1. Human Resources and Innovation Workshop on Advancing Innovation: Human Resources, Education and Training 17 – 18 November 2008 Bonn, Germany Dirk Pilat Head, Science and Technology Policy Division Contact: dirk.pilat@oecd.org

2. Overview The OECD Innovation Strategy What we know about human resources for science and technology (HRST): 1.Supply and demand 2.Research careers 3.Women in science 4.The international mobility of researchers 5.Other work in DSTI Human capital and innovation Gaps and policy challenges 2

3. The OECD Innovation Strategy Ministerial Mandate from May 2007 Growing recognition that innovation: –is a key driver of growth and helps address critical global challenges –is changing rapidly, involving new actors, approaches, and countries –challenges governments to develop appropriate policies We need new approaches for more effective policies, also for human capital. 3

4. Supply and Demand of HRST 4 Many OECD countries are faced with low and declining shares of science and engineering graduates

5. Research careers are increasingly considered unattractive Declining interest in research careers: –PhDs mainly employed in universities. –Increase in doctorates has not been matched by increases in permanent academic positions; tenured positions are being replaced by non-tenured temporary positions. –Private returns from investing in an S&T research career may be too low relative to other careers. Policy issues include: –possible demand-side weaknesses –impacts of insecurity on the attractiveness of science careers; –public sector employment; and –salaries 5

6. Women remain under-represented 6 In particular in certain fields and in higher positions, women are under-represented in research relative to overall employment

7. International mobility is growing 7 Foreign talent contributes significantly to overall supply of HRST Share of foreign-born HRST aged 25-64 in EU-27 and selected countries, 2006

8. Other relevant work in DSTI Contributed to the EDU Tertiary Education Review –Enhancing the Role of Tertiary Education in Research and Innovation Improving measurement, e.g. Careers of Doctorate Holders: –Project follows the labour market, career and mobility paths of doctorate holders – data for 27 countries are expected by end-2008 8

9. But human resources in science and technology are not the same human capital for innovation… Human capital – broad range of skills, capabilities, and attributes held by individuals, teams and organisations making it possible for them to innovate Partly based on formal education but also involves the creation of firm-specific human capital via vocational or on-the-job training Many industries are skill-based without being HRST- intensive. –high levels of firm-specific skills; –inter-sectoral flows of knowledge 9

10. Innovation is changing... Non technological innovation –Organisational and marketing innovations R&D and innovation in service industries –e.g. financial services, creative industries More “open” approaches to innovation –R&D co-operation, external sourcing of knowledge, networks etc. Growing internationalisation of research –Increasing globalisation of R&D and industry-science relationships; new global players 10

11. … and requires a broad range of capabilities Skills and competencies required for innovation include: –Problem solving capabilities –Addressing growing complexity –International cooperation –Leadership –Continual updating and retraining –Networking and teamwork –… 11

12. What are the gaps… What types of skills and capabilities are required? Is there a mismatch between supply and demand? How do different organisational workplace structures shape peoples’ ability to innovate? Is social capital (trust) more important in a climate of globalisation and open innovation? Is there an optimal mobility level? How can we measure performance - we do not have good indicators on skills … 12

13. … and policy challenges? What kinds of education and training systems are needed to help foster innovation? What are the challenges for investing in human capital? Are incentives needed to strengthen private investment? How does the composition of human capital supply relate to the composition of demand? How do governments ensure policy coherence across multiple actors involved in innovation? A large agenda for work … 13