Compiled by: Tomáš Bičan Deputy Chief of Slovak Mission in Sofia

1. Youth Entrepreneurial Education – Future of our Nations and EU in Global Competitionwhichbrings the qualities that form the basis of entrepreneurship, such as creativity, spirit of initiative, responsibility, capacity of confronting risks, independence Compiled by: TomášBičan Deputy Chief of Slovak Mission in Sofia Just as entrepreneurs inbusiness bring innovativeand disruptive products to the market, so, too,are the educationentrepreneurs of our time. Prof. MunroRichardson, KauffmanFoundation

2. Innovation means progress Waves of innovations in the history of modern society: • Financial - agrarian revolution 1600- 1750 170 years • Industrial revolution 1770-1840 110 years • Technical revolution 1880-1920 60 years • Scientific technical revolution 1940- 1970 45 years • ICT revolution 1985- 2000 30 years? Innovation waves follows in logical sequence and influence each other. As you can see the timespan of innovation waves is shortening and technological development is speeding up. Innovations are creating new industries and markets. Source: Jared Diamond, David Landes, Daniel Šmihula,

3. Future wave of innovation or what we can expect • Biomedicine: genetic engineering, cloning techniques, new pharmaceutical, direct connection of living and technical systems • Development of nanotechnologies a biotechnologies will completely change medical therapies and industry. • Environmentally friendly production. • Alternative power generation based on bio technologies. • Use of hydrogen for power generation, development of nuclear technologies, fusion. • Alternative or renewable sources will gain steam but won´t be able to cover the consumption of electricity. • THESE NEW CHALLENGES WILL DEMAND • NOT ONLY INVENTORS BUT ALSO PEOPLE • BRAVE ENOUGH TO REALIZE THE NEW IDEAS.

4. Creative and braveenough to risk Oneofthegreatestmindsofourtimesfamed astrophysicistStephenHawkingoncesaid: we need to spread into outer space or else. If we don’t, it will be difficult for the world “to avoid disaster in the next hundred years, let alone the next thousand or million.” We know, the first trips could be the one way tickets, but we already have the first private companies entering cosmic business

5. What are you bringing, good news or as usual?

6. What we can expect till 2025? • From bilpolar world my generation has lived in is slowly becoming a multipolar world with rapidly rising emerging economies of BRIC countries. • Together with growing regional unions and groups relative growth of power of non-state actors – TNC, religious organizations and probably also criminal network. • Growth of economy and number of inhabitants by 1,2 billion till 2025 will create press on energy, raw material, food and water resources and potential for resource nationalismwhich could bring the regional conflicts Zdroj: NIC 2009, Eurostat

7. Estimated demographic development till 2025

8. Changing geopolitical and economic reality • In 2012 will China surpass Germany and will become the third economy in the world and in 2035 it could surpass USA and will become a global challenger • USA produce 93% GDP of EU only with 61% of inhabitants of EU27. Work productivity and R&D development in EU strongly lag behind the USA. EU also can not compete with USA in the military area. • In majority of the EU countries, Japan and Russia the demographic situation will be worsening which will be compensated by immigration • The multilateral institutions should be transformed according to the new geopolitical and economic reality • All this will change the strategic circumstances in the world

9. When China and India will catch up?

10. How will this development influence small nations like ours? • Economies of Slovakia and Bulgaria are relatively small and very open. With opening also their vulnerability towards outer influences is growing. Our success is significantly depending on the development of international economic relations and demand for our production. Slovakia produces about 85% and Bulgaria more than 65% for export mostly to the EU countries. • But we are still lagging in the productivity of work and innovation performance compare to majority ofEU countries which is a strong handicap for the future development of our countries • We need to create the fundaments for sustainable development based on innovations, managing of modern technologies, support of knowledge economy, education and entrepreneurial spirit of our young people

11. Are our economies competitive? • Our competitiveness is mostly based on the relatively low labor cost and taxes • We do not have developed hi-tech industries • Our business environment is not enough supporting innovations and technology transfer • We have to motivate our companies to produce high value added goods • We have to increase the attractiveness of science and technical education • The education should promote the entrepreneurial spirit of our young people

