1. © José M. Viedma Marti, 2003. i C The 6th World Congress on Intellectual Capital and Innovation. January 15-17, 2003 Josep Ma. Viedma Professor of Business Administration at the Polytechnic University of Catalonia and President of Intellectual Capital Management Systems CICBS: Cities’ Intellectual Capital Benchmarking System A methodology and a framework for measuring and managing intellectual capital of cities. A practical aplication in the city of Mataró. http://intellectualcapitalmanagementsystems.com

2. © José M. Viedma Marti, 2003. i C The Context  In the past, the vision, objectives, and goals of cities have been determined mainly by considering tangible assets as the main factors of a city’s prosperity.  In the knowledge economy, the role of intangible assets in wealth creation has become fundamental  As a result a framework of intangible assets that allows navigation from the present reality to the future vision has become an urgent need for all cities.

3. © José M. Viedma Marti, 2003. i C Two parts of the paper 1 st. Part. -Development of CICBS a specific methodology and a framework for measuring and managing the intellectual capital of cities. 2 nd.Part. -Practical application of CICBS in the city of Mataró. -Providing some details of the first cities’ intellectual capital report

4. © José M. Viedma Marti, 2003. i C 1 st. Part The government of cities in the information society Important questions for city governments:  Which facilities must be offered by city governments if the city is to be the most attractive place in which to live?  How can innovative companies be attracted to the city?  How to foster entrepreneurship?  Which organisational structures are required?  How the city be transformed to face new technological changes successfully?

5. © José M. Viedma Marti, 2003. i C 1 st. Part The government of cities in the information society The new success formula will combine:  New technologies (microprocessor-based products).  Transportation (the Internet and broadband telecommunications).  Labour (the mix of office-goers, telecommuters, ‘road warriors’, and ‘corporate gypsies’).  Infrastructure (virtual organisations)

6. © José M. Viedma Marti, 2003. i C 1 st. Part Measurement and management of cities’ intellectual capital: The state of the art. Microeconomic perspective. Macroeconomic perspective. Skandia Navigator (Edvinson) Balanced Scorecard (Kaplan) Dublin a world class e-city (Chamber of Commerce) National Intellectual Capital Index: Intellectual capital Development in he Arab Region (Bontis) Invest in Sweden: Report 2002 (Rembe) The intellectual capital of the State of Israel (Pasher).

7. © José M. Viedma Marti, 2003. i C Cities’ specific Intellectual Capital Model Microcluster Nº1Microcluster Nº2Microcluster Nº3Microcluster Nº X Cities’ general Intellectual Capital Model Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision 1 st. Part CICBS City’s Intellectual Capital Benchmarking System

8. © José M. Viedma Marti, 2003. i C Benchmarking MataróTreviso 1.Creating the vision. 2.Identifying the core activities needed to realize the vision. 3.Identifying the core competencies needed to realize the core activities. 4.Identifying the indicators for each core activity and each core competence. 5.Assembling the indicators into different intellectual capital categories. 1 st. Part Cities’ general Intellectual Capital Model (CGICM) Common and general knowledge - an intellectual capital platform - that strengthens the existing microclusters of a city and nurtures the building of new ones.

9. © José M. Viedma Marti, 2003. i C 1 st. Part CGICM. Intellectual Capital Categories HUMAN CAPITAL. Tacit knowledge (knowledge, wisdom, expertise, intuition and the like) of individuals to realize city task and goals. PROCESS CAPITAL. Structural intellectual assets (information systems, software, databases, laboratories, organisational structure, management systems) which sustain and amplify the output of human capital. MARKET CAPITAL. Market assets (customer-city loyalty, strategic customers satisfaction, value of brands and so on) embedded in a city’s relationship with the national and international market. RENEWAL AND DEVELOPMENT CAPITAL. Renewal and development assets (investment in research and development, patents, trademarks, start-up companies and the like) aimed to the exploitation of cities competitive strength in future markets

