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A quest for knowledgebased (urban)
development: knowledge
assets and networks of
Istanbul, Turkey

Dr Koray Velibeyoglu &
Dr Tan Yigitcanlar
3rd International Symposium on
Knowledge Cities
17-19 November 2008 Istanbul – Turkey
Knowledge assets and networks of Istanbul
Presentation Outline
•

The key concepts and terms:
– Knowledge City, Knowledge-based Urban Development
– Assets and Networks

•

Istanbul’s world city discourse and beyond

•

Istanbul’s assets and capital systems
– Knowledge asset base
– Other supporting bases

•

Istanbul’s global networks
– Hard networks
– Soft networks

•

Concluding Remarks
Knowledge City: Foundations
knowledge
precincts

S
C
A
L
E

knowledge
villages

Knowledge
City
knowledge
corridors

knowledge
regions

D
R
I
V
E
R
S

F
O
U
N
D
A
T
I
O
N
S

knowledge base
Basic

economic base
quality of life
urban diversity
social equity
organising capacity
Asset base
Networks

Supporting
Knowledge-based (Urban) Development
Asset: Definitions and Categories
•
•
•

An asset literally means useful and desirable thing that is worth having or
quality for personal, social, economic or cultural benefit.
A resource with economic value that an individual, corporation or country
owns or controls with the expectation that it will provide future benefit.
A stock of financial, human, natural or social resources that can be acquired,
developed, improved and transferred across generations.
Intangible
Assets

NonFinancial
Assets
Tangible
Assets

Cultural and
Historical Assets

Natural and
Environmental
Assets

Knowledge
Assets

PhysicalInfrastructural
Assets

Social and
Human Assets
Asset: Types
Financial Asset: Stocks, bonds, bank
deposits, and the like, it does not
necessarily have physical worth.

All
Assets

Non-Financial Asset: An asset with a
physical value such as land, property or
some type of object, it is physical and have
values based upon their physical properties.
Intangible Asset: not physical in nature.
Knowledge assets like intellectual property
(items such as patents, trademarks,
copyrights, business methodologies) is
common intangible asset in today's
economy.
Tangible Asset: An asset that has a
physical form such as machinery, buildings
and land.

Financial
Assets
Intangible
Assets

NonFinancial
Assets
Tangible
Assets
Knowledge Asset Base

Tangible
Knowledge
Clusters and
Technology
Hotspots

Universities
and R&D
Centres

Intangible
Quality Human
Stock and
Infrastructures

Intellectual
Property (i.e.
Patent,
Trademarks)

Innovation
and
Creativity
Capacity

Capital
Systems (i.e.
Social,
Cultural)
Networks: Definitions
A network is a set of
interconnected nodes.Networks
consist of nodes and links.
•

Nodes: A node is the point
where the curve intersects itself.
Every “node” (which can be a
company, a person, but also a
city) in the knowledge network
develops its own specialization.

•

Links: A link is the means of
connecting one location to
another.
A completely-connected set of nodes

Source: Castells, 1999; Salingaros (2003)
Urban Networks, City and Competitiveness
Urban Networks:

Urban Networks and Competitiveness:
•

there are many nodes with only a
few links and consequently a low
degree of competitiveness, but only
a few highly competitive nodes with
a large number of links (Power Law
distribution of networks).

Functional Approach

Links refer to quantifying various
interactions between economic
players dealing with business, R&D,
design, marketing, logistics etc.

Network Approach

Symbolic Approach

•

Spatial Logic

Nodes include potential economic
players such as business firms,
financial institutions and
governments.
Cognitive Logic

•

City as Interconnection
• city as a node in multiple and interacting transport,
economic and communication networks
• city as interconnection between place and node
City as Symbol
• city overcoming time and space
• city as symbol of territorial control
• city as producer of symbols, codes, and languages

Source: Camagni (1991); Drewe (2005)
Hard and Soft Networks
•

Hard Networks: infrastructure-dependent
networks
– Transportation Networks (roads,
intersections, parking areas, rail
infrastructure, railway stations, inland
waterways, inland harbors, sea lanes,
seaports, aviation routes and airports)
– ICT infrastructure
– Water and Energy Networks
Connection

•

Soft Networks: gathering knowledge via
people-related social interaction

Cooperation

– Research and knowledge networks
– Cultural and institutional networks
–

Collaboration

Networks of territorial authorities
Partnership

Alliance
Analysis Framework
Istanbul as World City: Different Periods

ISTANBUL

Istanbul as a Istanbul as imperial
trade colony capital of Byzantine
and Ottoman Empire
7th
Century
BC

