk/acadamics/niit_research 24. www.hpl.hp.com/semweb 25. www.csc.liv.ac.uk/~coral 26. www.csc.liv.ac.uk/users/pepijn/kraft.html 27. http://dc.isx.com/I3 28. http://cobase-www.cs.ucla.edu 29. http://office.microsoft.com/home 30. www.apple.com/education 31. www.xml.org

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Senge, P.M. (1994), The Fifth Discipline Field Book, Doubleday, New York, NY. Skyrme, D.J. (1999), Knowledge Networking, Butterworth Heinemann, London. Styhre, A. (2003), ‘‘Knowledge management beyond codification: knowing as practice/concept’’, Journal of Knowledge Management, Vol. 7 No. 5, pp. 32-40. Tiwana, A. (2000), Knowledge Management Toolkit, The Practical Techniques for Building a Knowledge Management System, Prentice Hall, Englewood Cliffs, NJ. Toru, I. and Katherine, I. (2000), Digital Cities Technologies, Experiences, and Future Perspectives: Lecture Notes in Computer Science Series, Springer-Verlag, Berlin. Welty, C. (2003), ‘‘Ontology research’’, AI Magazine, Vol. 24 No. 3, pp. 11-12. Wooldridge, M. (2000), Reasoning about Rational Agents: Intelligent Robotics and Autonomous Agents, MIT Press, Boston, MA.

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Knowledge repositories in knowledge cities: institutions, conventions and knowledge subnetworks Philip Cheng, Chong Ju Choi, Stephen Chen, Tarek Ibrahim Eldomiaty and Carla C.J.M. Millar

Philip Cheng is MBA Program Director ([email protected]), Chong Ju Choi is a Professor of International Business and an Executive Director (chong.choi@ anu.edu.au), and Stephen Chen is a Senior Lecturer (stephen.chen@ anu.edu.au), all at the National Graduate School of Management, Australian National University, Canberra, Australia. Tarek Ibrahim Eldomiaty is a Professor at the College of Business and Economics, United Arab Emirate University, Al Ain, UAE ([email protected]). Carla C.J.M. Millar is a Professor of International Marketing and Management at the University of Twente, Enschede, The Netherlands (c.millar@ bbt.utwente.nl).

Abstract Suggests another dimension of research in, and application of, knowledge management. This theoretical paper adopts a conceptual, multi-disciplinary approach. First, knowledge can be stored and transmitted via institutions. Second, knowledge ‘‘subnetworks’’ or smaller groupings within larger networks can become key repositories of knowledge. The concept of knowledge ‘‘subnetworks’’ needs to be tested against empirical evidence, which should include a cross-national comparison of knowledge-based cities. The paper provides some insights to policy makers in designing or developing global cities. It is one of the few papers that discusses the connection between knowledge management and growth of global cities. Keywords Information exchange, Organizations, Knowledge management

Introduction Knowledge based assets and resources are increasingly being seen as the primary driver of competitive success for firms and countries (Grant and Spender, 1996; Choi and Lee, 1997; Love et al., 2003). Although the technology and innovation based aspects of knowledge are relatively easier to measure and value, the real long-term value of knowledge assets and resources could be in the tacit, informal aspects of knowledge. This raises the issue of capturing and transferring this knowledge. Knowledge cities play a fundamental role in such knowledge transfer. We suggest that there are two other means by which knowledge can be transferred. Another repository of knowledge is institutional. Sociologists argued that knowledge is institutional (Scott, 1995; Choi et al., 1999b) and socially embedded (Granovetter, 1985; Coleman, 1990; Burt, 1992; Choi et al., 1995). Second, we introduce the idea of knowledge ‘‘subnetworks’’ or the smaller groupings within larger networks that can become key repositories of knowledge. A vast body of research on collective ownership also shows that groups or communities driven by social bonds, and reciprocity based exchange can be limited in size (Choi et al., 1999a; Hardin, 1982; Olson, 1965; Kim and Choi, 2003) and furthermore, may need to be. Within companies, industries and communities there may be local pockets of knowledge exchange that takes place. Given the institutional (Scott, 1995) nature of knowledge, we further suggest that social conventions can play a crucial role in such knowledge accumulation. Conventions help to create the informal rules that can help the enforcement of agreements and facilitate

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DOI 10.1108/13673270410558800

communication and coordination of desired outcomes (Schelling, 1978; North, 1990; Choi and Hilton, 1999). Agreed conventions and norms can create a bridge (Bengtsson and Soderhom, 2002) across various project organizations over time. This research overlaps with the research of Granovetter (1985), Coleman (1990), Burt (1992) and others, which emphasize the importance of embeddedness in the social structure, and the role of social capital.

Institutions and knowledge cities According to traditional economics research, markets allocate resources such as goods and services, including knowledge resources. Such allocation leads to analysis of the key economic variables of prices and quantities. The focus on tangible prices and quantity levels, allows traditional neo-classical economics to avoid the issues connecting market exchange and resource allocation and social and cultural values and identities (Granovetter, 1985; Burt, 1992; Millar and Choi, 2003; Ring and Van de Ven, 1992; Choi and Lee, 1997; Nohria and GarciaPont, 1991). Social networks, like markets, also allocate resources. However, unlike traditional neo-classical economic markets, the vast literature on social networks (e.g. Burt, 1992) has shown that exchange of knowledge includes a more social and relationship-driven dimension. A key form of networks for exchange that has been identified in the literature is the institution (Table I). Institutions come in many forms and have been defined in a variety of ways (Scott, 1987). However, one succinct definition is ‘‘a way of thought or action of some prevalence and permanence, which is embedded in the habits of a group or the custom of a people’’ (Hamilton, 1968, p. 84). As Melody (1987, p. 1315) notes, ‘‘institutions reflect the patterns of interaction between and among individuals, acting within and between groups, or through formal organizations’’ and ‘‘the essence of this interaction is information’’. Institutions are thus both drivers and products of knowledge exchange. For example, Lam (2000) shows that societal institutions are inextricably linked to the flow of tacit knowledge and organizational learning. As Sydow and Staber (2002, p. 225) showed in their study of the German television industry, projects are embedded in the institutional environment. They ‘‘not only respond to existing institutions but also shape these institutions’’. We examine below how institutions facilitate and shape knowledge transfer between projects. At the heart of institutions are social conventions. Social conventions are social interpretations, norms, rules and legitimization processes that constrain action and create typical behavior patterns. In fact, ‘‘it would scarcely be an exaggeration to say that almost all economic and social institutions are governed to some extent by convention’’ (Young, 1996, p. 105). In this context conventions do not work as teleological mechanisms but as co-evolving mechanisms that create order out of uncertainty and randomness of socio-economic system behavior.

Table I Typology of institutions in business systems Institutions

Main characteristics

Courts (market)

Common law system prevalent in Anglo-Saxon countries such as the United States, United Kingdom, Australia, Canada. These court systems rely heavily on ‘‘market’’ reasoning and economic efficiency logic, which is why the disciplines of law and economics is thriving in these countries. This institution is seen as superior to the other two

Legislature (state)

The state is much more involved in civil law countries. Here, the state and legislature as well as academic scholars have a great influence on the institutions. Civil law countries include all of the world except the Anglo-Saxon countries and former British colonies. The linkage between law and economic or market efficiency is much weaker in this system

Norms (communities)

These informal institutions are based on the conventions, norms, customs of a particular community or society. Trust, and personal relations, kinship relations are crucial in these systems. In most countries, norms which are informal institutions are combined with the formal institutions of either courts, common law or the legislature and state, civil law

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Social conventions can play an even larger role in the definition of value, when there is ambiguity, intangibility, as there is in any type of knowledge based exchange (Reed and DeFillippi, 1990). There is an acceptance that conventional wisdom is right. Following Young (1996) two types of conventions can be distinguished: ‘‘formal’’ and ‘‘informal’’. Formal conventions are defined as being designed and dictated from the top. They can be considered as the summation of knowledge of those in positions of authority. Expanding on Young’s argument we believe there are two ways in which formal conventions become internalized by the population: sheer enforcement and positive predisposition. People follow formal conventions because of the enormous power that the notion of authority has over the human mind (Shiller, 2000; Kretschmer et al., 1999; Choi and Hilton, 1999). Sheer authoritative power can internalize convention, as demonstrated by the case of the French Academy of Arts in Renaissance: as soon as a painter was accepted in the ranks of the Academy and their work was accepted at the so-called Salons exhibitions the artist was immediately recognized as excellent, and only then they could have a career and reap rewards in terms of resources. In this case, there is no need for the people involved to have certain shared values or experience, but only to accept the expert knowledge of a central authority that is imposing the convention. Sheer enforcement and positive predisposition work differently. Positive predisposition seems to be able to promote the internalization of formal conventions and education can be conducive towards the establishment of positive predisposition. This is exemplified by the case of government support for the arts: the government initiative to culturally educate people – thus conditioning them to be at least positive towards the arts – has created a formal convention that drives demand for the arts. The power of positive predisposition for the establishment of formal convention is also demonstrated in the case of the French government decree to drive on the right side. This formal convention was unopposed and unanimously accepted by the French people not only because of fear of the new authority but also because people shared the common value of ‘‘democracy’’: ‘‘The previous custom had been for carriages to keep left and for pedestrians to keep right, facing the oncoming traffic. Changing the custom was symbolic of the new order: going on the left had become politically incorrect because it was identified with the privileged classes; going on the right was the habit of the common man and therefore more ‘democratic’ ’’ (Young, 1996, p. 106). This example demonstrates that the two mechanisms for internalizing formal conventions – sheer enforcement and positive predisposition – are not mutually exclusive and can work together in a self-reinforcing manner. Moreover, as Shiller (2000) has pointed out people can obey authority not only owing to an instinct of obedience, but also because people are conditioned to believe experts – they accept the judgment of somebody who they are convinced knows more than they do. We posit then that positive predisposition can be induced via expert opinion. However, the less people believe somebody is an expert they less they tend to value and follow the expert’s authority. Therefore, experts’ authority depends also on ‘‘people’s past learning about the reliability of authorities’’ (Shiller, 2000, p. 151). So as long as the authority that decrees a formal convention can convince people of its expertise, the convention survives and works. In this case, the internalization of a formal convention is conditional on the parties involved sharing certain values (in this case values regarding the reliability of experts). The case of the French Academy of Arts in Renaissance is not a case of positive predisposition via expert opinion because the French Academy, although an expert, did not need to assert its expertise as it had draconian control over the arts. In contrast to formal conventions, informal conventions are defined as emerging from the base rather than being decreed from the top. The establishment of informal conventions is rooted in the fundamental human ability to incessantly communicate facts from one person to another – word-of-mouth communication. People are very good at word-of-mouth communication of facts about everyday life (rather than abstract notions) and word-of-mouth communication has the most powerful impact on our behavior (Shiller, 2000). Informal conventions are ‘‘information cascade’’ phenomena (Bikhchandani et al., 1992), which arise when there is uncertainty in the environment and difficulty in assessing quality. Unable or unwilling to rely on their own knowledge, people rely on the knowledge of other people. For example, some investors may be

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cities are being seen as fundamental to the ‘‘ Knowledge economic growth and development of today’s cities. ’’ more willing to listen to the advice of close friends and associates as they assume they will have better knowledge than they do.

