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Knowledge Economy (APICC Whitepaper #1)
1.
1
Practical Steps towards turning Hong Kong into a Knowledge Based Economy By Stephen Selby, Director, Intellectual Property Department, HKSAR Government and Convenor of the APEC Intellectual Property Rights Experts' Group Tuesday, May 13, 2008 The 2007 APEC Leaders' statement issued on 9th September 2007 included the following text: "[Leaders]… agreed to continue to strengthen protection and enforcement of intellectual property rights (IPR) in the region. We recognised that a strong knowledge based economy requires a comprehensive and balanced IPR system, as well as an environment that encourages creativity and innovation and provides the tools for successful management and utilisation of IPR. We also agreed to continued efforts by APEC economies to combat the sale of counterfeit and pirated goods at markets involved in this activity." What are the implications of the APEC “Self-initiated Innovation” and “Self- Statement? initiated IP Rights”. This high-level statement indicates that the APEC Leaders recognise the This leads to the question of what Hong importance of IP rights and of fostering a Kong can specifically do to encourage business climate in which they are creativity and innovation and provides respected and effectively exploited as two the tools for successful management and of the pre-requisites for performance in utilisation of IPR. the knowledge based economy. Has Hong Kong fully exploited its unique Hong Kong, both as a developing position in the China and APEC Contexts? knowledge city and as a bridge between Perhaps the key questions we should ask China and the western world, possesses are: advantages that can be leveraged to 1. Does Hong Kong have what it takes consolidate our position as one of the to become a true knowledge city? knowledge economy leaders in the region. 2. We talk about developing creative However, there are also certain gaps industries and a knowledge-based which need to be addressed. economy; but are we able to explain to the business community how that Closely related to the APEC Leaders’ can be achieved? Statement on IPR are the wishes express in 3. Have we properly appreciated the Mainland’s 11th Five Year Plan to create increased business risk associated Asia Pacific Intellectual Capital Centre White Paper #1 (August 2008) © Asia Pacific Intellectual Capital Centre 2008 All Rights Reserved
2.
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with developing creative, knowledge 1. Creating the best environment for based products, and are we prepared value creation and networking right to lead business through the basic inside individual enterprises rather than at steps that are vital to mitigating those the macro level. risks? 2. Assembling and demonstrating the 4. Should we help develop practices that tools for managing intellectual assets make full use of Hong Kong’s unique and IPR. advantages, including the rule of law 3. Creating awareness among business and its international networking people of the opportunities and risks capability that will have strong posed by the developing knowledge influence on economic transformation economy both in Hong Kong and in of Hong Kong and China? overseas markets, and issuing a “call to action”. The advantages which Hong Kong 4. Leveraging the know-how in possesses among others are a long managing intellectual capital established rule of law (including IP law (including IPR) that is available today dating back to 1873), a practical from the leading world practitioners. understanding of business from both a Chinese and a Western perspective, a Practical initiatives undertaken in Hong strong entrepreneurial spirit, a well Kong and mainland China developed modern transport system and a To build on its already advantaged state-of-the-art internet infrastructure. situation, Hong Kong needs to tap into the These attributes all encourage the worldwide network of activities in interplay of people with ideas and foster innovation and the mining of intellectual innovation. capital. This work has already started; but it must be deepened and accelerated. To support this position, Hong Kong has invested heavily in universities and the If Hong Kong is to become a leader in Hong Kong Science and Technology Park innovation, the fast track to achieving this (HKSTP) and other HKSAR Government goal is through espousing and promoting sponsored research centres. However this Intellectual Capital Management (ICM). may not be enough to allow Hong Kong to reach the forefront of the knowledge age What is ICM? because these initiatives do not filter Some individuals are born creative down to the day-to-day management geniuses; but most enterprises can level of the great majority of Hong Kong develop creative talent and innovation SMEs operating in Hong Kong and the through training. ICM is a set of tools, Mainland. which allows enterprises to tap into reservoirs of knowledge and expertise that Further issues need to be addressed before they already possess, but may not be Hong Kong can become a leader in the exploiting effectively. It also helps them to fields of: appreciate competitive pressures from Asia Pacific Intellectual Capital Centre White Paper #1 (August 2008) © Asia Pacific Intellectual Capital Centre 2008 All Rights Reserved
3.
