DSI Interim Report Executive Summary i Emerging Findings ii Introduction 5 What is DSI? 5
Gohar Sargsyan Adviser and founding member, OISPG; Consultant Logica Daniel Kaplan Founder and CEO, The next-Generation Internet Foundation
Simona Levi Founder, Forum for the Access to Culture and Knowledge Markkula Markku Committee of the Regions, Rapporteur Europe 2020
experts, practitioners or key policy makers were identified also, and interviewed. We conducted in depth semi-structured interviews following a common protocol,
-neurs/practice leads, their employees, and relevant DSI communities. The appendix shows the case studies and their classification criteria,
or for their workers to find affordable homes Running or hosting Makerspaces, Hackerspaces, Living Labs or Urban Labs:
and transparency by supporting journalists and other experts to access information and report key stories
and number of employees. New clustering and categories will then emerge from the empirical data
manner rather than via a top-down hierarchy controlled by experts or some other appointed group. In the
A commission of independent experts involving both grassroots activists and government employees gathered from across the city,
This commission of experts should not simply solidify their position as experts in creating websites
so that the public service workers in London can maintain their own website with -out again gathering all the experts from the various boroughs or from a neighbouring city.
The point is to spread the network so as to make local communities as digitally skilled as possible and capable of working
-ducted using interviews with experts, which identify the main failures and shortcomings. These shortcom -ings will be matched with the design methodology
board and who hire the founders as consultants What were the main barriers to innovate?
-isation is run by a small, highly-skilled online team of 11-50 employees with most staff working collaboratively in a â€oevirtual office†environment
of domain experts. Generic coding skills lead to beautiful visualisations not more What helps to reach goals and
-main experts. This pays off in the end How does it achieve better European collaboration? Citysdk sets the groundwork for an ecology of applications that can
guarantee basic standards to their employees. On November 13 2013 Fairphone announced that it had sold the first batch of 25,000 smart
wage for workers assembling the devices Research: As described above a cornerstone of the Fairphone model is
-es are distributed amongst workers.  It†s all about opening up the supply chain, creating transparency
out of its 227 employees there are virtually no managers, and staff are given a great degree of autonomy in
contingent upon employees investing themselves in the projects they commit themselves to History and Mission Github sets out with a seemingly simple objective:
Another revenue stream is Github Jobs where employers can post job offers for $450/listing.
-rative tool for academics, legislators and government workers. Â Since any open-licensed project can be hosted on Github for free,
-ton, D c. startup (Development Seed) and a small team of consultants Whereas the code for the healthcare exchange †the â€oebackend†of Health
private businesses and corporations who want to engage their employees in making strategic decisions At its simplest the process of using Liquid Feedback can be described
or meet the experts of the City of Vienna, as well as an online forum. In 2012 two participa
â€oeschwedenplatz†(where citizens came together with experts as part of a design competition organised by the City of Vienna to draft a mission
-form, and active comments have been asked for from countless experts and copyright organisations. A number of factors surrounding copyright
Having been reviewed by these volunteer experts, the Open Ministry†s law proposals are more compatible
into actual law proposals with the help of volunteer experts. There has been some significant overlap between Open Ministry and other rele
of relevant experts who can offer consultative campaign and legal advice to transform potentially good ideas into viable proposals to be debated
-ship with voluntary legal and campaign experts. The Open Ministry also encourages users to sign
all employees of Peerby own a piece of the company through stock op -tions and through these have a direct stake in its successes and failures
Later on Ray Ozzie a data expert based in Boston joined the conversa -tion when the question of how to release
DSI Interim Report Executive Summary i Emerging Findings ii Introduction 5 What is DSI? 5
Gohar Sargsyan Adviser and founding member, OISPG; Consultant Logica Daniel Kaplan Founder and CEO, The next-Generation Internet Foundation
Simona Levi Founder, Forum for the Access to Culture and Knowledge Markkula Markku Committee of the Regions, Rapporteur Europe 2020
experts, practitioners or key policy makers were identified also, and interviewed. We conducted in depth semi-structured interviews following a common protocol,
-neurs/practice leads, their employees, and relevant DSI communities. The appendix shows the case studies and their classification criteria,
or for their workers to find affordable homes Running or hosting Makerspaces, Hackerspaces, Living Labs or Urban Labs:
and transparency by supporting journalists and other experts to access information and report key stories
and number of employees. New clustering and categories will then emerge from the empirical data
manner rather than via a top-down hierarchy controlled by experts or some other appointed group. In the
A commission of independent experts involving both grassroots activists and government employees gathered from across the city,
This commission of experts should not simply solidify their position as experts in creating websites
so that the public service workers in London can maintain their own website with -out again gathering all the experts from the various boroughs or from a neighbouring city.