Institutions and cities as carriers of knowledge Institutions and knowledge cities serve two common functions in the transfer of knowledge. First, they serve as trusted sources of knowledge and they provide externally validated performance indices. Second, they facilitate the transfer of knowledge and the coordination of activities by other actors in the network. We examine below how institutions perform these functions. Trust is particularly important in the case of ‘‘credence goods’’ (Emons, 1997; Millar and Choi, 2003; Millar et al., 2004). These are goods whose quality is difficult to assess before or after purchase. Credence goods can be viewed as lying at one end of a spectrum determined by whether quality can be assessed before or after purchase or never. This spectrum starts with what we call ‘‘search goods’’ passing through what we will call ‘‘experience goods’’ before ending with ‘‘credence goods’’. ‘‘Search goods’’, have an intrinsic worth objectively assessable prior to purchase. An example would be lettuces, where staleness and blemishes are difficult to hide from potential purchasers. ‘‘Experience goods’’ are those where experience of use after purchase reveals quality with a fair degree of certainty. A bed or toys would be good examples. The quality of ‘‘credence goods’’ is uncertain both before and after purchase. Common examples of credence goods would be medical services, consulting advice or many luxury goods. Technically unsophisticated consumers cannot be certain of their quality even after purchase. Their value is dependent on the credence given to them by others, e.g. the designer’s or distributor’s reputation and their use by a particular set of consumers, the fashionable. Advertisers use such reputations or standing with a sub-class of consumers as a powerful part of their advertising strategy. The opulent, successful consumer, who is admired for their wealth, power, or celebrity status, endorses a product by using it and so implying it has utility to them and by inference others aspiring to their lifestyle. Formal and informal institutional networks are another source of knowledge about such credence goods (Millar and Choi, 2003; Millar et al., 2004). Coordination of the market through signals has been analyzed in great detail in Spence (1973) and Robertson and Eliashberg (1995). Milgrom and Roberts (1992) provide a more general definition of signals: ‘‘. . . signals demonstrate to others the actor’s intentions or abilities or some other characteristic about which the actor has private, unverifiable information’’. An example of a signal would be a firm’s willingness to provide a money back guarantee for its product, to signal to consumers the firm’s commitment and confidence in the product. One of the problems with signals is that they can be, manipulated by the firm, in order to provide what could be deceptive information about its invisible assets. For example, there is no guarantee that a firm’s willingness to provide money back guarantees will actually ensure good value and a high quality product for the consumer. A distinction now needs to be made between signals and, indices. A positive signal for one stakeholder, such as consumers may send the wrong signals to another stakeholder, such as alliance partners. A key issue is whether certain signals can send an undeniably effective message to all stakeholders. ‘‘Indices’’, as defined by Jervis (1985) are: ‘‘. . . statements or actions that carry some inherent evidence that the image projected is correct because they are believed to be inextricably linked to the actor’s capabilities or intentions’’.

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Examples include private messages the perceiver overhears or intercepts. In some sense, an index is a type of signal that cannot be manipulated, and is truthful in its information content. Our point is that if we make a distinction between signals and indices, such factors as a firm’s history, or past success may play a role in the information conveyed by a firm. Kreps and Spence (1984) have in their work already noted the importance of history in the role of competition within industries (Dassiou et al., 2004). The ability to use indices, also depends on a particular, or rare experience, in that there is a linkage to some aspects of past success of the firm, an experience which other competitors cannot easily imitate. As discussed by Barney (1986) and Zucker (1977), the various symbols, beliefs and values that are part of a firm’s culture will reflect the unique early history of the firm. Part of a firm’s history of course can be success in the industry, such as leading to the establishment of a satisfied client base. External commentary such as favorable commentaries in business publications create awareness, which can be used by companies in their marketing strategy (Robertson, and Eliashberg, 1995). Although the increasingly turbulent and uncertain environment has increased the importance of such external factors, the existing literature has not conceptually framed how such factors can be analyzed. We believe that the earlier distinction between signals and indices help to clarify their roles. We believe there are four major indices (Jervis, 1985) or external measurement drivers, of relevance to stakeholders, for firms in industries where quality is intangible. First, a firm’s client base is a driver of quality; the position or status (Podolny, 1993; Frank and Cook, 1995) of the particular clients, can in turn help to elevate a firm’s ranking and quality. Second, the ability and reputation for being innovative, such as developing new products, a dynamic corporate culture, are another type of index in the market place (Haunschild, 1994), affecting quality. Third, a firm’s networks, whether they be with collaborators, or with competitors can also be an index of quality in the market place. An example of this would be top ranked business schools, being competitors but holding executive programs or other conferences together in a network. Fourth, there are outside external sources of information, such as Standard & Poor indices in financial markets; consumer reports written by private organizations; business magazines and commentaries all help to serve as an index of quality.

Knowledge cities, institutions and innovation In addition to their role as carriers of knowledge, knowledge cities and institutions play another important role in coordinating efforts of actors that would otherwise not cooperate. For example, in recent years as a result of increasing competitive pressures in international product markets, together with rapid progress in science and technology, many countries have sought to establish ‘‘national innovation systems’’, that is, the linkages and interactions between enterprises, universities, specialist research institutes and other actors involved in the production, distribution and application of economically useful knowledge. David and Foray (1995) suggest that such ‘‘a system of science and technology learning . . . must be characterized by its (knowledge) ‘‘distribution power’’ as much as by its capabilities for generating new knowledge" (David and Foray, 1995, p. 22). At a national level, therefore, such networks enable knowledge transfer between projects in universities and companies and aim to contribute to building up national skills and knowledge. As Hage and Hollingsworth (2000) argue the strength of interconnectedness among the diverse actors in such networks has a direct impact on the knowledge transfer and innovation that occurs. Although most attention has been given to the concept of ‘‘national’’ innovation systems, much innovation involves knowledge transfer and exchange across national borders. International institutions such as the European Union have been instrumental in facilitating the international transfer of knowledge through various transnational research and technology programs. At the same time there is an extensive literature on the workings of ‘‘sub-national’’ (regional or local) innovation systems, which emphasizes the self-reinforcing advantages of close proximity between producers, suppliers and support services in diverse industries, which are concentrated in particular geographical areas. Recent work in economic geography and urban planning has confirmed a link between human capital and the economic growth of cities. For example, Glaeser (2000) further suggested that access to scarce human capital is a key driver for firms for clustering in a particular location; Eaton and Eckstein (1997), and Black and

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Henderson (1999) have suggested that productivity gains can occur through knowledge spillovers when people are co-located. This is particularly important in the case of tacit knowledge. This knowledge transfer may be carefully planned and institutionalized. An example is the biotechnology industry in the USA. Audretsch and Stephan (1996) found that much tacit knowledge transfer occurs through both informal and formal ties between university researchers and firms. In the case of informal ties geographic proximity was a factor. In the case of formal ties, geographic proximity is not necessary and knowledge transfer can take place across regions or countries.

Knowledge sub-networks As Frank and Yasumoto (1998) noted, one of the enduring themes in research on social networks has been the idea of a set of integrated subgroups. Actors establish primary affiliations with members of their subunit while defining their roles through ties with other subunits. Granovetter (1973) argued that networks of individuals with strong ties to each other exhibit a tendency to transitivity (If person A is linked to persons B and C in a network there is high probability that B will also be linked to C.) This facilitates the emergence of subgroups. For example, Frank and Yasumoto show how in the French financial elite, subgroups are based on the pattern of friendships. In addition to the knowledge that is exchanged in formal networks much knowledge leaks through such networks based on friendship. A vast body of research on collective ownership also shows that groups or communities driven by social bonds, and reciprocity based exchange can be limited in size (Hardin, 1982; Olson, 1965). As Oliver and Marwell (1988) show, when groups are heterogeneous, fewer people are needed to achieve a ‘‘critical mass’’. Furthermore, fewer contributors are needed where there are dense social ties (Marwell and Oliver, 1988). Thus, within larger networks, subnetworks of limited size may form. Actors in such strategic networks are linked indirectly to all other actors in the network system. This in turn develops a collective value system and social bonding towards the total network system (Blau, 1964), not just to the subnetworks. This is shown in Figure 1.

Figure 1 Knowledge subnetworks and social bonds

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These subnetworks may be informal networks. This is especially the case when the members of the network are from heterogeneous backgrounds and value systems. In today’s global business environment, successful strategic networks require actors from different countries, regions, professional backgrounds, incorporating such heterogeneity or diversity within the network. In addition to strong ties, Granovetter (1973) has also drawn attention to the importance of weak ties – those that are infrequent and extend beyond an actor’s immediate social circle – in providing access to unique influence and information. As Brown and Reingen (1987) show, these informal networks are particularly important in word of mouth referral and in facilitating the flow of information between diverse segments of the population that are not linked by strong ties. Between and within a company, industry or community network, there may be several subnetworks consisting of individuals linked to each other by strong ties, each linked to each other via weak ties. These subnetworks can act as localized knowledge repositories.

