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The is the sixth innovation report since the announcement of 'Backing Australia's ability', the Australian government's five year innovation statement. It provides an opportunity to reflect on the achievements of Australian government departments and agencies against the themes of 'Backing Australia's ability', along with their progress in addressing broader national goals through their implementation of the National Research Priorities. The report additionally presents the findings of the third Australian Innovation Scorecard, comparing Australia's innovation performance to that of other countries in the OECD. It thus provides a broader global context for Australia's innovation activities and a means of tracking the nation's progress in an increasingly competitive global economy. Finally, the report outlines the important role that key institutions and strategic planning processes are playing in informing the future of Australian science and innovation and ensuring that Australia remains well-placed to benefit from its investments in the future.

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Dual apprenticeship training is a market-driven form of education at the upper secondary level, taking place in firms as well as in vocational schools. So far, little is known about the impact of the business cycle on the number of apprenticeship programs offered by firms. Using panel-data of Swiss cantons from 1988-2004, we find that the influence of the business cycle is statistically significant, but small in size. Instead, supply of apprenticeship programs is driven to a much greater extent by demographic change. Conversely, the number of first-year high school students is not affected by the business cycle. We find, however, that enrollment increases if the population at age 16 grows, but access to high schools does not become more restricted in times of negative growth.

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This study attempts to explain why the transition to a market economy is skill-biased. It shows unequivocal evidence on increased skill wage premium and supply of skills in transition economies. It examines whether similar skill-favouring shifts in the Russian and US economies are driven by the same set of factors. [The] analysis elaborates on the model of alternative theories of the increased wage skill premium and then evaluates three main hypotheses: skill-biased technological change, the market adjustment hypothesis, and the institutional factor hypothesis. To test these hypotheses, the study uses unique linked employer-employee data that spans the 16 years of the Soviet and transition periods in Russia (1985-2000), with a special emphasis on data quality, measurement errors, and retrospective biases. The main conclusion is that there is no uni-causal and time-invariant explanation for skill-biased changes in wages and employment in the Russian economy. The increased skill wage premium has been driven mainly by institutional factors during the early period and by productivity and technological change during the late transition period, and reinforced by market adjustment of wage ratio to the true differences in labour productivity.

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We examine the dynamic role of education and experience as determinants of wages. It is hypothesised that an employee’s education is an important signal to the employer initially. Over time, the returns to schooling should decrease with labour market experience and increase with initially unobserved ability, since the employer gradually obtains better information on the productivity of an employee. Replicating US studies using data from a large German panel data set (GSOEP), we find no evidence for the employer learning hypothesis for Germany. Differentiating blue-collar and white-collar workers and estimating quantile regressions, however, leads to the conclusion that employer learning takes place for blue-collar workers at the lower end of the wage distribution. We further show, that information on the productivity of an employee is to a large extend private.

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We analyze empirically the effects of urban agglomeration on Italian college graduates' work possibilities as entrepreneurs three years after graduation. We find that each 100,000 inhabitant-increase in the size of the individual's province of work reduces the chances of being an entrepreneur by 0.2-0.3 per cent. This result holds after controlling for regional fixed effects and is robust to instrumenting urbanization. Province's competition, urban amenities and dis-amenities, cost of labor, earning differentials between employees and self-employed workers, unemployment rates and value added per capita account for 40 per cent of the negative urbanization penalty. Our result cannot be explained by the presence of negative large-city differentials in returns to education either. In fact, as long as they succeed in entering the largest markets, young entrepreneurs are able to reap-off the benefits of urbanization externalities: every 100,000-inhabitant increase in the province's population raises entrepreneurs' net monthly income by 0.2-0.3 per cent.

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[This report] is designed to support international engagement by the Australian [vocational education and training] VET sector by articulating some of the opportunities available and also some of the challenges faced. It is designed to encourage a shared vision, and greater collaboration and partnerships, amongst the key stakeholders of the sector. [This report] provides an overview of the Australian VET sector as well as Australia’s international education and training engagement, in order to ‘set the scene’ for the operating environment of the sector. Some key issues in the international education and training arena for the Australian VET sector have been highlighted. [This report] then proposes a range of objectives and strategies to maximise the opportunities available in the period 2007-2011.