The point is to spread the network so as to make local communities as digitally skilled as possible and capable of working
-ducted using interviews with experts, which identify the main failures and shortcomings. These shortcom -ings will be matched with the design methodology
board and who hire the founders as consultants What were the main barriers to innovate?
-isation is run by a small, highly-skilled online team of 11-50 employees with most staff working collaboratively in a â€oevirtual office†environment
of domain experts. Generic coding skills lead to beautiful visualisations not more What helps to reach goals and
-main experts. This pays off in the end How does it achieve better European collaboration? Citysdk sets the groundwork for an ecology of applications that can
guarantee basic standards to their employees. On November 13 2013 Fairphone announced that it had sold the first batch of 25,000 smart
wage for workers assembling the devices Research: As described above a cornerstone of the Fairphone model is
-es are distributed amongst workers.  It†s all about opening up the supply chain, creating transparency
out of its 227 employees there are virtually no managers, and staff are given a great degree of autonomy in
contingent upon employees investing themselves in the projects they commit themselves to History and Mission Github sets out with a seemingly simple objective:
Another revenue stream is Github Jobs where employers can post job offers for $450/listing.
-rative tool for academics, legislators and government workers. Â Since any open-licensed project can be hosted on Github for free,
-ton, D c. startup (Development Seed) and a small team of consultants Whereas the code for the healthcare exchange †the â€oebackend†of Health
private businesses and corporations who want to engage their employees in making strategic decisions At its simplest the process of using Liquid Feedback can be described
or meet the experts of the City of Vienna, as well as an online forum. In 2012 two participa
â€oeschwedenplatz†(where citizens came together with experts as part of a design competition organised by the City of Vienna to draft a mission
-form, and active comments have been asked for from countless experts and copyright organisations. A number of factors surrounding copyright
Having been reviewed by these volunteer experts, the Open Ministry†s law proposals are more compatible
into actual law proposals with the help of volunteer experts. There has been some significant overlap between Open Ministry and other rele
of relevant experts who can offer consultative campaign and legal advice to transform potentially good ideas into viable proposals to be debated
-ship with voluntary legal and campaign experts. The Open Ministry also encourages users to sign
all employees of Peerby own a piece of the company through stock op -tions and through these have a direct stake in its successes and failures
Later on Ray Ozzie a data expert based in Boston joined the conversa -tion when the question of how to release
1. Executive Summary 4 2. The origins of Smartgrids 6 3. Driving factors in the move towards Smartgrids 12
1. Executive Summary 5 VISION AND STRATEGY I ELECTRICITY NETWORKS OF THE FUTURE application for the benefit of both customers and utilities.
Job opportunities will be broadened as the networks require workers with new skills and integration across new technology areas
initiative and recruited more than 100 employees www. shields-e. com Good practice examples The Footprint Chroniclesâ
¢ers, design engineers, consultants or can be completed by other technical or business functions as part of other responsibilities
¢cepts and involve stakeholders/experts. Re -ward buy in when eco-innovative ideas are implemented Choose whether to pursue patents to protect â€
senior management www. orangebox. com www. ecodesigncentrewales. org/sites/default/files /EDC ORANGEBOX ENABLINGECODESIGNINWELSHIN -dustry. pdf Crawford Hansford & Kimber
¢consultants or companies that posses this expertise do need you to train yourself (or partners) in â€
and technology specialists, innovation experts and eco-innovative cluster organisations. Among many support schemes it has one that helps SMES with
In the second half of 2012, discussions started within the Expert Group on E -Commerce9 about the modalities of the pilot project.
