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Knowledge Based Society Development in Slovakia

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Title: Knowledge Based Society Development in Slovakia


1
Knowledge Based Society Development in Slovakia
  • Peter Weber
  • General Manager, HP Slovakia

2
Table of Contents
  • What are the key topics of todays EU?
  • Root causes of current EU weakness
  • Lisbon Strategy 2005
  • Knowledge-based economy
  • Building a knowledge economy in Slovakia SWOT
  • Possible scenarios of Slovakias development as a
    knowledge economy
  • Digital literacy
  • Slovakia and a knowledge-based economy
  • Strategy of Slovakias Competitiveness by 2010
    National Lisbon Strategy
  • National Program of Reforms in the Slovak
    Republic for the period of 2006 2008
  • MINERVA Mobilization of Innovations in the
    National Economy and Development of Scientific
    Educational Activities

3
What are the key topics of todays EU?
  • Knowledge and innovation for growth and higher
    competitiveness
  • Europe as a world partner in globalised economy
  • Europe more attractive place to invest and work

  • Security
  • Enlarging the Eurozone
  • Solidarity and social justice
  • Delivery and better regulations

4
Root causes of current EU weakness
  • Having the extraordinary resources at its
    disposal, the EU has not been able to transform
    them into a competitive advantage
  • Europe is gradually developing to a level of
    social state which is not bearable in a
    globalised economy
  • First five years of the Lisbon strategy did not
    lead to progress due to large number of
    priorities (over 100). Member states did not
    implement it
  • The actual needs of the EU and its member states
    were not clearly communicated

5
Lisbon Strategy 2005
  • Overambitious goals are not being fulfilled
  • the situation has worsened compared with USA or
    Japan, the EU struggles in coping with
    globalization challenges, the governments of EU
    countries remain unwilling to focus on principal
    reforms...
  • March 2004 establishment of High-Level Group of
    Independent Experts chaired by former Netherlands
    Prime Minister Wim Kok
  • Kok Report - Facing the Challenge insufficient
    progress most of the EU countries lag behind in
    the majority of progress indicators of
    knowledge-oriented economies necessary
    simplification of the vague and too broad agenda
    with conflicting priorities into five main
    areas
  • Knowledge-oriented society
  • Internal market
  • Improved business environment
  • Creation of an adaptable and inclusive labor
    market
  • Environmentally sustainable future
  • Recommendations in the field of
    knowledge-oriented society
  • to attract and keep top scientists, action plan
    focusing on the reduction of administration
    burdens in the field of immigration and movement
    within EU for world-class scientists and
    researchers, including their families (until
    2006)
  • to make research and development a top priority,
    to establish the European Research Council by
    2005
  • to support innovations

6
Knowledge-based economy
  • Over the last 25 years advanced economies have
    become increasingly knowledge-based. The
    production, dissemination and use of knowledge
    have become a crucial factor for enhancing
    economic growth.
  • Basic definition
  • In a knowledge economy, information and expertise
    as primary sources behind formation of wealth
    replace capital and energy, similarly as the
    latter two replaced land and agriculture two
    hundred years ago.
  • The technological developments in the 20th
    century have transformed the majority of
    wealth-creating work from physically-based to
    "knowledge-based". Today, technology and
    knowledge represent key factors of both economic
    production and economic development.
  • With the global mobility of information and
    labour force knowledge and expertise can be
    transported instantaneously around the world, and
    any advantage gained by one company can be
    eliminated by competitive improvements overnight.

7
Building a knowledge economy in Slovakia - SWOT
  • Strengths
  • Good business environment as a result of economic
    reforms
  • High-quality strategy and action plans
  • Pressure applied by the market and external
    environment
  • Educated labor force
  • Weaknesses
  • Formalities necessary implementation and
    incorporation to the agendas of all ministries
    and governmental/public institutions
  • Education of the public the citizens (as well
    as many entrepreneurs) are slow to understand how
    important further development of a knowledge
    economy is for the quality of their lives
  • Poorly developed e-government
  • Insufficient resources for domestic research and
    development activities
  • Threats
  • Low involvement of population
  • Low digital literacy rate
  • Top political representatives do not understand
    the importance of the issue
  • Population divided into winners and losers
  • Slow progress in the creation of knowledge
    economy insufficient concentration of resources
  • Opportunities
  • The growth of economy and influx of foreign
    investments create a room for further improvement
    of the business environment and concentration on
    the development of a knowledge economy
  • Foreign experience and transfer of know-how
  • Opportunity to use EU funds in order to speed up
    the creation of a knowledge economy

8
Possible scenarios of Slovakias development as a
knowledge economy I
  • Scenario 1 Sleeping beauty
  • Social resources remain scattered
  • Low income groups stay digitally illiterate
  • Educational sector operates under cosmetic
    changes only
  • RD resources are below the level seen in EU
  • Insufficient ICT infrastructure
  • Slow, evolutionary development of a knowledge
    economy
  • Consequences
  • Slovakias advantageous position gained thanks to
    the performed reforms disappears
  • Slovakia fails to establish any major sector that
    would create high added value but rather competes
    by offering cheap labor
  • Digital divide increases, certain portion of a
    society destined to remain poor
  • Nearly all talented people leave the country
  • Slovakia is unable to lower the gap and stays
    behind highly developed knowledge economies

9
Possible scenarios of Slovakias development as a
knowledge economy II-1
  • Scenario 2 Panther
  • Limited public resources are concentrated in
    favor of accelerating the development of a
    knowledge economy
  • The reformed educational sector and RD receive
    funds above the average seen in EU
  • The government stimulates digital literacy among
    low income groups and in individual regions by
    securing high-quality ICT infrastructure,
    high-quality e-government services, public
    education and by simplifying access to ICT
  • In 2010, Slovakia enjoys digital literacy rate
    and quality of education comparable with old EU
    countries

