Post on 18-Nov-2014
description
Human Capital and the National Innovation Strategy for
CompetitivenessThe case of Chile
Hernán AranedaHead, Centre for Innovation in Human Capital
Fundación Chile
Santiago, April 26th, 2010
Who we are:Fundación Chile is a non-profit, privately owned corporation, created in 1976 by an agreement between the Chilean Government and ITT Corporation (U.S.A.).In2005 BHP Billiton became a co founder.
Our Mission:To increase the competitivity of human resources and productive sectors and services, by promoting and developing high impact innovations, technology transfer and management for the country.
About Fundación Chile
“There are three proven models worldwide that are examples for emerging economies: The industrialization model of China, The outsourcing model of India and the model of Fundación Chile”(OECD)
“…by 1982, Fundación Chile had its first salmon farm up and running. Seven years later it sold it to a Japanese company for $22 million” (Businessweek)
“In 2004, its first year, the laboratory turned out 1.7m partially fattened lilly bulbs, using up-to-date biotechnology. Vitro Centre is a joint venture between local investors, Fundación Chile and a Dutch firm… (The Economist)
Strong Brand Name Recognition
� 16 million people, native language spanish
� Upper Middle income country, per capita GDP US$ 12.000 (purchasing power parity)
� Average GDP Growth 1990-2005: 5,5 %
� Global Competitive Index 2007: 26
� Significant progress in poverty reduction: 44% to 18% (1986-2006).
� Unemployment rate: 7.3 (best in 8 years)
� High coverage in primary and secondary education
� Participation in Tertiary Education has tripled in the last15 years.
Chile’s background
Corruption Perception Index
20thOverall Ranking Among 146 Countries
1stAmong Latin
American Countries
Ranking
Source: Transparency International (www.transparency.org), 2005
5.9
5.5
4.5
3.1
2.6
2.5
2.4
2.0
1.3
0.6
9.0
6.1
Czech Republic
Hungary
Brazil
Argentina
OECD
Poland
Mexico
Indonesia
Chile
South Korea
Singapore
China
GDP : Annual Growth Rates Selected
Countries: average 1990-2005
Chile is performing fine in several rankings…
POVERTY 1987 2006% of population 44% 18%
Source: ECLAC
But…
� Percapita income still lacks behind the OECD (40% ofOECD average income level)
� Unequal income distribution (0.55 Gini; 0.75 excludingthe highest income decile)
� Economy too dependent on commodities: more R&Dinvestment required
� Relatively low labour productivity
� Low quality of learning outcomes across the educationsystem (Simce, TIMMS, PISA, IALS)
� Uneven distribution of opportunities in higher educationand training
� Low participation of women in the labour force
The country’s most important goal: doubling percapita income in the next 15
years to become a developed country
… and this is a major challenge. Only once in our history have we managed to double our per capita GDP in 16 years: 1988-2004.
IMF: per capita GDP(US dollars, Sept. 2006)
Estonia (17,802)Lithuania (15,443)
Argentina (14,838)
Latvia (13,875)
Malaysia (11,915)
CHILECHILE
Singapore (29,743)
Taiwan (29,244) Spain (27,542)
N. Zealand (25,655)
Slovenia (23,159)
Korea (21,887)
USA (43,236)Canada (35,779)
Hong Kong (35,396)
Finland (32,822)Australia (32,127)
UK (31,585)Sweden (31,264)France (30,150)
Business as usual is not sufficient; We must decisively move towards a Knowledge Based Economy
Growth depends less on capital and labouraccumulation than on efficient use of these factors(Total Factor Productivity).
We need to move from static comparative advantages linked to natural resources to a stage where the incorporation of more knowledge into products and services is crucial.
In brief - the capacity to transform knowledge into wealth, the capacity to INNOVATE.
Are we prepared?
� Over the last decade TFP contribution has fallen dramatically…and forecasts are frightening.
� TFP would account for less than 25% of Chile’s growth in the 2007-2011 which compares poorly with the figure for competing economies (40% to 50% according to The Economist Intelligence Unit)
Growth TFP Capital Labour
1984-1997
7.1 2.8 2.1 2.2
1998-2005
3.6 0.9 2.4 0.4
CHILESelected countries*
* Bálticos, Europa del Este y países de rápido crecimiento de Asia.
