General participation as a precondition General participation as a precondition for knowledge-based development: for knowledge-based development:
universal regularities and Latvia’s caseuniversal regularities and Latvia’s case
Prof. Edvins KarnitisProf. Edvins KarnitisExpertExpert
Latvia’s Commission of Strategic Analysis
Subcommittee of Saeima on Monitoring the Implementation of the National Development Plan
KnowledgeKnowledge
Business Business Technological Technological
excellenceexcellence
Public Public servicesservices
Quality Quality of lifeof life
IInnffoorrmmaatitioonn
Educationresearch
Innovation
ICT tools and servicesICT tools and services
EnablerCatalyst
RESOURCE GOAL
Information society = knowledge-based developmentInformation society = knowledge-based development
informationinformation knowledge wisdom knowledge wisdom
ICT tools & services
Information
Knowledge
Growth
20
40
60
80
100
120
140
3 4 5 6Networked readiness index, 2006
EE
IE
IT
LV LT
DK
BG
GDP per capita, PPS, EU25=100 (2006)
InnovationEconomy
Processing
Transformation
UseProductivity
Growth
SupportEU25:
40% of productivity growth and 25% of GDP growth
is achieved due to ICT
ICT – growth catalystICT – growth catalyst
Investments
3,5
4
4,5
5
5,5
6
-10 0 10 20
Leaders
Trailing
Catching up
NL
PLBG
LU
LV
DK
LT
EE
Networked readiness index 2006
Progress in global rating 2004–2006Sources: Eurostat, WEF
Resources Knowledge
Wisdom Ability to use them
Goal Quality of life
Strategic principles Inclusion Balancing
Networking Boundary spanning
People FirstPeople FirstA human-centred knowledge-based growth modelA human-centred knowledge-based growth model
approved by Saeima (Parliament), October 2005approved by Saeima (Parliament), October 2005
Resource: knowledge
People: educated, wise and creativeAcquisition
Welfare, security, sustainability
Research & development
Innovation, technological excellence
Creation
Usage
Keeping
Development
Exploitation
NDP: a mid-term implementation programmeNDP: a mid-term implementation programme
Results of applied research
Demand
MotivationFinancial supply
Financial supply
Quality & quantity
37,1
34
33
29,7
41,2
48,6
53,4
25
30
35
40
45
50
55
1994 1996 1998 2000 2002 2004 2006
GDP per capita% of EU25 average
Convergence EU25 + 5%
Slow convergenceEU25 + 3,5%
Real growth
Latvia today: Latvia today: impressive growth, impressive growth, progress inprogress in innovation innovation
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
-4 -2 0 2 4 6
Average growth rate of Sll
2006
Sum
mar
y In
nova
tion
Inde
xTR
ITEE
NO
US
IE
DEJP
FI
SECH
DK
LU
EL
LT
PL
LVCY
RO
Innovation leaders
Followers
Trailing
Catcing-up
Sources: Eurostat, WEF
ICT and innovation: unutilised potential so farICT and innovation: unutilised potential so far
89,762,5 59
247,6
41717,5
21
020406080
100
Compu ters LAN Intranet Extranet Internet Innovativeactivities
Internal External
2006 2004 Integration of businessprocesses 2004
Others
Broad-band
% of all enterprises w ith 10 or more persons employed
51.9
15.1
14.2
9.4
6.6
11.3
0 10 20 30 40 50 60
Lack of e-signature
E-business legislation
Data security problems
Customers' rights
E-commerce documents
Guarantees of e-purchase
% of answers "Right" (2005)
Right40.6%
Wrong28.0%
n/a31.4%
There are barriers for e-business
Sources: Eurostat, CSB
knowledge creation and transfer;
also everyday improvements;
in any sector, region and job;
material motivation – profitability;
selective support of innovative business (taxes, investment and export support, etc.);
cooperation with research institutions;
creative industries: integration in the economics;
To motivate business: innovationTo motivate business: innovation
5.9%
4.6%
12.6%
76.9%
0% 20% 40% 60% 80%
R&Dactivities
R&Doutsourcing
Knowledgetransfer
Purchase oftechnologies
Distribution of expenditures for innovation, enterprises with 10 or more persons employed (2004)
Source: LIDA
6.9
9.8
18.6
25.5
57.8
84.3
0 20 40 60 80 100
Breach of terms
Low competence level
Business do not require R&Doutsourcing
Price for R&D is too high
Inactivity of scientificinstitutions
Lack of information on R&Dactivities
Barriers for R&D outsourcing, % of respondents (2005)
programmes for market oriented research; commercialisation of results;
cooperation with industries;
basic science in priority areas;
renewal of research community;
material motivation – remuneration system;
psychological motivation – academic career, patents;
To motivate academic society: applied researchTo motivate academic society: applied research
Source: LIDA
Society about knowledge: Society about knowledge: strongly understanding, moderately interested, strongly understanding, moderately interested,
underinformed and insufficiently activeunderinformed and insufficiently active
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
EU25 LV EU25 LV EU25 LV EU25 LV EU25 LV EU25 LV EU25 LV EU25 LV
Applying S&Tdevelops our
economy
S&T rise ourquality of life
Young's inte-rest in S&T is
essential
Interested in advancedS&T news
Informed onadvancedS&T news
Read articlesabout S&T
Talk with myfriends about
S&T
Attend publicmeetings on
S&T