A workshop with ADR experts took place in Brussels on 28 February 2012. The Commission services also met bilaterally with stakeholders
They need specialised employees who can build, maintain and further develop their online business and,
and for business to have qualified employees Recommendation 15: Consumers and the commerce sector are need in of e-skills to shop
â We ran a survey of 100 senior executives on the commercial challenges of harnessing ICT to deliver
executives on the commercial challenges of harnessing ICT to deliver increased productivity and growth. The survey participants include a mix
â ICT in the public sector. The executives we interviewed and surveyed believe the best thing
Europe is skilled not short of technical workers Schools and universities produce a steady flow of graduates trained in software programming, network
of ICT knowledge in senior management and the failure of IT and business management to work
Lack of ICT knowledge in senior management 38 Business and IT executives not working together effectively 34
Inadequate integration between different technologies in the business 30 Cost constraints 29 Inability to manage
Employee resistance to change 22 Other 3 Â The Economist Intelligence Unit 2004 17 Reaping the benefits of ICT
Policies to promote labour mobility 9 Policies to attract ICT skilled immigrants 10 Other 1 Which of the following government initiatives are most important to promote
The issue of labour market regulation is more contentious. Many economists argue that Europe†s labour market regulations are too restrictive and that
they deter companies from reorganising the workplace Policymakers and economists diverge, however, on the link between labour regulations and productivity
employees, suppliers and customers) the confidence to use them. Elie Simon, president EMEA of Sun
the executives we surveyed. Common standards remove much of the risk associated with investing in
are viewed by a majority of the executives we surveyed as â€oeimportant†or â€oeextremely important†to enabling
policymakers (as well as executives judging from our survey) do not see labour market reform as a priority
Certainly they will have enough to busy themselves with while this particular debate is resolved Five imperatives for policymakers
initiatives to improve managerial and employee skills in ICT use. This is particularly relevant to staff in SMES
incumbent on executives to ensure, through training and other mechanisms, that their managers are fully aware of the potential benefits of an ICT investment
and other mechanisms to promote employee involvement in decision-making; greater information -sharing; a more imaginative use of monetary
workplace productivity lies with the executives and staff of European organisations, public and private sector alike.
Lack of ICT knowledge in senior management 38 Business and IT executives not working together effectively 34
Inadequate integration between different technologies in the business 30 Cost constraints 29 Inability to manage
Employee resistance to change 22 Other 3 What are the main external barriers to maximising the benefits of ICT
Policies to promote labour mobility 9 Policies to redress under-representation of women in ICT jobs 2
Communication and collaboration between employees 48 Customer relationship management 33 Integration of existing data/technologies 33
Communication and collaboration between employees 32 Supply chain integration 31 Integration of existing data/technologies 29
Senior management is briefed regularly on emerging disruptive technologies 20 How do you measure the benefits of ICT in your organisation
BEPA Bureau of European Policy Advisers EGDI e-government development index (United nations ESPAS European Strategy and Policy Analysis System
and transformations in the world of work and the labour market. Overall findings from all reports may be found in the Synthesis Report published by RAND Europe, while
of semi-structured interviews with experts from academia and think tanks, policymakers and leading thinkers from the private or voluntary sector further exploring the findings from the Delphi exercise and
In 2012, the Bureau of European Policy Advisers (BEPA) commissioned RAND Europe to investigate further the theme of societal changes by drawing from the experience of the pilot project, by analysing key
The second phase of the research (expert consultation) harnessed the knowledge of leading experts worldwide for each of the themes studied through an approach based on the Delphi method.
Information from the expert consultation phase was used to discuss and to uncover further the surrounding uncertainty for each of the
Schummer 2010). 1 Experts consulted in the Delphi 1 Castells (2011) defines the network society as †an informational society with networks serving as the basic structure
with better labour market prospects for graduates, some of the literature has forecast a potential effect to
-oriented) skills could result in a loss of intellectual diversity in the labour market (Cave et al. 2009;
polarisation of labour market outcomes Low Social innovation, enabled by ICTS among other factors, will continue to
demand on labour market for certain skills ++Medium term Need to make educational systems responsive to these developments
and G. Moreno,"Patterns of labour market integration in Europe-a life course perspective on time policies,"Socioeconomic Review, Vol. 2, No. 2, 2007, pp. 233-260
"Second career labour markets. Assessing challenges †advancing policies "from http://www. bertelsmann-stiftung. de/cps/rde/xbcr/SID-D9524723
and A. Kicinger,"Population and labour force projections for 27 European countries, 2002-052: impact of international migration on population
Bureau of European Policy Advisers, Empowering people, driving change: Social innovation in the European Union, European commission, Buerau of European Policy Advisors, 2010
Labour force by qualifications (in 000s), EU27+,"European Centre for the Development of Vocational training (Cedefop) website, 2012b.