3 outside economies and
identify their manufacturing and service sectors. needs to obtain improved knowledge and expertise (sometimes known as Even if the exercise does not immediately developing “social intelligence”.) identify any potential money-spinners for some small enterprises, the techniques for In outline, the process involves: identifying risks and developing an IP • Analyzing existing enterprise strategy help enterprises save money and knowledge, recording it as far as effort that result from dealing with IP possible and making it sharable within infringement later on. They will help the enterprise. This becomes the strengthen Hong Kong’s IP compliance enterprise’s ‘intellectual capital’; and develop robust supply-chain • Identifying possible sources of management, ensuring that our products revenue that could be extracted from and service continue to gain ready access existing intellectual capital and to world markets. developing marketing plans for them; and Developing the Intellectual Capital • Assessing risks involved in protecting Management Concept in Hong Kong the enterprise’s intellectual assets and There needs to be more focus in Hong using an effective intellectual property Kong on Intellectual Capital Management. strategy to minimize business risk. We need to enter into a deeper and broader dialogue with the other World IC Another View of Intellectual Capital TOWARDS INNOVATION Intellectual Knowledge & Innovation Intellectual Assets Know-How Property (Intellectual Capital) From the enterprise’s point of view, this is an extremely cost-effective way to start off Centres. on the road towards innovation and creativity. It can be applied to both the The development of this type of centre in Asia Pacific Intellectual Capital Centre White Paper #1 (August 2008) © Asia Pacific Intellectual Capital Centre 2008 All Rights Reserved
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4 Hong Kong is
essential in order to provide the tools for successful management and Individuals, business enterprises, utilization of Intellectual Capital and IPRs. government and non-government In today’s world, the way in which organization in Hong Kong and are knowledge is created and used is invited to lend endorsement and practical inextricably linked with an understanding level support for this initiative in the form of ICM and how intellectual capital is of: created and used. The technique 1. Working with the APICC, Intellectual developed in the USA and Europe in the Property Department, Scottish period 1990 – 2000 links ICM to the core Intellectual Assets Centre and other business processes and IP Strategies of similar centres in mainland China major multinational corporations. Recent and around the world in the developments in Intellectual Capital “Knowledge Economy” initiatives. Management extend this approach to This initiative could be widely include training, coaching and defined as value creation and value management of knowledge workers in extraction through: promoting Small and Medium Enterprises. innovation, technology development, technology transfer and provision of The creation of such a network of Intellectual Capital Management as facilitation centres throughout China is management level tools to already a work-in-progress. enterprises. 2. Providing the management focus, An agreement has been signed between physical space, administrative and the Scottish Intellectual Asset Centre (the other infrastructure support and first such center ever created) and the Asia focus to support the Intellectual Pacific Intellectual Capital Centre (APICC) Capital Management (ICM) initiatives in Hong Kong. within your own company or organization. The APICC will be affiliated to a number 3. Participating as industry partners to of Intellectual Capital Centres in mainland the training and education China and around the world. The programmes, research groups and Network would build on local Hong Kong workgroups to be initiated by the expertise, access and translate the pool of Intellectual Property Department and knowledge available across the world1 to APICC. meet the needs of Hong Kong enterprises operating in Hong Kong and mainland For more information, please contact: China. Asia-Pacific Intellectual Capital Centre Tel: +852 2503-1383 1 E.g. METI Protocol for IA Based Management, IA Centre Fax: +852 2503-3645 Scotland Diagnostic Tools, InHolland University Degree Website: http://www.apicc.asia Course in Sustainable Programme in Intellectual Capital e-mail: info@apicc.asia Education, etc. Asia Pacific Intellectual Capital Centre White Paper #1 (August 2008) © Asia Pacific Intellectual Capital Centre 2008 All Rights Reserved
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