Between
1st and
Early 20th
Century

Istanbul as economic
and cultural capital of
Turkish Republic
Early
1980s

Istanbul as
world city

1990s

Istanbul as an
emerging
Knowledge city?
21st
Century

Source: Yenen (1993); GAWC(2000)
Knowledge Asset base of Istanbul
Universities and R&D Centers
•

Universities perform the role of ‘local knowledge hubs’ bringing
global knowledge into the region. Those knowledge hubs can be
considered as the core of the formation of new knowledge precinct
developments where the learning value has the prime importance.
University-centered developments have a special foci on research,
experimentation, and testing that has created the triple-helix model
of innovation (public-private-academia partnership)
Knowledge Clusters and
Technology Hotspots
•

•

•

As a centre of national culture and media industries Istanbul can
easily exploit specific niches for instance in design and fashion in
line with a careful clustering policy and urban knowledge precincts
for creative industries.
Two spontaneous knowledge clusters and technology hotspots in
Istanbul:
– Maslak-Taksim Axis: big media conglomerates and ICT firms in
new business centre
– Kadikoy-Pendik Axis: ICT-based services in the Asian side of
Istanbul.
However, there is no sign of designed cluster policy and formation of
new urban knowledge precincts in this regard, particularly no
evidence of knowledge community precinct development.
Quality Human Stock:
Talent, Innovation and Creativity
•
•

•

Quality of human stock and talent pool is vital for knowledge-based
urban development of Istanbul.
The lack of appropriate secondary and tertiary education is a
significant bottleneck for knowledge society strategies in Istanbul as
well as rest of Turkey. This holds back the knowledge intensive
sectors, like Istanbul’s software industry, as it does not produce the
required skilled human stock for the market.
Istanbul is either underdeveloped or not significantly strong in terms
of competitiveness and innovativeness. Nevertheless, as a result of
its natural, historical and architectural assets, growing urban
infrastructure investments and advanced service industries,
Istanbul’s economic and resident skill base are still good enough to
accommodate more qualified jobs and international talent in the
foreseeable future.
Other Supporting Bases
•

•

Strong economic base: Istanbul produces 26 percent
of the gross added values of the entire Turkish
economy. Istanbul has registered one of the highest
output growth rates since the mid-1990s. Istanbul has
also attracted most of the FDI in the country,
particularly in producer services.
Socio-cultural base Istanbul has many strong assets
to attract knowledge workers seeking to live and work
in an ‘authentic’ and ‘historical’ place:
–
–
–
–
–

its very location,
its unique architectural heritage,
vibrant urban districts,
the legacy of its historical heritage, and
its wide range of other attractions
Global Networks of Istanbul

ISTANBUL

Cyberspace Atlas, Dodge (2001)
Hard Networks: Financial Power

Based on Kunzmann (1997)
Hard Networks: Energy
EU will need to
be connected to
the Turkish
network by 2010
to receive gas
from the Caspian
Sea region
and/or the
Middle East.

Source: INOGATE (2003)
Hard Networks: Airports

Based on Kunzmann (1997)
Hard Networks: Railroads

Iron Silk Road Project: a land-bridge between main routes of Eurasia
Source: Schiller Institute (2002)
Soft Networks: Culture
The European
Capital of Culture
1985: Athens
1988: Berlin
1991: Dublin
1994: Lisbon
1997: Thessalonica
1998: Stockholm
2001: Porto,
2003: Graz
2004: Genoa
2008: Liverpool
2009: Lithuania
Vilnius
2010: Istanbul

Based on Kunzmann (1997)
Soft Networks: Organizations

Sister Cities Network of Istanbul around Europe and MENA region.
Opportunities and Constraints
Opportunities:
• quality of supporting bases to
promote knowledge asset
base (cultural, historical,
logistical and financial assets)
• increasing economic linkages
with (inter)national hinterland
• Rising investment and
awareness on biotechnology
(i.e. pharmaceutical) and
software industry (i.e. Valley of
Informatics Project)

Constraints:
• massiveness of labor-intensive
activities in the economic base
and lack of skilled human stock
for the advanced industries
• constraints on human capital
development,
• large informal sector and
increased income disparities,
• over-migration decaying urban
infrastructures,
• lack of affordable housing,
• high earthquake and quality of
life risk
Further Actions for Developing
Knowledge Asset Base

1.

