Human Resources and Innovation Workshop on Advancing Innovation

Human Resources and Innovation Workshop on Advancing Innovation: Human Resources, Education and Training 17 – 18 November 2008 Bonn, Germany Dirk Pilat Head, Science and Technology Policy Division Contact: dirk. pilat@oecd. org

Overview • The OECD Innovation Strategy • What we know about human resources for science and technology (HRST): 1. 2. 3. 4. 5. Supply and demand Research careers Women in science The international mobility of researchers Other work in DSTI • Human capital and innovation • Gaps and policy challenges 2

The OECD Innovation Strategy • Ministerial Mandate from May 2007 • Growing recognition that innovation: – is a key driver of growth and helps address critical global challenges – is changing rapidly, involving new actors, approaches, and countries – challenges governments to develop appropriate policies • We need new approaches for more effective policies, also for human capital. 3

Supply and Demand of HRST Many OECD countries are faced with low and declining shares of science and engineering graduates 4

Research careers are increasingly considered unattractive • Declining interest in research careers: – Ph. Ds mainly employed in universities. – Increase in doctorates has not been matched by increases in permanent academic positions; tenured positions are being replaced by non-tenured temporary positions. – Private returns from investing in an S&T research career may be too low relative to other careers. • Policy issues include: – – possible demand-side weaknesses impacts of insecurity on the attractiveness of science careers; public sector employment; and salaries 5

Women remain under-represented In particular in certain fields and in higher positions, women are under-represented in research relative to overall employment 6

International mobility is growing Foreign talent contributes significantly to overall supply of HRST Share of foreign-born HRST aged 25 -64 in EU-27 and selected countries, 2006 7

Other relevant work in DSTI • Contributed to the EDU Tertiary Education Review – Enhancing the Role of Tertiary Education in Research and Innovation • Improving measurement, e. g. Careers of Doctorate Holders: – Project follows the labour market, career and mobility paths of doctorate holders – data for 27 countries are expected by end-2008 8

But human resources in science and technology are not the same human capital for innovation… • Human capital – broad range of skills, capabilities, and attributes held by individuals, teams and organisations making it possible for them to innovate • Partly based on formal education but also involves the creation of firm-specific human capital via vocational or on-the-job training • Many industries are skill-based without being HRSTintensive. – high levels of firm-specific skills; – inter-sectoral flows of knowledge 9

Innovation is changing. . . • Non technological innovation – Organisational and marketing innovations • R&D and innovation in service industries – e. g. financial services, creative industries • More “open” approaches to innovation – R&D co-operation, external sourcing of knowledge, networks etc. • Growing internationalisation of research – Increasing globalisation of R&D and industry-science relationships; new global players 10

… and requires a broad range of capabilities • Skills and competencies required for innovation include: – Problem solving capabilities – Addressing growing complexity – International cooperation – Leadership – Continual updating and retraining – Networking and teamwork –… 11

What are the gaps… • What types of skills and capabilities are required? • Is there a mismatch between supply and demand? • How do different organisational workplace structures shape peoples’ ability to innovate? • Is social capital (trust) more important in a climate of globalisation and open innovation? • Is there an optimal mobility level? • How can we measure performance - we do not have good indicators on skills • … 12

… and policy challenges? • What kinds of education and training systems are needed to help foster innovation? • What are the challenges for investing in human capital? Are incentives needed to strengthen private investment? • How does the composition of human capital supply relate to the composition of demand? • How do governments ensure policy coherence across multiple actors involved in innovation? A large agenda for work … 13