Leveraging intellectual capital for future competitiveness in Finland

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Leveraging Intellectual Capital for

Future Competitiveness in Finland

Carol Yeh-Yun Lin

Visiting Aalto University

National Chengchi University, Taiwan

Nov. 10, 2011

(2)

Working Experience:

Carol Yeh-Yun Lin

Position

Duration

Institution

Distinguished

Professor

1999-present

Dept. of Business Administration, NCCU

Dean of Student

Affairs (NCCU)

August 2008 – July

2010

National Chengchi University (NCCU)

Guest professor

February 2008 – July

2008

Philips Program for Modern Chinese Economy

Faculty of Arts,

Leiden University, the Netherlands

Visiting professor

Aug. 2007 – Jan. 2008

Brigham Young University, Utah, USA

Director (NCCU)

Aug. 2004 – July 2006

Center of International Education and Exchange

Fulbright Scholar

Aug. 2002 – July 2003

Purdue University

at West Lafayette, Indiana, USA

Director (CNCCU)

2000-2002

Office of International Programs, CNCCU

Director (CNCCU)

2000-2002

IMBA Program,

College of Commerce, NCCU

Professor

1997-1999

Dept. of B.A/Institute of HRM, National Central University

Associate Professor

1992-1997

Dept. of B.A/Institute of HRM, National Central University

Teacher

1984-1986

Ming-Tao High School

Customer Service

Manager

1980-1984

Singer Sewing Machine

Company (Taichung, Taiwan)

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Outlines

•National Intellectual Indicators (NIC48)

•Top 10 Ranking Countries

•National Intellectual Capital in Finland

•Signs for Early Attention

•Successful Model of Nordic Countries

•Successful Model of Non-Nordic Countries

•Policy Implications

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Human Capital index

Market capital index

• Skilled labor*

• Corporate tax encouragement*

• Employee training*

• Cross border venture*

• Secondary education up enrollment

• Openness of culture*

• Pupil-teacher ratio

• Transparency of government policies*

• Public expenditure on education

• Image of your country*

• 15-64 years old population

• Capital availability*

• Qualified engineers*

• Trade to GDP ratio (exports + imports)

• Students PISA performance

• Current account balance %GDP

• Human Development Index

• Investment flows %GDP

• Gender equality

• Country credit rating

• Years of education

• Investment risk

• R&D researchers

• Globalization index

Process capital index

Renewal capital index

• Business competition environment*

• Business R&D spending

• Government efficiency*

• Basic research*

• Computer per capita + Mobile subscribers

• R&D spending/GDP

• Internet subscribers + Broadband subscribers

• R&D US$ per capita

• Convenience of establishing new firms + start up

days*

• IP right protection*

• Goods & services distribution efficiency*

• Utility Patents/ R&D expenditure

• Overall productivity

• Cooperation between corporations and university*

• Unemployment % + Youth unemployment %

• Scientific articles

• Consumer price inflation

• Patents per capita (USTPO+EPO)

• Health & environment

• Entrepreneurship*

• Corruption

• Development & application of technology*

• Freedom of speech

• Venture capital*

Expanded 48 Indicators in each type of capital for NIC48 Oct. 17, 2011

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Human capital

Market capital

Process capital Renewal capital Financial capital

Overall IC

Country

Score

Rankin

g

Score Ranking Score Ranking Score Ranking Score Ranking Score Ranking

Switzerland 8.279

10

8.030

2

8.614

4

7.360

1

9.755

5

42.038

1 Finland

8.731

2

7.771

7

8.645

3

7.188

3

9.594

17

41.930

2 Sweden

8.571

3

7.771

8

8.565

5

7.268

2

9.663

13

41.838

3 Denmark

8.571

4

7.805

6

8.834

1

6.494

6

9.671

12

41.374

4 USA

8.372

9

7.085

15

8.442

8

7.070

4

9.889

3

40.859

5 Singapore

7.825

18

8.511

1

8.243

13

6.027

8

9.913

2

40.519

6 Netherlands 8.059

15

7.927

4

8.458

7

5.809

13

9.733

6

39.986

7 Norway

8.394

7

7.546

10

8.516

6

5.512

16

9.992

1

39.961

8 Iceland

8.769

1

6.593

23

8.686

2

6.139

7

9.694

10

39.882

9 Canada

8.465

5

7.452

11

8.310

11

5.882

10

9.713

8

39.822

10

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National Intellectual Capital and GDP per capita (ppp)

