City of Melbourne knowledge sector study

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City of Melbourne knowledge
sector study


Final Report


Prepared for
the City of Melbourne

February

201
3





Reliance and Disclaimer

The professional analysis and advice in this report has been prepared by ACIL Tasman for the exclusive use of the
party or parties to whom
it

is addressed (the addressee) and for the purposes specified in it
.
This report is supplied in
good faith and refle
cts the knowledge, expertise and experience of the consultants
involved
.

The report must not be
published, quoted or disseminated to any other party without ACIL Tasman

s prior written consent
.

ACIL Tasman
accepts no responsibility whatsoever for any loss
occasioned by any person acting or refraining from action as a
result of reliance on the report, other than the addressee.

In conducting the analysis in this report ACIL Tasman has endeavoured to use what it considers is the best
information available at t
he date of publication, including information supplied by the addressee
.

Unless stated
otherwise, ACIL Tasman does not warrant the accuracy of any forecast or prediction in the report
.

Although ACIL
Tasman exercises reasonable care when making forecasts or

predictions, factors in the process, such as future market
behaviour, are inherently uncertain and cannot be forecast or predicted reliably.

ACIL Tasman shall not be liable in respect of any claim arising out of the failure of a client investment to perfo
rm to
the advantage of the client or to the advantage of the client to the degree suggested

or assumed in any advice or
forecast given by ACIL Tasman.


ACIL Tasman Pty Ltd

ABN 68 102 652
148

Internet
www.acilta
sman.com.au


Melbourne (Head Office)

Level 4, 114 William Street

Melbourne VIC 3000

Telephone

(+61 3) 960
4
44
00

Facsimile

(+61 3)
9604 4455

Email

melbourne@aciltasman.com.au


Brisbane

Level 15, 127 Cr
eek Street

Brisbane QLD 4000

GPO Box 32

Brisbane QLD 4001

Telephone

(+61 7) 3009 8700

Facsimile

(+61 7) 3009 8799

Email

brisbane@aciltasman.com.au


Canberra

Level
2
, 33 Ainslie Place

Canberra City

ACT 2600

GPO Box 1322

Canberra ACT 2601

Telephone

(+61 2) 6103 8200

Facsimile

(+61 2) 6103 8233

Email

canberra@aciltasman.com.au


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Centa Building C2, 118 Railway Street

West Perth WA 6005

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(+61 8) 9449 9600

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(+61 8) 9322 3955

Email

perth@aciltasman.com.au


Sydney

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201 Sussex Street

Sydney NSW 2000

GPO Box 4670

Sydney NSW 2001

Telephone

(+6
1 2)
9389 7842

Facsimile

(+61 2) 8080 8142

Email

sydney@aciltasman.com.au



For information on this
report

Please contact:

Dr Yuan Chou

Telephone

(
03
)
9604 4408

Mobile

0402 128 354

Email

y.chou@aciltasman.com.au



Contributing team members


Denise Ironfield


Tammy Read


Dale Higgins




City of Melbourne knowledge sector study


ii

Contents

Executive summary

vii

1

Introduction

1

1.1

Background and context

1

1.2

Study objectives

2

1.3

Study approach

3

1.3.1

Desk
top research

3

1.3.2

Knowledge sector survey

3

1.3.3

Stakeholder consultation

4

1.4

Report structure

5

2

Knowledge cities and the knowledge sector

6

2.1

What is knowledge?

6

2.2

What is a knowledge city?

6

2.3

Melbourne as a knowledge city

8

2.4

What is the knowledge sector?

11

2.5

Defining the City of Melbourne’s knowledge sector

12

2.5.1

Existing definitions

12

2.
5.2

Definition used in this study

14

3

Sectoral composition, knowledge activities and outputs

18

3.1

Composition of the knowledge sector

18

3.2

Knowledge activities

20

3.3

Knowledge outputs

21

3.4

The users of knowledge outputs

23

4

Economic contribution of the knowledge sector

26

4.1

Direct economic contribution to Gross Regional Product

26

4.1.1

Industry contributions

27

4.2

Indirect contribution

30

4.2.1

Indirect contribution to gross product

30

4.2.2

Indirect contribution to Victorian employment

31

5

Knowledge sector assets and events

33

5.1

Knowledge sector assets

33

5.1.1

Types of knowledge sector assets

34

5.1.2

Accessibility of knowledge sector assets

37

5.1.3

Role of the City of Melbourne in enhancing knowledge assets?

38

5.2

Knowledge sector events

41

City of Melbourne knowledge sector study


iii

5.2.1

Knowledge sector organisation’s level of involvement in
events

42

5.2.2

Significant knowledge sector events to showcase the City

43

5.2.3

Other 'new' knowledge events

44

5.2.4

Role of the City of Melbourne in supporting knowledg
e
events

46

6

Knowledge sources and collaboration

51

6.1

Key sources of knowledge

51

6.2

Collaboration

52

6.2.1

Collaboration partners

52

6.2.2

Role of City of Melbourne in facilitating collaboration

54

7

Opportunities and challenges for knowledge sector activities

57

7.1

Opportunities

57

7.2

Challe
nges

58

8

Learnings from the literature and other knowledge cities

61

8.1

Frameworks from the knowledge cities literature

61

8.1.1

Knowledge
-
Based Urban Development

61

8.1.2

Role of local government in the Triple Helix Model

63

8.2

Policy
-
making in other knowledge cities


a recent historical
perspective

65

8.2.1

Common policy themes

65

8.
2.2

Specific examples from other knowledge cities

67

9

Role of the City of Melbourne

71

9.1

Application of the knowledge city development frameworks

71

9.2

Defining an economic vision and blueprint for the City of
Melbourne in the digital knowledge age

71

9.3

Engaging the knowledge sector through a Reference Network

74

9.4

Enhancing the stock of knowled
ge sector assets

76

9.5

Supporting knowledge sector events

77

9.6

Facilitating collaboration and networking

79

9.7

Educating
stakeholders and engaging with them in creative ways

81

9.8

Encouraging the creation of spaces that enable serendipitous
encounter
s and innovation

83

9.9

Attracting talent

85

9.10

Monitoring development of the knowledge sector

87

References

88

Appendix A

Knowledge sector survey questionnaire

A
-
1

Appendix B

Knowledge sector industry contributions

B
-
1

City of Melbourne knowledge sector study


iv

Appendix C

Knowledge

sector survey
-

background
information

C
-
1

Appendix D

City of Melbourne’s significant knowledge assets

D
-
1

Appendix E

City of Melbourne knowledge events

E
-
1


List
of figures

Figure ES 1

City of Melbourne workforce 2010

ix

Figure ES 2

Knowledge sector contribution to the City of Melbourne’s GRP
($A2008
-
09)

x

Figure ES 3

Knowledge activities by the knowledge sect
or’s university trained
workforce

xii

Figure ES 4

City of Melbourne knowledge sector assets (per cent of
respondents)

xiii

Figure ES 5

Is there a role for the City of Melbourne in enhancing the city’s
knowledge assets? (per cent of respondents)

xiii

Figure ES 6

Businesses/organisations involved in knowledge
-
related events
(per cent of respondents by knowledge category)

xiv

Figure ES 7

Respondents views on knowledge related events and future
support for events

xvi

Figure ES 8

Collaboration partners (per cent of respondents)

xvii

Figure ES 9

Is there a role for the City of Melbourne in facilitating
collaboration (per cent of respondents)

xviii

Figure ES 10


Are there opportunities or impediments to future growth?

xix


Figure
1

Components of the knowledge sector

15

Figure 2

Composition of City of Melbourne knowledge sector by number of
locations

18

Figure 3

Employment in City of Melbourne knowledge sector by
component

19

Figure 4

Composition of City of Melbourne knowledge sector workforce

20

Figure 5

Knowledge activities undertaken by the knowledge sector’s
university educated employees