10. © José M. Viedma Marti, 2003. i C 1 st. Part Cities’ specific Intellectual Capital Model (CSICM) Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Segment demand Output Products and services Processes Core competencies Professional core competencies Vision Microcluster Nº1 Homologous Microcluster Nº1 Best World reference city City A City B Benchmarking Draws inspiration from ICBS (Viedma)

11. © José M. Viedma Marti, 2003. i C 1 st. Part Cities’ specific Intellectual Capital Model (CSICM)

12. © José M. Viedma Marti, 2003. i C 2 nd. Part Practical application in the city of Mataró.  ICMM project (Intellectual Capital Management of the city of Mataró).  ICMM project objectives: 1) To finalize and coordinate the different initiatives of Mataró in orientating the city towards the information and the knowledge society. 2)To have a strategic planning navigation framework in the intangibles domain.

13. © José M. Viedma Marti, 2003. i C 2 nd. Part The City of Mataró.  Located in the north-east of Spain.  104.880 inhabitants and 22,6 square kilometres.  28 kilometres north of Barcelona.  Part of the metropolitan region of Barcelona.  Capital of the Maresme region (300.000 inhabitants, 397 square kilometres).  Area of high economic and tourist development.

14. © José M. Viedma Marti, 2003. i C 2 nd. Part Antecedents of the ICMM project. Macro projects Institutions Master plan for the Information Society in Mataró 1999. Mataró, knowledge city, January 2002. New Institutions created and Institutions strengthened. Tecnocampus Mataró. IMPEM PUMSA EUPM CETEMMSA

15. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró General Intellectual Capital Model. Covers the intellectual capital platform, which is common to all the relevant economic activities of Mataró city. Information and data for the initiation of the I.C. platform provided by: -the two macroprojects -the observatory of Mataro’s information society. -the Municipal Institute for Economic Promotion. No benchmarking of IC indicators in the first step. Benchmarking has to be done in the future with the most advanced cities in terms of information and telecommunications technologies and knowledge management.

16. © José M. Viedma Marti, 2003. i C SVDV 316 SVDV 316 SVDV 28 SVDV 36 SVDV 36 SVDV 34 SVDV 34 SVDV 524 Past Present Future IC 2 nd. Part Mataró General Intellectual Capital Model. IC Categories / Number of Indicators SV= Summary VersionTotal SV= 16 DV= Detail Versión Total DV=58

17. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró General Intellectual Capital Balance Sheet. i C

18. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró General Intellectual Capital Balance Sheet.

19. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró Specific Intellectual Capital Model.  Identification of the relevant microclusters.  The microclusters identified were the following: -Textile (knitwear) (23% of the working population) - Construction. - Retail trade. - Education and training.  Evaluation of the CSIC model factors and criteria through ad hoc questionnaires to experts and companies.  In the best world city microcluster, evaluation of the homologous factors and criteria using the same questionnaires.  Comparison of the corresponding results (Benchmarking).  Reliability indexes or accuracy level indexes.

20. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró Specific Intellectual Capital Balance Sheet.

21. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró Specific Intellectual Capital Balance Sheet.

22. © José M. Viedma Marti, 2003. i C 2 nd. Part Mataró Specific Intellectual Capital Balance Sheet.

23. © José M. Viedma Marti, 2003. i C In the past, the vision, objectives and goals of cities have been determined mainly by considering tangible assets as the main factors of a city’s prosperity. In the knowledge economy the role of intangible assets in wealth creation has become fundamental. As a result some local communities have initiated strategic plans to develop new information technology and collective knowledge. However these plans all lack coordination and continuity. More significantly, they lack an intangible assets framework that allows navigation from the present situation to the future vision of the city. Conclusions

24. © José M. Viedma Marti, 2003. i C To fill this gap the present paper has presented a model and a framework especially developed for measuring and managing the intellectual capital of cities (CICBS) City’s Intellectual Capital Model has two different approaches. The first one covers all economic activities of the city. The second one deals specifically with each relevant economic microcluster. Both approaches use benchmarking techniques. The paper also deals with the practical application of CICBS to the city of Mataró. In presenting this pioneering effort it is hoped that new productive research on managing intangibles in municipalities will be encouraged. Conclusions Thanks for listening