Functions of subnetworks A key function of subnetworks is to provide benefits for members that are not available to outsiders in the wider network. Social networks serve collective interests and provide for resource sharing among network members, but at the same time, will require mechanisms to, ‘‘exclude’’ outside non-members from the benefits and knowledge of the network (Hardin, 1982; Kuran, 1989). This is similar to the concept of, club goods in law and economics, whereby members of a strategic network pay a type of club fee for membership, and collectively share the benefits, but at the same time exclude non-members from free riding (Olson, 1965; Sterbenz and Sandler, 1992; Ostrom, 1990) on the resources and assets of the network. This difficulty is further enhanced when the actors in the network are from diverse, heterogeneous backgrounds and value systems (Andreoni, 1990; Buchanan, 1965; Bergstrom et al., 1986). The definition of social networks developed in this paper requires the existence of subnetworks with their own norms, and aspects of social bonding. For example, between the community and individual levels the importance of such networks has been extensively shown in studies of entrepreneurs. Some even argue that entrepreneurship may itself be associated with creating new network patterns of economic activity through the interactive realization of innovation or by bridging supply and demand, or, more generally, with integrating fields of activities that have so far been separated. This function of the entrepreneur was elaborated by Kirzner (1973) and has been taken up later by Burt (1992) through the introduction of the notion of ‘‘structural holes’’ in networks, what it takes to bridge them, and what the benefits of such bridging activity may be. Second, entrepreneurs may establish and maintain such networks in order to identify opportunities that may be exploited in the future. Such social ties supplement others that are either mainly concerned with ensuring the supply of resources needed to cope with recognized problems or with means of coping with known problems. Further subnetworks may form within an industry along various social lines such ethnicity. For example, Tsukashima (1998) has described how various ethnically-based groups have formed within the contract gardening industry in the USA. This has been an industry that has long been dominated by Japanese immigrants to the US. Beginning with the Issei (first generation) at the beginning of the twentieth century successive generations have bequeathed their businesses to their offspring. Such bequests are not only bequests of physical resources but also valuable resources in terms of knowledge such skills and client contacts. As Tsukashima has shown, these social connections can be extensive and reach beyond the industry to encompass journalists, religious and civic leaders. Other studies have shown similar ethnic subnetworks in other industries such as the Chinese Hand Laundry Alliance during the depression (Yu, 1992), and more recently the founding of Korean trade associations in New York and Los Angeles (Min, 1996). Between the industry and company level, extensive research has also confirmed the increasing occurrence of interorganizational forms variously termed as ‘‘strategic alliances’’ (Lei and Slocum, 1990) or ‘‘networks’’ (Powell, 1990; Thorelli, 1986). A key function of such forms is not

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cities and institutions play fundamental roles ‘‘ Knowledge in knowledge creation, and knowledge management. ’’ just its ability to rapidly respond to market demands for differentiated products and services, but to do so efficiently by extending the customization process backward and forward along the entire industry value chain, from raw materials, to parts and component production, to manufacture and assembly, to distribution and final sale. More importantly from an organizational point of view, they also allow access to partner knowledge. A number of researchers in strategic management (e.g. Hamel, 1991; Inkpen and Crossan, 1995; Kogut, 1988; Kim and Choi, 2003) have argued that alliances and joint ventures provide a platform for organizational learning by providing access to partners’ skills and capabilities, particularly tacit knowledge. Thus, Kogut (1988) suggests that firms can be thought of as knowledge bases and joint ventures can be regarded as mechanisms to transfer tacit knowledge. In addition to the direct benefits from access to the knowledge of alliance partners, firms may also benefit thorough the formation of inter-organizational networks (Jarillo, 1988) and social networks in innovation (Liebeskind et al., 1996). Alliances with customers can also be a valuable source of knowledge in innovation projects (von Hippel, 1986). Another driver for such interorganizational forms has been the increasing use of information technology in all areas of business. This has led to the development of groups that use information technologies such as the Internet as the primary means of communication. An example is open-source software groups such as Linux. This operating system is essentially given away for free and was developed largely by volunteers. While some have termed this a community, it is in our terms a subnetwork, in that members are drawn from a variety of groups and communities that otherwise have little social contact with each other and are spread worldwide. The developers are people who are neither employees nor contract workers and who receive no direct compensation for their participation. Such virtual organizations may, therefore, cross company, industry and community levels and are another means by which knowledge in projects can be captured and transferred.

Conclusions Knowledge cities and institutions play fundamental roles in knowledge creation, and knowledge management. In this paper we have suggested two other levels at which knowledge can be transferred. First, knowledge can be stored and transmitted via institutions. Second, we introduce the idea of knowledge ‘‘subnetworks’’ or the smaller groupings within larger networks that can become key repositories of knowledge. Knowledge cities are being seen as fundamental to the economic growth and development of today’s cities. Knowledge management in turn has applications far beyond the organization, and into, ‘‘cities’’. The purpose of this paper was to show the importance of knowledge subnetworks and institutional foundations of analyzing knowledge assets as resources. Two areas warrant further research. First, an empirical study of our conceptual frameworks on knowledge subnetworks. Second, a cross-national comparison of knowledge based cities in different countries.

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A compilation of resources on knowledge cities and knowledge-based development Marı´a del Rosario Gonza´lez Ovalle, Jose´ Antonio Alvarado Ma´rquez and Samuel David Martı´nez Salomo´n

Marı´a del Rosario Gonza´lez Ovalle is Representative of Users’ Attendance in the Department Logistic and Technological Support, ITESM Graduated School, Monterrey, Me´xico ([email protected]). Jose´ Antonio Alvarado Ma´rquez is a Software Developer at Softtek, Nuevo Leo´n, Me´xico ([email protected]). Samuel David Martı´nez Salomo´n is a CCNA Cisco Program Instructor in the Department of Computer Sciences, ITESM Graduated School, Monterrey, Me´xico (samuel_david_martinez@ yahoo.com.mx).

Abstract The purpose of this article is to provide organized, synthesized information related to initiatives throughout the world based on knowledge-based development (KBD) such as knowledge cities (KCs), knowledge regions, and knowledge countries. A first search was conducted using the Internet and specialized databases under the keywords ‘‘knowledge cities’’. The information compiled led to other related keywords which branched out the search. All resulting information was then collated and integrated into a number of categories all unified under the field of knowledge-based development. A compilation of information on the topic ‘‘knowledge cities’’ and other topics related to knowledge-based development. The information is presented in eight sections: a glossary of KC-related terms, a list of knowledge-based development initiatives, a list of associations and organizations related to the topic, a list of urban KBD-related value dimensions and their indicators, a list of international rankings, a list of special editions on KCs, a bibliography, and a directory of related sites on the Internet. This effort resulted in a public service available at the World Wide Web. The information included in this compilation is limited mainly to public domain information available throughout Internet in both English and Spanish, as well as in selected databases. Keywords Knowledge management, Development he idea of creating this compilation came during a graduate course on capital systems which is part of the KM specialization program at Tecnolo´gico de Monterrey. During the project we received advice and technical support from Professor Javier Carrillo who taught the course and Mo´nica Espinosa who is Relational Capital Manager at the Center for Knowledge Systems (CKS) of the same institution. This project has now evolved into a public consultation service available on the Internet[1].

T

This compilation provides information from the Internet and specialized databases (Emerald, Factiva and Taylor & Francis Group) of knowledge-based development initiatives throughout the world such as knowledge cities, knowledge regions and knowledge countries. The information is classified into the following eight categories: glossary of terms; KBD initiatives; associations and international organizations; urban KBD-related value dimensions; rankings; special editions; bibliography; and electronic references. The information presented in this compilation is that which was available in the public domain and selected databases up to the time of writing of this work.

DOI 10.1108/13673270410558819

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Glossary of terms In this section, ideas expressed about a number of KC-related topics are collected. For each topic, a number of definitions or clarifying concepts by one or more authors are provided. Also, related concepts offered by some authors are synthesized. We believe that this part is relevant because it lays down the foundations for the understanding of ‘‘knowledge cities’’ and provides a framework for making sense of the information presented in the following sections. Many of the terms are similar in meaning because they present the same idea according to different points of view or they describe projects at different levels of government. Terms are ordered alphabetically, except ‘‘knowledge city’’ which is the first we introduce because its precedence upon the rest. Knowledge city (KC) For the Australian firm SGS the term KC is short hand for a regional economy driven by high value added exports created through research, technology and brainpower[2]. Edvinsson defines knowledge city as ‘‘a city that is purposefully designed to encourage the nurturing of knowledge[3]’’. We suggest that a KC is one that searches for the creation of value in all its areas and develops high standards of life, cultural support and economic development, among other aspects. Compared to other cities in advanced economies, we have found that KCs invest significantly more of the community’s income in education, training and research. Based in different viewpoints[4], we propose the following common KC attributes J creation of more rewarding and well paid employment; J faster growth in community income and wealth; J a more sustainable economy; J promotion of measured risk taking that helps build an entrepreneurial culture; J creation and innovation are central elements of its development; J constant connection between universities/enterprise/creators; J leader in cultural production and the culture industry J instruments that make knowledge accessible to citizen; J access to the new communication technologies for all citizens; J network of school connected; J leader in the incorporation of premise of the digital area; J an urban design and architecture that incorporate the new technologies; J uses and exploits its monumental, architectural and natural heritage as one of its main factors of attractiveness; and J improved capacity to improve and repair the environment, and greater community commitment to pro-environment decision making. SGS identifies seven key success factors: skills; research excellence; networks of commercial influence; a business culture which is at once collaborative and competitive; infrastructure for connectivity; market access and awareness; and open, tolerant and merit based culture and inclusive society. Carrillo[5] suggests the following KC success factors for KBD initiatives: J a leadership committed, above all, with the sustainable wellbeing of its community; J a critical mass of change agents having a sufficient understanding of the qualitative differences of KBD; J a conceptual and technical capacity to articulate and develop the social system of capitals; J a rigorous and transparent state of knowledge-based social capital;

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J a series of strategic initiatives to reach an optimal capital balance, feeding on best global practices; and J an international network of relationships with leading entities in knowledge-based innovation. Other related terms such as knowledge village, knowledge island, knowledge region, knowledge country, etc., are subsumed within the concept of KC for the purpose of this work. Emerging-technology city Kotkin and DeVol suggest that emerging-technology cities have the following characteristics: ‘‘Populations are near or less than 500,000 persons offer several advantages to firms, knowledge workers and entrepreneurs over their first-tier counterparts. These include far lower costs of living, a supportive business environment and an often concerted effort by local officials and business leaders to lure and nurture new industries. These cities excel in making products or services based upon an infrastructure and supply network that supports high value-added, cost-effective production. World-class manufacturers gravitate toward execution cities[6]’’. Indicator Indicators represent the status of a group of people, objects, institutions, or elements under study. The indicators are pieces of information that summarize the characteristics of a system. The role of an indicator is to make complex systems understandable or perceivable. An indicator or an indicating group of aid to determine where one is, to where one goes away, and what so far one is of selected goals[7]. Innovative region According to a Heinz Endowments report, the geographic clustering of people, companies, and institutions is a powerful mechanism for transferring and augmenting personal knowledge quickly. Sharing knowledge, skills, and experience is simply easier when the components of the learning network are in the same place[8]. Intelligent city Toh, from the IDA, indicates that in an intelligent city, the government has the responsibility to ensure the community has access to advanced information and communication services. Additionally, she suggests that intelligent cities work towards positioning their citizens, businesses and public-sector to prosper in the information age. She also thinks that this kind of cities embrace the growth industries of tomorrow and work to create the advanced infrastructure of telecommunications and IT needed to gain a competitive edge in attracting these growth industries that create a knowledge-based economy[9]. Knowledge-based development Carrillo[10] suggests that KBD is a theoretical and technical field which itself derived from the convergence of a discipline and a movement. According to him, it has three levels: (1) social knowledge infrastructure; (2) human capital development; and (3) development of the social capital system. He further suggests that KBD is consolidating as a strategic approach in regions and countries which have achieved the highest levels of sustainability[11]. Knowledge cluster According to Arbonı´es and Mosso[12], a structure to acquire and disseminate knowledge. Structure of co-operation that includes all actors of the innovation system in a country or region. These authors describe it as a network of universities, business schools, management consultants, and other service providers including agencies, public bodies promoting economic development and, lastly, companies and their associations. They suggest that the rationale behind such a heterogeneous range of members is one of the key points and distinctive features of the knowledge cluster. Knowledge society In the ‘‘Panel to give shape to ‘knowledge society’ concept’’, Venkatasubramanian[13] mentioned that a knowledge society makes greater use of technology of information and

