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Transcript of Second ECA Education Conference Tertiary Education: Quality, Financing and Linkages with Innovation...
Second ECA Education Conference
Tertiary Education: Quality, Financing and
Linkages with Innovation and Productivity
Dubrovnik, Croatia, October 2-4, 2005
CREATIVITY, INNOVATION AND ROLE OF
HIGHER EDUCATION IN ECONOMIC DEVELOPMENT
Professor Jorma Routti
CIM Creative Industries Management & Helsinki University of Technology
[email protected] [email protected]
Former President of Sitra & Director General of Research DG of European Commision
Three Basic Tasks to Consider for Your Country and its Educational System:
Study Knowledge Economy Index and Its Components at www.worldbank.org/kam
What Institutional Changes are Needed for Improved Innovation System?
What Model Would Best Advance Economic Development?
Fundamental changes taking place
GlobalizationTransportation and communications costs downGlobal information and mediaRegional integration (NAFTA, EU, ASEAN+3)Trade liberalization and increased competitionExports and imports increased from 38% to 52% 1990-2002Value added by MNCs is 27% of global GDP in 2002
Digital revolution
Knowledge-based economies
World Bank Studies, Korea, China, Japan, India, Finland
15 Largest Economies: GDP 2002 (Trillions of international $)
United States$10.14t
China$5.73t
South Korea$0.78t
India $2.69t
Indonesia$0.66t
Mexico $0.88t
Brazil $1.31t
Spain $0.85t
United Kingdom$1.51t
Italy $1.48t
France$1.55t
Germany $2.17t
Canada$0.90t
Japan 3.26
-3
-1
1
3
5
7
9
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
GDP per capita (international $) 2002
Ave RGDP per capita growth 1990-2002 (%)
Russia $1.41t
©Knowledge for Development, WBI©Knowledge for Development, WBI
Real GDP (PPP): Projections 2004-2015 (Using 1991-2003 Average Growth Rates)
0
2
4
6
8
10
12
14
16
2003 2005 2007 2009 2011 2013 2015
Trillions of 1995 international $
India China Brazil
Canada France Germany
Italy Japan Mexico
Russian Federation United Kingdom United States
India
China
United States
JapanGermany
United Kingdom
France
Italy
Canada
Mexico
Russian Federation
Brazil
Telecommunications and Nokia's Change
1988 1998
Mobile Phones 60% Infrastructure 33% Other 7%
Floorings 1%
Chemicals 2%
Machinery 4%
Electrical Wholesale 4%
Rubber 6%
Information Systems 23%
Cables 9%
Paper 10%
Consumer Electronics 31%
Mobile Telephones 5%Telecommunications 5%
Mobile Telephones 5%Telecommunications 5%
2000
Net sales USD 5.2 billion 1988 Market capitalization USD 1.4 billion at year end 1988
Net sales USD 19.9 billion 1999Market capitalization USD 236.5 billion, as of February 28th 2000
Services in the Mobile Information Society
Information
Entertainment
e-shoppingand banking
Voice
Corporate access and e-mail
e-education
Video
FOCUS IN THE VALUE CHAIN
CONSUMERCONTENTCREATORS
CONTENTPRODUCERS
CONTENTDISTRIBUTORS
CREATES IDEA
HOLDS IPRs
TECHNOLOGY DRIVEN IDEAS
DEVELOPSCOPYRIGHTS
PACKAGES IPRs
PROGRAMMINGCONTENT
DISTRIBUTESCOPYRIGHTS
MARKETS / BRANDS IPRs
DISTRIBUTIONPLATFORMS
TICKETSMAGAZINESBOOKS, CD,VIDEO, DVD,RADIO, TV
NET, WAP/3G
The Four Pillars of the Knowledge Economy
Education
InnovationInformation
Infrastructure
Interconnected
Interdependent
Interconnected
Interdependent
Economic and Institutional
Regime
Innovation – Weighted by Population
Education and Innovation Keys to Competitiveness
Education is the fundamental enabler of the knowledge economy and a key to competitiveness and growth
Critical no longer basic or even secondary but higher education and the constant upgrading of skills
Increasing competition for people with high level skills
Education couples with research and innovation
R&D input in some OECD countries
Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109
02-2003
USA
Japan
Germany
Sweden
Great Britain
France
Austria
FINLAND
Denmark
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02
OECD total
3.5
3.0
2.5
2.0
1.5
1.0
4.0
Percentage of GDP
est.
Canada
Israel4.5
0.5
Iceland
South Korea
Singapore
China
Norway
Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.
Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.
