Financial Participation in a European Perspective Kees Vos President EFES

Six Statements Social innovation is the key to a successful knowledge economy Social innovation requires new management ESO can be an ultimate form of social innovation ESO is not yet sufficiently practiced The knowledge economy is challenged It is time for action!

Social innovation and the knowledge economy employment in knowledge based industries (EU 15): 40% Employees = main asset The battle for brain power 75% of company success by social innovation

Social innovation and management Liberal market economy: high management ratio Coordinated market economy: low management ratio Coordinated market economy: more commitment and motivation More commitment and motivation: higher productivity growth and faster technological progress

Employee share ownership New forms of management: policies of accommodation Basics of ownership unchanged: employment contract = hierarchical relation But: 40% knowledge workers Co-ownership/employee share ownership as the ultimate form of social innovation

ESO not sufficiently practiced (yet?) Low incidence of FP, especially ESO More in larger companies Multinationals: more barriers, more resources Contradictory data Much ado about nothing or: growing interest?

Incidence of ESO: contradictory data EF 100% Cranet 100+ EFES IE 6 34 61 UK 3 18 54 FI 1 4 53 FR 5 19 51 DA 7 33 AT 28 DE 8 24 NL 12 21 IT 20 BE 11

EU economy successful, but….. GDP per capita Economic growth: 1 – 2% per year Unemployment decreasing (7%)

…..but challenged! World economy growth 4- 5% per year Off shoring: 25% of EU companies Mergers and take overs Private equity and hedge funds: pay off within 5 years OECD: workers in the global economy increasingly vulnerable

It is time for action! EU and national level Support social innovation by ESO Special attention to SME’s To be competitive and to stay competitive Let’s blow the whistle not burst the bubble!

Don’t give up! It’s a long way to success!