The paper will discuss about 'Regional Human Resources Development Strategies for Innovation, Competitiveness and Social Inclusion' on the basis of the RESAP model. The full text was published as a tilte of "Korea: Proposal for a New Type of Partnership" in the chapter 9 of the book, "More than Just Jobs", OECD, 2008.

1. Regional Human Resources Development
Strategies for Innovation, Competitiveness and
Social Inclusion
Prepared for the
KLI-OECD
International Conference on Training Strategies for Regional
Competitiveness and Inclusion through Employment
by
Lee, Hyo-Soo
Professor of Yeungnam University, Korea
President of the Korean Labour Economic Association
12 October 2005
Cosmo Hall-CCMM Building, Seoul, Korea

2. Contents

Human Resource Development (HRD) & Vocational
Ability Development (VAD)

Paradigm Shift and Basic Concepts of Vocational
Ability Development System (VADS)

Vision and Basic Direction of VADS

VADS per Life-cycle and Strategies for Fostering
Knowledge Workforce

Importance of the Innovation Cluster and Its VADS

VADS for the Vulnerable and Social Inclusion

Conclusion

3. Shift in Paradigm

Economic Environment and Order:
– Industrial Society → Knowledge Information Society (KC)
– Localized Market → Global Market (Speed, Flexibility)
– Young Society → Aging Society (New Welfare Economy)

Economic Policy & Competition Strategies:
–
–
–
–
–
Macroeconomic Policy → Labor Market Policy
Central Gov’t Initiative → Regional Governance Initiative
Comparative Advantage → Competitive Advantage
Mass Production System → Flexible Production System
Price Competition Strategies → Quality Competition
Strategies

4. Shift in Paradigm (Cont.)

Labor Market and Social Policy:
–
–
–
–

Flexible Labor Market → Dynamic & Healthy Labor Market
Unemployment Policy → Unemployment Prevention Policy
Employment Security Center → Learning & Job Information Center
Low Road Strategies → High Road Strategies
Vocational Ability Development Policy:
–
–
–
–
–
–
Goals: Technical Manpower → Fostering of Knowledge Workers
Subject: Employees & Unemployed → All in their Productive Age
Method: Skill Training → Vocational Ability Development
Governance: Central Initiatives → Regional Initiatives & Partnership
Institutes: Training Centers → Univ., Colleges and Training Centers
Expected Results: Low Skill Equilibrium → High Skill Equilibrium

5. New Vision for Korean Economy: RESAP

RESAP : Regional Economic & Social Advancement
Partnership
– Why Regional Initiative?
@ Innovation Cluster and Social Inclusion fully Effective on a
Regional-level
– Why Should Economic & Social Advancement be pursued
simultaneously?
@ Competitiveness & Social Inclusion
– Who and How operate RESAP?
@ Regional Governance, Partnership

6. Vision & Directions of VADS
Vision
RESAP
RESAP
Regional Economic and Social Advancement Partnership
Regional Economic and Social Advancement Partnership
Mission
DHLM
DHLM
Dynamic and Healthy Labor Market
Dynamic and Healthy Labor Market
Goals
Strategies
Competitive advantage Overcome asymmetric
Competitive advantage Overcome asymmetric
Job creation
information
Job creation
information
VADS for
VADS for
innovation clusters
innovation clusters
LJIC
LJIC
Social inclusion
Social inclusion
VADS for
VADS for
the marginalized
the marginalized
Building RHRD cluster
Building RHRD cluster
Knowledge workforce and vocational ability development per life cycle
Knowledge workforce and vocational ability development per life cycle

7. Governance of VADS
Departments
of the
government
MOL
LJIC
One stop
center
Project
Application
Metropolitan
RESAB
Financial
Support
RIS
Evaluation
& audit
Project & Policy
Review
LCC
KCC
ICC
Project
Development
Project
Development
Project
Development
Wide-area, City
RESAB
LJIC
One stop
center
LJIC
One stop
center
LCC
KCC
ICC
County
RESAB
LCC

8. Functions of LJIC :
Individual
Individual
LS
LS
VAD
VAD
JB
Counseling
Counseling
CP
CP
TB
TB
Business
Business
VAT
VAT
One-Stop Service Center

9. Four Stages of
Vocational Ability Development per Life-cycle
Polytechnic
Polytechnic
colleges
colleges
Workers
Workers
Universities
Universities
Ordinary & technical
high school
Junior
Junior
colleges
colleges
Aged (Retired)
Aged (Retired)
Basic workforce
Basic workforce
development
development
Job training
Job training
centers
centers

10. Vision and Strategy of
RHRD Cluster
Vision and Application
Contents
VISION
* International standard of knowledge competitiveness by
fostering knowledge workforce
* Building system enabling everyone to develop vocational ability
Mission
Build RHRD cluster
3Cs Strategies
Customization, Competitiveness, Collaboration
Governance
Knowledge
Competitiveness
Council (KCC)
Build closely-knit system of cooperation of RHRD (vertical and
horizontal) and realize 3Cs
Basic Workforce
Committee
Build and implement strategy for fostering basic competencies
for knowledge workforce
Council of colleges
Cooperation among colleges, industry-academia and
educational institutions per level and realization of 3Cs
Council of
universities
Realize 3Cs by building a vision university for building a system
of cooperation among universities

11. Establishment of a Vision University and
Phases of Intra-regional Integration between
Universities
HIGH
5.Joint Degrees
Phases of Integration
4.Educational Integration
3.Educational Cooperation
2.One Common Course Catalogue
LOW
1.Web site
LOW
Form of Cooperation
HIGH

