The New Type of Skills Formation

Most of OECD countries are directly or indirectly supporting the tertiary education sector by providing sizable funding as part of overall innovation efforts. Figure 3.5 shows that all the governments of OECD countries finance not only education infrastructure costs, but also a large proportion of gross expenditure on research and development in tertiary education. In Korea, research and development in tertiary education accounted for only 0.28% of the total GDP in 2007. Moreover, universities play multiple roles such as in the areas of human resource development and technological innovation through the diffusion of R&D and knowledge.

Universities also hold enormous social and cultural significance. However, non-university institutions engaged in vocational education and training must play a role in skills formation when it comes to innovation in the knowledge economy.

In research and innovation, many policies are concentrated on the tertiary education sector as places where new scientific and technological principles are discovered. In this case, the important issue becomes how well these discoveries are transformed into innovations. In the knowledge economy, this leads to an emphasis on commercialization not only as a problem for universities, but also as a problem for postsecondary VET institutions. Most of the policies on commercialization are focused on intellectual property rights, patenting, and technology transfer from tertiary education institutions. However, the contribution of universities to the global knowledge resource base is not limited to specific discoveries. Beyond universities, vocational education and training within tertiary education can play an important role in commercialization through innovation.

According to the OECD (2009)⁵, skills formation is driven in part by formal education, and in part by the creation of firm-specific human capital, via vocational or on-the-job training, both in theoretical and applied analysis. Since teaching is closely linked to research, skills formation in tertiary education actually goes hand-in-hand with innovation.⁶ From a technological standpoint, education has at least two main dimensions: inculcating specific forms of knowledge or skills, via training in sciences or technology related disciplines such as chemical engineering, and developing problem-solving capabilities of a more general character. The latter is particularly important since the dynamics of knowledge imply a need for continual updating and retraining. Technologically speaking, these functions of the tertiary education system occur mainly through science and engineering training, an area that has expanded considerably since the late 19^th century, and that continues to grow. However, non science and technology

\GAlso,GOECD (2009) argue that there are at least four broad ways in which tertiary education contributes to the use of knowledge in both economic and social life: the building of knowledge (primarily through research); the creation of capabilities (through teaching and research training); the diffusion of knowledge (through interactions with knowledge users); and the maintenance of knowledge (inter-generational storage and transmission of knowledge through codification, libraries, databases, etc).G

]GTeaching has long been a – perhaps the – central function of tertiary education institutions. Despite the fact that teaching is often held to be closely linked to research, it is arguably quite separate form it (Martin, 2003; OECD, 2010).G

occupations also contribute to knowledge assets, via social science and humanities disciplines.

Lee (2010) discussed the linkage between VET and innovation. The era of high skills and sustainable innovation has arrived and it calls for new kinds of vocational education and training. Typical VET does not effectively work in an age where innovation is in high demand with high skillful, board, and complex competencies of human resources (HRs). What kinds of knowledge are more important for innovation, especially disruptive innovation? Which is more directly linked to (disruptive) innovation between tacit/implicit (know-how, process, etc.) vs.

explicit knowledge (academic paper, parents), or between formal vs. informal knowledge?

Effectively combining skill/competency and innovation is highly needed for disruptive breakthroughs. Learning by using, doing, and interacting should be synergistically combined into/with scientific knowledge. Human embodied technology and non-embodied technology have to be appropriately synthesized. Certainly, un-measurable skill/competence such as creativity, implicit knowledge, character is central to breakthrough innovation. Generally, measured skill/competence tends to contribute to incremental innovation.

Skill strategy, connected to innovation strategy, can be got by integrating skill strategy into innovation strategy. A national innovation system and a national skill system could be integrated, taking aspects of both innovation and human resource. For example, how can a skill strategy be imported into open innovation strategy? The skills need to catch up are different from the skills needed to go past catching up. There may be a mismatch between the innovation strategy and skill strategy at the national level. In taking the “Triple Helix” perspective, one can think of

“academic capitalism” or “firm-like university”. They all accentuate direct socio-economic contributions through technology/knowledge transfer and commercialization. Various channels of linkages between university and industry (UI) are embodied by the interaction between person, ideas and innovation (PI squares). To achieve this, it is very important to enhance skills for innovation in university. Typical VET or skills are suitable for an innovation-oriented society.

The professional VET for HRs with medium to low levels of skills can be suitable for a voluntary learning community. Generally, professional and innovative learning with high skills are considered to belong to HRs. However, nowadays voluntary and active learning occurs in the field of medium and low tech sectors; namely, in the sector of HRs with medium and low skills. Voluntary communities of innovation are being formed among HRs with medium and low skills.

