1 National Intellectual Capital Index Dr. Nick BontisAssociate Professor of Strategic Management, McMaster U. Director, Institute for Intellectual Capital Research Associate Editor, Journal of Intellectual Capital Chief Knowledge Officer, Knexa Solutions

2 United Nations Benchmarking

3 Conceptual Model - Firm

4 Conceptual Model - Nation

5 Developed Nations AustraliaCanada China Finland France GermanyItaly Japan New Zealand Norway Russia Singapore Sweden UK USA

6 Descriptive Statistics (1 of 2)

7 Descriptive Statistics (2 of 2)

8 Prime Minister’s ReportCategory Canada's Performance Top Performer Economy Average U.S. Labour markets Top Innovation Poor Sweden Environment Education Health Japan

9 Financial Capital

10 Human Capital (1 of 2)

11 Human Capital (2 of 2)

12 Process Capital (1 of 2)

13 Process Capital (2 of 2)

14 Market Capital (1 of 1)

15 Renewal Capital (1 of 2)

16 Renewal Capital (2 of 2)

17 Development of the NFCI

18 Development of the NHCI

19 Development of the NPCI

20 Development of the NRCI

21 Development of the NMCI

22 Countries Ranked by NICIIs the NICI a good predictor of a nation’s wealth?

23 Structural Model of NICIH4 H6 H1 H2 H5 R2 = 20.9% H3

24 Modified NICI ? H3 H1 H4 H2 H5 H6 R2 = 20.9% H7 H8 H9 H10 R2 = 83.3%Poverty Gender Empowerment Health H3 H1 H4 H2 H5 H6 R2 = 20.9% H7 H8 H9 H10 R2 = 83.3% 0.578 -0.670 0.913

25 Poverty

26 Health

27 Gender Empowerment

28 Clustering by NICI and GDPSudan Kuwait Jordan Tunisia Egypt Morocco Yemen Algeria Oman S. Arabia 1.0 0.5 0.0 ? Relative GDP / capita NICI

29 G8 + by NICI and NCFI 4.0 Relative NFCI 0.0 -4.0 -2.0 -1.0 0.0 1.0 2.0United States 4.0 0.0 -4.0 Relative NFCI Sweden Russia Japan Finland Norway United Kingdom Germany Australia New Zealand France Singapore Italy China Canada Relative NICI

30 Further Developments ... IICR KM Diagnostic Tool (business and government) Health, financial services, software, chemical, hospital IICR KM Seminars (business and government) - certification Education (McMaster University, Tangonow.net) eFlow Audit (codified proxy of flow) World Congress (http://worldcongress.mcmaster.ca) Jan 19-21, 2005 Journal of Intellectual Capital (http://www.emeraldinsight.com/jic.htm) 1 text Oxford U. Press with Choo, 1 books with BH KMCI Press Knexa.com (Tribute incentive methodology, ICUs, rewards) NICI (National Intellectual Capital Index) for United Nations Longitudinal causal mapping with integration (RBC project) Citation impact (literature and cases) Knowledge auction experiments

31 Knexa Solutions New knowledge assets with old value measuresMarket mechanism “the invisible hand of the market” Exchanges what’s next? … talent markets … total markets Internet Auction Model E-bay, Yahoo, Bid.com, etc. … stickiness, bid-ask Cost / benefit micro calculation ICUs – electronic tokens and the reward of redemption

32 5 To Do’s Immediately Raise awareness about knowledge era challenges Action: Fully engage employees about KM Don’t throw training dollars down the toilet Action: Benchmark your T&D / FTE investment Attempt to recoup talent that leaves the firm Action: Implement universal exit (entry) interviews Accelerate your knowledge absorption rate Action: speed reading test (www.bontis.com/speedread) Be mindful of technology investments Action: Test that search costs are reduced

33 Thank you! Dr. Nick Bontis Ph.D. DeGroote Business SchoolSpeaking, training Keynotes, seminars research.htm Dr. Nick Bontis Ph.D. DeGroote Business School McMaster University Tel: (905) x23918 Fax: (905) Director, Institute for Intellectual Capital Research Chief Knowledge Officer (CKO), Knexa Solutions Associate Editor, Journal of Intellectual Capital Subject: Schulich KM