Import and Export of Skills and Talents

Transcription

1 Import and Export of Skills and Talents Professor Eleftherios Iakovou Director, Division Of Industrial Management Director, Laboratory for Supply Chain Management and Logistics Aristotle University of Thessaloniki President, Alexander Innovation Zone, S.A. EDUCATION AND INNOVATION IN THE 21ST CENTURY: OPENING FRONTIERS FOR THE BUSINESS MARKET

2 AGENDA The Changing Structure of the World s Labour Market The Emerging Landscape for Talent Demand & Supply Mismatch: Ramifications Talent, Innovation and National Competitiveness The Role of the Leviathan.

3 OBSERVATION We re in the midst of great upheaval in the business world established brand names are disappearing, new upstarts are thriving, job security is diminishing, the demands of the workplace are increasing, new technology requires constant retraining, globalization means new competitors and the list of challenges continues to grow. Newsweek (020413)

4 THE MAIN ISSUE OF OUR TIME C h a n g e Accelerating Turbulent EDUCATION AND INNOVATION IN THE 21ST CENTURY: OPENING FRONTIERS FOR THE BUSINESS MARKET

5 Drivers for a New Labour Market Technologic Revolution E N T E R P R I S E Economic Globalization EDUCATION AND INNOVATION IN THE 21ST CENTURY: OPENING FRONTIERS FOR THE BUSINESS MARKET

6 Schumpeter s Waves Innovation Pace Water Power Textiles Iron Steam Rail Steel Electricity Chemicals IntCombEngs PetroChem DigitalNets Electronics Software Aviation New Media Years:

7 Major Consequences The fast outperform the big The smart outperform all others!

8 RESOURCE IMPORTANCE Importance People Information Financial Resources Time Physical Resources

9 Demand for Skills and Talent The life-length of skills is shrinking Skills of university graduates have a shelf life of 5 years! The average mid 20s graduate in the US changes jobs every 16 months Demand for specialized skills has been rising Hyperspecialization Need for ongoing and highly customized professional development.

10 Demand for Skills and Talent Even with high unemployment, demand for highly skilled talent pool is increasingly exceeding supply More than 60% of multi-national companies fear that talent shortages are likely to affect their bottom line in the next five years Economist Intelligence Unit, 2012

11 Demand for Skills and Talent Demand for knowledge employees is increasing Companies with the highest # of knowledge workers outperform their peers Demand for part-time and freelance employees is exploding labour as a service Online marketplaces (e.g. Odesk, outsourcing to the level of the individual employee).

12 RESOURCE COST TRENDS (Graphical representation in constant money) Unit Cost People Unskilled Skilled Physical 0 Financial Time

13 Main Types of Work Transformational (physical activity) Transactional (routine jobs capable of being automated) Interactional (knowledge-based) Transformational and transactional work suffer from fierce competition, slim profit margins and low pay, while interactional earn big margins. Source: Mckinsey Global Institute

14 Supply for Skills and Talent Shortage of qualified workers in the global market The work force in the developed world is aging The grey-collar generation must continue refreshing their skills in light of the changes in the talent pool, and their lengthier work lives.

15 The Value of Life-Long Learning The illiterate of the 21 st century will not be those who cannot read and write, but those who cannot learn, relearn and unlearn. Alvin Toffler

16 Supply for Skills and Talent The competition for Top Talent is intensifying Top Talent has the bargaining power and is globally mobile The war for talent is shifting the balance of power from companies to workers Talented workers opt for frequent career changes looking for high lever work environments (such as start-ups) Freelancing for highly skilled employees.

17 Talent is a dominant factor determining national competitiveness A strong innovation capacity will be very difficult to achieve without a healthy, well-educated, and trained workforce Innovation adds new jobs The World Economic Forum All net private-sector jobs in the US for the period were created by companies less than five years old (about 40 million jobs)! Kaufmann Foundation

18 Innovation in a Non-Flat World Patents per million inhabitants, Europe, Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris.

19 Policy Ramifications: Structural Reforms Need for a multidisciplinary policy paradigm shift from governments, educational and innovation institutions and businesses for tackling: education employment regulation tax structure immigration Foreign Direct Investment (FDI) intellectual property.

20 The role of the Leviathan Promote Innovation and Entrepreneurship In schools, vocational training institutions and universities ( competitions & prizes) Facilitate access to capital for early stage start-ups and later stage growth companies Enhance commercialization of publicly funded research.

21 Universities need to become entrepreneurial and innovative themselves They should emerge as autonomous, flexible, nimble, extrovert, more diverse and global: with appropriate decision-making power and incentives, competing with each other (for students, faculty, funding from both public and private sources), while maintaining Academic Integrity and Excellence. International Hellenic University ( A small scale success story

22 Innovation Investment Zones:Leverage Local Advantages Innovation Zones and Clusters build upon Synergies among collocated stakeholders of the ecosystem (universities, research centers, incubators, business parks, VCs, ) Offer a unique environment for attracting FDI creates jobs and opportunities for the highly skilled talent.

23 Innovation Investment Zones:Leverage Local Advantages Zones can magnify economic activity and benefits through leading edge tech transfer practices and attractive tax policies Startup Chile, US Advisory Council on Job Creation, Russia s Skolkovo Zone, Israel s and Singapore s policies The case of the Alexander Innovation Zone.

24 THE END Thank you for your attention! EDUCATION AND INNOVATION IN THE 21ST CENTURY: OPENING FRONTIERS FOR THE BUSINESS MARKET EDUCATION AND INNOVATION IN THE 21ST FEBRUARY CENTURY: 28TH OPENING 2013, FRONTIERS ATHENS FOR THE BUSINESS MARKET FEBRUARY 28TH 2013, ATHENS