Using Skills in Spain – Workshop with Stakeholders
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This presentation was prepared for the Diagnostic Workshop with Stakeholders in Cuenca (November 24-25, 2014) in the context of the “Building an Effective Skills Strategy for Spain” project, a collaborative project of the OECD and the Government of Spain. The material was intended as input to the Diagnostic Workshop with Stakeholders and does not aim to provide a comprehensive assessment of Spain’s Skills System. It focuses on the Using Skills pillar of the OECD skills strategy.
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Using Skills in Spain – Workshop with Stakeholders
- 1. OECD Skills Strategy Building an effective skills strategy for Spain: Effectively Using Skills Diagnostic Workshop with Stakeholders Cuenca, 24-25 November 2014
- 2. How to unlock Spain’s full skills potential?
- 3. Pillar 3: How can a country put skills to effective use? Help employers to make better use of their employees’ skills Provide better information about the skills needed and available Facilitate internal mobility among local labour markets skills.oecd Better Skills, Better Jobs, Better Lives Create a better match between people’s skills and the requirements of their job Increase the demand for high-level skills Help economies to move up the value-added chain Stimulate the creation of more high-skilled and high value-added jobs Foster entrepreneurship
- 5. Main messages -Innovation is a broad concept. skills.oecd Better Skills, Better Jobs, Better Lives 5
- 6. Main messages -Innovation is a broad concept. skills.oecd Better Skills, Better Jobs, Better Lives 6 “The implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations.” OECD and Eurostat (2005), Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data. OECD, Paris.
- 7. How does human capital spur innovation ? skills.oecd Better Skills, Better Jobs, Better Lives 7 -Skilled people create and implement innovations. A 10% increase in the share of the workforce with at least a college degree in US cities raises patenting per capita by about 10% (Carlino and Hunt, 2009). -Skilled people help absorb innovations. Innovation in firms is particularly associated with in-house development of skills, rather than their acquisition through hiring, owing to the former’s effects on absorptive capacity (Jones and Grimshaw, 2012). -Synergies with other innovation inputs. For instance, the uptake and productive use of ICTs significantly influenced by management and employee skills (Gretton et al, 2004). -Skills are crucial to enterprise growth and survival. Entrepreneurial activity is often a carrier of innovation and structural economic change. -More skilled users and consumers of products and services provide suppliers with ideas for improvement (Von Hippel et al, 2011).
- 8. skills.oecd Better Skills, Better Jobs, Better Lives Features of Innovation in Spain 8
- 9. Gross domestic expenditure on R&D, 2001 and 2011 As a percentage of GDP % 5 4 3 2 1 skills.oecd Better Skills, Better Jobs, Better Lives 9 0 2011 2001 Source: OECD, Main Science and Technology Indicators Database, www.oecd.org/sti/msti.htm, June 2013
- 10. Patents and trademarks per capita, 2009-11 Average number per million population 2009-11 ARG TUR BRA SAU ZAF RUS BRIICS IND 100 10 1 MEX skills.oecd Better Skills, Better Jobs, Better Lives 10 ISL NZL AUS LUX DNK ISR USA AUT GBR FRA BEL CAN CHE CHL PRT SVN GRC HUN SVK CHN EST CZE NLD SWE DEU ESP NOR EU28 FIN IRL ITA OECD KOR JPN POL Source: Source: OECD, Patent Database, June 2013; US Patent and Trademark Office Bulk Downloads: Trademark Application Text hosted by Google, May 2013; OHIM Community Trademark Database CTM Download, May 2013; JPO, Annual Reports 2001-12, June 2013. 0 0 1 10 100 Triadic patent families per capita Trademarks abroad per capita 500 500 IDN Axes in logarithmic scale
- 11. However, across the OECD area many innovating firms don’t invest in R&D. Their innovation is driven by Knowledge-based Capital. skills.oecd Better Skills, Better Jobs, Better Lives 11
- 12. skills.oecd Better Skills, Better Jobs, Better Lives 1 2 What is knowledge-based capital (KBC) ? Computerised information Innovative property Economic competencies
- 13. What is knowledge-based capital (KBC) ? skills.oecd Better Skills, Better Jobs, Better Lives 1 3 Computerised information Software and databases Innovative property Economic competencies
