Project-economy approaches of Higher Education Institutions

(1)

Think Tank of Deutsche Bank Group

Project-economy approaches of

Higher Education Institutions…

… for more prosperous and purposeful regional development

Dr. Ingo Rollwagen

Senior Analyst

Higher Education in Regional and City Development:

For Fairer, Stronger and Cleaner regions

OECD Conference

February 10

th

, 2011

(2)

We…



…provide foresight for Deutsche

Bank and its clients´ strategy

development and decision-making



…analyze the economic, social,

political & technological environments

– … with a long-term, “glocal” perspective

– … in an interdisciplinary manner

– … using a broad spectrum of concepts

and tools



…especially covering

knowledge-based and intellectual value-creation

activities – education & training as

emerging sectors of value creation

DB Research provides foresight

Directed prognoses

Alternative futures

Qualitative

analyses

Quantitative

analyses

Regression based forecasts Trend projection Scenario analysis GDP risk models Short-term GDP forecast tool Systematic societal analysis Long-term GDP forecast tool

(3)

DBR’s dynamics map to understand structural changes

Opening of work and society Process virtuali- sation in net- works Global networking in business and politics

Growing scarcity of natural resources Lengthening of life span Conquest of smallest structures Fragmentation in societies Growing strength of emerging markets

Change in business culture

and value creation patterns Differentiation in

consumption

Criminalisation Development of

the knowledge base

Shaping the politico-legal framework

Tapping the social potential

Dynamic (future development uncertain) Core dynamic (future development uncertain) Trend dynamic (future development predictable)

(4)

Structural change – Change of the nature of value-creation

processes & structures

Growing strength of emerging markets

China and India grow hugely in importance

Emerging markets gain increasing importance Growing international

economic imbalance Growing scarcity of

natural resources Climate change Environmental protection Environmental awareness Environmental services Shortage of high-quality water

From farmer to energy supplier Energy diversification Depletion of fossil fuels

Depletion of production-critical raw materials More regenerative energies Conquest of smallest structures

Convergence of R&D fields

Biotechnology Micro and nano technology

Global networking in business and politics

Services across borders

Stronger differentiation of international division of labour Presence of foreign service providers

Transnational companies gain increasing importance Concentration of companies

into global industries

Global institutions gain more influence More international

coordination Markets deregulated at the national level

Fragmentation in societies Pluralisation of values Diverging incomes Differentiation in mobility More flexible time management Changed lifestyles, family structures

Gulf in skill levels More religiosity Polarisation children vs. no children New affinities Lengthening Life span Health / body consciousness Sport a growth market Food quality

Healthcare sector grows Body tech

Economisation of the healthcare sector Medical care Ageing populations Opening of work and society Growing urbanisation

Labour migration increases

More flexible career paths

Women gain more importance in employment Process- virtuali- sation in net-works Rising interactivity in media consumption Spending on communication Virtualisation of organisational and market processes e-disintermediation Processor / memory capacity Integration of networks and databases Electronic networks more

pervasive and better

Grid computing Ambient intelligence Broadband infrastructures Always on

More risky

More ´glocal´

More specialized

& creative

More collaborative/

frequently with

customers/partners

Faster/temporally more

flexible

(5)

…more glocal

…smarter; more specialized

…be more open; intensify local and global

partnering

Value-creation activities

getting…

… develop a more broad temporal

repertoire with mid & long-term view

…collaboratively; more frequently

with partners, peers & citizens

…more temporally flexible/faster

… more risky

Regions/Cities should…

…foster smarter infrastructures concerning

information, mobility of goods and people,

health, buildings & creativity

… foster financial resilience, financial literacy

& entrepreneurship

…develop more open governance structures

for more open innovation with more

partners and innosumers

Page 5

(6)

…Higher Education Institutions (HEIs) also challenged

by structural change

Field

Dynamics

1. Institutional and regulatory

settings



Global reach and local requirements – Integration of

research activities and education of HEIs required



More autonomy for higher education institutions



More private institutions & universities of applied sciences



More structured governance parameters and institutions



Races to excellence on a regional, national and

international basis – other degree structures emerging



More diversified sources of income – third-party funds

more important

2. Faculty



More faculty and administrative personnel

to cope with the expansion in higher education

3. Learners/Students



More and other (adult) students

4. “Educational products”



Curricular changes – convergence and integration of more

specialized bodies of knowledge



Other, new forms of learning being developed – education

technology & software as an innovation field

(7)

If challenges are ahead, collaboration gains ground…

Project-economy approaches of Higher Education

Institutions & regions for more prosperous development

For regions/cities becoming… HEIs and regions together start to…

…fairer/more equitable



…build up more intellectual capital to counter the scarcity of

skilled personnel in innovative fields (like e-mobility, health)



