Lisbon Strategy 2.1: Europe - the most creative economy in the world (full)

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Information about Lisbon Strategy 2.1: Europe - the most creative economy in the world (full)

Published on December 3, 2007

Author: ziga.turk



Pre-Presidency Conference, Ljubljana, December 3-4,2007

Lisbon Strategy 2.1: Europe - the most creative economy in the world Pre-Presidency Conference, Ljubljana, December 3-4,2007 dr. Žiga Turk, minister Government Office for Growth SLOVENIA

2008: Starting a new chapter in European history end of period of EU looking inward treaty signed, form defined, expansion from EU15 to EU27 success of Euro time to look at the content, not form time to look outward time to shape, not respond to globalization

Lisbon Strategy is response to globalization which is driven by … freedom in politics fall of iron curtain and Berlin wall freedom in trade free trade agreements in WTO and GATT advances in logistics of goods: container ships, DHL, UPS … of information: internet, mobile phones Europe a follower, not driver of these processes

Context - Lisbon Strategy Lisbon 1.0 (2000) most competitive economy in the world Japan and USA Lisbon 2.0 (2005) growth and jobs looking inward if it's not broken don't fix it … Lisbon 2.1 (2008)

SWOT Strengths: cares for Weaknesses: no risk taking, little individualism, depending people, cares for nature, on government, highly quality of life, social regulated, low entrepreneurial security, health system, drive, weak r&d - industry links, culture of peace, human decreasing quality of education, rights, tolerance, weak capital markets, unreadiness to hard work, hard cooperation, tradition in study … science and art, Threats: does not address humanism … weaknesses, graying of Opportunities: builds on population, unable to compete strengths, attracts talents, with Asia, closes itself from the world, Europe is satisfied, tired innovates in all aspects of and lazy living, adapts and opens up to the world, projects its values to the world, dynamic economy

In the wake of the Asian century 1800s … European Century 1900s … American Century 2000s … Asian Century quot;they know it belongs to themquot; again!

Asia India + China GDP > West's GDP until 1820 India + China GDP > West's GDP after 2050 or before? other BRIC countries!

Innovation? United States graduated roughly 70,000 undergraduate engineers China graduated 600,000 and India 350,000. ½ of software developed in India ½ of Fortune 500 outsource software work to India new R&D centers of Microsoft, Cisco, Google, IBM … are in Asia, not Europe by 2020 80% of scientific papers in sci&tech will be written by asians out of top 10 universities 2 in Europe Asia (Singapore) is setting education standards

Innovation is not enough!

The shift Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers - innovators) Conceptual Age (creators) Source: Dan Pink, A Whole New Mind

Theoretical basis Schumpeter: products fulfill needs quot;profit is result of innovationquot; Dan Pink (rephrased): products fulfill passions quot;profit is result of creativityquot;

Do you buy what you need?

Or do you buy what you think and feel you need?

Do you pay for function or do you pay for meaning?

Added value in function or in meaning ?

Price of function is droping, and price of meaning rising image design image design quot;healthyquot; quot;healthyquot; quot;home quot;home trade mark trade mark madequot; madequot; “fair” “fair” marketing trusted marketing trusted price of meaning environmental environmental yy who can think friendly friendly of it who can sell it who is willing to 30 EUR price of funcion 1 EUR pay for it just function more

Who makes meaning? what is meaning? what gives meaning? what influences What gives meaning? values, morals, virtues! meaning? MORALIZATION OF THE MARKETS!

Innovation vs. Creativity Innovation: “The past few decades have belonged to a certain kind of person with a certain kind of mind— computer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers.quot; Creativity: quot;The future belongs to a very different kind of person with a very different kind of mind— creators and empathizers, pattern recognizers and meaning makers. These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its greatest joys.” Source: Dan Pink, A Whole New Mind

Left brain vs. right brain “The era of ‘left brain’ dominance—is giving way to a new world in which ‘right brain’ qualities—inventiveness, empathy, meaning—will govern.” left brain - rational, methodical, mathematical … culturally independent right brain - intuitive, artistic, sprititual … depends on cultural background Source: Dan Pink, A Whole New Mind

“Human creativity is the ultimate economic resource.” Source: Richard Florida, The Rise of the Creative Class

War for Educate talent talent! Attract talent Retain talent

Florida's 3 quot;Tquot;s Talent (educate, attract, retain) ½ mil. top EU engineers and researchers abroad Technology attracts talent Tolerance makes talent stay

Back to Lisbon 2.1 creativity, entrepreneurs hip, values …

Structure of Lisbon Strategy 2.1 citizen dimension (!) member state dimension open method of coordination European Union dimension (4) caring for the environemnt (1) innovation and creativity global dimension (new) (2) business environment si.nergy (3) caring for people (1) innovation and creativity (2) business environment (3) caring for people (4) caring for the environment

Growth of EU companies European companies revenues consolidation consolidation profitability /monopoly /monopoly gap gap innovation innovation & start-up & start-up gap gap world companies industry maturity phase 1: phase 2: phase 3: phase 4: opening scale focus balance/alliance

