Lighting the Way: Knowledge Assessment in Prince Edward Island

Knowledge Assessment is a methodology to evaluate a community's ability to acquire, diffuse, and utilize knowledge created by the USA National Research Council at the request of the World Bank. It was conceived to assist developing countries or other jurisdictions to cultivate knowledge-based enterprises capable of generating wealth from knowledge and technology. Designed to be rapid and low cost, it relies on a role-playing venture capital model whereby a small number of visiting experts work with local producers, researchers, and others to explore the local culture, economy, and technical capability for investment opportunities and possible barriers.

In the first phase, the project team plays the role of investors from elsewhere, intent on creating or supporting enterprises in the local jurisdiction. They meet with local groups—private sector, financial community, service providers, scientists, and engineers—to get an idea of the climate for business and areas of comparative advantage. They then select a small number of knowledge-based "vanguard enterprises" for investment, each in an advantageous area but technologically a bit beyond existing local businesses. They return with international experts in each of these areas, gather a local group of "stakeholders" who know different aspects of the new enterprises and know the local business environment, and together create business plans for these fictitious enterprises. By comparing local potential to world best-practice, these exercises enable the experts and stakeholders together to identify opportunities for new enterprises and discover local barriers that may prevent their realization. The results of these "virtual case studies" form the basis of the recommendations that are presented at the conclusion of the study.

Prince Edward Island agreed to carry out the first pilot project to test the Knowledge Assessment methodology and at the same time use it to evaluate and to explore opportunities for developing the knowledge economy on the Island. The test of the knowledge economy is efficient use of knowledge resources. It can be measured by the extent to which knowledge is put to use by all sectors of society through profitable knowledge-based enterprises, effective health services, a sustaining and sustainable agricultural system, and a productive educational system, and in the longer term, by the reduction of inequality in society.

Five vanguard enterprises were selected to explore the barriers to putting knowledge to use in PEI, specifically to include a manufacturing business, an enterprise located in a rural area, one that would utilize the Island's telecommunications facilities, and one related to a social sector.

Report covers both methods and recommendations for infrastructural policy intervention in the PEI area. [author]