The Trapeze Parable:

The Trapeze Parable:

A Call for the Bretton Woods of the Knowledge Economy

There is a relevant metaphor of the Trapeze Parable discovered years ago in Venezuela, but it was originally published in Spain - http://www.entovation.com/gkp/trapeze.htm. Essentially, we are suspended amidst the current global meltdown…and we need to move swiftly, but decisively, toward defining the new conditions and apparatus for the Knowledge Economy…but how?!

Here are some of the thoughts and what we have been tracking...

Knowledge - in the form of intellectual capital - is the new currency of the Knowledge Economy. Innovation is how knowledge created wealth. We've reached the law of diminishing returns on Competitive Strategy…and entered the era of Collaborative Advantage.

In 1987, we published the findings of a National Roundtable – “Managing Knowledge Assets into the 21^st Century” and first wrote about ‘intellectual capital. This was the same time E100 Karl-Erik Sveiby (then from Sweden and now living in Finland) wrote The Know-How Company and Hiroyuki Itami (a student of E100 Ikujiru Nonaka in Japan) published Invisible Assets. See the ENTOVATION Timeline.

In 1997, I published Innovation Strategy for the Knowledge Economy with Knowledge Economics integrated into the new management architecture - designed to link performance, structure, people, process and technology. Several chapters reference the need for ‘The World Trade of Ideas.’

In 1997 a research report entitled, Creating the Knowledge-based Business, co-authored with E100 Dr. David Skyrme (UK) was published by Business Intelligence. Note: there was an entire chapter dedicated to Performance Measurement.

In 1998, a report was published by the Society of Management Accountants (Canada) entitled Collaborative Innovation and the Knowledge Economy. Included was a full appendix devoted to the trends (analyzed by and E100 Jan Wyllie from TrendMonitor in the UK) – the ‘Economics of Intangible Value’. Since then, we have done an analysis of the threat, opportunity and strategies for each.

The E100 - those featured on the Global Knowledge Leadership Map – now 165 across 65 nations - have been interviewed and their collective vision was articulated in 1999 - "A new economic world order based upon the flow of knowledge, innovation systems, stakeholder innovation and collaborative advantage."

In 1998-99, The World Bank issued its World Development Report – Knowledge for Development - intended to convert the Bank into a world knowledge bank.

The Brookings Institute released its report on Intangibles by E100 Baruch Lev (USA).

Summer 2000, the World Trade Group (UK) published the article “The Power of Innovation Capital: Leveraging Collaborative Advantage” in Business Excellence, No. 1.

In 2001, ENTOVATION published the ‘IC of Nations’.

In an E100 international ENTOVATION Roundtable in Finland (2003), we called for The Bretton Woods of the Knowledge Economy. Note, in particular, the Morgenthau quote from Bretton Woods in 1944. Also note the reference to the ‘Declaration of Interdependence’ which became the ‘KIZ Declaration’.

With the Knowledge Innovation Zone (KIZ) Initiative, we began to track forms of comparative ranking systems.

In 2003, I published The Innovation SuperHighway with a full chapter dedicated to “Knowledge Economics”. The 16th chapter is “Blueprint for 21^st Century Innovation; and the 17^th and final chapter is entitled ‘Creating the World Trade of Ideas.’ It leads with the kaleidoscope quote of Tony Blair.

In 2003, Jürgen H. Daum, releases his book - "Intangible Assets and Value Creation".

In 2005, ENTOVATION a trilogy of books entitled Knowledge Economics: Principles, Practices and Policies. All was released at The World Summit on Innovation and Entrepreneurship (WSIE) and another E100 Roundtable in Muscat, Oman.

At the same time, the State-of-the-World KIZ Preview was released.

In 2003, the United Nations produced two reports – “Understanding Knowledge Societies”.

In 2005, UNESCO released its report “Toward Knowledge Societies”.

February 13^th, 2006, the cover story in BusinessWeek is ‘Unmasking the Economy’ - an article by Michael Mandel, with Steve Hamm and Christopher J. Farrell.

February 2006, we completed an analysis of new external performance indicators (see attached) and published an article in IC Magazine - “The Triple Knowledge Lens” (i.e., Knowledge-based ECONOMY, Knowledge-based SOCIETY, and Knowledge-based INFRASTRUCTURE) – beyond sustainability reporting.

We discovered the Society of Knowledge Economics in Australia.

Knowledge Economics is an integral part of our Architecture (see graphics attached).

Dr. R.A. Mashelkar (India) wrote about the 'Economics of Knowledge'.

Mario Raich issued the article "Economics and Political ' Economics in the Age of Knowledge ' through educatis.com..

A year ago, I delivered a course on Knowledge Economics for the Arabian Knowledge Economy Association (AKEA) for countries across the Middle East - All was put into perspective with notable economists: Joseph Alois Schumpeter, Karl Polyani, Fritz Machlup, and more recently Tom Friedman.

Also in January, 2008, an Advisory Board chaired by Carl Shramm, CEO of The Kauffman Foundation, used a report on Innovation Measurement to the US Department of Commerce.

In January 2008, we premiered the P⁷ KIZ Blueprint for the Confederation of Indian Industry (CII) in Bangalore. For the 1st time, we have a methodology to integrate performance measures into the innovation strategy for a company, region, country or even a virtual community: Purpose, Principles, Process, Performance, Policies, Practices and Prosperity (through ongoing stakeholder innovation).

In March 2008, the Institute if Certified Financial Accountants of India (ICFAI) produced an entire issue of Effective Executive dedicated to "Collaborative Advantage" which included my own article, “Collaborating for Innovation”.

March 21^st, an E100 Alert was issued on Measuring KIZ Performance. It includes a self-inventory that can be done by any enterprise.

In June 2008, the Institute if Certified Financial Accountants of India (ICFAI) published my article – “The Knowledge Innovation Kaleidoscope” – in an issue of Effective Executive. The article outlines the 15 capital drivers of intellectual capital and detailed description of the KIZ P⁷ Blueprint.

On September 11, 2008, Michael Mandel, Chief Economist for BusinessWeek, issued a video and article on “Innovation Economics”. This is basically the same as we articulate in Knowledge Economics.

November 12^th is the date of the G20 Summit and discussion of a ‘new world order’.

In November, Jean Dermine, INSEAD Professor of Banking and Finance is featured in the INSEAD newsletter calling for “Blueprint for a new international financial order”.

On November 26^th, Sami Mahroum published a ‘viewpoint’ in Science-Business Bulletin on The crisis-torn global economy needs a World Knowledge Fund to revive it.”

On January 6^th, 2009, Dr. Henry Kissinger – in speaking of US-China Relations – acknowledged, “Today, we have ‘a common opportunity’ to build a stable new world order because the international economic system has to be rebuilt." Note his vision is closely aligned with the E100 vision of 1999!!!

January 20^th, Grant Thornton LLP supports Key Performance Indicators as the Next Step in Financial Reporting Transparency.

February 17-18^th, the IA Center convenes the 3^rd International IFKAD Congress - with my keynote and two days of intensive dialogue.

Conference and subsequent Conference and article – Time for a Bretton Woods of the Innovation Economy - appear in Science-Business, a media firm operating out of Brussels dedicated to the European community. They included a Declaration.
They invited me to offer my Viewpoint. My conclusion was three-fold which leads us to our New York December Roundtable.

On to New York City (4-5 December 2009)…together!

Debra