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communication technologies and increase skills and knowledge of people to achieve social and individual development. Drucker[14] suggest that in a knowledge society the access to the acquisition of knowledge will no longer be dependent on obtaining a prescribed education at any given age. Learning region Stavrou[15], Deputy Director Cedefop European Forum for Local Development and Employment, has mentioned that the distinctive feature of a learning region is ‘‘the co-operation between different actors, i.e. educational bodies, research and development agencies, statutory bodies, enterprises and non-governmental organizations (‘civil society’) – in ‘learning together’ on how to devise solutions and produce new knowledge to address local needs’’. Also, ‘‘A learning region is harnessing knowledge and expertise from disparate sources for the achievement of a common goal. The learning which characterizes a learning region is focused on implementing common actions. It is ‘collective learning by doing’ ’’. Network cities According to D’Auria[16], network cities are connections between cities. This author explains how these networks can be of different nature and of different importance. He explains that in modern conceptions of cities, these networks play an important role in understanding the nature of cities. He also suggests that networks cities can be physical connections to other places, such as railways, canals, or scheduled flights. Furthermore, D’Auria indicates that networks cities also exist in immaterial form, such as trade, global finance, markets, migration, cultural links, shared social spaces or shared histories. Smart community According to the World Foundation for Smart Communities[17], a community in which members of local government, business, education, healthcare institutions and the general public understand the potential of information technology, and form successful alliances to work together to use technology to transform their community in significant and positive ways. Technopolis Joe Horn and Scott Henson provide alternative ideas of this term, as quoted by Okubo[18]. For the first, it is an euphemism for the creation of a national industrial policy. For the second, it reflects the vision of liberal economic and social planners to create a new form of city-state centered around high-tech industry. Okubo himself suggests the following criteria for technopolis development: ‘‘Incorporates technological advances in a basic infrastructure and utilities; comprises institutions and resources that hasten the application and diffusion of technological innovation; enhances or protects the quality of life and overall human condition; and links the inhabitants of the technopolis globally for the widest possible rang of forms of communication and transaction’’. Urban innovation engine For Dvir[19], a system which can trigger, generate, foster, and catalyze innovation in the city. According to him, typically it is a complex system that includes people, relationships, values, processes, tools and technological, physical and financial infrastructure. Dvir suggest that universities, museums, bookstores, the digital infrastructure and industrial districts are possible innovation engines. He suggests that there is always a unique combination of intangible factors which turn a specific ordinary urban construct into an innovation engine. He also indicates that this set might include, for example, a strategic intention, an explicit vision to use it as an innovation engine, an exceptional leadership, an urgent need, and a special team. Value dimension A value dimension is an attribute or characteristic of an entity or an event expressed in an indicator. Value dimension is all that which is considered valuable for the organization including all stakeholders[20]. In the case of the cities, the citizens are the main stakeholders since the objective of a public organization is to generate value to the citizen.

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KBD iniciatives Following is a list of the most representative KBD efforts not only of cities but also of regions and countries. There are already several cities across the world that identify themselves as a knowledge city or have strategic plans to become one. Aarhus (Denmark) www.aarhuskommune.dk/files/aak/aak/content/filer/borgmesterens_afdeling/jridisk_afdeling/ kommune_information/engelsk_hjemmeside/Growth_in_Aarhus_III.pdf Aberdeen (UK) www.tradecentre.com/tradeweb/localuserpage.asp?page=1694 Almere (Netherlands) www.nweurope.org/page/projetIdea.php?p=22&id=362 www.flevoland.nl/download/europa/Programma_Innovatieve_Acties_eng.doc Amsterdam (Netherlands) www.amsterdampartners.nl/index.html?/service/aboutus.php www.onstat.amsterdam.nl/pdf/2003_yearbook_region.pdf Atlanta (USA) www.seattle.gov/ Austin (USA) www.ci.austin.tx.us/ Bangalore (India) www.bangalore.com/ Barcelona (Spain) www.observatoribarcelona.org/cast/Temes.php?Identificador=3 www.imim.es/quark/num28-29/028124.htm www.lafactoriaweb.com/articulos/rojo12.htm Bhubaneswar (India) www.idcoindia.com Bilbao (Spain) www.bm30.es/ Birmingham (UK) www.birmingham.gov.uk/ Boston (USA) www.cityofboston.gov/ Calgary (Canada) www.smartcalgary.ca/ Cambridge (UK) www.cambridgema.gov/index.cfm www.cgkp.org.uk Cardiff (UK) www.cf.ac.uk/news/03-04/031103.html Co´rdoba (Spain) www.cordobatercermilenio.com Chicago (USA) http://egov.cityofchicago.org/city/webportal/home.do Corun˜a (Spain) www.arenotech.org/2004/nouvelles_2004/coruna_ciudad_del_conocimiento.htm Delft (Holland) www.delft.nl/kennisstad/en/ http://ep.eur.nl/retrive/1996/paper_delft.pdf Denmark www.denmark.dk/ Dhirubhai Ambani (India) www.domain-b.com/companies/companies_r/reliance_infocom/20021227_knowledge_city.html

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Dos Hermanas (Spain) www.desados.com/ciudaddelconocimiento.htm Dubai Knowledge Village www.kv.ae/ Dublin (Ireland) www.dubchamber.ie/Uploads/2020%20Vision.pdf Edinburgh (UK) http://download.edinburgh.gov.uk/CityVisionMay.pdf Ennis (Ireland) www.ennis.ie/cgibin/eiat.cgi?page=information_age_town.htm Groningen (Netherlands) www.groningen.nl/functies/pagfunctie.cfm?parameter=544 Helsinki (Finland) www.helsinki.fi/ Hull (UK) http://hull.localknowledge.co.uk/ Houston (USA) www.cityofhouston.gov/ Kyoto (Japan) www.kantei.go.jp/foreign/index-e.html Korea http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20019656~menuPK: 34460~pagePK:64003015~piPK:64003012~theSitePK:4607,00.html Lillestrøm (Norway) www.lillestrom.no/ London (UK) www.knowledgeboard.com/cgi-bin/item.cgi?id=125574&d=pnd Los Angeles (USA) www.lacity.org/ Lyon (France) www.cities-lyon.org/fr/vilnius-knowledge-economy Ma´laga (Espan˜a) www.planestrategicodemalaga.com/foros/display_forum.asp?fid=2&as_idses Malmo¨ (Sweden) www.malmo.se/html/ www/index.html Manchester (UK) www.manchesterknowledge.com/pages/knowledge_economy.html Manhattan (USA) www.ci.manhattan.ks.us/ Manukau (New Zealand) www.manukau.govt.nz/reports/sm-response.pdf Mataro´ (Spain) www.aui.es/biblio/bolet/bole029/ponencias/mataro-eciudad-tecnocampus.pdf www.terra.es/personal7/jm_viedma/publicaciones/CICBStrad.pdf Medellı´n (Colombia) www.cta.org.co/publicaciones/Agenda.pdf Melbourne (Australia) www.melbourne.vic.gov.au/cityplan/infopage.cfm Manizales (Colombia) www.mec.gov.co/html/noticias.htm Monterrey (Mexico) http://gobierno.nl.gob.mx/SalaPrensa/Entrevistas/Febrero2004/26Feb/26-02-04-5

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Montreal (Canada) www.montrealinternational.com/docs/MtlSavoir_En.pdf www.ccmm.qc.ca/asp/bulletin.asp?ID=21&item=124&lang=2&Rubrique=4978 Munich (Germany) www.muenchen.de/ Navarra (Spain) www.plantecnologico.com/recursos/boletin/object.php?o=432 Navi Mumbai (India) www.flonnet.com/fl2025/stories/20031219002808900.htm www.cdacindia.com/html/pdf/geomat/Paper-Kale-Ravan-Kaushal.pdf New England (USA) www.creativeeconomy.org New Zealand (Australia) www.govt.nz/ New York (USA) www.state.ny.us/ Norway www.norway.com/ Ohio (USA) www.ohioknowledgeeconomy.org/ Oslo (Norway) www.oslo.technopole.no Palmerston North (New Zealand) www.pncc.govt.nz/City/Education/Links/Study+Here.htm Panama (Panama) www.ciudaddelsaber.org.pa/English/city/city.html Penn State Erie PA (USA) www.pserie.psu.edu/kpark/ Philadelphia (USA) www.ipphila.com/ Phoenix (USA) http://phoenix.gov/ Pittsburgh (USA) www.city.pittsburgh.pa.us Qurtuba (Kuwait) www.jamaat.org/qurtaba(new).html Ro´tterdam (Netherlands) www.rotterdam.nl/ San Diego (USA) www.thetsector.com/city/ San Francisco (USA) www.ci.sf.ca.us/ Sa¨o Paulo (Brazil) www.cidade.usp.br/english/ Seattle (USA) www.seattle.gov/ Shanghai (China) www.voyager-ent.com/shanghaisite.html Singapore www.gov.sg/ Stockholm (Sweden) www2.stockholm.se/english/

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Strasbourg (France) www.strasbourg.fr/Strasbourgfr/FR/ Tucson (USA) www.cityoftucson.org/lv-toc.html Uppsala (Sween) www.wtanet.org/eng/wta/data/symposium/symposium2/1-1.doc Vilnius (France) www.cities-lyon.org/fr/vilnius-knowledge-economy Washington (USA) http://access.wa.gov/ Zaragoza (Spain) www.ayto-zaragoza.es/azar/ciudad/ciudad-conocimiento

