After a review of the State of the World --societal, environmental and economic-- we give some data about the Cyprus economy and explain why Innovation is the Way.

1. Innovation, Competitiveness and
Sustainable Wellbeing
Stavros A. Zenios
President of UNICA
University of Cyprus

2. Outline
The State of the World
The State of Cyprus
Competitiveness and Innovation
Social and Human Capital
Geography is Alive and Well

3. State of the World: social
Constructed uncertainty
Technological innovation
Complex interconnectedness
Social reflexivity
Post-traditional societies
(Anthony Giddens, Beyond Right and Left)

4. State of the World: environment
Global ecological footprint: 1.5 planets earth
“At the current pace of population growth and
consumption, by the year 2030 we will need 2 planets
earth to sustain us. And of course we have only one.”
Ecologicalfootprint of regions:
Mediterranean nations need 3 Mediterranean seas
Cyprus ???
(Global Footprint Network)

5. Το Χρυςοπράςινο Φύλλο

6. State of the World: environmental
World Bank Adjusted Net Savings

7. CYPRUS Adjusted Net Savings
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
30.00
25.00
20.00
Axis Title
15.00
10.00
5.00
0.00
-5.00
POLAND Adjusted Net Savings
30.00
20.00
10.00
0.00
-10.00
-20.00
7
-30.00

8. State of the World: sustainability
Club of Rome--MIT
Limits to Growth,
1970’s

9. Since 1980’s
Corrections =
increasingly more costly
No correction =
Collapse
9

10.  Hysteresis
 Societal attention deficit
 Social choices
 Lack of know-how
Collapse Trap
10

11. State of the World: economy
“World economy is undergoing seismic shifts.
This is partly because of the success in increasing
productivity in manufacturing, so that a small fraction of
the population can produce all the toys, cars and TVs that
even the most materialistic and profligate society might
buy” (Joseph Stiglitz, Freefall, 2009)
Huge trade imbalance EAST-WEST.
Manufactured goods automated-no job creation.
Manufacturing related SERVICES exacerbate the problem.

12. The State of Cyprus
 300% GDP private debt
 +70% GDP public debt
 Competitiveness on a ride 34….40….50….
 Oversized banking sector

13. The vicious circle of failures
(In Mari and elsewhere)
Ambivalence
Lack of self
Hesitation
confidence
Incompetence

14. The virtuous circle
(of our future)
Self confidence and
identity

15. Invictus
I am the master of my fate:
I am the captain of my
soul.
William Ernest Henley (1849-1902)

16. Innovation
 Ability to anticipate and adapt
 external and internal changes,
 environmental, social and economic.
Construct uncertainty Deconstruct uncertainty
Innovation vs Tradition
16

17. Competitiveness and Innovation
High value added from innovation
Natural resources
Energy
Health-aging
Multiculturalism and globalization
17

18. Shit happens –
Innovation is planned
Knowledge Innovation Economic wellbeing
Knowledge workers
Knowledge has “mass”
“Constructed advantage”
Make it stick:
Knowledge Regions
18

19. The Triple Helix
Universities
Government
Industry

20. Factors of success for knowledge regions
Innovative sectors of economic activity
Strong forces of innovation in all organizations
Appreciation of a culture of knowledge
Free flow of information
Significant support for creative activities
Strong ties between the arts and culture,
with scientific and technological knowledge
Significant percentage of the work force
engaged in innovative activities
Active participation of citizens in shaping the
urban environment and its special character

21. Social Capital
TRUST
Honesty
Keeping promises
Reliability in performing duties
Professionalism
Reciprocity
Values have economic value added

22. Social Capital: Role of the Humanities
Technocratic and Humanistic Education
Practical education creates HUMAN capital
Study of the humanities creates SOCIAL capital
Jared Diamond’s trap?

23. Geography is alive and well!
Most Creative
Forbes
wiredclass list of
cities
most attractive cities
 Austin, TX, Dublin in Ireland, West Jutland in DK,
 Route 128 in Boston, Silicon Valley in CA
 Brescia and Como in N. Italy
 Lefkosia Knowledge Region

24. Conclusion:
Innovation is the way
 Karl Marx
“Society poses itself only such problems
as it can solve”
 John F. Kennedy
“Our problems are man-made,
therefore they can be solved by men”
 Stavros A. Zenios amendment
“Our problems are man-made,
therefore they can be solved by women”