KMME 2014 Zaid Hamzah

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Emergence of the Intellectual Capital Economy: Singapore’s Na�onal Experience in Strategic Knowledge Management

Insights from Zaid Hamzah

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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


7 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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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


Smart City Project 25 26

“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 ….…..



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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…..


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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

34 Expor�ng Development Exper�se

35 Expor�ng City Design Experience

36 Expor�ng Exper�se in Sustainable Development


37 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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KMME 2014 Zaid Hamzah

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