Associations and international organizations This section lists associations involved with KC initiatives or related concepts. These associations monitor and support KBD programs. CITYNET www.citynet-ap.org/en/index.html Network of local authorities and NGOs that promotes sustainable urban improvement in the Asia-Pacific. European Union http://europa.eu.int Portal of the European Union J Knowledge Society Homepage http://europa.eu.int/comm/employment_social/knowledge_society/index_en.htm J Europe’s Information Society http://europa.eu.int/information_society/index_en.htm J EU activities – Information society http://europa.eu.int/pol/infso/index_en.htm Fundacio´n Iberoamericana del Conocimiento www.gestiondelconocimiento.com Promotes KM; measurement and management of intellectual capital and organizational learning. Global Urban Observatory (GUO) www.unchs.org/programmes/guo/default.asp Aims to improve the world-wide base of urban knowledge by helping governments, local authorities and organizations of the civil society develop and apply policy-oriented urban indicators. Ibero-American Community for Knowledge Systems www.iberoamericana.org Promotes the generation, management and conscious use of knowledge as an individual and social development factor, in order to contribute to sustainable development in the region. ICLEI-Local Governments for Sustainability www.iclei.org International association of local governments implementing sustainable development. Knowledgeland http://english.kennisland.nl/english/Home/index.html Independent Dutch think-tank whose mission is to help establish The Netherlands as one of the key regions in the international knowledge economy. Learning Towns and Cities www.lifelonglearning.co.uk/learningcities/ Promotes learning widely; develop effective local partnerships between all sectors of the community; and supports and motivates individuals to learn. Metropolis www.metropolis.org International association of 81 world cities. It works towards developing solutions to issues affecting large cities.

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OECD www.oecd.org Plays a prominent role in fostering good governance in the public service and in corporate activity. J Sustainable Development www.oecd.org/topic/0,2686,en_2649_37425_1_1_1_1_37425,00.html TeleCities www.telecities.org Major European network of cities committed to leadership in the Information and knowledge society. United Cities and Local Governments www.cities-localgovernments.org/uclg/ Result of the unification of the two largest generalist international local government associations, the International Union of Local Authorities (IULA) and the United Towns Organization (UTO/FMCU). Promotes policies and experiences of local governments in key areas. World Bank www.worldbank.org Mission: to fight poverty and improve the living standards of people in the developing world. J Sustainable Development http://lnweb18.worldbank.org/ESSD/sdvext.nsf/43ByDocName/SustainableDevelopment J Knowledge for Development www.worldbank.org/wbi/knowledgefordevelopment/ J Learning Programs: Sustainable Development www.worldbank.org/wbi/sustainabledevelopment/ World Secretariat of Cities and Local Government www.camval.org World alliance of international associations of cities and local authorities committed to responsible and effective local self-government for sustainable development.

Urban KBD-related value dimensions A KC is one that searches for the creation of value in all its areas and develops high standards of life, cultural support and economic development, among other aspects. As a result, it becomes important to discover what these areas of value are and how to measure their state. An exhaustive search for ‘‘knowledge cities’’ initiatives, as well as for frameworks of international organisms that evaluate the development of cities and countries, was made to construe the list of value dimensions. To present this information, the following format was adopted: Name of the dimension [initiatives that take into account this dimension = Number of the initiatives that take into account this dimension]. Description of the dimension. Indicators of the dimension. Example: Clusters (Mg-Bl = 2). Association of companies or networks of cities. Number of clusters. For the list of initiatives that take into account each dimension, an index with an identification code for each participating city was used, according to the following list: Index Code

Iniciative

Ar Bl Bg Bb Bt Br Az Eb Ko Ld Mg

Argentina Barcelona Birmingham Bilbao Boston Brazil Andaluzas cities Edinburgh Korea London Malaga

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Mc Mt Mn Pp Tc NE UB WB

Manchester Mataro´ Munich Philadelphia Tucson The NE: Benchmarks and Economic Development Strategies Global Urban Observatory Network (GUONet) World Bank

List of value dimensions Descriptions of dimensions and its corresponding indicators are provided in those cases where they were included in the original. Ability to work in equipment (Ar-Bb = 2). Academic entities and organizations (Mt-Bb-Pp = 3). Number of entities and organization; list of entities and organization; number and size of college and university. Academic events (Mt-Bb-Bt = 3). Number of events; list of events. Access to information (Bt = 1). Library books in circulation, community newspapers. Actor’s satisfaction (Ar-Mt-Mg-Bl = 4). Satisfaction of the citizens, social organizations and other cities or organizations with which it interacts. Agreements of work (Mc = 1). Number of links between changing business needs and skills and content of lifelong learning, number of city-business links and networks encourage new forms of cooperative governance. Agricultural production (WB-Mg-Tc = 3). Multiplicity of use of the land. Total production Ambient management (Az-WB-Mg-Bb-Lo-Bt = 6). Laws and regulations. Vehicular greenhouse gas emissions, use of clean fuel vehicles. Atmosphere businesses (Az-Bl-Bb = 3). Number of spaces for congresses; quality of ethics in businesses. Balance between diversification and economies of location (Bl = 1). Coexistence of diversified and specialized cities. Basic education (Mt-Az-Bl-WB-Mg-Bb-Eb-Lo-Tc-Ko-Br-Bt = 12). Activities to develop faculties and aptitudes. Expenditure per student, illiteracy rate, primary completion rate, primary and secondary education, public spending on education, pupil-teacher ratio, repetition rate, school enrollment, ratio of students to teachers in regular education, teachers who have advanced degrees in the subjects they teach. Capacity of diffusion of scientific, organizational and humanistic knowledge (Mg = 1). Capacity of innovation of people and equipment (Ar, Mt, Mg, Bl, Bb, Lo, NE, Bt = 8). Capacity of international relation (Bl = 1). Capacity of investigation and adaptation to the new technologies (Ar-Mg-Pp-Ko-Bt = 5). Skilled information technology workforce. Capacity of leadership (Bl-Bb-Mc = 3). Capital market (Mt = 1). Characteristic of the market: self-containment, self-sufficiency, exports/imports ratio. Situation of the capital of Market. Citizen participation (Mg-Bl-Bb-Eb-Tc-Bt = 6). Active engagement by stakeholders, whether parents, community members, or by civic and business leaders. City loyalty (Mt = 1). Clusters (Mg-Bl = 2). Association of companies or networks of cities. Number of clusters. Commercial equipment (Az-Mn = 2). Commercial supply, commercial streets, spontaneous commerce. Availability and amount of commercial equipment. Competitiveness (Mg-Bl-Bt-Bb-Lo = 5). Competitive profile of the city: cultural, academic, sport aspects, among others. Ranking in comparison to other major cities. Connectivity of the organization (Bl = 1). Access to the markets, the clients and the consumers. Continuous education (Mt-Bl-Bb-Bg-Eb-Tc-Bt = 7). Availability and success of programs of continuous education. Adult participation rate.

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Cultural entities and organizations (Mt-Mg-Bb = 3). Number of entities and organization; list of entities and organization. Cultural events (Mt-Mg-Bb-Eb-Lo-Bt = 6). Number of cultural manifestations; number of projects. Culture (Ar-Mt-Bl = 3). Ways of life and customs. Decentralization and strengthen local authorities. (UB = 1). Level of decentralization Development assistance and aid (WB = 1). Development of communities (Bg-Eb = 2). Diffusion and communication strategies (Ar-Mg-Bl = 3). Digital economy (NE = 1). Economic development (Az-Mg-Bl-Bg-Eb-Lo-Tc-NE-Mn-Bt = 10). Rent per capita; number of new created jobs. Elementary civism (Az-Bl-Bb-NE = 4). Energy production (WB-Tc = 2). Enterprise/business (WB-Bg = 2). Growth in number of registered businesses; business death rates. Enterprising capacity (Mg-Bl-Bg = 3). People’s entreprenurial capacity. Equality/fairness (Bt-Lo-Tc-NE = 4). Equipment for the culture (Mt-Az-Bl-Bb = 4). Availability and amount of equipment for the culture Equipment for the development of economic activities (Az-Bl-Bb-Bg-Lo = 5). Enterprise offices, hotels, parks, scientific parks. Equipment for education (B = 1). Schools with up-to-date technology and libraries, gyms, labs and renovated schoolyards; number of students per computer, schools wired for high-speed Internet access, teachers using technology in teaching. Equipment for sport and leisure (Az-Bb = 2). Recreational areas, sport facilities, restaurants. Availability and amount of equipment for sport and leisure. External attendances (WB = 1). Globalization (NE = 1). Green areas (Tc = 1). Groupware (Ar = 1). Availability and use of groupware programs. Hardware (Mt-Bb-Bg-Eb = 4). Availability and use of hardware. Customary computer users. Health (WB-Bb-Lo-Bt = 4). Health expenditure per capita, hospital beds, immunization, prevalence, physicians per 1,000 people, improved sanitation facilities, women receiving adequate prenatal care, up-todate vaccinations, youth who engage in risky behaviors. Higher education (Mg-Bl-Bb-Lo-Tc-Ko-Mc-Bt = 8). Density of professionals; number of universities and training programs, proportion of graduate. Identification of the users/suppliers (Ar = 1). Image (Ar-Mt-Mg-Bl-Bb-Lo-Mn = 7). Corporate image, international recognition. Immigration (Az-Bl-Bb = 3) Number of immigrants, immigrants acceptance. Incubators and workspace (Mg = 1). Industrial – enterprise parks (Bb = 1). Information systems (Mt-WB-Mg-Ko-Br-Bg = 7). Availability and use of information systems. Information technologies (Bb-Eb = 2). Infrastructure of connection with the outside (Az-Mg-Bt-Bb-Lo = 5). Telecommunications, airport, trains connections and road network infrastructure, commercial port, effectiveness of its connection to the systems of international transport. Institutional regime (Ko = 1). Corruption perception index, assessment of intellectual property protection. Integrated approach/social capital (Bl-Bb-Mn-Bt = 4). Network of associations, relationships and affiliations that connect individuals and families to communities.

