11

TRENDS OF HIGHER EDUCATION AND RESEARCH IN SOUTHERN EUROPEAN COUNTRIES

Alberto AmaralA3ES

ECONOMIC DEVELOPMENT IN SOUTHERN EUROPEAN REGIONS: POLICIES AND HIGHER EDUCATION

EDULOG 2017 CONFERENCE

2

Even before the economic crisis the European Union was confronted with anumber of problems, including high unemployment levels (unacceptably highamong the young population), and slow economic growth.

The Lisbon strategy (2000 European Council)

Modernising the European social model: increasing employment, protecting anageing population and fighting against social exclusion.

Critical voices:Iversen and Wren (1998)Creel, Laurent and Le Cacheux (2005)

3

Lehendorff, S. (2012) “A triumph of failed ideas. European models of capitalism inthe crisis”

The failure of the Lisbon strategy

Wim Kok’s report (2004)

European Commission 2010 - Strategy 2020

4

A paradox

Neoliberalism and social friendly policies

The picture presented by EUROSTAT

5

Target

20082014

6

The ‘Europe of Knowledge’ and knowledge-based economies.

“The current tendency at European level is to look at the Bologna Process as anelement of the Lisbon strategy. This is the result of the European Commissionactions…” (Froment, 2007)

From the generous ideals of values and culture to higher education at the serviceof the short-term needs and demands of the economy.

The Commission linked the Bologna objectives “directly to economic gainsexpected from a common education area” (Martens and Wolf, 2009) and usedthe Services Directive to create a market for higher education.

The Commission has a utilitarian view of higher education and research

7

In labour economics human capital is seen as a set of skills/characteristics thatincrease a worker’s productivity and “human capital” will be valued in the marketbecause it increases firms’ profits.

A necessary but not sufficient ingredient for economic growth.

Minimum threshold levels of human capital, economic activity and investment inresearch and development activities.

EU has failed to close the gap with leading industrialised countries: total R&Dexpenditure. 1,74% in 2005 to 2,03% in 2015)

Europe and global competition

Private investment by the business and enterprise sector is the major problem.Situation as regards tertiary education is not very good.

8

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) United States China* Japan South Korea

Total expenditure in R&D as % of the GDP

9

Expenditure in R&D, enterprise and business sector, as % of the GDP

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) United States China* Japan South Korea

10

Expenditure in R&D, higher education sector, as % of the GDP

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) United States China* Japan South Korea

11

Expenditure in R&D, government sector, as % of the GDP

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) United States China* Japan South Korea

12

% Population holding a tertiary education degree

0

10

20

30

40

50

60

70

80

Germany Greece Italy Japan Korea Portugal Spain UnitedStates

OECDaverage

EU22average

25-64 25-34 55-64

% P

op

ula

tio

n

13

Reducing the gap between the development levels of the various regions…

Regional Convergence Policies

EU single market strategy and ‘negative integration’

Unfolding contradictions between different national capitalisms.

Division of labour, easily accessible credit and low interest rates.

14

Southern European countries are well bellow the EU average.Germany is well above the European average.Similar results the when the enterprise and business sector is considered.

In the HE sector Germany is just slightly above the European averagePortugal shows an unexpected good performance.

The other SE countries show poorer performances than the European average.

In the government sector Germany shows good performance, above the EU averagePortugal presents a very poor performance. Greece presents a better performancethan Portugal.

Investments in R&D and research personnel

A similar picture can be found when the analysis focuses on the % of researchpersonnel in the labour force.

