Transcript From “Knowledge Economy” to “Creative Economy”

Second International Seville Seminar on
Future-Oriented Technology Analysis (FTA):
Impact on Policy and Decision Making
Future Role of University
For A Creative and Innovative Society
Prof. Dr. Gülsün SAĞLAMER
EUA Board Member
ITU
28 September 2006
The illiterate of the 21st century will not those
who cannot read and write but those
who cannot learn, unlearn, and relearn.
Alvin Toffler
Content
Globalization & Forces Driving Change
Baseline Scenario
Tinkering with the Baseline Scenario
Challenging the Baseline Scenario
“Creative Economy”
Is EU Becoming a “Creative Economy”?
Conclusions
Globalization
Globalisation has been defined as
concept that refers to the compression
of the world and the intensification of
consciousness of the world as a whole.
Currie describes
the global world as one where time and
space are compressed.
Jan Currie, Universities and Globalisation,1998, p1
Globalization-Some Facts
Fast developments in science, technology, innovation
have created knowledge based economies and has
accelerated the speed of globalization. But at the same
time these changes have forced the world to face the
new emerging global players such as China and India.
Economic production has increased 6 fold in the last
50 years*
World population has increased 2.5 times*
There is an increasing asymmetry between poor and
rich countries.
*The Economist,The Brain Business, Sep 8th 2005
Forces Driving Change in the World
The powerful forces driving change in our world today.
demographics
globalization
technology
are demanding change in the role, character and
relationship of knowledge organizations such as
research universities, corporate R&D organizations,
federal laboratories and government
James J. Duderstadt,2006., “University-Industry-Government Partnership”
Forces Driving Change in
Higher Education
The main factors that put pressure on HE for radical
changes are:
Democratisation/Massification of Higher Education
The Rise of Knowledge Economy
Globalization
Competition
The Economist,The Brain Business, Sep 8th 2005
Combined Forces Driving Change in HE
Demographics---Global Democratisation of Higher
Education
Technology/Knowledge Economy ---Competition
The Democratization/
Massification of HE
Creating HE opportunities for masses is defined as
democratization of HE.
The Economist,The Brain Business, Sep 8th 2005
Demographics--Global Democratization of HE
The enrollment rate in HE in OECD countries*
Between 1975 – 2000 has gone up from 22% to 41%.
It is planned to increase the enrollment rate up to 53%
China - enrollment rate in 1980s
2-3%
in 2003
17%
Number of doctoral students jumped from 14,500 in
1998 to 48,700 in 2003
India -The number of people attending universities
almost doubled in the 1990s from 4.9m to 9.4m.
*The Economist,The Brain Business, Sep 8th 2005
Technology/KE---Competition
Resources allocated for R&D (% GDP)
USA
Japan
EU
2.76%
3.12%
1.97% (by 2010 3.0%)
Luc Weber,2006 “European Strategy to promote the Knowledge Society as a Source of renewed
economic dynamism and Social Cohesion” pp3-17
Technology/KE---Competition
Research Workforce, 2003
(Source: EC “Delivering on the modernisation agenda ….” 2006)
EU 25
New PhDs
Employment of
researchers
(FTE)
USA
Japan
All disciplines
88,100
46,000
14,500
Maths, Science
and
Technology
37,000
16,200
5,500
1,167,000
1,335,000
675,000
5.5
9.1
10.1
Total number
Researchers
per 1000
persons in
labour force
Technology/KE---Competition
Financial Resources allocated for HE
USA
EU
Canada
Korea
%2.7 GDP
%1.1
%2.5
%2.5
Technology/KE--Competition
The most significant development in HE is the
emergence of super-league of global universities.
This is revolutionary in sense that these institutions
regard the whole world as
their stage (may be their hinterland),
but also evolutionary in that they are still wedded to
the ideal of a community of scholars who combine
teaching and research.
This the obvious result of competition in HE sector.
The Economist,The Brain Business, Sep 8th 2005
Technology/KE---Competition
20
50
100
200
300
400
500
______________________________________________
US
17
39
51
100
140
165
198
______________________________________________
EU
2
9
38
79
123
168
205
______________________________________________
Asia
1
2
8
23
36
65
93
______________________________________________
Africa
1
2
4
______________________________________________
Shanghai Ranking 2005
Technology/KE---Competition
USA
USA Universities have
70% of Nobel Prize-winners
30% of world outputs of articles in
science and engineering
44% of the most frequently cited articles
The Economist(US),Sept 10,2005,v376
Technology/KE---Competition
Science & Engineering Students Ratio
USA
Europe
Asia
China
4.5%
12.0%
40.0%
44.0%*
*James J. Duderstadt, 2006.,“University-Industry-Government Partnershippp 19-30
Diagnosis and the Baseline Scenario
The Western world, particularly the US is ahead of the
others in the global technology/KE competition
However
GLOBAL COMPETITION is intensifying and
US/EU may not be able to rely on the international science and
engineering labour market for its unmet skill needs.
the number of native-born science and engineering graduates entering
the workforce is likely to decline unless the US/EU intervene to improve
success in educating S&E students
DEMOGRAPHICS&DEMOCRATIZATION of HE favours India and China
Diagnosis and the Baseline Scenario
The baseline scenario in this competitive global setting
does not seem to favour EU or even the US
Tinkering with the Baseline Scenario
Reversing the Decline in interest in S&E
One variable under our control is “interest” in
engineering and sciences among the youth
What are the reasons for the decline in interest?