12. Our countries and innovation performance Slovakia and Bulgaria are among the countries with the lowest performance in innovation in international comparisons (OECD, 2010d). In 2008, the number of triadic patents and cross-border trademarks per capita was significantly lower than the OECD average and only a low percentage of firms had innovation activities. We are net technology importers: expenditure on foreign technology (technological payments) is greater than expenditure for domestic business enterprise R&D

13. Comparison of R&D expenditures

14. Meeting our targets for 2020 –runningresults

15. Unemployment rate is way over the EU average

16. 7 flagship initiatives: actions at EU and Member State levels

17. The quality of education matters

18. Youth unemployment in both our countries ALARMING

19. The size of the shadow economy in the EU is still large

20. Terciary Education Performance

21. R&D intensity is really poor

22. What could be the role of state to make environment more business friendly and encourage young people to start the business?

23. Slow licensing delays business start-ups

24. Bureaucracy is time consuming

25. E-Government –way to ease the burden of bureaucracy

26. How companies benefit from e-government in ourcountries

27. The quality of public administration matters

28. Negative bribery effects -1% of EU GDP

29. EU EDUCATION FOR ENTREPRENEURSHIP PROJECT Promoting entrepreneurial attitudes and skillsthrough Primary and Secondary education Based on “Best Procedure” project on education andtraining for entrepreneurship, launched in June 2001 in the framework of the Multiannual Programme for Enterprise and Entrepreneurship (2001-2005). Final report of EU expert groupisanexcellentguidelineforfuturesolutions

30. Final report statement Europe needs to foster the entrepreneurial drive more effectively. It needs more new firms willing to start creative or innovative ventures and more entrepreneurs. Education can greatly contribute to creating a more entrepreneurial culture, starting with young people and at school. Promoting entrepreneurial skills and attitudes provides benefits to society even beyond their application to new business ventures. Theobjectives of education will include nurturing in young people personalqualities that form the basis of entrepreneurship, such as creativity, spirit of initiative, responsibility, capacity of confronting risks, independence. This type of attitude can be promoted already in primary school teaching. The importance of fostering an entrepreneurial mindset among young people is also emphasized in the Entrepreneurship Action Plan adopted by the Commission in 2004.

31. Proposals of the expert group: Enhance cooperation between departments of the public administration that have a role to play in this field (e.g. Ministries of Industry, Economy and Education, Agencies); Adopt a range of support measures targeting the schools and the teachers, thus promoting concretely the application of programs; Support the activities of existing networks and NGOs promoting programs based on practical experience, such as student companies or virtual firms; Increase participation of business associations and Chambers of Commerce in policy making and activities related to entrepreneurship and business education, and the involvement of businesses/entrepreneurs in specific programs; Create an inter-department function or structure at national level that will give impulse to - and coordinate - the gathering of information on ongoing activities; Step up initiatives for the dissemination of good practice, both at national and European level; Set up mechanisms for implementing some of the proposed indicators, in order to allow assessing progress and eventually defining targets. Create a permanent framework for monitoring progress, by using existing instruments at European level.

32. Experience of Slovakia

33. Junior Achievement Slovakia Best performing NGO in this area Leader in entrepreneurial education Partner of government, business, professional unions, chambers of commerce, Programs supporting entrepreneurial and economic thinking, ethical decision making, market education and youth employment based on learning by doing practices It creates the space for creativity, selfresentation of young people, communication and learns them to be responsible for their decisions HP innovation relay, US Steel innovation and creativity camp, EU year of volunteers etc. etc.

34. Programs of Junior Achivement SK • Ground schools • Europe and ME • Basics of entrepreneurship • Entrepreneurship in turism • More than money • Secondary schools • More than money • Entrepreneurship in turism • Aplicated economics • Banks in action • MESE/TITAN

35. Programs of Junior Achivement SK 2 • Secondary schools • Global ethical program – Ethics in business • Entrepreneurship without limits • Online economics textbook • Universities and colleges • Managerial simulation exercises • My job - entrepreneur

36. Junior Achievement´s achievements • School year 2011/2012 • Number of program graduates in 20 years: 206 800 • Number of students involved in programs and projects: 17 960 • Schools involved: 562 • Teachers involved: 666 • Volunteers from business: 300

37. Contact of Junior Achivements

38. Thanks for your kind attention TomasBičan, DeputyChiefofMission, Embassyof SLOVAKIA tomas.bican@mzv.sk