KnowledgeEconomyNetworkKEN Bulletin

Issue 11, Vol IINovember 2012

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www.knowledge-economy.net

Secretariat services provided by Slovenian Business & Research Association

KEN Chair: Boris Cizelj

KEN Vice-Chair: Thomas Friis Konst

Executive Editor: Bostjan Sinkovecsinkovec@knowledge-economy.nettel: +32 (0)2 645 19 15fax: +32 (0)2 645 19 17

Avenue Lloyd George 61000, BrusselsBelgium

Knowledge Economy NetworkInternational Advisory Board

Prof.dr.Howard Alper, Chairman Michael Azodanloo Prof.dr.Dinnah Bennett OBEProf.dr.Erhard BusekMehmet GökgözProf.Daniel GuéguenDr.Martin GrabertPeter Jungen Prof.dr.Ramesh Mashelkar Prof.dr.Metka StareProf.dr. Małgorzata RochońRoger Ryberg William Adam – Senior Adviser (ex officio) Olivier Bruslé – Adviser (ex officio)Boris Šavle – Secretary

Dear KEN Members,

On 24 October a Conference/Workshop was organized with KEN Partner the Inter-national Center for promotion of Enterprise, ICPE in Ljubljana, Slovenia. The topic was “The Benefits and Challenges of Public Private Partnerships for improving Energy Efficiency”.

The full-day event was attended by over 60 participants, from 9 countries and sev-eral international organisations (OECD, EIB, EBRD, EC), and the quality of presenta-tions and recommendations confirmed the relevance of the topic for developing knowledge economies around the globe.

It has been agreed that Public Private Partnerships (PPP) carry great potential and should be practiced more broadly in many domains, beyond the conventional sectors of transport, energy and ICT. Particularly during the times of economic and financial crisis, the model of PPP offers an optimal combination of public and private assets, including knowledge, financial resources and experience. As you could read in the last KEN Brief, PPP offers important advantages and benefits, but can perform to the optimum only if certain – rather demanding – conditions are met. Primarily, public authorities need to make a strategic decision in which domains and in which of the specific forms (OM, DBOT, BOT, BTO, BOO or con-cession) they want to develop this complex partnership. This implies a long term legal and political commitment, which offers to the private sector solid guaran-ties that authorities will be a reliable partner for the next 20-30-40 years. Equally important, the private sector needs to perceive its legitimate profit expectations with ability and readiness to provide the respective quality service to the public. On this basis partnership serves the interests of both sides, and gives the best pos-sible service to the public – it can be a win-win-win!!

In order to facilitate learning from past good practice, as well as from unnecessary mistakes, KEN & ICPE (themselves a good case of partnership) have decided to organize similar workshops in other countries and regions – several have already expressed interest.

Recommendations from the Conference/Workshop will be edited shortly to be disseminated to the broader list of KEN Secretariat (over 10,000 knowledge or-ganisations around the world) to encourage and motivate decision makers and stakeholders to look into the potential of PPP, and benefit from its advantages. The usual Bibliography and Analytical Compendium are accessible at KEN Web-site.

On Wednesday 7 November KEN Secretariat is co-organising another conference in Ljubljana, with several partners, including ICPE, this time on the role of non-technological innovation. It will be focused on Slovenia, where the Government has just adopted new implementation rules for innovation support. This morning event will bring together some 50-60 stakeholders and policy-makers sharing in-terest how to boost knowledge economy through better recognition, support, and more effective dissemination of non-technological innovation.

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Besides the ministries, responsible for economy, and higher education and science, the event is co-organised by the Economic Chamber, Ljubljana University, Technological Innovation Agency, and VIBACOM, a company specialized in supporting corporate non-technological innovation. For the occasion KEN Secretariat has compiled a select bib-liography with web links – attached as annex to this Bulletin.

In global comparison of its overall innovative per-formance the EU remains behind US, Japan and Korea, but is still ahead of Canada, Australia, Rus-sia, China, India, and South Africa. While the gap with US and Japan is gradually being reduced, the opposite is happening vis-à-vis Korea. Though not so large, the gap with Canada and Australia contin-ues to rise in favour of EU, while the gap with other major global competitors – much larger in size – re-mains more or less unchanged.

According to the 2012 EU Innovation Scoreboard Slovenia is recognized to have advanced since 2008 in terms of innovation performance from position 14 to position 12, among the EU-27 member states. When broken down into key categories of innova-tion factors, the group of Innovation Followers (second among 4 groups of EU-27) are character-ized by relatively favourable ranking in human capi-tal, research systems, linkages and entrepreneur-ship, and economic effects. Less favourable is the group of followers in: firm investment, finance and

support, intellectual assets, and innovators. Slove-nia is facing the biggest challenges in categories: innovators, intellectual assets, and in the research system.

Generally, Slovenia is facing an imbalance between innovation inputs and outputs. On one hand, the gross expenditure on R&D has exceeded 2% of GDP (over half of it from the private sector), and ter-tiary graduates represent 30% of 25-34 generation (OECD average is 38%). On the other hand, Slove-nian ranking among EU-27 is: No.5 in new to mar-ket and new to firm innovations; No.7 in share of medium and Hi-Tech products in total product ex-ports; but only No.19 in revenue from licences from abroad, and even No.24 in share of knowledge-in-tensive services in total service exports.

Obviously, lots of challenges to address in the drive to make Slovenia a knowledge economy with sup-port of non-technological innovation. As the nature of modern innovation processes is very different from the classical, linear model, it is going to be beneficial to discover all the potential of new op-portunities to support competitiveness through service innovation. This will be facilitated by pre-senting also some good practice, and learn from the results of a recent research project on Euro-pean experience in service innovation, coordinated by Fraunhofer Institute for Systems and Innovation Research from Karlsruhe. We’ll report about the outcome of the conference in the next Bulletin.

Dr. Boris Cizelj

Editor

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Table of Contents 3

Knowledge Economy Developments 4

Article of the Month 12

Recently published documents 20

Upcoming events 23

Relevant indicators, statistics and graphs 32

Annex 1: Select bibliography on non-technological innovation 36

Table of Contents

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Knowledge worth more than minerals

Prime Minister Julia Gillard says knowledge and technology skills will be worth more to Australia than mineral resources in the 21st century. “The commodity most precious in the 21st century, more valuable even than iron ore, is knowledge,” Ms Gillard told the forum attended by 40 industry representatives in Sydney.

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The Article

Knowledge Economy Developments News in Brief - as reported by the world media

Nigeria can learn from South Korea

South Korea’s sustained growth rate, according to industry experts, is due to its strategic use of knowledge for development. According to them, South Korea consistently grew for four decades. In 2050 Korea’s GDP per capita is expected to be very close to the one in UK and France.

Nigeria can learn from South Korea. In terms of in-novation, Korea invested heavily in R&D, from years of assimilation and imitation technologies. What-ever strategy Nigeria formulates, it must involve the private sector.

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The Article

Service innovation opens new markets in Asia

Success in service innovation depends on an inten-sive dialogue between client and service provider and solid in-depth market knowledge. In this con-text, it is important to properly and objectively evaluate the development of services in individual Asian countries as standards vary greatly. While Japan, Singapore and Taiwan are the leaders and while Malaysia and China are placed in the mid-

field, there are substantial laggards like Myanmar and the Philippines. Through increased economic integration of Asia improvements can be achieved by stimulating competition and ambitions amongst the Asians themselves. By this, the advanced ser-vice economies will feel the heat of the chasers and the laggards can be enticed to improve by the pro-gress they see in the more advanced economies in their neighborhood.