- 14. What is knowledge-based capital (KBC) ? Copyrights, patents, trademarks, designs skills.oecd Better Skills, Better Jobs, Better Lives 1 4 Computerised information Innovative property Economic competencies T M
- 15. What is knowledge-based capital (KBC) ? (brand equity, firm-specific human capital, business networks, organisational know-how that increases enterprise efficiency, skills.oecd Better Skills, Better Jobs, Better Lives 1 5 etc.) Computerised information Innovative property Economic competencies
- 16. Business investment in KBC and tangible assets (% adjusted GDP, 2010) Source: OECD calculations based on INTAN-Invest, Eurostat and multiple national sources. 35% 30% 25% 20% 15% 10% 5% skills.oecd Better Skills, Better Jobs, Better Lives 16 KBC accounts for near to or over half of all business investment in several countries 0% Tangible capital Computerised information Innovative Property Economic Competencies
- 17. Knowledge-based capital related workers, 2012 As a percentage of total employed persons 0 5 10 15 20 25 30 USA GBR ISL NOR FRA DEU SWE NLD BEL EST SVN FIN IRL AUT LUX CZE POL DNK GRC ESP HUN PRT ITA SVK skills.oecd Better Skills, Better Jobs, Better Lives 17 Source: OECD, based on United States Occupational Information Network Database, US Current Population Survey and European Union Labour Force Survey, June 2013. TUR Organisational Capital Computerised Information Design Research & Development Overlapping assets %
- 18. Many countries worry that interest in science is low and that too few students – particularly women – pursue studies in science and engineering. skills.oecd Better Skills, Better Jobs, Better Lives 18
- 19. Graduates at doctorate level, 2011 By field of education % 100 80 60 40 20 skills.oecd Better Skills, Better Jobs, Better Lives 19 Source: OECD, based on OECD Education Database and national sources, July 2013. 0 Sciences Engineering, manufacturing and construction Health and welfare Humanities, arts and education Social sciences, business and law Services and agriculture Share of new science and engineering doctorates awarded to women
- 20. Researchers by sector of employment, 2011 As a percentage of total researchers, full-time equivalent % Business enterprise Government Higher education Private non-profit Share of business enterprise in total R&D expenditures 100 80 60 40 20 skills.oecd Better Skills, Better Jobs, Better Lives 20 0 OECD, Research and Development Statistics Database, www.oecd.org/sti/rds, June 2013.
- 21. Young firms contribute disproportionately to job creation (and radical innovation) skills.oecd Better Skills, Better Jobs, Better Lives 21 Source: OECD, Dynemp project. www.oecd.org/sti/ind/dynemp.htm
- 22. OECD Skills Strategy Better Skills, Better Jobs, Better Lives skills.oecd Ejercicio 6.1: Uso de competencias Use of Skills at Work Source: OECD Survey of Adult Skills (PIAAC), 2013 Note: PIAAC includes detailed questions about the frequency with which respondents perform specific information-processing as well as generic tasks in their jobs. A value of 0 indicates that the skill is never used; 1: used less than once a month; 2: used less than once a week but at least once a month; 3: used at least once a week but not every day; 4: used every day. Questions: • In your experience, what are the primary barriers to maximising the use of skills in the workplace? • What are the concrete reasons why particular groups in Spain, such as women, seem to have a lower use of skills at work? • What more could be done to increase skills utilisation?
- 23. OECD Skills Strategy Better Skills, Better Jobs, Better Lives skills.oecd Ejercicio 6.2: Uso de competencias Business investments in knowledge-based capital and tangible assets Source: OECD STI Scoreboard 2013 Questions: • In your experience, what are the barriers for business to invest in innovation (new products, processes, services or forms of organisation), considering in particular the low investments in human capital? • What could be done to improve business investments in innovation?
- 24. OECD Skills Strategy Better Skills, Better Jobs, Better Lives skills.oecd Ejercicio 6.3: Uso de competencias The graph for discussion is: Source: OECD, Dynemp project. www.oecd.org/sti/ind/dynemp.htm Questions: • In your experience, what are the barriers for new firms seeking to hire the skills they need? • Is it straightforward for new firms to recruit young highly-skilled graduates ? If not, why, and what might be done to improve on the current situation ?
