Presentación del especialista senior en educación del banco mundial, Michael Crawford, en el marco del seminario "Innovar para crecer: El gran desafío de la década que se incia" organizado por el Consejo Nacional de Innovación para la competitividad.

1. Human Capital for Innovation and Competitiveness in Chile What Next? Michael Crawford The World Bank Santiago, January 22nd, 2010

2. Figure 1. Average PISA 2006 Math Scores and per Capita GDP, by Country

3. The Race Between Education and Technology “The authors skillfully demonstrate that for more than a century, and at a steady rate, technological breakthroughs — the mass production system, electricity, computers — have been increasing the demand for ever more educated workers. And, they show, America’s school system met this demand, not with a national policy, but in grassroots fashion, as communities taxed themselves and built schools and colleges.” --The New York Times, October 4,2008

4. Why Did the US do Well in the 20th Century in the Race between Education and Technology Two percent real productivity growth for 100 years; 7x GDP; large and relatively open market 1900-45: High School movement prepared large numbers of individuals to assume quasi-managerial jobs that emerged through industrialization 1946-76: When the challenges became more complex (post WWII), the GI Bill provided a second wave of more advanced HC 1900-76: Wage differentials decreased because provision did not lag demand 1976-present: Supply of high quality HC plateaued in the 1980’s, reigniting large wage differences

5. Where is Chile in this Race? A few new sectors (Salmon, Fruit, Wine, Processed Foods) added almost 10B USD to GDP – [4% of output] but while relying mostly on knowledge embodied in capital, not in people. Growth based on “low hanging fruit.”

6. Chilean Growth Spurt (1985-98)Was Natural Resource Based

7. Efficiency Should Precede Innovation

8. Do Returns to Higher Education Reflect Productivity or Rent? Return on a year’s additional education by type of education (%) Source: based on Mizala & Romaguera (2004) for1990-2000; www.futurolaboral.cl for 2003 and 2006

9. Is Tertiary Education Compensating for Weaknesses in Basic Education? Overall learning achievement is low (PISA 430) Tertiary education makes up for poor development of cognitive skills at secondary level TE Grads earn high salaries because skills are scarce Decent returns can be earned without risk, firms do not have abundance of skills needed to innovate/expand Risk aversion by entrepreneurs lowers the demand for skills

10. Reaching Long-term goals depend on mitigation of disconnects in productivity

11. Three Main Questions What is Chile doing right in HCP? Where can Chile do better? What should the priorities be for the next 5 years?

13. Significant efforts to improve primary and secondary –

14. Significant investments in human capital (tertiary education, adult education and life-long learning)

15. Important attempts to create a qualifications framework

17. What Can Chile Do Better? Improve PISA and TIMSS scores as an indicator of success for basic and secondary education policy; Vice Minister for Tertiary Education/Research– strengthened ability to lead policy implementation Shorten duration of university degree programs Emphasizes CFT/IPs and create pathways for life long learning Keep the spotlight on accreditation as a true driver of quality within tertiary education. Strengthen the financial rewards to efficient, high quality tertiary institutions Monitor closely delinquency and default rates as students begin to enter repayment to protect the funding base of the CAE; Encourage defacto profit-making by private universities Clarify CONICYT’s mandate to support relevant R&D

18. Gaps in Knowledge for Policies What is driving job creation? Who is hiring graduates and why: CFTs/Ips/Universities – by sector? Are tertiary graduates adding value? What are the employment and educational profiles of EMTP and ESHC graduates ? Can young people with good ideas start businesses? Will certification of labor competencies improve productivity? What Impacts have policy pilots initiatives had?

19. Where is the HC Going? Futurolaboral is improving the availability of information, but the sector understanding of where HC is employed is still very partial

20. Learning from Experiments MECESUP Chile Califica Labor Competencies

21. Priorities Going Forward Improve basic education as a gateway to all other gains Increasing labor force skills – adult education and certification of labor competencies Document what has worked in Chile Califica and FC Emphasizes the role of CFTs/IPs and pathways to higher degrees Accreditation, student aid, and community college model Stronger Mineduc for tertiary and research policy Integrate MECESUP, BCP and CONICYT policies Revitalize Accreditation Increase Performance based funding and reward efficient universities Take Mission-related research seriously – decrease investigator-driven research