Conference

1

• Conference
• on
• Mission, Money, Management -
• International Conference on Higher Education
• Beijing
• 9-11 May 2005
• The Knowledge Economy and the Role of Higher
  Education
• by Berglind Ásgeirsdóttir, OECD Deputy
  Secretary-General

2
First Conclusion Good economic fundamentals
are important for stimulating the knowledge
economy

• Good economic fundamentals such as
• Stable macro-economic labour policies that allows
  long-term planning
• Well functioning labour, product and capital
  markets
• Efficient training policies that help ensure that
  the low-educated are equipped with the right
  skills, thus avoiding knowledge divide
• Competition policies, which drives down the costs
  of technologies
• Liberalisation of telecommunication policies
• Openness of trade and foreign direct investments
  to let in new ideas.
• are important for stimulating the knowledge
  economy

3
Second Conclusion The development of the
knowledge economy is dependent on four main
pillars innovation, new technologies, human
capital and enterprise dynamics
Knowledge Economy
Highly-skilled
Globalisation
RD
Internet
MNEs
New Technologies
Enterprise Dynamics
Human Capital
Innovation
Economic Fundamentals
4
First pillar InnovationRD by industry
Business RD expenditure as a share of GDP by
industry sector, LYA
Note high-tech manufacturing pharmaceuticals
office machinery computers radio, TV
communication equipment instruments and air-
and spacecraft Source OECD ANBERD and MSTI
Database
5
Second pillar new technologiesICT capital to
GDP growth (in percentage points)The US and
small EU countries have had a large impact of ICT
investment, France, Germany and Italy a small
one(contribution to GDP growth, in percentage
points)
Source OECD Productivity Database, May 2004.
6
Third Pillar Human Capital Percentage of upper
secondary graduates to the population at the
typical age of graduation (2002)
Source OECD, Education at Glance 2004
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Third conclusion Globalisation is a pervasive
factor that affects all four pillars of the
knowledge economyRD share of foreign
affiliates/total Business and RD
Source OECD, STI Outlook, 2004 based on Carrodo
et al, 2003.
8
Fourth Conclusion Upgrading education and
learning for the knowledge economy is essential

• Educated and skilled human resources key to
  success in the knowledge economy
• China is improving quickly but still has a high
  illiteracy rate (25 women, 9 men 1998), and
  quite low enrolment rate at 11 relative to the
  18-22 year old cohort in 2000, whereas at 17 in
  2005
• Higher education contributes to the knowledge
  society and economy
• Social capital in the form of networking and
  trust can help realise innovative environments
• Increasingly countries will have to think about
  how education promotes effective participation in
  communities of knowledge and this will include
  social competences as well as technical ones.