1. Skills and Innovation Roadblock or opportunity for Europe ?
Bruno Lanvin
Executive Director, INSEAD-eLab
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

2. VIIIth Knowledge Economy Forum
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

3. Skills matter to global competitiveness
Eighty-four percent of the variation in the WEF Global Competitiveness Index is accounted for by the eSkills Readiness Index
GCI average: 4.22
WEF Global Competitiveness Index (GCI)
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Global Competitive Index (GCI)
R squared: i.e., eSkills Readiness explains 84 percent of the Global Competitiveness Index
Predicted GCI = eSRI*
In general, if a country’s eSkills Readiness Index is below average, then it is also has a below average Global Competitiveness Index.
Predicted
Actual
eSRI average: 3.92
INSEAD eLab eSkills Readiness Index 2008 (eSRI)
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

4. Skill needs for a sustainable development in Europe
Talents for the Global Knowledge Economy C
Occupational skills B-
Literacy & Basic Skills
(Math, Science, IT Literacy) B
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

5. Europe’s Skill Challenge: Uneven but Widespread
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

6. VIIIth Knowledge Economy Forum
Availability of scientists and engineers R
Countries
Index 4
India
5.92 7
France
5.68 12
USA
5.60 16
Germany
5.44 17
Belgium
5.34 45
Spain
4.71 49
Italy
4.59 67
Estonia
4.33 77
China
4.16 81
Luxemburg
4.06 91
Slovenia
3.85
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

7. VIIIth Knowledge Economy Forum
Quality of maths and science education R
Countries
Index 1
Singapore
6.34 2
Belgium
6.29 6
France
5.71 11
India
5.38 14
Netherlands
5.27 43
USA
4.54 55
China
4.38 57
Italy
4.27 66
Spain
3.93 89
Portugal
3.43
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

8. VIIIth Knowledge Economy Forum
Innovation and education in the
world’s top 15 knowledge economies
Quality of
education
NZ (21)
DK (1) 1
FIN (4)
NOR (10)
(NRI ranking in brackets)
AUS (15) 5
ICE (8)
SWE (2)
NED (6)
CAN (11)
IRE (21) 10
UK (9)
USA (6) 15 20
GER (16)
AUT (17) 25 30
SUI (5)
Innovation
performance 30 25 20 15 10 5 1
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

9. Two post-crisis scenarios
overall demand
& skills supply
Market/skills demand
With European Skills Pact
Skills supply D
Skills shortage
Without European Skills Pact
time
pre-crisis
crisis
post-crisis
© INSEAD eLab 2009 – Source : INSEAD/eLab database and research
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

10. VIIIth Knowledge Economy Forum
The way forward
    prevent talent drain during the crisis
    more maths & science
    seize the cleantech opportunity
    enhance openess and mobility 
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

11. A European Skills Pact (1/2)
Action 1
Launch public-private alliance to ensure re-skilling of excess labour during crisis
Re-focus European Structural Funds earmarked for training towards the sectors most likely to contribute to Europe’s post-crisis competitiveness
Identify and scale-up successful public-private initiatives to stimulate young people’s interest for mathematics, science, engineering, ICT and cleantech
Action 2
Action 3
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

12. A European Skills Pact (2/2)
Action 4
Business universities partnerships to generate the ‘Global Knowledge Economy’ skills which Europe needs
Encourage skills mobility within Europe, as well as between Europe and other parts of the world
Foster innovative approaches to education (e-learning e.g.)
Action 5
Action 6
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

13. VIIIth Knowledge Economy Forum
The European Skills Pact Edifice
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum

14. VIIIth Knowledge Economy Forum
Thank you for your attention
Fontainebleau, 30 April 2009
VIIIth Knowledge Economy Forum