4th Ph.D. School on Innovation and Economic Development: Globelics Academy 2007

1. CONNECTIVITY AND REWARDSManaging the co-evolution of regional innovation environment in order to attract the global talent 4th Ph.D. School on Innovation and Economic Development: Globelics Academy 2007 Lisbon: 2 May–12 May 2007 Mika Raunio Research Unit for Science, Technology and Innovation Studies (TaSTI) University of Tampere, Finland e-mail: mika.m.raunio@uta.fi gsm: +358 50 327 6364

2. Research question How the globally attractive innovation environment for experts emerges? • What are the key elements? • How do the key elements emerge? • How policy makers may support or steer the development?

3. Receiving countries: Possible positive effects(Guellec & Cervantes 2002) Science and technology • Increased R&D and economic activity due to availability of additional highly skilled workers • Entrepreneurship in high growth areas • Knowledge flows and collaboration with sending countries • Immigrants can foster diversity and creativity • Export opportunities for technology Higher education systems • Increased enrolment in graduate programme/keeping smaller programmes alive • Offset ageing of university professors and researchers Labour market • Wage moderation in high growth sectors with labour shortages • Immigrant entrepreneurs foster firm and job creation • Immigrants can act as magnets for accessing other immigrant labour (network hiring effects)

4. Diversity and talent “Diversity is extremely important especially for following reasons: Firstly, it is important for us to understand the needs of our global customers. We have to correspond the diversity of our customers, so that we are able to answer their requirements. Secondly, diversity increases the creativity of work community. Working with diverse team is not always easy but leads often more innovative results, because different approaches and ways of thinking are utilized. Thirdly, we want to recruit the best experts available, so our recruiting has to be global.” Mr. Hallstein Moerk, Vice President, Head of Global HR, (Nokia)

5. Supply and demand

6. Negative lock-in?

7. Outflow (graduates, experts) Renewing inflow (students) Focus area of this study Utilization (employers) Production (universities) Recharging (society) Outflow (experts) Institutions and geographical borders Processes and elements of human oriented innovative region Renewing inflow (experts)

8. Empirical data • 128 personal interviews (foreign experts in ICT and biotech, foreign spouses, unit and HR managers who recruit foreign experts, civil servants and relocation consultants) • questionnaire with 556 responses (foreign experts ) • 5 personal interviews with top-level executives from global companies (KONE, Nokia, Pöyry, UIAH). • documents

9. Respondents “The most able individuals with high level of self-confidence, will skip higher education and go directly to the market, often as entrepreneurs. They avoid potentially large opportunity cost of spending several years pursuing a career”. (Hvide 2001.)

10. Attractiveness of Finnish city-regions

11. Connectivity and rewards (What are the key elements?)

12. Connectivity and rewards • RIE as selection environment • Social system (network) • Building of global ties and communities • Economic system (market) • Building recruiting channels and career paths • Political system (institutions) • Building fast-tracks and income/services • Co-evolving process

13. Co-evolution of connectivity and rewards(How they emerge?) Institutions Ministry of labour, (Aliens act) Police Directorate of immigration (Policy programme for immigration) information policies and practices (fast-tracks, tax reductions, Fidi-pro) information policies and practices(financing) Connectivity & Rewards Employers HR/DM Recruiting/”Chain migration” Individuals Communities EFA (Expatriate Family Adjusting) networking with employers financing activities supporting services for arrivals

14. Geographical sphere Co-evolutionary process? Global pool of talent

15. Culturing competence • Development competence • Coordination competence Managing co-evolutionary regional development(What policy makers may do?)

16. Contribution for Globelics • Brain circulation. Lively return migration of native born, or “brain circulation”, re-supplies the highly educated population in the sending country and, to the degree that returned migrants are more productive, boosts source country productivity. • Optimal brain drain occurs, according to some economists, when developing countries benefit from the “right” amount of the skilled emigration (not too much, but not too little). The possibility of working aboard for higher wages creates an incentive to pursues education; this may raise domestic educational level and stimulate economic growth.

17. Conclusions • “Connectivity and rewards” define the attractiveness of RIE in global competition for talent. • Role of “human orientation” gain importance in context of globalization of regional innovation environments. • Need to manage “human oriented and global innovation environments” require novel competences from developers (cultural and social competences). • Need to manage multidimensional co-evolving development processes require novel competences from developers and decision makers (constellation and co-ordination competences) • Co-evolutionary approach is worth deeper examination as a tool to understand complex regional development processes (extension to path-dependence and evolutionary approach). • Individual level is increasingly important in development of RIEs and requires understanding of human aspects, social innovations and social engineering in context of RIEs.

18. Connectivity and rewards(Raunio 2007)

19. Approach • Regional economic development and migration are brought together within the framework of co-evolution. • The power of co-evolutionary approach in this context is in its ability of simplify the complex and multi-dimensional processes without losing important nuances. • co-evolution is that the evolution of one domain or entity is partially dependent on the evolution of other related domains or entities or that one domain or entity changes in the context of the other(s). Emphasis on the evolution on interactions and on reciprocal evolution. In human systems, emphasis on the relationship between co-evolving entities. Complex behaviour therefore arises from the intricate inter-twining or inter-connectivity of elements within a system and between a systems and its environment. • In human system, connectivity and interdependence means that a decision or action by any individual (group, organization, institution or human system) may affect related individuals and systems. (Mitleton-Kelly 2003)