The Role of Skills Development in Competitiveness in Asia
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1 The Role of Skill Development in Competitivene in Aia Profeor Michael J. Enright Univerity of Hong Kong Hong Kong Intitute for Economic and Buine Strategy Enright, Scott & Aociate ADB Copyright Michael Enright,
2 Population, billion GDP Index % of World GDP Force of Change Trajectory Actual+IMF Forecat Source: IMF, ESA Urban, le developed Rural, le developed Urban, more developed Rural, more developed 100% 80% 60% 40% 20% 0% Source: IMF Food Coal Copper Iron Ore Nickel Oil Uranium Advanced Economie Developing Aia Sub-Saharan Africa Middle Eat, N Africa L America, Carib CIS Central, E Europe Source: UN Source: IMF Copyright Michael Enright,
3 Value Creation Force of Change Internet Uage, billion Technology Age Indutrial Age Agri Age Iron Age Knowledge Age Africa Europe North America Oceania/ Autralia Aia Middle Eat Latin America / Carib Stone Age Time Flattenor R&D Production Branding / Service 1 Margin 2 3 Flattenee Activitie Copyright Michael Enright,
4 The Competitivene / Skill Imperative Competitivene mean the ability of a nation or region to carry out the economic or buine activitie neceary to provide it population with a deirable tandard of living, often in the face of national or international competition. Tough global market, reource contraint, utainability iue, and increaing competition are making competitivene more important than ever before. Recent event how u that competitivene mut be earned, not borrowed, and can only partially be inherited. A people-centric approach to competitivene i crucial if nation and region are to achieve incluive growth. Such an approach require a focu on kill, appropriate kill, and the right kill portfolio to foter competitivene and economic development. Copyright Michael Enright,
5 Potential Unit of Analyi and Action for Competitivene and Skill Development Ditrict within a city City City and uburb City-region / region without a city Nation Supra-national region World Activity Indutry Cluter Economy Traditional New focal point Copyright Michael Enright,
6 Competitivene in Indutrie Vertical Chain Activitie Copyright Michael Enright,
7 Competitivene in Indutrie Cluter Activitie Copyright Michael Enright,
8 Skill Challenge in Aia Aia face ubtantial kill challenge, including: Difficult world market Increaed global competition Shifting employment tructure Gender, ethnic, and urban-rural inequalitie Outdated, underplanned, or underfunded education and training ytem Mimatche between upply and demand for kill The need to operate acro a wide pectrum of kill at the ame time The very ucce of ome Aian economie i putting preure on them and other to enhance kill development at every level. Undertanding global force, preent competitivene, local context, development trajectorie, and intitutional capabilitie allow nation to plan kill trategie. The diverity of Aia mean one ize fit all olution are unlikely. Copyright Michael Enright,
9 Activity-Indutry / Cluter Matrix for Competitivene and Skill Activitie / or Activity- Linked Occupation Agroindutry manufacture Complex manufacture ervice Complex Service R&D Product D & E Proce D &E Component & Input Aembly Mktg & Branding Selling & Retail Mgmt Ditribution After ale Service Strategy Setting Financing Firm Admin Activitie and cluter are intereting for kill development, becaue they pan or ubume indutrie. Copyright Michael Enright,
10 Activity-Indutry Matrix Trajectorie and Portfolio Activitie / or Activity-Linked Occupation Agroindu try manufactur e Complex manufacture ervice Comple x Service R&D Product D & E Proce D &E Component & Input Activitie / or Activity-Linked Occupation R&D Agroindu try manufactur e Complex manufacture ervice Comple x Service Aembly Mktg & Branding Selling & Retail Mgmt Product D & E Proce D &E Component & Input Activitie / or Activity-Linked Occupation R&D Agroindu try manufactur e Complex manufacture ervice Comple x Service Ditribution Aembly Product D & E AS Service, W & R Strategy Setting Mktg & Branding Selling & Retail Mgmt Proce D &E Component & Input Financing Ditribution Aembly Firm Admin Etc. AS Service, W & R Strategy Setting Mktg & Branding Selling & Retail Mgmt Financing Ditribution Firm Admin Etc. AS Service, W & R Strategy Setting Financing Firm Admin Etc. Activitie / or Activity-Linked Occupation Agroindu try manufactur e Complex manufacture ervice Comple x Service R&D Product D & E Proce D &E Component & Input Activitie / or Activity-Linked Occupation R&D Agroindu try manufactur e Complex manufacture ervice Comple x Service Aembly Product D & E Mktg & Branding Proce D &E Selling & Retail Mgmt Component & Input Ditribution Aembly AS Service, W & R Strategy Setting Mktg & Branding Selling & Retail Mgmt Financing Ditribution Firm Admin Etc. AS Service, W & R Strategy Setting Financing Firm Admin Etc. Uing international comparion and experience to develop potential trajectorie AND to identify the kill bottleneck to achieving thoe trajectorie i a ueful way to formulate policy and trategy for the PORTFOLIO of kill the nation require. Copyright Michael Enright,