12. VADS per Life-Cycle:
Conceptual Chart for Employee Job Skills Development
Application for
VAD grants
VAD grants
HRD
certification
FLC
FLC
Labor-mag’t
Labor-mag’t
partnership
partnership
IP
IP
MOE, MOL,
MOE, MOL,
MOCIE, SMBA
MOCIE, SMBA
Support specialized
project
Prospectus for
specialized
project
Academia industry partnership
Tuition (including VAD grants)
HRD Cluster
HRD Cluster
Univ., Colleges,
Univ., Colleges,
Vocational ability development
training center
training center
VAD demand information
HRD report
VAT, Consulting,
VAD program
information
LJIC
LJIC
VAD demand
information
VAD program
information

13. VADS per Life-Cycle:
Conceptual Chart of VADS for Retired, Middle-age/Elderly
Application for
VAD grants
VAD coupon
IP
IP
MOL, MOHW
MOL, MOHW
Payment for coupon
VAD coupon
VAD coupon
Retired
Retired
Middle-age &
Middle-age &
Elderly person
Elderly person
Vocational ability development
VAD demand information
HRD report
VAT, Counseling,
VAD program
information
LJIC
LJIC
HRD Cluster
HRD Cluster
Univ., Colleges,
Univ., Colleges,
training center
training center
VAD demand
information
VAD program
information

14. VADS for Innovation Cluster:
GALIC Model for Innovation Clusters
Factors of
Success
Contents & Functions
Actors, Basic Principle
Governing organization which
establishes and executes
vision/strategy/policy
Networking & partnership
VP
Provide cluster vision, foster
knowledge workforce, R&D provide
(basic & source technology)
Univ., Research Institutes,
other HR Institutes
IP
Create innovation milieu, provide infra
to support VP & PP, provide mngt.
& legal services (SP), provide
capital (CP)
Gov., Local gov., Financial
Institute, NGO, Venture
Capital, Mngt Support
Center
PP
Producer of goods & services
Firms, Core/linked firms,
forward/backward linkage
effect
SO
Establishment and integration of role
& function of innovation actors
Univ., Local gov., Core firms,
RIS etc.
Governance
Actors'
Partnership

15. VADS for Innovation Cluster:
GALIC Model for Innovation Clusters
Localization
A local unit of economic activity,
grouped together in close
proclivity to ensure easy
geographical access to uses
and actors
External effect, specialization effect
based on division of labor,
minimization of transaction
costs based on division of labor
Innovation
Milieu
Culture of learning & exchange,
culture of competition &
cooperation, entrepreneur
spirit, culture of innovation
Spread of innovation and
synergistic effect, RIS, NGO
Cluster
Convergency
Convergence of industrial cluster,
Principles of division of labor and
RHRD cluster and R&D
specialization, network effect,
clusters, convergence of
forward/backward linkage effect
technology

16. VIPS Model
Partnership between Actors of Innovation
VADS for Innovation Cluster:
VP
VP
SO
SO
IP
IP
(CP,SP)
(CP,SP)
PP
PP

17. VADS for Innovation Cluster:
New Company Creation Model
IP(SP)
VP
VP
Univ. (knowledge
Univ. (knowledge
workforce, R&D)
workforce, R&D)
Company R&D
Company R&D
Public R&D
Public R&D
Individual ideas
Individual ideas
(Know-how of business & Marketing,
Patent application)
SO
Connect (VP, SP, CP, IP)
PP
PP
(New Company
(New Company
Creation))
Creation
IP(CP)
(Grants, Engel, Venture Capitals,
Public Funds, Foundations)

18. VADS for Innovation Cluster:
Cluster Convergency Model
Industry Cluster
Industry Cluster
Forward &
backward network,
Related industry
R&D Cluster
R&D Cluster
A-A network
Cooperation between
academia & industry
Cluster
Cluster
Convergency
Convergency
RHRD Cluster
RHRD Cluster
A-A network
Cooperation between
academia & industry

19. VADS for the Marginalized: Conceptual Chart of
Job Skills Development for Irregular Workers
Application for
VAD grants
VAD coupon
IP
IP
MOL
MOL
Payment for coupon
VAD coupon
VAD coupon
Company
Company
Irregular worker
Irregular worker
Vocational ability development
VAD demand information
HRD report
VAT, Counseling,
VAD program
information
HRD Cluster
HRD Cluster
Univ., Colleges,
Univ., Colleges,
training center
training center
VAD demand
information
LJIC
LJIC
VAD program
information

20. VADS for the Marginalized: Conceptual Chart of
Job Skills Development for the Unemployed
VAD coupon
Unemployed
Unemployed
Vocational ability
development
Report unemployed status
VAD demand information
HRD report
Coupon, VAT, Counseling,
VAD program information
LJIC
LJIC
HRD Cluster
HRD Cluster
Univ., Colleges,
Univ., Colleges,
training center
training center
VAD demand information
Payment for coupon
VAD program information
Coupon

21. Conclusion

RESAP as New Vision for Competitiveness and Social Inclusion

RESAPF
– Regional Governance Initiatives (Innovation, Bottom-up)
– Economic Advancement (Competitiveness) & Social Inclusion
– Partnership between the Actors of Innovation

Governance of RESAP: RESAB
– KCC (Knowledge Competitiveness Council)
– ICC (Innovation Cluster Council )
– LCC (Learning Commuinity Council)

Dynamic & Healthy Labor Market, LJIC

VADS
– VADS per Life-cycle and Strategies for Fostering Knowledge Workforce
– Importance of the Innovation Cluster and Its VADS
– VADS for the Vulnerable and Social Inclusion