Design and Test of an Index to Measure the Capability of Cities in Latin America to Create Knowledge-Based Enterprises

Abstract

An index has been created, based on the experience of a prior version tested in 5 cities in Chile, and from an extensive literature search. Its purpose is to rank cities in Latin America on their capability to create knowledge-based enterprises, in a way that is understandable by stakeholders, motivates action and facilitates diagnosis. The index consists of 7 groups of 50 variables (knowledge, innovation, entrepreneurship, business foundation, cultural framework, creative magnetism and entrepreneurial management). All variables are measured by numerical data from secondary sources. The index is tested for feasibility and cost-effectiveness in one city, Santiago. It is concluded that data limitations will require the use of survey techniques, including survey of perceptions, for about 1/3 of the variables to increase accuracy and generate a more meaningful information for future analysis. Various directions for future research are suggested.