2.

3.

Istanbul does benefit from its important assets and international
networks in the knowledge-based development of the city but
reforms and new strategies are needed:
Sectoral mix of technology zones should be seriously
reconsidered. New creative industry sectors like design and
fashion incubators should be initiated.
Istanbul should use the knowledge as the most strategic element
for the integration to the global system. Therefore, strategy and
initiatives for leveraging knowledge assets should be based on
city’s unique assets and opportunities.
To enhance Istanbul’s knowledge base there is a crucial need to
move towards a knowledge-based urban development and
investment structure based on the triple-helix model. R&D
activities should be thematically concentrated and industryuniversity relations should be enhanced to increase
competitiveness and create high-skilled employment.
‘Asset Management’ as a starting point for
Knowledge-based Development of Istanbul
Asset Identification
(Inventory, Mapping)

In order to improve
solid asset base, a
long-term asset
building strategy and
careful asset
management
framework should be
applied for Istanbul.

Asset Valuation
(Evaluation of strengths and Selection of
Priority Areas)
Integration with City Vision and other strategic
goals, objectives and plans

Preparation of Asset Management Plan
(Short Term/Long Term)
Selection of Application Projects
(According to Calculating Risk and Benefits)

Project
Implementations
New Produced Assets
Performance
Monitoring

Financial and
Institutional
Resources
Organizational
Capacity

This framework is now
generic, more
empirically focused
research is needed for
mapping Istanbul’s
knowledge asset base.
KEY REFERENCES ON KNOWLEDGE-BASED URBAN
DEVELOPMENT
PREMIER REFERENCE SOURCE

KNOWLEDGE-BASED
DEVELOPMENT OF CITIES
AND SOCIETIES
An Integrated Multi-level Approach

YIGITCANLAR, VELIBEYOGLU & BAUM

YIGITCANLAR, VELIBEYOGLU & BAUM

METAXIOTIS, CARRILLO & YIGITCANLAR

Yigitcanlar, T., Velibeyoglu, K. and Baum, S., (Eds.) (2008), ‘Knowledge‐based urban development: planning and applications in the information era’, London: 
Information Science Reference.
Yigitcanlar, T., Velibeyoglu, K. and Baum, S., (Eds.) (2008), ‘Creative urban regions: harnessing urban technologies to support knowledge city initiatives’, London: 
Information Science Reference. 
Metaxiotis, K., Carrillo, J. and Yigitcanlar, T., (Eds.) (2009), ‘Knowledge‐based development of cities and societies: an integrated multi‐level approach’, London: 
Information Science Reference.

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Velibeyoglu istanbul kc_presentation