Agree, well, regularly Moderately, occasionally Disagree, poorly, never n/a
Source: Eurobarometer, 2006
Renewal of highly skilled human resourcesRenewal of highly skilled human resources
2936 40
23 20 212931 26 26
3428 33 31
36 3426
3952
37 40
0
20
40
60
EU25 FI IE DE LV LT EE
25–34
35–44
45–64
% of total R&E population
Key group in innovation: researchers and engineers (2004)
277
739 744891
1013
0
200
400
600
800
1000
1200
< 30 30 – 39 40 – 49 50 – 59 60 +
Persons in age group
Age distribution of academic staff in public higher education institutions (2006/07)
Sources: Eurostat, MS&E
10,2 7,7 5,91,9 3,9 7,4 6 4,1
32,127,5
7,9
27,4
0
10
20
30
40
EU25 DE DK EE EL HU IE LT LV PT SE UK
% of population 25–64
Participated in education in the four weeks preceding the survey (2005)
Education: from several guru Education: from several guru to mass-production of knowledge potentialto mass-production of knowledge potential
qualitative basic, compulsory secondary, competitive and publicly accessible tertiary education;
higher level specialists, master and doctoral degrees;
life-long learning for everybody;
from brain donor country to brain beneficiary country;
Source: Eurostat
Motivation to learn: employment and earningsMotivation to learn: employment and earnings
117 116 118
109
131
154
10393110109 111
100103
117124
113
90
100
110
120
130
140
150
160
DE EE FI IE LV LT PT SK
High-tech
Mediumhigh-tech
Mean annual earnings per person employed in manufacturing (2002)
% of total manufacturing earnings
10,3
15,1
11 11,4
6,47
13,3
4,4
7,75,96,97,9
10,9
7,35,4 6,5
3,34,12,4 1,9
3,42,2 2,6
0
5
10
15
20
EU25 LV LT FI IE SK
Total
Basiceducation
Secondaryeducation
Highereducation
Unemployment rates of the population by level of education (2006)
% Unemployment rates of the total population 25 – 59
Source: Eurostat
23
65
3934 38 38
8
30
58
4432 37 39
8
83 84
0
30
60
90
Better help Gainflexibility
More andbetter
information
Feel more incontrol
Save time Save money Fasterservice/reply
Noadvantages
Individuals
Enterprises
Experienced benefits with online public services (EU25, 2004)
% of services' users
45 53
218
2160
20
40
60
80
100
EU25 SE LV EU25 SE LV
Don't use Internet
Have access/use Internet
Also obtain informationfrom public authorities
Also download forms
Also submit completedforms
Enterprises Individuals
%
Usage of online public services (2006); percentage of total businesses / population
Usage of online public servicesUsage of online public services
Source: Eurostat
18.224.5
0.1
24.5
44.337.5
0
10
20
30
40
50
Lack of skills Access coststoo high
Equipment coststoo high
Don't wantInternet
Securityconcerns
Have Internetaccess
elsewhere
% of households not having Internet access
Reasons for not having Internet access in households (2006)
Internet access in householdsInternet access in households
3223
8 14
3238
17 209 13 15
19
19
913
29 15
31 22
15
24 19
0
10
20
30
40
50
60
70
EU25 LV all 1 adult 2 adults 2 adultswith
children
Riga Surroundings
Kurzem e Latgale Vidzem e Zemgale
Others
Broad-band
% of households
Internet access in households (2006)
Sources: Eurostat, CSB
Motivation for access: supply of online servicesMotivation for access: supply of online services
32
81
22
45
2.6
40
85
31 32
3.6
19
34
13 154.2
0
20
40
60
80
100
Fixed telephonelines
Mobile telephones PCs Internet users Internet hosts
Latvia
Europe
World
% of population
Penetration of basic ICT (2005)
1020
3040
5063
71
79 83
0
30
60
90
LV PL EL LT EU25 DK UK EE AT
% of availability
Availability of 20 basic e-government services (2006)
Sources: ITU, Eurostat
3124
82
5
157
39
23
62
8
28
1116
10
58
28
39
24
59
31
43
30
0
30
60
90
EU25 (2005) Latvia – total Age 16–24 Age 45–54
Formal education institution
Training courses on owninitiativeTraining courses on demand ofemployerSelf-study
Learning by doing
Informal assistance from othersWhere and how IT skills were acquired (2006)
% of IT using individuals
0
20
40
60
80
100
EU25 Latvia –total
Males Females Age 16–24 Age 25–54 Age 55–74 Primaryeducation
Secondaryeducation
Highereducation
No basicskills
Low level
Mediumlevel
High level
Individuals' level of basic computer skills (2005)
%
Computer literacyComputer literacy
Sources: Eurostat, CSB
deeper integration of the Baltic Sea Region: political, legal and economic aspects;
active function of metropolises – real knowledge hubs; Hanseatic League;
strengthening capacity and competitiveness of Riga;
Riga as a knowledge gateway, transfer of Riga’s excellence and potential to towns;
Baltic Sea region and polycentric developmentBaltic Sea region and polycentric development
towns as the knowledge, business, social and culture centre of surroundings;
virtual enterprises and e-work –the base for development of rural areas;
Public opinion study: Public opinion study: in general, things are going in general, things are going
in the right or in the wrong direction? in the right or in the wrong direction?
56 53 52 50 49 48 40 32 28 25 23 21 20 13
2518 30 26 32 36 34 46
4857
50 60 61 61
0102030405060708090
100
IE EE FI LT SE DK LV EL EU25 UK DE PL FR HU
n/a
Wrong
Qccas-sionally
Right
%
Source: Eurobarometer, 2006