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International projection (Mg-Bl-Bb = 3). Investment and risk (WB = 1). Internal market quality. domestic credit to private sector, foreign direct investment, total of domestic companies, Private investment. People typology (Ar-Mt-Bg = 3). Attitudes, knowledge, capacities, abilities and experiences. Knowledge networks (Mg = 1). Labor and employment (Mt-Az-Bl-WB-Mg-Bb-Bg-Lo-Tc-Mn = 10). Generation of occupation in a frame of labor quality, set of economic activities that generate occupation. Activity rate, registered unemployment rate, employees, labor force total. Landmarks in urban structure (Az-Mg-Bb-Tc = 4). Number of historical areas, business centers, industrial areas, natural elements. Legitimacy of the government (Bt-NE-Bt = 3). Registered voters and participation rates; number of contested elections. Management focus (Mt = 1). Sustain and amplify the output of human capital. Management models for the cities (Mg-Bl = 2). Generation of schemes for citizens’ welfare. Multilingual capacity (Bl-Bb-Bt = 3). Municipal services and equipment (Mg-Bl-Bb = 3). Natural environment (WB-Mg-Bl-Bb-Eb-Lo-Tc-NE = 8). Quality of the environment, quantity of emissions per person, air pollution, wastewater treated, solid waste disposal. Natural resources (Mg-Bb-Tc = 3). Opportunities for arts education (Bt = 1). Arts education develops skills, stimulates creativity, and enhances our appreciation of new and established artistic forms. Teachers dedicated to visual arts, music and theater in public schools, children and youth participation in after-school arts programs, students in degreegranting schools of visual and performing arts. Organizational structure (Ar-Mt = 2). Patents & trademarks (Ko-Br-Mt-WB-NE-Pp = 6). Foreign direct investment as a share of GDP and royalty and licensing fees paid abroad as a percentage of GDP, scientists and engineers in R&D per million population, patents granted in the United States to different countries per million of their population, closeness of research collaboration between universities and industry and how well companies absorb new technology, number of graduated from engineer, mathematics and informatics courses. Philosophy (Ar-Mt-Bl-Bg = 4). Explicit statement of the philosophy, level acceptance of philosophy by citizens. Policy of incentives (Ar = 1). Political and social sensitivity (Az = 1). International confidence, public confidence, mass media. Population and demographics (WB-Az-Bl-UB-Bg-Bt = 6). Promote geographically-balanced settlement structures, urban population growth, age dependency ratio (dependents to working-age population), birth rate, crude (per 1,000 people), contraceptive prevalence (percentage of women ages 15-49), death rate, crude (per 1,000 people), fertility rate, total (births per woman), life expectancy at birth of female/male (years), mortality rate of adult female/male (per 1,000 adults), mortality rate of infant (per 1,000 live births), mortality rate under-5 (per 1,000 live births), population ages 0-14 (percentage of total), population ages 65 and above (percentage of total), population density (people per sq. km.), population growth (annual percentage), population of female/male (percentage of total). Positive attitude for the creation and attraction of companies (Bl = 1). Processes of receiving and processing information (Ar = 1). Productive chains (Az-Bl-Bb = 3). Public-private cooperation, cooperation company-university, professional services. Number of identified chains. Products and services of the city (Ar = 1). Quality of products and services. Professional training (Mt-Mg-Bl-Bb-Lo-Tc = 6). Capacities to exert an office. Percentage of qualified workers. Programs for databases development (Ar = 1). Availability and use of bibliographical databases as well as Directories of Institutions, professionals and events.

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Programs for statistical analysis (Ar = 1). Availability and use of statistical programs for impact evaluation, users and suppliers profile. Programs for Web sites design and update (Ar = 1). Programs of cooperation, participation, leadership (Mg = 1). International projection (Mg-Bl-Bb = 3). Public support and philanthropy (Tc-Bt = 2). Regional-national cooperation (Az-Mg-Bl-Bb = 4). Regional, national and international relations for competition, cooperation and networking of cities. Relationship with international markets (Mt-Bl = 2). Research and development (Mt-Mg-Bl-Bb-NE-Pp-Ko-Bt= 8). Federal, state and local investment. Scientists and engineers in R&D per million population. Family role (Bb-Tc = 2). Sanitary Equipment (Az-Bb = 2). Availability and amount of sanitary equipment. School choice (Bt=1). Measured by the availability of various available and accessible models of education, indicates parents’ and students’ interest in exploring flexible and tailored education. Enrollment in public, private, parochial and charter schools. Search and development centers (Mt-Mg-Bb = 3). Availability and use of centers. Number of centers; list of centers. Security (Bb-Eb-Lo-Tc-Bt = 4). Crime rates, perception of public safety, partnerships for violence reduction. Service and support process for the user (Ar-Bb = 1). Sports entities and organizations (Mt-Mg-Bb = 1). List and number of entities and organizations. Sport events (Mt-Mg-Bb-Bt = 4). List and number of events. Social development and quality of life (Az-Mt-WB-Mg-Bl-Lo-Mc-Bt = 8). Life expectancy, poverty and income distribution (GINI index, poverty headcount), family self-sufficiency standard, families and children living in poverty. Social entities and organizations (Mt-Bb = 2). List and number of entities and organization. Social events (Mt-Bb-Eb-Bt = 4). Social integration (Az-Bl-Bg-Eb-Lo-Bt-NE = 7). Social cohesion, balance parts, feeling property. Social responsibility (Bb-Mn-Bt = 3). Companies’ commitment with human values. Societies of collaboration (Bl-Ko = 2). Strategic partners. Software (Ar-Mt = 2). Availability and use of computer science programs. Solidarity (Mg-Bl-Bb = 3). Stability (Ar-Bl-Pp-Bt = 4). People living at the same address by number of years and by neighborhood, risk of loosing population, emigrations rate (exodus). Start-up companies (Mt-Pp = 2). New business start-up. Strategic alliances (Ar-Bl-Ko = 3). Number of strategic alliances. Strategic planing (Ar-Bl = 2). Development of strategic priorities and plans. Sustainable development (Bb-Bg-Lo-Mn = 4). Transport system (Az-WB-Mg-Bb-Bl-Bg-Lo-Tc-Mn-Br-Bt= 11). Transportation capacity, household income spent on transportation, buses, urban traffic, parking, transport airports, ease of mobility in all area. Telecommunication networks (Ar-Mt-WB-Mg-Bl-Bb-Bg-Br-Ko-Eb-NE-Pp-Ko-Br = 14). Consistent Internet users, availability and use of intranet and Internet, quality of ITC network. Strategic location (Az-Mg = 2). International location, quality of landscape. Tolerance (Mg = 1). Transparent, accountable and efficient governance (UB = 1). Quality of government. Travel and tourism (WB-Mg-Bb-Bg-Eb-Lo-Bt = 7). Expenditures, arrivals/departures.

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Scene and urban structure (Bl-Az-WB-Bb-Eb-Lo-Tc-Pp-Bt = 9). Dowry of services of international rank, diversity metropolitan infrastructures. Urban renovation, attractive image, urban scene, non-stop destination served, water availability; public building and amenities accessible to people with disabilities. Venture capital (NE, Pp-Bt = 3).

Rankings This section consists of a list of associations that publish comparisons between cities, regions, or countries using some of the value dimensions included in the previous section as a reference or unit of comparison While not all sites listed here are necessarily about KBD or KCs, they do make use of some of the value dimensions listed above. Aneki.com www.aneki.com/lists.html Independent, privately operated Web site based in Montreal, Canada. Serves as a comprehensive source of continental and world rankings in an increasing number of categories. Council on Competitiveness www.compete.org/et/ Calibrates the innovating capacity and global competitiveness of the US economy. Analyzes national and international data on economic output and productivity, wages and personal income, job growth, saving and investment, trade performance, research and development, and venture capital, among others. European Competitiveness Index www.hugginsassociates.com/product_info.php/cPath/22/products_id/31 Examines and measures the competitiveness of Europe’s regions and nations. Variables: creativity, knowledge economy, sectorial productivity performance, economic performance, infrastructure and accessibility. European performance in competitiveness and innovation http://europa.eu.int/comm/enterprise/enterprise_policy/competitiveness/index.htm Presents economic analyses in competitiveness and results from benchmarking, monitoring and coordinating exercises. Economic Freedom Network Index www.freetheworld.com/index.html Brings the topic of economic freedom into mainstream public debate. Great North Alliance 2002/2003 Opportunity Forecast Report www.thegreatnorth.com/forecast.asp Examines regional capacity for productivity growth and innovation to predict future opportunity. Four stages of the regional innovation economy of 12 high-performance metropolitan areas are benchmarked using 58 objective indicators. IMD World Competitiveness Index www02.imd.ch/wcy/ Provides an annual report on the competitive position of nations around the world. Ranks countries using criteria covering current economic performance, government efficiency, business efficiency and infrastructure. Index of Economic Freedom www.heritage.org/research/features/index/ Includes country-by-country economic analyses and the up-to-date information. Measures how well 161 countries score on a list of 50 independent variables divided into ten broad factors of economic freedom (trade policy, fiscal burden of government, government intervention in the economy, monetary policy, capital flows and foreign investment, banking and finance, wages and prices, property rights, regulation, and informal market activity). Index of the Massachusetts Innovation Economy www.mtpc.org/InnovationEconomy/The_Index.htm Compares Massachusetts with six other ‘‘leading technology states’’ in nine broad clusters, including: software qne communications services, innovation services, postsecondary education, diversified industrial support, financial services, healthcare technology, textiles qne apparel, computer and communications hardware and defense.

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Innovation & Entrepreneurial Index 2002 www.ipphila.com/index.cfm/fuseaction/document.detail/documentID/9/ Compares Philadelphia to seven other regions through key metrics in three categories – knowledge, capital and location. The seven other metropolitan areas selected are: New York City, Pittsburgh, Boston, Baltimore, Research Triangle Park, Washington, and San Diego. Metro Area and State Competitiveness Report www.beaconhill.org/ Indexes of competitiveness for the states and the metropolitan areas of the United States, designed to measure the long-term competitiveness of an area. New Economy Index http://neweconomyindex.org Examines what’s actually new about the so-called ‘‘new economy’’ and offers policy makers a framework for economic development strategies aimed at promoting fast, and widely shared economic growth. OECD Science, Technology and Industry Scoreboard. www.oecd.org/document/21/0,2340,en_2649_33703_16683413_1_1_1_1,00.html Brings together the latest internationally comparable data on trends in the knowledge-based economy. Indicators cover four key areas: creation and diffusion of knowledge; information society; economic globalization; productivity and economic structure. Trend Chart on Innovation http://trendchart.cordis.lu/ Provides innovation policy-makers and managers support schemes with summarized information and statistics on policies, performance and trends in Europe in view to assess the effectiveness of schemes and to identify ‘‘good practice’’. Tri-Cities, Washington Innovation and Technology Index www.pnl.gov/edo/documents/innovationtechindex.pdf Assesses characteristics of the tri-cities (Richland, Kennewick, and Pasco) important for technology-driven economic development and compares the tri-cities index to the Washington state index and to other selected metropolitan areas in the Pacific Northwest. UN Human Development Index http://hdr.undp.org/default.cfm Assesses the relative position of each country with regard to three main dimensions of development. Measures poverty, literacy, education, life expectancy, and other factors. World Bank – World Development Indicators (WDI) www.worldbank.org/data/wdi2004/index.htm Includes 800 indicators in 87 tables, organized in six sections: world view, people, environment, economy, states and markets, and global links. Tables cover 152 economies and 14 country groups with basic indicators for a further 55 economies. The Economist www.economist.com Publishes every year a ranking of cities according to several variables (subscribers only). World Economic Forum Includes three benchmarks: J Global Competitiveness Report www.weforum.org/site/homepublic.nsf/Content/Global+Competitiveness+Programme%5CGlobal+ Competitiveness+Report Detailed country competitiveness profiles of 102 economies. Data tables for survey and hard data variables ranking profiled economies. Exclusive data from the Executive Opinion Survey. J Global Information Technology Report www.weforum.org/site/homepublic.nsf/Content/Global+Competitiveness+Programme%5CGlobal+ Information+Technology+Report Benchmarking tool to determine national ICT strengths and weaknesses, and evaluate progress. Also highlights the continuing importance of ICT application and development for economic growth. Uses the Networked Readiness Index (NRI), covering a total of 102 economies, to measure ‘‘the degree of preparation of a nation or community to participate in and benefit from ICT developments’’. The NRI is composed of three component indexes which assess: environment for ICT offered by a given country or community, readiness of community’s key stakeholders (individuals, businesses and governments), and usage of ICT among these stakeholders. J Environmental Sustainability Index www.ciesin.columbia.edu/indicators/ESI/