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The Article

Colleges and universities to create a workforce “for a vibrant knowledge-based economy

Clemson University board chairman David Wilkins declared that South Carolina’s colleges and univer-sities are rising to the challenge to create a work-force “for a vibrant knowledge-based economy.” A panelist at the Governor’s Public Higher Education Conference with lawmakers, business leaders and university representatives, Wilkins said the state has invested significantly in programs to keep top students in the state and build economic clusters.

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The News

Public policy studies – A discipline whose time has come

Despite a global focus on Asia’s economic growth and the need to develop talent for emerging indus-tries and the knowledge economy, the importance of developing the skills to govern these econo-mies is often overlooked. But Kishore Mahbubani, founding dean of the Lee Kuan Yew School of Public Policy (LKY) at the National University of Singapore,

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Knowledge Clusters in the Automotive Industry

The automobile is the most complex item most consumers will ever purchase. Correspondingly, the automotive industry, originally created by in-ventors, remains an industry that uses cutting-edge innovation and demands constant creativity and high-technology inputs. Industry adoption of new vehicle technologies relating to emissions, vehicle electronics, connectivity, fuel economy, and safety, represents opportunities for companies located near knowledge centers to take advantage of the innovation synergies inherent in these clusters.

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The Article

For developing nations to fully develop, access to global knowledge is critical

At the recent Caribbean Information and Com-munications Technology (ICT) Roadshow Innova-tion and Investment Forum in Barbados, Senator Haynesley Benn addressed the importance that ac-cess to global knowledge has had in three of the most economically successful nations in the devel-oping world. “If we look across the world, a num-ber of developing countries such as Korea, China and Singapore have successfully used innovation

believes public policy studies is being recognized as a discipline whose time has come – not just to train people to serve their countries, but also to solve global problems. The Western financial crisis has underlined its importance. “When the chips were down and banks began to fail all over the place, only governments could come in and rescue the global financial system,” Mahbubani argues. “One of the key lessons from the financial crisis is that public goods are essential to keep societies in good shape.

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The Article

to become the economic force they are today and to sustain their economic and social development,” said Benn, who is also the Barbadian minister of commerce. “These countries have been able to tap global knowledge and innovate by absorbing the knowledge gained.”

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The Article

Nobel Laureats’ Letter on Funding Science for EU’s future

Back in 2000, the EU heads of state and govern-ment set themselves the target of making EU the “world’s most dynamic knowledge-based economy by 2010”. The intention was ambitious and noble, but the goal has yet to be achieved. Science can help us find answers to many of the pressing prob-lems facing us at this time: new ways to harness energy, new forms of production and products, improved ways to understand how societies func-tion and how we might order them better. We are just at the start of a revolutionary understanding of how our own bodies work, with incalculable conse-quences for our future health and longevity, Nobel Prize and Fields Medal Winners wrote to heads of state or government and presidents of EU member states.

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The Letter

Redwood Coast, California injecting life into local economy

“We’re seeing real indications of a 10-year renewal, and we’re continuing to diversify our industry mix,” says Kathy Moxon, director of Redwood Coast Rural Action, a group founded in 2002 to bring together a network of leaders from across the region who have developed a targeted agenda for expanding the region’s economy. RCRA started with basic in-frastructure, building on the work other groups had started by focusing on increasing broadband

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The shepherds of knowledge

What is to become of librarians, the Shepherds of Knowledge, in terabyte times when information is drifting away into “clouds”? Are our days of lei-surely grazing among library shelves destined to give way to dependence on impersonal servers that sling whatever we think we want read into our Kin-dles, iPads and iPhones without purpose or com-ment, asks Stan Thompson, a retired strategic plan-ner and environmental futurist for AT&T.

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The Article

access across the region’s four mountain counties and improving transportation options for a popula-tion spread out over almost 11,000 square miles. From architects and engineers to consulting firms on environmental restoration and tech outfits with expertise on water systems, the region has seen a boom over the last decade in the knowledge sec-tor. There are nearly 2,500 management and in-novation services jobs in the region today—about 70 percent as many people employed in its entire forest industry. Manufacturing is even picking up, with a range of new companies building products to support businesses in markets from hydropon-ics to solar-based artificial growing systems. These new economy jobs are driving up salaries and changing the face of the region. The rural north has seen 37 percent job growth in six industries identi-fied as targets of opportunity, ranging from health care and specialty foods to building and systems construction. This compares to a 4 percent rate of growth for the rest of the region’s economy.

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The Article

The divergent paths of Ghana and Malaysia

The postmodernist interpretation of the Ghana-Malaysia comparison reveals that differences in the development of Malaysia and Ghana are attribut-able, mostly, to one fundamental factor: the knowl-edge economy, which was being promoted in Ma-laysia, but not in Ghana. As the Economics Nobel Prize winner Robert Solow averred on the theory of economic growth, efficient technologies increase productivity, lessen production costs, and promote quality, competitiveness and innovation, leading to a surge in growth. The same is true on the educa-tion front. By injecting technology into the training environment, efficiency is accelerated in the deliv-ery chain, the quality of training is increased, and technology transfer is promoted. The success of chaebol, a South Korean form of business conglom-erate, business in global capitalism bears testimony to this.

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The Article

Working abroad can bring rewards of global economy

According to consulting firm PricewaterhouseCoop-ers, the number of employees working on interna-tional assignment outside their home country has grown by 25 percent in the last decade and by 2020 they predict an additional 50 percent increase. Global consultant Michelle Randall, author of “Cul-tural Profit: Vastly Accelerating Bottom Line Re-sults for High Growth Global Companies,” reflects the consensus of talent managers when she notes that “employees at every level within an organiza-tion (need) cross-cultural fluency.” She notes that cross-cultural competency isn’t just important for employees working for multinationals. “Go to your local Target and you’ll find that there is a culturally plural work force speaking at least two languages. This has huge hiring, work force and management implications.” Whether you are at the start of you career, mid-career or looking for a second career, cultural competency is essential.

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The Article

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Women contribute to the economy vastly more than what most people recognize

Over time, globalization has been reshaping the rel-ative roles of women and men in economic life. The globalization process has brought about greater worker mobility and widened employment oppor-tunities. Accompanying this is a growing propor-tion of women workers in nonstandard work such as temporary, casual, multiple, contract and home-based employment. Thus, while globalization is raising the quantity of women’s contribution to economic life through the labor force, the quality of their participation needs serious consideration.

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The Article

India ranked at 115 on women empowerment scale

India has been ranked at a poor 115 by a global sur-vey which looked into the level of economical em-powerment of women in 128 countries. The list was topped by Australia and followed by three Scandi-navian countries; Norway, Sweden and Finland. At the bottom of the list were Yemen, Pakistan, Sudan and Chad.

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The Article

Number of women in science and tech low in leading economies

The number of women in the science, technology and innovation fields are notably low in the world’s leading economies and on the decline in others, and greater access to education is not the sole solution, results of a new study suggest. In most countries, women make up fewer than 30pc of students in degree programmes for these subjects. In addition, the number of women actually working in these fields is declining across the board. Even in coun-tries where more women are studying science and technology, it has not translated into more women in the workplace. “These economies are operating under the existing paradigm that if we give girls and women greater access to education they will even-tually gain parity with men in these fields,” Sophia Huyer, the lead researcher and founding executive director of Women in Global Science & Technology, said in a statement.

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The Article

Growing needs of the elderly must be addressed

“China has the largest population in the world and it is the only country in the world with close to 200 million people aged 60 or over,” Arie Hoekman, the UN Population Fund’s China representative, said in an interview. Aging populations are a significant as-pect of the 21st century and have important and far-reaching implications for all sectors of society, he said.

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The Article

How to create the next ‘long boom’?

