Nation of Innovation - Aruba Opportunity Plan v2 (Commission Nation of Innovation)

Commission Nation of Innovation

Opportunity Plan Version 2.0

SMART PEOPLE + SMART IDEAS = NATION OF INNOVATION

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Nos Aruba 2025

SMART PEOPLE + SMART IDEAS = NATION OF INNOVATION

Commission Nation of Innovation

Opportunity Plan Version 2.0 October 12, 2009 The information contained in the paper may be published and copied for educational and noncommercial purposes, provided the source is acknowledged.

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Content Preface ........................................................................................................................... 3

1. Executive summary .................................................................................................... 4

2. Background information ............................................................................................ 6

2.1 Introduction .......................................................................................................... 6

2.2 Challenges ............................................................................................................ 6

2.3 Regulatory and institutional framework .............................................................. 7

2.4 Sustainable development ..................................................................................... 7

2.5 Strengths .............................................................................................................. 8

2.6 Opportunities........................................................................................................ 8

2.7 Innovation ............................................................................................................ 9

2.8 Present stakeholders ........................................................................................... 10

2.9 Structure of the report ........................................................................................ 12

3. Aspiration and specific objectives for 2025 ............................................................. 13

4. Social Architecture ................................................................................................... 14

4.1 Key stakeholders ................................................................................................ 14

4.2 Relationship between these stakeholders (formal and informal) ....................... 15

4.3 The influence stakeholders have on the desired outcome of our opportunity ... 15

4.4 The influence stakeholders have on each other ................................................. 15

4.5 Detailed social architecture ................................................................................ 16

5. Desired outcomes .................................................................................................... 24

5.1 Key achievements .............................................................................................. 24

5.1.1 Innovative (economic) environment ........................................................... 24

5.1.2 Highly-developed/knowledgeable human capital ....................................... 26

5.1.3 Sustainable Technology/ICT networks ....................................................... 27

5.1.4 Sustainable society ...................................................................................... 28

5.2 Alignment with different sustainability themes and statements ........................ 29

6. Main stakeholders ................................................................................................... 30

7. Actions to be done ................................................................................................... 33

7.1 Creating an innovative economic environment ................................................. 33

7.2 Building up a high-developed human capital .................................................... 34

7.3 Developing sustainable technology & ICT ........................................................ 35

7.4 Sustainable society ............................................................................................. 36

8. Strategic resources needed ..................................................................................... 38

8.1 Tangible resources ............................................................................................. 38

8.2 Intangible resources ........................................................................................... 39

8.3 Natural advantages ............................................................................................. 39

9. Road Map to achieve aspiration statement (draft) ................................................. 40

10. Working with other commissions .......................................................................... 42

11. Robust and fragile elements .................................................................................. 48

12. Detailed Implementation/Action plan 2010-2013 ................................................ 49

13 Monitoring and evaluation 2010-2013 ................................................................... 56

Annex 1: Conceptual framework: sustainability through innovation............................ 0

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Preface

The commission Nation of Innovation (NOI) is one of the commissions forming part

of the project Nos Aruba 2025. The objective of Nos Aruba 2025 is the

institutionalization of an integrated and strategic planning process where the

coordination between the relevant stakeholders is encouraged taking into

consideration guidelines for sustainable development. The most important outcome of

Nos Aruba 2025 is the formulation of a National Integrated Strategic Plan (NISP).

The definition of this plan will stimulate the coordination between the concerned

stakeholders.

The primary goal of the commission NOI is to develop a plan and stimulate ideas to

promote innovation and entrepreneurship on Aruba in order to reach sustainable

economic prosperity for our citizens. The commission believes that Aruba can only

prosper in the times ahead if the talents of the country’s people are unlocked.

Innovation should flourish across every area of the island’s economy, and in

particular in the industries where high value added businesses can prosper and grow.

Innovation will be the key to some of the biggest challenges facing Aruba’s society,

like economic diversification, energy development, sustainable food supply and other

areas that require long-term sustainable solutions.

We can innovate by investing in people and knowledge, unlocking talent at all levels,

expanding our research capabilities, enhance collaboration between key stakeholders,

elevate awareness and provide incentives to stimulate innovative ideas and initiatives.

In all this there is an exciting challenge for the private and public sector, third sector

organizations, schools and universities.

A small group of motivated individuals can spark off innovative thinking, but only if

we all work together (individuals, government, private sector and NGO’s) we can

create a Nation of Innovation by 2025.

October 2009

Commission members:

Lucia White (chairwoman)

Mercedes Levenston-Willems (secretary)

Edward Erasmus

Roxanne Wolff

Regine Croes

Marisa de Kort (PMT member)

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1. Executive summary

In 2025 Aruba will be the place where innovative people will share innovative ideas

in an innovation-friendly environment. Aruba will be an internationally known center

for innovative businesses. The island has all resources necessary to continue

improving and to diversify the economy. As a small island, Aruba will be an

international example of how to benefit from innovative sustainable technologies and

ICT networks on all levels in daily life. A well developed economy, high quality jobs

and employees who are viewed as precious human capital. Continuous investments

are made, and Arubans pro-actively create win-win situations and (new) business

opportunities. To become an innovative country, the commission will focus on four

key achievements, which are:

1. To create an innovative economic environment;

Creating an environment that is featured by a collaborative and synergetic approach to

economic development. Entrepreneurs are considered as the drivers for innovation.

Two crucial aspects are accentuated to accomplish this:

Generating awareness for innovation

Developing (inter-)organizational skills and stimulate attitudes for

management of innovation.

2. To build up high-developed human capital to sustain the workforce;

This achievement focuses on the attraction of talented people and also on the

elevation of the level of education of the workforce in order to have high developed

innovative people to sustain economic growth.

Attracting (local) talented people (knowledge immigrants)

Elevating level of education of the workforce

Fostering innovative thinking

3. To attract sustainable technology and ICT to benefit the community and that will

function as a pull-factor for further innovation;

To develop an Aruban community in which sustainable technology and ICT can

develop and flourish to the benefit of all Aruban citizens. By facilitating access to

these technologies, the Aruban people, entrepreneurs and government institutions will

be able to boost their innovative capacity to the wellbeing of all.

4. To develop and maintain a sustainable society.

A society that strives to be sustainable accepts a duty to seek harmony with other

people in that society and with nature. Innovation is driven towards long-term

sustainable solutions for current and future challenges. Lifestyles will adapt and

innovative development paths will be created to respect and work within the island’s

nature resources. Key stakeholders in society will promote values that support these

new ethics and discourage those that are incompatible with a sustainable way of life.

The social architecture will give a description of future relationships needed between

stakeholders and what is necessary in order to achieve the sustainability of the

aspiration statement of this opportunity plan. A list of achievements is given in the

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aspiration statement. Furthermore a link will be made between the aspiration

statement, the achievements and the sustainability themes and statements that were

brought forward by the members of the community.

Finally, the action plan and the roadmap will be presented, providing an overview of

findings and actions to be taken for implementing and promoting innovation in Aruba.

Afterwards a detailed implementation plan will be presented, and measures to be

taken for evaluation and monitoring.

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2. Background information

2.1 Introduction

By hard work, determination and the capability of joining efforts in trying times, the

Aruban people have been able to make Aruba one of the most successful islands in

the Caribbean region. One of the most significant achievements is the Aruban-type

affluent society with a high level of education, social and health-care services

available to everybody, little or no unemployment and the high standard of living for

a large group of Arubans. The elements of Aruba’s positive core, which include the

well-developed tourism industry, international orientation, social security system,

political stability, safe and secure environment, hospitable multi-cultural population

and values together form the social heritage have all supported our success.

2.2 Challenges

Despite the many positive aspects, Aruba is facing serious challenges. The chosen

path for further economic development, being tourism, is placing a tremendous

pressure on our precious resources in both a direct form and an indirect form. Hotel

buildings and dedicated beaches reduce our natural resources and the import of

migrants to fill job openings puts a considerable strain on our infrastructure and

increases the need for more housing, consumption, waste management, energy usage,

education, social security system and health care. Economic development through

tourism also contributed to a sense of loss of cultural heritage and an increased

income gap.

Furthermore entrepreneurial development has been lacking a sense of creativity, since

most small and medium enterprises have been focusing solely on providing the same

products and services towards the same target groups (tourists), resulting in a

saturated ‘more of the same’ market. The consequence of this is multiple: capital

investments of SME’s generate low or negative rate of return, little variation in terms

of employment opportunities for the young generation, low productivity, low

elasticity (i.e. ability to adapt to a changing environment), lack of knowledge

development, and a high focus on competition instead of developing new industries,

etc.

Finally, the current economic structure which is featured by a flat employment

pyramid with a very ‘broad’ bottom consisting of a large number of people with low

income creates many challenges for the social system. One clear example is the

General Medical Insurance Fund (AZV), which is operating with a huge deficit not

only due to the rising healthcare costs, but also due to the low premium contribution

of the large group of people earning a low income compared to their level of

consumption of healthcare services covered by the fund. Another consequence of the

relatively few highly skilled and highly paid jobs is a lack of drive for higher educated

and experienced Arubans to return to their country.