crises",International Journal of Manpower,(2012), Vol. 33 (1): 76-95 Christensen, Henrik Serup,"Political activities on the Internet:
disadvantaged groups in thirty European countries, Expert Group on Gender, Social Inclusion and Employment report, Luxembourg:
The Mismatched Worker. New york: W. W. Norton & Company Keck, Margaret E, . and Kathryn Sikkink.
men and women participating in the labour force RAND Report, RR-348-EC, Cambridge: UK. Report prepared for Justice DG, European
European commission by the NESSE network of experts, 2008 As of 21 august 2014 http://www. nesse. fr/nesse/activities/reports/activities/reports/education-and-migration-pdf
Report to the Northern ireland Housing Executive, November 2010. As of June 2013 54 http://www. nihe. gov. uk/analysis of the future need and demand for appropriate models of acco
A Comparison of Older and Younger Workers. †American Journal of Industrial Medicine 47: 104†112,2005
healthcare workers to exchange ideas and provide medical solutions to various problems Mbarika, 2004. Healthnet uses low earth orbit satellites and phonelines to provide email
Users mainly physicians and medical workers connect to the network through Enhancing healthcare delivery through ICTS 147
•Levels of motivation of health workers which is associated with level of facilitation remuneration, workload, provision of quality training which includes number of trainers
availability of equipment, promotional activities and number of skilled health workers and proper management •Effectiveness of monitoring of immunisation activities which involves the following
motivation of health workers Figure 2: Causal Loop Diagram for Healthcare System Two balancing loops B1 and B2 where a balancing loop is a negative feedback system that is
An increase in demand results in increased workload which reduces health worker motivation resulting in reduced level of service
and reporting as well as well-motivated health workers Insights from the causal loop diagram In order to reduce the disease burden, eventually to the point of eradication,
2. Health worker motivation. The provision of immunization services requires highly motivated health workers who are trained well,
remunerated, facilitated and with acceptable workload 3. Effective monitoring of immunization activities by carrying out regular supervisions of
practices, transport, management of human resource (health workers) and vaccine wastage •Monitoring and reporting of immunisation activities which involves carrying out reviews
delivery of vaccines to avoid stock outs, training of community workers. The majority of health
facilities (5) stated that they needed to increase the number of health workers as well as training.
the health workers. The tally sheets are forwarded to the health district level for entry into a
Health workers will use the PDA to access immunization information (diseases, vaccines, side effects, immunization schedule, stock management) from the immunization content management system.
children, health workers as well as preparing requisitions and facilitate distributions of vaccines to the various health sub districts and health units.
administration, storage, side effects through online accessibility to the medical workers as well as the public improving their attitude towards immunization
for operational level health workers. UNEPI/TRA Borooah, V. K.,(2003. Gender bias among children in India in their diet and immunization
from papers prepared for the OECD by a number of experts, in particular: David Audretsch, Bart Clarysse
factors, many experts predicted the demise of SME competitiveness as globalisation increased. While many SMES have succumbed indeed to a deterioration of competitiveness,
and inter-country labour mobility. But in order to answer how these 1. During the last five years, SMES were responsible for more than 80%of the jobs created (European SME co
During the 1980s, one in about 25 workers lost a job, and in the 1990s the figured has risen to one in 20 workers
9. Much of the policy debate about globalisation has revolved around a trade-off between maintaining higher wages at the cost of higher unemployment versus favoring higher levels of employment
yet the number of workers who can contribute to producing and commercialising new knowledge is limited to a few areas in the world.
Furthermore, demand for less skilled workers has decreased dramatically throughout the OECD, while demand for skilled workers has exploded. 6
11. Given the shift in comparative advantage towards more knowledge based economic activity many scholars have predicted the demise of SMES.
employee than do large firms. Audretsch (1995) identifies SMES as contributing 2. 38 times more
innovations per employee than do large firms. Other studies identifying different types of output measures
consultants, and (2) R&d boutiques. As shown in table 1, the technology developing companies tend to be
new economic knowledge include a high degree of human capital, a skilled labour force, and the strong
and other knowledge workers †as agents endowed with new economic knowledge 34. When the focus shifts from the firm to the individual as the relevant unit of observation, the
a knowledge worker may choose to exit the firm or university where the knowledge was created initially.
and in a worker. The firm is created endogenously through the worker†s effort to appropriate the value of his knowledge through innovative activity
consultant Tom Peters claims that, "Old ideas about economies of scale are being challenged. Scale itself is being redefined.
