Building Knowledge Economies: Education in a Global and Competitive World Bruno Laporte Manager, Knowledge & Human Development March 24th, 2008, Kiev, Ukraine

Part I - Understanding Globalization and Knowledge Based Economy (KE) Part II – The search for Talent and Skills Part III - Adjusting Education and Learning Systems for the Knowledge Economy Conclusions Outline

Part I: Understanding the Knowledge Economy

Global Trade in Goods and Services

Inward FDI Stock ( )

Immigration into OECD Countries (1990 & 2000)

Dramatic increase in the size of the global labor force. Requires flexible domestic economies that are able to adjust and respond to the pressures of globalization  Improve the functioning of labor markets to enable workers to move from declining to expanding areas  Improve access to education and training to develop workers ’ skills to keep up with rapid technological change and continuing innovation  Ensure adequate social protection for workers during the adjustment period The Globalization of Labor

World Growth in Key ICTs,

The ability to create, access and apply knowledge is becoming a fundamental determinant of global competitiveness Innovation policies are critical to the ability of countries to compete and grow in a globalized environment. New models of knowledge production, access and distribution are emerging (e.g. open source, knowledge communities…) Shift to knowledge-intensive industries highlight the importance of well trained skills and talent Technological connectivity is transforming the way government, business, and citizens interact Knowledge and Competitiveness

A Knowledge Economy is one that utilizes knowledge as the key engine of competitive growth. It is an economy where knowledge is acquired, created, disseminated and used effectively to enhance economic development Transitioning from a traditional economy to a knowledge economy requires long term investments in education, innovation, and ICT, and an appropriate economic and institutional regime that allows efficient mobilization and allocation of resources Understanding the Knowledge Economy

Knowledge and Growth GDP/Capita Growth: Hungary vs. Korea

Knowledge Assessment Methodology Web-based benchmarking tool: Highlights relative strengths and weaknesses, and allows to identify appropriate policies and investments for transition to the KE Enables simultaneous analysis of a wide spectrum of relevant factors in a cross sectoral approach (important for coherent strategies) Comparisons performed on the basis of 83 structural and qualitative variables for 140 countries All variables are normalized on a scale of 0 (weakest) to 10 (strongest). Normalization procedure involves ranking country performance -- KAM therefore illustrates relative performance

Basic Scorecard: Spidergram Example

Knowledge Economy Index Global Over Time Comparison

Strategies for Knowledge Economies

Part II: The Search For Talent and Skills Source: The Economist, October 2006

Growth in World Trade in Manufactures - by level of technology of traded goods

Growing Demand for Scientists and Engineers Science, technology, and innovation have taken center stage in efforts to boost economic growth and improve social well- being. Demand for HR in science and engineering (S&E) has increased in OECD countries: Workers in professional occupations related to S&E are now between 25% and 35% of total employment

Source: Education at a Glance 2007 Net Education Enrollment Rate (%) Ages (2005)

Source: World Bank Edstats database ( Graduates in Engineering, Manufacturing, Construction (% of total tertiary graduates, Average) ©Knowledge for Development, WBI

Source: Autor, Levy, and Murnane (2003) “The Skill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics. Changes in Job Task-Skill Demands in the US: 1960–98

Source: International Labor Office. March "Portability of Skills." Geneva. Competencies for the 21 st century

Educating S&E for the Global Workplace S&E students need to have broad skills and know-how, be flexible and mobile, and be able to work internationally Challenge for promoting global S&E excellence is to link education to practice. What is needed is to:  Develop global competence as a key qualification of S&E graduates  Enhance flexibility: competencies not only in engineering, but also business, management, finance skills  Strengthen transnational mobility of students, researchers, and professionals  Create partnerships, esp. linking science/engineering education to professional practice Capabilities required by global S&E are therefore entrepreneurial capabilities, relationship capabilities, and change management capabilities. Source: Global Engineering Excellence Study, 2007

Part III: Adjusting Education and Learning Systems for the Knowledge Economy

Education: Fundamental Enabler of the KE Societal Organizational Individual Knowledge Economy Knowledge Organizations Knowledge Workers - Basic Education - Post Basic Education - R&D and Applied Research - Human Resource Dev. - Research and Innovation Capabilities - Life Long Learning

Address first generation challenges: access, equity, quality, gender balance Adjust teaching and learning environments to respond to new competency requirements (new skills for the KE: problem solving, communications skills, team-work) Expand opportunities and build competencies in secondary education Invest in relevant and high quality tertiary education, esp. in science and engineering Improve financing of education, including clarifying roles of the public and private sectors Education Strategy: Economy Level

Engage with Public Sector to develop qualification frameworks Influence quality of human capital produced by providers, in respective skills clusters Put in place comprehensive Work Force Development Strategies Strengthen in company training for skill specific profiles Attract and retain sufficient number of researchers and experienced research project managers Education Strategy: Organization Level

Focus on the needs of young people and adults that are not part of the formal education system and on the job training Create multiple education and training pathways to acquire qualifications within a national qualification ’ s framework Provide incentives for the development of education and training providers Create certification and accreditation systems Develop appropriate funding mechanisms for firms and individuals Leverage technology: radio, TV, internet based, interactive video … Education Strategy: Individual

Learning Systems Formal Learning 80 AGE 0 AGE Informal Learning Non-Formal Learning Adopting comprehensive lifelong learning policies

Implementing Change in Education: Key Levers Key Levers Governance Financing Quality Assurance Teachers Management ICT Transforming the Role of the State Forging Alliances and Partnerships Leveraging Technology & Innovation

Transforming the Role of the State Shift the role of government from controller and provider to facilitator and quality guarantor Use incentives to address market gaps Focuses on quality through certification, accreditation and through the participation into international benchmarking exercises Provide information for all stakeholders on market needs, quality of providers, quality of students

Forging Alliances and Partnerships and Press & Parliamentarians Public Private Partnerships Partnerships with NGOs Diaspora Networks

Leveraging Technology and Innovation ICT for Managing Education Systems ICT for Business Transactions in Education ICT for Libraries and Knowledge Resources ICT for Teaching

Capacity of countries to perform in the KE depends critically on the availability of highly skilled, innovative, and flexible human resources, especially in the area of science and engineering Adjusting education and learning systems for the KE requires sustained investments and strategic and systemic interventions It also requires a new partnership between the government, the private sector and civil society What is most needed is a different type of leadership, and capacity development across the various education and learning systems Conclusions