Research proves that economic wealth, potential and survival of countries is directly

related to the education and skills of its people (see for example: Barro 1997;

Dickens, et al 2006). The current level of education on Aruba is extremely low and

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government investments in the segment are much lower than can be expected to

promote a growth in GDP based on human capital, our only core natural resource.

2.3 Regulatory and institutional framework

Regulatory framework

The current regulatory framework is insufficient, and even counterproductive, to

introduce many forms of innovation into the business sector, and the population in

general.

Labor laws, the reigning vision on human resource management and the traditional

labor unions, are not conducive to innovation. Productivity is low and although many

voices have been raised to improve this, few concrete measures have been taken. Too

often labor is seen as a ‘cost’ of doing business, rather than an asset to be invested in.

The immigration laws with a maximum stay of three years do not promote

productivity, quality and specialization within the imported labor force. Nor is it

attractive for investors. The investors themselves are made to feel unwelcome, and it

is very difficult to bring in the necessary knowledgeable employees to at least start up

a business. The proposed change to be more flexible towards ‘knowledge immigrants’

(kennismigranten) still does not solve the problem within the system itself (slow and

obscure), nor does it take the investors themselves into consideration..

The fiscal changes that have taken place (IPC) have not shown the expected results.

Aruba’s financial industry is small compared to Curaçao, for example, but has definite

potential. The introduction of the turnover tax (BBO) for exports (1% for goods, 3%

for services) is detrimental for Aruban businesses considering expanding across the

borders.

Institutional framework The institutional framework has most of the necessary elements in place to support

economic growth, within the government as well as in the private sector (departments

and organizations). However, to create the synergy and creative energy necessary for

(social and) economic growth and diversification, communication and cooperation

between the elements is sorely lacking. There is an atmosphere of distrust and

negativity between the private and public sector and within the public sector. The

public sector furthermore is challenged by limited funds to allocate for projects

regarding economic diversification and growth (such as Investment Promotion). The

current economic downturn has forced the local business community to focus on

‘survival’ rather than growth.

2.4 Sustainable development

In the light of the current global financial crisis and the existing challenges to promote

economic growth and diversification, we are facing a fundamental sustainability

question:

How can we maintain and finance an affluent society given our limited (physical)

resources, our mono-industry focus (tourism) and a frail social system due to an

unbalanced economic structure?

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2.5 Strengths

The challenge is to expand upon existing strengths and improve these where

necessary to be able to grasp and create opportunities. Emphasis should be put on

creating a spin-off and synergy in social-economic terms to expand the basis of

generating (future) wealth for all Arubans.

The size of Aruba, small and orderly, is an advantage that would make many other

countries jealous. The current strengths are generally the same strengths that have

already made Aruba one of the most attractive and successful tourist destinations in

the world.

Examples of our strengths are:

Service-based economy

Multi-lingual and literate society

Political stability

Independent judicial system

Sound banking system

Telecommunications

International orientation

Part of the Kingdom of the Netherlands

Safety and security

However, there is a need to expand on these strengths. Examples of necessary

additions are:

Innovative fiscal products to stimulate investments and innovation

Labor laws and human resource management that promote productivity and

flexibility

Access to investment capital facilities

Higher education levels

Cooperation and communication between stakeholders

Entrepreneurial development focused on economic diversity

2.6 Opportunities

The opportunities that can be tapped into right away are the promotion of local

segments of the economy and the attraction of international investors to benefit from

Aruba's geographical location, in combination with fiscal and other advantages (the

free zone).

Short term opportunities are identified and described in the Government policy

document ‘Vision, Curashi y Disciplina’ (2002). Focus points are SME’s, logistics

and transport, financial services sector and the ‘knowledge economy’. Cross-sector

issues to support these and other developments are also described, such as fine-tuning

of public and private sector development, company establishment policy, fiscal

climate, statistical and financial-economic information, international associations and

agreements, etc.

Other economic diversification opportunities are described in the FIAS report (2007)

such as developing medical tourism and education opportunities.

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In the meantime, additional opportunities have been identified, such as alternative

energy and showcasing. The abolition of free zones on the BES-islands may offer an

opportunity and the increased trade between Latin America and the EU offers definite

possibilities. The addition of a solid and growing International Financial Center will

assist in making Aruba more attractive for international businesses. The new free zone

legislation offers the possibility to offer services from the free zone, a large step in

modernizing the free zone and diversifying the activities.

The importance of not only diversification, but also innovation, is stressed in the

report ‘Vision pa Gobernacion di Aruba 2009-2013’ (May 2009) written by the

Chamber of Commerce and Industry. Innovation and change is described in regards to

the investment climate, integral planning, spatial planning and pro-active promotion

of Aruba as a tourist and business destination.

The opportunities are there. However, they are not being realized. Many different

issues that have delayed or prevented action have been described above.

One of the fallacies in current thinking is the misassumption that, by realizing these

and other economic opportunities, economic development will follow and continue.

National economic planning, and regular business planning, makes use of

assumptions and models, and when these assumptions fail and the models don’t fit,

development stumbles and/or halts1. There needs to be a continuous process of

innovation in thinking and action.

2.7 Innovation

Definition and building blocks

To ‘boost’ the power of economic development and growth we have added the

element of innovation. Traditionally the term innovation has been defined as “the act

or process of inventing or introducing something new” or as “a new invention or way

of doing something”.2

From an organizational perspective innovation can be defined as follows:

“Innovation . . . is generally understood as the successful introduction of a new thing

or method . . . Innovation is the embodiment, combination, or synthesis of knowledge

in original, relevant, valued new products, processes, or services.” (Luecke and Katz,

2003)

In this report innovation is viewed from a broader perspective in the sense that not

just business organizations, but the whole community (government, NGO’s and

inhabitants included) contribute to the further innovation of all areas of society to

benefit of prosperity. In developing innovation on a nation-wide scale there are

certain ‘ingredients’ that need to be present. In his opening speech during the Intel

Developer Forum 2008, Craig Barret, Chairman of Intel brought forward in a very

comprehensive way the three key aspects required for innovation and economic

success in this era. A fraction of Mr Barret’s statement is quoted below:

1 What if the world had listened to this: “There is no reason anyone would want a computer in their

home.” — Ken Olson, president, chairman and founder of Digital Equipment Corp (DEC), maker of

big business mainframe computers, arguing against the PC in 1977 2 Encarta® World English Dictionary.

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“What’s the right formula to ensure your economic success?..there are three things

you can focus on: you need smart people (good education system), you need smart

ideas (you need to invest in R&D) and you need the right environment for

collaboration to get smart people together with smart ideas to invest in innovation.”

The commission believes that these three key aspects ‘smart people’, ‘smart ideas’

and ‘the right environment for collaboration’ are the building blocks for developing

innovation for Aruba.

It should be emphasized that innovation should not be seen as a goal on itself, but as a

means to enable Aruba to pursue sustainable economic development on the long run

by creating a ‘state of mind’3 so that society as a whole - individuals, private and

public sector - can grasp and develop new opportunities. This will ensure the

sustainability of future developments.

International best practices A very interesting article published in the Harvard Business Review4 describes the

strategies undertaken by very successful innovative societies, such as Singapore,

China, Finland, Japan, etc. An interesting aspect is that innovation and innovative

success do not directly correlate with high-level technology. These countries’

approaches to innovation strategy are characterized by “creating forward-looking

education, and talent development policies, pouring money into large-scale initiatives,

and snapping up new assets in the form of intellectual capital and infrastructure”. The

companies seeking innovative environments, such as high tech, will seek out these

strategies and use them to their business advantage.

The article further describes four different models that various countries have chosen

as the basis of their success. Aruba is in the position to study the success factors and

combine them with our natural advantages, creating our own special brand to sell. It is

interesting to note that the huge success of Finland is the result of “strong

governmental stewardship”, while in other cases education facilities or fiscal facilities

are crucial. This proves the synergy necessary with the other Nos Aruba 2025

commissions.

2.8 Present stakeholders

There are different stakeholders that can be identified by the commission as pivotal in

terms of the resources they possess and the contribution they can make to the

realization of the commission’s goals. Below is a summary of the key present

stakeholders, with a brief explanation of their current attitudes and roles (as perceived

by other stakeholders) as well as an outline of their importance (now and in the

future) in relation to the commission’s opportunity plan as outlined in this report.

3 "Without changing our patterns of thought, we will not be able to solve the problems we created with

our current powers of thought" Albert Einstein 4 “Tapping the World’s Innovation Hot Spots”, John Kao, Harvard Business Review, March 2009

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Stakeholders Current attitudes and roles5 Importance in relation to the

commission’s opportunity plan Parliament &

council of ministers

Focus on short-term solutions;

Concentration on balanced budget:

increasing income through higher

taxes and cutting expenditures (esp.

investments). View utility companies as ‘cash

cows’. ‘Our way or the highway’ attitude.