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This annual report for 2002-03 contains information about the Department of Education, Science and Training's (DEST's) role, its corporate governance arrangements and management accountability framework, and its performance against the outcomes and outputs framework set out in the 2002-03 Portfolio Budget Statements. The first two chapters contain the Department Secretary's review of the year and an overview of DEST. Chapters three to five report on DEST's performance in achieving the following outcomes: students acquire high quality foundation skills and learning outcomes from schools; individuals achieve relevant skills and learning outcomes from post-school education and training for work and life; and Australia has a strong science, research and innovation capacity and is engaged internationally in science, education and training to advance its social development and economic growth. Chapter six looks at management and accountability arrangements. Included as appendices are: Occupational health and safety; Freedom of information; Payments to advertising and marker research organisations; Discretionary grants; Consultancies; Ecologically sustainable development and environmental performance reporting; Commonwealth disability strategy; Financial statements; Glossary and acronyms; Tables and figures. Show less

The Department of Education, Science and Training (DEST) and the Australian National Training Authority (ANTA) funded a project in 2001 to analyse and report on industry requirements for ‘employability skills’. This project was jointly managed by the Business Council of Australia and the Australian Chamber of Commerce and Industry and was completed in March 2002. Employability skills were defined for the purposes of the project as ‘skills required not only to gain employment, but also to progress within an enterprise so as to achieve one’s potential and contribute successfully to enterprise strategic directions’. The project was commissioned to provide: (a) advice on possible new requirements for generic employability competencies that industry needs, or will need in the forseeable future, since the development of the Mayer key competencies; (b) clear definitions of what Australian industry and enterprises perceive as employability skills and the terminology being used to describe them; and (c) a proposed suite of employability skills and assessment and reporting options. The project also investigated industry reactions to the proposed suite and reporting options and undertook case studies involving a number of large enterprises and focus group research with small and medium-sized enterprises (SMEs). This report is based on a review of Australian and overseas policy and research literature on key employability skills. It clarifies concepts and terminology, analyses the principles and purposes of different approaches to key employability skills, develops a framework of such skills to support the fieldwork aspects of the overall project, and suggests strategies to facilitate the development of these skills more effectively within Australian education and training.

The project final report is indexed at TD/TNC 70.178. The report on detailed case studies with large enterprises is indexed at TD/TNC 70.180 and the report on the SMEs research is indexed at TD/TNC 70.181. Show less

The aim of this report is to help industry, government policy makers and training providers better understand the drivers of skill needs in the agrifood industry and identify the options for meeting those needs. This report provides the findings of a high level review of the skills and workforce issues confronting the agrifood industry and its five industry sectors: food processing, meat, seafood, racing, and rural and related industries. The key drivers of skills needs for the agrifood industry are: development of the regions; worker attraction and retention; demographic change and employment arrangements; consumer and customer service demands; competitiveness and productivity demands; business compliance; innovation; and globalisation. The relationship between these drivers and skill requirements are analysed and conclusions are developed on how changing drivers may impact on the skills base. Participation, attainment and expenditure trends in vocational and technical education are also discussed. Strategies addressing a broad range of issues driving current and future skills and workforce needs, with a focus on the role of training are recommended. Some of these strategies include: utilising existing industry champions to promote the agrifood industry as a preferred career choice for people in regional and urban areas; the provision of incentives such as higher remuneration, better working conditions and flexible arrangments to encourage older and experienced workers to remain on the job longer; developing skills in international business management; creating partnerships with government, industry and communities to strategically invest in infrastructure development; education of the industry on the challenges and opportunities of globalisation, the importance of research and innovation, and the effecient use of new technology in the global marketplace; developing and distributing tools and resources relating to environment, food safety, occupational health and safety risks and sustainability; adopting a futures approach to the development of training packages to better link research and development to competencies; and providing clear information about career paths and job opportunities that enable informed employment and education choices. Show less

One problem with the theory of firm-specific human capital is that it is difficult to generate convincing examples of investment that could generate the sometimes observed large and continuing effects on earnings. Another approach, called the ‘skill-weights’ view, allows all skills to be general in that there are other firms that use each of the skills. But firms use them in different combinations and with different weights attached to them. The skill-weights view not only has aesthetic appeal, but is consistent with the frequently observed large tenure effects. All of the implications of the traditional view are produced by this approach, and there are a number of other implications that distinguish the new view from the traditional one. The empirical evidence already contains some support for the skill-weights view.

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