1. Prof. Dr. Gerhard Bosch Institut Arbeit und Qualifikation Munscheidstr. 14, D - 45886 Gelsenkirchen Tel.: +49 209/1707147; Fax: +49 209/1707124, Email: gerhard.bosch@uni-due.de ; http://www.iaq.uni-due.de/ Gerhard Bosch Skills and competencies for innovation Advancing innovation: human resources, education and training OECD / Germany workshop 17-18 November 2008 Seminaris Hotel, Bad Honnef

2. Institut Arbeit und Qualifikation Skills and competencies for innovation Focus on VET 1.Formal and informal learning 2.The German Paradox 3.Innovation in work organization and VET 4.SME’s, innovation and skills 5.Regulation and training 6.Financing adult learning Gerhard Bosch Bo08OECDBadHonneff 2.vjj

3. Institut Arbeit und Qualifikation Source: BMBF, 2006 Berichtssystem Weiterbildung 1.1Participation in formal and informal learning 17% 30% 42% 52% 44% 56% 73% 78% Without vocational training Vocational training Master, Technician Business administrator Tertiary education Formal Learning Informal Learning Gerhard Bosch Bo08OECDBadHonneff 3.vjj

4. Institut Arbeit und Qualifikation 2.1 The German Paradox High Export surplus – lowest percentage of graduates from tertiary education among big OECD countries Source: Konsortium Bildungsberichterstattung (2006): Bildung in Deutschland, S. 31 Share of graduates from tertiary education (25-35 years) in selected OECD countries 1991 – 2003 (in%)

5. Institut Arbeit und Qualifikation Tertiary education Master, technician, business adminstrator Vocational certificate Without vocational certificate Tertiary education Master, technician, business adminstrator Vocational certificate Without vocational certificate Source: IZA Research Report No. 9, 2007 2.2 Labour demand by skill level in Germany 2003 and 2020 (in %) Gerhard Bosch Bo08SPDEssen 5.vjj

6. Institut Arbeit und Qualifikation 2.3 The German Paradox  Academic bias in analysis of innovation and skills  Focus on indicators like R&D, enrollment in tertiary education  Neglect of VET  Good vocational training needed for  Introduction and diffusion of innovations  Improving the efficiency of production process  Further VET  Masters, Technicians, Business Administrator in service occupations  Middle managers from the shop floor  New Hybrid between VET and Tertiary education: Dual study Gerhard Bosch Bo08OECDBadHonneff 6.vjj

7. Institut Arbeit und Qualifikation 3.1Job enrichment (Aufgabenintegration) for skilled workers in the German engineering industry 1989 - 2003 Gerhard Bosch Bo08OECDBadHonneff 7.vjj

8. Institut Arbeit und Qualifikation 3.2 Veränderungen in der Arbeitsorganisation M.Baethge / V. Baethge-Kinsky / R. Holm / K.Tullius:Dynamische Zeiten – langsamer Wandel: Betriebliche Kompetenzentwicklung von Fachkräften in zentralen Tätigkeitsfeldern der Deutschen Wirtschaft. Schlussbericht des Forschungsvorhabens: „Kompetenzentwicklung in deutschen Unternehmen. Formen, Voraussetzungen und Veränderungsdynamik“, SOFI, März 2007. Gerhard Bosch Bo08OECDBadHonneff 8.vjj

9. Institut Arbeit und Qualifikation 3.3Comparison of training curricula in the German metalworking trades 1987 and 2004 - 1987 - 45, 1987 - 16, 2004 – 5 occupations Gerhard Bosch Bo08OECDBadHonneff 9.vjj

10. Institut Arbeit und Qualifikation Class Room- Orientation Product- Orientation Project- Orientation Customer- Orientation Increasing Work Orientation Small Products Complex Products Orders Source: Bosch 2000a 3.4 Basic learning forms in vocational training Gerhard Bosch Bo08OECDBadHonneff 10.vjj

11. Institut Arbeit und Qualifikation 4.1 Role of SME’s in innovation Basic research Applied research Dev. of new products and methods Introduction into markets Diffusion Transfer of own or external solutions into markets Broad diffusion of new technologies Service innovation Innovationprocess Gerhard Bosch Bo08OECDBadHonneff 11.vjj