Ideas for fostering a professionally driven VET are two. First, Korean universities should position themselves strategically. They should state their mission statement more clearly whether they are a “research oriented university” (u1), “industry linked university” (u2) or “life and urban vocation oriented university” (u3). Taking into macro considerations, strategic balance, and the portfolio of u1, u2, and u3 universities, should be managed. Next, various VET programs should be explored at Korean universities. Particularly, VET programs have to be grounded in an open innovation based learning and learning organization such as COP (Community of Practice), COI (Community of Innovation) at Korean universities, to enforce the function of vocational education. Techno-premiership, the Einstein school, and S&T entrepreneurship programs are actively being launched at Korean universities to enhance the relevance of higher education.

3.4.2 Social Education and Training

The Korean economy has experienced a low growth trend in the 2000s that has been jobless.

As seen in chapter 2, the Korean economy is not able to create enough jobs by relying on growth from the traditional manufacturing and service sectors. As such, Korea needs to foster

new industries to create jobs in the future. It is important to consider together both the development of high level and creative skills and the demand of skills. In the future, the opportunity to create new jobs will likely appear in the development of the social service industry because of two trends: a fast aging population and advancing society. The emergence of the social services industry needs to be accompanied with social education and training (SET) under new methods of skills development.

First of all, the trend towards an aging or aged society is creating demand for new jobs that need new skills. Society’s increasing longevity seems to have given way to a growing demand for an “anti-aging industry” and “hormone drug industry,” which will likely continue to grow in the future. Also, Korea society in the near future is able to reduce the social costs according to the advance of an aging society through the healthful longevity society of low costs. The social costs of longevity can be reduced by incorporating two elements such as proper exercise and nutrition, sound personal relationships, and social participation. The first relates to the information on self-medical services or self-health care. The second relates to activities in the social community. The knowledge and information about these two elements of health care or social activity are acquired from education and training.⁷ Eventually, the health and longevity of a society requires SET, which can be an important source of job creation in the social service industry. It can directly affect industrial production.

Second, an advanced society needs social education and training facilitated by a new post- secondary VET to ensure social cohesion. As seen in Table 3.3 and Table 3.5, lifelong learning and skills development training are largely increasing in the private sector and not in the public sector. This increase in the private sector has mainly been led by the expansion of leisurely or cultural activities, driven by the growth of KoreaĜs national income. The programs of private institutions mainly provide knowledge and information that have an indirect influence on industrial production in relation to leisurely or cultural activity.⁸ This leisure and culture driven consumption enlarges the power of the social community, and SMEs are the production basis of this social service industry.

Finally, the public social service sector will likely play an important role in job creation. As seen in chapter 2, KoreaĜs population growth rate is the lowest amongst OECD countries.

According to this, Korea is facing a labor supply shortage in the future, and thus, needs to promote the economic active participation of women. A growth in the participation of woman will require an expansion of childcare services within the public sector. The expansion of this public service will increase the need for education and training in childcare. Also, the number of foreign workers and multi-cultural households⁹ has been continuously increasing. The increase in immigrants has been driven by KoreaĜs high income status which offers incentives for immigrants from low income countries to migrate to Korea. Moreover, Korea faces the challenge of social bipolarization in many facets of society including income, professional, and

^GFor example, SUN MiniMed School in Seoul National University Hospital has taught medical knowledge to adults.

This program is highly popular among elderly adults, and is directly able to create demand in heath care within the SME sector (http//ioa.snu.ac.kr).G

_GIn Korea, leisure activities such as hiking and climbing are becoming widespread. This has led to increased demand for high-quality shoes. In another example, communities are increasingly getting together to share their interest in the sport of traditional archery, which has been a boon to the traditional archery industry, and has led to an increased demand for education and training services in archery shooting.G

`G Multi-cultural households include families formed through inter-racial marriages and foreign residents such as immigrant workers, foreign students, and refugees from North Korea.G

regional disparity. The growing emergence of multi-cultural households requires an education and training system to meet their social security needs.

Considering SMEs with new post-secondary VET, the learning/training programs that are provided by these private institutions are considerably different from traditional VET. The traditional VET programs are mostly composed of content geared towards job training, as well as industries in need of skills or higher industrial productivity. However, social education and training (SET) is composed of consumption-oriented content, and relates to skills needed in social services or social development. SET plays a role as provider of skills required in the social service industry (or occupation). It also takes part in enforcing the function of social community by promoting social participation or relationships.