An executive of a company that makes laboratory equipment explained that the typical Mittelstand strategy,
%while five-year employee growth was 9. 8 %44. One of the keys to the success of the German Mittelstand has been their strong commitment to
Indeed, non-marketing employees in the German Mittelstand engage in direct contact with customers at twice the frequency as in the largest
and financial employees in order to make sure innovative activities truly meet customer needs WK1 15 The Network and Flexible Production Strategies
which employees perform a wide variety of different tasks 15 Porter (1990) provides examples of Italian ceramics and gold jewelry as industries in
new economic knowledge embodied in skilled workers tends to raise the propensity for innovative activity to spatially cluster throughout all phases of the industry life cycle.
which are made easier by the mobility of workers and technicians, the activity of technical consultants,
and commercial activity of capital equipment suppliers interaction with equipment manufacturers, which is repeated intense and socially embedded,
employees Technology Developers 1-3%of the SME population(>5 employees Non-Innovative SMES about 40-45%of the SME
population(>5 employees Potential Innovators about 40%of the SME population(>5 employees I III IV
II Source: Clarysse and Duchã ne, 2000 70. Both technology developers and technology users who have a sufficient R&d capacity are able to
successfully apply for R&d-grants or subsidies under the traditional technology policy structures. A recent
technology programmes, technical consultants are permitted frequently not to participate as contractors, so this category of SME is excluded often national R&d grant programmes, further limiting the number of
Firm size (employees) 47 43 73 R&d budget as%of turnover 21,7%32,1%10,9 %Growth during 1996-1999
in terms of employees 89%46%17,9 %R&d grants, as%of R&d budget19 11%27,6%16,8 %Source:
These organisations are typically technical consultants and count R&d as a â€oenon-core†activity Looking at firm growth rates during the three-year period preceding the study,
educated labour force. Public agencies have strong incentives to adapt their strategies to meet the needs of
engineers (or have a network of technical experts) who are trained to perform technological due diligence.
<250 employees and independent 25 Including CRAFT-projects (14,5%without CRAFT-projects 26 In respect of Belgian (Flemish) definition of the SME:
less than 200 employees 27 SME according to the Anvar-classification: less than 50 employees 28 Only related to equity financing organised by the main R&d granting institute
WK1 26 budget in the following years. R&d grants seem to have substantial additivity to the size of the R&d
A typical such SME might have three employees out of thirty who spend part of their time on R&d activities,
Technical experts in public research bodies or institutions are not of much assistance as their speciality is
world of technical experts and that of entrepreneurs is so large, there need to be mechanisms in place
In some countries such as the US, technical and business consultants are important carriers of innovation to SMES but their role in Europe remains limited so far
We used the number of employees to account for the effect of differences in the size of the firm.
team consisted of the following experts: Prof. Jaime del Castillo, University of the Basque Country
Human capital and the labour market, by Karen Chapple and Sergio Montero -Muã oz ï Chapter III:
Human capital and the labour market...6 Contribution of research organisations...7 Entrepreneurship...9 SME development...
HUMAN CAPITAL AND THE LABOUR MARKET...32 Introduction...32 Policy issues...32 Assessment of the region...
Human capital and labour market...128 Contribution of research organisations...128 Entrepreneurship and start-ups...130 SME development...
The study was carried out by an international review panel consisting of 6 international experts and 2 members of the Secretariat of the OECD LEED Programme.
i) the impact of human capital and the labour market on entrepreneurship and SME development; ii
Human capital and the labour market The Andalusia labour market is affected by structural weaknesses High levels of unemployment, large numbers of temporary workers and low productivity
undermine the performance of Andalusia†s labour market. Although the overreliance of the region on the construction industry and the subsequent housing bubble has contributed clearly to these problems
even the sectors that employ highly educated workers are affected by structural problems Regional human capital needs to be upgraded
Despite the recent catch up effect driven by higher levels of business activity (e g. in the agriculture, construction and tourism sectors) and increasing levels of GDP per capita (now 80%of the
pertinent for innovation, develop the pipeline of highly skilled workers that help transmit knowledge in regional clusters.
researchers, skilled workers, etc. and investment (national and foreign Entrepreneurship Entrepreneurial culture is improving in the region
the natural route to the labour market, the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other forms of entrepreneurship.