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Measures overall progress towards environmental sustainability, in 142 countries. Permits cross-national comparisons of environmental progress in a systematic and quantitative fashion. World Knowledge Competitiveness Index (WKCI) www.hugginsassociates.com/product_info.php/cPath/23/products_id/45 Integrated and overall benchmark of the knowledge capacity, capability and sustainability of 125 regions across the globe, and the extent to which this knowledge is translated into the wealth of the citizens of these regions, utilizing 19 knowledge economy benchmarks. Key features: human capital components, financial capital components, knowledge, capital components, regional economy outputs, knowledge sustainability.

Special editions In this section the contents of former Special Issues related to KCs and KBD by two leading journals: Urban Studies and the Journal of Knowledge Management are listed. Cities, Enterprises and Society at the Eve of the 21st Century Urban Studies, Vol. 32, No. 2, March 1, 1995 Frank Moulaert, ‘‘Introduction’’. Kevin R. Cox, ‘‘Globalisation, competition and the politics of local economic development’’. Richard V. Knight, ‘‘Knowledge-based development: policy and planning implications for cities’’. Cedric Pugh, ‘‘International structural adjustment and its sectoral and spatial impacts’’. David A. Smith, ‘‘Conceptualising and mapping the structure of the world system’s city system’’. Nadine Cattan, ‘‘Attractivity and internationalisation of major European cities: the example of air traffic’’. David F. Batten, ‘‘Network cities: creative urban agglomerations for the 21st century’’. Michael Pryke, ‘‘Place your bets: towards an understanding of globalisation, socio-financial engineering and competition within a financial centre’’. Leslie Budd, ‘‘Globalisation, territory and strategic alliances in different financial centres’’. Barney Warf, ‘‘Telecommunications and the changing geographies of knowledge transmission in the late 20th century’’. Luis Rubalcaba-Bermejo and Juan R. Cuadrado-Roura, ‘‘Urban hierarchies and territorial competition in Europe: exploring the role of fairs and exhibitions’’. Philippe Julien, ‘‘French towns, higher urban functions and strategic employment’’.

The Knowledge-based City Urban Studies, Vol. 39, Nos 5-6, May 1, 2002 James Simmie and William F. Lever, ‘‘Introduction: the knowledge-based city’’. W. F. Lever, ‘‘Correlating the knowledge-base of cities with economic growth’’. Jeremy R.L. Howells, ‘‘Tacit knowledge, innovation and economic geography’’. James Simmie, ‘‘Knowledge spillovers and reasons for the concentration of innovative SMEs’’. Christian Wichmann Matthiessen, Annette Winkel Schwarz and Søren Find, ‘‘The top-level global research system, 1997-99: centres, networks and nodality. An analysis based on bibliometric indicators’’. Edward J. Malecki, ‘‘Hard and soft networks for urban competitiveness’’. Richard Evans, ‘‘E-commerce, competitiveness and local and regional governance in Greater Manchester and Merseyside: a preliminary assessment’’. P.W. Daniels and J.R. Bryson, ‘‘Manufacturing services and servicing manufacturing: knowledge-based cities and changing forms of production’’. Peter Wood, ‘‘Knowledge-intensive services and urban innovativeness’’. Brian Graham, ‘‘Heritage as knowledge: capital or culture?’’. Jan G. Lambooy, ‘‘Knowledge and urban economic development: an evolutionary perspective’’. Christopher May, ‘‘Trouble in e-topia: knowledge as intellectual property’’. Cristiano Antonelli and Michel Que´re´, ‘‘The governance of interactive learning within innovation systems’’.

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Knowledge-based Development Journal of Knowledge Management, Vol. 6, No. 4, 2002 Robin Mansell, ‘‘Constructing the knowledge base for knowledge-driven development’’. Alejandro Escriba´-Esteve and Jose´ Urra-Urbieta, ‘‘An analysis of co-operative agreements from a knowledge-based perspective: an integrative conceptual framework’’. Angel Arbonı´es and Mo´nica Moso, ‘‘Basque Country: the knowledge cluster’’. Carlos Scheel, ‘‘Knowledge clusters of technological innovation systems’’. Thomas F. Malone and Gary W. Yohe, ‘‘Knowledge partnerships for a sustainable, equitable and stable society’’. Francisco Carrillo, ‘‘Capital systems: implications for a global knowledge agenda’’. Kathia Castro Laszlo and Alexander Laszlo, ‘‘Evolving knowledge for development: the role of knowledge management in a changing world’’.

Bibliography In this section we provide a list of bibliographic references on KCs and KBD. Bellmann, C. et al. (2003), Trading in Knowledge: Development Perspectives on TRIPS, Trade and Sustainability, Earthscan. Boekema, F., Knowledge, Innovation and Economic Growth: The Theory and Practice of Learning Regions, Edward Elgar. Brenner, N. and Keil, R. (2003), The Global Cities Reader, Routledge. Butler, C. (1999), ‘‘Cities in competition: equity issues’’, Urban Studies, Vol. 36 No. 5-6. Calthorpe, P. and Fulton, W. (2001), The Regional City: Planning for the End of Sprawl, Island Press. Cantwell, J. and Iammarino, S. (2003), Multinational Corporations and European Regional Systems of Innovation, Routledge. Cassiolato, J. et al. (2003), Systems of Innovation and Development: Evidence from Brazil, Edward Elgar. Castells, M. (2000), The Rise of Network Society, Blackwell. Conceicao, P. et al. (2003), Innovation, Competence Building and Social Cohesion in Europe: Towards a Learning Society, Edward Elgar. Diederen, P. et al. (1999), Innovation and Research Policies: An International Comparative, Edward Elgar. Duffy, H. (1995), Competitive Cities Succeeding in the Global Economy, Spon Press. Dunning, J. (2002), Regions, Globalization, and Knowledge-Based Economy, Oxford Press. Echenique, M. and Saint, A. (2001), Cities for the New Millennium, Spon Press. Fornahl, D. (2003), Cooperation, Networks and Institutions in Regional Innovation Systems, Edward Elgar. Gadrey, J. and Gallouj, F. (2002), Productivity, Innovation and Knowledge in Services: New Economic and Socio-economic Approaches, Edward Elgar. Gappert, G. and Knight, A. (1989), Cities in a Global Society, Sage. Goodman, D. and Chant, C. (1999), European Cities and Technology Industrial to Post-Industrial Cities, Routledge. Gwin, C. (2004), Sharing Knowledge: Innovations and Remaining Challenges, World Bank Publications. Hargreaves, A. (2003), Teaching in the Knowledge Society, Open University Press. Harris, J. (2000), Rethinking Sustainability CB: Power, Knowledge, and Institutions, University of Michigan Press. Haughton, G. and Hunter, C. (2003), Sustainable Cities, Routledge. Holbrook, J. (2002), Knowledge, Clusters and Regional Innovation, McGill-Queens University Press. Hospers, G. (2003), ‘‘Creative cities in Europe: urban competitiveness in the knowledge economy’’, Intereconomics, Vol. 38 No. 5. Jamison, A. (2001), The Making of Green Knowledge: Environmental Politics and Cultural Transformation, Cambridge University Press.

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Knight, R. (1995), ‘‘Knowledge-based development: policy and planning implications for cities’’, Urban Studies, Vol. 32 No. 2. Komninos, N. (2002), Intelligent Cities: Innovation, Knowledge Systems and Digital Spaces, Spon Press. Kotkin, J. and Devol, R. (2001), Knowledge-Value Cities in the Digital Age, Milken Institute. Laredo, P. and Mustar, P. (2003), Research and Innovation Policies in the New Global Economy: An International Comparative Analysis, Edward Elgar. Lesser, E. and Fontaine, M. (2000), Knowledge and Communities, Butterworth-Heinemann. Lever, W. (1999), ‘‘Competitive cities in Europe’’, Urban Studies, Vol. 36 No. 5-6. Linsu, K. (1999), Learning and Innovation in Economic Development, Edward Elgar. Malhotra, Y. (2003), Measuring Knowledge Assets of a Nation: Knowledge Systems for Development, UN Department of Economic and Social Affairs. Mani, S. (2002), Government, Innovation and Technology Policy: An International Comparative Analysis, Edward Elgar. Mansell, R. and When, U. (1998), Knowledge Societies: Information Technology for Sustainable Development, Oxford University Press. Marjolein, C. (2000), Knowledge Spillovers and Economic Growth: Regional Growth Differentials Across Europe, Edward Elgar. Martinez, R. et al. (2000), Knowledge Flows in National Systems of Innovation: A Comparative Analysis of Sociotechnical Constituencies in Europe and Latin America, Edward Elgar. Maskell, P. et al. (1997), Competitiveness, Localised Learning and Regional Development Specialization and Prosperity in Small Open Economies, Routledge. Meijer, M. (1993), ‘‘Growth and decline of European cities: changing positions of cities in Europe’’, Urban Studies, Vol. 30 No. 6. Miller, M. (1997), Knowledge, Identity and Curriculum Transformation in Africa, Longman. Morgan, K. and Nauwelaers, C. (2002), Regional Innovation Strategies: The Challenge for Less-Favoured Regions, Routledge. Mulenga, D. (1999), Knowledge, Empowerment and Social Transformation: Participatory Research in Africa, Zed Books. O’Mara, M. (2004), Cities of Knowledge: Cold War Science and the Search for the Next Silicon Valley, Princeton University Press. Preer, R. (1992), The Emergence of Technopolis: Knowledge-intensive Technologies and Regional Development, Greenwood Press. Purslow, F. (1998), City Smart: Calgary, Avalon Travel Publishing. Pyka, A. and Kuppers, G. (2002), Innovation Networks: Theory and Practice, Edward Elgar. Robinson, J. (2002), ‘‘Global and world cities’’, International Journal of Urban and Regional Research, Vol. 26 No. 4. Ruttan, V. (2000), Technology, Growth and Development: An Induced Innovation Perspective, Oxford University Press. Ruttan, V. (2004), Social Science Knowledge and Economic Development, University of Michigan Press. Ryser, J. (1994), Future of European Capitals: Knowledge Based Development, Goethe. Sagati, F. (2004), Knowledge and Innovation for Development: The Sisyphus Challenge of the 21st Century, Edward Elgar. Sassen, S. (2002), Global Networks, Linked Cities, Routledge. Schamp, E. and Lo, V. (2003), Knowledge, Learning and Regional Development, Lit Verlag. Schienstock, G. (2004), Embracing the Knowledge Economy: The Dynamic Transformation of the Finnish Innovation System, Edward Elgar. Scott, A. (2002), Global City-Regions: Trends, Theory, Policy, Oxford Press. Simme, J. (1997), Innovation Networks and Learning Regions, Routledge.

