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Universities, Competitiveness and the National Innovation System

Universities, Competitiveness and the National Innovation System. Alfred Watkins S&T Program Coordinator Education Department Human Development Network Regional Higher Education Conference Strategic Choices for Higher Education Reform Kuala Lumpur, Malaysia December 3-5, 2007.

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Universities, Competitiveness and the National Innovation System

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  1. Universities, Competitiveness and the National Innovation System Alfred Watkins S&T Program Coordinator Education Department Human Development Network Regional Higher Education Conference Strategic Choices for Higher Education Reform Kuala Lumpur, Malaysia December 3-5, 2007

  2. Plan of Presentation • Innovation and Competitiveness – The role of Higher Education (and basic, secondary, vocational, technical and life-long learning) • Benchmarking Exercise

  3. Universities, Competitiveness and the National Innovation System • National goals are to accelerate growth, reduce poverty, achieve the MDGs, and improve the competitiveness of local industry, thereby creating higher wage, higher-skilled jobs that generate rising standards of living for all • In today’s global economy, tertiary education and innovation are indispensable tools for achieving those goals

  4. Innovation, Competitiveness and Higher Education

  5. Growth and Poverty Reduction are the Objectives;Education, Innovation, and PSD Are Means to Achieve These Objectives

  6. PSD Innovation Higher Education The Pieces Must Fit Together

  7. Why Worry About All This?

  8. WHAT KIND OF KNOWLEDGE?WHERE DO YOU GET IT?HOW DO YOU FIND IT?

  9. Capacity Building Occurs at Different Levels of the Economy • National policy organizations • S&T organizations -- -- universities, R&D institutes • Enterprises – both users of knowledge and creators of new knowledge • Labor Force

  10. National Technological Learning S&T learning capacity S&T learning opportunities + Knowledge generation capacity Knowledge absorption capacity Diaspora and Expats Internet Capital imports Licensing Education Export Customers R&D Inward FDI S&T co-operation

  11. Groups of Firms According to Technological Capability

  12. Getting the Balance Right is Important!

  13. BENCHMARKING(CURRENT BENCHMARK RANKING IS NOT DESTINY!!)

  14. Benchmarked Countries • Bangladesh • Cambodia • Fiji • India • Indonesia • Malaysia • Mongolia • Nepal • Pakistan • Philippines • Sri Lanka • Timor-Leste • Thailand and • Vietnam

  15. Rankings on indices differ significantly

  16. Different Benchmarking Indices Measure Different Dimensions of Innovation Capacity and Competitiveness • UNCTAD’s Innovation Capability Index—underlying technological capacity with a focus on inputs to innovation (education and R&D) • UNIDO’s Competitive Industrial Performance Index—revealed technological capacity in industry with a focus on manufacturing competitiveness • WEF’s Global Competitive Index—to see how institutions, innovation, education, etc. contribute to competitiveness • World Bank’s Knowledge Economy Index (KEI)—knowledge economy readiness with focus on innovation and education • World Bank’s Doing Business Indicators—how conducive the business environment is for enterprises

  17. Global Competitiveness Rankings– Out of 131 Countries Source: The Global Competitiveness Report 2007

  18. Knowledge Economy Index Source: Knowledge Economy Index 2007, World Bank

  19. Knowledge Economy Index • ECON. INCENTIVE REGIME: • Tariff & Non-tariff barriers • Property Rights • Regulation • INNOVATION: • Researchers in R&D • Manuf. Trade as % of GDP • Scient. & Tech. Pub. per • million people • INFORMATION INFR.: • Tel. Lines per 1000 people • Computers per 1000 people • Internet hosts per 10,000 people • EDUCATION: • Adult literacy rate • Secondary Enrollment • Tertiary Enrollment Source: WBI KAM

  20. Basic KE Scorecard LATVIA Source: WBI KAM

  21. Human Capital for Knowledge Economy

  22. Human Capital for Knowledge Economy-II

  23. UNCTAD –Innovation Capability Index

  24. UNCTAD –Innovation Capability Index Source: UNCTAD World Investment Report 2005; Rankings out of 117 countries

  25. Patents, Journals, Researchers in R&D Investment in R&D (% of GDP)

  26. Korea R&D (% of GDP) 1963-2003 Source: Korea Science and Technology Policy Institute; WDI, 2007

  27. Korea Patent Trends (1965-2006) Source: United States Patent and Trademark Office (USPTO), 2007

  28. UNIDO - Competitive Industrial Performance Index

  29. UNIDO - Competitive Industrial Performance Index Source: UNIDO Industrial Development Report 2004; Rankings out of 93 countries

  30. High Tech Not Automatically Equal to High Income Source: World Development Indicators, 2007

  31. GDP per capita in 2006 (constant 2000 US$)

  32. Export Structure by Technology Category Producing “what” vs. producing “how”

  33. Agriculture Value-Added Per Worker (Constant US Dollar) Source: World Development Indicators, 2007

  34. Manufacturing Value-Added Per Capita (Constant US Dollar) Source: UNIDO, 2005

  35. Ease of Doing Business Rankings Source: Doing Business Report, 2007

  36. Doing Business-Top 30 Performers in 2007

  37. Regional trends in rankings Average rank, ease of doing business South Asia Sub Saharan Africa Middle East & North Africa Latin America & Caribbean East Asia & Pacific Eastern Europe & Central Asia High income OECD

  38. Lessons to Learn from Neighbors: Best and Worst Performers on Ten Indicators of Doing Business Excludes Korea and Singapore

  39. “Crystals of S&T Learning” -graphical/statistical illustrations

  40. “Crystals of S&T Learning” -graphical/statistical illustrations • The most accessible, passive opportunities for learning from foreign sources created by capital goods imports and FDI (indicators 9, 10) • Human capital accumulated / human capability for S&T learning (see indicators 11, 12, 1) • The more demanding opportunities for learning from domestic and foreign sources through domestic R&D (indicators 2, 3) • The most demanding opportunities for learning through knowledge markets and international S&T cooperation (indicators 4, 5, 6) • Success in using S&T knowledge for improving technological structures of a country’s MVA and manufactured exports (indicators 7, 8).

  41. ‘Crystals’ can ‘grow’, but only in the right (learning) environment

  42. 6 models of national technological learning: • Traditionalist slow learning, • Passive FDI-dependent, • Active FDI-dependent, • Autonomous, • Creative-isolated, • Creative-cooperative.

  43. Passive FDI-dependent learning • passively relying on FDI to bring in new technologies, • low S&T learning capacity, • no or weak government technological strategy, • limited opportunities for technological learning, • high risk of losing in economic competition with poorer, lower-wage countries.

  44. Active FDI-dependent learning • relatively high S&T learning capacity, • active government strategy aimed at building national human capital and accelerating national technological learning from FDI, • active targeting of the most beneficial FDI, • much wider opportunities for technological learning from FDI, • lower risk of losing in economic competition with lower-wage but lower-skill countries.

  45. Crystals of sample Passive and Active FDI-dependent learners

  46. ‘Crystals’ assessment – Malaysia

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