Jobs: Invest in HR souce: Europe’s Eroding Wealth of Knowledge Jean Pisani-Ferry

Jobs: Higher GDP, less endowment at lay off

Education challenge

Focus in LS 2.1 knowledge, innovation and creativity keyword: creativity growth, competitiveness & entrepreneurship keyword: entrepreneurship jobs, human resources keyword: talents, flexibility, best person for the job energy and climate change keyword: income or cost management organize CLP in 4 themes, have CLP reviewed yearly as well suggest organizing NRP 2.1 into 4 themes suggest yearly member state reporting into 4 themes

1. Pillar: Increasing the EU’s economic potential through R&D Promote Creativity as a horizontal issue to make Europe the most creative place in the world Innovation: generation and application of knowledge – establishment of the European Research Area (ERA), focus on the successful introduction of the European Institute of Technology (EIT) as a link between the public research sphere, the European higher educational environment and the economy. Introduction of knowledge as 5th freedom Establishment of joint technology initiatives (JTI) Opening the research infrastructure for researchers in SMEs, improving the competitiveness of the EU, Member States and regions; Inclusion of neighboring regions (especially the West Balkans) in European research programs.

2. pillar: Developing a competitive economic environment in the EU Promote enterprenurialship and growth of SMEs Access of SMEs to sources of funding Company clustering as one of the ways for SMEs to gain access to the research infrastructure, link to the 1st pillar. Deepening of the internal market; suitable framework for regulation, liberalization and transfer of benefits internal competitiveness of the European market, development of integrated policies for innovation and creativity in order to support growth of SMEs are required at the external level Europe should take the leadership in standards in the field of environment, better regulation, intellectual property Eliminating administrative barriers and reducing administrative burdens, especially for SMEs and citizens; accelerating the adoption of the program of simplifying EU legislation, adopting national goals and strategies for reducing administrative barriers for companies and citizens (national goals comparable to goals on the EU level). The Community patent the comprehensive strategy on intellectual property rights

3. pillar: Adapting the social model to the modern competitive economy Implementation of flexicurity (conditions and the approach): the right balance and coordination should be achieved between flexibility on the labor market and social security, which should be ensured for the unemployed. importance of social partners. Active employment policies (new activation polices, measures to stipulate active work – social protection benefits that stipulate work) and lifelong learning policies – for the increase employment security. Promotion of labour market policies as incentives of productivity growth, Knowledge society: the triangle between education, knowledge and economy should be closely connected with labour market needs External migration: demand on higher skilled workers? Respond to the demographic trends

4. pillar: Energy and climate change Promoting sustainable development and renewable energy recourses EU needs to improve its energy and resource efficiency and develop and fully utilized new low-carbon technologies. In this respect, the expected Strategic Energy technologies Plan needs to answer the question of available financing instruments; the SET plan shall involve new proposals for better coordination and the increase of available public funds for SET-related research. Security of energy supply and liberalization of energy and gas markets. To achieve the commitments set by the European Council, EU will need to start systematically and consistently investing into sustainable low carbon and resource efficient technologies. Removal of all barriers to trade in renewables and environmental technologies, by, among others, adoption of EU wide standards, which will be set at the most progressive end. Moralization of the markets.

Focus (summary) knowledge, innovation and creativity support for JTI, technology platforms widening of ERA towards SE Europe knowledge as 5th freedom ERA and ERA networked approach to concentration growth, competitiveness & entrepreneurship entrepreneurship, education, role models SMEs, early stage financing internal market (review) continued reduction of administration burden jobs, human resources sharing best practices on flexisecurity improving education of youth and adults, weakness in knowledge triangle perspectives of the young energy and environment environmental policies as key driver of innovation and consequently economic growth

Creativity as the horizontal issue in the four themes innovation and creativity not only engineers but designers, artists competitiveness how to make talents entrepreneurial people how to educate, attract and retain talent, how to make talent entrepreneurial, how to flexibly employ talents environment make it into a value, make it into a business opportunity

Role of Europe in globalization it is ultimately about values well designed, fair, environmentally friendly, nice, trustworthy … Europe's role in the globalized world is to shape values … dealing with conflict, addressing climate change, agreement among generations, social sensitivity, global empathy … valuing design, brand, intellectual property export these values creating products fitting this world view exporting products creativity is the key!

We have legacies and traditions to build on!


The Chinese invented cheap paper. In 15th century Europe learned Democratic use of paper. It can be used for anything. So many to use it. more people can learn, create …

The first communi- cation revolution

The Reneissance follows. Europe takes In ethics, arts, science, technology. the lead. World domination follows. Culminates in the early 20th century.

In the20 th Century Americans Democratic use of invent the digital technology. Anyone can be an Internet. author. Anyone can publish. Do movies. Do music. Europe learns Spread ideas. to use it. Values. His or her own.

The second communication revolution

Not in colonies. Not in steel production. In ideas. In values. Creativity 2.0 Everyone gets involved Creative, media empowered society! What will we Or we get so poor manufacturing will come back to Europe. make of it? No room for complecancy

References Dan Pink, A Whole New Mind Richard Florida: The Raise of the Creative Class Jeremy Rifkin: The European Dream

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