TFP contribution to growth 2007-2011
Three decisions to move forward Innovation
1. Increasing public funding to support the strategy (new mining tax).
2. R & D tax incentive for companies.
3. Creation of a National Innovation Council forCompetitiveness – National Innovation Strategy
� To propose a roadmap for a development process based oncompetitiveness supported by human capital and knowledge.
� To look after policy coherence
� Defining strategic objectives
� Defining the roles of agents
� Resource allocation aligned with the strategic priorities
INNOVATION STRATEGY
HUMAN CAPITAL
HUMAN CAPITAL
R&D
strategycally
oriented
R&D
strategycally
oriented
BUSINESSINNOVATION(value creation)
BUSINESSINNOVATION(value creation)
EFFICIENT INSTITUTIONALITY(long term vision, “accountability”, regionally focused)
SELECTIVITY Focus on economic clusters
COMPETITIVENESS
Selectivity: focus on clusters
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
1.3 1.5 1.7 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5
Horticultura primaria
Metalurgia
Consultor ía
Farmac éuticaMedicina
especializada
Bovinoy ovino
Industrias creativas
Serv.medioambiente
Acuicultura
Silvicultura
Comercio minorista
Outsourcing
Turismo 1
Porcicultura y avicultura
Celulosay papel
Productos de madera
Educaci ón superior
Comunicaciones
Vitivinicultura
Logística y transporte
PlásticoFruticultura
primaria
Minería del cobre y subproductos
Construcci ón
Lácteo
Alto
Bajo
Medio
Po
ten
cial
de
crec
imie
nto
(%
)
Servicios financieros
Plataforma de negocios para LA
Industria química
Minería no metálica
Alimentos procesados de
consumo humanoSectores que se destacan
1 billón de pesos
Crecimiento PIB en 10 a ños
Esfuerzo para lograr la competitividad necesaria
Medio BajoAlto
Alimentos proc. para consumo animal
(1) Dentro del sector de Turismo fue considerado el subsector de Turismo de Intereses Especiales, que tiene un dinamismo much o mayor que el sector de Turismo tradicional
Consolidate a business system aimed at the creation of value by means of innovation – in all its forms and aspects – as a competitiveness strategy in global markets.
BUSINESS INNOVATIONBUSINESS INNOVATION
To establish an accessible and top-quality life-long-learning system which allows the country to rely on the relevant human capital the Knowledge Economy requires
HumanCapitalHumanCapital
Strengthen a platform for the creation, dissemination and application of knowledge in a permanent and consistent research effort coherent with the country’s productive and social problems.
Science with strategic orientation
Science with strategic orientation
Human Capital Stock
Average years of schooling (ages 25-65)
7,89
0
2
4
6
8
10
12
14
Nzeala
ndKor
eaFinl
and
Chec R
ep Che
caHolla
ndIre
land
Hungar
yGre
ece
Argenti
naChile
Mala
ysia
Spain
Mex
icoColom
biaPor
tuga
lBra
zil
Tertiary education graduates in theworkforce
Prof. and techn. as a % of the current workforce
01020304050
Finlan
dHolla
ndChec
Rep
Nzeala
ndIre
land
Spain
Hungar
yKore
aColom
biaMex
icoMala
ysia
ChileBraz
il
Distribution of the Population aged 25 to 64 years by highest level of education completed, 2003
0
10
20
30
40
50
60
70
80
90
100
Thailand2003/04
Paraguay2002
Peru 2002 Brazil 2002 Indonesia2002/03
Jordan2002/03
Chile 2003 Argentina2002
Uruguay2002
Malaysia2002
RussianFederation
2002/03
OECDmean 2003
WEI mean2003
%
Primary Lower secondary Upper secondary Tertiary (type B) education Tertiary (tipe A) education
Source: Education Trends in Perspective – Analysis of the World Education Indicators. UNESCO-UIS/OECD 2005
Educational attainmentof the adult population: the stock problem
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%G
erm
any
Swed
enU
nite
d St
ates
Uni
ted
King
dom
Chi
leC
zec
Rep
ublic
Hun
gary
Portu
gal
Adult Functional Literacy Survey (1998)
Level 4/5Level 3Lever 2Level 1
Basic competence (prose):50% of the population in performance level 1
PERFORMANCE LEVEL
% of Enrollment in HigherEducation
0
10
20
30
40
50
60
70
80
90
Chile S.Korea Estonia Ireland Latvia Lithuania
1991
2004
PRIMARY EDUCATION COVERAGE BY INCOME QUINTILE, 1990 - 2003
95,6 96,9 97,7 97,5 98,998,5 99,1 99,5 99,5 99,5
0
10
20
30
40
50
60
70
80
90
100
I II III IV V
Income Quintiles
Per
cen
tag
es
1990 2003
Primary & Secondary Education: highcoverage, low quality of learning outcomes(TIMSS, PISA, SIMCE).
