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OECD Skills Strategy Building an effective skills strategy for Spain: Effectively Using Skills Diagnostic Workshop with Stakeholders Cuenca, 24-25 November 2014

Using Skills in Spain – Workshop with Stakeholders

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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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Page 1: Using Skills in Spain – Workshop with Stakeholders

OECD Skills Strategy Building an effective skills strategy for Spain: Effectively Using Skills

Diagnostic Workshop with StakeholdersCuenca, 24-25 November 2014

Page 2: Using Skills in Spain – Workshop with Stakeholders

How to unlock Spain’s full skills potential?

Page 3: Using Skills in Spain – Workshop with Stakeholders

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

Page 4: Using Skills in Spain – Workshop with Stakeholders

Skills and Innovation

Page 5: Using Skills in Spain – Workshop with Stakeholders

skills.oecd

Better Skills, Better Jobs, Better Lives

Main messages

-Innovation is a broad concept.

5

Page 6: Using Skills in Spain – Workshop with Stakeholders

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.

Page 7: Using Skills in Spain – Workshop with Stakeholders

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).

Page 8: Using Skills in Spain – Workshop with Stakeholders

skills.oecd

Better Skills, Better Jobs, Better Lives

Features of Innovation in Spain

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Page 9: Using Skills in Spain – Workshop with Stakeholders

skills.oecd

Better Skills, Better Jobs, Better Lives

Gross domestic expenditure on R&D, 2001 and 2011As a percentage of GDP

9

0

1

2

3

4

5

%2011 2001

Source: OECD, Main Science and Technology Indicators

Database, www.oecd.org/sti/msti.htm, June 2013

Page 10: Using Skills in Spain – Workshop with Stakeholders

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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

Page 11: Using Skills in Spain – Workshop with Stakeholders

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

Page 12: Using Skills in Spain – Workshop with Stakeholders

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Better Skills, Better Jobs, Better Lives

1

2

What is knowledge-based capital (KBC) ?

Computerised information

Innovative property

Economic competencies

Page 13: Using Skills in Spain – Workshop with Stakeholders

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Better Skills, Better Jobs, Better Lives

1

3

Computerised information

Innovative property

Economic competencies

Software and databases

What is knowledge-based capital (KBC) ?

Page 14: Using Skills in Spain – Workshop with Stakeholders

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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) ?

Page 15: Using Skills in Spain – Workshop with Stakeholders

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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) ?

Page 16: Using Skills in Spain – Workshop with Stakeholders

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

Page 17: Using Skills in Spain – Workshop with Stakeholders

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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

%

Page 18: Using Skills in Spain – Workshop with Stakeholders

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

Page 19: Using Skills in Spain – Workshop with Stakeholders

skills.oecd

Better Skills, Better Jobs, Better Lives

Graduates at doctorate level, 2011

By field of education

19

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

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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.

Page 21: Using Skills in Spain – Workshop with Stakeholders

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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

Page 22: Using Skills in Spain – Workshop with Stakeholders

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

Page 23: Using Skills in Spain – Workshop with Stakeholders

OEC

D S

kills

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ills,

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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

Page 24: Using Skills in Spain – Workshop with Stakeholders

OEC

D S

kills

Str

ateg

yB

ette

r Sk

ills,

Bet

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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

Page 25: Using Skills in Spain – Workshop with Stakeholders

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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