Economists from both sides of the Atlantic found cause for guarded optimism on the global econ-omy at the inaugural USC Global Conversation in London. With a theme, “The Future of the Global Economy,” that at least presupposed its continued existence, speakers pointed to growth in develop-ing countries and in a global knowledge economy as reasons for a rosier outlook.

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The Article

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Mid-market entrepreneurs the backbone of economic growth

Mid-market entrepreneurs, a group that has often flown under the radar, are finally getting their due as economists and investors take note of the criti-cal role they play in supporting Canada’s economic growth. “Each market and business is different. But lenders such as Roynat Capital are definitely open for business when it comes to mid-market opera-tors,” says Rania Llewellyn, President and CEO of Roynat Capital.”In Western Canada especially, it’s a crucial, dynamic and diverse sector that is compet-ing on a global scale.”

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The Article

Governance-industry link key to economic growth

There is a need to redefine the relationship be-tween governance and industry so that economic growth is achieved. The industry has to factor in the fractured policy in its growth strategies, said Maharashtra Chief Minister Prithviraj Chavan. He was delivering his inaugural address at the All In-dia Management Association (AIMA) 39th National Management Convention. Chavan highlighted the Centre’s steps to boost business confidence de-spite political challenges and said that more re-forms would be announced soon. He argued that India cannot become a great economy by relying on its scarce natural resources, “India has to be a knowledge economy to have sustainable high eco-nomic growth,” he said. He warned that until Indian companies become innovators and created original products for the global markets, India would only provide labour to the international markets, includ-ing the management and engineering labour.

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The Article

Knowledge platform for agricultural sector launched

Two Zimbabwean organisations, Knowledge Trans-fer Africa and Afrosoft Holdings, have launched an interactive electronic knowledge sharing platform for the agriculture sector. Known as eMkambo, the platform is a mobile and web-based facility inte-grating the use of mobile phones and the internet to share information and knowledge as well as con-duct agro-focused transactions.

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The Article

Silicon Valley and the U.S. can bring back manufacturing

Silicon Valley is home to the world’s greatest tech-nology companies, universities, advanced research laboratories and talent pool, all contained in a 50-mile radius. With its differentiated environment and leadership in innovation, the disruptive ideas and cutting-edge technologies coming out of the Valley have changed the world, fueled the global economy and greatly benefited society at large.

Today, most of the great ideas and innovations still originate in the Valley, but the majority of finished products are manufactured by outsourcing. For ex-ample, engineers in Silicon Valley invent and design chips for a vast array of devices, but those chips -- billions each year -- are mostly fabricated by global partners abroad. But what if the entire chip, not just its design, could be created right here in the United States? This reinvigoration of high-tech manufac-turing would be a game changer for our economy, writes Weili Dai, co-founder of Marvell Technology Group.

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The Article

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British Columbia underrated for start-ups

Ryan Holmes, founder of Invoke and the CEO of HootSuite, one of British Columbia’s fastest-grow-ing start-ups, made something of a revelation at a recent presentation at the Beedie School of Busi-ness. He told the students how early investors urged him to move his company to the Silicon Val-ley — where it would be plugged into a bigger pool of talent and venture capital, and a more robust environment for start-ups. That Holmes has cho-sen strategically to remain in Vancouver — Invoke now employs over 200 individuals and continues to grow rapidly — is important because it is to some extent unusual. Over the past few months a num-ber of studies have been released, each one point-ing to a serious innovation gap in this country — one that is leaving Canada as a mid-level player in the new knowledge-based economy.

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The Article

Creative England: The First Year

John Newbigin, Chair of Creative England assesses the first year of operation and notes that the outfit

Higher education is an investment that pays off

Higher education is expensive, challenging, and time consuming, but ultimately it’s an investment that pays off in today’s knowledge-based econo-my. On average, those with bachelor’s degrees or higher earn more and enjoy far more job security than workers with only high school or even asso-ciate’s degrees, according to several national and local studies. And the demand for highly educated workers is only expected to grow in coming years as US and Massachusetts companies increasingly demand brains over brawn when it comes to job skills, economists and other workforce experts say.

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The Article

Canada needs Patent Protection in EU Deal

Having thrown everything at the wall and with nothing sticking, those opposed to the Canada-EU Comprehensive Economic and Trade Agreement (CETA) have turned their focus to its intellectual-property chapter. Specifically, they oppose EU de-mands that protection for research-based pharma-ceutical products be strengthened through longer patent-protection terms and stronger data protec-tion. Their argument is based on a 2011 study com-missioned by the Canadian generic-drug lobby that claims the EU approach would increase Canadian drug prices by $2.8-billion per year. The study, which does not appear to have been peer-reviewed, has a number of holes, writes Jason Langrish, executive director of the Canada Europe Roundtable for Busi-ness.

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The Article

Untangling the red tape

Tony Clement, president of the Treasury Board of Canada, visited a small distribution company in Mississauga, Ontario to announced Ottawa’s plan to cut red tape for businesses in Canada. The new program, called the “Red Tape Reduction Action Plan”, will see Ottawa implement six systemic re-forms and 90 department-specific reforms that were recommended by the government’s Red Tape Reduction Commission in January.

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The Interview

has worked with more than 500 companies so far. The BFI has confidently titled its three-year strategy ‘Film Forever’ and a recent Oxford Economics re-port tells us that the film industry is now contribut-ing more than £4bn a year to the British economy.

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The Article

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Government of Canada Announces Investments in Research Innovation

The Honourable Gary Goodyear, Minister of State (Science and Technology), announced a signifi-cant investment by the Government of Canada in cutting-edge research infrastructure that will lead to more high-quality jobs in the knowledge and resource sectors. This investment also has the po-tential to result in new, innovative spin-off compa-nies. “Our government recognizes that investing in science and technology leads to a stronger, more innovative economy,” said Minister of State Good-year. “We understand that Canada’s research en-terprise is critical to economic growth and job crea-tion.” The $44.5-million investment through the Canada Foundation for Innovation (CFI) supports 210 research projects across the country in areas of health, agriculture and education

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The News

Brazil in need of foreign workers to boost economy

Brazi’s government has declared its desire to spur economic growth by attracting up to 10 times more foreign professionals to the country. Currently the world’s sixth largest economy, Brazil’s search for skilled labour has plateaued as businesses struggle to find qualified workers to increase their opera-tions. Ricardo Paes de Barros, head of a team on strategic initiatives at the president’s office, said, “This country has become very isolated from the rest of the world in terms of its labour markets and that is affecting our competitiveness. “We want to turn that around so Brazil will be better connected with the rest of the world in terms of transfer of knowledge.”

While in 2009 Korea, Canada, Japan and Russian federation had 55-65% of 25-34 year generation with post secondary degrees, Brazil had only 10% (OECD average 38%).

Exercising in your 70s ‘may stop brain shrinkage’

Exercising in your 70s may stop your brain from shrinking and showing the signs of ageing linked to dementia, say experts from Edinburgh University. Brain scans of 638 people past the age of retirement showed those who were most physically active had less brain shrinkage over a three-year period.

Exercise did not have to be strenuous - going for a walk several times a week sufficed, the journal Neurology says. And, surprisingly, giving the mind a workout by doing a tricky crossword had little im-pact.

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The Article

University drives Qatar’s knowledge economy

Qatar University has launched a host of new gradu-ate courses, as part of its vision to drive forwards the Gulf state to become a knowledge-based econ-omy. The Masters and PhD programmes reinforce the commitment of Qatar’s only national university to expanding its portfolio of courses at all levels. The new programmes particularly reflect Qatar’s ambition of becoming pre-eminent in fields includ-ing engineering, environmental science, healthcare and pharmacy while also preserving Arabic lan-guage, culture and identity.