employees. This places it well below both the Spanish and the EU averages. Of even greater
-sized firms between 50 and 500 employees demonstrates an underlying structural problem in growing local enterprises to a level that can contribute more significantly to employment creation and regional
Human capital and labour market ï Link training programmes more effectively with sectors in order to improve firm productivity and
ï Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors
accounting also for large numbers of self-employed workers in the construction and tourism industries In part it also suggests a degree of buoyancy in the construction sector
problem in the labour market. Temporary, low skilled jobs cannot find shelter in the storms of
Human Capital and the Labour market It is recognised now well that the set of technical, cognitive, facilitative and operational skills
labour market and more generally in the development of an economy. This fact has acquired a particular poignancy in recent times in our so-called knowledge economy where †brain power†and the
dependent on the skills levels of its employees and its owner-managers. A combination of the two
i) human capital and labour market issues affecting entrepreneurship and SME development ii) the contribution of research organisations to entrepreneurship and SME development;
The OECD Secretariat led an international panel of experts in a one-week peer review visit in
i) human capital and the labour market; ii) contribution of research organisations; iii entrepreneurship and new start ups;
Secondary education as%of labour force (2008) 20.7 16.8 Tertiary education as%of labour force (2008) 29.8 24.9 High-tech manufacturing as a%of employment (2008) 4. 8 2
Knowledge-intensive services as%of employment (2008) 28.9 26.9 Active population (thousands)( 2008) 31 143 5 562
Labour market participation rate (2008) 73.4 68.9 Employment rate (2008) 65.1 56.6 Unemployment rate (2008) 11.3 17.8
mainly low-skilled workers. This has come to reinforce labour intensive sectors such as tourism construction, and partly agriculture.
influx of low-skilled migrant workers, but also a consequence of the growth of low added-value
since 2008 the labour market situation has deteriorated strongly, with unemployment rising from 11%to 27.2%in early 2010(+16.2%)compared to+12.7%for Spain as a
The rapid soaring of unemployment has been the result of the industrial and labour market structures of the region.
Micro firms (less than 10 employees) dominate the economy, representing over 90%of the total. This
workers employed The R&d system Andalusia underperforms Spain as whole in most R&d-related indicators.
for employees were also relatively common, involving between 15%-25%of the surveyed enterprises Between 5%-15%of the firms contracted R&d projects, use university facilities or exchanged staff
HUMAN CAPITAL AND THE LABOUR MARKET Introduction Human capital development and labour market dynamics play a key role in a knowledge-based
global economy. Yet, one of the greatest challenges in regional economic development is developing a coherent set of policies and programmes that link a region†s complex educational and training
particular focus on the labour market characteristics of successful regional innovation systems. It then outlines the complex landscape of education and training,
A rich literature debates the role of human capital formation and labour market dynamics in fostering entrepreneurship and innovation.
debates about human capital generally, then turning to the debates about labour market preparation for entrepreneurship.
Higher levels of human capital create returns not only in terms of worker productivity but also of higher wages (Becker, 1965.
altered the labour market (Aoyama & Castells, 2002. In this new informational mode of development †the source of productivity lies in the technology of knowledge generation, information processing
expertise, resulting in rising demand for college-educated workers relative to their supply (Katz &
bid up for those workers who possess high levels of human capital while, due to falling demand
wages fall or stagnate for less educated workers. Yet, institutions also play a role: national policies
The technical qualifications of employees among other factors) even affect a company†s attitude toward innovation (Coronado, Acosta, &
Human capital that combines education and experience gives employees the adaptiveness so key to entrepreneurship (Wright, Hmieleski, Siegel and Ensley, 2007.
To wrap up, the four labour market-related factors most critical to entrepreneurship appear to be 1) higher education;
The Spanish labour market differs somewhat from that of most European countries. Immigration to Spain from Latin american and EU15 countries has increased rapidly in the last decade.
