Skills and innovation talents related to future business

growth

Seminar

“Innovation and modernisation of the rural economy”

Gaio, Portugal, June 18, 2015

Peter Laan (FARO Advies, project leader)

FARO Advies

Future business growth in rural areas using young

talents Based on ideas and results from:

- Interreg IV-B North Sea project Vital Rural Area (www.vitalruralarea.eu, 2007-2013)

- Future business growth using young talents

(proposed Interreg V-B North Sea project, 2014 - 2020)

FARO Advies

General remarks related to rural and remote areas

Average educational level is low

Infrastructure (especially ICT)and level of services is poor or poorly accessible

Living and working circumstances are not attractive for youngsters

Potential for innovative sectors can be better utilised (i.e. low carbon economy and the renewables industry) or connected to urban centres through supply chains

FARO Advies

Too little innovative and competitive enterprises (‘top sectors’) are present in rural areas

Especially sectors in ß-science, technique and ICT suffer on the lack of skilled people

Labour markets and 3rd level education are insufficiently tuned

FARO Advies

Associated problems

Avoiding a waste of human capital

OECD (2015) ”Young people are struggling to enter the labour market. In some countries up to 25% of the 16-29 year-olds is neither employed nor in education or training (NEET). Improving the employability of youth requires a comprehensive approach”

Young people are not well-equipped for entering the labour market

Recruitment from abroad over under-qualified local workforce prevails in many sectors

FARO Advies

Megatrends as drivers for innovation

Dealing with megatrends that currently transform the global industrial environment and business terms in general, hence function as drivers for innovation: Demographic change (ageing population) Globalization ICT development Smart technologies New media Organising

FARO Advies

Reshaping our vision towards work

FARO Advies

• Skills and competences will be the global currency of the 21st century!

• Companies (SMEs) must take the lead in finding the right future skills, competences and knowledge to compete on the EU and global market

• Skills shortages

• Skills gaps

Skills shortages in specialized industry sectors

FARO Advies

• SMEs compete within comparable sectors (supply chains) -> not adding capacity, not sustainable

• It leaves companies with the challenge to ensure important knowledge and skills do not disappear

• Expertise is domain-specific -> being an expert in one particular domain does not easily transfer to other domains

• When retirement starts to take hold and demand increases, skills shortages will become more widespread unless recruitment and training is increased to compensate

Skills gaps to overcome

Fast market developments ask for a non-institutionalized approach

Megatrends as drivers for innovation ask for key-skills for future workforce, not recognized today

• Novel and adaptive thinking

• Social intelligence

• New media literacy

• Cross disciplinary skills

• Creation of a design mind-set

• Conceptual thinking

FARO Advies

Illustrative example built on new skills

FARO Advies

Source: EIfI, 2014

Skills gaps to overcome

New emerging markets ask for innovative young entrepreneurs

• Labour requirements should not specifically be sector- or job-directed, but rather focusing on future work skills and competences, required across different jobs and work settings

FARO Advies

How to efffectively work towards overcoming the

skills problem Primary response = Flexibility

• Non-institutionalized approach -> i.e. regional Living Lab driven by entrepreneurs/SMEs

• Talent development that is not job- or sector directed

• Multi-sectoral, bottom up approach (i.e. student companies)

Secondary response = stimulating non-traditional learning methods

• Vocational Education and Training

• Master apprentice system

• ‘Discovery learning’ (technical sector, design and problem-solving attitude)

FARO Advies

Living Labs as experimental gardens and a melting pot for

innovation

FARO Advies

Regional Living Lab

Quadruple Helix

Open innovatio

n

Co-creation

Regional approach: meet & cooperate

New enterpreneurs:

network approach

Discovery learning

(technique, ß-sci, ICT,

enterpreneurship)

New skills and

competences

Up-skilled VET

Master-apprentic

e

Non-tradition

al learning

Future innovation:

Multidisciplinary approach

SMEs

Skills for success !

A skills system that is future proofed and develops the talents of young people with the skills required by industry developed in partnership with industry for industry: “skills for success”

FARO Advies

Regional and rural development Developing or attracting innovative industry

sectors and SMEs to rural areas needs asks for an integrated and long term regional

approach -> Smart Specialisation Strategy

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Regions with strong coalitions of local/regional authorities, entrepreneurs and knowledge-centres/universities show a good performance

Region building implies: * creating of connections * using each others qualities* creating win-win effects* joint strategies* focus and priorities* strong governance

and.... is based on mutual TRUST!!

FARO Advies

Smart Specialisation Strategy – attention points

FARO Advies

FARO Advies

  % young people on vocational

courses

% of under 25 yrs who are unemployed

Hungary 25,7 26,6

United Kingdom

32,1 19,6

Denmark 46,5 9,9

Germany 50,9 8,7

The Netherlands

67,0 8,7

Austria 76,5 8,8

Vocational training and unemployment

Source: Eurostat, 2010

Learn from the good examples, performing well in PISA and in their economies

Apply to the 14-18 yrs curriculum Emphasis on vocational training that is “in tune

with industry needs”

-> improving economic performance and employment prospects

-> making locations more attractive to inward investments by creating a talented young population

FARO Advies

The importance of a good VET system