Zaid Hamzah's presentation at KM Middle East 2014, Dubai, UAE, 12 March 2014

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Emergence
of
the
Intellectual
Capital
Economy:
Singapore’s
Na�onal
Experience
in
Strategic
Knowledge
Management
Insights
from
Zaid
Hamzah
zaid@intellectualfutures.com
zaid.hamzah@fulbrightmail.org
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Synopsis
Emergence of the Intellectual Capital
Economy: Singapore’s National Experience
in Strategic Knowledge Management
Talk by Zaid Hamzah
Managing a nation’s intellectual capital assets to drive growth has become
a strategic imperative. Recognizing the economic value of intellectual
capital and knowledge assets in promoting national competitiveness,
Singapore has developed the strategic roadmap and has designed its
economy to become an intellectual capital economy. With almost US$13
billion allocated (2011-2015) for research and innovation, how will
Singapore secure its returns on knowledge investments? How will
Singapore design the next intellectual capital economy against the context
of an increasingly complex knowledge-intensive global economy? How will
Singapore shape the new growth order in the constantly shifting geo-
strategic economic landscape?
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Author of 9 books including “Intellectual
Property Law & Strategy” “Creating Value
From Technology Innovation*”
Technology Innovation & Investment Lawyer
Associate Lecturer, RMIT University
Past
Director for Intellectual Property at Microsoft, Asia
Pacific,
Chief Legal, Regulatory & Compliance Officer, Telekom
Malaysia
Founder of start up software company, i-Knowledge
Technologies Pte Ltd (dot com days….)
About
Zaid
Hamzah
Present
Role:
Strategic
Advisor
to
governments,
enterprises,
research
ins�tu�ons
on
IPR,
technology
commercializa�on,
IP-­‐based
financing,
intellectual
capital
management
Company
website:
www.intellectualfutures.com
Strategic
Intellectual
Capital
Prac��oner
Intellectual
Property
Strategist
Founder
,
Intellectual
Futures
* 7 other books on Media & Entertainment, Strategic Legal Risk Management, Electronic Security
Law, Information Technology Contracts, Biotechnology, Biomedical Science Law, Private Equity and
Venture Capital
IA
Intellectual
Asset
IC
Intellectual
Capital
ICM
Intellectual
Capital
Management
ICAM
Intellectual
Capital
Asset
Management
ICAP
Intellectual
Capital
Asset
Program
IC
Intellectual
Capital
ICT
Info-­‐Comm
Technology
IPR
Intellectual
Property
Rights
IPM
Intellectual
Property
Management
SIPM
Strategic
IP
Management
Acronyms
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Intellectual
Capital
can
be
used
to
generate
wealth
through
investment
.
Examples
of
intellectual
capital
include
knowledge
created
from
human
innova�on
,
corporate
brands
and
intellectual
property
rights
like
patents
and
copyrights
(eg
in
so�ware)
-­‐
all
of
these
things
are
inputs
that
can
be
used
to
create
wealth.
Like
physical
capital
(eg
technology-­‐driven
machinery)
intellectual
capital
are
used
in
produc�on
to
generate
wealth.
To
create
wealth,
intellectual
capital
are
typically
combined
with
labor
(the
work
of
individuals
who
exchange
their
�me
and
skills
for
money)
and
financial
capital.
Intellectual
capital
has
value
because
of
proprietary
rights.
Individuals
or
companies
can
claim
ownership
to
their
intellectual
capital
and
exploit
it
as
they
deem
fit.
They
can
also
transfer
ownership
of
their
intellectual
capital
to
other
individual
s
or
corpora�ons
and
keep
the
sale
proceeds.
Intellectual
Capital
&
Knowledge
Defini�on
and
parameters…..
The
Emerging
Singapore
Intellectual
Capital
Economy
Research
Powerhouse
Innova�on
Capital
Robust
Entrepreneurial
Hub

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Strategic
IP
Thought
Leadership
IP
Financial
Marketplace
Risk
Capital
Injec�on
$
16
billion
R&D
Academic
R&D
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Tiny
li�le
red
dot……
The
geography
of
complexity……
Designing
the
next
economic
space
THE
EMERGING
INTELLECTUAL
CAPITAL
ECONOMY
Since
Singapore
can
never
be
an
“aircra�
economy”
(like
China
and
India)
it
can
be
a
small,
luxury,
high
value
yacht…..char�ng
new
growth
pathway
in
a
new
order
The
Silicon
Valley
of
Asia……
The
New
York
of
Asia
……
The
Boston
of
Asia….
Asia’s
Intellectual
Capital
Playing
in
the
emerging
intellectual
capital
equity
space
The
Se�ng
Managing
a
na�on’s
intellectual
capital
assets
to
drive
growth
and
wealth
crea�on
has
now
become
a
strategic
economic
impera�ve.
In
the
race
of
na�ons,
all
countries,
whether
developed
or
emerging,
recognize
the
economic
value
of
intellectual
capital
in
promo�ng
na�onal
compe��veness.
Singapore
has
started
the
design
of
its
own
new
intellectual
capital
economy…..many
others
will
follow…….
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INTELLECTUAL
CAPITAL
Innovation
Creativity
Insights
Experience
Know how
Management
skills
Relationships
Patent
Copyright
Trademark
Design rights
Trade secrets
Human Capital
Invention
Technology
Brand
Systems
Process
Methodology
Database
Intellectual Capital comprises human capital, intellectual
assets and intellectual property rights which overlap
Intellectual
Assets
Intellectual
Property
Rights
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The
Big
Strategic
Picture
Within
the
last
quarter
century,
the
market
value
of
the
S&P
500
companies
has
deviated
greatly
from
their
book
value.
This
"value
gap"
indicates
that
physical
and
financial
accountable
assets
reflected
on
a
company's
balance
sheet
comprises
less
than
20%
of
the
true
value
of
the
average
firm.
Research
from
Ocean
Tomo,
a
leading
IPR
Investment
Banking
firm,
shows
that
a
significant
por�on
of
this
intangible
value
is
represented
by
patented
technology.
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Source:
www.oceantomo.com

