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1 The Changing Dynamics of the Global Market for the Highly- skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies, Washington, D.C. 10 January 2005

1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Page 1: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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The Changing Dynamics of the Global Market for the Highly-skilled

Andrew Wyckoff

OECD

Advancing Knowledge and the Knowledge Economy

National Academies, Washington, D.C.

10 January 2005

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300 350 400 450 500 550 600

Hong Kong-ChinaFinland

KoreaNetherlands

LiechtensteinJ apan

CanadaBelgium

Macao-ChinaSwitzerland

AustraliaNew Zealand

Czech Rep.I celand

DenmarkFrance

SwedenAustria

GermanyI reland

Slovak Rep.Norway

LuxembourgPoland

HungarySpainLatviaUSA

Russian FedPortugal

I talyGreeceSerbiaTurkey

UruguayThailand

MexicoI ndonesia

TunisiaBrazil

OECD (2004), Learning for tomorrow’s world: First results from PISA 2003, Table 2.5c, p.356.

PISA: Mean mathematics scores – overall (All)

US mean score ranks in range 24th to 28th in 41 countries.

Page 4: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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US as the benchmark

Page 5: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Competitiveness Rankings

Source: IMD World Competitiveness Yearbook, 2004 and World Economic Forum’s Global Competitiveness Report, 2003-04

IMD

2004/2003

WEF

2004/2003

1 US / US FIN / FIN

2 SING / LUX US / US

3 CAN / FIN SWE / SWE

4 AUST / SING TAIW / DNK

5 ICE / DNK DNK / TAIW

6 HK / CAN NOR / SING

Page 6: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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How could the authors of “A Nation at Risk” have gotten it so wrong?

Page 7: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Foreign PhD Students

010203040

Italy

Mexico

Slovak Republic

Turkey

Finland

Portugal

Czech Republic

New Zealand

Spain

Iceland

Austria

Norway

Canada

Denmark

Sweden

Australia

United States

Belgium

United Kingdom

Switzerland

%

26 143

78 884

0 2 500 5 000 7 500 10 000

United States

United Kingdom

Spain

Australia

Switzerland

Canada

Sweden

Austria

Belgium

Finland

Czech Republic

Portugal

Norway

Denmark

Turkey

New Zealand

Italy

Slovak Republic

Mexico

Iceland

% of total enrolment, 2001 Number by host country, 2001

Page 8: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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% of 1998-01 Foreign S&E US Degree Recipients with “plans to stay” in the US

0102030405060708090

100

China

India UK

Total

Canad

a

Taiwan

Germ

any

Source: NSF, S&E indicators, 2004

Page 9: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

USA CAN AUS GBR DEU FRA ESP CHE NLD SWE

* Age 15+, ISCED 5/6

Stock of Highly Skilled* Immigrants in OECD Countries

Source: Dumont and LeMaitre, 2004

Page 10: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Changing Dynamics of the Market

9/11 EU & Japan China & India MNEs

Page 11: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Page 12: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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-3

-2

-1

0

1

2

3

4

5

6

7

1989

/90

1990

/91

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

Annual Percent Change of International Student Enrolment in US Higher-education Institutions

Source: IIE (2004), “Open Doors Report,” http://opendoors.iienetwork.org/

Page 13: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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New Demand: the EU & Japan

Page 14: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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EU Lisbon & Barcelona Goals

Barcelona 2002

[o]verall spending on R&D and innovation …should be increased with the aim of approaching 3% of GDP by 2010. Two-thirds of this new investment should come from the private sector.”

Lisbon 2000“The Union has today set itself a new strategic goal for the next decade: to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion.

Page 15: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

15-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

0% 1% 2% 3%

Public sector Private sector Total

Additional Researchers Required to meet EC Barcelona 3% R&D Target

Page 16: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Japanese Foreign Workers w Special and/or Technical Skills

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

1992 1994 1996 1998 2000 2001

Source: METI, 2003

Page 17: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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New Demand: China & India

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Number of Chinese students enrolled in tertiary education in the United States,

Japan and the EU, thousands

0

10

20

30

40

50

60

1998 1999 2000 2001

United States Japan EU

Page 19: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Source: Weiguo and Zhaohui, 2004

Doctoral Degrees Awarded in China

Page 20: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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0

200

400

600

800

1000

1200

1400

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

United States EU China Japan

*

0

20

40

60

80

100

120

140

160

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Korea Chinese Taipei Singapore

Number of researchers, thousands of FTE

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Growth of R&D expenditure, annual average growth rate 1991-2001

(based on national currencies in constant prices)

0

4

8

12

16

China (1991-02)

Singapore (1994-02)

Korea Chinese Taipei(1995-01)

United States(1991-03)

EU Japan

%

Source: Schaaper, 2004

Page 22: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Gross Domestic Expenditure on R&D(2002, $Bill GDP PPPs)

US 277.1

Japan 106.8

China 72.0

Germany 53.9

France 36.6

UK 31.0

Korea 23.5

Source: OECD, MSTI, 2004/1

Page 23: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

China Japan European Union United States

Korea Hong Kong, China Singapore

Note: Data are by priority year and are provisional.

Source: OECD, Patent Database, July 2003

Patent applications to the SIPO, by residence of inventors

Page 24: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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338

254

206

130

100117

97103

53

84

5871

5638

78

1594332012

400

0

50

100

150

200

250

300

350

400

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

50

100

150

200

250

300

350

400

China United States Chinese Taipei Other countries

USPTO Patents by Chinese Inventors

By Priority Date

Source: OECD, Patent Database, December 2004

Page 25: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Policy Implications: an Initial Mapping

1. National Systems of Innovation (NSI)– Short-term: must compete in this global market

– Long-term: need to increase indigenous supply

– Increased global competition will make it will be more difficult for young researchers to be recognised, publish and get appointments at top-institutions (D.Hicks)

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Policy Implications: an Initial Mapping

2. Macroeconomic Effects

– Demand , Supply , then Price

– Return flows will diffuse and create pressure to adopt push best practices (Saxenian)

– Need for more global coordination of economic policies and data (esp. MNEs & flows of highly skilled) to guide these policies.

Page 27: 1 The Changing Dynamics of the Global Market for the Highly-skilled Andrew Wyckoff OECD Advancing Knowledge and the Knowledge Economy National Academies,

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Policy Implications: an Initial Mapping

3. Extending the Global K-Network

– Need to reconfigure the global knowledge network,

– Tap into the “transnational technical communities”

– Pivotal role of the US

– Coordinating role of the IOs.