10
Possible scenarios of Slovakias development as a
knowledge economy II-2
  • Consequences
  • Slovakia successfully avoids the trap of
    remaining a source of cheap labor and a country
    of relative poverty
  • Slovakia joins the club of countries boasting
    highly developed knowledge economy
  • The educational sector prepares top experts
  • The number of companies producing their own,
    highly innovational products increases in the
    commercial sector
  • Slovakia turns into a prosperous country
    providing its citizens with living standard
    exceeding the EU average
  • Slovakia is able to rapidly adapt to the changes
    in a global economy

11
Digital literacy in Slovakia
  • Research project of the Institute for Public
    Affairs (IPA)
  • The modern information and communication
    technology is not sufficiently anchored within
    the Slovak society.
  • The digital literacy rate in Slovakia remains
    relatively low. The digital literacy index
    reaches 0.33 of a point.
  • In the future, a continuing slow development of
    information literacy may result in the further
    opening of a gap between the progressive and
    stagnating parts of population and, similarly,
    between Slovakia and the most developed societies
    of the world a social issue
  • The future improvement of digital literacy
    depends, besides other factors, on the motivation
    of individual groups and components of a society
    and on the level of their participation
    necessary further development of the content and
    e-government
  • The problems relating to the informatization of
    society are perceived by the public also as a
    political agenda. According to the great majority
    of people, both government and parliament should
    focus on the issue of making the computers and
    Internet available to the public at large.

12
Digital literacy in Europe
Households with PC, Internet and Broadband
connectivity
Source Eurostat, Graph EurActiv
13
Digital literacy Index
In Slovakia and other CEE/new EU member states -
2003
Zdroj IVO, október 2005
14
Slovakia and a knowledge-based economy
  • Strategy of Slovakias Competitiveness by 2010
    National Lisbon Strategy
  • National Program of Reforms in the Slovak
    Republic for the period of 2006 2008
  • MINERVA Mobilization of Innovations in the
    National Economy and Development of Scientific
    Educational Activities

15
Strategy of Slovakias Competitiveness by 2010
  • Strategy of Slovakias Competitiveness by 2010
    the National Lisbon Strategy was prepared by the
    Slovak Ministry of Finance in November 2004.
  • The Strategy is based on two pillars
  • successful completion of structural reforms and
    preservation of their results
  • systematic focusing on the fulfillment of the
    Lisbon Strategys development section
  • The document has laid foundations for further
    development of the ICT sector in Slovakia
  • IT companies operating on our market are prepared
    to continue with the expansion of their
    activities
  • Universities are extending education in the field
    of ICT
  • Governmental strategies are concentrating on
    establishing a business-friendly environment,
    which shall in turn assist in the creation of new
    IT companies

16
MINERVA and the National Program of Reforms
  • The MINERVA action plan and the National Program
    of Reforms are based on the Strategy of
    Slovakias Competitiveness by 2010 as a response
    to the challenge raised by Kok Report for
    preparation of national action plans and
    programs
  • Their common goal is to enable Slovakia, as
    quickly as possible, to catch up with the living
    standard seen in the most developed countries by
    means of dynamic, long-term economic growth.
  • Support EU funds, state budget and also private
    sector
  • MINERVA - four areas of developing a knowledge
    economy
  • Information Society
  • Innovations, science and research
  • Investments in human resources and education
  • Business environment

17
MINERVA - Information Society
  • For faster informatisation it is necessary,
    within a few years, ensure that every citizen is
    digitally literate with access to Internet and is
    aware of InfoSoc advantages.
  • Digital literacy
  • to secure digital literacy for all age and social
    groups of citizens
  • to change tradtional school system into modern
    one, while ensuring that curriculum is in line
    with the needs of society informatisation
  • Efficient e-government and modern on-line public
    services
  • government to lift all the barriers for
    development of e-services provided by private
    companies as well as to introduce up-to-date and
    effective public e-services
  • Major leap in internet penetration from currently
    unacceptable level
  • Access to broadband Internet for everyone, with
    accent on mobile connectivity according to
    household needs and possibilities
  • Public access points

18
MINERVA - Innovations and RD
  • Slovakias priority should be having a broad
    basis of scientists able to conduct and realise
    research on top international level
  • In applied research to secure application of
    innovations via promoting mutual interconnection
    between enterprises and private sector
  • Governmental support for elementary RD must be
    differentiated from applied research, development
    and innovations because of different economic
    values
  • Education and support for top scientists
  • Motivation and support of talents
  • Support for research institutions
  • Research of international quality adequately
    linked to the business sphere
  • RD to be in line with international trends and
    economic needs
  • Efficient public support for business activities
    focusing on development and innovations
  • Public support for creation of innovative
    companies

19
MINERVA - Investments in HR and Education
  • Educational policy should be used as a tool
    against poverty everyone must have access to
    knowledge and education according to his own
    potential
  • Modern educational policy
  • in depth reform of education system, quick growth
    of each level from basic to academic, life-time
    and distance education
  • Achievement of a high employment rate
  • Particular steps to support overall strategy
    high employment rate
  • Successful resolution of demographic challenges
  • Long-term policy for birthrate/natality and
    imigration

20
MINERVA - Business Environment
  • Should support effective competition, which is
    driver of economic growth and contributes to
    creation of new possibilities for innovation and
    development.
  • High enforceability of law
  • conditions for quick and just law enforcement
  • Public institutions as partners, not obstacles
  • Effective public sector towards companies and
    citizens
  • Easy access to the capital market for all
    companies
  • High-quality physical infrastructure and
    services in the network sectors

21
Thank you for your attention
22
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