21

Figure 6

Types of knowledge outputs produced by City of Melbourne
businesses/organisations

22

Figure 7

Key users of the
knowledge outputs of City of Melbourne
businesses/organisations (per cent of respondents)

24

Figure 8

Key users of the knowledge
outputs of the city of Melbourne’s core
and intermediate businesses/organisations (per cent of
respondents)

25

Figure 9

Knowledge

sector contribution to the City of Melbourne’s GRP

27

Figure 10

Explaining input
-
output multipliers


Scientific research
,
techn
ical
and computer services industry

32

Figure 11

Asset categories held by Knowledge sector survey respondents (per
cent of
respondents)

37

Figure 12

City of Melbourne knowledge sector assets held by survey
respondents

38

Figure 13

Is there a role for the City of Melbourne in enhancing the city’s
knowledge assets? (per cent of respondents)

38

Figure 14

Level of participation in knowledge events

42

City of Melbo
urne knowledge sector study


v

Figure 15

Proportion of businesses/organisations involved in knowledge
-
related events (per cent of respondents by knowledge category)

43

Figure 16

Respondent views on knowledge related events and future support
for events

44

Figure 17

Is there a role for the City of Melbourne in facilitating events? (per
cent of respondents)

47

Figure 18

Key sources of knowledge (per cent of respondents)

52

Figure 19

Knowledge sector collaboration (per cent of respondents)

53

Figure 20

Collaboration in knowledge
-
related activities (per cent of
collaborating respondents)

53

Figure 21

Core and intermediate respondents’ collaborators (per cent of
collaborating respondents)

54

Figure 22

Is there a role for the City of Melbourne in facilitating
collaboration and networking? (per cent of respondents)

55

Figure 23

Potential for future growth in your organisation's knowledge
related activities? (per cent of respondents)

58

Figure 24

Impediments to future growth in knowledge related activities? (per
cent of respondents)

59

Figure 25

Knowledge
-
based urban development

62

Figure 26

Roles of local government in a knowledge city

64

Figure 27

Knowledge
-
related roles of the City of Melbourne

65


List of tables

Table

ES 1

Melbourne’s knowledge sector direct and indirect contribution to
gross product ($2008
-
09)

xi


Table 1

International knowledge industry definitions

13

Table 2

Knowledge sector core and intermediate industry categories by
ANZSIC

17

Table 3

Proportion of knowledge sector respondent’s employees with a
degree or higher qualification (number of respondents)

20

Table 4

Number of selected knowledge product outputs produced by
survey respondents in 2011
-
12

23

Table 5

2010 FTE employment by the top five intermediate component
knowledge sector employing subdivisions

29

Table 6

2010 FTE employment by top five core component knowledge
sector subdivisions

29

Table 7

Top five intermediate
component contributors to 2010 GRP (
$2008
-
09 million)

29

T
able 8

Top five core component contributors to 2010 GRP (
$2008
-
09
million)

29

Table 9

Melbourne’s knowledge sector direct and indirect contribution to
gross product ($2008
-
09)

31

Table 10

Full time equivalent jobs generated by City of Melbourne’s
knowledge sector in 2010

31

Table 11

The City of Melbourne’s

world
-
class


assets

34

Table B1

2010 FTE employment by Intermediate component knowledge
sector industry subdivisions

B
-
1

Table B2

2010 FTE employment by core component knowledge sector
industry subdivisions

B
-
2

City of Melbourne knowledge sector study


vi

Table B3

Intermediate component knowledge sector industry subdivisions
contributors to 2010 GRP ($2008
-
09 million)

B
-
2

Table B4

Core component contributors to 2010 GRP ($2008
-
09 million)

B
-
3

Table D1

The City of Melbourne’s Other significant knowledge assets

D
-
1

Table E1

City of Melbourne
knowledge events list

E
-
1

City of Melbourne knowledge sector study

Executive summary

vii

Executive summary

The City of Melbourne
c
ommissioned
ACIL Tasman to undertake a study to
identify the composition of the city

s knowledge sector in terms of its
organisations and infrastructure, and
to
determine the value of this sector to
the city

s economy. This report presents the
study

s
outcomes
,

findings
and
recommendations.

When considering this report it should be borne
in mind that
this current study
could only provide a high
-
level snapshot of the city

s knowledge sector. In the
future there could be considerable benefit in monitoring
development of the
evolving knowledge sector
,

including the success of the the
City of
Melbourne

s
knowledge sector
strategy
. There may also be benefit in
undertaking more indepth research

of particular aspects of the sector
.


Background to this study

Melbourne is
generally
recognised as a
s
porting
c
ity and
a c
ultural
c
ity, but
the
City of Melbourne is concerned that
it is not as widely known for its reputation
as a
k
nowledge
c
ity.

Nevertheless, i
n 2010 the annual
Most Admired Knowledge
City Award

was
bestowed upon

Melbourne during the Knowledge Cities World
Summit
;

an annual eve
nt organised by
the World Capital Institute and

Teleos
.

At the same time,

Melbourne

s reputation as an innovative city is increasing
,

with the 2thinknow group ranking Melbourne 17
th

in the World as
an

innovative city
in 2011
(up from its 2008
-
09 ranking of

25).

Melbourne
possesses
much of
the key infrastructure and organisations
that

characterise a
k
nowledge
c
ity
, with

recognised strengths in fields such as
a
dvanced
m
anufacturing,
b
iotechnology,
c
reative
i
ndustries

(particularly
design)
,
e
vent
m
anagement,
f
inancial
s
ervices,
h
ealthcare,
higher education,
information communication
,

and technology and sustainability
.


The City of Melbourne believes that the city

s economy and society will benefit
specifically from both promoting and strengthening the shared
interests of its
knowledge sector. The City of Melbourne has therefore made the promotion
of the city

s knowledge sector as
one of 10 Key Strategic Activities

(KSAs) for
2012
-
13. It has committed to supporting the growth of its knowledge sector by
implemen
ting
a multifaceted project that involves undertaking

research

and
consult
ation to:

identify the opportunities for the sector
;

determine the
City of
Melbourne

s role in the sector

s future
;

and promote its knowledge sector
locally, nat
ion
ally and internati
onally. This study forms a key component of the
project by being the foundation for the
City of Melbourne

s development of a
knowledge strategy.

City of Melbourne knowledge sector study

Executive summary

viii

Definition of the knowledge sector

For the purposes of this study, the term

knowledge sector


describes an
evolving component of the city
,

involving the production, circulation and use
of information with actual or potential economic, social and env
ironmental
benefits. We have defined the City of Melbourne

s knowledge sector as
consisting of three components:



the core (the generators, creators

and transferrers of knowledge);



the intermediate component (those intensive users of knowledge to enable
pr
oduction of their outputs)
;
and



the periphery (those who use knowledge to a lesser extent).

As virtually every industry uses knowledge to some extent
,

this definition could
be considered to cover most of the economy. By necessity this report has
therefore largely focused on the core and intermediate components of the
knowledge sector.

Economic contribution of the knowledge sector

The City of Melbourne

s Census of Land Use and Employment (CLUE)
indicates there were
15,947
locations where
bu
sinesses and organisations
operated
in the City of Melbourne

in 2010

(the latest available data)
. Using

ACIL Tasman

s definition of the
knowledge sector
1,115 (
or
7.0

per cent
)
of
these locations
are
undertaking activities
in the
'
core
'

of the sector while 4,861
(
or
30.5

per cent
)
of the 15,947 locations
are
working
in the
'
int
ermediate
'

part
of the knowledge sector.

