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MUGLA UNIVERSITY
KNOWLEDGE ECONOMY AND HIGHER EDUCATION Sener
Oktik Rector MUGLA UNIVERSITY 480000 MUGLA
TURKEY oktik_at_mu.edu.tr
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MUGLA UNIVERSITY
the 1995 Green Paper on Innovation This
process culminated in the strategic goal set by
the Lisbon European Council in March 2000, that
Innovation is at the heart of the EU economic
policy objectives.
the European Union (EU) should become the most
competitive and dynamic knowledge-based economy
in the world, capable of sustaining economic
growth with more and better jobs and greater
social cohesion by the year 2010
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Knowledge Economy There is no commonly
accepted definition!! Generally four essential
and correlated points for knowledge economy
are given 1- knowledge is becoming increasinly
important input of all processes. 2- the trade
volumes of knowledge based products are
growing. 3- reliance on codified knowledge is
becoming a competitive base for organizations. 4-
knowledge economy is becoming highly dependent on
technological changes in ICT K. Smith, "What
is the 'Knowledge Economy'? Knowledge Intensity
and Distributed Knowedge Bases", Discussion Paper
Series, The United Nations University, 2002, p.8
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The Four Pillars of The Knowledge Economy
1-Education TrainingCreating a society of
skilled, flexible and creative people, with
opportunities for quality education and life-long
learning available to all, and a flexible and
appropriate mix of public and private funding
An educated and skilled population
to create, share and use knowledge.
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The Four Pillars of The Knowledge Economy
2-Information Infrastructure In order to foster
a variety of efficient and competitive
information and communications services together
with tools available to all sectors of society
a dynamic information infrastructure a
competitive and innovative information sector
of the economy, KEFV on Innovation and
Technology Absorption for Growth, Prague, Czech
Republic on March 28-30, 2006.
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The Four Pillars of The Knowledge Economy
2-Information Infrastructurecont.. "high-end"
information and communication technologies (ICTs)
the Internet and mobile telephony other
elements of an information-rich society
radio, television and other media, computers and
other devices for storing, processing and using
information, and a range of communication
services . KEFV on Innovation and Technology
Absorption for Growth, Prague, Czech Republic on
March 28-30, 2006.
A dynamic information infrastructure to
facilitate the effective communication,
dissemination and processing of
information. To create new knowledge.
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MUGLA UNIVERSITY
The Four Pillars of The Knowledge Economy
3-Economic Incentive Institutional Regime
Creating an appropriate economic incentive and
institutional regime that encourages the
widespread and efficient use of local and global
knowledge in all sectors of the economy, that
fosters entrepreneurship, and that permits and
supports the economic and social transformations
by the knowledge revolution. KEFV on Innovation
and Technology Absorption for Growth, Prague,
Czech Republic on March 28-30, 2006.
A regulatory and economic environment
for free flow of knowledge, to
support investment in ICT to encourage
entrepreneurship
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MUGLA UNIVERSITY
The Four Pillars of The Knowledge Economy
4-Innovation Systems Creating an efficient
innovation system comprising firms, science and
research centers, universities, think tanks and
other organizations that can tap into and
contribute to the growing stock of global
knowledge, adapt it to local needs, and use it to
create new products, services, and ways of doing
business. KEFV on Innovation and Technology
Absorption for Growth, Prague, Czech Republic on
March 28-30, 2006.
A network of research centers, universities,
think tanks, private enterprises and community
groups to tap into the
growing stock of global knowledge,
assimilate and adapt it to local needs
to create new knowledge
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MUGLA UNIVERSITY

• The terms
• Innovation and Knowledge Economy
• somewhat ambiguous !!!
• the definition proposed by the OECD,in its
  "Frascati Manual",
• Knowledge has always been the main contributor of
  innovation.
• The economics of innovation has focused on
• Learning,
• technology
• research.