  • 1. A quest for knowledgebased (urban) development: knowledge assets and networks of Istanbul, Turkey Dr Koray Velibeyoglu & Dr Tan Yigitcanlar 3rd International Symposium on Knowledge Cities 17-19 November 2008 Istanbul – Turkey
  • 2. Knowledge assets and networks of Istanbul Presentation Outline • The key concepts and terms: – Knowledge City, Knowledge-based Urban Development – Assets and Networks • Istanbul’s world city discourse and beyond • Istanbul’s assets and capital systems – Knowledge asset base – Other supporting bases • Istanbul’s global networks – Hard networks – Soft networks • Concluding Remarks
  • 3. Knowledge City: Foundations knowledge precincts S C A L E knowledge villages Knowledge City knowledge corridors knowledge regions D R I V E R S F O U N D A T I O N S knowledge base Basic economic base quality of life urban diversity social equity organising capacity Asset base Networks Supporting
  • 5. Asset: Definitions and Categories • • • An asset literally means useful and desirable thing that is worth having or quality for personal, social, economic or cultural benefit. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. A stock of financial, human, natural or social resources that can be acquired, developed, improved and transferred across generations. Intangible Assets NonFinancial Assets Tangible Assets Cultural and Historical Assets Natural and Environmental Assets Knowledge Assets PhysicalInfrastructural Assets Social and Human Assets
  • 6. Asset: Types Financial Asset: Stocks, bonds, bank deposits, and the like, it does not necessarily have physical worth. All Assets Non-Financial Asset: An asset with a physical value such as land, property or some type of object, it is physical and have values based upon their physical properties. Intangible Asset: not physical in nature. Knowledge assets like intellectual property (items such as patents, trademarks, copyrights, business methodologies) is common intangible asset in today's economy. Tangible Asset: An asset that has a physical form such as machinery, buildings and land. Financial Assets Intangible Assets NonFinancial Assets Tangible Assets
  • 7. Knowledge Asset Base Tangible Knowledge Clusters and Technology Hotspots Universities and R&D Centres Intangible Quality Human Stock and Infrastructures Intellectual Property (i.e. Patent, Trademarks) Innovation and Creativity Capacity Capital Systems (i.e. Social, Cultural)
  • 8. Networks: Definitions A network is a set of interconnected nodes.Networks consist of nodes and links. • Nodes: A node is the point where the curve intersects itself. Every “node” (which can be a company, a person, but also a city) in the knowledge network develops its own specialization. • Links: A link is the means of connecting one location to another. A completely-connected set of nodes Source: Castells, 1999; Salingaros (2003)
  • 9. Urban Networks, City and Competitiveness Urban Networks: Urban Networks and Competitiveness: • there are many nodes with only a few links and consequently a low degree of competitiveness, but only a few highly competitive nodes with a large number of links (Power Law distribution of networks). Functional Approach Links refer to quantifying various interactions between economic players dealing with business, R&D, design, marketing, logistics etc. Network Approach Symbolic Approach • Spatial Logic Nodes include potential economic players such as business firms, financial institutions and governments. Cognitive Logic • City as Interconnection • city as a node in multiple and interacting transport, economic and communication networks • city as interconnection between place and node City as Symbol • city overcoming time and space • city as symbol of territorial control • city as producer of symbols, codes, and languages Source: Camagni (1991); Drewe (2005)
  • 10. Hard and Soft Networks • Hard Networks: infrastructure-dependent networks – Transportation Networks (roads, intersections, parking areas, rail infrastructure, railway stations, inland waterways, inland harbors, sea lanes, seaports, aviation routes and airports) – ICT infrastructure – Water and Energy Networks Connection • Soft Networks: gathering knowledge via people-related social interaction Cooperation – Research and knowledge networks – Cultural and institutional networks – Collaboration Networks of territorial authorities Partnership Alliance
  • 12. Istanbul as World City: Different Periods ISTANBUL Istanbul as a Istanbul as imperial trade colony capital of Byzantine and Ottoman Empire 7th Century BC Between 1st and Early 20th Century Istanbul as economic and cultural capital of Turkish Republic Early 1980s Istanbul as world city 1990s Istanbul as an emerging Knowledge city? 21st Century Source: Yenen (1993); GAWC(2000)
  • 13. Knowledge Asset base of Istanbul
  • 14. Universities and R&D Centers • Universities perform the role of ‘local knowledge hubs’ bringing global knowledge into the region. Those knowledge hubs can be considered as the core of the formation of new knowledge precinct developments where the learning value has the prime importance. University-centered developments have a special foci on research, experimentation, and testing that has created the triple-helix model of innovation (public-private-academia partnership)
  • 15. Knowledge Clusters and Technology Hotspots • • • As a centre of national culture and media industries Istanbul can easily exploit specific niches for instance in design and fashion in line with a careful clustering policy and urban knowledge precincts for creative industries. Two spontaneous knowledge clusters and technology hotspots in Istanbul: – Maslak-Taksim Axis: big media conglomerates and ICT firms in new business centre – Kadikoy-Pendik Axis: ICT-based services in the Asian side of Istanbul. However, there is no sign of designed cluster policy and formation of new urban knowledge precincts in this regard, particularly no evidence of knowledge community precinct development.