Long-term vision: balanced economy;

focus on innovation and provide the

means, incentives and support to develop

new economic industries. Conservation of

positive core Reduce barriers and duties for the

development of green energy projects

(domestic and commercial). Fostering mutually respectful diverse

ways of connecting with relevant partners

in community (private sector & NGO’s) Government

Departments Fragmented, short-term policy; low

productivity; insufficient funding Action-based approach to clear priorities

Chamber of

Commerce/ATIA &

other business

associations

Advisory role in government

decisions is often disregarded. Limited power to influence

outcomes in macro-economic

context.

Important partners in public-private

dialogues, focusing on economic

sustainability and promotion of innovative

entrepreneurial development.

ATA/AHATA Focus solely on tourism in

quantitative terms. Tourism

industry is separate from other

industries.

Exploring synergy between tourism and

other industries; innovating the tourism

product. Conserving the positive core.

Utility providers

Slow reaction to the development of

green energy. Cost-benefit is measured based on

‘here and now’ instead of ‘future

trends’.

Focus on green energy and work towards

independence from foreign fossil fuel by

investing in sustainable local resources to

generate energy and water supply.

Department of

education, schools &

universities

Focus on a one-size-fits-all

selective foreign-oriented learning

environment where students have to

accommodate the system for the

benefit of the ‘happy few’. Under

funded.

Focus on customized learning

environments where the best in each

individual is nurtured for the benefit of

the whole community.

NGO’s Advisory role in government

decisions is often disregarded. Limited power to influence

outcomes in macro-economic

context.

Important partners in public-private

dialogues, focusing on community based

initiatives and innovative entrepreneurial

development.

Students / next

generation Lack of awareness and

involvement on sustainable

development themes. Lack of

positive role models.

Future members of the workforce,

innovators, co-creators of new industries

embracing sustainable development.

Trade unions Narrow HRM vision. Protect

short term ‘personal’ interests.

Innovators concerning productivity and

labor motivation; educators. Partners in

public-private dialogue. ICT Providers Local instead of international

focus, not making use of

available technologies. Low

standards, too expensive.

Provides necessary technology to support

innovation; international focus.

5 According to stakeholders

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2.9 Structure of the report

The report starts with the aspiration statement of the commission (Chapter 3).

In Chapter 4 the social architecture will be presented, which is a description of the

future relationships needed between stakeholders and what they must do including

their role in achieving the sustainability of the aspiration statement of this opportunity

plan.

Chapter 5 will elaborate on the desired outcomes. The desired outcomes entail the list

of achievements the commission aims for based on the aspiration statement.

Furthermore a link will be made between the aspiration statement, the achievements

and the sustainability themes and statements that were brought forward by the

members of the community.

Chapter 6 will describe the main stakeholders needed to obtain the desired outcomes

outlined in the previous chapter.

In Chapter 7 the action plan will be presented, which includes a list of concrete

actions to be done to achieve the desired outcomes, based on the question: what-who-

when.

Chapter 8 will focus on the strategic resources that are needed to execute the actions

provided in the previous chapter.

Chapter 9 will present the Roadmap, which gives an overview of all the information

gathered from the previous chapters grouped by Social, Economic, Environment and

Political (SEEP) categories in the form of a wedge.

In Chapter 10 an overview is provided of the commissions with who the commission

Nation of Innovation will have to collaborate and synergize in order to realize certain

achievements or actions stated in this plan.

Chapter 11 will present the robust and fragile elements of the opportunity plan based

on scenario stress tests performed. Some actions are provided to make the fragile

elements achievable.

A detailed implementation/action plan will be presented in Chapter 12 for the period

of 2010 – 2013.

Lastly, in Chapter 13 a detailed description is provided how monitoring will take

place, including actions, indicators for evaluation and monitoring and the timeframe.

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3. Aspiration and specific objectives for 2025

This chapter highlights the aspiration statement of the commission. The aspiration

statement is a description of how the commission sees Aruba in 2025 and which key

aspects contribute to the country’s success.

The aspiration of the commission is as follows:

Smart People + Smart Ideas = Nation of Innovation

In 2025 Aruba will be the place where innovative people will share innovative ideas

in an innovation-friendly environment.

Aruba will be an internationally known center for innovative businesses, offering a

variety of services, based on our geographical location, our friendly multicultural,

multinational and multilingual community and our stable political and trustworthy

judicial system. Our well-developed tourism services, our favorable fiscal and

financial incentives and our global connections are used in synchronized way to

continuously improve and diversify our economy.

As a small island state we are an international example of how to benefit from

innovative sustainable technologies and ICT networks on all levels in daily life.

International businesses are eager to showcase their most innovative products and

services on our island within a unique concept of a real-life Caribbean EPCOT

Center. We tickle international curiosity and provide a spin-off for high quality

education and tourism. We provide the best regional transportation services and are a

center of global export for goods and services.

Our well developed economy is providing high quality jobs and employees are

viewed as precious human capital. Therefore, continuous investments are made to

develop human potential and Aruban citizens will be innovative global citizens, and

through life-long learning remain well informed and opinionated and are able to

continuously and pro-actively create win-win situations and (new) business

opportunities.

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4. Social Architecture The social architecture describes the future relationships needed between (future)

stakeholders and what they must do including their role for the sustainability of the

aspiration of the opportunity described by the commission.

4.1 Key stakeholders

The key stakeholders that need to be involved or need to exist in the future are listed

below:

Government/semi-

government Private sector

NGO’s and private citizens

Parliament

Government (economy,

education, fiscal, legal,

infrastructure, spatial

planning, intellectual

property)

Community centers and

libraries for life long

learning

(Higher) education

providers

Early childhood education

providers

Public healthcare providers

Business organizations

(ATIA, Mambo, SNBA,

etc, old and new forms)

Chamber of Commerce

and Industry

Utility providers

ICT providers

Investment fund providers

Banks

Foreign and local

entrepreneurs

Social entrepreneurs

(Digital) press & media

Research & Development

facilities

E-learning facilities

providers

(Renewable) energy

providers

Healthcare Systems (for

profit)

Education institutions,

language centers (for

profit)

Free Zone Aruba

AAA

APA

Transportation providers

Architects/construction

companies

Insurance Providers

NGO’s (environment,

business, education,

human resources,

consumers)

AHATA/ATSA

Role models, action-

based leaders (business,

education, environment,

health, sports, social)

Students/next generation

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4.2 Relationship between these stakeholders (formal and informal)

The relationship between the stakeholders is characterized by a shared vision

concerning the sustainable development of Aruba, and the belief and willingness to

act in creating economic activities to support this vision.

The stakeholders all have a vested interest in creating and maintaining an intensive

dialogue regarding all issues related to sustainable development. In general, the

dialogue has the form of a ‘platform’, covering various issues, such as Education,

Health Care, Energy, etc. An important platform to be developed for the projects as

described in the opportunity plan is an ‘Investment Platform’, exploring and attracting

inward investment and promoting export.

Participants partake in the platform discussions based on generally accepted

responsibilities and competencies.

4.3 The influence stakeholders have on the desired outcome of our opportunity

In general terms the influence stakeholders have on the desired outcome can be

summed up as follows:

Government: provides the policy framework and collective means

Private sector: creates, facilitates and makes use of (economic)

opportunities

NGO’s/private citizens: monitors the vision and tests plans and projects for

sustainability, can partake in developing and managing

economic opportunities

4.4 The influence stakeholders have on each other

Each stakeholder is a stakeholder for the precise fact that they create and/or control

one or more of the strategic resources, and can individually influence the outcome by

participating or withholding support.

Optimal cooperation and gearing the activities to one another will guarantee effective

and efficient outcomes, but also requires communication. The platforms should be

seen as the means to create the necessary communication between the various

stakeholders. The synergy that is created through dialogue and cooperation is the

greater sum of the individual participants.

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4.5 Detailed social architecture

Stakeholders Power to

advance

actions

Interest

in the

aspiration

Role/involvement in

execution of actions

Influence on other

stakeholders

Relationship with

other stakeholders6

Aspiration for 2025

Parliament &

council of

ministers

High High

(political

gain)

Initiate and pass

legislation/determine

policy priorities and

allocate funds (budget)

High level of influence.

Proper legislation,

policy and allocated

funds can greatly help

stimulate innovation.

Formal. They respect

and support the role of

private sector as drivers

for innovation, as well

as the role of NGO’s

and private citizens.

Partnerships..

Parliament & council of

minister embrace

innovative initiatives and

priority is given to

legislation and budgetary

funds to support new

ideas and industries.

Community

centers and

libraries for life

long learning

Medium High Support the formation

of human capital

Low. Facilitate learning

opportunities. Passive

approach to

stakeholders

Formal and informal.

Partnerships. Participate

in dialogue, initiate

projects and respond to

specific requests.

Attract and stimulate

teachers and students

from the general

population.

Professionally developed

institutions providing

high quality and demand-

driven learning programs

to the benefit of the labor

force and community in

general

(Higher)

education

providers


of human capital


opportunities. May

contribute to

development of

research programs.


Partnerships. Participate

in dialogue, initiate

projects and respond to

specific requests.


multi-functional





6 We assume that the stakeholders will have developed the social architecture as described in 4.2-4.4. Dialogue and formal platforms have been instituted.