Employment

Of the 428,588

persons
working
in businesses
/
organisations
located
in the
City of Melbourne

in 2010, 62,287 (just under 15 per cent) are employees or
contractors of

businesses
/
organisations
operating
in the
'
core
'

of the sector
;
w
hile
221,851 (ju
st under 52 per cent) are employees or contractors of

businesses
/
organisations
operating
in the
'
intermediate
'

part of the sector (see

Figure ES
1
).


The
se

employment

figures include full
-
time, part
-
time, casual and contracted
workers.

Intermediate category knowledge sector businesses and organisations
are the largest employers of full
-
time employees. However, the proportion of
contractors is particularly high in the k
nowledge sector core. The core also has
the lowest proportion of part
-
time employees.

The knowledge sector is
made up of businesses and
organisation
s

operating in

the core, intermediate or the
periphery

The core and intermedia
te
components of the
knowledge sector constitute
nearly two
-
fifths of the
locations where businesses
and organisations are
operating in the city

Businesses/organisations in
the core and intermediate
categories account for
around 67 per cent of the
city

s w
orkforce

City of Melbourne knowledge sector study

Executive summary

ix

Full
-
time equivalent (FTE) employment is another means of considering a
sector

s contribution to employment.
The Australian Bureau

of Statistics
estimates that in 2010 part
-
time workers on average worked 16 hours per
week, while full
-
time workers worked an

average 39.7 hours per week. These
estimates have been used to calculate the direct contribution of FTE
employees (contractors are excluded to prevent double counting). ACIL
Tasman estimates that
in 2010
the knowledge sec
tor created approximately
217,61
0
FTE jobs. Of these jobs the core created around 39,280 FTE jobs and
the intermediate component of the se
ctor created 178,330 FTE jobs.

Direct economic contribution

The knowledge sector is a major contributor to the City of Melbourne

s Gross
Regional Product (GRP). ACIL Tasman estimates that in 2010 organisations in
the core and intermediate categories of the knowledge sector made up just over

half of the city

s estimated GRP
of $53,298 million ($2008
-
09).
Together the
organisations in these two knowledge sector categories accounted for just over
$28,000 million ($2008
-
09) of the city

s GRP in 2010 (see
Figure ES
2
).

The intermediate sector makes the largest contribution to GRP, with an
estimated contribution of $23,577 million ($2008
-
09) in 2010. Assumin
g
employment by industry remained

in similar proportions in 2011 it can be
estimated that the knowledge sector contributed $25,137 million ($2008
-
09) of
the $56,825 million of GRP ($2008
-
09
) that the National Institute of
Economic and Industry Research (NIEIR)
has
previously estimated to
have
been generated in

2011.
1




1


The NIEIR GRP estimates for 2010 and 2011 are reported on the City of Melbourne’s
website at
http://economy.id.com.au/default.aspx?id=128&pg=12210

Figure ES
1

City of Melbourne workforce 2010


Workforce by knowledge sector category Employment status


S
ource:

ACIL Tasman estimates using CLUE data

The knowledge sector

s core
and intermediate
components generated just
over 217,600 FTE jobs

The knowledge sector

s core
and intermediate categories
contribute around 50 per
cent of the

City of
Melbourne

s GRP

221,851
62,287
144,450
Intermediate
Core
Periphery or other
59%
75%
56%
10%
13%
16%
13%
5%
24%
18%
7%
4%
0%
20%
40%
60%
80%
100%
Core
Intermediate
Periphery or other
Contractor
Casual
Part-time
Full-time
City of Melbourne knowledge sector study

Executive summary

x

Figure ES
2

Knowledge sector contribution to the City of Melbourne

s GRP
($A2008
-
09)


S
ource:

ACIL Tasman estimates using CLUE and NIEIR data.

In terms of FTE employment, the
Professional, Scientific and Technical
Services

2
digit ANZSIC subdivision is the largest employer in the knowledge
sector. In 2010 the subdivision employed 49,575 full
-
time equ
ivalent (FTE)
employees. The Public Administration industry subdivision (comprising
federal, state and local governments, Justice and foreign government
representation) was the second largest employer with around 26,300 FTE
employees in 2010. The Finance i
ndustry subdivision was the third largest
knowledge sector employer, with around 25, 340 FTE employees.

On the other hand, the Finance industry subdivision made the largest
individual
contribution to the city

s GRP, with value added (the building block
of GRP) estimated to be $5,275 million ($2008
-
09). Note that this contribution
to GRP is larger than the entire contribution from those businesses and
organisations operating in
the
core of the knowledge sector.

Indirect contributions to employment and GRP

The knowledge sector

s contribution to GRP reported above is sometimes
ch
aracterised by economists as a

sector

s

direct


contribution. However, all
industries (including those in
the knowledge sector) also

indirectly


contribute
to the city

s
, Victoria

s and even Australia

s gross product. These indirect
contributions can be estimated with reference to input
-
output multipliers that
4,431
4,724
23,577
25,137
25,290
26,964
-
10,000
20,000
30,000
40,000
50,000
60,000
2010
2011
Periphery or
other
Intermediate
Core
The
Professional, Scientific
and Technical Services

subdivision is the sector

s
largest employer

The Finance industry is the
largest contributor to
knowledge sector GRP

City of Melbourne knowledge sector study

Executive summary

xi

have been calculated using ACIL Tasman

s in
-
house

input
-
output table for the
Victorian economy.

As shown in
Table ES 1
this indirect contribution to the state of Victoria

s
Gross State Product is considerable and in 2010 was in the order of $16,000
million ($2008
-
09).

Knowledge sector activities, assets and events

As
Melbourne
Knowledge Week 2012 took place during the course of the
study, ACIL Tasman consultants were able
to attend a number of key events.
After these events ACIL Tasman consulted with a number of contributors at
Knowledge Week events and/or attendees at the laun
ch of the Knowledge
Melbourne

c
ampaign
.

In addition to desktop research and consultation, ACIL Tas
man conducted

a
knowledge sector
survey of

businesses and organisations

operating in the City
of Melbourne. The survey opened on 8 October 2012 and closed on
1
December 2012
, which coincided with the end of Knowledge Week. By the
time the survey closed on 1 December 2012 ACIL Tasman had received
1
71
responses. Of these responses, 159 considered that their organisation was part
of the knowledge sector, with the majority of the
se responses identifying as
operating in the core and intermediate components of the knowledge sector.

The information gained from the survey and our consultations ha
s

been critical
in developing a richer understanding of the knowledge sector and how the C
ity
of Melbourne can implement strategies to e
nhance the sector in the future.

Knowledge activities

Survey responses support the view that a high proportion of knowledge
workers have a university qualification. For example, of the 105 respondents
operating in the core, approximately three
-
quarters indicated that
at least
60
per cent of their employees ha
d a university qualification.

The sector

s
university educated employees

engage in a multiplicity of
knowledge
-
related activities.
According to the knowledge sector survey
Table ES
1

Melbourne

s knowledge sector direct and indirect contribution to gross product ($2008
-
09)


C
ity of Melbourne

Victoria as a whole


Direct

First round

Industrial support

Production induced
total i
ndirect

effect

Core

4,4
31

1,130

915

2,046

Intermediate

23,57
7


7,686

6,333

14,019

Totals

28,0
08


8,817

7,249

16,065

Data source
:
ACIL Tasman estimates.

A high proportion of the
knowledge sector workforce
is university educated and
engages in a multiplicity of
knowledge
-
related activities

City of Melbourne knowl
edge sector study

Executive summary

xii

responses
,
26

per cent of employees with university degrees in the City of
Melbourne

create or generate knowledge, 21 per cent transfer knowledge to
others through teaching, while 48 per cent use knowledge as a key enabler in
their work (see
Figure ES
3
).

