Ability Matters: Spatial Dynamics and Human Capability in Regional Policy

9th European Week of Cities and Regions, Brussels, Open Days 10-13 October 2011

Workshop:11UNIV01 Evaluating Regional Development Initiatives: An EU-Australian Comparison

Professor Steve GarlickUniversity of Newcastle and University of the Sunshine Coast, Australia

Outline Spatial patterns of economic growth in

Australia [3-5]

Importance of interpreting human capital, enterprising & capability, stages of life, neuroscience and engaging with place [6-9]

Human capital in Australian spatial policy [10]

A European example – Värmland (Sweden) [11- 14]

Conclusions [15]

Spatial Economic Growth & Human Capital Flows: Australian Research

Modelling of 94 Australian regions over 18 years & in-depth study of 12 spatially diverse regions

increasing disparity in relative regional economic growth - becoming entrenched in large metro conurbations despite Australian regional policy aimed at reducing disparity

Eight hypothesised drivers of Australian regional growth tested - human capital flows and technological leadership most significant . Unfortunately, spatial aspects of human capital development are nowhere considered in Australian policy .

Interpreting Human capital, enterprising and capability Human capital

investment in higher order cognitive ability to meet production goals – however not ethically, social justice or spatially linked

Enterprising human capital linked to the achievement of new

outcomes on the ground within a spatial and ethical (sp-ethics) context – however not cognitively linked

Human capability approach (Sen) enables a capacity for freedom & opportunity realisation within

social justice & well-being framework. Not specifically a spatial concept.

Critical and sensitive periods & places & engaged learning for regional growth

Sensitive & critical periods & the skills multiplier (Heckman)• Investing in ‘sensitive’ and ‘critical periods’ ensures multiplied returns in

later years. Neurologically, early life experiences influence the biochemistry and architecture of neural circuits. (see fig)

Sensitive & Critical places• Investing in the connection of human capital in the transformative

influence of places (nature, society, history, culture) and its people (mentoring) enhances the return on early human capital investment. Encourages the practical application of intellect. Places are laboratories of multidisciplinary diversity and complexity

• Regionally engaged learning & opportunity realisation (see fig)

Summary: Invest in early learning and engage in learning in place

Australian regional policy & the Australian regional policy & the human capital questionhuman capital question

No investment in regionally-oriented capability or human capital planning. No explicit policy to foster long-term engagement of learning with regional development/ global priorities. Some pathway articulation between further and higher education. Some workplace learning modules. Only meets national and state learning goals in areas of skills shortage competencies (eg mining). Reactive and short term in nature.

No policy connection between education, science/ technology/ industry and regional development portfolios and between spheres of government.

Pascal’s PURE Regional Initiative Värmland (Sweden)

Develop human capital plan that connects formal/ Develop human capital plan that connects formal/ informal learning with business clustersinformal learning with business clusters

Address demographic concerns (‘brain drain‘, Address demographic concerns (‘brain drain‘, ageing population, rural-urban drift, gender ageing population, rural-urban drift, gender imbalance)imbalance)

Enterprising education, pathways & inward flow of Enterprising education, pathways & inward flow of knowledgeknowledge

InternationalisationInternationalisation

lifelong learning agendalifelong learning agenda

Visit: http://pure.pascalobservatory.org/Visit: http://pure.pascalobservatory.org/

Comprehensive region-specific human capital planning undertaken in the region to:

(a)raise the overall level of education in the region at a

faster rate than comparable regions

(b) increase employability of regional people

(c) improve outcomes for regional business and public services, and

(d) lifelong learning.

Värmland region: Human capital goals

Värmland human capital plan: Strategies & projects

Investing in younger age learning – a range of initiatives covering science, technology, business experience focusing on ages 4 to 16 involving regional business, education institutions, municipal government and regional organisations.

Investing in the region’s ‘brain gain’ – a range of initiatives covering career fairs, region induction programmes, recruitment programme, identifying skill needs..

Enhancing regional connectivity for human capital development through partnership arrangements with business clusters, Karlstad University, schools, vocational education, local councils, regional bodies. Initiatives include - regional investment in Teknikcollege and in care and nursing colleges.

Enhancing quality, mobility and coordination among teachers in the Region’s learning organisations.

Värmland human capital plan: Värmland human capital plan: Technology in Steel & EngineeringTechnology in Steel & Engineering

Pre-school education

Primary education

Secondary education

Vovcational education

Adult&further education

Higher education

Stages of learning

Regional objective

Technology in steel & engineeringcluster

Children’s university

Children’s university

Enterprising learning programmes

Science Centre

Technology club

Technology hunt

PhD scholarships

Enterprising learning programmes

New professorships

Targeted research projects

Technology colleges

Investment in apprentice training

Six institutes for adult education

Other objectives

Conclusions

Ability matters for regions in a knowledge – based society.

Human capital is not spatially sticky with leakage and underemployment from non-metro to metro regions.

Decide what kinds of ability are important in regional community and undertake capability planning and action that engages all learning entities with regional and global priorities.

Regional agencies and policy institutions have a role in facilitating region-specific solutions to enhance connectivity between capability realisation and regional and global priorities.

Pascal’s PURE initiative provides a framework & vehicle to

connect up learning, regional and global goals, agencies and economic outcomes based on European experiences. Värmland region shows what can be done by investing in early ages connected to place.

ReferencesReferences

. . Garlick, S. 2010. “A ‘capabilities solution to the flight of human capital from Australia’s regions”. Third Global Knowledge Cities Summit Conference, Melbourne.

Garlick, S., Taylor, M., and Plummer, P. 2007. An enterprising approach to regional growth. Adelaide, NCVER.

Heckman, J. 2007. “The economics, technology and neuroscience of human capability formation”. Discussion paper 2875, IZA, Bonn.

Heckman, J and Cunha, F. 2006. Interpreting the evidence on life cycle skill formation. JEL

Sen, A. 1985. Commodities and capabilities. Amsterdam, North-Holland.

Sen, A. 2009. The idea of justice. The Belknap Press of Harvard University Press, Cambridge, Mass.