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The Article

European Commission puts gender quota plan on hold

The European Commission postponed a vote on a plan to force companies to allot 40% of their board seats to women by 2020 as lawyers questioned its

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legality under EU rules.

Justice Commissioner Viviane Redding had planned to launch the initiative in Strasbourg on 23 October to tackle gender inequality on company boards but in a last-minute decision her Commission peers de-cided to delay their vote for a month.

A source in the EU executive said commissioners were jittery about approving the plan after lawyers cast doubt over its lawfulness. The official said the draft was being revised right up until the aborted vote.

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Article of the Month

Ageing Workforce. A major drawback or a goldmine for EU ?

Written By Thomas Friis Konst, KEN Vice-Chair, Dimitris Raftopoulos, LIKE Project Coordinator and Graham Smith, AMAP Project Coordinator

The problematique

Europe constitutes a territory facing constant changes in the local labour market, which dramatically affect the business, economic and social environment. Being already the oldest region in the world and, over the next 20 years, will experience a continuing rise in life expectancy, making the older workers the most impor-tant age group of active population.

Latest researches on demographic trends reveal an ageing workforce and a long-term decline of the working age population, which lead to a series of difficulties for the aged workforce.

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(Source: Eurostat, Statistics in Focus, 26/2010)

The problem tends to become even more severe when certain groups with specific social characteristics are examined. Despite its global pre-eminence in ageing terms and the priority given to ageing by the European Council, Europe still lacks a coordinated and consistent approach to face active ageing issues, while integrat-ed strategies for the ageing workforce could contribute to facilitate innovation, entrepreneurship, knowledge economy and to enhance integration and economic relations in the cooperation area, ultimately contributing to the Europe 2020 strategy objectives for smart and integrated growth.

Table 2: Change of shares of the three age groups for the different TOAs from 2001 to 2006 for EU-aggregates

(Source: Eurostat, Statistics in Focus, 26/2010)

Since the declaration of Lisbon Strategy, which stated that Europe should “become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion”, an increasing number of initiatives do concentrate on exclusion is-sues of a great number of people and workers in the European economy. Age in the workplace became the last years a worrying topic. Also, as life expectancies continue to rise, achieving longer working lives is becom-ing a common goal across Europe and features as an integral part of the Europe 2020 strategy for growth. The current low levels of labour market participation across Europe for older workers (46% of those aged 55-64) suggest there is a significant challenge here to be met. There are many factors that impact on an older person’s capacity to engage in the labour market, which include age discrimination in the work context and the challenges of combining work with family responsibilities.

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Ageing in combination with specific social characteris-tics are the main reasons for an increasing propor-tion of the aged workforce to be driven off the labour market and to be confront-ed with significant difficul-ties of re-entering and thus presenting greater risk of experiencing long-term un-employment. Since policies against age discrimination are not sufficiently sup-ported, properly formulat-ed management strategies must be implemented to adverse the current situa-tion. A new vision of ageing is required because the pre-sent dominant paradigm is now a relic of a previous socio-demographic era. The arisen age barriers in EU constitute constrains of the labour supply, econom-ic growth, potential and the sustainability of social protection systems. Conse-quently, raising labour force participation has become a pressing priority for the ter-ritory.

Additionally, issues such as the rapidly changing eco-nomic environment, the economic recession, the continuous technological breakthroughs, the “demo-graphic bomb” issue, the active labour policies promoting both the entrance of young personnel into the labour market, give emphasis on the continuous improvement of the qualifications of the younger in order to better meet the needs of the market and also the application of early exit strategies have rendered job positions of the employees aged 50+ less secure.

(Source: Eurostat, Statistics in Focus, 26/2010)

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The Current Situation

Several European countries have reach the stage where they worry about this situation and are taking in-centive measures to stimulate employment for the ageing workforce in the respect of directive 2000/78/EC, which aims at combating discrimination on the grounds of age as regards employment and occupation. On the other hand, many enterprises, particularly in a time of economic hurdles, adopt strategies which ad-versely affect older workers, through, for example, early retirement or redundancy programmes. This major concern puts Europe’s competitiveness at risk as “a range of organisations, particularly those in the public sector and in mature find it increasingly difficult to hire qualified new employees. Concretely the challenge consists in making the workplace more suitable for the ageing workforce that owns the knowledge and offer them well adapted jobs or actions and training to take advantage of their skills, while putting in place capi-talisation processes.

(Source: Eurostat, Statistics in Focus, 23/2011 June 2011)

The demographic changes Europe is facing nowadays are not distributed uniformly across EU Member States and regions. Most people over 65 live in the Western parts of the EU, although it should be noted that data are not avail-able for some areas of Eastern Europe. Looking to the future, not only will the average (me-dian) European age increase but the process of population ageing will shift eastward. For example, it is estimated that by 2040 countries such as Roma-nia will have the highest medi-an ages in Europe, while most of the Nordic and Western Eu-(Source: Eurostat, Statistics in Focus, 23/2011 June 2011)

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ropean countries will share the youngest age profiles. Those countries in Southern and Central Europe, such as Hungary and Slovakia, are likely to have above average age profiles. These differences demonstrate that a ‘one size fits all approach’ is not appropriate and therefore the future policy agendas have to become more nuanced. It also challenges the European community to ensure close collaboration and knowledge exchange between Member States (Source: Eurostat, Statistics in Focus, 23/2011 June 2011).

Furthermore, ageing depends on a wide range of different actors and cannot simply be a top-down imposi-tion by policy makers. For example, age management in enterprises to improve opportunities for older work-ers, must be largely a matter for organizations themselves. Additionally, an effective strategy for active ageing has to be based on a partnership between the citizen and society. As far as society is concerned, the policy challenge is to recognise the thread that links together all of the relevant policy areas: not only employment, but also health, social protection, social inclusion, education and so on. A comprehensive active ageing strat-egy demands that all of them are ‘joined up’ and become mutually supportive: creating a true ‘Society for all Ages’ as expressed by the United Nations. The parallel role of the citizen is to act with responsibility to take advantage of opportunities, for example in education and training and to participate where appropriate.

The Projects

In the above framework and in order to provide solutions / suggestions on how to combat the phenomenon and change the perception that aged people have limited learning capacity and adaptation to new working models and to promote the contribution of the ageing workforce to Europe’s smart and integrated growth and Europe’s competitiveness, two projects have been identified that work in that direction, funded by the European Commission and more in detail by Education, Audiovisual and Culture Executive Agency’s Lifelong Learning Programme (LLP). More in detail, these projects are “LIKE - Learning through Innovative manage-ment concepts to ensure transfer of Knowledge of Elderly people | 517619-LLP-1-2011-1-GR-GRUNDTVIG-GMP” and “AMaP–Age Management in Practice: Improving Access to VET/CVET for Older Workers across Europe |518590-LLP-1-2011-1-UK-LEONARDO-LNW”, both have been invited to be part of the Best Practice Exhibition during the major European Conference, organized by European Commission’s Directorate-General for Education and Culture in Brussels on 19-21 November, 2012.

LIKE - Learning through Innovative management concepts to ensure transfer of Knowledge of Elderly people

Aim

The main objectives of the project are to develop new approaches for combating age barriers in employment; to promote the adaptability of the older workforce to the changing business environment; to enhance age management business concepts in favour of the participation, perfor-mance and productivity of the ageing workforce and the transfer of their knowledge; to support new objectives regarding age management policies in order to meet Europe’s future demographic needs.

