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Gerhard Bosch

Gerhard Bosch. Skills and competencies for innovation. Advancing innovation: human resources, education and training. OECD / Germany workshop 17-18 November 2008 Seminaris Hotel, Bad Honnef. Formal. Informal. Learning. Learning. 78%. 73%. 56%. 52%. 44%. 42%. 30%. 17%.

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Gerhard Bosch

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  1. Gerhard Bosch Skills and competencies for innovation Advancing innovation: human resources, education and training OECD / Germany workshop 17-18 November 2008 Seminaris Hotel, Bad Honnef

  2. Formal Informal Learning Learning 78% 73% 56% 52% 44% 42% 30% 17% Without vocational Vocational training Master, Technician Tertiary education training Business administrator 1.1 Participation in formal and informal learning Gerhard BoschBo08OECDBadHonneff 3.vjj Source: BMBF, 2006 Berichtssystem Weiterbildung

  3. 2.1 The German Paradox High Export surplus – lowest percentage of graduates from tertiary education among big OECD countries Share of graduates from tertiary education (25-35 years) in selected OECD countries 1991 – 2003 (in%) Source: Konsortium Bildungsberichterstattung (2006): Bildung in Deutschland, S. 31

  4. 2.2 Labour demand by skill level in Germany 2003 and 2020 (in %) Tertiary education Master, technician, business adminstrator Vocational certificate Without vocational certificate Tertiary education Master, technician, business adminstrator Vocational certificate Without vocational certificate Source: IZA Research Report No. 9, 2007 Gerhard BoschBo08SPDEssen 5.vjj

  5. 2.3 The German Paradox • Academic bias in analysis of innovation and skills • Focus on indicators like R&D, enrollment in tertiary education • Neglect of VET • Good vocational training needed for • Introduction and diffusion of innovations • Improving the efficiency of production process • Further VET • Masters, Technicians, Business Administrator in service occupations • Middle managers from the shop floor • New Hybrid between VET and Tertiary education: Dual study Gerhard BoschBo08OECDBadHonneff 6.vjj

  6. M.Baethge / V. Baethge-Kinsky / R. Holm / K.Tullius:Dynamische Zeiten – langsamer Wandel: Betriebliche Kompetenzentwicklung von Fachkräften in zentralen Tätigkeitsfeldern der Deutschen Wirtschaft. Schlussbericht des Forschungsvorhabens: „Kompetenzentwicklung in deutschen Unternehmen. Formen,Voraussetzungen und Veränderungsdynamik“, SOFI, März 2007. 3.2 Veränderungen in der Arbeitsorganisation Gerhard BoschBo08OECDBadHonneff 8.vjj

  7. 3.3 Comparison of training curriculain the German metalworking trades 1987 and 2004 - 1987 - 45, 1987 - 16, 2004 – 5 occupations Gerhard BoschBo08OECDBadHonneff 9.vjj

  8. 3.4 Basic learning forms in vocational training Orders Complex Products Customer- Small Products Orientation Project- Orientation Product- Orientation Class Room- Increasing Orientation Work Orientation Gerhard BoschBo08OECDBadHonneff 10.vjj Source: Bosch 2000a

  9. 4.1 Role of SME’s in innovation Innovationprocess Basic research Applied research Dev. of new products and methods Introduction into markets Diffusion Broad diffusion of new technologies Service innovation Transfer of own or external solutions into markets Gerhard BoschBo08OECDBadHonneff 11.vjj

  10. 4.2 Main bottlenecks for introduction and diffusion of new technologies – lack of skills Proactive approach: development of special training courses Chambers of artisans active for example in providing training courses for example in energy saving (heating, insulation) etc. Competition for new markets: New skills decisive who is successful Advantage of training not provided by one producer: more choice for consumer, no firm-specific standards, better chances for the best solutions Gerhard BoschBo08OECDBadHonneff 12.vjj

  11. 4.3 Small firm development account in UK • Pilot Program in Leicestershire & Lincolnshire carried out by the ”Centre for Entreprises” launched in 2002 • A mechanism to stimulate business led workforce development in small companies (5 – 50 employees) • Training advisor of the Centre and ”Training Champion” appointed by the firm to develop ”Training and Development Plan” • Company receives £ 500 after signing the plan / Centre pays up £ 150 per employee for external training • 280 Training Champions attended workshops • 230 approved training plan • Average 20 employees per business • Average 11 employees per plan RESULTS: Gerhard BoschBo08OECDBadHonneff 13.vjj

  12. 4.4 Transfer to Germany: Training checks in North-Rhine-Westphalia • For companies with less than 250 employees • Grant up to 500 € per cheque/ 50% to be paid by company • Up to 2 cheques per year • Cheque only after consultation • No cheques for on-the-job training • No cheques for training if legal obligation to train • No targeting on low skilled or low wage earners • Active marketing and consultation – High utilization Gerhard BoschBo08OECDBadHonneff 14.vjj

  13. A. In the product market: Prevailing wage laws Minimum training requirements for participation in bids B. In the labour market: Avoiding free rider problem by introducing a levy (as in the Danish apprenticeship system) Health and safety regulations 5.1 Strong impact of regulation on training Internalise training-incentives in markets/avoid underinvestment Licensing (such as for doctors, pilots or electricians) Quality standards for products and services (as in health or construction industry) Safety or liability regulations Employment protection which establishes long term relations between employer and employee create incentives for training Gerhard BoschBo08OECDBadHonneff 15.vjj

  14. 4,3% 3,8% 2,8% 2,1% Repeal States States States that Repeal States before repeal retaining law never had law after repeal Apprenticeship Training Rates and Prevailing Wage Laws by State Legal Policy * * Apprentices as a percent of journeymen. Source: P. Philips: The US: A tale of two cities. In: G. Bosch / P. Philips: Building chaos (Eds.): an international comparison of deregulation in the construction industry. London: 2003 Gerhard BoschBo08OECDBadHonneff 16.vjj

  15. 6.1 Public responsibility for adult education and training • World Bank • Individual responsible for own support for living during education and • Market failure in financial sector; therefore only loans • View in some European countries • Public responsibility: simple jobs disappearing • Some individuals not sufficient means • External effects of basic education higher than private returns • Knowledge, immigration and ageing society: more learning needed Gerhard BoschBo08OECDBadHonneff 17.vjj

  16. 6.2 Grants and loans for adults in Sweden • Since 2001 an integration of grant and loan systems for young and adult students • Grants and loans for school and vocational certificates and for university study • For learners up to 25 years 34.5% grant / for older learners 82% grant • Grants and loans up to age of 50 years • Entitlements for unpaid training leaves up to 5 years • Education and training supply for adults very flexible Gerhard BoschBo08OECDBadHonneff 18.vjj

  17. Proposed by the High Level Expert Group on financing lifelong learning 2003 6.3 Proposal of grants and loans for adults in Germany Grants and Loans Depending on public and private Interest Certificate up to Sec. II Certificate of Tertiary Education Advanced further Training Support for living Support for living Support for living / tuition fee Grant: 50 Loan: 50 Grant:100% Tuition fee Tuition fee Grant: 35 Loan: 65 no no Increase of private interest Gerhard BoschBo08OECDBadHonneff 19.vjj

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