The Curriculum is difficult
The curriculum is densely packed and inflexible
Other paths to good jobs are easier
Engineers treated as commodities by employers
Traditional entry level jobs are being offshored
Media reports indicate insability
Wayne C.Johnson, Russel C Jones, 2006.,”Declining Interest in Engineering Studies at
a Time of Increased Business Need”p244
Tinkering with the Baseline Scenario
Reversing the Decline in interest in S&E
What Can the Universities Do to Reverse the Decline?
Universities play a major role in educating future scientists. It is
important to make the curricula in science and technology attractive
to students.
Interdisciplinary work should be regular to strenghten experimental
knowledge
For undergraduates to gain deeper interdisciplinary insight, they need
to work with faculty members who offer expertise both in their home
discipline and in working together with scientists or scholars from
other disciplines
Most imortant for a student is to take a broad range of courses and
develop a solid background at least in one discipline.To instigate a
broader horizon of students, universities should not offer curricula
which are so packed that it is nearly impossible for students to take
any courses outside their primary field.
Georg Winckler, Martin Fieder, 2006., “Declining Demand among Students for Science and
Engineering”p 236
Challenging the Baseline Scenario
From “Knowledge Economy” to “Creative Economy”
The Baseline Scenario can change
IF
The US and EU transform their economic and social structures
Move from a “Knowledge Economy” to a “Creative Economy”
Challenging the Baseline Scenario
From “Knowledge Economy” to “Creative Economy”
The basic economic resources “the mean of production is
no longer capital, nor natural resources...nor labor. It is
and will be knowledge”
Peter Drucker
BUT
Richard Florida defines today’s economy as a
“Creative Economy”
Florida sees creativity as the key driver:
Knowledge and information are tools and materials for
creativity. “Innovation, whether in the form of new
technological artifact or a new business model or method is
the product”
Richard Florida, 2002., ”The Rise of the Creative Class”
From “Knowledge Economy” to “Creative Economy”
Creativity
“Creativity involves the ability to synthesize.
It is a matter of sifting through data, perceptions and
materials to come up with combinations that are new
and useful.”
Richard Florida
Creativity can take a longer time.
“Chance favors only the prepared mind”
Louis Pasteur
From “Knowledge Economy” to “Creative Economy”
Creativity
Creativity flourishes best in a unique kind of
social environment: one that is stable
enough to allow continuity of effort, that
diverse and broad-minded enough to
nourish creativity in all its the subversive
forms.
Richard Florida, 2002., ”The Rise of the Creative Class”
From “Knowledge Economy” to “Creative Economy”
Innovation
Innovation requires
new knowledge(through research),
human capital(through education),
infrastructure(both physical and cyber)
new policies(intellectuel property,anti-trust, tax)
all of which depend both on public and private investment
and upon the capacity of knowledge institutions such as
research universities, corporate R&D, and National
Laboratories.
From “Knowledge Economy” to “Creative Economy”
Creativity
“Technological progress is like a fragile and
vulnerable plant, whose flourishing is not
only dependent on the appropriate
surroundings and climate, but whose life is
almost always short. It is highly sensitive to
its social and economic environment and
can easily be arrested.”
“Sustaining it over a long period is not
automatic, but requires constant attention
to and investment in the economic and
social forms that feed the creative impulse.”
Joel Monkry, 1990.,The Lever of Riches: Technological Creativity and Economic Progress
From “Knowledge Economy” to “Creative Economy”
Creativity in the form of R&D
Growth in following dimension of
the Creative Economy
Systematic investment in R&D spending
Fruits of R&D, The number of patents...
The workforce devoted to technical creativity in the
form of scientiests and engineers
The number of people making a living from artistic
and cultural creativity
Richard Florida, 2002., ”The Rise of the Creative Class”,p45
From “Knowledge Economy” to “Creative Economy”
Institutions of the Creative Economy
Social Structure of creativity comprises;
New systems for technological creativity and
entrepreneurship
New and more effective models for producing
goods and services
A broad social, cultural and geographic milieu
conducive to creativity of all sorts.
From “Knowledge Economy” to “Creative Economy”
Research Universities
Because universities harbour brain power, ambition and
expertise, they are natural partners in building a strong
economy. The ways that are common to all research
universities are;
Universities are magnets that draw young people of
talent from a large area and concentrate them into an
interactive, creative community
Universities develop knowledge and skills in their
students, so that their graduates are capable of making
much more valuable contributions to their
families and their society
Larry R. Faulkner, 2006., “Lessons about Regional Economic Development from the
Austin Story”,p206
From “Knowledge Economy” to “Creative Economy”
Research Universities
Universities recruit and sustain a talented faculty,
who contribute to the creation of vibrant community
outside the university itself can bring expertise to the
solution of public problems or, as inventors and consultants,
to the service of commerce and industry
A university has great power to influence the
attractiveness of its region as a place to live and
work, through its effect on the intellectual life of its
community, through cultural and artistic events that it
sponsors, and through its ability to build identity.