Source: Statistics Finland, according to the OECD product catalogue defined in 1995
The share of high tech exportsin some OECD countries 1988-2001
Norway
USAJapanUnitedKingdomNetherlandsFINLANDSwitzerlandFranceSwedenGermanyDenmark
Docs 32187B 03 /02-03
0
5
10
15
20
25
30
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
% of total exports of goods
EU
MARKETS quality
competitiveness price
competitiveness environmental
expertise
F O R E S T I N D U S T R Y
Pulp and paper technology
Wood products industry
Machines, machinery and processes
A11/ 99-08
Securing competitiveness inthe Forest Industry
FORESTRY
CONSTRUCTION AND WOOD TECHNOLOGY modification of wood construction
technology andarchitecture
logistics, assembly
MANUFACTURING TECHNOLOGY forestry machines process and production machinery material technology
BIOTECHNOLOGY enzymes rot prevention gene technology
ENERGY AND ENVIRON-MENTAL TECHNOLOGY biofuels, combustion technology ecobalances closed cycles energy-saving and
emissions
CHEMICAL TECHNOLOGY paper and bleaching chemicals surface treatment
substances pigments, adhesives
INFORMATIONTECHNOLOGY sensors, measuring
and control computational
intelligence,simulation andmachine vision
multimedia and telecommunication tomography
Co-operation between companies and universities and research institutes
Norway
UK
Sweden
FINLAND
Portugal
Austria
Netherlands
Ireland
Italy
France
Denmark
Germany
Belgium
EU
Norway
UK
Sweden
FINLAND
Portugal
Austria
Netherlands
Ireland
Italy
France
Denmark
Germany
Belgium
EU
0 20 40 60 %
Share of innovative companieshaving co-operation agreements
with universities (1994-1996)
Share of innovative companies havingco-operation agreements with public
research institutes (1994-1996)
Source: Eurostat, Enterprise DG, 2nd Community Innovation Survey
J05/ 00-06
0 20 40 60 %
DM 3219004-2004 Copyright © Tekes
Innovation environment in FinlandResources and funding
Pri
vate
Basic research Applied research Business R&D
Business developmentMarketingInternationalisation
R&Dat companies
3,375
The figures represent the total extent of each organisation in million euros in 2002. In parenthesis the share thatis funded from the State budget. The funds of Tekes, the Academy of Finland and Innofin are funded entirely
from the State budget.
BusinessAngels
387
Pu
blic
Finnvera352 (34)
Universities926 (402)
Academyof Finland
177Ministries,
TE-Centres,sectorial research
311 (227)
Tekes386
VTT219 (68)
From abroad152
Innofin5 (4)
Finpro35 (20)
Venture capitalists:Private 349
Industry Investment Ltd 63 (42, additional state investment)
Sitra 48
Forest Industry Cluster
Brasil, South Africa, China, Indonesia
Manufacturing and Operations
Valmet Paper Machines• Design, manufacturing
and remote operations
Production • Focus on specific market
segments and products
World wide marketing
Paper, cardboard, packaging material
Poyry Design and Consulting
Pulp Mills Sunds
Design, manufacting and maintenance
Timberjack Forest Harvestors
Composition of Regional Economies United States, 2001
Traded ClustersTraded ClustersTraded ClustersTraded Clusters Local ClustersLocal ClustersLocal ClustersLocal Clusters Natural Resource-Natural Resource-Driven IndustriesDriven Industries
Natural Resource-Natural Resource-Driven IndustriesDriven Industries
31.6%31.6%
1.7%1.7%
$44,956$44,956
133.8133.8
4.5%4.5%
144.1144.1
21.721.7
590590
31.6%31.6%
1.7%1.7%
$44,956$44,956
133.8133.8
4.5%4.5%
144.1144.1
21.721.7
590590
67.6%67.6%
2.8%2.8%
$28,288$28,288
84.284.2
3.7%3.7%
79.379.3
1.31.3
241241
67.6%67.6%
2.8%2.8%
$28,288$28,288
84.284.2
3.7%3.7%
79.379.3
1.31.3
241241
0.8%0.8%
-1.0%-1.0%
$33,245$33,245
99.099.0
2.0%2.0%
140.1140.1
7.27.2
4848
0.8%0.8%
-1.0%-1.0%
$33,245$33,245
99.099.0
2.0%2.0%
140.1140.1
7.27.2
4848
Share of Employment
Employment Growth, 1990 to 2001
Average Wage
Relative Wage
Wage Growth
Relative Productivity
Patents per 10,000 Employees
Number of SIC Industries
Note: 2001 data, except relative productivity which is 1997 data.Source: Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School
$15,000
$25,000
$35,000
$45,000
$55,000
50 100 150 200 250 300
Average Regional Wage, 2001
Share of Traded Employment in Strong Clusters (LQ > .8), 2001
y = 96.736x + 16218R2 = 0.377
New York, NYBay Area, CA
Boston, MA
Determinants of Regional Prosperity Cluster Strength and Wage Levels
Source: County Business Patterns; Michael E. Porter, The Economic Performance of Regions”, Regional Studies, Vol. 37, 2003
s
SOCIAL & HUMAN CAPITAL
TECHNOLOGY & INNOVATION
RE
SE
AR
CH
CA
PA
CI
TY A
BS
OR
TIO
N C
AP
AC
ITY
SUPPLY USERS
CREATORS DEMAND
s
SOCIAL & HUMAN CAPITAL
TECHNOLOGY & INNOVATION
RE
SE
AR
CH
CA
PA
CI
TY
AB
SO
RT
ION
CA
PA
CIT
Y
SUPPLY USERS
CREATORS DEMAND
JAPAN
USA
IRL
ITA
SWE
DE
FR
UK
FIN
ECONOMIC POLICY MANAGEMENT PROGRAMS SINCE 1977
Participants: Members of Parliament, Media Leaders, Civil Servants Labour Movement, Industry Organizations, Academia
Objectives: Growth, Employment, Balance, Low Inflation
Instruments: Fiscal Policy, Taxation, Incentives, Echange Rates, Interest Rates
Topics: Globalization, Integration, Trade, Social Policy, Regional Policy, Education, Research,
Industry, Agriculture, Banking, Environment, etc.
Government: Consencus Building, Trade-offsSimulation Models, Economic Advisors
Adoption: Baltic Countries, New EU Members, Latin America, WB