Transcript The world knowledge competitiveness index - E-SGH

General information on WKCI
 Compares regions across some knowledge economy benchmarks
 2008: 145 regions: 63 represent North America, 54 from Europe,
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28 from Asia and Oceania
Eastern Europe: Latvia, Lithuania, Estonia, Prague, Bratislava,
Budapest
Asian and East European regions do not have GDP as high as the
rest of Europe and North America but have experienced a high
level of economic growth, especially rate of knowledge-based
economic growth
Regions selected on the basis of a survey of most internationally
competitive regions
Index provides a visible yardstick of economic strength and
weaknesses going beyond narrow focus on macroeconomic
performance
5 components of WKCI
 1. human capital
 2. financial capital
 3. knowledge capital
 4. regional economy outputs
 5. knowledge sustainability
Human capital components of
WKCI
 employment per 1 000 employees in production of:
 1)IT and computer manufacturing;
 2)biotechnology and chemicals;
 3)automotive and mechanical engineering;
 4)instrumentation and electrical machinery;
 5)high tech services
 Economic activity rate
 Number of managers per 1 000 employees
Knowledge capital components of
WKCI
 Per capita expenditures on:
 1)R&D performed by government
 2) R&D performed by business
 3) number of registered patents per one million
inhabitants
Knowledge sustainability
 Per capita public expenditures on:
 1) primary and secondary education
 2)higher education
 Secure servers per one million inhabitants
 Internet hosts per 1 000 inhabitants
 broadband access per 1 000 inhabitants
Regional economy outputs
 labor productivity,
 mean gross monthly earnings,
 unemployment rates AND
 Financial capital component: per capita private equity
investment
Financial capital
 Availability of venture capital
 Per capita private equity investment
How to calculate WKCI?
 Following statistical methods used :
 - factor analysis to simplify complex and diverse relationships among
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set of observed variables by uncovering factors that link together
unrelated variables
- an extraction method showing the location of each region within the
structure of the data provides the scores for sub-composite indices
-data envelopment analysis (DEA)( linear programming technique) to
obtain a single composite index from sub-composite indices.
-DEA seeks a set of weights for each region that maximises a weight
sum of variables, with the constrain that no region has a weighted sum
>1
-each region receives a score between 0 and 1
A DEA score: geometric mean of all scores is taken for each region
World knowledge competitiveness
index 2008 (top ten regions)
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1. San Jose-Sunnyvale-Santa Clara USA 248.3
2. Boston-Cambridge-Quincy USA
175.3
3. Hartford USA
175.1
4. Bridgeport-Stamford-Norwalk USA 174.7
5. San Francisco,-Oakland-Fremont USA160.8
6. Stockholm Sweden
151.8
7. Seattle-Tacoma-Bellevue USA
151.3
8. Providence-Fail River-Warwick USA 147.1
9. Tokyo Japan
147.0
San Diego-Carlsbad-San Marcos USA
146.1
Source: http://www.cforic.org/pages/wkci.php
number one in the ranking: US
metropolitan area San Jose
 The home of Silicon Valley is a leader because:
 -enormous investment in knowledge-intensive
business development in fields of: high technology,
engineering, computers and microprocessors
 - a large employment in knowledge sectors
 - number one for investment in education and
business R&D
 -a number one for productivity and earnings
Other top regions
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Number two: metropolitan area of Boston
-a region with high levels of intellectual and financial capital
- a home to 8 research universities including Harvard and MIT
Number three: Hartford with:
-high R&D spending and private equity investment, one of the
highest productivity
 Number sixth: Stockholm
 -continues improvement of the regions ranking because of:
business R&D spending, biotechnology and chemical
employment, higher education spending
 Ninth position of Tokyo (moves up from 22 place)
Emerging regions
 Regions from China, India and Eastern Europe
 Bagalore region (India) the lowest ranked
 Shanghai continues to perform best, being ahead of
Berlin and British Columbia
Why to analyze regions in a global
world?
 Does the progress in ICT diminish the importance of
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location?
NO, the location does matter in a global economy,
especially in knowledge intensive activities.
The geographic concentration of resources and industries
still important
„Location paradox” explained by M. Porter:
„Although global sourcing mitigates disadvantages, it does
not create advantages… paradoxically, the most enduring
competitive advantages in a global economy seem to be
local”.
Examples of localised advantages
of agglomeration
 -access to specialised inputs, employees, information
and institutions encourage firms to cluster new firms
attracted by the same advantages of concentration
 -factors increasing productivity encourage innovation
within the cluster
 Localised advantages of access to specialized
information via personal relationships
 traditional form of advantage vanish – competitive
advantage lying outside companies as the business
environment- become more important
Conclusion
Concept of localised competition
supports the thesis that data
analysis and policy approach
needed more at regional than
national level