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This presentation was prepared for the Diagnostic Workshop with Stakeholders in Cuenca (November 24-25, 2014) in the context of the “Building an Effective Skills Strategy for Spain” project, a collaborative project of the OECD and the Government of Spain. The material was intended as input to the Diagnostic Workshop with Stakeholders and does not aim to provide a comprehensive assessment of Spain’s Skills System. It focuses on the Using Skills pillar of the OECD skills strategy.
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OECD Skills Strategy Building an effective skills strategy for Spain: Effectively Using Skills
Diagnostic Workshop with StakeholdersCuenca, 24-25 November 2014
How to unlock Spain’s full skills potential?
skills.oecd
Better Skills, Better Jobs, Better Lives
Pillar 3: How can a country put skills to effective use?
Help employers to make better use of their employees’ skills
Provide better information about the skills needed and available
Facilitate internal mobility among local labour markets
Create a better match between people’s skills and
the requirements of their job
Increase the demand for high-level skills
Help economies to move up the value-added chain
Stimulate the creation of more high-skilled and high value-added jobs
Foster entrepreneurship
Skills and Innovation
skills.oecd
Better Skills, Better Jobs, Better Lives
Main messages
-Innovation is a broad concept.
5
skills.oecd
Better Skills, Better Jobs, Better Lives
Main messages
-Innovation is a broad concept.
6
“The implementation of a new or significantly improved
product (good or service), or process, a new marketing
method, or a new organisational method in business
practices, workplace organisation or external relations.”
OECD and Eurostat (2005), Oslo Manual: Guidelines for
Collecting and Interpreting Innovation Data. OECD, Paris.
skills.oecd
Better Skills, Better Jobs, Better Lives
How does human capital spur innovation ?
7
-Skilled people create and implement innovations. A 10% increase in theshare of the workforce with at least a college degree in US cities raises patentingper capita by about 10% (Carlino and Hunt, 2009).
-Skilled people help absorb innovations. Innovation in firms isparticularly associated with in-house development of skills, rather than theiracquisition through hiring, owing to the former’s effects on absorptive capacity(Jones and Grimshaw, 2012).
-Synergies with other innovation inputs. For instance, the uptake andproductive use of ICTs significantly influenced by management and employeeskills (Gretton et al, 2004).
-Skills are crucial to enterprise growth and survival. Entrepreneurialactivity is often a carrier of innovation and structural economic change.
-More skilled users and consumers of products and services providesuppliers with ideas for improvement (Von Hippel et al, 2011).
skills.oecd
Better Skills, Better Jobs, Better Lives
Features of Innovation in Spain
8
skills.oecd
Better Skills, Better Jobs, Better Lives
Gross domestic expenditure on R&D, 2001 and 2011As a percentage of GDP
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0
1
2
3
4
5
%2011 2001
Source: OECD, Main Science and Technology Indicators
Database, www.oecd.org/sti/msti.htm, June 2013
skills.oecd
Better Skills, Better Jobs, Better Lives
Patents and trademarks per capita, 2009-11
Average number per million population
10
Source: Source: OECD, Patent Database, June 2013; US Patent and Trademark Office
Bulk Downloads: Trademark Application Text hosted by Google, May 2013;
OHIM Community Trademark Database CTM Download, May 2013; JPO, Annual Reports
2001-12, June 2013.
ARG
AUSAUT
BEL
BRA
BRIICS
CAN
CHE
CHL
CHN
CZE
DEU
DNK
ESP
EST
EU28FIN
FRAGBR
GRC HUN
IND
IRL
ISL
ISR
ITAJPNKOR
LUX
NLD
NOR
NZL
OECD
POL
PRT
RUS
SAU
SVK
SVN
SWE
TUR
USA
ZAF
0
1
10
100
0 1 10 100
Triadic patent families per capita
Trademarks abroad per capita
500
500
IDN
Axes in logarithmic scale
MEX
2009-11
skills.oecd
Better Skills, Better Jobs, Better Lives
However, across the OECD area many innovating firms don’t invest
in R&D. Their innovation is driven by Knowledge-based Capital.
11
skills.oecd
Better Skills, Better Jobs, Better Lives
1
2
What is knowledge-based capital (KBC) ?
Computerised information
Innovative property
Economic competencies
skills.oecd
Better Skills, Better Jobs, Better Lives
1
3
Computerised information
Innovative property
Economic competencies
Software and databases
What is knowledge-based capital (KBC) ?
skills.oecd
Better Skills, Better Jobs, Better Lives
1
4
Computerised information
Innovative property
Economic competencies
Copyrights, patents, trademarks, designs
T M
What is knowledge-based capital (KBC) ?
skills.oecd
Better Skills, Better Jobs, Better Lives
1
5
Computerised information
Innovative property
Economic competencies
(brand equity, firm-specific human capital, business networks, organisational know-how that increases enterprise efficiency,
etc.)
