open education
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04/12/23 1
Open Education and the Open Knowledge Economy
Michael A. PetersUniversity of Illinois at Urbana-Champaign
04/12/23 2
The Knowledge Revolution
Seven key elements of “Knowledge Revolution”
Increased codification of knowledge and development of new technologies
Closer links with science base/increased rate of innovation/shorter product life cycles
Increased importance of education & up-skilling of labor force, and life-long learning
Investment in Intangibles (R&D,education, software) greater than Investments in Fixed Capital in OECD
04/12/23 3
The Knowledge Revolution -2
Greater value added now comes from investment in intangibles such as branding, marketing, distribution, information management
Innovation and productivity increase more important in competitiveness & GDP growth
Increased Globalization and Competition
Trade/GDP from 38% in 1990 to 57% in 2001
Value added by TNCs 27% of global GDP
Constant Change and Competition Implies Need for Constant Restructuring and Upgrading
04/12/23 4
Enhancing contributions of public research
Old model: Funding basic research
Government funding of basic research, often though institutional funding (i.e., block grants).
Universities have autonomy in setting research objectives
New model: Governing the science system
Link government funding to social and economic objectives Priority-setting New funding
Universities accountable for research spending and results Competitive awards Evaluation (ex-ante, ex-
post). Encourage multi-disciplinary
research and links to industry Centres of excellence Public/private partnerships
04/12/23 5
Baseline qualifications – A world of change Approximated by the percentage of persons with ISCED 3 qualfication born in the period shown below (2004)
0
10
20
30
40
50
60
70
80
90
100U
nite
d S
tate
s
Cze
ch R
epub
lic
Sw
itze
rlan
d
Ger
man
y
Nor
way
Den
mar
k
Can
ada
Sw
eden
Aus
tria
Jap
an
New
Zea
land
Slo
vak
Rep
ublic
Uni
ted K
ingd
om
Fin
land
Net
her
land
s
Hun
gary
Luxem
bou
rg
Aus
tral
ia
Fra
nce
Icel
and
Bel
gium
Pola
nd
Irel
and
Kor
ea
Gre
ece
Ital
y
Spa
in
Tur
key
Mex
ico
Port
ugal
1940-49 1950-59 1960-69 1970-79
04/12/23 6
Growth in university-level qualifications - Approximated by the percentage of persons with ISCED 5A/6 qualfication born in the period shown below (2004)
0
10
20
30
Uni
ted
Sta
tes
Net
herl
ands
Den
mar
k
Nor
way
Can
ada
Sw
eden
Icel
and
Aus
tral
ia
Sw
itze
rlan
d
Uni
ted
Kin
gdom
Fin
land
Ger
man
y
Jap
an1
Fra
nce
Irel
and
Spa
in
New
Zea
land
Luxe
mbou
rg
Slo
vak
Rep
ublic
Kor
ea
Gre
ece
Bel
gium
Mex
ico
Aus
tria
OECD
ave
rage
EU
19 av
erag
e
1940-49 1950-59 1960-69 1970-79
04/12/23 7
The earnings advantage of education- Relative earnings of 25-64-year-olds with income from employment (upper secondary education=100)
60
80
100
120
140
160
180
200
220
240A
ustr
alia
Belg
ium
Can
ada
Czech
Repub
lic
Denm
ark
Fin
land
Fra
nce
Germ
any
Hun
gar
y
Ire
land
Ita
ly
Kor
ea
Lux
em
bou
rg
Neth
erl
ands
New
Zeal
and
Nor
way
Pola
nd
Spai
n
Sw
eden
Sw
itzerl
and
Uni
ted K
ingdom
Uni
ted S
tate
s
OECD
Males below upper sec Females below upper sec.
Males Tertiary-B Females Tertiary-B
Males Tertiary-A Females Tertiary A
04/12/23 8
Enhancements in human capital contribute to labour productivity growthAverage annual percentage change (1990-2000)
-2
-1
0
1
2
3
4
5
Irela
nd
Fin
land
Sw
eden
Denm
ark
Portugal
Australia
Unit
ed S
tates
Unit
ed K
ingdom
Italy
Norw
ay
Germ
any
Canada
France
Netherla
nds
New
Zeala
nd
Hours worked Level of education
Hourly GDP per efficient unit of labour Labour productivity
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