Figure ES
3

Knowledge activities by the knowledge sector

s university
trained workforce


S
ource:

ACIL Tasman Knowledge sector survey

Knowledge sector assets

The City of Melbourne is the repository of a large number and variety of
physical knowledge assets. Knowledge assets
,

which could be considered as

World
-
class


located in the City of Melbourne
,

incl
ude the Walter and Eliza
Hall Institute, the University of Melbourne, the Royal Melbourne Hospital,
Melbourne Museum, the State Library of Victoria, the Victorian Arts Centre,
and the Melbourne Convention and Exhibition Centre. These physical
knowledge sec
tor assets complement the human capital that is embodied in the
knowledge sector workforce.

Businesses and organisations in the City of Melbourne

s knowledge sector

own
,

or have access to
,

a variety of knowledge assets. The majority of these
assets are for

their
own or
their
member
s’

use

(see
Figure ES
4
)
.

Creating or generating
knowledge
Transferring knowledge to
others
Using knowledge as a key
enabler
Using knowledge to minor
extent/or not using
The knowledge sector

s
physical assets complement
the sector

s
human capital
that is embodied in the
sector

s workforce

City of Melbourne knowledge sector study

Executive summary

xiii

Figure ES
4

City of Melbourne knowledge sector assets (per cent of
respondents)


S
ource:

ACIL Tasman Knowledge sector survey

T
he majority (
67

per cent) of survey respondents considered that the
City of
Melbourne
could play a role in enhancing the
knowledge sector

s assets

(see
Figure ES
5
)
.
Those

respondents
who
considered

Council
could play a role in
enhancing the city

s knowledge sector assets were requested to suggest roles
that the City of Melbourne could play in enhancing the stock of knowledge
sector assets. The roles that were most frequently
nominated
were:
promoter/facilitator/broker, sponsor/supporter, as well as the provider of an
assets directory.

Figure ES
5

Is there a role for the City of Melbourne in enhancin
g the city

s
knowledge assets? (per cent of respondents)


S
ource:

ACIL Tasman Knowledge sector survey

A knowledge assets directory has the potential to advertise to the city and the
world the quality and breadth of the city’s knowledge assets. A directory could
0%
20%
40%
60%
80%
Laboratories
Workshops or studios
Training facilities
Conference spaces
Libraries
Other collections
Research hardware or equipment
Specialised software
For private or member use
Open to others in the industry
Open to public
0%
20%
40%
60%
80%
100%
All
Inter
Core
Yes
No
City of Melbourne knowledge sector study

Execu
tive summary

xiv

also increase the
utilisation of these
assets

by improving
the awareness of
business
es

and organ
isation
s

of
the
assets
that
are available in the municipality.


Key Finding
Knowledge assets director
y


By mainting a knowledge assets directory the
City of Melbourne

could play a role supporting and promoting the city

s
knowledge sector assets.


Knowledge events

Melbourne

plays
host

to a very large number of knowledge
-
related events of
great diversity throughout the year, ranging from academic and industry
conferences such

the Australian Biotechnology
Conference 2012
,

to arts and
lifestyle
-
oriented events such as the Melbourne Festival and the Melbourne
Writers Festival.

The list of knowledge events identified in the events directory
(
developed as part of this study
)

highlights the wide range of type
s

o
f events
held in the city.

The survey results indicate that the businesses and organisations operating in
the core of the knowledge sector have a much higher propensity to be involved
in knowledge
-
related events (see

Figure ES
6
).

Figure ES
6

Bu
sinesses/organisations involved in k
nowledge
-
related events
(per cent of respondents by knowledge category)


S
ource:

ACIL Tasman Knowledge sector
survey
.

Respondents
who were
identified as operating in the core and intermediate
categories were also much more likely to indicate their people participated in
,

or attend
ed,

knowledge
-
related events
,

than respondents
who
identified as
0%
20%
40%
60%
80%
100%
Core
Intermediate
Periphery
Participate in / attend
knowledge-related
events
Sponsor / partner /
promote knowledge-
related events
Organise / manage /
deliver / run
knowledge-related
events
The city hosts many
knowledge related events

City of Melbourne knowledge sector study

Executive summary

xv

operating in the
periphery (though the small number of responses from
respondents in the periphery could distort this finding).

While many survey respondents nominated important knowledge sector
events, the majority considered that there are currently no existing
knowledge
-
related events that adequately showcased the City of Melbourne

s knowledge
sector (see
Figure ES
7
).

This result is somewhat surprising given that the City
of Melbourne has recently hosted its
third
Knowledge Week.

Unfortunately,
the vast majority of survey responses were received before
Knowledge Week 2012

commenced.
Thus
,

respondents may have answered
this question
with the 2011 Knowledge Week in mind
. It i
s possible that survey
respondents

would have been more positive about the city having a showcase
knowledge event
had the survey been conducted after

Knowledge Week 2012
,
which featured more than double the number of events presented
during

Knowledge Week
2011
.

Melbourne Knowledge Week aims to provide an umbrella for the delivery of
self
-
managed events showcasing the strengths and diversity of Melbourne’s
knowledge
sector.

In 2012 Knowledge Week featured more than 40 events that
represented a wide spectrum
of the knowledge sector.

ACIL Tasman
was provided with the results of
a survey of
30
Knowledge
Week 2012 event organisers
,

conducted

after the event
.

These survey results
indicate

that all 30 of these organisers considered that the Week had been
either
moderately
effective (40 per cent) or very effective (60 per cent) in
showcasing the strengths and diversity of Melbourne’s knowledge
sector.

(Please note that event organisers were not given the option in the survey to
nominate the week had been effective.)


Key Finding
Knowledge
Week

Knowledge Week 2012 was an important means of showcasing
Melbourne’s knowledge sector. The City of Melbourne’s
involvment in Knowledge Week as a
promoter, facilitator,
sponsor and facility provider enriches the city’s knowledge
sector.


Despite
the majority of
knowledge sector survey
respon
dents considering that
there were

no knowledge
-
related events that adequately showcased the City of
Melbourne, l
ess than half of the survey
respondents considered that a new
knowledge sector event should take place in the city. On the other hand, the
majority of survey respondents considered that there was a role for the
City of
Melbourne

in supporting knowledge sector events (see
Figure ES
7
).

Knowledge Week 2012 event
organisers consider that the
event showcased the
strengths and diversity of the
knowledge sector.

Respondents views

on the
need for new events to
showcase the sector were
mixed

City of Melbourne knowledge sector study

Executive summary

xvi

Those respondents who believed that
a new knowledge sector event should
take place in the city

were asked to suggest a suitable type of event.
T
hose
respondents
who
volunteered a suggestion for a new knowledge sector event
came up with a broad spectrum of ideas.
After reviewing the Knowledge Week
2012 program
,

it seems clear that many of the types of events suggested
by
survey respondents
to help showcase the knowledg
e sector were
similar to
those
covered by the program.

Figure ES
7

Respondents views on knowledge related events and future
support
for events


S
ource:

ACIL Tasman Knowledge sector survey
.


Key Finding
Knowledge events
directory


Melbourne has many knowled
ge events, including Knowledge
W
eek. Maintaing a directory of knowledge events could be a
means of supporting and promoting these events as well as
showcasing the brea
d
th of the city

s knowledge sector.


Collaborati
on

The survey responses also indicate that a substantial proportion of knowledge
sector businesses/organisations in Melbourne engage in collaborations with a
ra
nge of organisations in undertaking knowledge
-
related activities. According
to the survey, just under
80

per cent of
businesses/organisations in the
0%
20%
40%
60%
80%
100%
Is there are role for the CoM in
supporting knowledge events
Are there any new events that
should take place in Melbourne
Is there an existing event which
showcases Melbourne's
knowledge sector
Yes
No
A substantial proportion of
knowledge sector
businesses/organisations
engage in collaborations

City of Melbourne knowledge sector study

Executive summary

xvii

knowledge sector collaborate with others (see
Figure ES
8
). Collaboration with
others located in the City of Melbourne is important for many respondents.