…provide more personalization – improving access, equity and

quality for more and other (adult) prospective students

…more attractive



intensify networking to profile cities as “higher education cities”

making them more attractive (e.g. German National Association

for Student Affairs, German association of cities and German

Rectors conference)

…smarter

…more sustainable/greener

..more innovative, explorative



…form consortia, develop business models and engage in

third-party research and application projects for field testing new

mobility solutions integrating lead users (innosumers) and

facilitating social acceptance by service learning activities



enhance the potential of educational processes with integrated

educational products based on the development of electric

mobility-solutions and more campus-management (e.g. smart

wheels project)

(8)



The complementarities of challenges and the definition of goals and time

horizons have been important to form `expeditions` of heterogeneous actors:

Cities challenged to be more sustainable – economically and ecologically; HEIs challenged to develop

new knowledge and curricula; companies anticipating skilled personnel shortages



Project-economy approaches have been driven by pioneers and peers,

companies as promoters and financiers have been important



The local context, social capital and the embeddedness matters



The set-up of consortia for projects, partnerships, platforms and alliances and

the definition of legal and operational details as well as the task division within

these have been facilitated by peer-effects



HEIs are mainly in the role of the supplier of knowledge and research-based

consulting for other players



The nature of third-party and project funding for HEIs tends to behold

relatively short-term orientations, continuity still lacks in many projects

Reflections on existing initiatives of project-economy

approaches for more prosperous regions

(9)

Project-economy approaches of Higher Education

Institutions & regions for more prosperous

development…still a frontier/room for improvement

For regions/cities becoming… HEIs and regions together could think of…

…more prosperous

(economically)



…setting up more local interregional/international projects



…partnering for using synergies of research organizations & HEIs



…consistently profiling their regions with peers from industry



…providing more perspectives with new forms of science-industry

collaboration, venturing activities and employment (e.g. MaRS

discovery centre Toronto)

…stronger/more financially

resilient



…experimenting with new financial solutions for integrating more

different actors leveraging investments & sharing financial burden



experimenting with new forms of taxation, technology transfer and

entrepreneurship schemes

…smarter



…supporting and professionalizing the development of local

governance structures and local decision-making by training

(learning journeys)

…more innovative,

explorative



co-developing of new technologies and new applications and

solutions in sustained partnerships

(10)

Outlook – Challenges to make regions and HEIs more prosperous (1)



Products

– More differentiated “products” – more combinations of tangible goods and intangible products,

so-called hybrid products and integrated service solutions of regions and HEIs needed especially

when it is about smarter infrastructures



Paradigms

– More work on paradigms and the standardization of technologies and practices, platforms &

applications needed



Pricing

– More differentiated pricing and gain-sharing arrangements and forms of employment needed



Persons

– More subtle educational products and courses needed to re- and up-skill more people in coming to

grips with innovative solutions; more projects for integrating consumers needed transforming them

into “innosumers” who co-create & use services also for conspicuous consumption



Pioneers and promoters

– More support and new forms of employment and institutional schemes needed for pioneers and

promoters/entrepreneurs in HEIs and regional settings

(11)

Outlook – Challenges to make regions and HEIs more prosperous (1)



Projects/Partnerships/ Peers/Partners and Platforms

– Many more explorative development & implementation projects needed

– More structured partnerships with more heterogeneous partners and peers from industry needed

– Management of multi-project setting, programs, partnerships and platforms, also in modified forms

of sustained collaboration (alliances, joint ventures...) needed

– Platforms and other forms of institutionalization needed — not always centers instituted

IN

the HEI,

but structures with an own business model and sound structures for managing projects providing a

platform, finance, contacts, centers (e.g. MaRS)



Processes

– More continuous processes with follow-up projects and sustained impetus needed

– More open processes, more integration of other communities needed

– More accountability measures and efficiency considerations needed in processes



Purposes/Parameters/

P

erformance (Indication/measurement)

– Non-profit, not-for-profit, for-profit activities need to be increasingly mixed to diversify revenue

streams in regional project settings

(12)

Thank you for your attention!

Looking forward to your remarks and questions!

Further questions:

ingo.rollwagen@db.com

(13)

The above information does not constitute the provision of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do not necessarily correspond to the opinions of Deutsche Bank AG or its affiliates. Opinions expressed may change without notice. Opinions expressed may differ from views set out in other documents, including research, published by Deutsche Bank. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the information given or the assessments made.

In Germany this information is approved and/or communicated by Deutsche Bank AG Frankfurt, authorised by Bundesanstalt für Finanz-dienstleistungsaufsicht. In the United Kingdom this information is approved and/or communicated by Deutsche Bank AG London, a member of the London Stock Exchange regulated by the Financial Services Authority for the conduct of investment business in the UK. This

information is distributed in Hong Kong by Deutsche Bank AG, Hong Kong Branch, in Korea by Deutsche Securities Korea Co. and in Singapore by Deutsche Bank AG, Singapore Branch. In Japan this information is approved and/or distributed by Deutsche Securities Limited, Tokyo Branch.In Australia, retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial product referred to in this report and consider the PDS before making any decision about whether to acquire the product.