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• Building Knowledge Economies
• the transformation of an ideas into
• marketable products or services,
• a new or improved manufacturing or
  distribution process,
• or a new method of social service

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MUGLA UNIVERSITY
Designing and implementing a coherent and
sustained response to these challenges, the
higher education in every activity ought to
aim global competition and global market,
Thus the entire higher education system are
facing totally new tasks to be able to be
competitive and successful in the changing world
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MUGLA UNIVERSITY
Universities need very simple law defining the
frame work! This would allow a good amount of
autonomy For the countries sucessful in
this The old academic disciplines are breaking
down, and new ones created, often around some
common major problems in the society or in the
industry. The overall environment of the HEIs
is becoming even more dynamic.
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MUGLA UNIVERSITY

• To be able to compete globally,
• the universities now need
• ,
• ,
• To built strong
• Scientist-to-Scientist Partnerships
• Scientist-to-Business Partnerships
• Entrepreneurship Training
• Infrastructure Support
• Institution Building
• grants and project services

more autonomy
Academically, financially and in administration
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MUGLA UNIVERSITY
In countries all over the world universities are
undergoing a process of restructuring, partly in
response to the new degree structure following
the Bologna process, but also to be able to meet
better the new external demands, e.g. concerning
multidisciplinarity in both teaching and
research. The new situation is also a serious
challenge for the leadership and management of
the universities, towards promoting a long-term
strategy, strengthening societal interactions,
especially with industry, enhancing technology
transfer, and promoting internationalisation,
etc.
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MUGLA UNIVERSITY

• However,
• Developing countries
• and countries in transition
• (the EU accession countries) suffer from
• limited resources,
• weak institutional capacity,
• centrally-controlled economic development.

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MUGLA UNIVERSITY

• If the opportunities created by
• the emergence of a global knowledge economy
• are not responded correctly and in time
• the gap likely to increase between countries
• putting new chalenges on the top of the priority
  list
• and
• ignoring the chalenges of the new brave world

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MUGLA UNIVERSITY
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MUGLA UNIVERSITY
A recipe for a knowledge based and innovation
driven economy? Higher Education RD
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MUGLA UNIVERSITY
Core Elements in the building of knowledge
based innovation society are Higher Education
Institutes (new requirements for their
strategies, functions and even structures) key
players in national innovation policies are
firms and companies .
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MUGLA UNIVERSITY
The focus must be increased on learning,
knowledge, research and development, together
with promoting cooperation between the
goverments, universities and industry. A
business climate that provides incentives for
entrepreneurship, risk-taking and investments is
critical Countries must embrace globalization,
develop capable and independent institutions and
promote local development. Sub-national regions
also need to develop and implement knowledge
economy strategies and institutions . Efforts
must go to practical implementation, not to
master plans.
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MUGLA UNIVERSITY
Getting together business needs and
scientific-technological knowledge generation
Bruno Broseta , PhD Technology Absorption
Inovation and Technology Absorption for Growth
Knowledge Economy Forum VPrague, March 28-30,
2006.
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MUGLA UNIVERSITY
Ireland has become in the last two decades one of
the most dynamic knowledge-basedeconomies in
Europe. Its GDP per capita has risen in 15
years from less than 60 of the EU average to
slightly better than the EU average in 2002,
overtaking its neighbor the United Kingdom. Its
real growth rate has averaged 6.5 over the past
decade, during which it created 4 times as many
net jobs as the UK. It has become a
high-technology powerhouse within Europe, and the
largest exporter of software in the
region. There is broad consensus that two
factors in particular fueled Irish growth
education and foreign direct investment, the
former being a precondition for the latter.
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MUGLA UNIVERSITY

• Beginning in the 60s and increasingly in the
  70s,
• successive Irish governments made a major
  commitment to
• expanding educational opportunities,
• by extending free secondary education to all
• by an increased effort to upgrade tertiary and
  technical education.
• The Irish placed particular emphasis on expanding
  and improving their network of Regional Technical
  Colleges,
• This sustained but well-targeted investment in
  education lay the groundwork for, foreign direct
  investment by technology companies,