Larry R. Faulkner, 2006., “Lessons about Regional Economic Development from the
Austin Story”,p206
From “Knowledge Economy” to “Creative Economy”
Research Universities
Universities also have convening power. They can
bring people toghether from all sectors of society to
address the issue of the present and future. In this
way, and in others, universities become seen publicly as
places where the future created. The reputation and the
reality are both valuable for the economic development of
the region that host the university.
Finally, all universities are sizable, stable economic
engines in themselves. They bring employement to a
community and generate income for many supporting
business.
Larry R. Faulkner, 2006., “Lessons about Regional Economic Development from the
Austin Story”,p206
From “Knowledge Economy” to “Creative Economy”
Designing Creative and Innovative Society
How?
The university must host a superb faculty and truly exceptional
research programmes, as measured by international standards
The university must have high social importance and public
credibility
The region must be competitively attractive place for talented
people to live.
The university leadership must be well engaged with the
business and political leadership of the region, and all must be
interested in fostering economic development.
Larry R. Faulkner, 2006., “Lessons about Regional Economic Development from the Austin
Story”,p206
From “Knowledge Economy” to “Creative Economy”
Is EU Becoming a Creative Society?
Bologna Process
Lisbon Strategy
EUA Vision
From “Knowledge Economy” to “Creative Economy”
Is EU Becoming a Creative Society?
BOLOGNA and BEYOND
The aim of the Bologna Process is to establish EHEA which
will promote lasting employability for European citizens
and international competitiveness of the European Higher
Education System.
It is widely accepted that for many countries, “Bologna is
an inspiration and recipe for highly needed reforms in
their higher education systems.” (Bologna Process,
Bergen, 2005)
As Bologna Process has been developing, its mission and
goals have also been redefined according to emerging
trends and concepts throughout years since 1999.
From “Knowledge Economy” to “Creative Economy”
Is EU Becoming a Creative Society?
Lisbon Strategy 2000
The European Commisssion launched Lisbon Strategy in
March 2000.
The EU set itself “a new strategic goal for the next
decade: to 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”
The European Council concluded that European education
and training systems should become a “world quality
reference” in March 2002.
The European University Association (EUA)
Contributions
EUA’s mission is to promote the development of a
coherent system of European higher education and
research, through active support and guidance to its
members as autonomous institutions in their development
of the quality of teaching, learning and research and in
enhancing their contributions to society.
EUA Annual Report 2001/2002
EUA
EUA has created “A Vision and Strategy for Europe’s
Universities and European University Association”
in 2006. This vision paper has defined the role of
European Universities in the world and their mission.
“European Universities see it as their mission to
perform as essential part of the knowledge society
and economy, the task of invention, innovation,
teaching, learning, research, knowledge transfer and
fearless critisism of ideas in the service of Europe and
the world.”
Conclusion
Transformation towards a “Creative Society” demands
a vibrant HE system
Across Europe as a whole, higher education is crying
out for reform in six important areas
• Governance, Funding, Selectivity in Allocation of
Funds, Enhancing Diversity, Curriculum Reform, Top
down Mechanisms
Richard Lambert, 2006
Conclusion
The drift towards the unfavourable baseline scenario is
a real RISK but NOT INEVITABLE
Our determination today to pursue the pillars of the
creative society is the way forward to become the
“authors of a favourable scenario”
rather than the
“sad bystanders in an unfavourable scenario”
“You can never plan the future by the past”
Edmund Burke
Thank you
For Your Attention
References
Jan Currie., Universities and Globalization, 1998,p1
The Economist,The Brain Business, Sep 8th 2005
James J. Duderstadt,2006., “University-Industry-Government Partnership”
Usher,A &Cervenan,A.,2005 Global Higher Education Rankings.Affordability and
Accessibility in Comparative Perspective
Luc Weber,2006 “European Strategy to promote the Knowledge Society as a Source of
renewed economic dynamism and Social Cohesion” pp3-17
Michael Scharage,2006.,”The Asian Giants and the Brains Bazaar”
Wayne C.Johnson, Russel C Jones, 2006.,”Declining Interest in Engineering Studies at a
Time of Increased Business Need”p244
Georg Winckler, Martin Fieder, 2006., “Declining Demand among Students for Science
and Engineering”p 236
Larry R Faulkner, 2006., “Lessons about Regional Economic Development from the
Austin Story”,p206
Richard Florida, 2002., ”The Rise of the Creative Class”
Joel Monkry, 1990.,The Lever of Riches: Technological Creativity and Economic Progress
Rising Above The Gathering Storm: Energizing and Employing America for a Brighter
Economic Future
EUA Statement on the Bologna Process, Bergen Ministerial Meeting April 200
EUA A Vision and Strategy for Europe’s Universities and European University
Association”, 2006.
Richart Lambert, 2006 “Best Practices in Business-University Collaboration”