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general. Actively

involved in research to

the benefit of general

interest.

Early childhood

education

providers

Low High Contribute to the early

development of

innovative skills and

attitudes

Low. Initiate learning

curiosity during early

childhood.


Participate in dialogue,

initiate projects and

respond to specific

requests.



high quality

developmental programs

for early childhood care

and education to both

children and parents

(Public)

healthcare

providers

Medium High Develop opportunities

to expand services

based on innovation and

cross-border supply of

health care.

Medium. Drivers for

innovation and

improvement of the

healthcare industry.




respond to specific

requests.

Offer top quality

healthcare to the local

population, support

medical tourism

Business

organizations

(ATIA, Mambo,

SNBA, etc, old

and new forms)

High High Important partners in

public-private

dialogues, focusing on

economic sustainability

and promotion of

innovative

entrepreneurial

development.

High. May act as

drivers and take

initiatives to greatly

influence the business

sector

Formal. Work closely

with the Parliament and

the government in a

private-public platform

to formulate long-term

policies

Informal. Can influence

their individual

members.

Drivers of entrepreneurial

innovation and supporters

of life-long learning

18 | P a g e

Chamber of

Commerce and

Industry

High High Important partner in

public-private

dialogues, focusing on

economic sustainability

and promotion of

innovative

entrepreneurial

development.

High. Will have to play

a pivotal role in

educating, informing

and inspiring present

and future entrepreneurs

to develop new business

ventures




respond to specific

requests.

Offers services and

advice, education to

support entrepreneurial

innovation.

Utility providers High High Advice in the

development of

regulations for green

energy development

High. Possess

concessions and

exclusive rights to

deliver utility services.

High influence on all

prices. Ownership of all

utility infrastructure

which may influence

actions of all users.

Formal. Provides

services on the basis of

market needs

Offers top quality service

and technology based on

sustainability.

ICT providers High High Provide state of the art

ICT services

High. Provide

infrastructure for ICT

users. Businesses and

individuals rely 100%

on the quality,

efficiency and

availability of their

services.

Formal. Provides


market needs

Provide the latest trends

in ICT technology and

innovation to help

achieve a state-of-the-art

nation.

Investment fund

providers

Low High Provide affordable and

innovative investment

products, also for

SME’s

Low Formal. Provides the


market needs

Aruba has a top rating

and is an example for

creative and responsible

SME investment funding.

19 | P a g e

Banks

High Medium Provide financial means

to support innovative

industries

High. Provide capital,

define interest rates and

stipulate regulations and

conditions for (new)

business ventures.

Market developments

are highly influenced by

the level of credit

lending.

Clients rely on the

accuracy of the banking

system and supervision

of the Central Bank

Formal. Capital is

extended through

formal contracts, which

are also subjects to

regulations of the

Central Bank.

Banks are transparent and

stable institutions, who

offer competitive interest

rates and lending

conditions to help

develop innovative

business, industries and

the economy in general.

Aruba Electronic

Exchange

High High Facilitate access to local

and foreign capital to

finance commercial

projects

Medium. Facilitate

alternative modes for

attracting capital to

support investments

Formal. Capital is

arranged through formal

contracts, which are

also subjects to

regulations of the

Central Bank.

The AEX is a well-

developed, internationally

renowned investment

platform to generate

necessary capital.

Foreign and local

entrepreneurs

High High Drivers for innovation;

develop and

successfully implement

new business ventures

Medium. Business by

example.

Informal. Generate highly

profitable, innovative

business opportunities

according to

sustainability.

Social

entrepreneurs

Medium High Develop enterprise

ventures with both

social and commercial

purposes.

Low. Informal. Develop business

opportunities with social

benefit.

20 | P a g e

(Digital) press &

media

Medium Medium Promote innovation and

sustainability. Facilitate

access of information to

the general public

High. Informal. Provide accurate,

accessible, relevant and

objective information.

Disburse innovation.

Research &

Development

facilities

Medium High Drivers for innovation;

develop and

successfully implement


and/or fulfill social

needs.

High. Informal. Generate innovative

business opportunities

according to

sustainability. Function as

a learning facility

E-learning

facilities

providers


of human capital


opportunities. May

contribute to

development of

research programs.

. Formal and informal.



respond to specific

requests







general. Actively



interest.

(Renewable)

energy providers

High High Drivers for innovative

(renewable) energy

provision. Provide

technological know-

how and (partially)

invest in the

development of energy

projects.

Low Formal and informal.



respond to specific

requests

Provide an international

showcase of best-fit

technology using

available and renewable

resources

21 | P a g e

Healthcare

Systems (for

profit)

Medium High Develop opportunities

to expand services

based on innovation and

cross-border supply of

health care.

Medium. Drivers for

innovation and

improvement of the

healthcare industry.




respond to specific

requests.

Offer top quality

healthcare to the local

population, support

medical tourism

Education

institutions,

language centers

(for profit)


of human capital


opportunities. May

contribute to

development of

research programs.




respond to specific

requests.







general. Actively



interest.

Free Zone Aruba

High High Attracts new export-

driven business

ventures

Medium Formal and informal.

Highly involved in

developing business

opportunities and

attracting foreign

investment

World class business

center, attracting high-

value, high quality

businesses, using local

professionals

AAA High High Provide the logistics to

support (new) economic

activities


Responds to

international

developments and

national needs.

Regional hub for

passengers and freight.

22 | P a g e

APA High High Provide the logistics to


activities


Responds to

international

developments and

national needs.

Regional hub for freight

and home port for

cruiseships.

Transportation

providers

Medium High Provide the logistics to


activities

Low Formal Aruba is a crucial hub in

their regional network

Architects/constru

ction companies

Low Medium Willingness to use

alternative building

materials and designs

Low Formal Use innovative materials

and designs, ‘Aruba

Design’ is a trademark.

NGO’s

(environment,

business,

education, human

resources,

consumers)

High High Monitors and tests plans

for sustainability, can

initiate and partake in

specific actions.

High Formal (dialogue,

platforms), informal

(members)

Highly professional and

influential organizations,

locally and internationally

AHATA/ATSA Medium Medium Support and diversify

the sustainable

development of the

Aruban tourist product

Medium. Formal and informal,

increasing the positive

core

Aruba is still a top

destination choice,

because of sustainability

Current

students/future

workforce

members

High High Future members of the

workforce, innovators,

(co-)creators of new

industries embracing

sustainable

development.

Low Informal. Participation

in discussions to get

interest for generation

related issues.

International participation

in forums and

competitions.

23 | P a g e

Role models,

action-based

leaders (business,

education,

environment,

health, sports,

social)

High High Drivers of positive

thinking and action

High Informal. Discuss,

promote, and persuade

the development of the

necessary framework to

develop opportunities to

excel.

Every (young) citizen

wants to develop their full

potential and give to

society.

24 | P a g e

5. Desired outcomes This chapter provides an overview of the specific outcomes the commission wants to

obtain based on the aspiration statement described in chapter 3.

Innovation knows many dimensions and the ways it can be stimulated and further

developed can be approached from different angles.

To accomplish innovation for Aruba, the commission will focus on four key

achievements, which are:

1. To create an innovative economic environment;

2. To build up high-developed human capital to sustain the workforce;

3. To attract sustainable technology and ICT to benefit the community and that

will function as a pull-factor for further innovation; and

4. To develop and maintain a sustainable society.

Nation of

Innovation

High developed

human capital

Innovative

economic

environment

Sustainable

technology & ICTSustainable society

Graph 1: Key achievements for 2025

Each of these achievements is further discussed in the paragraphs below.

5.1 Key achievements

5.1.1 Innovative (economic) environment

Creating an environment that is featured by a collaborative and synergetic approach

to economic development between key representatives of the business community,

investment promoters, foreign investors and the government entities in order to

generate value-added income without compromising the resources and composition of

the workforce. Entrepreneurs are considered as the drivers for innovation who act as

25 | P a g e

engines of growth, harnessing opportunity to develop product, service and process

innovations as well as new industries to fuel economic advancement.

In basic terms an innovative environment from the commission’s point of view stands

for a community where people want to bring great ideas and collaborate to

successfully implement them. To create such an environment the commission

accentuates three crucial aspects:

Raising awareness for innovation.

Developing (inter-)organizational skills and stimulate attitudes for

management of innovation.

Develop/attract feasible short-term innovative business ventures (new

industries) to create quick wins which should contribute to paving the path

towards further innovation.

Raising awareness for innovation

To start with innovation it is important to start with changing people’s mindset in a

particular environment. While it is easy to condemn the current passive mindset, it is

not easy breaking out of it. Generating awareness for innovation is a good starting

point to make the shift.

Some general strategies for raising countrywide awareness for innovation are the

following:

Introduce a National Innovation Awards: an award that recognizes achievements

in innovation that benefit the Aruban economy and society with the broader aim

of strengthening the national innovation culture and awareness at all levels of

industry, in the public sector and academia.

Introduce innovation programs as part of schools curriculum, community

programs, sports, arts and culture.

