Developing knowledge economies:

Setting the sceneFabrice Hénard-6 March 2013

Both young and adults drive globalisation

Knowledge economy is changing itself

The crisis changed the settings of the knowledge economy

In response, Governments introduced corrective actions via HE

Government + Crisis + Globalisation!

Metrics are lacking on internationalisation impacts

4 policy pointers.

Thanks and list of contributors

We will discuss the following…

11/23/08

Expansion of the knowledge economy and growing middle class in many developing nations = higher demand for tertiary education.

Global massification of education, not yet saturated,a. Especially in regions with the large young population and

climbing enrolment rate b. E.g South Asia (where enrolment is still less than ½ of

world average), sub‐Saharan Africa (still less than quarter of world average) and the Arab world.

The traditional age‐group for higher education is also broadening:a. The demand from mature students for higher education is

growing in many parts of the world. b. A lasting trend for some time.

Both youth & adults drive demand for HE

11/23/08

The world of Knowledge Economy is changing in itself :

a. HE has become an aspiration for all, and not exclusively for the social elites HE is increasingly perceived as a social, economic and political driving force for progress in developing countries – providing a renewed constituency for scientific development, political democracy and justice, and for the quality of general education

b. Science is increasingly global and increasingly perceived as linked to human, social and economic progress

c. Changes in the constituencies for knowledge (e.g. risk governance is a new field…)

Knowledge economy is changing itself

11/23/08

The 2008 financial crisis and the subsequent public debt crisis had many negative impacts especially on

a. Business innovation and R&D

b. Employment rate : Unemployment of highly skilled has increased Quarterly unemployment rate for high-skilled workers for selected countries

Yet, the crisis and the recovery have been uneven across industries… and certain countries have better resisted the crisis than others: China, Korea Business funded R&D, yearly growth rate remains high

The crisis has changed the settings of the knowledge economy

Overall, in response, governments introduced short- term measures and longer-term reforms, a large bunch of them focusing on HE with:

a. High priority and increased resources allocated to Higher Education

b. Increased budgets for higher education and universities (India, Poland, Sweden, Switzerland, etc.)

c. Development of HE capabilities including infrastructures (Canada, Colombia, France, India, etc.)

d. Maintained or increased hiring of researchers at university during economic downturn (Italy)

e. Changes in the governance of HEIs : Reform of HEIs management and funding: confirmed trend in many countries towards greater autonomy and more competitive grant funding (away from „block‟ funding) – introduction of performance- and indicator-based allocation mechanisms• Strengthen evaluation of HEIs and building evaluation capacity…

In response, Govts introduced recovering measures associated with HE reforms 1/2

Strengthen education for innovation…Improve the teaching of STEM• Earlier STEM education (Colombia, Germany)• New teaching methods: increased hours of instruction (Germany, Ireland, Norway), new curricula, standards (Australia, Ireland, UK), new assessment practices (Austria, Norway, Poland)• Teacher training…

Financial incentives to students (Australia‟s income-contingent student loans, doctoral/postdocs fellowships etc.)• Tutoring (Sweden‟s free remedial classes, etc.), Mentorship, prizes, senior positions (e.g. attract women to S&T studies), Set quantitative targets

Improving the teaching of entrepreneurship: Accelerate knowledge transfer to industry and society, Improving the conditions of technology transfer, Professionalisation, Raise awareness of IPRs in the research community (courses) and the general public (e.g. China: media campaigns and education in primary and high schools)…

In response, Govts introduced recovering measures associated with HE reforms 2/2

All these measures are driven by a strong impulse to Internationalisation which becomes the driver to change:a. Higher Education Internationalisation Agenda / strategy

(Netherlands)

b. Open up educational and research programmes, including funding mechanisms (Australia, Finland, Ireland, Norway and Slovenia)

c. Amended legal and framework conditions to allow foreign researchers and institutions to participate in research programmes and access research infrastructure funded by national sources.

d. Increased presence in foreign countries (Chinese-Danish Centre for Education and Research)

e. Measures to encourage international mobility of researchers and doctoral students abroad and return (grants, bi-national programmes, international collaboration on R&D projects, etc.)

f. Training and education (languages, intercultural skills, etc.)

HE Reforms driving force: internationalisation

The Massification, the advent of the crisis and the ongoing globalisation are interlinked and are evolving hand in hand. We predict that universities, governments or stakeholders will have to cooperate to progress and recover.

a. HE has become an inevitable social response to globalization

b. Globalisation shapes political evolution (and revolution) in the developing world

c. Globalisation will allow for a new political role of interconnected researchers and academics at world level and for renewed North-South HE partnerships

d. It will bring about the conditions for immense science development

e. It opens up new opportunities for socioeconomic and education policies: HE institutions as economic enablers, diversifying and interconnecting education pathways, linking education and work, fostering community action.