Target Group

During the project the following group categories, in each of the participating countries, will be targeted:

ͷ Aged workers and aged unemployed (over the age of 50) ͷ Employers, SMEs

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ͷ National Agencies involved in Vocational Education and Training and Continuous Vocational Educa-tion and Training (VET/CVET)

ͷ Employment Services ͷ Social Partners ͷ Policy makers at a local, regional, National & European level ͷ Training providers, Educational Institutions and Lifelong Learning Institutes

Contribution of the project to intergenerational learning through ICT

The project mainly focuses on transferring knowledge, methods and good practices for senior citizen educa-tion; equipping senior citizens with the skills that they need in order to cope with change and remain active in society; strengthening the contribution of older people to the learning of others, especially young adults.

The project will examine how innovative approaches can generate Management Concepts and theories based on the use of ICT to answer the urgent European situation made out of low employment of older workers, shortage of critical skills and decline of birth rate. To do so, it will develop and test innovative teaching & learning approaches & partnerships with enterprises with two interconnected scopes: a) encoding of tacit knowledge of aged workers to ensure the transfer of their knowledge to younger generations, b) training of aged workers from younger population in the use of ICT tools to achieve the first scope. This will be imple-mented with the use of well-adapted and designed multimedia tools that offer new and better opportunities to workers who are at risk of digital exclusion. In particular, through specific training seminars for employed and unemployed 50+, the ageing workforce will update their skills and transversal competences, while, at the same time, the workplace will be used as the setting to acquire key competences and develop innovative approaches to upgrade skills of both younger and older workers within enterprises, as distinct from their spe-cific vocational competence. Finally, through activities aimed at sensitising Human Resources managers and employers to the benefits they can gain from their older workforce, older workers will have the opportunity to turn their knowledge into training modules for younger generations, as corporations will realise the value they represent, using the digital competences they have acquired.

Expected results

ͷ Reports to define ageing and employment trends in EU ͷ Development of an Age Management business concept Model ͷ Pilot testing of the Model in enterprises, including training modules and seminars using ICT tools, and

its evaluation ͷ Awareness raising activities for sensitising entrepreneurs, HR managers and the aged workforce

Website of the project: http://like.lllprojects.eu/

“AMaP–Age Management in Practice: Improving Access to VET/CVET for Older Workers across Europe”

Background

While there has been an improvement over recent years in fertility rates, it has done little to offset the ageing of Europe’s population through continued increases in life expectancy, highlighting the considerable

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improvements in living conditions over the past two generations. This changing demographic situation has been well documented in recent years and greater focus has been turned to the employability of older workers. Governments across Europe have introduced policies to ensure that social security and pension systems remain sustainable in years to come. To achieve this, many have started the process of increasing state pension ages, encouraging, or forcing in some cases, individuals to work longer. As a result, we are beginning to see increasing numbers of older workers in the labour market than ever before. Figure 1, below, shows a great deal of diversity across Member States with only 13% of Hungarian 60-64 year olds employed in 2010 compared with 60% in Sweden. All countries with the exception of Romania and Portugal saw an increase in the employment rate of workers aged 55-59, while Greece, Poland, Portugal and Romania all experienced a decline in employment rates for 60-64 year olds.

Figure 1: (Generally) rising employment rates of older workers (55-59 and 60-64), 2000 – 2010

Source, Eurofound/Eurostat Labour Force Survey

The Challenge

While this data presents a picture of increasing employment among older workers, a key challenge facing both individuals, and organisations, is ensuring that they remain productive as they get older. Skills invest-ment is therefore an important aspect of supporting older workers to remain competitive in the labour. Training and re-training older workers is a crucial factor of their employment. Whereas, historically, training and skills development has been considerably lower for older workers than for younger ones, it is crucial for employers to invest. The underlying assumption among employers in the past has been that the employ-ment trajectories for younger workers is much longer and therefore brings a greater return on training invest-ment. Changing this mind-set is a challenge, however, evidence suggests that over the last 15 years the gap has narrowed because organisations have invested in their older workforce and recognise the human capital loss would be great (Tinsley, 2012).

The problem of participation in learning still persists. Schuller and Watson (2010) show that, across the four life stages, participation in any type of learning reduces significantly.

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Table 1: Current or recent participation in learning across the four life stages, 2008

Age 18 – 24 25 – 49 50 – 74 75+Percentage participation 65% 45% 27% 11%

Source: NIACE Adult Participation in Learning Survey, 2008 in Schuller and Watson (2009: 101)

When introducing the notion of Vocational Education and Training (VET), the gap widens even further with disproportionate numbers of younger people accessing and benefiting from VET than older adults (Cedefop, 2010).

Aims of the project

The Age Management in Practice (AMaP) project is a collaborative partnership involving organisations from Germany, Greece, Poland, Portugal, Sweden and the UK. AMaP aims to address the challenge around access to, and participation in, Continuing Vocational Education and Training (CVET) among older workers aged 50+, and to increase awareness of the European Qualification Framework (EQF). The project also considers the challenge of an ageing workforce through the lens of employers, seeking current views and attitudes towards older workers and promotes the implementation of age management practices.

Objectives

(1) Develop a learner engagement model for older workers aged 50+

(2) Improve knowledge and awareness among older workers of the European Qualification Framework (EQF)

(3) Conduct an employer’s survey to measure awareness of the ageing workforce and attitudes towards older workers

(4) Organise seminars for employers on age management and create a DVD of employer views

(5) Disseminate project findings through a final conference in Berlin, October 2013

Website: http://www.a-map.eu/

References

Cedefop (2010) Older Worker’s Training: Low, but why?: http://www.cedefop.europa.eu/EN/articles/16495.aspx

Eurofound - The European Foundation for the Improvement of Living and Working Conditions (2012) Employment trends and poli-cies for older workers in the recession, Luxembourg, Publications Office.

Schuller, T. and Watson, D. (2009) Learning Through Life: Inquiry into the future for lifelong learning, Leicester: National Institute of Adult and Continuing Education (NIACE).

Tinsley, M. (2012) Too Much to Lose: Understanding and supporting Britain’s older workers, London: Policy Exchange.

Eurostat Website: http://ec.europa.eu/eurostat

Data on “Regional statistics” http://epp.eurostat.ec.europa.eu/portal/page/portal/region_cities/regional_statistics/data/data-base; Select “Regional demographic statistics” and “population and area”

More information about “Regional statistics” - http://epp.eurostat.ec.europa.eu/portal/page/portal/region_cities/introduction

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Issue 11, Vol IINovember 2012

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Recently published documentsTo access any of the following publications, simply click on the title or cover page of the publication. Addi-tional publications can be found on the KEN website.

IMPACT, International Finance Corporation Annual Report 2012

Sings of Competitiveness in the Americas 2012

The Global Competitiveness Report 2012–2013

Global Europe 2050

Marie Curie actions: Where innovative science becomes

successThink : act study, In-depth

knowledge for decision makers

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How to refurbish all buildings by 2050

Productive development and industrialization in Latin America

and the CaribbeanMaking it work: Tackling

worklessness through innovation

Using Knowledge Exchange for Capacity Development: What

Works in Global Practice?ICT in Education in Latin America

and the CaribbeanGlobal Assessment of Agricultural

R&D Spending

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Issue 11, Vol IINovember 2012

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Internationalization of Tertiary Education Services in Singapore University of the future

Venture capital and the employment policy of young

high-tech firms

ICT Competitiveness in Africa Science strategy 2012 – 2016

From Knowledge Worker to Knowledge Cultivator-Effective

Dynamics

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Upcoming eventsBelow you will find a selection of the most pertinent events taking place in the coming months. For more events, please visit our online interactive calendar.

recently added

International Conference on Design and Innovation 2012

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Living Labs for Innovation in eCulture

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Completing the ERA by 2014 – Boarding Time

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Belgrade International Conference on Education

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Interventions: Reflection, Critiques, Practices. The Biennial Australian Women’s and Gender Studies Conference