Figure ES
8

Collaboration partners (per cent of respondents)


S
ource:

ACIL Tasman
Knowledge sector survey

Just over 50 per cent of knowledge sector survey respondents considered that
the City of Melbourne could play a role in facilitating collaboration and
networking
(see
Figure ES
9
)
.
This proportion was greater for respondents
who
identified as being
in the core of the sector
,

compared with those
identifying as being
in the intermediate com
ponent of the sector
.

However, a

significant number of survey respondents did not respond to this question and
were perhaps
un
sure if the
City of Melbourne

could be of assistance.

On the other hand, it is of interest to note that 70 per cent of survey
resp
ondents indicated that they would be happy for the City of Melbourne to
contact their organisation to become a member of any future knowledge sector
network. This response suggests that a majority of survey respondents are in
favour of greater networking a
nd that the City of Melbourne has a role to play.

Stakeholders had a range of views on the role Council could play in facilitating
or enhancing the sector’s collaboration and networking. Potential roles
suggested by survey respondents covered the Council
being a:



facilitator



sponsor



promoter



provider of information.


79%
86%
70%
29%
0%
50%
100%
All Knowledge sector respondents
(159)
Core (105)
Intermediate (47)
Periphery (7)
Facilitating collaboration

A
role for City of Melbourne?

City of Melbourne knowledge sector study

Executive summary

xviii

Figure ES
9

Is there a role for the City of Melbourne in facilitating
collaboration (per cent of respondents)


S
ource:

ACIL Tasman Knowledge sector survey
.

Our consultations with a number of
key k
nowledge
stakeholders
also
supported the view that
C
ouncil has a role to play in
supporting and enhancing
collaboration and networking. For example it was suggested that t
he City of
Melbourne
could be an enabler of (
and catalyst for) increased collaboration
between organisations in the knowledge sector
, including that of convening
groups comprising universities, galleries, schools, the Victorian Department of
Education and Early Childhood Development
,

and other partne
rs
,

to create
roundtables that identify opport
unities for collaboration. Such

collaboration
proposals (involving the City of Melbourne in the key role of facilitator) could
form part of the considerations of the proposed Knowle
dge Melbourne
reference netwo
rk (see recommendation 1).


Key Finding
Promoting collaboration


Many knowledge sector stakeholders see a need for
collaboration and networking and the
City of Melbourne

coul
d
potentially play an important

role

in facilitating and promoting
knowledge sector collaboration and networking.


F
uture
economic
growth

and development

Survey responde
nts were invited to indicate their views on the knowledge
sector

s potential for future growth. Over 70 per cent of respondents were of
the view that there were significant opportunities for growth in the City of
Melbourne

s knowledge sector. However, a si
gnificant number of respondents
0%
20%
40%
60%
80%
100%
All
Intermediate
Core
Yes
No
No
answer
Many survey respondents
are positive about the
sector

s potential for growth,
though some identified
growth impediments

City of Melbourne knowledge sector study

Executive summary

xix

(around 3
5

per cent) also identified impediments to the future growth of their
knowledge related activities.

Many of impediments identified by survey respondents were largely outside of
the control of the City of Melbourne.
For example, resource constraints
,

including the lack of funding and/or current or future funding cuts by the
Victorian Government
,

were raised by a number of respondents as
impediments to their organisations


future growth. However, some other
respondents

identified impediments that may feasibly fall within the City of
Melbourne

s mandate including: the high cost of parking in the City; high
rents; congestion in and across Melbourne, poor public transport; land
availability and planning restrictions.

Figure ES
10


Are there opportunities or impediments to future growth?


S
ource:

ACIL Tasman Knowledge sector survey
.

While only about a third of survey
respondents identified impediments to the
future growth of the knowledge sector in the City of Melbourne, ACIL
Tasman

s consultation with some of the city

s strategic thinkers also identified
a few major challenges that they believe that the
City of Melbou
rne

could assist
the sector in addressing now and into the future.

A number of
survey
respondents considered there could be a role for the City
of Melbourne in facilitating growth and/or addressing the identified
impediments. For example, of the 107 respon
dents
who

identified
opportunities for future growth
,

54 per cent considered there could be a role
for Council. These survey respondents had a range of views on the role
Council could play. The roles considered appropriate for Council action
included:

0%
20%
40%
60%
80%
100%
Impediments to future
growth?
Opportunities for future
growth?
Yes
No
No answer
Opportunities and
impediments
-

a

role for
the
City of Melbourne?

City of Melbourne knowledge sector study

Executive summary

xx



advo
cacy, brokering or lobb
y
ing the Victorian and/or Federal Government



running, sponsoring, promoting knowledge events, projects and/or
activities



providing financial assistance.

Of the 56 respondents
who
identified an impediment to future growth
,

43
suggeste
d there could be a role for Council. These roles again varied with a
number focusing on removing/reducing taxes or introducing subsidies and/or
providing a new funding source for projects.
O
ther respondents saw Council

s
role as being to lobby other arms o
f government or raise awareness or facilitate
activities.


Key Finding
Expanding opportunities and overcoming impediments



T
here is a potential role for the City of Melbourne in advocacy,
brokering and/or lobb
y
ing the Victorian and/or Federal
Governments

to improve knowledge sector outcomes by
expanding opportunities and reducing impediments to growth.




Our consultations with a number of key knowledge stakeholders put forward a
range of roles for the
C
ouncil to enhance Melbourne

s knowledge sector

s

future growth and development.

For example, one stakeholder suggested that
,

in his view, the city needs to have a much more strategic and focused approach
to ensure that it is not bypassed in the digital future. Another suggested that
,

if
the city aspired

to be a world
-
class
knowledge city and economy, this aspiration

needs to be an explicitly stated objective and all stakeholders need to know
what part they can play in it.


Key Finding
Economic vision of the City of Melbourne as an innovation hub
and know
ledge capital in the digital age


Some stakeholders in the knowledge sector
believe that
Melbourne needs to articulate a different approach to creating
jobs, prosperity and wealth in the digital age.


The City of Melbourne should consider acting as a
convener and facilitator
that brings together key stakeholders
,

such as the chief executives of all major
knowledge sector organisations (private, public and non
-
profit, such as the
NGV, State Library, the Committee for Economic Development of Australia
(C
EDA), high
-
end firms in design, consulting and financial services) and top
Victorian Government officials,
to
develop

a
n economic

vision for the city as a
City of Melbourne knowledge sector study

Executive summary

xxi

dynamic innovation hub

and knowledge capital
,

and
to
identify the practical
roles that each must assu
me to realise that vision.

The
City of Melbourne

is already in the process of formulating a broad
-
based
Smart City Strategy
. Council
should
ensure that the bottom
-
up, community
-
driven approach adopted in its
Smart City Strategy

complements and melds with
t
he top
-
down approach
,

where the city

s

movers and shakers


are tasked with
the gestation of the overarching economic vision for the city in the digital age.

I
t was
also
suggested
by some stakeholders
that t
he City of Melbourne should
consider
investigat
ing

ways in which it can raise awareness of Melbourne

s
scientific and other knowledge sector capabilities, help the community to
perceive and value knowledge as a form of wealth, and assist the public in
understanding the nature and role of knowledge. It
was suggested that
C
ouncil
should endeavour to do
this
in creative and innovative ways that
more deeply
engage stakeholders.