Developing (inter-)organizational skills and stimulate attitudes for management

of innovation

In developing skills and attitudes for innovation the following goals will be pursued:

Develop IMEs (Innovation Management Course for Executives): IMEs goal

should be to develop new management skills, improve vision and business skills,

and facilitate the application of innovation and new technologies in individual

businesses of participants based on using technology to create new products,

processes or services. The course should also explain how entrepreneurs may

access resources to benefit their own businesses. This course will help SMEs

innovate successfully through accessing R&D support for new ideas, and

government institutional and financial support services.

Develop strategic action-based thinking in both the government and private sector.

Develop a collaborative network to exchange innovative ideas and information.

Create networks and facilitate access to financial means.

Focus on the development of scientific research to support decision-making.

26 | P a g e

Develop/attract feasible short-term innovative business ventures

Feasible short-term business ventures that be developed in Aruba are the following:

International Financial Center

International Business Center

Aquaculture

All three business ventures may conduct to ‘spin-off’ activities, especially in the areas

of education, research and development.

5.1.2 Highly-developed/knowledgeable human capital

Achieving a highly educated workforce that is perceived as precious human capital

and who through knowledge and skills is able to greatly contribute to further

innovation and who is empowered to support the development of new business

ventures. Each individual is offered the opportunity to develop to its full potential.

This achievement focuses on the attraction of talented people and also on the

elevation of the level of education of the workforce in order to have high developed

innovative people to sustain economic growth.

Attracting (local) talented people (knowledge immigrants)

To help develop Aruba as a destination of innovation, local talented people will have

to be attracted from abroad. Priority should be given to the attraction of local

graduates who are residing in a foreign country7 to fill vacancies in areas where high-

skilled jobs will be required. There are many reasons why local-born professionals

should be chosen over import of (temporary) foreign skilled people. In many cases

foreigners come to fill high positions but leave in a few years without sharing their

knowledge and experience gained at their work with locals. A local-born professional

will have the tendency to be more committed and to be more open for sharing skills

and experiences since he is making a contribution to his country of birth.

Elevating level of education of the workforce

Efforts should be made on different levels to increase the quality of the labor force in

terms of education and training. A more educated labor force is more mobile and

adaptable, can learn new tasks and new skills more easily, and can use a wider range

of technologies and sophisticated equipment (including newly emerging ones). A

well-prepared workforce is also more autonomous and thus needs less supervision,

and is more creative in thinking about how to improve the management of work. All

of these attributes not only make a more highly skilled worker more productive than a

less skilled one but also enable a work place that employs more educated workers to

organize differently, manage differently, choose technologies and equipment

differently, and adjust better to changes necessitated by competition, by technical

advances, or by changes in consumer demand.

Skills lead to more skills and new ways of doing business, workers learn from one

another, and firms adapt their technology and their use of capital to the skills of the

available workforce. The benefits of having a more educated workforce accrue to

7 Usually the country in which they studied

27 | P a g e

everyone, not just to the organization where these individuals are employed at.

Further, these kinds of indirect (or spillover) effects for the economy as a whole may

be especially important in an increasingly competitive global marketplace. Lastly a

more educated workforce may produce a less crime-ridden and healthier environment

with better functioning civil institutions and all the benefits that flow to the business

sector from that environment.

To support people to achieve higher levels of continuous education both the formal

and informal education sector should provide custom-made demand-driven

opportunities to develop the talents and learning potentials of all citizens optimally.

By synergizing the efforts of early childhood care and education providers,

community centers and libraries, formal and informal education providers and the

growing power of ICT media in offering continuous education opportunities both our

youth and our seniors can be tickled into pursuing life-long education opportunities.


To help develop an environment where creative and innovative thinking of

individuals is appreciated and encouraged a shift has to be made from a more

centralized decision making culture to a culture where citizens and employees are

encouraged to participate in decision making. An award for innovative individuals

within our society as a whole and within specific organizations could promote

individuals to share their ideas and influence decision making on all levels of their

lives. By introducing an award that puts innovative people in the spotlight these

people can serve as role models to inspire others to also be creative and to be

encouraged to think innovatively.

The effects of a growing amount of innovative people in a business community are

self-reinforcing – innovative businesses are attracted to highly skilled and creative

workforces and, in turn, innovative people are drawn towards exciting and

challenging career opportunities. Furthermore, innovative people generate new ideas

that require skilled people to implement and exploit them.

5.1.3 Sustainable Technology/ICT networks

Provision of affordable technology and ICT that benefits the whole community and

that attracts new technology providers to showcase their innovative products and

services.

The focal point of this achievement is to develop an Aruban community in which

sustainable technology and ICT can develop and flourish to the benefit of all Aruban

citizens. The commission believes that by facilitating access to these technologies, the

Aruban people, entrepreneurs and government institutions will be able to boost their

innovative capacity to the wellbeing of all.

Below is a summary of the aspects that need to be considered to reach technological

development on Aruba:

Facilitate access to ICT technology for all homes at low cost.

Increase quality and lower cost of ICT technology to meet international standards

for the benefit of the business sector.

28 | P a g e

Encourage domestic development of green energy technology.

Intensify exploration of affordable green energy technology by utility providers

(partnered with foreign green energy providers) for countrywide benefit.

Reform waste management systems.

Attract research and development facilities for green energy and waste

management.

Develop Aruba as a showcase for sustainable green energy (long-term).

Attract foreign green energy providers to showcase the latest technology in clean

and green energy provision by emphasizing the diversity of green energy

resources provided on the island..

Continuously upgrading Aruba airport and port facilities with new technologies.

Promote green building methods and the use of green energy technologies at

home..

5.1.4 Sustainable society

Building a community consisting of model citizens who embrace sustainable

development and who make use of key resources available in a conscious manner to

continuously develop and improve al areas of the Aruban society, especially social

and environmental.

A society that strives to be sustainable accepts a duty to seek harmony with other

people in that society and with nature. Innovation is driven towards long-term

sustainable solutions for current and future challenges. Therefore the community in

general should be aware of the balance between the dynamics of innovative choices

and the constants of sustainable development. The guiding rules are that people must

share with each other and care for the island. The Aruban citizens and visitors should

learn to take no more from nature than nature can replenish. This in turn means

adopting lifestyles and innovative development paths that respect and work within the

island’s nature resources. This can be done by both embracing the many benefits that

modern technology has brought, and beware that technology also works within those

limits.

Key stakeholders in society (government, NGO’s and private sector) must promote

values that support these new ethics and discourage those that are incompatible with a

sustainable way of life. Information must be disseminated through formal and

informal educational systems so that the policies and actions needed for the survival

and well-being of the Aruban society can be explained and understood. In order to

develop the Aruban community as a sustainable society to further support and

encourage innovation the following aspects are deemed as important:

Consider people as the central element in the system, evaluating the social,

economic, technical and political factors that affect how they use natural

resources.

The social consequences of policy decisions will be thoroughly researched and

possible negative effect mitigated.

Relate innovative economic policy to environmental carrying capacity.

Increase the benefits obtained from each stock of resources, and limit the

depletion of resources.

29 | P a g e

Promote technologies that use resources more efficiently.

Ensure that resource users pay the full social costs of the benefits they enjoy.

5.2 Alignment with different sustainability themes and statements

In designing the key achievements stated above, the commission also explored the

extent to which these outcomes are in alignment with the different sustainability

themes and statements that were brought forward by different community members

during the Discovery and Dream phase of the project ‘Nos Aruba 2025’. With this

opportunity plan, the commission will contribute significantly to the following aspired

themes and statements:

Social:

Opportunity for (self)development to ones fullest potentials

Stable social healthcare system and accessible care infrastructure for all

inhabitants

Education for high level consciousness regarding sustainability

Balanced economy, social and ecological possibilities

Increased personal commitment

Healthy and happy citizens

Environmental:

Effective protection of the environment

Clean water, air, land

Abundant use of alternative energy (sun, water, wind)

Recycling and reusing waste

Aruba is CO2 neutral

Prudent use of green technologies

Economic:

National innovation system through knowledge based capabilities

Opportunities for new business ventures both within and outside existing

industries

Improved flexibility, efficiency, productivity and equity of markets and economy

Diversification into high value areas (jobs and industries)

Sustainable energy production

An educated economy, aware of the need of natural resource protection

Governance:

Development of international relations

Additional cash flow to sustain budget and policy

30 | P a g e

6. Main stakeholders

Government/semi-government

Institution Actions needed for AS

Parliament/Government To execute new laws and adapt current

laws to a more modern society.

Less bureaucracy. Especially when

applying for certain necessary permits.

Legal procedures need to become more

effective, less bureaucratic which will be

more time efficient for both the

Government and the business community

Positive balance of payment by 2025

Government: Economy Promote & create platforms for public &

private dialogue:

one for foreign investment and a business

& education platform.

Find subsidies to finance projects to

promote & give impulse to economic

activities

Promote corporate social responsibility

by 2013

Positive balance of payment by 2025

50% of jobs in non-tourism sector by

2025

Intellectual property protection by 2012

Promote a R&D facility by 2025

Government: Education Provide high level of education, available

to all. Cooperate in creating a business &

education platform, promote multilingual

education.