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Leading Knowledge Organisations

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International Conference on Sustainability, Technology and Education 2012

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Global Business, Competitiveness & Risk Planning

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The Macrotheme Winter Business Research Conference: French Alps 2013

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Relevant indicators, statistics and graphs

Average annual growth rates of renewable energy capacity and bio-fuels production, 2005-10

PwC16

Bio diesel

Ethanol production

heating

Hydro power

Geo thermal power

Concentratede solar thermal

Power

Wind power

Solar PV (Grid connected

only)

Solar PV

2010 only

Source: National Defense Research Institute

Newly registered firms per 1,000 working-age adults

2

E N T R E P R E N E U R S H I P D A T A B A S E 2 0 1 2 E N T R E P R E N E U R S H I P I N T H E W A K E O F T H E C R I S I SE N T R E P R E N E U R S H I P D A T A B A S E 2 0 1 2 E N T R E P R E N E U R S H I P I N T H E W A K E O F T H E C R I S I S

Entry density around the worldEntry density varies enormously across economies and regions. This variation stems from differ-ences in macroeconomic conditions, the ease of formal business registration, the range of legal enterprise forms, and other regulatory factors that affect the entrepreneurial environment.

On average, 4.34 new formal companies with limited liability (referred to as “firms” hereafter) are registered each year per 1,000 working-age adults in high-income economies (figure 1).1 In the developing world the average is 1.27. Among developing regions, Europe and Central Asia has the highest average entry density (2.61) and the Middle East and North Africa the lowest (0.42). Put another way, about 20,000 new firms register

each year in Belgium—which has an average entry density for high-income economies in the 2012 sample. By contrast, only about 4,000–5,000 new firms register each year in Belarus, Guatemala, and Tunisia—each of which falls in the middle of the distribution of entry density for develop-ing economies and has a working-age population similar in size to that in Belgium.

Crisis, recovery, and entrepreneurshipWith tight lending practices, depressed aggre-gate demand, and widespread uncertainty, an economic recession is a difficult time to start a business—and the data bear this out. Beginning in 2008, new firm creation dropped sharply, though by varying degrees across economies (figure 2). In general, the speed and intensity with which the crisis affected new firm cre-ation varied by income level and crisis inten-sity. Economies with higher levels of income (GDP per capita), those with highly developed financial systems (as measured by the ratio of domestic credit to GDP), and those hit the hard-est by the crisis experienced earlier and sharper contractions in new firm creation (Klapper and Love 2011b). In Ireland, for example, new firm registrations fell by 29 percent between 2007 and 2009. Indeed, in high-income economies the rate of new firm creation in 2009 was lower than it had been in 2004.

Another way to analyze the effect of the cri-sis is in terms of growth in entry density. Figure 3 shows the annual share of economies in the sample experiencing positive year-on-year growth in entry density. This method demonstrates that the impact of the crisis on entry density evident in figure 2 is not merely a case of a few large econo-mies skewing aggregate trends—but instead an adverse effect on new firm creation in the major-ity of economies.

In each year from 2005 to 2007, more than 70 percent of economies achieved positive year-on-year growth in entry density. But this trend changed dramatically with the onset of the finan-cial crisis. In 2008 just 60 percent of economies had a higher rate of new firm creation than in 2007. By 2009 the share with positive annual growth had dropped to 34 percent among the entire sample of economies—and to just 6 per-cent among high-income economies. Indeed,

Note: Entry densities are based on economy-level averages over the period 2004–11. Source: Entrepreneurship Database, 2012 edition.

1Figure Entry density by region, average, 2004–11

0

1

2

3

4

5

High-incomeeconomies

East Asia &Pacific

Europe &Central Asia

Latin America& Caribbean

Middle East& North Africa

South Asia Sub-SaharanAfrica

Newly registered firms per 1,000 working-age adults

Note: Entry densities are based on 52 economies with data available over the entire period. Source: Entrepreneurship Database, 2012 edition.

2Figure Entry density in 52 economies, 2004–11

Newly registered firms per 1,000 working-age adults

0

1

2

3

4

5

6

2004 2005 2006 2007 2008 2009 2010 2011

Low income

Lower middle income

Upper middle income

High income

Source: Entrepreneurship Database 2012

KnowledgeEconomyNetworkKEN Bulletin

Issue 11, Vol IINovember 2012

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The 10 Most Entrepreneurial Countries’ in 2012 and their Rankings in 2011

3

GMU-CEPP GEDI 2012 Launch - 1/5/2012 - The Heritage Foundation

When contrasting the ranks of the 10 most entrepreneurial countries in 2012 with their respective ranking in 2011 a large drop is observed that is likely a reflection of the deteriorating institutional conditions in the world of the wealthy. As shown in Table 1, Denmark dropped from 1st place to 5th, while Belgium rose from 12th to 8th place. Australia, which moved into the top 10 from 11th place, has become a strong performer over the years, avoiding the financial crisis, housing bubble, and the great recession. The top 10 this year is again dominated by Anglo Saxon countries (United States, Australia, Canada), Scandinavian countries (Sweden, Iceland, Denmark, and Norway), and northern Europe (Switzerland, Belgium, and the Netherlands). Taiwan tied for 10th place on the 2012 GEDI—the first Asian country among the top 10 most entrepreneurial economies in the world.

Table 1: The 10 Most Entrepreneurial Countries’ in 2012 and their Rankings in 2011

Country GEDI 2011

Rank 2011

GEDI 2012

Rank 2012

United States 0.64 3 0.60 1 Sweden 0.59 5 0.57 2 Australia 0.51 11 0.56 3 Iceland 0.57 6 0.55 4 Denmark 0.67 1 0.55 5 Canada 0.65 2 0.54 6 Switzerland 0.56 7 0.54 7 Belgium 0.50 12 0.50 8 Norway 0.53 10 0.49 9 Netherlands 0.54 8 0.48 10 Taiwan - - 0.48 10

While the levels of “necessity” entrepreneurship have increased during the great recession, deteriorating institutional conditions mean that the global potential to produce productivity-enhancing entrepreneurs has fallen worldwide. We need more high growth entrepreneurs.

The GEDI defines entrepreneurship as “a dynamic interaction of entrepreneurial attitudes, entrepreneurial action, and entrepreneurial aspiration that vary across stages of economic development.” GEDI’s three sub-indexes capture these three dimensions of entrepreneurship. The action and aspiration sub-indexes (outlined below) capture actual entrepreneurship action and aspiration as they relate to nascent and startup business activities, while the entrepreneurial attitude (ATT) sub-index aims to identify the attitudes of a country’s population as they relate to entrepreneurship.

For example, the pillar known as opportunity perception potential is essential to recognizing and exploring novel business opportunities. It is also critical to have the proper startup skills and personal networks to exploit these opportunities. Moreover, fear of failure to start a business can have a negative effect on entrepreneurial attitudes, even when opportunity recognition and startup skills exist. Entrepreneurial attitudes are believed to be influenced by the crucial institutional factors of market size, level of education, the riskiness of a country in general, the

Source: The 2012 Global Entrepreneurship and Development Index (GEDI):Perspectives from the

Americas

Share of government agencies in European Venture Capital fundraising

11

0%

5%

10%

15%

20%

25%

30%

35%

40%

2007 2008 2009 2010 2011

Academic Inst. / Endowments /FoundationsBanks

Capital markets

Corporate investors

Family offices & Private Individuals

Fund of funds & Other asset managers

Government agencies

Insurance companies

Pension funds

Sovereign wealth funds

0

2

4

6

8

10

2007 2008 2009 2010 2011

bn E

UR

New funds raised (excluding capital gains)

Classified Unclassified

Share of government agencies in VC fundraising

Source: EVCA - VC Forum, 11 October 2012, Amsterdam, Netherlands

KnowledgeEconomyNetworkKEN Bulletin

Issue 11, Vol IINovember 2012

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Population and employment developments in the European Union

29

… but the number of workers would shrink. In the EU27, the number of persons employed (using the LFS definition) is projected to record an annual growth rate of only ¼ % over the period 2010 to 2020 (compared to almost 1% over the period 2000-2009), which is expected to reverse to a negative annual growth rate of a similar magnitude over the period 2020 to 2060. The outcome of these opposite trends is that employment will peak at 217.6 million in 2022 and go down to 195.6 million in 2060. This implies a decline of about 15.7 million workers over the period 2010 to 2060. The negative prospects stemming from the rapid ageing of the population, will only be partly offset by the increase in (older workers) participation rates migration inflows and the assumed decline in structural unemployment, leading to a reduction in the number of people employed during the period 2022 to 2060 (22 million).