Key Finding
Educating stakeholders



To help facilitate future growth
t
here is a potential role for the
City of Melbourne in educ
ating stakeholders about crucial
aspects of knowledge and its ramifications for the city

s
economic and social development





ACIL Tasman also sees merit in a number of stakeholder proposals for
encouraging the creation of spaces that draw creative peo
ple together and
enable serendipitous encounters and innovation. For example, the City of
Melbourne could explore what changes in its planning guidelines (if any) would
facilitate the development of such spaces. In recognition that creatively
designed spac
es facilitate serendipitous encounters that result in knowledge
creation and dissemination, the City of Melbourne should consider
encouraging developers and universities to provide more communal spaces
that engender trust, social interactions and informal
knowledge exchange.



Key Finding
Creating spaces for interaction


Encouraging the creation of spaces that
bring creative people
together and
enable serendipitous encounters and
knowledge
dissemination (and
through
this produce
innovation
)

could
potentially be
a role for the City of Melbourne
.




City of Melbourne knowledge sector study

Executive summary

xxii

Attracting talented individuals and businesses to Melbourne can work to
increase the city

s vibrancy and sustainability
.

T
he Victorian Governmen
t has a
number of talent attraction schemes including the
proposed
New Economy
Postgraduate Scholarships Scheme

and the
Early Career Researchers Talent Attraction
Scheme
.
The City of Melbourne
could consider encouraging

and
, where feasible,

assist
ing

the V
ictorian Government in adopting and implementing
well
-
designed talent attraction schemes
.
C
ouncil could
also
consider
investigat
ing

ways of making the city even more liveable and attractive as a tourist
destination, and work with the Victorian Government t
o attract high
performing Australian and international corporations to establish operations in
the city and to encourage those already here to expand their operations.


Key Finding
Talent attraction



Attracting talent and businesses to the City of Melbour
ne could
increase the vibrancy and sustainability of Melbourne as a
knowledge city
.




Recommended roles for the City of Melbourne

To ensure
the city

s
sustai
nable economic, socio
-
cultural
and institutional
development, ACIL Tasman considers, based on
the evidence gathered for this
study

(including from desktop research, the knowledge sector survey and
stakeholder consultations)
, that the City of Melbourne
could

play key roles in:



facilitating the
defining
of
a
n economic

vision and blueprint for the
c
ity in
the digital age



engaging the knowledge sector through a Reference Network



enhancing the stock of knowledge assets



supporting knowledge sector events



facilitating networking and collaboration



educating stakeholders and engaging with them in creative
ways



encouraging the creation of spaces that enable serendipitous encounters
and innovation



attracting talent to the knowledge sector



monitoring the ongoing development of the knowledge sector.

Recommendation 1:
Formation of Knowledge Melbourne reference
network

The City of Melbourne should consider forming a Knowledge Melbourne
reference network in 2013.

City of Melbourne knowledge sector study

Executive summary

xxiii

The City of Melbourne should consider inviting th
ose

respondents
of

the
knowledge sector survey who indicated their willingness to be contacted
subseque
ntly by
C
ouncil to a workshop in the first
half of 2013. At this
workshop
their views will be sought on how a reference network of knowledge
sector organisations could engage with the
C
ouncil to further the
sector’s
development
.

The organisations that choo
se to attend the workshop, along with key
individuals who delivered talks and presentations during Knowledge Week
2012 and those whom ACIL Tasman interviewed as part of this study, could
then be invited to become
inaugural

members of the City of Melbourne
knowledge sector reference network.

While the activities of the reference network will be decided by the City of
Melbourne and the network itself, some suggested activities for the network
include:



build on the goal of Melbourne becoming a world
-
class know
ledge city in
the digital age



organise knowledge forums and roundtables featuring reference network
members



convene forums where employer groups could articulate the specific skills
they require from graduating university students



organise

networking eve
nts that coincide with talks by eminent knowledge
sector speakers from overseas



attend
or

organise
other social events with the opportunity of meeting key
decision
-

and policy
-
makers in the
C
ouncil



host a
blog on knowledge
-
related topics hosted on the City

of Melbourne
Knowledge Melbourne webpage with contributions by reference network
members.

Recommendation 2:
Facilitating access to a knowledge assets
directory

The City of Melbourne should consider making the initial knowledge assets
directory developed b
y ACIL Tasman (and reproduced in Appendix A)
available on its website, if possible as an open access database that is searchable
by asset category and asset name.

The assets directory could be refreshed periodically. This could coincide with
the (triennial
) survey conducted by the City of Melbourne for the purpose of
updating its CLUE database. Businesses and organisations located in the
municipality would be asked to review the existing assets directory (made
available to them in PDF form) and to provide a
n update or request for
City of
Melbourne knowledge sector study

Executive summary

xxiv

inclusion if appropriate. The
C
ouncil would then review these updates and
requests for inclusion before releasing a new version of the directory.

As an alternative to this

periodic update


approach, the City of Melbourne
could allow user updates at any time (with moderation for accuracy and to
guard against misrepresentation). These updates could be monitored by a
committee formed by the members of the proposed Knowledge Melbourne
reference

network.

Recommendation 3: Continuing support for Melbourne Knowledge
Week

Given the success of Knowledge Week 2012 in showcasing the city’s
knowledge sector, the City of
Melbourne

should continue its strong support
for Knowledge Week going into the futur
e as a promoter, facilitator, sponsor
and facility provider
.

Recommendation

4
:
Inclusion of a

knowledge
-
related events


category in the City of Melbourne

s

what

s on


web pages

The City of Melbourne should consider including an additional

Knowledge
-
rela
ted


category to the events page of the

what

s on


section of its website
(www.thatsmelbourne.com.au/whatson/Pages/Whatson.aspx). Some of the
events in this new category are expected to be cross
-
listed in existing event
categories. (It is noted that there

are already overlaps between existing
categories.)

The existing protocols for soliciting information on upcoming events from
event organisers should be used for knowledge
-
related events. Clear guidelines
should be provided to the administrator of the

wha
t

s on


webpage as to what
constitutes a knowledge
-
related event. If necessary, a member of the
C
ouncil

s
Knowledge Melbourne team might have to assist the administrator in deciding
whether an event is knowledge
-
related or not.

Recommendation
5
:
Monitor th
e development of the city

s
knowledge sector

The City of Melbourne should consider tracking changes and developments in
the city

s knowledge sector, including the success of its knowledge sector
strategy, by commissioning appropriate longitudinal research
and surveys.

The City of Melbourne should also consider conducting or commissioning
more in
-
depth research on particular knowledge
-
related activities in specific
key industries
or groups
within the knowledge sector.


City of Melbourne knowledge sector study


Introduction

1

1

Introduction

ACIL Tasman was commissioned by the City of Melbourne to undertake a
study to identify the composit
ion of the city

s knowledge sector in terms of its
organisations and infrastructure, and determine the value of this sector to the
city

s economy
.
This report presents the outcomes and findings of the study
.

1.1

Background and context

Melbourne is
generally
r
ecognised as a
s
porting
c
ity and
a c
ultural
c
ity, but
the
City of Melbourne is concerned that
it is not as widely known for its reputation
as a
k
nowledge
c
ity
.

Nevertheless, i
n 2010 the annual
Most Admired Knowledge
City Award

was
bestowed upon

Melbourne during the Knowledge Cities World
Summit
, an annual event organised by
the World Capital Institute and

Teleos
.

Melbourne
possesses
much of
the key infrastructure and organisations
that

characterise a
k
nowledge
c
ity
, with

recognised strengths in
fields such as
a
dvanced
m
anufacturing,
b
iotechnology,
c
reative
i
ndustries

(particularly
design)
,
e
vent
m
anagement,
f
inancial
s
ervices,
h
ealthcare,
higher education,
information communication and technology
,

and sustainability
.