Mass + Crisis + Globalisation! 1/3

True, HEIs improve the workforce, create jobs, foster innovation, and attract new business and industry.

However, as globalization has fostered a worldwide market for goods and services, higher education is no longer a resource confined exclusively to the domestic domain.

Both political and economic borders have become more porous, allowing individuals and institutions to move more freely among nations and economies.

The local impact of HE needs to be understood through the global context in which it exists :

a. HEIs attract students and resources from beyond immediate communities, and indeed beyond national borders.

b. They can support the expansion of international trade within their local communities.

c. They play a critical role in developing a workforce that is globally competitive; a workforce that is crucial for helping existing businesses expand internationally and attracting international businesses nearby.

Mass + Crisis + Globalisation! 2/3

HE also serves as a form of international trade in its own right.

a. HE might be considered a tradable service. Indeed, the national estimates of its economic impact have been substantial.

b. In USA, HE consistently ranks among the top ten service exports. (NAFSA 2011), in 2010 – 2011 international students contributed about $28,000 per student to the local community through tuition and fees without including any type of multiplier effect to track those student dollars into local economies,

c. In Canada $30,000 per student to local economies. About 83,000 students worked during their stay, paying about $300 million to the Canadian government in various revenues.

d. HEIS operate physical outposts in more than one nation and each of these outposts exerts its own impact on the economies in which it exists. One aspect is the itnernational branch campus, there are some 200 operating.

Mass + Crisis + Globalisation! 3/3

   While higher education’s international engagements have become much more expansive in the last decade; metrics to assess the full breadth of the economic impact of these engagements have yet to develop (Lane/Owens)

Metrics are lacking re: impacts of internationalisation

 More than one player must be on the chess mat! Countries have taken different approaches to internationalisation ranging from market reliance (higher education competition) to centralised intervention (with binding government regulations).

HEIs have developed their own internationalisation strategies regardless of government policies, often focussing on international student recruitment. As a result, mismatches can arise between national and institutional objectives.

What shall we do?

1. Fostering synergies between government and institutions’ policies

In order to help institutions define effective internationalisation strategies, national policies and country-specific goals for internationalisation should be well-aligned within a comprehensive policy framework. 2. Making the national framework for internationalisation explicit

Governments need to have a clear view on global HE and whether or not they want to participate in a more globalised approach to higher education, informed through dialogue between governments, institutions and other stakeholders. Institutions need to take care to use language accessible to decision-makers in describing their own internationalisation strategies and ambitions.

Governments that analyse both the supply and demand sides of internationalisation will be better placed to understand the driving forces (e.g. dynamic demographics in one country may inflate outgoing student mobility)

4 major policy pointers 1/2

3. Alignin internationalisation with funding challenges Funding is crucial to the internationalisation of higher education and needs to be aligned with the national strategy. Internationalisation’s sustainability, requiring constant commitment to succeed, emerges at a time with fewer financial resources. Investment is needed in advanced internet networks that enable collaboration in research, provide access to specialised instrumentation and encourage collaboration for teaching and learning.

4. Evaluating internationalisation-related impactsGovernments should explore how to measure the effectiveness of internationalisation. Student mobility is a visible and measurable effect,

although it overshadows the other important aspects.

4 major policy pointers 2/2

• Jason Lane, Taya Owens, Measuring the Economic Impact of Higher Education’s International Engagements: Trade and Foreign Direct Investment, Chap 8 http://www.sunypress.edu/p-5608-universities-and-colleges-as-ec.aspx

• J. Lane, Worldwise blog: http://chronicle.com/blogs/worldwise/author/jlane

• Dominique Guellec and Sandrine Kergroach OECD Science, Technology and Industry Outlook 2012: From the higher education perspective. http://fr.slideshare.net/OECDEDU/oecd-science-technology-and-industry-outlook-2012-from-the-higher-education-perspective-dominique-guellec-and-sandrine-kergroach

• Memduh Karakullukçu, Vice Chairman and President of the Global Relations Forum, Turkey -, 2012 http://www.rockinst.org/forumsandevents/oecd/presentations/Memduh_OECD-SUNY_APRIL_12_2012_SPEECH-MAY_2012.pdf

• José Mariano Gago, Where have we got to in attaining and sustaining mass higher education? OECD General Conference 2012. http://fr.slideshare.net/OECDEDU/where-have-we-got-to-in-attaining-and-sustaining-mass-higher-education-jos-mariano-gago

I kindly thank the following contributors…

www.learningavenue.frfhenard@learningavenue.fr

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