  • 16. Quality Human Stock: Talent, Innovation and Creativity • • • Quality of human stock and talent pool is vital for knowledge-based urban development of Istanbul. The lack of appropriate secondary and tertiary education is a significant bottleneck for knowledge society strategies in Istanbul as well as rest of Turkey. This holds back the knowledge intensive sectors, like Istanbul’s software industry, as it does not produce the required skilled human stock for the market. Istanbul is either underdeveloped or not significantly strong in terms of competitiveness and innovativeness. Nevertheless, as a result of its natural, historical and architectural assets, growing urban infrastructure investments and advanced service industries, Istanbul’s economic and resident skill base are still good enough to accommodate more qualified jobs and international talent in the foreseeable future.
  • 17. Other Supporting Bases • • Strong economic base: Istanbul produces 26 percent of the gross added values of the entire Turkish economy. Istanbul has registered one of the highest output growth rates since the mid-1990s. Istanbul has also attracted most of the FDI in the country, particularly in producer services. Socio-cultural base Istanbul has many strong assets to attract knowledge workers seeking to live and work in an ‘authentic’ and ‘historical’ place: – – – – – its very location, its unique architectural heritage, vibrant urban districts, the legacy of its historical heritage, and its wide range of other attractions
  • 18. Global Networks of Istanbul ISTANBUL Cyberspace Atlas, Dodge (2001)
  • 19. Hard Networks: Financial Power Based on Kunzmann (1997)
  • 20. Hard Networks: Energy EU will need to be connected to the Turkish network by 2010 to receive gas from the Caspian Sea region and/or the Middle East. Source: INOGATE (2003)
  • 21. Hard Networks: Airports Based on Kunzmann (1997)
  • 22. Hard Networks: Railroads Iron Silk Road Project: a land-bridge between main routes of Eurasia Source: Schiller Institute (2002)
  • 23. Soft Networks: Culture The European Capital of Culture 1985: Athens 1988: Berlin 1991: Dublin 1994: Lisbon 1997: Thessalonica 1998: Stockholm 2001: Porto, 2003: Graz 2004: Genoa 2008: Liverpool 2009: Lithuania Vilnius 2010: Istanbul Based on Kunzmann (1997)
  • 24. Soft Networks: Organizations Sister Cities Network of Istanbul around Europe and MENA region.
  • 25. Opportunities and Constraints Opportunities: • quality of supporting bases to promote knowledge asset base (cultural, historical, logistical and financial assets) • increasing economic linkages with (inter)national hinterland • Rising investment and awareness on biotechnology (i.e. pharmaceutical) and software industry (i.e. Valley of Informatics Project) Constraints: • massiveness of labor-intensive activities in the economic base and lack of skilled human stock for the advanced industries • constraints on human capital development, • large informal sector and increased income disparities, • over-migration decaying urban infrastructures, • lack of affordable housing, • high earthquake and quality of life risk
  • 26. Further Actions for Developing Knowledge Asset Base 1. 2. 3. Istanbul does benefit from its important assets and international networks in the knowledge-based development of the city but reforms and new strategies are needed: Sectoral mix of technology zones should be seriously reconsidered. New creative industry sectors like design and fashion incubators should be initiated. Istanbul should use the knowledge as the most strategic element for the integration to the global system. Therefore, strategy and initiatives for leveraging knowledge assets should be based on city’s unique assets and opportunities. To enhance Istanbul’s knowledge base there is a crucial need to move towards a knowledge-based urban development and investment structure based on the triple-helix model. R&D activities should be thematically concentrated and industryuniversity relations should be enhanced to increase competitiveness and create high-skilled employment.
  • 27. ‘Asset Management’ as a starting point for Knowledge-based Development of Istanbul Asset Identification (Inventory, Mapping) In order to improve solid asset base, a long-term asset building strategy and careful asset management framework should be applied for Istanbul. Asset Valuation (Evaluation of strengths and Selection of Priority Areas) Integration with City Vision and other strategic goals, objectives and plans Preparation of Asset Management Plan (Short Term/Long Term) Selection of Application Projects (According to Calculating Risk and Benefits) Project Implementations New Produced Assets Performance Monitoring Financial and Institutional Resources Organizational Capacity This framework is now generic, more empirically focused research is needed for mapping Istanbul’s knowledge asset base.
  • 28. KEY REFERENCES ON KNOWLEDGE-BASED URBAN DEVELOPMENT PREMIER REFERENCE SOURCE KNOWLEDGE-BASED DEVELOPMENT OF CITIES AND SOCIETIES An Integrated Multi-level Approach YIGITCANLAR, VELIBEYOGLU & BAUM YIGITCANLAR, VELIBEYOGLU & BAUM METAXIOTIS, CARRILLO & YIGITCANLAR Yigitcanlar, T., Velibeyoglu, K. and Baum, S., (Eds.) (2008), ‘Knowledge‐based urban development: planning and applications in the information era’, London:  Information Science Reference. Yigitcanlar, T., Velibeyoglu, K. and Baum, S., (Eds.) (2008), ‘Creative urban regions: harnessing urban technologies to support knowledge city initiatives’, London:  Information Science Reference.  Metaxiotis, K., Carrillo, J. and Yigitcanlar, T., (Eds.) (2009), ‘Knowledge‐based development of cities and societies: an integrated multi‐level approach’, London:  Information Science Reference.