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Skills and innovation talents related to future business
growth
Seminar
“Innovation and modernisation of the rural economy”
Gaio, Portugal, June 18, 2015
Peter Laan (FARO Advies, project leader)
FARO Advies
Future business growth in rural areas using young
talents Based on ideas and results from:
- Interreg IV-B North Sea project Vital Rural Area (www.vitalruralarea.eu, 2007-2013)
- Future business growth using young talents
(proposed Interreg V-B North Sea project, 2014 - 2020)
FARO Advies
General remarks related to rural and remote areas
Average educational level is low
Infrastructure (especially ICT)and level of services is poor or poorly accessible
Living and working circumstances are not attractive for youngsters
Potential for innovative sectors can be better utilised (i.e. low carbon economy and the renewables industry) or connected to urban centres through supply chains
FARO Advies
Too little innovative and competitive enterprises (‘top sectors’) are present in rural areas
Especially sectors in ß-science, technique and ICT suffer on the lack of skilled people
Labour markets and 3rd level education are insufficiently tuned
FARO Advies
Associated problems
Avoiding a waste of human capital
OECD (2015) ”Young people are struggling to enter the labour market. In some countries up to 25% of the 16-29 year-olds is neither employed nor in education or training (NEET). Improving the employability of youth requires a comprehensive approach”
Young people are not well-equipped for entering the labour market
Recruitment from abroad over under-qualified local workforce prevails in many sectors
FARO Advies
Megatrends as drivers for innovation
Dealing with megatrends that currently transform the global industrial environment and business terms in general, hence function as drivers for innovation: Demographic change (ageing population) Globalization ICT development Smart technologies New media Organising
FARO Advies
Reshaping our vision towards work
FARO Advies
• Skills and competences will be the global currency of the 21st century!
• Companies (SMEs) must take the lead in finding the right future skills, competences and knowledge to compete on the EU and global market
• Skills shortages
• Skills gaps
Skills shortages in specialized industry sectors
FARO Advies
• SMEs compete within comparable sectors (supply chains) -> not adding capacity, not sustainable
• It leaves companies with the challenge to ensure important knowledge and skills do not disappear
• Expertise is domain-specific -> being an expert in one particular domain does not easily transfer to other domains
• When retirement starts to take hold and demand increases, skills shortages will become more widespread unless recruitment and training is increased to compensate
Skills gaps to overcome
Fast market developments ask for a non-institutionalized approach
Megatrends as drivers for innovation ask for key-skills for future workforce, not recognized today
• Novel and adaptive thinking
• Social intelligence
• New media literacy
• Cross disciplinary skills
• Creation of a design mind-set
• Conceptual thinking
FARO Advies
Illustrative example built on new skills
FARO Advies
Source: EIfI, 2014
Skills gaps to overcome
New emerging markets ask for innovative young entrepreneurs
• Labour requirements should not specifically be sector- or job-directed, but rather focusing on future work skills and competences, required across different jobs and work settings
FARO Advies
How to efffectively work towards overcoming the
skills problem Primary response = Flexibility
• Non-institutionalized approach -> i.e. regional Living Lab driven by entrepreneurs/SMEs
• Talent development that is not job- or sector directed
• Multi-sectoral, bottom up approach (i.e. student companies)
Secondary response = stimulating non-traditional learning methods
• Vocational Education and Training
• Master apprentice system
• ‘Discovery learning’ (technical sector, design and problem-solving attitude)
FARO Advies
Living Labs as experimental gardens and a melting pot for
innovation
FARO Advies
Regional Living Lab
Quadruple Helix
Open innovatio
n
Co-creation
Regional approach: meet & cooperate
New enterpreneurs:
network approach
Discovery learning
(technique, ß-sci, ICT,
enterpreneurship)
New skills and
competences
Up-skilled VET
Master-apprentic
e
Non-tradition
al learning
Future innovation:
Multidisciplinary approach
SMEs
Skills for success !
A skills system that is future proofed and develops the talents of young people with the skills required by industry developed in partnership with industry for industry: “skills for success”
FARO Advies
Regional and rural development Developing or attracting innovative industry
sectors and SMEs to rural areas needs asks for an integrated and long term regional
approach -> Smart Specialisation Strategy
FARO Advies
Regions with strong coalitions of local/regional authorities, entrepreneurs and knowledge-centres/universities show a good performance
Region building implies: * creating of connections * using each others qualities* creating win-win effects* joint strategies* focus and priorities* strong governance
and.... is based on mutual TRUST!!
FARO Advies
Smart Specialisation Strategy – attention points
FARO Advies
FARO Advies
% young people on vocational
courses
% of under 25 yrs who are unemployed
Hungary 25,7 26,6
United Kingdom
32,1 19,6
Denmark 46,5 9,9
Germany 50,9 8,7
The Netherlands
67,0 8,7
Austria 76,5 8,8
Vocational training and unemployment
Source: Eurostat, 2010
Learn from the good examples, performing well in PISA and in their economies
Apply to the 14-18 yrs curriculum Emphasis on vocational training that is “in tune
with industry needs”
-> improving economic performance and employment prospects
-> making locations more attractive to inward investments by creating a talented young population
FARO Advies
The importance of a good VET system