Education level 50% ISCED level 5; 20%

of the working population has an

academic education. 30% ISCED has

level 4 or less.

Early childhood education. Quality

control is necessary. Requirements and

conditions are a must.

Learning centers available to all through

community learning centers & libraries.

Promote multilingual society, not one

main language but all languages.

100% internet access for all learning

centers.

Government: Fiscal Fiscal duties are necessary; create

31 | P a g e

incentives to stimulate new businesses,

local and international investment and

diversification of our economy.

0% import duties on green technology.

Government: Infrastructure Very vital is to complete the implantation

of the ROP-law.

By 2018 all new buildings are eco-

friendly

Good telecommunication infrastructure

which has to be accessible for everyone

to achieve 100% broadband and distance

working.

Good connection by land, sea and air, to

achieve good foreign relations and traffic

of goods and people (tourists and

business travelers)

Government: Intellectual property Protect innovative ideas. Encourage

people to keep innovating while

protecting their ideas. But at the same

time giving others the chance to build on

the idea.

Private Sector

Institution Actions needed for AS

Business organizations (ATIA, Mambo,

SNBA, KvK, AHRA, AHATA etc, )

Promoting and creating platforms for: (by

2013)

Private – public sector dialogue

platform

Business – education platform

Foreign investment platform

International business center by 2014

Promoting National Prize Corporate

social responsibility by 2013

National prize for innovative

entrepreneurship by 2014

Promoting distance working by 2015

50% of jobs in non-tourism sector by

2025

Utility providers

50% of energy needs to be supplied by

renewable energy by 2015

More competition in the local market

New buildings are eco friendly by 2018

ICT providers

100% internet access for everyone at an

affordable price

Innovative technology available to realize

32 | P a g e

varios e-commerce projects such as E-

medicine center.

Distance working possible from home

offices in 2015.

Investment fund providers Foreign investment platform

Capital

Banks

Expand commercial banking

Lower interest rates

(Digital) press & media

Responsible and investigative reporting,

aimed at informative education.

(Renewable) energy providers

50% of energy should be supplied by

renewable energy

Create local market for sustainable

products and services at a reasonable

price

By 2020 all buildings are eco-friendly

In 2020, Aruba has non-intrusive

economic activities

Create a new industry through renewable

energy.

Healthcare Systems (for profit) E-medicine center/ national EMD

Competition for the public sector, which

will eventually lead to improved service

from the public sector.

Education institutions, language centers

(for profit)

By having both public and private

education facilities, educational programs

will be available to everyone. It will also

be competition, which will mean the

education system has to keep improving.

NGO’s and private citizens

Institutions Actions needed for AS

NGO’s (environment, business,

education, human resources, consumers))

AHATA/ATSA

Role models, action-based leaders

(business, education, environment, health,

sports, social)

Monitor the vision and test plans and

projects for sustainability.

Watchdog-role, grass roots initiatives.

33 | P a g e

7. Actions to be done

In this chapter the action plan will be presented, which includes a list of concrete

actions to be carried out to achieve the desired outcomes, based on the questions:

what-who-when?

What: a description of the actions to be carried out

Who: the stakeholders that need to be involved to make the actions possible

When: the time frame in which the actions need to take place

The actions are presented for each key achievement.

7.1 Creating an innovative economic environment

Action: Raising awareness for innovation

What Who When

Fostering innovation as part of Aruban culture

Innovation and research

programs at school

Department of Education, IPA,

University of Aruba, school boards,

teachers,

2009-2012

Developing internships

programs and scholarships for

foreign innovation programs

Department of Education, University

of Aruba, Aruba Scholarship

Foundation,

2010

Promoting innovation in

community

Media, community-based groups,

centro di barrios, role models,

entrepreneurs

2009-2013

Incorporating innovation in

sports, arts and culture

Sport organizations, Department of

culture,

2010

Action: Developing skills for innovation management

What Who When

Innovation as part of strategic business thinking:

Develop IMEs University of Aruba, foreign & local

learning institutions.

2010-2011

Partnering for innovation:

Create foreign investment

platform

Government, ATIA, KVK, NGO’s

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Action: Develop/attract short-term innovative business ventures

What Who When

IFC, IBC and Aquaculture

Partnering Aruba

entrepreneurs with foreign

investors & users (showcase

displayers)

Free Zone Aruba NV, DEACI, ATIA,

Chamber of Commerce

2009-2010

Create/adapt legal

framework (IFC)

Department of Legislation, Central

Bank of Aruba,

2010

Spatial planning and

strategic positioning for

building construction to

accommodate the projects

DIP, DOW, Elmar, WEB

(infrastructure)

2009

Creative financing

arrangements

Foreign investors, banks, AEX 2009-2010

7.2 Building up a high-developed human capital

Action: Attracting (local) talented people

What Who When

Attracting local graduates from abroad

Provide incentive packages:

recognition, facilitate

immigration of family

members

Parliament & council of ministers,

Department of Education, Department

of Finance, DIMAS

2009-2013

Write-off student loans

(partially or in full) for

graduates that return to Aruba

to work in areas where high-

skilled people are needed



of Finance

2009-2013

Facilitate information on

opportunities of job openings

Department of Labor, Arubahuis,

Arubahuis and GevMin Washington

2009-2013

Attracting technological know-how (knowledge immigrants)

Flexibility of immigration

laws and policies for

knowledge immigrants and

their families


DIMAS, Department of Labor

2009-2010

35 | P a g e

Action: Elevating level of education of the workforce

What Who When

Reforming education system

Enhance opportunities for

adult education

Department of Education, Center for

Lifelong learning

2010-2012

Improved flexibility of entry

requirements and offer

support programs to optimize

opportunities to elevate

individual levels of education

Department of Education, professional

and higher education institutions

2010-2012

Fostering a culture of life-long learning

Develop learning centers University of Aruba, local and foreign

learning institutions

2010-2013

Develop distance learning

programs

University of Aruba, local and foreign

learning institutions

2010-2013

Stimulate on-the-job training

programs

Department of labor, local and foreign

business development institutions, HR

managers

2010-2015

Introduce special financing

fund for vocation and

academic learning programs


Department of Education, private

sector

2010


Introduce award to recognize

innovative thinking people

both in the community as in

organizations who serve as

role models

New community based entity that

fosters a culture of innovative thinking

and innovative participation in

decision making

2010

Promoting a culture of

innovative participation in

decision making both in the

community as in

organizations

University of Aruba Organization,

Governance and Management

department, new community based

entity mentioned above

2011

7.3 Developing sustainable technology & ICT

Action: Streamlining/facilitating access to technology

What Who When

Facilitate access to ICT technologies

PC/broadband for all homes at

low cost



of Finance, Setar NV

2010

PC/broadband for all schools

and libraries



of Finance, Setar NV

2012

36 | P a g e

Encourage domestic development of green energy

Eliminate barriers imposed by

utility companies for domestic

green energy development


utility companies

2011

Eliminate taxes and duties on

import and development of

green energy technology

Parliament & council of ministers 2013

Action: Developing sustainable technology (energy and waste)

What Who When

Attract technological know-

how

WEB, Elmar, Setar, Serlimar, Private

Sector

2010

Invest in new infrastructures WEB, Elmar, Setar, Serlimar, Private

Sector

2010

7.4 Sustainable society

Action: Raising nationwide awareness for sustainable development

What Who When

Implementation of the ROP &

environmental law

Government; Parliament 2010

Stimulate corporate

responsibility &

entrepreneurship

Chamber of Commerce 2010

Introduce incentive: 0%

import duties on Green

technology

Government; Ministry of Finances 2011

Private sector starts creating

markets for sustainable

products and services for all

business and household in

Aruba: sustainable products

and services have to be

accessible to all)

Private sector; Chamber of

Commerce; Department of Economic

Affairs

2016

50% of energy is supplied by

renewable energy

Private sector; alternative energy

providers; utilities’ companies

2017

All new buildings, are eco

friendly

Ministry of Infrastructure; Parliament;

private sector

2020

37 | P a g e

Action: Community development

What Who When

Start a long-term, nationwide

awareness campaign for a

sustainable society & personal

development (LLL)

Government of Aruba; Department of

Education; citizens

2010

Media: translate visions (of a

sustainable future) into

practices

(Digital) media 2011

Business & Education

platform

Department of Economic Affairs;

Chamber of Commerce; Department

of Education; private sector; citizens

2013

School and other education

programs are available for

everyone, at any age &

education level

Department of Education; private

sector

2017

R&D facilities University of Aruba; Government;

Private sector

2017

38 | P a g e

8. Strategic resources needed The following strategic resources are imperative for the commission to achieve the

desired outcomes:

8.1 Tangible resources

Cash Cash is an imperative resource to cover initial investments to acquire other key

resources, such as fixed assets and infrastructure, technological improvements both

physical and know-how, expansion of education and learning facilities, (pilot)-

projects, research and renovations/improvements of existing facilities.

