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

Creates an index that will allow comparison of variousLatin American cities and their respective abilities to create knowledge-basedenterprises. A review of a variety of literature aided in the development ofthe variables utilized in the index. The 50 variables used in creating theindex are divided into the following groupings: knowledge, innovation,entrepreneurship, business foundation, cultural framework, creative magnetism,and entrepreneurial management. To test the feasibility and cost-effectiveness of the index, one city,Santiago, Chile, was analyzed.Data for the year 2002 were used andobtained from secondary sources. By testing the index in Santiago, anunderstanding of the data available and the cost of gathering these data wasgained. The test shows that using secondary sources provides no cost benefit ascompared to using mass e-mailing. Further, the statistical data available inChile were limited.As a result, use of surveys for approximatelyone-third of the variables will be necessary to utilize fully the index. Achart detailing each of the variables and the ease with which the informationwas accessed is provided.(SRD)