significant opposition to loosening immigration laws for workers, particularly among less-skilled Spaniards (Martã nez i Coma and Duval-Hernã¡
Historically, Spanish labour market regulation has been notoriously rigid; the high costs of terminating employees are in part responsible for a shift towards temporary hiring contracts,
which are easier to end. As of June 2010, major labour market reform became provisionally effective; this will
reduce the cost of permanent contracts and increase that of temporary contracts. Employers will also
have more flexibility in reducing working hours (and salary) of employees. These reforms may force
Spanish labour market regulation to begin to converge with that of its northern European neighbours Although labour and immigration policies and programs come under the purview of the national
government, regions can still take action to attract immigrants by fostering a positive climate. For
Local labour market conditions The Andalusian labour market contains several structural weaknesses that distinguish it from the
rest of the Spanish economy, namely: the high level of unemployment, large reliance on temporary
workers, and low productivity. Although the overreliance of the region on the construction industry †and the subsequent collapse of the housing bubble †clearly contributes to these factors, even the
sectors that employ highly educated workers are experiencing structural problems. Andalusia presents an example of †badly used human capitalâ€:
as the educational attainment of resident workers has increased, this is not employed appropriately enough to contribute significantly to economic growth
impermanence of much of the labour market: in 2007,45%of employed residents were in temporary jobs, 13.5%above the national average (Granados-Cabezas, 2010
In addition, the changing demographic structure in the region has affected labour market dynamics. The regional workforce is aging,
from a region from which uneducated workers out-migrate to one which attracts immigrant workers to
work in unskilled occupations. The immigrant population has increased from less than 1%of the total population in the early 1990s (mostly British and German retirees) to 8. 8%in 2009, mostly Latin
unemployed and employed workers (Formacã on Profesional por el Empleo †FPL), entrepreneurship education (partly),
and integration of immigrant workers Figure 8. Regional Agencies involved in human capital development Source: Personal elaboration based on the competencies of the three regional ministries as listed in www. juntadeandalucia. es
either dislocated or incumbent workers. Initially conceived as an employment policy, it is now managed by the Regional Ministry of Employment in coordination with the Ministry of
Unions also collaborate in the training of workers with the Ministry of Employment 6 Recently, the government has created a new institution to regulate vocational training in the
an initiative of the Regional Ministry of Employment to train more than 1 000 students, workers and
redundant workers of the aeronautic sector 7 Spanish Minister of Education discourse in the Congress on February 2010, available at
the university offerings focus mostly on connecting high-tech workers and start-ups to entrepreneurship skills, a variety of other programs help traditional businesses and low-skilled workers
gain the capabilities they need to innovate more effectively. Below is a description of what some main
innovation, develop the pipeline of highly skilled workers that help transmit knowledge in regional clusters. This schism manifests itself in three ways:
While hiring Phd-level workers might be key for highly innovative companies in IT or biotechnology sectors, the reality is that most SMES in Andalusia are highly dependent on
workers trained in energy efficient technologies. Bolstering the production chain of the cluster via training strategies will allow the expansion of the local market for these services and products †a
reflects and structures how regional actors think about labour markets, innovation, and training in the region. The regional innovation system separates itself from the general education and employment
development that tailors training to employer needs in specific industry sectors (Zandniapour and Conway, 2003;
which taught SME executives how to develop innovative ideas for their businesses Digital Cluster Program:
schools as well as a network of 250 consultants. The main IT solutions offered were antivirus (to 29%of clients
In the area of human capital and the labour market, the most important contribution RETA can
restructuring employment practices in a way beneficial to both employers and low-skilled workers Marano and Tarr, 2004.
Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors.
Andalusia can capture the benefits for its distressed labour market. During economic crisis, it is particularly important to stimulate business to create more jobs.
disadvantaged people access employment opportunities, while economic development programmes must help businesses become more competitive and expand, often through productivity increases that
will require high-skilled workers. Training workers can take months or years, while firms need quick
and flexible access to labour to compete in the global market Despite these issues, regions are seeking to link workforce development to economic
wages and advancement potential for workers, but also try to change internal labor market practices such as management and mentoring in order to make workers more productive (Giloth 2000
Because they focus on a single sector, these types of programs offer economies of scale and scope They organize groups of firms that require similar worker skill sets,
obtaining economies of scale by working across a variety of different firms in one industry. Additional synergies come from bringing
employers together to share concerns and best practices, as well as help design appropriate curricula When employers are involved directly in programs,
curricula focus on the most appropriate skills trainees become more familiar with workplace practices, and the intermediary may act as an
employment broker, introducing workers to prospective employers. An impressive set of evaluations has shown that these initiatives have significant and positive impacts on the employability, wages, and
particular, research spin-offs and industry-university knowledge transfer (labour mobility, research collaborations, technology transfer agencies, university technology licensing programs, etc.
as well as to the †thickness†of the local labour market (Gertler and Vinodrai, 2005 ï Second,
The DUI mode of innovation builds upon the skills and knowledge of employees throughout the firm, not just its research department.