- 25. OECD Skills Strategy Better Skills, Better Jobs, Better Lives skills.oecd Ejercicio 6.4: Uso de competencias Barriers to entrepreneurship, 2013 Question: • Do skills also represent a barrier to entrepreneurship – and to business growth - in Spain ? If so, in what ways ? 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 For corporations For sole proprietor firms In services sectors Licences and permits system Rules and procedures² Legal barriers Antitrust exemptions³ Spain OECD Barriers in network sectors Administrative burdens on startups Complexity of regulatory procedures Regulatory protection of incumbents Source: OECD Economic Survey of Spain, 2014
Notas do Editor
- -Innovation occurs through R&D and science….but also non-R&D-based investments (e.g. in designs, data and new business models). -So, no single level of educational attainment or field of study is optimal for driving innovation. -A broad mix of skills is needed, depending on the type of innovation prevalent in a given economy. -But common policy challenges arise in achieving this broad mix.
- Jones and Grimshaw (2012) summarise the assessments of how training and skills affect innovation in firms. In particular, the research shows that: both tertiary and vocational education produce valuable skills, and there is a positive innovation effect coming from intermediate technical skills; innovation is particularly associated with in-firm development of skills, rather than their acquisition through hiring, owing to the former’s positive effects on absorptive capacity; and sectoral variation in how skills affect innovation suggests that institutions such as sector skills councils are important. Jones, B. and D.Grimshaw (2012), “The Effects of Policies for Training and Skills on Improving Innovation Capabilities in Firms”, NESTA Working Paper Series 12/08. Stern et al (2000) examine the determinants of national innovation capacity, focusing on patenting activity, and identify patent protection as key (along with R&D manpower and spending, openness to international trade, and funding of academic research by the private sector). Studies suggest that R&D performed by the business sector is the strongest driver of this positive association (but that private-sector R&D is often linked in complex ways to public sector R&D).
- Stern et al (2000) examine the determinants of national innovation capacity, focusing on patenting activity, and identify patent protection as key (along with R&D manpower and spending, openness to international trade, and funding of academic research by the private sector). Studies suggest that R&D performed by the business sector is the strongest driver of this positive association (but that private-sector R&D is often linked in complex ways to public sector R&D).
- Compare to others…. So there has been a sizeable increase in R&D, as a share of GDP, since 2001.
- Patents and trademarks both give us information about innovation, although they are imperfect approximations (not all firms in the same industry engage in patenting, and not all patents are equally valuable, for example). Triadic patent families are patents applied for at the European Patent Office (EPO), the Japan Patent Office (JPO) and the United States Patent and Trademark Office (USPTO) to protect a same invention. Triadic patents are typically of higher value and eliminate biases from home advantage and the influence of geographical location. Trademark counts are subject to home bias, as firms tend to file trademarks in their home country first. Trademarks abroad correspond to the number of applications filed at the USPTO, the Office for Harmonisation in the Internal Market (OHIM) and the JPO, by application date and country of residence of the applicant. For the United States, EU members and Japan, counts exclude applications in their domestic market (USPTO, OHIM and JPO respectively). Counts are rescaled, taking into account the relative average propensity of other countries to file in those three offices. Why use trademarks as indicators of innovation? A trademark is a sign used to distinguish the goods and services of one undertaking from those of other undertakings. Firms use trademarks to signal novelty and to appropriate the benefits of their innovations when they launch new products on the market. The number of trademark applications is highly correlated with other innovation indicators.With their very broad perimeter of applications, they convey information on product innovations but also on marketing and services innovations.
- A key observation from the OECD’s 2010 Innovation Strategy was that a large fraction of firms that innovate do not invest in R&D.
- When we say KBC, what are we talking about ?
- This is what business’ are increasingly investing in, this is the realm where innovation is increasingly occurring.
- Workers contributing to R&D, design, software and database activities and to firms’ organisational knowhow account for between 13% and 28% of total employment in many OECD economies (total length of the bar). Of these workers, between 30% and 54% contribute to more than one type of KBC asset (bar “overlapping assets”).
- Dark blue bar is sciences. The next bar up, the light-blue bar, refers to engineering, manufacturing and construction. Spain is at the upper end of the distribution.
- Studies suggest that R&D performed by the business sector is particularly important in driving productivity growth (but that private-sector R&D is often linked in complex ways to public sector R&D). So getting researchers into business is important. And here we see Spain having one of the lowest incidences of doctorate-holder employment in business. Compare with Korea at the far left, which doesn’t actually graduate a higher share of youth at doctorate level than Spain.
- Entrepreneurship is a carrier of innovation and structural economic change. Human capital is critical to survival of new firms: More important than access to finance.