The City of Melbourne believ
es that the city

s economy and society will benefit
specifically from both promoting and strengthening the shared interests of its
knowledge sector
.
These benefits are expected

to flow directly from the
attraction a
k
nowledge
c
ity has for students, teacher
s, researchers,
professionals and specialists to live, work, and network in the city
,

and
also
through
the creation of knowledge that this interaction produces
.

E
ntrepreneurs and businesses will
also
develop and be attracted to Melbourne
to capitalise on t
he knowledge created, leading to the growth of existing
businesses and the creation of new ones.

However, the realisation of these benefits is
dependent

on Melbourne being
recognised locally, nationally and internationally as a knowledge city
.
While
Melbou
rne

s reputation is known w
ithin the various components of the
k
nowledge sector itself
,

locally and internationally, it is not as well
known
outside this sector
, nor are
the reasons why this reputation and the knowledge
sector are vital to Melbourne

s
economy and should therefore be
enthusiastically supported
.
The City of Melbourne is concerned that
Melbourne

s local community
, in particular, are not aware of the city

s
knowledge credentials.

The City of Melbourne has therefore made the promotion of the

city

s
knowledge sector as one of 10 Key Strategic Activity (KSAs) for 2012
-
13
.
It
has committed to supporting the growth of its knowledge sector by
City of Melbourne knowledge sector study


Introduction

2

undertaking a multifaceted project that will provide research, consult and
identify the opportunities for
the sector, determine the
C
ouncil

s role in the
sector

s future and promote its knowledge sector locally, naturally and
internationally
.
This study forms a key component of the project by being the
foundation for the
C
ouncil

s development of a knowledge st
rategy.

1.2

Study objectives

The study is to identify the composition of the City of Melbourne

s Knowledge
sector in terms of its organisations and infrastructure
,

and
to
determine the
value this sector adds to the City of Melbourne

s economy
.
To this end, its

primary objectives are to complete the first two deliverables associated with the
Knowledge Melbourne KSA, namely:

1.

To create an inventory of organisations, assets and events within the
municipality that contribute to the City of Melbourne

s Knowledge sect
or;
and

2.

To produce a report showing the composition of the municipality

s
knowledge sector and the contribution this sector makes to the
municipality

s economy.

As it progresses, the study will also inform work being undertaken
concurrently by the City of
Melbourne on the other KSA

Knowledge
Melbourne


deliverables, specifically:



Informing the development of the Knowledge Melbourne community
engagement and communications plan and online presence to promote the
municipality

s knowledge sector locally, nati
onally and internationally
.



Informing the future development of Melbourne Knowledge Week (post
2012)
.



Identifying individuals who might be considered appropriate to:



join a reference network to provide advice on Council

s service to the
municipality
regarding the knowledge sector



work with the City of Melbourne on research projects or partnerships.

As the first major piece of research on the knowledge sector commissioned by
the City of Melbourne, the overall aim of the study is to provide Council with

an informative high
-
level overview of the city

s knowledge sector.

It is expected that further research will be commissioned that will delve more
deeply
into specific aspects of the city

s knowledge sector, such as what the
Council itself does in terms of

generating knowledge and its contribution to
the knowledge sector as an organisation. Topics for future research will be
guided by the findings of this study.

City of Melbourne knowledge sector study


Introduction

3

1.3

Study approach

The approach used in this study combines desktop research, a survey of
knowledge

sector businesses and organisations
,
and consultation with a
number of contributors to
the City of
Melbourne

s Knowledge Week

2012
.

1.3.1

Desktop research

Desktop research involved a literature review and
I
nternet searching to assist
in the development of a
registry of key assets and events
.

The 2010 Census of Land Use and Employment (CLUE) undertaken by the
City of Melbourne also provided a valuable source of information on
businesses and organisations operating in Melbourne
.
This census data
provided an op
portunity to better understand the nature of knowledge sector
activity in Melbourne in 2010
.
The 2010 CLUE employment data was also
used in conjunction with ACIL Tasman

s in
-
house input
-
out
put

table
s

for
Victoria to estimate the contribution the knowledge
sector makes to the City of
Melbourne

s Gross Regional Product (GRP).

1.3.2

Knowledge sector survey

In addition to desktop research and consultation
,

ACIL Tasman conducted

a
knowledge sector
survey of

businesses and organisations

operating in the City
of Melbour
ne
.
The survey opened on

8 October 2012
and closed on
1
December 2012
, which coincided with the end of the city

s Knowledge
W
eek.

As electronic contact details were not available, invitations to participate in the
knowledge sector survey were sent out by t
he City of Melbourne

s Chief
Executive Officer,
Dr Kathy Alexander
,

by mail
.
The
C
ouncil

s CLUE
database was the source used to identify the business
es

and organisations most
likely to be operating in the
core and intermediate components of the
Melbourne

s

knowledge sector
.
In addition to these businesses and
organisation
s
,

invitations were also sent to a randomly selected pool of
businesses and organisation
s

ACIL Tasman
considered as potentially operating
in the

periphery


of the City

s knowledge sector
.
By
the time the
survey clos
ed

on 1 December 2012
,

ACIL Tasman had received
1
71

responses
.
Of these
responses, 159 considered that their organisation was part of the knowledge
sector
, with the majority of these responses identifying as operating in the core

and intermediate components of the knowledge sector

Appendix A

presents
a copy of the survey questions and
Appendix C

provides
some
additional background information on the
conduct of the
survey and its
respondents
.

City of Melbourne knowledge sector study


Introduction

4

ACIL Tasman was also provided with the findings of a short survey the City of
Melbourne conducted with 30 Kn
owledge Week 2012 event organisers.

1.3.3

Stakeholder consultation

As Knowledge
Week
2012 took place during the course of the study
,

our
consultants were able to attend a number of key events
.
After these events
ACIL Tasman consulted with the
following
contribut
ors at
Knowledge W
eek
events

and/or attendees at the launch of the Knowledge Melbourne initiative
in August 2012
:



Professor Ian Gust, Chairman of Bio21



Andrew Jaspan, Founder of The Conversation




Professor Bruce Wilson, Director of the RMIT European Union
Centre



Sue
Roberts
, CEO of the State Library of Victoria and State Librarian



Associate Professor Rufus Black, Master of Ormond College at the
University of Melbourne




Ms
Marigo Raftopoulos, CEO of Strategic Games Lab

These
Knowledge
W
eek
contributors were
selected for one
-
on
-
one
consultation because of their diverse experience and the breadth of sectoral
coverage
.
Interviews focused on the following topics:



How could the City of Melbourne best assist organisations in the
knowledge sector to enhance the sect
or

s assets, facilitate knowledge events
and increase collaboration between knowledge sector organisations?



How could the City of Melbourne help knowledge sector organisations
realise future growth opportunities in the sector and overcome
impediments to gr
owth
?



Are there missing assets or events in the draft of the city

s knowledge
sector registries?



What lessons and insights can we draw from the experiences of other
knowledge cities around the world?

In addition to this face
-
to
-
face consultation,
as part
of the survey questionnaire
ACIL Tasman
asked survey respondents if they would be happy to be
contacted in the future about a potential knowledge sector network
.
By 8
November
2012
,

96 respondents had indicated that they could be contacted
and provided con
tact email
addresses
.

Around the beginning of
K
nowledge
W
eek these survey respondents were email
ed

a draft registry of the sector

s
assets and a summary of the
study

s preliminary findings

for feedback
.

This
preliminary summary of findings, amongst other
things, summarised
respondents


views on the potential role for
C
ouncil in supporting the
Knowledge sector
.


City of Melbourne knowledge sector study


Introduction

5

These
r
espondents were
asked for:



feedback on the asset registry, including advice on whether they believed
there were major assets that were not l
isted on the asset registry
;



feedback on the study

s preliminary findings
;

and



elaboration on the ideas put forward by survey respondents for the
C
ouncil
that would be within the City of Melbourne

s capabilities
.