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Economic
Transforma�on:
From
“IP
nega�ve”
to
“IP
posi�ve”
Source:
Tynax
presenta�on
slides
(Jon
Rortveit)
Japan
took
30
years
while
South
Korea
took
15
years.
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What
is
the
new
wealth
of
na�ons
?
Answer:
Intellectual
Capital……
Source:
Singapore
Na�onal
Research
Founda�on
Economic
transforma�on
is
already
taking
place
Factor-­‐driven
economy
Efficiency-­‐driven
economy
Innova�on-­‐driven
economy
Challenge:
How
to
accelerate
the
transforma�on,
grow
the
economy
and
capture
new
value
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Different
value
drivers
affect
different
regions/countries
along
the
development
path
It
is
easy
to
move
from
factor-­‐driven
economy
to
efficiency-­‐driven
economy
–
but
it
is
much
more
difficult
to
move
from
efficiency-­‐
driven
to
innova�on-­‐
driven
economy
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The
Singapore
Economy:
Sectoral
Contribu�ons
From
Service
Economy
to
Intellectual
Capital
Economy
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From
Service
Economy
to
Intellectual
Capital
Economy
“A*STAR
-­‐
unique
role
in
Singapore’s
innova�on
ecosystem,
as
the
lead
government
agency
in
cul�va�ng
scien�fic,
intellectual
and
human
capital”
Dr
Charles
Wessner,
Director
of
the
Academies
Innova�on
Program

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“R&D
is
an
important
ac�vity
in
a
knowledge-­‐
based
economy
like
Singapore.
Through
R&D,
we
discover
new
knowledge,
drive
innova�ons
that
improve
our
lives
and
we
develop
new
economic
opportuni�es.
R&D
is
integral
to
Singapore’s
development
strategy
-­‐
It
gives
us
an
edge
against
larger
and
be�er
resourced
countries.
It
helps
us
to
stay
abreast
of
scien�fic
breakthroughs
that
will
transform
our
lives.
It
prepares
us
in
skills
and
exper�se
that
will
enable
us
to
exploit
new
industries
and
new
economic
opportuni�es”
PM
LEE
HSIEN
LOONG
Singapore
Budget
2014
Deputy
Prime
Minister
Mr
Teo
Chee
Hean
September
2013
Economic
Development
Board
SINGAPORE
ECONOMIC
DEVELOPMENT
BOARD
Interna�onal
Advisory
Council
September
2013
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Source:
IPOS

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Smart
City
Project
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“So�”
Assets..so�
power
Knowledge
as
a
source
of
enduring
compe��veness
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Singapore’s
Strategic
Assets
&
Enduring
Compe��ve
Advantage
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What
was
once
our
strategic
weakness
is
now
a
source
of
thought
leadership
and
compe��ve
advantage
PM
LEE
HSIEN
LOONG
On
Singapore’s
Water
Supply.......
Strategic
Thoughts……
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The
changes
taking
place
in
manufacturing
are
evolving
in
a
way
that
is
advantageous
to
us
because
they
require
less
land,
less
labour,
but
more
knowledge
and
more
produc�vity
EDB’s
Interna�onal
Advisory
Council
Sept
2013
The
Knowledge
Advantage
….…..
Strategic
Thoughts……

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With
the
rise
of
global
trends
like
new
business
models
and
growing
“C2B”
(consumer
to
business)
market
where
customiza�on
is
key,
companies
will
compete
on
how
quickly
they
can
adapt
to
meet
the
needs
of
their
customers
rather
than
on
the
speed
of
their
processes
or
cost
of
their
products
EDB’s
Interna�onal
Advisory
Council
Sept
2013
The
Knowledge
Advantage
…..Applied
Analy�cs…..
Strategic
Thoughts……
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Expor�ng
Knowledge
Capital
”We need experts to tap on the knowledge of
emerging trends, technological advances and
existing capabilities so that we can identify what
are the promising research areas to pursue.
We need the industry and agencies to translate
findings into practical and economically-viable
solutions for us, some of which hopefully can
then be exported overseas.
We need the Government and the population to
be involved because finally, if we are going to
change the city and change the way we use
space and organize ourselves, the state has to
take the lead, make things happen and people
have to understand and make the system work”
PM
Lee
Hsien
Loong
November
2012
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Expor�ng
Development
Exper�se
35
Expor�ng
City
Design
Experience
36
Expor�ng
Exper�se
in
Sustainable
Development

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Expor�ng
Exper�se
in
Port
Management
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Case
Study
in
Industrial
Infrastructure
Building
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Intellectual
Property
in
the
Financial
Marketplace
IP
as
a
new
financial
asset
class
Over
the
past
few
decades,
IP
has
emerged
as
a
valuable
asset
class
in
financial
markets
along
with
real
estate,
equi�es,
fixed
income,
cash
equivalents
or
money
market
instruments
and
commodi�es.
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Asset
Class
Types
Real Estate
Stocks/
Equities
Fixed
Income
Cash
equivalents
PE
IPR has emerged as an asset class
PE: Private Equity
IPR: Intellectual Property Rights
IPR
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Soon
to
be
launched
in
Singapore……

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1. What
is
the
development
and
commercial
model
for
the
UAE?
2. What
is
the
op�mal
strategy
for
the
transforma�on
into
the
knowledge
economy?
3. What
are
the
challenges?
Issues
for
Reflec�on
END
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