What is knowledge-based capital (KBC) ?
skills.oecd
Better Skills, Better Jobs, Better Lives
Business investment in KBC and tangible assets (% adjusted GDP, 2010)
Source: OECD calculations based on INTAN-Invest, Eurostat and multiple national sources.
16
KBC accounts for near to or over half of all
business investment in several countries
0%
5%
10%
15%
20%
25%
30%
35%
Tangible capital Computerised information Innovative Property Economic Competencies
skills.oecd
Better Skills, Better Jobs, Better Lives
Knowledge-based capital related workers, 2012
As a percentage of total employed persons
17
Source: OECD, based on United States Occupational Information Network Database, US Current
Population Survey and European Union Labour Force Survey, June 2013.
0 5 10 15 20 25 30
TUR
SVK
ITA
PRT
HUN
ESP
GRC
DNK
POL
CZE
LUX
AUT
IRL
FIN
SVN
EST
BEL
NLD
SWE
DEU
FRA
NOR
ISL
GBR
USA
Organisational Capital Computerised Information
Design Research & Development
Overlapping assets
%
skills.oecd
Better Skills, Better Jobs, Better Lives
Many countries worry that interest in science is low and that too few
students – particularly women – pursue studies in science and
engineering.
18
skills.oecd
Better Skills, Better Jobs, Better Lives
Graduates at doctorate level, 2011
By field of education
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Source: OECD, based on OECD Education Database and national sources, July 2013.
0
20
40
60
80
100
%
Sciences Engineering, manufacturing and construction
Health and welfare Humanities, arts and education
Social sciences, business and law Services and agriculture
Share of new science and engineering doctorates awarded to women
skills.oecd
Better Skills, Better Jobs, Better Lives
Researchers by sector of employment, 2011As a percentage of total researchers, full-time equivalent
20
0
20
40
60
80
100
% Business enterprise Government Higher education Private non-profit Share of business enterprise in total R&D expenditures
OECD, Research and Development Statistics Database, www.oecd.org/sti/rds, June 2013.
skills.oecd
Better Skills, Better Jobs, Better Lives
Young firms contribute disproportionately to job
creation (and radical innovation)
21Source: OECD, Dynemp project. www.oecd.org/sti/ind/dynemp.htm
OEC
D S
kills
Str
ateg
yB
ette
r Sk
ills,
Bet
ter
Job
s, B
ette
r Li
ves
skill
s.o
ecd
Questions:
• In your experience, what are the primary barriers to maximising the
use of skills in the workplace?
• What are the concrete reasons why particular groups in Spain, such as
women, seem to have a lower use of skills at work?
• What more could be done to increase skills utilisation?
Use of Skills at Work
Source: OECD Survey of Adult Skills (PIAAC), 2013Note: PIAAC includes detailed questions about the frequency with which respondents perform specific information-processing as well as generic tasks in their jobs.A value of 0 indicates that the skill is never used; 1: used less than once a month; 2: used less than once a week but at least once a month; 3: used at least once a week but not every day; 4: used every day.
Ejercicio 6.1: Uso de competencias
OEC
D S
kills
Str
ateg
yB
ette
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ills,
Bet
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Job
s, B
ette
r Li
ves
skill
s.o
ecd
Questions:
• In your experience, what are the barriers for business to invest
in innovation (new products, processes, services or forms of
organisation), considering in particular the low investments in
human capital?
• What could be done to improve business investments in
innovation?
Business investments in knowledge-based capital and tangible assets
Source: OECD STI Scoreboard 2013
Ejercicio 6.2: Uso de competencias
OEC
D S
kills
Str
ateg
yB
ette
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ills,
Bet
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Job
s, B
ette
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ecd
The graph for discussion is:
Questions:
• In your experience, what are the barriers for new firms seeking to hire the
skills they need?
• Is it straightforward for new firms to recruit young highly-skilled graduates ? If
not, why, and what might be done to improve on the current situation ?
Ejercicio 6.3: Uso de competencias
Source: OECD, Dynemp project. www.oecd.org/sti/ind/dynemp.htm
OEC
D S
kills
Str
ateg
yB
ette
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ills,
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s, B
ette
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s.o
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Ejercicio 6.4: Uso de competencias
Question:
• Do skills also represent a barrier to entrepreneurship – and to
business growth - in Spain ? If so, in what ways ?
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Forcorporations
For soleproprietor firms
In servicessectors
Licences andpermits system
Rules andprocedures²
Legal barriers Antitrustexemptions³
Barriers innetwork sectors
Administrative burdens on startups Complexity of regulatoryprocedures
Regulatory protection of incumbents
Barriers to entrepreneurship, 2013
SpainOECD
Source: OECD Economic Survey of Spain, 2014