- Top 10 Countries

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6,8 7 7,2 7,4 7,6 7,8 8 8,2 8,4 8,6 Canada Finland Netherlands Norway Singapore Switzerland

Canada Finland Netherlands Norway Singapore Switzerland

Human Capital 8,02 8,51 7,49 7,95 7,41 7,96

Human Capital - Countries with significant difference from

Finland

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0 1 2 3 4 5 6 7 8 9 Finland

Iceland Singapore

Finland Iceland Singapore

Market Capital 6,88 5,7 8,47

Market Capital - Countries with significant difference from

Finland

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0 1 2 3 4 5 6 7 8 Canada Denmark Finland Iceland Netherlands Norway Singapore Switzerland

Canada Denmark Finland Iceland Netherlands Norway Singapore Switzerland

Renewal Capital 5,35 6,12 6,88 5,7 5,31 5,06 5,4 7,46

Renewal Capital - Countries with significant difference from

Finland

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-3 -2 -1 0 1 2 3 Human Capital Qualified engineers PISA performance R&D researchers Market Capital Crossborder venture Policy transparency Capital availability Trade to GDP ratio Investment flows

Finland's score vs. top 10 countries' mean score with difference over .50

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-1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 Process Capital

Fair business environment Government efficiency Computer & Mobile phone Unemployment rate Health %GDP & CO2 emission Freedom of speech Renewal Capital Business R&D R&D of GD) R&D US$ per capita Cooperation university & Co. Scientific articles Patents

Finland's score vs. top 10 countries' mean score with difference over .50

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-10 -5 0 5 10 15 20 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % G D P

Investment outflows

Finland Denmark France Germany Singapore Sweden Switzerland United Kingdom

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-10 -5 0 5 10 15 20 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % G D P

Investment inflows

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0 50 100 150 200 250 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % G D P

Trade to GDP

Finland Denmark France Germany Sweden Switzerland United Kingdom Singapore

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0 2 4 6 8 10 12 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 %

Health expenditure % GDP

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0 100 200 300 400 500 600 700 800 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 m e tr ic to n s

CO2 emission intensity - metric tons per one million US$ GDP

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0 2 4 6 8 10 12 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 %

Unemployment rate

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0 5 10 15 20 25 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 %

Youth unemployment rate - under the age of 25

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Successful Model –5 Nordic countries

(regression analysis results)

Main effect

Bended arrow: Interaction effect

“Year” is a very strong predictor of GDP.

“Country” is a significant predictor of GDP.

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Successful Model –

Canada, Netherlands, Singapore, Switzerland, USA

(top 10 non-Nordic countries)

Main effect

Bended arrow: Interaction effect

Red circle: Four capitals together

produce the most powerful effect.

“Year” is a very strong predictor of GDP.

“Country” is a very strong predictor of GDP.

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Policy Implications

Finland is outstanding in National Intellectual Capital (#2)

Higher intellectual capital did not result in matching

GDP growth in Finland, although slow growth may be a

choice and a different type of development trajectory

High unemployment (especially youth unemployment) rate

is a great concern

High CO2 emission intensity jeopardizes the quality of life

In Nordic countries, human capital and renewal capital

contribute more to GDP than market/process capital

However, the GDP predicting power of human capital and

renewal capital are enhanced through the interactions of

market capital and process capital

Therefore, more integration of the four capitals should be

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Thank you!