Die vorstehenden Angaben stellen keine Anlage-, Rechts- oder Steuerberatung dar. Alle Meinungsaussagen geben die aktuelle Ein-schätzung des Verfassers wieder, die nicht notwendigerweise der Meinung der Deutsche Bank AG oder ihrer assoziierten Unternehmen entspricht. Alle

Meinungen können ohne vorherige Ankündigung geändert werden. Die Meinungen können von Einschätzungen abweichen, die in anderen von der Deutsche Bank veröffentlichten Dokumenten, einschließlich Research-Veröffentlichungen, vertreten werden. Die vorstehenden Angaben werden nur zu Informationszwecken und ohne vertragliche oder sonstige Verpflichtung zur Verfügung gestellt. Für die Richtigkeit, Vollständigkeit oder Angemessenheit der vorstehenden Angaben oder Einschätzungen wird keine Gewähr übernommen.

In Deutschland wird dieser Bericht von Deutsche Bank AG Frankfurt genehmigt und/oder verbreitet, die über eine Erlaubnis der Bundes-anstalt für Finanzdienstleistungsaufsicht verfügt. Im Vereinigten Königreich wird dieser Bericht durch Deutsche Bank AG London, Mitglied der London Stock Exchange, genehmigt und/oder verbreitet, die in Bezug auf Anlagegeschäfte im Vereinigten Königreich der Aufsicht der Financial Services

Authority unterliegt. In Hongkong wird dieser Bericht durch Deutsche Bank AG, Hong Kong Branch, in Korea durch Deutsche Securities Korea Co. und in Singapur durch Deutsche Bank AG, Singapore Branch, verbreitet. In Japan wird dieser Bericht durch Deutsche Securities Limited, Tokyo Branch, genehmigt und/oder verbreitet. In Australien sollten Privatkunden eine Kopie der betreffenden Produktinformation (Product Disclosure Statement oder PDS) zu jeglichem in diesem Bericht erwähnten Finanzinstrument beziehen und dieses PDS berücksichtigen, bevor sie eine Anlageentscheidung treffen.

(14)

Arbo, Peter / Benneworth, Paul (2007): Understanding the regional contribution of Higher Education Institutions : A

literature review. (Education Working Paper No. 9). Paris.

Hofer, A. and J. Potter (2010), “Universities, Innovation and Entrepreneurship: Criteria and Examples of Good Practice”,

OECD Local Economic and Employment Development (LEED) Working Papers, 2010/10, OECD.Paris.

OECD (2009): Higher Education to 2030 (Volume 2): Globalisation. Paris.

OECD (2008): Higher Education to 2030 (Vol. 1): Demography. Paris.

OECD (2008): Trends Shaping Education - 2008 Edition. Paris.

OECD (2008): Open innovation in global networks. Paris.

OECD 2007: Higher education and regions: Globally competitive, locally engaged. Paris.

Hofmann, Jan / Rollwagen, Ingo / Schneider, Stefan (2007): Germany 2020 – New challenges for a land on expedition.

Deutsche Bank Research, Frankfurt. Current Issues No. 382.

Reichert, Sybille (2006): The Rise of knowledge regions: Emerging opportunities and challenges for universities. European

University Association. Brussels.

Rollwagen, Ingo (2010): Project economy approaches for higher education: diversifying the revenue base of German

universities. Forthcoming in: Higher Education Management and Policy, Paris.

Rollwagen, Ingo (2007): Policies for Profit and Progress? Education Policy Trends in the United States. American Institute

for contemporary German Studies (AICGS). Washington. Issue Brief 19.

(15)

Cases



Smart wheels project for developing

intelligent electro-mobility solutions for the

model region Aachen

: consortium of

FEV Motorentechnik GmbH, RWTH

Aachen (Forschungsinstitut für Rationalisierung (FIR),

Forschungsgemeinschaft für Elektrische Anlagen und Stromwirtschaft e.V.

(FGH), Institut für Hochspannungstechnik (IFHT), Institut für Kraftfahrzeuge

(ika), Institut für Stromrichtertechnik und Elektrische Antriebe (ISEA), Lehrstuhl

für Verbrennungskraftmaschinen (VKA)), MENNEKES Elektrotechnik GmbH &

Co KG, regio iT aachen Gesellschaft für Informationstechnologie mbH,

Stadtwerke Aachen Aktiengesellschaft

, InnoZ



TU (Technical University of Berlin) for field tests of electromobility solutions



„Higher education Cities“ of the

German National Association for Student

Affairs, German association of cities and German Rectors conference