The estimated cash amount to cover the investments and acquisitions is AFl. .......

The funds required will come from different sources, which are:

Funds allocated by the government

Funds provided by banks (credit lending)

Funds directly invested by venture capitalists (local and foreign)

Funds generated through the Aruba Electronic Exchange (private placements)

Funds generated through spin-off effects (profit distribution) due to flourishing

economic activities

The priorities for cash allocation include:

Improvement of ICT technologies

Investment in green energy development

Relocation of the commercial port to Barcadera

Infrastructure for the new free zone area

Investment in entrepreneurial development

Fixed Assets Adequate infrastructure (access roads to support logistics)

Excellent and affordable airport facilities to accommodate the level of flow of

people and goods through aircrafts

Excellent and affordable harbor facilities to support the maritime logistics

Sufficient property and warehousing facilities at the freezone to accommodate


Hi-tech (innovative) buildings to accommodate R&D and learning centers, etc.

ICT infrastructure / broadband

Infrastructure for renewable energy

39 | P a g e

8.2 Intangible resources

Relationships Well-functioning private-public dialogue platforms

Different government departments working together

Good communication with media

Individual capital ICT/Technological know-how

Pro-active governance

Well-regulated entry of new business ventures (to avoid

intrusive/harmful/unsustainable economic activities)

Building code regulations (eco-friendly)

ROP & environmental regulations

Green/renewable energy know-how

Know-how on sustainable products and services

Integrity, transparency, responsiveness of government personnel

High level of education, skills and experience

Collective capital Political stability

Tax treaties

Service-oriented workforce

High-quality education

Basic and new legislation

Friendly multi-lingual, -national and –cultural community

Foreign relationships

Respected judicial system

Win-win attitudes and values

Pilot learning programs

Community learning programs

Incentives for innovation

8.3 Natural advantages

Geographical location

Availability of wind, sun and water for renewable/green energy & R&D

Available land (limited)

Attractive climate (to attract tourists and investors)

40 | P a g e

9. Road Map to achieve aspiration statement (draft)

Current

strengths:- Central geographical location

- friendly multi-cultural, - national &

lingual community

- politically stable system

- respectable judicial system

- foreign relations

Aspiration

statement:“In 2025 Aruba will be a

place where innovative

people will share

innovative ideas in an

innovation-friendly

environment”

Social

Environmental

Economic

Political

Future202520172009

2021

Strengths in the

medium-term:- Central geographical location


lingual community



- foreign relations

- high-quality education

- tax treaties

- ICT

Strengths in the

long-term:- Central geographical location


lingual community



- foreign relations

- high-quality education

- tax treaties

- ICT

- Corporate governance

- technology & infrastructure

- well-functioning platforms

2013

2013

2017

2021

2025

Future

Roadmap - Nation of Innovation

E-medicine

center/national

EMD

E-government

100%

household

broadband

Intellectual

property

protection

Distance

working

(home offices)

Managing

diversity as HR

philosophy

Foreign

Inv.

Platform

0% Import

duties on

green tech.

Business &

Education

Platform Intern’l

Business

Center

50% jobs in non-

tourism service

sector

100% home

computers

100% internet

access learning

centers

Multi-lingual

education

New R&D

facilities/Bsc

program

Education level

75% ISCED

level 2

10% academic

Community

learning centers/

libraries

Inter-scholastic

science

competition

(international)

Non-intrusive

economic

activities

GDP ….

Positive balance

of payment

Impl. ROP &

environmental law

National prize

corp responsibilty

National prize

innovative

entrepreneurship

Local market for

sustainable

products/services

50% energy

needs supplied

by renewable

energy

All new

buildings are

eco-friendly

Policy through publ./

priv. dialogue

(platforms)

25% of new AUA

project financed

through PPDAQ

50% of new AUA

project financed

through PPDAQ

Key

achievements: Sustainable society Sustainable Technology/

ICT networks Highly-developed/

knowledgeable humancapital

Innovative (economic)environment

42 | P a g e

10. Working with other commissions

43 | P a g e

44 | P a g e

Commission

name

Statements that reflect common issues Issues that

might

contradict

each other

Cooperation issues and possible

projects

Sustainable

community-

based system

a) Everyone is aware of the importance of energy efficiency and the

need to reduce environmental pollution while conserving local

vegetation and fauna

b) Citizens are life-long learners; education is accessible to all and

citizens engage in extracurricular educational and recreational

activities

c) The education system is further linked to the ever expanding and

changing technological and financial demands

d) The government is effective in allowing for a targeted and rapid

response to social needs and a successful pursuit of individual and

communal aspirations as well as pro-active and decisive initiatives

and a participatory approach.

e) A diversified economy with entrepreneurship that is both part of and

complements the tourist industry

None Involving and engaging

community based stakeholders in

pro-active initiatives and

entrepreneurship

Environment a) Use the media to help educate and create awareness of sustainable

development

b) Stimulate change from within companies and residents through strict

adherence to environmental laws, producing services and goods in an

environmentally sound way

c) The whole community uses energy consciously and efficiently using

the latest technology to keep the environment as least contaminated

as possible, generating green energy by using local accessible

alternative energy sources and refusing, reducing, reusing and

restoring waste as a part of life.

None Creating awareness to ensure a

sustainable environment using the

latest technologies and local

alternative energy sources

45 | P a g e

d) Aruba has developed public participation mechanisms to fortify our

democracy and stimulate the thriving new economy. Therefore

invited guests are welcomed to share our island.

Governance a) Citizens have access to quality information, are taken into

consideration and participate in the policy-development and public

decision-making process.

b) Public and private partnerships are built on trust, knowledge and

acceptance of each other’s unique responsibilities and a structured

and continuous consultation between all stakeholders

None Ensuring that all citizens are well

informed about and have

accessibility to decision-making

processes, working together in

public-private partnerships and

involving all stakeholders

International

Financial

Center

a) The business community in Aruba flourishes with (highly) educated

people, based on the core values of integrity, innovation and

excellence

b) The Government invests in the education of the Aruban people,

stimulates new businesses and focuses on a mixed economic

approach, keeping the population well informed and aware of the

most recent developments in the financial sector

None Diversifying the economy and

emphasizing the need for

investments in highly educated

people, innovation and new

businesses

Lifelong

learning

a) Everybody contributes collectively to the sustainable development of

Aruba through continuous accumulation of knowledge and

development of abilities, talents and attitudes based on every

individual’s potential and values.

b) Individual’s talents and potentials flourish through formal

educational routes, alternative innovative routes and outside the

formal educational system in educational community centers, at

work, at home and through multi-media.

c) By continually learning the society progresses in a sustainable way

and has developed a diverse and dynamic economy

None Creating multiple formal and non-

formal possibilities for life-long

learning

Socio-

economic

structure

a) The Aruban economy is diversified to a broad extent, with transport,

financial services and knowledge-based activities making up for

almost 60% of GDP, driven by high-skilled labor and Aruban

None Diversifying the economy by

investing in high-skilled labor,

ingenuity, creativity and

46 | P a g e

ingenuity, creativity and entrepreneurship. Sustainable initiatives are

stimulated by fiscal incentives

b) Education has become a means to produce human capital in the form

of capable, conscious and productive citizens, respecting each other’s

individual ancestry and cultural traditions and values and offering

equitable opportunities to fulfill individual and social group

aspirations.

entrepreneurship

Sport and

Nutrition

a) The Aruban society has a healthy way of living and is conscious

about the use of natural resources

b) Sport practice has contributed to the development of non-physical

areas such as creating norms and values, fair play, pushing for

perfection, team building, social skills, networking, nationalism, etc

c) Sport facilities are well situated in every neighborhood, practical,

user friendly, environmentally friendly and well maintained.

none Stimulating a healthy way of

living that contributes to well-

being and social skills which in

turn sets the environment for

human inspiration and innovative

ideas to flourish and flow

Sustainable

food supplies

a) Arubans produce most of their own vegetables from their own high-

tech small-scale gardens and catch or breed fish in a hygienic and

environmentally responsible way. They are aware of locally grown

food choices, sound living and food growing practices, eco-friendly

farming, innovative green technology and are willing to experiment

with these

b) Aruba’s success is showcased around the world and has become part

of the attraction of the island and local grown products are sold to

health-conscious tourists and are exported

none Stimulating innovative local food-

production as a healthy living

practice and a new means of

generating income

Sustainable

tourism

a) The tourism product has diversified and reinvented itself with geo

tourism and eco tourism

b) Aruba possesses the systemic tourism intelligence capabilities that

provide stakeholders with the insights, information and intelligence

for innovation towards realizing sustainable tourism in a pro-active,

collaborative, responsible and equitable manner, thereby enhancing

none Synergizing efforts in creating

innovation in both the tourism

sector itself and all business

sectors relating to tourism,

enhancing the overall

sustainability of the Aruban

47 | P a g e

the overall sustainability of the Aruban destination

c) Aruba will innovate and further distinguish itself as a premier

Caribbean destination through the development of new business

models that will create sustainable competitive advantages

destination in a diversified

economy.