Graph 2 - Population and employment developments, EU

180

200

220

240

260

280

300

320

2007

2010

2013

2016

2019

2022

2025

2028

2031

2034

2037

2040

2043

2046

2049

2052

2055

2058

65

66

67

68

69

70

71

72

73

74

75

working-age population (20-64) total employment (20-64) employment rate (20-64)

until 2012:rising

employment

and slow grow th in w orking-

age population

2013-2022:rising

employment, declining

w orking-age population

from 2023 onw ard:both employment and w orking-age population decline

Source: Commission services, EPC. Demographic developments have a major impact on labour market developments. Three distinct periods can be observed for the EU as a whole:

2007-2012 – demographic developments still supportive of growth: both the working-age population and the number of persons employed are projected to increase. However, the increase slows down as the effects of an ageing population take hold, even without incorporating the potential negative impact of the current financial and economic crisis.

2013-2021– rising employment rates offset the decline in the working-age population: the working-age population starts to decline as the baby-boom generation enters retirement. However, the assumed reduction in unemployment rates, the projected increase in the employment rates of women and older workers cushion the impact of demographic change, and the overall number of persons employed would continue to increase, albeit at a slower pace.

Source: The 2012 Ageing Report

European Commission’s new model of the life course0 - 20 21 - 25 25 - 50 50 - 65 65 - 75 75+

Current model Youth Adult / worker Retired / pensionerProposed model Extended youth Adult / worker Third age Fourth age

The European Commission argues that public policy, and statistical systems should use the four-stage model because the traditional model:

ͷ fails to reflect how people live now. Most people now do not establish themselves in full adult roles until their mid-20s, while most wish to (and are capable of) continuing contributing to society well into their 70s;

ͷ produces dysfunctional imbalances in pressure across the life course. The second phase puts extreme stress (evident in wellbeing studies) on people in the second phase (25-50) in building and maintain-ing careers while creating homes and raising families. After 50, they then find themselves underem-ployed, rejected by the labour market when they have the ability, willingness and time to contribute more;

ͷ conceals imbalances in use of resources. Around 2000, the UK government dramatically increased spending on education for adults, but analysis of participation data shows that this was entirely con-centrated on adults aged 18-25, while spending on people over 25 actually fell;

ͷ conceals significant economic activity. The dramatic increases in labour market participation by peo-ple over 65 in recent years were sometimes overlooked, because they were excluded from the defini-tion of working age.

Source: CEDEFOP, Working and ageing: Guidance and counseling for mature learners

KnowledgeEconomyNetworkKEN Bulletin

Issue 11, Vol IINovember 2012

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U.S. Government Spending on Clean Tech (in billions USD)

19

gradually decline (see Figure 6). They would be largely exhausted by the end of 2014 and therefore could

not be depended upon to give a long term boost to clean energy investing.

Among VC investors in clean energy, by 2011, a distinct trend had emerged. The number who had

made at least some investment in clean had never been large. Over the entire 2000-2010 period the

Thomson Reuters data show that no more than 8 percent of VC firms had ever invested in a clean energy

startup. By 2009, although neither the number of deals nor their dollar volume was declining substantially,

the number of VC investors involved in the sectors was (See Figure 7). In 2008 and 2009, Ghosh and

Nanda, 2010) report that about a quarter of U.S. clean energy deals were carried out by just five clean

energy investors. There was growing concentration among VCs who make clean energy investments. The

trend also has been toward growing specialization. In 2011, the largest clean energy investors, each of

whom did from 11 to 37 transactions, were KPCB, Draper Fisher Jurvetson, Rockport Capital, General

Electric, New Enterprise Associates, Chrysalix, Khosla, VantagePoint, Braemer, and Oak Investment

Partners. Fewer, better funded, and apparently better-informed, and/or highly motivated venture capital

firms had maintained or increased their commitments.

Figure 6: U.S. Government Spending on Clean Tech

Source: Jenkins et. al., 2012

Source: The Promise and Pitfalls of Venture Capital as an Asset Class for Clean Energy

Tertiary education participation rates (Proportion of 18-22 years olds in post secondary education)

7University of the future

1. Democratisation of knowledge

and access

Traditionally, universities held the key to knowledge, in both a physical and philosophical sense. University libraries, faculty domains and research institutes were where knowledge was created, stored and shared. The staff working in those domains typically held a privileged status as originators and keepers of knowledge. Now knowledge is open to anyone globally with a device and

but also analysis, interpretation, and curation of knowledge.

Access to universities has traditionally been dominated by a modest proportion of society in developed markets — 20-30% of post-secondary students — and a very narrow proportion of society in emerging markets, typically the elite.

Today, access is expanding both in developed markets, such as Australia, and even more fundamentally in emerging markets. China’s tertiary

education participation rate more than

decade of this century, and is likely to double again in the next 10-15 years1.

Participation rates are growing rapidly in

Latin America, ASEAN, the Middle East and North Africa. Participation rates are also now growing steadily in sub-Saharan Africa, after decades of negligible growth.

This expansion of access will drive a global ‘education revolution’ of an unprecedented scale, transforming societies by creating opportunities for millions of people and their families to increase their standards of living. For universities, this will drive new approaches to teaching and learning, create opportunities for entry to new markets and new global partnerships, stimulate new distribution approaches — such as low-cost distribution in rural areas — and also create new sources of competition.

Democratisation of knowledge and access will drive a global ‘education revolution’ of a scale never before seen, creating both new opportunities and new sources of competition.

Figure 2: Tertiary education participation rates (Proportion of 18-22 years olds in post secondary education)

2000

2010

Sub-Saharan Africa MENALatin AmericaIndiaChinaOECD

75.0%80.0%

15.8%

29.0%

8.0%

25.9%

9.4%

17.9%22.6%

40.5%

21.0%

30.0%

4.3% 6.8%

“Teaching methods have to change. We can’t rely on delivering content anymore — it’s all about contextualisation, ways of thinking, and the student experience.”University Provost

approximate average across developed countries within the OECD and excludes OECD developing countries such as Mexico.