At the time of writing this report
14
respondents had provided some feedback
on the asset registry and the study

s preliminary findings
.
These responses have
been taken into account in this
final
report.

1.4

Report structure

This report is organised as follows:



Chapter 2 explores the concept of th
e knowledge city and presents a
definition of the knowledge sector



Chapter 3

examines the composition of the City of Melbourne

s knowledge
sector
and

analyses the knowledge activities undertaken in the sector, the
knowledge outputs generated by the sector
,


as well as the users of those
outputs



Chapter 4 estimates of the City of Melbourne

s knowledge sector

s
economic contribution to the economy

in terms of employment and value
added



Chapter 5 draws on desktop research, consultation and survey responses to
highlight the knowledge sector

s assets and events



Chapter 6
analyses the

sources
of knowledge
and collaboration

activities
undertaken by organisations in the knowledge sector



Chapter 7 presents stakeholder views on the opportunities and challenges
to the
growth
prospects
of the knowledge sector



Chapter 8

discusses learnings from the knowledge city literature and the
types of policies and actions adopted by local and regional governments in
various knowledge cities around the world



Chapter
9

explores the wa
ys in which the City of Melbourne could facilitate

the future growth and development of the knowledge sector, including
potential roles it could play and the policies it could implement.


City of Melbourne knowledge sector study


Knowledge cities and the knowledge sector

6

2

Knowledge cities and the
knowledge sector

This chapter explains the
concepts of a knowledge city and the knowledge
sector
.
It then sets down a specific definition of the City of Melbourne

s
knowledge sector that will be used in the rest of the study.

2.1

What is knowledge?

Knowledge is often confused with information, with

in
formation economy


and

knowledge economy


used interchangeably
.
According to a 2008 report by
the Work Foundation, what distinguishes knowledge from information is the
way in which knowledge empowers actors with the capacity for intellectual or
physical
activity
.
Knowledge is a matter of cognitive capability
.
Information, by
contrast, is passive and meaningless to those without suitable knowledge
.
Knowledge provides the means by which information is interpreted and
brought to life.
2

A further distinction
is between

tacit


and

codified


knowledge
.
Codified
knowledge is written down in manuals, guides, instructions or statements, and
is easily reproduced
.
Tacit knowledge, on the other hand, resides with the
individual in the form of expertise and experienc
e that often cannot be written
down and is costly to transfer to others
.
As codified knowledge and
information are in many ways indistinguishable, the significant difference is
between t
acit knowledge and information.

2.2

What is a knowledge city?

A society wh
ich develops in parallel with knowledge development is termed a

knowledge society

.
The by
-
products of the various stages of knowledge
development (from knowledge creation, th
r
ough knowledge dissemination to
knowledge utilisation) form the core of a

know
ledge economy

.
A knowledge
city is a geographical area with an expanding knowledge society, and with
knowledge as a strong pillar of its economy.
3

Put another way, t
he term

knowledge city


describes an evolving urban
economic structure where the producti
on and use of information is
paramount
.

These cities typically facilitate innovation and efficiency through



2


The Work Foundation,
The Knowledge Economy: How Knowledge is Reshaping the Economic
Life of
Nations
, March 2008

3

International School of Information Management
http://www.isim.ac.in/mkc/knowledgeCity.htm

City of Melbourne knowledge sector study


Knowledge cities and the knowledge sector

7

smart decision
-
making
.

Knowledge cities depend on key components
(universities, business, and local government) and crucially on their interactions
and shared interests.

Knowledge cities play a fundamental role in knowledge creation, economic
growth and development
.
They are not just about the generation of knowledge,
but also about its use, its application and the ways in which knowledge is able
to b
e mobilised in the interests of both production and economic value, such
as problem
-
solving and decision
-
making.
4

Knowledge cities are incubators of knowledge and culture, forming a rich and
dynamic blend of theory and practice within their boundaries, and

are being
driven by knowledge workers through a strong knowledge production process.

As societies become increasingly knowledge
-
based, the nature of city
development changes because activities in the knowledge sector are becoming
more important and they r
equire conditions and environments which are very
different from those required by commodity
-
based manufacturing activities in
the production sector.

There are a number of broad components that form a knowledge city
.
While
every knowledge city is different

and requires different knowledge qualities to
grow, common characteristics of knowledge cities include accessibility, cutting
edge technology, innovation, cultural facilities and services, and quality
education as well as
world
-
class

economic opportunitie
s
.
The city embraces
diversity and culture to provide civic spaces for activities of the community
collectiveness and associations
which

foster face
-
to
-
face relations.

More specifically, the layers that comprise a knowledge city include
:
5



Knowledge base
:
including educational institutions and R&D activities



Industrial structure
: affects progress and initial development of a knowledge
city



Quality of life and urban amenities
: ensures a knowledge city has necessary
elements
that attracts
knowledge workers to

build a strong knowledge base



Urban diversity and cultural mix
: as an instrument in encouraging creativity and
movement of knowledge



Social equity and inclusion
: minimises social disparity and negative tensions



Scale of a city
: larger knowledge cities may

tend to offer a greater knowledge
pool, greater diversity and choice for knowledge workers and businesses.




4

Professor Bruce Wilson, Director of the European Union Centre at RMIT University,
interviewed on 6 December 2012/

5

Van Winden, W, B
erg, W, van Den, L and Peter, P (2007) European cities in the knowledge
economy.
Urban Studies

44(3), 525

549

City of Melbourne knowledge sector study


Knowledge cities and the knowledge sector

8

Basic ingredients of effective knowledge cities include
:
6



Innovation and investment in research and development as the drivers of
economic growth



Ef
fective competition policies to stimulate the demand for innovation



An infrastructure of
world
-
class

universities with strong linkages to the
business community



Access to a ready supply of venture capital to ensure that research can be
transformed into rea
l products services and processes



A highly skilled workforce that delivers real improvements in productivity
and performance



Efficient transport infrastructure to facilitate access to markets



Efficient ICT infrastructure



Promotion of highly effective
collaboration across industries, through
business clusters and formal and informal business networks



High levels of social capital.

A knowledge city recognises that its ability to grow and capture knowledge is
the basis for its global competitive advantage

and its quality of life, and seeks
to direct its resources in pursuit of a compelling vision for its future.
7

A knowledge city instils a sense of ownership and attachment in the minds of
residents as it actively involves them in the developmental activiti
es and allows
for public articulation of thoughts and criticisms
.
In other words, the residents
of the city become active stakeholders in its development.

However,
there is no stark line that cleanly separates traditional cities from
knowledge cities
.

Most

present day cities have some elements of knowledge
city components, however basic, making it difficult to discern modern cities
from knowledge cities.

2.3

Melbourne as a knowledge city

Over the past decade, Melbourne has been
lauded

as a world leading
knowled
ge cit
y by various experts and organis
ations, receiving the top award in
2010 at
the
Most Admired Knowledge City Awards (MAKCi) sponsored by
the World Capital Institute and Teleos
.

The awards, which also saw Singapore,
Manchester and Ottawa acknowledged, w
ere presented in Melbourne as part of
the 2010 Knowledge Cities World Summit.

Melbourne

s reputation as an



6

Coats David,
What is the Knowledge Economy
, The Work Foundation, 2005

7

Ergazakis, Metxiotis and Psarras, National Technical University, Athens
Greece

in
Knowledge Cities Francisco Javier Carrillo (ed) 2006

Cit
y of Melbourne knowledge sector study


Knowledge cities and the knowledge sector

9

innovative city is increasing with the 2thinknow group ranking Melbourne 17
th

in the World as
an

innovative city (up from its 2008
-
09 ranking of 25)