SECONDARY EDUCATION COVERAGE BY INCOME QUINTILE, 1990 - 2003
73,9 77,280,8
87,194,5
87,792,0 94,2 96,9 98,8
0
10
20
30
40
50
60
70
80
90
100
I II III IV V
Income Quintiles
Per
cen
tag
es
1990 2003
Tertiary education enrollment by income quintiles
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
I 4,4 7,9 9,1 8,8 8,7 9,6 14,7 19,8
II 7,7 9,8 10,2 15,4 13,3 17,7 21,4 25,1
III 12,4 13,0 17,4 21,5 23,2 31,7 33,1 33,3
IV 22,0 23,9 32,1 35,2 38,9 43,0 46,9 47,2
V 40,7 41,2 54,8 60,0 65,4 67,4 73,6 67,1
1990 1992 1994 1996 1998 2000 2003 2006
ADULT PARTICIPATION IN TRAINING (15 to 60 years people)
13,9
9,1
13,6
0
2
4
6
8
10
12
14
16
CASEN Survey 1998 CASEN Survey 2000 CASEN Survey 2003
Per
cen
tag
e
Participation in training
Most participants in training come from bigcompanies…
PARTICIPATION RATE IN TRAINING PROGRAMS BY ENTREPRISE SIZE
6,0
18,3
26,0
38,6
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
1 to 9 10 to 49 50 to 199 200 or more
Number of workers
Rat
e
Source: SENCE and CASEN Survey 2003
LLL drivers and issues (1)� High coverage in initial education but low quality of
learning outcomes (TIMMS, PISA, etc.)
� A significant % of adult population without initialeducation lacking basic skills
� Students lacking academic and employability skills for a friendly school-to-work transition
� Increasing demand for post-secondary learningopportunities: education seen as the vehicle for social mobility (high private returns, etc.)
� Expansion of the market of post-secondary ed. andtraining providers (esp. private universities) but no publicinformation about graduates labor market outcomes
� Concern about quality and relevance of programs, accreditation frameworks still to be piloted
� Disjointed “systems” providing LLL and training opportunities,
� Public effort on training limited to a tax incentive forcompanies; no funding arrangements for individual workers.
� Vocational education not well funded by government: poorquality and relevance for industry
� A significant amount of (competent) workers withoutformal recognition for their skills
� Lack of a shared vision and agenda among ministeriesrelevant for LLL: education, labour, economicdevelopment.
LLL drivers and issues (2)
� Adult education, technical-vocational education, workforce training and career guidance systemsseen as missing pieces in the 90’s reforms
� Learning outcomes and not only “inputs” and“processes” as the best approach once universal coverage is achieved
� Lack of a coherent public policy on vocationaleducation (both secondary and postsecondary)
LLL drivers and issues (3)
Strategy
� Main purpose: design and piloting new arrangements, capacities and funding mechanisms supporting LLL
� Multisectorial: Min of Education; Min Labour & Social Affairs; Min of Economic Development; IndustryAssociations; companies
� Combination of remedial actions; learning innovations; institutional innovations; ”demostrative projects”
� Diverse clientele:
adults with low educational attainment (unemployed/ bad jobs);
young people attending VE;
Workforce
NATIONAL LABOUR COMPETENCY SYSTEM
IndustryEndorsed
CompetencyStandards
CompetencyAssessment & Certification
System
Labour MarketIntermediation /
InformationServices
HR Management(recruitment, selection, performance appraisal,
training, sucession plans, rewards, etc.)