Source: University of the future: A thousand year old industry on the cusp of profound change

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Annex 1: Select bibliography on non-technological innovation

“Innovation in the market expansion services industry: The new growth imperative – unlocking value for clients and customers”, Second Global Market Expansion Services Report, September 2012, Zürich, Switzerland, 52 pp. Access document online

“A strong support to innovative non-technological solutions is crucial for Europe’s energy transition”, Energy Cities, September 2012, Brussels, Belgium, 15 pp. Access document online

Andersen, B., Sureka, P. “Service Innovation Platform: Open business models and intellectual property”, May 2012, London, United Kingdom, 37 pp. Access document online

Stare, M. “Service Innovation Policy Benchmarking: Slovenia”, EPISIS Benchmarking, March 2012, Ljubljana, Slovenia, 21 pp. Access document online

Wooder, S., Baker, S. “Extracting Key Lessons in Service Innovation”, Journal of Product Innovation Management, Volume 29, Number 1, January 2012, 8 pp. Access document online

Mothe, C. “The impact of non-technological innovation on technological innovation”, 2012, Annecy-le-Vieux, France, 23 pp. Access document online

Gotsch, M., Hipp, C., Gallego, J., Rubalcaba, L. “Sectoral Innovation Watch: Knowledge Intensive Services Sector”, Final sector report, December 2011, Madrid, Spain, 67 pp. Access document online

Schilling, A. “Competences supporting service innovation – a literature review”, Vinnova Report, Number 13, November 2011, Stockholm, Sweden, 40 pp. Access document online

Chondrakis, G. “Profiting From non-Technological Innovation: Business Method Patents as Mechanisms of Appropriability”, September 2011, United Kingdom, 37 pp. Access document online

“The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity”, European Policy Brief, September 2011, Brussels, Belgium, 9 pp. Access document online

Kovács, O. “Policies in Support of Service Innovation”, INNO-Grips – Global Review of Innovation Policy Studies, Number 3, September 2011, Budapest, Hungary, 94 pp. Access document online

Schade, S., Saublens, C., Mancini, A, M., Di Anselmo, A. “Non Technology Innovation & Service Innovation and the use of Structural Funds”, TAKE IT UP project, 2011, Brussels, Belgium, 33 pp. Access document online

Snow, P. “Profiting from non-technological innovation: The value of patenting business methods”, Novak Druce Centre Insights, Number 8, 2011, Oxford, United Kingdom, 10 pp. Access document online

Lee, Y., Wu, C. “Service Innovation: A Case Study of Taiwanese Firm”, International Journal of Modeling and Optimization, Volume 3, Hong Kong, China, 2011, 4 pp. Access document online

Santamaria, L., Nieto, J, M., Miles, I. “Service innovation in manufacturing firms: Evidence from Spain”, 2011, Madrid, Spain, 12 pp. Access document online

Suh, Y., Kim, C., Kim, M. “On the Dynamic Model of Service Innovation in Manufacturing Industry”, World Academy of Science, Engineering and Technology, Number 60, 2011, Seoul, South Korea, 5 pp. Access document online

United Nations, “Promoting Innovation in the Services Sector: Review of Experiences and Policies”, 2011, Geneva, Switzerland, 222 pp. Access document online

Castro-Lucas, C., Diallo, F, M., Leo, P., Phillippe, J. “Business Service Innovation through Internationalization”, 2011,

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Aix-en-Provence, France, 24 pp. Access document online

Ryu, H., Lee, J. “Identifying Service Innovation Patterns from the Service-oriented Perspective”, Seoul, South Korea, 2011, 15 pp. Access document online

Bos, J., Te Velde, R., Gillebaard, H. “United We Stand: Open service innovation policy schemes; An international policy scan and two case studies – London and Helsinki metropolitan areas”, 8 October 2010, Utrecht, Netherlands, 48 pp. Access document online

“Services Innovation as a Catalyst for the Europe 2020 Strategy”, Proceedings Report, June 2010, Copenhagen, Denmark, 44 pp. Access document online

Rubalcaba, L., Gallego, J., Hipp, C., Gotsch, M. “Organisational Innovation in Services”, Final report, Europe INNOVA Sectoral Innovation Watch, February 2010, Madrid, Spain, 47 pp. Access document online

European Commission, DG Enterprise and Industry. “Challenges for EU support to innovation in services”, PRO INNO Europe Paper, Number 12, 9 September 2009, Brussels, Belgium, 84 pp. Access document online

Roth, S. “Non-technological and non-economic innovations: Contributions to a theory of robust innovation”, 2009, Bern, Switzerland, 259 pp. Access document online

European Commission, DG Research & Innovation. “Promoting the role of R&D in services”, Report of the CREST R&D in services Working Group, 2009, Brussels, Belgium, 72 pp. Access document online

Van der Aa, W., Den Hertog, P., De Jong, M. “Managing Capabilities for Service Innovation”, Amsterdam, Netherlands, 2009, 12 pp. Access document online

Shelton, R. “Integrating Product and Service Innovation”, Industrial Research Institute, 2009, Arlington, Virginia, United States, 7 pp. Access document online

Jeannerat, H., Crevoisier, O. “Non Technological Innovations and multi-located Knowledge Dynamics in the Swiss watch industry”, Working Paper 3/2008-E, 20 December 2008, Neuchâtel, Switzerland, 29 pp. Access document online

Ali-Yrkkö, J., Martikainen, O. “The impact of technological and nontechnological innovations on firm growth”, ETLA discussion paper, Number 1165, 13 November 2008, Helsinki, Finland, 25 pp. Access document online

Bloch, C., Aðalsteinsdóttir, E., Brehmer, O, P., Christensen, L, J., Drejer, I., Hydle, K., Jensen, B, M., Kuusisto, J., Kvålshaugen, R., Vinding, L, A. “Service Innovation in the Nordic Countries: Key Factors for Policy Design”, Final Report, 2008, Aarhus, Denmark, 68 pp. Access document online

Armbrustera, H., Bikfalvib, A., Kinkela, S., Laya, G. “Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys”, Technovation 28, 2008, 14 pp. Access document online

Wu, Y. “The analysis of innovation efficiency and non-technological factors of manufactory companies in the Pearl River Delta of China”, 2008, Beijing, China, 30 pp. Access document online

Cunningham, P. “Innovation in Services: Thematic Report”, Manchester Institute of Innovation Research, November 2007, United Kingdom, 63 pp. Access document online

“Succeeding through Service Innovation: Developing a Service Perspective on Economic Growth and Prosperity”, Discussion Paper with Recommendations for Education, Business and Policy, October 2007, Cambridge, United Kingdom, 28 pp. Access document online

“Innovation in Services”, Department of Trade & Industry Occasional Paper, Number 9, June 2007, London, United Kingdom, 198 pp. Access document online

Schmidt, T., Rammer, C. “Non-technological and Technological Innovation: Strange Bedfellows?”, ZEW Discussion

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Paper No. 07-052, 2007, Mannheim, Germany, 50 pp. Access document online

Bitner, J, M., Ostrom, L, A., Morgan, N, F. “Service Blueprinting: A Practical Technique for Service Innovation”, 2007, Arizona, United States, 24 pp. Access document online

“Towards a European strategy in support of innovation in services: Challenges and key issues for future actions”, Europe Innova paper, Number 4, 2007, Brussels, Belgium, 48 pp. Access document online

Susman, G., Warren, A., Ding, M., Stites, P, J., Chandra, V., Chirafisi, J., Dytche, R, J., Saurabh, V. “Product and Service Innovation in Small and Medium-Sized Enterprises”, 20 September 2006, Pennsylvania, United States, 71 pp. Access document online

Schmidt, T., Rammer, C. “The determinants and effects of technological and nontechnological innovations – Evidence from the German CIS IV”, 6 September 2006, Mannheim, Germany, 27 pp. Access document online

Berry, L, L., Shankar, V., Parish, T, J., Cadwallader, S., Dotzel, T. “Creating New Markets Through Service Innovation”, MIT Sloan Management Review, Volume 47, Number 2, 2006, Cambridge, Massachusetts, United States, 11 pp. Access document online

Howells, J., Tether, B. “Innovation in Services: Issues at Stake and Trends”, Final Report, INNO-Studies 2001: Lot 3, 2004, Brussels, Belgium, 140 pp. Access document online