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MUGLA UNIVERSITY
Building the Human Capital of the Knowledge
Economy It is well recognized that the
urgent need to reform their education systems and
enable life-long learning. But implementation of
these reforms is still uneven. Priorities
include Decentralizing initiative,
responsibility and accountability for education
at all levels, and creating opportunities and
incentives for private sector investment and
innovation in education Focusing government
intervention on key issues of quality, relevance,
impact, and access for all, rather than
micromanaging curricula, organizational design,
and administration of educational institutions
Flexibly integrating formal, vocational, adult
and distance education and training to provide
a greater range of opportunities for life-long
learning, and creating policy and
regulatory frameworks, including certification
schemes, that make lifelong learning
opportunities attractive and easy for individuals
to pursue.
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Model for Academic Excellence
p.11
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MUGLA UNIVERSITY
The innovation policy of Turkey is largely
coherent with the objectives set in the 2000
European Commission Communication on Innovation
The essential policy document focusing on
Turkish innovation policy (the Science and
Technology Policy of Turkey, 1997) covers
immediate arrangements and preparations for
establishment of the National Innovation System.
The main objective of the innovation policy is
to establish a national innovation system with
all elements as a network. On-going and
systematic monitoring and evaluation activity for
major Government funded innovation support
schemes started in 1999.
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MUGLA UNIVERSITY
As a part of this support schemes, the
Technological Development Zones (TDZ) Law was
enacted in 2000. The law, discussed in
Section-II, promotes the establishment of science
and technology parks under the guidance and lead
of universities. Since year 2000, twelve TDZ
have been established in four cities of Turkey,
becoming a significant player of Turkish
innovation and research policy. With this
framework, TDZ mainly influence the supply side
of knowledge economy. Most of the companies
operate in TDZ are dealing with ICT products and
services. Almost ninety percent of these
companies are high technology based SMEs. Their
interactions with universities yield knowledge
based new activities from the changes of
curriculums to patents and different ways of
university-industry and interindustry
collaborations.
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MUGLA UNIVERSITY
Public Funded RTDI Support Programs Technoparks
Technology Development Zones Law passed in 2001
Tax exemptions for RD activities, VAT
exemption for services and products created in
the zones, Laxed regulations on academic staff
participating commercial private activity. 22
approved, 10 operational with 349 firms. Around
5,000 RD FTE staff employed. TEKMER Incubator
Program Government owned and operated incubator
program 13 TEKMERs, 14 DTIs operational with
149 current tenants. TEKMERs graduated 197 firms
so far. USAM University Industry Joint
Research Centers TÜBITAK funded private
operated centers for shared contract research
using the university research capacity. Project
Supports to Private Companies TÜBITAK
Grants to industrial research projects
TTGV - Matching fund soft-loans to technology
development projects Finance for RD investments
Capital investments credit at market rates.
Other indirect supports (such as RD tax
discounts etc.) Tax deduction for up to 40 of
annual RD costs.
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MUGLA UNIVERSITY
The universities in Turkey recognize a need to
move from pure basic reserach toward the applied
research and technology development leading to
innovation. In collaboration with the
companies and researchers the TurkishUniversities
is adapting educational system with regard to
knowledge economy environment. Curriculums are
being modified in accordance with the
requirements of the companies.
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MUGLA UNIVERSITY
In 2004 Supreme Council for Science and
Technology (BTYK) adopted national RD targets
for 2010 Total RD expenses to reach 2 of the
GDP (current level is 0,67) Half to be
provided by the private sector (current level is
30) FTE RD staff to reach 40,000 (Currently
estimated to be 30,000) Extra budget allocation
had started in 2005, to be increased annually.
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MUGLA UNIVERSITY
A lot to say yet but In summary Universities
have new sets of tasks those differ from their
traditional tasks. They are becoming more and
more accountable to the society and to the
people they serve. A closer link is needed to
the demand of the labour market. The spectrum
of activities the universities are engaged has
widened, outside the traditional teaching and
research. There is more pressure towards a
applied research-based university in contrast to
the mostly teaching institutions in the past.
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MUGLA UNIVERSITY
THANK YOU
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