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Simmie, J. et al. (2001), Innovative Cities, Spon Press. Van Der Knapp, B. and Wever, E. (1986), New Technology and Regional Development, Routledge. Vazquez, A. (2003), Endogenous Development: Networking, Innovation, Institutions and Cities, Routledge. Vlachos, E. et al., Knowledge for Inclusive Development, Greenwood Press. Wagner, C. (2001), ‘‘Megacities of the future’’, The Futurist, Vol. 35 No. 6.

Electronic references In this section we provide electronic references on KC and KBD. Bugliarello, G. (2001), ‘‘Rethinking urbanization’’, The Bridge, Vol. 31 No. 1 www.nae.edu/nae/naehome.nsf/66d32a09cf594c7785256cf50048f4a0/ 828366ed59db733885256bb100752dd0/$FILE/2001Bridge1.pdf BVS Equidad y Desarrollo Humano. www.bireme.br/crics5/E/grupos/grupo2/Argentina-BVS%20Equidad%20y%20Desarrollo% 20Humano.doc Carrillo, J. (2003), ‘‘A note on knowledge-based development’’. www.sistemasdeconocimiento.org/Materiales_de_Difusion/archivos_pdf/notas_tecnicas/2003_PDF/ csc2003-07.pdf Center for Knowledge Systems (CKS) (2003), ‘‘Forum on knowledge-based development’’. www.knowledgesystems.org/e100mty Cooke P. (2002), ‘‘Regional innovation systems, clusters & the knowledge economy: European comparisons’’, Centre for Advanced Studies University of Wales, Cardiff. www.kommunikation.aau.dk/ddn/Filertildownload/konferencenovember2002/ AalborgITC_PhilCooke.pdf Cono, N. (2000), ‘‘Knowledge strategy and ‘Ba’ – the practice of knowledge-based management’’. www.knowledgeinnovation.org/pdf/kmpres01.pdf Dvir, R. (2003), ‘‘Innovation engines for knowledge cities: historic and contemporary snap shots’’. www.knowledgeboard.com/download/3149/innovation-engines-for-knowledge-cities-ron-dvir-22nov.doc Drucker, P. (1994), ‘‘Knowledge work and knowledge society – the social’’, Harvard University’s John F. Kennedy School of Government. www.ksg.harvard.edu/ifactory/ksgpress/www/ksg_news/transcripts/drucklec.htm Heinz Endowments, Pittsburgh Regional Alliance & Innovation Works, Inc. (1999), ‘‘Innovative regions: the importance of place and networks in the innovative economy’’. www.coecon.com/publications/InnovativeRegions.pdf Henton, D. (1999), ‘‘Innovative regions: the importance of place and networks in the innovative economy’’. www.coecon.com/publications/InnovativeRegions.pdf Kotkin, J. and Devol, R. (2001), ‘‘Knowledge-value cities in the digital age’’, Milken Institute. www.milkeninstitute.org/pdf/kvdc.pdf McDaniel B., ‘‘Social change and future of cities’’. http://publish.uwo.ca/~mcdaniel/futcommap/FutCit.html Moro´n, A. ‘‘La administraciœn del conocimiento como polı´tica de desarrollo nacional en la actualidad’’. www.gestiopolis.com/canales/gerencial/articulos/47/kmpp.htm Okubo, M., ‘‘Future Technopolis changes its form – from visible to invisible’’. www.wtanet.org/eng/wta/data/symposium/98/3-2.htm Schwartz, G. ‘‘Knowledge city: a digital knowware’’. http://thinkcycle.media.mit.edu/thinkcycle/main/development_by_design_2001/ knowledge_city_a_digital_knowware/ Seden˜o Y. ‘‘La gestio´n del conocimiento, una nueva alternativa para el desarrollo de la economı´a latinoamericana – el caso de Cuba’’. www.gestiopolis.com/recursos/documentos/fulldocs/ger/kmcuba.htm SGS Economics and Planning (2002), ‘‘Creating and sustaining a knowledge city’’, Bulletin Urbecon. www.sgs-pl.com.au/Urbecon%20August%202002.pdf

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Sivan, Y. and Rosen, J. (2001), ‘‘Note #11: Introducing the knowledge city’’, WebNet Journal, JulySeptember. www.k2k.com/Forms/Interface.pdf? Stavrou, S. (2003), ‘‘Building learning regions: an innovative concept for active employment policy’’. www.hp2003ledforum.org/eng/context/stavrou.doc Toh, J. (1999), ‘‘Intelligent city Singapore awarded first-ever ‘intelligent city’ ’’. www.ida.gov.sg/idaweb/media/infopage.jsp?infopagecategory=ncbarchivemediareleases.mr:media& versionid=4&infopageid=I1046 Trulle´n, J. et al. (2002), ‘‘Economı´a del conocimiento, ciudad y competitividad; Oviedo’’. www.revecap.com/veea/autores/T/96.doc Van den Berg, L. et al., ‘‘Cities in the knowledge economy, a literature review and a research framework’’, EURICUR, Erasmus University Rotterdam http://web.eur.nl/alumni/archief/dec2003/italy/discussionpaper.doc Venkatasubramanian cited at Elcot, 2003. ‘‘Panel to give shape to ‘knowledge society’ concept’’. www.elcot.com/itnews/jan03/nh180103.htm ‘‘Culture, the motor of the knowledge city – strategic plan of the cultural sector of Barcelona’’. www.bcn.es/accentcultura/angl/webang.doc Information Technology for Development. ‘‘The emerging knowledge based economy in Latin America and The Caribbean’’. www.iadb.org/sds/itdev/ictdevemerging.htm Knowledge City. http://pbwi2www.uni-paderborn.de/WWW/TEMP/CSteiger/WEBCONNECTOR.NSF/Liste_HTML/ Start?opendocument www.bireme.br/crics5/E/grupos/grupo2/ArgentinaSmart Communities www.smartcommunities.org/

End note This document is a first attempt to compile public material related to the topics of KC and KBD. As from 1 June 2004, the KC Clearinghouse Web site has been operating at www.knowledgecities.com. Updated information, additional contents not included in this report and further KC and KBD materials are available at this site.

Notes Except for notes 1 and when the full bibliographic reference is provided, all endnotes are referred to the Electronic References section, where the corresponding electronic address is included. 1. The Knowledge Cities Clearinghouse (www.knowledgecities.com). 2. SGS Economic & Planning (2002), Knowledge cities, Bulletin Urbecon. 3. Edvinsson cited at Dvir (2003), ‘‘Innovation engines for knowledge cities: historic and contemporary snap shots’’. 4. Culture, the motor of the knowledge city – Strategic Plan of the Cultural Sector of Barcelona. See also SGS economic & planning (2002), Knowledge cities, Bulletin Urbecon. 5. Carrillo, F.J. (2003), ‘‘A note on knowledge-based development’’, Center for Knowledge Systems (CKS). 6. Kotkin, J. and Devol, R. (2001), Knowledge-Value Cities in the Digital Age, Milken. 7. Notes of SC-00-116 Course ‘‘Capital Systems’’, 1st Term 2004, dictated by Prof. F.J. Carrillo. KM Specialization Program, Tecnolo´gico de Monterrey, Mexico. 8. Heinz Endowments, Pittsburgh Regional Alliance & Innovation Works, Inc. (1999), Innovative regions: The Importance of Place and Networks in the Innovative Economy, Heinz Endowments. 9. Toh, J. (1999), ‘‘Singapore awarded first-ever ‘‘Intelligent City’’ award by World Teleport Association and Telecommunications Magazine’’. 10. Carrillo, F.J. (2002), ‘‘Capital systems: implications for a global knowledge agenda’’, Journal of Knowledge Management, Vol. 6 No. 4.

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11. Center for Knowledge Systems (2003), 2003 Forum on Knowledge-based Development (KBD). 12. Arbonı´es, A. and Mosso, M. (2003), ‘‘Basque Country: the knowledge cluster’’, Journal of Knowledge Management, Vol. 6 No. 4. 13. Venkatasubramanian cited at Elcot (2003), Knowledge Society. 14. Drucker, P. (1994), Knowledge Work and Knowledge Society – The Social, Harvard University’s John F. Kennedy School of Government. 15. Stavrou, S. (2003), ‘‘Building learning regions – an innovative concept for active employment policy’’. 16. D’Auria, A.J. (2001), ‘‘City networks and sustainability – the role of knowledge and of cultural heritage in globalization’’, International Journal of Sustainability in Higher Education. 17. The World Foundation for Smart Communities. 18. Masakazu, O. ‘‘Future Technopolis changes its form – from visible to invisible’’. 19. Dvir, R. (2003), ‘‘Innovation engines for knowledge cities: historic and contemporary snap shots’’. 20. Notes of SC-00-116 Course ‘‘Capital Systems’’, 1st Term 2004, dictated by Prof. F.J. Carrillo. KM Specialization Program, Tecnolo´gico de Monterrey, Mexico.

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