12. Institut Arbeit und Qualifikation 4.2Main bottlenecks for introduction and diffusion of new technologies – lack of skills ►Proactive approach: development of special training courses ►Chambers of artisans active for example in providing training courses for example in energy saving (heating, insulation) etc. ►Competition for new markets: New skills decisive who is successful ►Advantage of training not provided by one producer: more choice for consumer, no firm-specific standards, better chances for the best solutions Gerhard Bosch Bo08OECDBadHonneff 12.vjj

13. Institut Arbeit und Qualifikation 4.3Small firm development account in UK èPilot Program in Leicestershire & Lincolnshire carried out by the ”Centre for Entreprises” launched in 2002 èA mechanism to stimulate business led workforce development in small companies (5 – 50 employees) èTraining advisor of the Centre and ”Training Champion” appointed by the firm to develop ”Training and Development Plan” èCompany receives £ 500 after signing the plan / Centre pays up £ 150 per employee for external training RESULTS: l280 Training Champions attended workshops l230 approved training plan lAverage 20 employees per business lAverage 11 employees per plan Gerhard Bosch Bo08OECDBadHonneff 13.vjj

14. Institut Arbeit und Qualifikation 4.4Transfer to Germany: Training checks in North-Rhine-Westphalia  For companies with less than 250 employees  Grant up to 500 € per cheque/ 50% to be paid by company  Up to 2 cheques per year  Cheque only after consultation  No cheques for on-the-job training  No cheques for training if legal obligation to train  No targeting on low skilled or low wage earners Active marketing and consultation – High utilization Gerhard Bosch Bo08OECDBadHonneff 14.vjj

15. Institut Arbeit und Qualifikation 5.1 Strong impact of regulation on training Internalise training-incentives in markets/avoid underinvestment In the product market: A. In the labour market: B.B. Prevailing wage laws Minimum training requirements for participation in bids Licensing (such as for doctors, pilots or electricians) Employment protection which establishes long term relations between employer and employee create incentives for training Avoiding free rider problem by introducing a levy (as in the Danish apprenticeship system) Health and safety regulations Quality standards for products and services (as in health or construction industry) Safety or liability regulations Gerhard Bosch Bo08OECDBadHonneff 15.vjj

16. Institut Arbeit und Qualifikation 4,3% 3,8% 2,8% 2,1% Repeal States before repeal States retaining law States that never had law Repeal States after repeal Source:P. Philips: The US: A tale of two cities. In: G. Bosch / P. Philips: Building chaos (Eds.): an international comparison of deregulation in the construction industry. London: 2003 * Apprentices as a percent of journeymen. Apprenticeship Training Rates and Prevailing Wage Laws by State Legal Policy * Gerhard Bosch Bo08OECDBadHonneff 16.vjj

17. Institut Arbeit und Qualifikation èWorld Bank èIndividual responsible for own support for living during education and èMarket failure in financial sector; therefore only loans èView in some European countries èPublic responsibility: simple jobs disappearing èSome individuals not sufficient means èExternal effects of basic education higher than private returns èKnowledge, immigration and ageing society: more learning needed 6.1Public responsibility for adult education and training Gerhard Bosch Bo08OECDBadHonneff 17.vjj

18. Institut Arbeit und Qualifikation èSince 2001 an integration of grant and loan systems for young and adult students èGrants and loans for school and vocational certificates and for university study èFor learners up to 25 years 34.5% grant / for older learners 82% grant èGrants and loans up to age of 50 years èEntitlements for unpaid training leaves up to 5 years èEducation and training supply for adults very flexible 6.2Grants and loans for adults in Sweden Gerhard Bosch Bo08OECDBadHonneff 18.vjj

19. Institut Arbeit und Qualifikation Support for living Grant:100% no Increase of private interest Certificate of Tertiary Education Advanced further Training Certificate up to Sec. II Support for living / tuition fee Grant: 35 Loan: 65 Support for living Grant: 50 Loan: 50 Tuition fee no Tuition fee Grants and Loans Depending on public and private Interest 6.3 Proposal of grants and loans for adults in Germany Proposed by the High Level Expert Group on financing lifelong learning 2003 Gerhard Bosch Bo08OECDBadHonneff 19.vjj