Energy

Management

a) Aruba maximizes its use of locally available natural renewable

energy resources and recycles its waste in a responsible and

sustainable way, liberalizing the local energy market and creating

incentive programs to motivate installation of sustainable energy

generation equipment using locally available natural energy resources

b) There are ongoing educational programs to educate the Aruban

community for better ways to manage its energy-usage and to use

technical know-how on sustainable energy generating equipment.

c) The example is set by schools and community centers placing

alternative energy generating equipment and the use of sustainable

powered vehicles for both private and public transportation

none Educating and stimulating

innovative sustainable energy

usage

48 | P a g e

11. Robust and fragile elements

11.1 Robust elements The elements of the Aspiration Statement, Key Achievements and Milestones in the

Roadmap will build upon themselves, once realizing the basics, which can be done on

a short term. Innovation is a ‘state of mind’, not dependent on critical single activities.

Initial projects will in themselves create the resources needed on the long run.

Many of the Strategic Resources are available, at least as a starting factor. The Free

Zone as a driver of foreign investment is there, and can be used to develop the

Foreign Investment Platform. The Collective Capital and Natural Resources are there,

but need to be improved and protected.

11.2 Fragile elements Most fragile elements in our plan are inherent to sustainable development. If the NISP

is truly adopted by the whole of Aruba, the fragile elements will receive the attention

they deserve and become robust. Education is a crucial element..

Many of the elements in the plan hinge on a single factor, the most fragile. That is

creating a high level of dialogue and collaboration between the stakeholders

represented in Government, private sector and NGO’s/private citizens, and each

recognizing their individual responsibilities and developing their capabilities. In short,

the Social Architecture described in 4.2-4.4,

Another fragile element is the ability to attract the first investors/highly educated

(returning) workforce. Once these have a positive experience it will become a

resource. If it is not done well the first time around, it will remain a fragile element.

The actions to be undertaken to improve the fragile elements are in the form of small,

relatively simple and straightforward projects in the first years of the NISP, to create a

positive experience and the vision to undertake the more challenging projects that

entail greater change. The Investment Platform is such an example. The stakeholders

all recognize the need to work together to attract foreign investment, however the

current negative atmosphere is a deterrent. With the worsening global economy and

the decline in tourism, steps will have to be taken to develop new business

opportunities. A positive experience can set the stage for the development of similar

platforms for Energy, Education, Health, etc.

49 | P a g e

12. Detailed Implementation/Action plan 2010-2013

This chapter describes the actions that are required for implementation of the

commission’s opportunity plan.

50 | P a g e

Time

schedule

Description

actions to

obtain the

aspiration

Action by the public

sector and time

frame

Actions by

the private

sector

Identification

of resources

needed by

source:

personnel &

finances

Estimated costs

for

implementation

Responsible

organization for

implementation

and resources

Organization

accountable for

implementation and

resources

2009-2010 E-government Make procedures and

policies more

accessible and easier

to be implemented. A

network of computers

can connect various

government

departments, making

data more accessible,

simplifying

procedures &

decision.

Give relevant

feedback on

how

government

can function to

their

advantage

Personnel has

to accept

change,

recognize

change is

beneficial to

their work

process.

Department of

Information &

automation for

the

infrastructure. Or

the Government

can outsource

this task.

The Government of

Aruba, Dept. of General

Affairs.

51 | P a g e

2009-2010 Implementation

of the ROP &

environmental

law

Dept. of Infrastructure

and Planning. Dept.

of Public Health

give relevant

feedback.

Look at the

long term

benefit of the

law, not going

around it in

order to save

costs on short

term.

Personnel to

educate

population on

benefits of new

law

Dept. of

Infrastructure

and planning;

Dept. of Public

Health

Parliament of Aruba

2010-2014 Raising

awareness for

innovation

Incorporate

innovative projects &

programs. Be

supportive of teachers

and other educators

to bring forward

innovative projects

and programs.

Be supportive

and

recommend

innovative

trainings/

promote

innovative

educational

programs and

projects at a

reasonable

price.

Teachers,

educators,

trainer for

trainers, policy

makers,

government,

school board,

parents,

youngsters

Dept. of

Education; Dept.

of Culture and

labor; University

of Aruba;

community

based groups and

centrums; media

Dept. Of Education; Dept.

of Labor and Culture;

Parliament of Aruba.

52 | P a g e

2010 100% internet

access

Internet access

everywhere, in

learning facilities &

homes. Promotes the

use of internet,

provides a great

infrastructure to

achieve this goal.

More internet

providers in

Aruba by

2013, supply

meets demand,

competence

makes

providers offer

faster and

better internet

continuously.

Businesses and

citizens make

continuously

more use of the

internet. This

brings along

the need of

more high

skilled ICT-

ers.

Government:

good

infrastructure.

Private sector:

internet

providers and all

related services.

Dept. of

Telecommunication;

Internet providers; private

sector.

2011 Foreign

Investment

Platform

Make procedures and

policies to guarantee

transparency in this

business opportunity.

Be transparent,

search ways to

enhance this

business

opportunity

and finance

commercial

businesses.

Law & policy

makers to

adjust current

laws. Players

in the financial

field to

Government,

ATIA, Chamber

of Commerce,

NGO’s

Government, ATIA,

Chamber of Commerce,

NGO’s

53 | P a g e

2012 Intellectual

Property

protection Protect innovative

ideas. Encourage

people to keep

innovating while

protecting their ideas.

But at the same time

giving others the

chance to build on the

idea.

Private sector

knows their

ideas are

protected and

are

encouraged to

continue

innovating and

improving

ideas and

concepts.

Finances are

necessary to

guarantee the

protection of

registered trade

marks and

concepts.

Controllers are

necessary.

Bureau for

Intellectual

Property.

Bureau for Intellectual

Property.

2012 E-medicine

center/ national

EMD

Encourage private

health care incentives.

Medical costs are

covered in AZV.

Control health care

and set standards.

Develop

opportunities

to expand

services based

on innovation

and cross-

border supply

of health care.

Highly skilled

professionals

have to keep

improving

health care

Private sector.

Dept. of Public

Health

Private sector. Dept. of

Public Health

54 | P a g e

2013 National Prize

for Corporate

social

Responsibility

Announce importance

of responsible

entrepreneurship.

Promote CSR among

SMEs as well.

Be involved

and supportive

of CSR.

Realize the

benefits CSR

has for

businesses and

make clear

that CSR is

not only for

multinationals.

Take pride in

winning such

award.

Personnel in all

organization

and business,

on all level are

aware of

importance of

CSR. By 2015,

applicants find

it important to

know what the

contribution of

their future

employer

before they

accept job. The

employee is

eager to know

how he can use

his skills to the

benefit of the

community.

Dept. of

Economic

Affairs, The

Chamber of

Commerce; other

business

associations.

Dept. of Economic

Affairs, The Chamber of

Commerce

55 | P a g e

2013 Business &

Education

platform

Promote innovation in

Educators.

Create a

platform

where

businesses

teach their

experiences,

best practices

exchange,

inspire others

to become

successful

Leaders lead

the platform.

Other will

follow.

Government of

Aruba, dept. of

Economic

Affairs, dept. of

Education.

Private Sector,

the Chamber of

Commerce and

other business

organizations

Private sectors, educators,

citizens.

2013 International

Business Center

Creating the physical

building. In order to

meet its goals, some

policies and laws

have to be adjusted

for Aruba to become

a "real" international

business center.

Implement the

idea behind

the business

center. Keep

innovating and

developing the

business

center to

successfully

achieve its

goal, be

competitive,

not only in

Aruba but

know what is

happening

outside Aruba

as well.

Entrepreneurs

&

professionals.

Players in the

International

business center

need to let go

of the island

concept and

think globally.

Government of

Aruba. Private

Sector, the

Chamber of

Commerce and

other business

organizations

Private sector.

56 | P a g e

13 Monitoring and evaluation 2010-2013

<<pending>>

57 | P a g e

References

Barro, Robert J. (1997) Determinants of Economic Growth: A Cross-Country

Empirical Study. MIT Press: Cambridge, MA.

Dickens, W.T., I. Sawhill & J. Tebbs (2006) The Effects of Investing in Early

Education on Economic Growth. The Brookings Institution, MA.

Luecke, R. & R. Katz (2003). Managing Creativity and Innovation. Harvard

Business School Press. Boston, MA.

58 | P a g e

Annex 1: Conceptual framework: sustainability through innovation

Cash

Fixed Assets

Relationships

Individual capital

Collective capital

Natural advantages

Innovative economic

environment

High developed human capitalIncreased innovative

capacity

Product Innovation Service Innovation Process Innovation

Improving current

industries

Developing new

industries/business

models

Entrepreneurial development

Knowledge

Wealth

CompetitivenessInstitutionalized

social system

Informal social

system

- Green energy development

- Financial services

- Internet-based services

- Export oriented activities

- ……….

- Tourism

- Retail

- Services

- ...

Strategic resources

Creation of high-

skilled jobs

Higher profits (high

return on

investment)

Sustainable technology & ICT

Sustainable society

Key achievements

Government

59 | P a g e