mugla university

MUGLA UNIVERSITY

1st INTERNATIONAL CONGRESS ON STRATEGİC TRENDS IN HIGHER EDUCATION

22-24 JUNE 2006, SDU-ISPARTA SENER OKTİK

KNOWLEDGE ECONOMY

AND HIGHER EDUCATION

Şener Oktik

Rector

MUGLA UNIVERSITY

480000 MUGLA TURKEY

[email protected]

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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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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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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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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 ICTto encourage entrepreneurship

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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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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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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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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 HEI’s is becoming even more dynamic.

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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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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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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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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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A recipe for

a knowledge based and innovation driven economy?

Higher Education + R&D

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Core Elements in the building of knowledge based innovation society

areHigher Education Institutes

(new requirements for their strategies, functions and even structures)

key players in national innovation policiesare

firms and companies .

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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.

“Getting together business needs and scientific-technological knowledge generation”

Basic R&D inCooperation

Innovation Support

Applied R&D

Technological Services

Technology Transfer

Industrial R&D

Identification and development of specific technologies, linked to

future business oportunities

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Bruno Broseta , PhD “Technology Absorption” Inovation and Technology Absorption for Growth Knowledge Economy Forum VPrague, March 28-30, 2006.

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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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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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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 creatingopportunities 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 educationalinstitutions;

• Flexibly integrating formal, vocational, adult and distance education and training to provide agreater range of opportunities for life-long learning, and creating policy and regulatoryframeworks, including certification schemes, that make lifelong learning opportunities attractiveand easy for individuals to pursue.

Model for Academic Excellence

Good Students

Excellent Staff

State-of-the-Art Facilities

Up-to-date Up-to-date ContentContent

Industry, Policy Makers & Community

GraduatesGraduates

Feedback and Quality Control

International International LinkagesLinkages

p.11

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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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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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Public Funded RTDI Support ProgramsPublic Funded RTDI Support ProgramsTechnoparks :Technoparks : Technology Development Zones Law passed in 2001 Technology Development Zones Law passed in 2001

TTax ax exemptionsexemptions for R&D activities, for R&D activities, VAT exemption for services and productsVAT exemption for services and products created in the zones created in the zones, , LLaxaxeded regulations on academic staff participating commercial private activity. regulations on academic staff participating commercial private activity. 22 approved, 10 operational with 349 firms. Around 5,000 R&D 22 approved, 10 operational with 349 firms. Around 5,000 R&D FTE FTE staff employed.staff employed.

TEKMER IncubatTEKMER Incubatoror Program : Program : Government owned and operated incubator program Government owned and operated incubator program 13 TEKMERs, 14 DTIs operational with 149 current tenants. 13 TEKMERs, 14 DTIs operational with 149 current tenants. TEKMERsTEKMERs graduated 197 graduated 197ffirms so far.irms so far.

USAM – University Industry Joint Research CentersUSAM – University Industry Joint Research Centers : : TTÜBİTAK funded private operated ÜBİTAK funded private operated centers for shared contract research using the university research capacity.centers for shared contract research using the university research capacity. Project Supports to Private Companies :Project Supports to Private Companies : TÜBİTAK –TÜBİTAK – Grants Grants to industrial research projectsto industrial research projects TTGV - Matching fund soft-loansTTGV - Matching fund soft-loans to technology development projects to technology development projects FinanceFinance for R&D investments : for R&D investments : CapitalCapital investments cinvestments credit at redit at market ratemarket ratess.. Other indirect supports (such as R&D tax discounts etc.) :Other indirect supports (such as R&D tax discounts etc.) : Tax deduction Tax deduction forfor up to 40% up to 40%

of of annual annual R&D costsR&D costs..

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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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In 2004 Supreme Council In 2004 Supreme Council forfor Science and Technology Science and Technology (BTYK) (BTYK)

adopted adopted national R&D national R&D targettargets s for for 20102010

Total R&D expenses to reach 2% of the GDP (current Total R&D expenses to reach 2% of the GDP (current

level is 0,67%)level is 0,67%)

Half to be provided by the private sector (current level is Half to be provided by the private sector (current level is

30%)30%)

FTE R&D staff to reach 40,000 (Currently estimated to FTE R&D staff to reach 40,000 (Currently estimated to

be ~30,000)be ~30,000)

Extra budget allocation had started in 2005, to be increased Extra budget allocation had started in 2005, to be increased

annually.annually.

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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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THANK YOU…

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mugla university

Documents

competitive information

knowledge intensity

codified knowledge

strategc trends

processing of information

highend information

sduisparta sener oktkthe

quality education