TechnicalVocational Education
(secondary, postsecondary)
NationalTraining System
A systemic view fromthe National Competency System
1. Seleccionar e Identificar Sector
Productivo
2. Movilizar Actores Claves
3. Definir Estándares
4. Validar Estándares
con Actores Claves
5. Adaptar Currículum y Formación según
Estándares
6. Evaluar y Certificar Trabajadores
7. Promover y Difundir
8. Actualizar Estándares según Necesidades
MANTENIENDO LA VENTAJA
COMPETITIVA
1. Seleccionar e Identificar Sector
Productivo
2. Movilizar Actores Claves
3. Definir Estándares
4. Validar Estándares
con Actores Claves
5. Adaptar Currículum y Formación según
Estándares
6. Evaluar y Certificar Trabajadores
7. Promover y Difundir
8. Actualizar Estándares según Necesidades
MANTENIENDO LA VENTAJA
COMPETITIVA
SELECT AND IDENTIFY INDUSTRY
KEEPING
THE
COMPETITIVE
EDGE
DEFINE OCCUPATIONAL
AND EMPLOYABILITY SKILLS
STANDARDS
VALIDATE STANDARDS
WITH STAKEHOLDERS
ADAPT CURRICULA AND TRAINING TO
STANDARDS
EVALUATE AND CERTIFY WORKERS /
STUDENTS
PROMOTE AND
DISSEMINATE
UPDATESTANDARDS AS NEEDED
MOBILIZE STAKEHOLDERS
Where we stand
15 economicsectors
500 occupstandards, + employability skillsmodels (8 competencies) +entrepreneurshipskills
Methodologytransfer to300 VET providers
40.000 workers certifiedEmployability skills for7.000 students
-Web site competencystandards-New regulation-Media coverage
15 industry specific associations, 150 leading companies
A case of best practice in CompetencyDevelopment: the chilean Mining Sector
2000
INTEGRACIÓN EMPRESAS
(Estandarización)
CodelcoCollahuasiEscondida
Barrick
PILOTO EVALUACIÓN
1371 Trab.Codelco
CollahuasiEscondida
2001
ESTUDIO DE IMPACTO ECONÓMICO
CERTIFICACIÓN DE COMPETENCIAS EN
MINERÍA
Depto. AdministraciónUniversidad de Chile
2002
GIRATECNOLÓGICA
España - Inglaterra – Francia
Consejo MineroFundación Chile
CollahuasiEscondidaCodelco
Antofagasta Minerals
2008
PROMULGACIÓN LEYDE CERTIFICACIÓN DE
COMPETENCIAS
EXPERIENCIAS DEMOSTRATIVASEN EMPRESAS PRIVADAS Y PÚBLICAS
Codelco ChileEnami
CollahuasiBarrick – ZaldivarAnglo American
2009
LANZAMIENTO CATÁLOGOCOMPETENCIAS
SECTOR MINERO 2009
2003
INTEGRACIÓNGUBERNAMENTAL
ChilecalificaSence
Acuerdo
Fundación ChileConsejo Minero
Bid-Fomin
1999
CREACIÓN ÁREACOMPETENCIAS
LABORALESFUNDACIÓN CHILE
Gerencia deCapital Humano
1998
Where do we stand against the LLL agenda?
� Several pilots and demostrative projects articulatingsupply and demand at a regional level. Impactevaluation going on (WB).
� Some of the regulations needed in place or in final stage of approval (ie National Competency System)
� Competency “movement” underpinning curriculumdevelopment in most higher institutions across thecountry. “Modules” and “Competency Based VET Programs” being developed.
� National Agenda for Innovation and Competitiveness, a new driving force for LLL in the country, as far as itsupports human capital in strategic economic clusters
Current issues
� Competing policy agendas still a problem: M.Educationtoo busy with the unfinished school reform andM.Labour with the pension reform and persistent youthunemployment
� A new policy for secondary and postsecondary TVET
� Qualifications framework informing pedagogicalinnovation and new learning materials
� Quality framework for QA and accreditation
� Diversifing funding mechanisms for learners beyondinitial education
� Innovation in education & training.