15

Total expenditure in R&D as % of the GDP

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) Greece Spain Italy Portugal Germany

16

Expenditure in R&D, enterprise and business sector, as % of the GDP

0,00

0,50

1,00

1,50

2,00

2,50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) Greece Spain Italy Portugal Germany

17

Expenditure in R&D, higher education sector, as % of the GDP

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) Greece Spain Italy Portugal Germany

18

Expenditure in R&D, government sector, as % of the GDP

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% G

DP

EU (28) Greece Spain Italy Portugal Germany

19

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% L

AB

OU

R F

OR

CE

(FTE

)

EU (28) Greece Spain Italy Portugal Germany

R&D personnel, total, % labour force (FTE)

20

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% L

AB

OU

R F

OR

CE

(FTE

)

EU (28) Greece Spain Italy Portugal Germany

R&D personnel, enterprise and business sector, % labour force (FTE)

21

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% L

AB

OU

R F

OR

CE

(FTE

)

EU (28) Greece Spain Italy Portugal Germany

R&D personnel, higher education sector, % labour force (FTE)

22

0,00

0,05

0,10

0,15

0,20

0,25

0,30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% L

AB

OU

R F

OR

CE

(FTE

)

EU (28) Greece Spain Italy Portugal Germany

R&D personnel, government sector, % labour force (FTE)

23

15

20

25

30

35

40

45

50

55

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% L

AB

OU

R F

OR

CE

(FTE

)

EU (28) Greece Spain Italy Portugal Germany

Human resources in science and technology (% labour force FTE)

24

 00

 10

 20

 30

 40

 50

 60

 70

 80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% P

OP

ULA

TIO

N

European Union (28) Greece Spain Italy Portugal Germany

% of the population, 15 to 64 years, with less than primary, primary and lower secondary education (ISCED 0-2)

25

 00

 05

 10

 15

 20

 25

 30

 35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% P

OP

ULA

TIO

N

European Union (28) Greece Spain Italy Portugal Germany

% of the population, 15 to 64 years, with tertiary education (ISCED 5-8)

26

 10

 15

 20

 25

 30

 35

 40

 45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% P

OP

ULA

TIO

N

European Union (28) Germany Greece Spain Italy Portugal

% of the population, 25 to 34 years, with tertiary education (ISCED 5-8)

27

 00

 05

 10

 15

 20

 25

 30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% P

OP

ULA

TIO

N

European Union (28) Germany Greece Spain Italy Portugal

% of the population, 55 to 64 years, with tertiary education (ISCED 5-8)

28

 00

 10

 20

 30

 40

 50

 60

 70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% P

OP

ULA

TIO

N

European Union (28) Germany Greece Spain Italy Portugal

% of the population, 25 to 34 years, with upper secondary and non-tertiary education (ISCED 3-4)

29

The varieties of capitalism approach contend that each state has its own model ofcapitalism, shaped by culture, history, mentality and economic-political system

Workers feel incentivised to invest in and acquire highly specialised, sector-specificskills that will be rewarded through stable employment and trade unions arepowerful.

In coordinated market economies firms pursue long-term production strategies and employees are usually offered long-term employment tenures.

In contrast, in liberal market economies, trade unions and employer associations are generally less powerful and cohesive, while negotiations over wage coordination and labour conditions are more difficult.

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In liberal market economies it is relatively easy for firms to employ or lay off labour inorder to take advantage of new opportunities, while production strategies based oncommitments to long-term employment are less attractive.

Liberal market economies (Anglo-Saxon) – U.S., Britain, Australia, Canada, NewZealand, Ireland.

Individuals are encouraged to invest in general skills, which are transferable acrossfirms, and in career trajectories that contemplate frequent job changes.

Coordinated market economies – Germany, Japan, Switzerland, the Netherlands,Belgium, Sweden, Norway, Denmark, Finland, and Austria.

Portugal, France, Italy, Spain, Greece, and Turkey constitute another type ofcapitalism, described as ‘Mediterranean’ or ‘mixed market economies’

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No convergence and in some cases divergence has even been increasing.

The mismatch between education and the labour market is a most relevant problemof the Southern European countries.

The low qualification level of many employers and the incapacity of moving intohigher levels in the production process do not allow for the efficient use of theeducational endowment available to each region.

Regional disparities at sub-national level

People with a university degree may find difficulty in obtained employmentcompatible with their qualifications.

Human capital upgrading policies must be coordinated with ‘moving’ qualified jobopportunities into the periphery.

32Population aged 25-64 years with tertiary education

33Human resources in science and technology

34Unemployment rates (%), 15-74 years

35GDP at current market prices