11 Development Wave in the Pearl River Delta Region, China Economic opening Hong Kong and local infratructure companie Hong Kong companie in traditional indutrie Local companie in traditional indutrie Foreign and local companie imple ervice and upport (I) Foreign companie in higher tech indutrie Local companie upplying MNC in higher tech indutrie Local companie emerging in higher tech indutrie Local and foreign company R&D and advanced technical activitie Local and foreign infratructure companie (II) Foreign and local companie advanced ervice and upport (II) Management center for local and international buine Each wave ha required new kill et. Copyright Michael Enright,
12 Building on Export Proceing Export Proceing Export Proceing in Higher Tech Indutrie Component Subaembly component Advanced component Technology Capital Good Service and repair Spare part Individual machine Complete ytem Related Service Quality control Tranport and Logitic Deign/ Development Commercialization/ Mgmt Development of higher value activitie ha depended on kill availability. Copyright Michael Enright,
13 Common Bottleneck Baic literacy / numeracy (gender, ethnic, and urban-rural diparitie) Skill to provide and maintain baic ervice / infratructure to promote worker productivity (health, anitation, tranportation, communication) Skill and adminitrative capacity to formulate and implement policy Ability to aborb knowledge of appropriate bet practice from abroad Baic to advanced production kill and ervice kill Baic to advanced technical kill Baic to advanced cutomer-facing kill Baic trategic and buine management kill Entrepreneurhip and advanced management kill A major quetion in many countrie i who will train the trainer? Another i who decide what kill are developed? Another i whether the focu hould be on the individual or ociety? Copyright Michael Enright,
14 Aligning Indutrial, Development, and Skill Policie Indutrial, development, and kill policie hould form a ingle, integrated whole. Skill policie hould addre preent bottleneck and requirement for deired development trajectorie and hould be pulled through by the need of the economy, not puhed through by provider. Skill policie require an analyi of company need and input from companie, worker, and the elf-employed. Incluivene require an aement of gender imbalance, ethnic imbalance, urban-rural imbalance and other obtacle to incluivene that undermine productivity and development. An emphai on bottleneck to exiting development i critical to targeting initial effort. Enuring that talented people do not have to ue all their creativity to navigate cumberome policy environment i a crucial part of kill policie and program. Copyright Michael Enright,
15 Flexibility, Adaptability, Moving Up Economic development i all about change. Economie develop bet if they are flexible and adaptable enough to change with the time. Skill development baed on activitie and cluter allow for greater flexibility and adaptability. Activitie cut acro multiple indutrie and cluter ubume multiple indutrie, o individual are not tied o much to individual indutrie. Economie develop through cluter of related indutrie, cluterfocued pathway allow for a focu on kill of today and tomorrow. The ability to compete on a global bai, interact in global production ytem, undertand underlying concept, communicate within and acro culture, and bridge the gap between upplier and cutomer provide flexibility and adaptability. A focu on tandard, quality, preciion, workmanhip, integration with other worker, the right management ytem, detail, and low defect are crucial to moving to higher value manufacturing and avoiding the middle income trap. Copyright Michael Enright,
16 Innovation and Entrepreneurhip are Crucial to Move Beyond Middle Income Type of innovation / knowledge New technologie New application / bundle of technologie New geographic, product, ervice market New marketing / ditribution ytem New buine model / mgmt tool New way of carrying out activitie New organizational form New way of communicating New financing and payment cheme Entrepreneurhip require Market opportunity Knowledge of the buine Entrepreneurial drive Creativity Strategy etting capability Start-up and growth finance An environment that reward entrepreneurhip / allow failure Suitable legal and intitutional arrangement Suitable workforce Formal R&D and technology development i often the leat important requirement for commercially valuable innovation and entrepreneurhip. Formal training, example, and mentor are way to foter entrepreneurhip in a knowledge economy. Copyright Michael Enright,
17 Characteritic of a Competitive Skill Development Sytem I integrated with development policy I relevant to local condition in term of focu and delivery I fit for purpoe I multi-faceted (formal education, vocational, in-company) Provide multiple pathway I incluive Empower companie, chool, trainer Ha lifelong learning potential Ha expanion linked with need of the economy and ociety Ha a broad definition of knowledge I a meritocracy or meritocracy plu ytem Ha method to train the trainer on an ongoing bai Identifie and aborb relevant bet practice from abroad I a locally-baed a poible, and integrated into communitie Operate at everal level at the ame time in proportion a required by the country I a living ytem that change and adjut with ociety need Provide the right portfolio of kill Copyright Michael Enright,
18 Thank you Profeor Michael J. Enright Sun Hung Kai Profeor School of Buine, Univerity of Hong Kong Director Competitivene Program Hong Kong Intitute of Economic and Buine Strategy Director Enright, Scott & Aociate Copyright Michael Enright,
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