had few employees with higher education degrees and few of them had R&d departments. Among the remaining 305 firms that
Use or renting of facilities 8. 1 Training of firm workers by the Universities 15.2 Other types of collaborative
employees. At the same time, Canada has relatively fewer large R&d performers than most other OECD countries and the total share of business expenditures on R&d from firms with more than 250
employees is significantly lower than the OECD average. As a corollary, the relative contribution of
student body) and 3 000 employers, 281 of them local, involved in the program each year.
that spun-off from the original WATCOM Corporation, with over 250 employees in its Waterloo
campus alone, 15 per cent of its current employees are Waterloo co-op students, and more than half of
9. Improve the adaptability of workers and enterprises, and the flexibility of labour markets 10. Invest more in human capital through better education and skills
The recent global crisis has however called for another major rethink of the Lisbon Strategy. The
which require employees to have completed a year of full employment before qualify. Many under-25s are unable to demonstrate 12 months†worth of
traditionally seen the public sector as the natural route to the labour market, the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other
Moreover, the focus on entrepreneurship should not be restricted to future labour market entrants The region could promote the establishment of dedicated (re) training programmes for existing
already in the labour market with the latest business concepts, tools and techniques. Dedicated re) training programmes could be established using existing institutions, such as university faculties
or regional employment office in order to ensure that the social security system is aligned with the new regional priorities designed to facilitate a higher
the German government prioritised active labour market policies, including vocational educational training, employment subsidies, job creation schemes and self employment
Business experts must examine the start-up concept and determine its viability. Such experts could include the Chambers of Industry and Commerce, Chambers of Crafts, Professional
Organisations, Expert Associations such as Business Development Service Providers and Financial Institutions. The new entrepreneurs also need to be given support both before the start-up phase
entrepreneurship training, business plan, etc. as well as after initiation of activities (coaching mentoring, consultancy, etc Relevance to Andalusia and considerations for adoption
employees (see table below. This places it well below both the Spanish and the EU averages (Romero
between 50 and 500 employees, demonstrates an underlying structural problem As policymakers within the region recognise, an imbalanced economic base and firm structure
Self employed (no employees) 51.57 0. 38 1-9 employees 43.48-4. 3 Small firms (10-49) 4. 31-13.95
Medium sized firms (50-499) 0. 55-11.68 Large enterprises(+500) 0. 08-37.46 Total 100.00-2. 44
-launching this professional profile may want to widen the circle of advisers to include those with more
forms of traditional skill and knowledge of products embodied in the workers and owners of SMES
employees but around 25 000 indirect jobs in supporting and dependent industries (e g. auction and
Maskell, 1998): 80 percent of workers are in trade unions while members of employer associations account for 55 percent of private sector employees (Anderson and Mailand, 2005.
High levels of knowledge exchange between SMES are underpinned by close-knit business communities in each sector. Denmark is characterised by a plethora of networks and strong industry associations
between the social partners, the Danish labour market model †often referred to as †Flexicurity††also
Additionally, new firms tend to be established by skilled workers already with a background of working within particular industries, rather than those with professional managerial experience or
although its †flexicurity†labour market model †whereby employers are given flexibility over the hiring and firing of labour
while employees are given generous social protection and rights to retraining †has been attributed as a major factor in the resilience of Danish SMES through past crises
have produced generations of well-trained graduates to service the life sciences labour market: indeed Scotland produces a proportionately larger number of graduates from its universities than other parts
i) human capital and labour market; ii) research organisations; iii) entrepreneurship and start-ups; iv) SME development.
Human capital and labour market Three key issues have emerged in the area of human capital and labour market:
i) today†s knowledge-based economy put a premium on education; as a result, the regional government should
area, but again the effects of the crisis might change the scenario and prompt more redundant workers
and employees to set up their own businesses. Here, the regional government could work closely with
enterprises (less than 10 employees) accounted for 95, %and small firms (10-50 employees) for 4. 3
%of the whole enterprise population, thus making up altogether over 99%of the total. The paucity of
medium-sized firms (50-250 employees) points to an excessive business fragmentation that undermines the competitiveness of the region.
benefit from skilled workers trained in energy efficient technologies. Identifying and implementing programmes across the production value chains should help identify opportunities for new products
Human capital and labour market ï Link training programmes more effectively with sectors in order to improve firm productivity and
ï Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors
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