Commission
Nation of Innovation
Opportunity Plan
Version 2.0
SMART PEOPLE + SMART IDEAS =
NATION OF INNOVATION
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Nos Aruba 2025
SMART PEOPLE + SMART IDEAS =
NATION OF INNOVATION
Commission
Nation of Innovation
Opportunity Plan
Version 2.0
October 12, 2009
The information contained in the paper may be published and copied for educational
and noncommercial purposes, provided the source is acknowledged.
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Content
Preface ...........................................................................................................................3
1. Executive summary....................................................................................................4
2. Background information............................................................................................6
2.1 Introduction..........................................................................................................6
2.2 Challenges............................................................................................................6
2.3 Regulatory and institutional framework ..............................................................7
2.4 Sustainable development .....................................................................................7
2.5 Strengths ..............................................................................................................8
2.6 Opportunities........................................................................................................8
2.7 Innovation ............................................................................................................9
2.8 Present stakeholders...........................................................................................10
2.9 Structure of the report........................................................................................12
3. Aspiration and specific objectives for 2025.............................................................13
4. Social Architecture...................................................................................................14
4.1 Key stakeholders................................................................................................14
4.2 Relationship between these stakeholders (formal and informal).......................15
4.3 The influence stakeholders have on the desired outcome of our opportunity ...15
4.4 The influence stakeholders have on each other .................................................15
4.5 Detailed social architecture................................................................................16
5. Desired outcomes ....................................................................................................24
5.1 Key achievements ..............................................................................................24
5.1.1 Innovative (economic) environment...........................................................24
5.1.2 Highly-developed/knowledgeable human capital.......................................26
5.1.3 Sustainable Technology/ICT networks.......................................................27
5.1.4 Sustainable society......................................................................................28
5.2 Alignment with different sustainability themes and statements ........................29
6. Main stakeholders ...................................................................................................30
7. Actions to be done...................................................................................................33
7.1 Creating an innovative economic environment .................................................33
7.2 Building up a high-developed human capital ....................................................34
7.3 Developing sustainable technology & ICT........................................................35
7.4 Sustainable society.............................................................................................36
8. Strategic resources needed .....................................................................................38
8.1 Tangible resources .............................................................................................38
8.2 Intangible resources ...........................................................................................39
8.3 Natural advantages.............................................................................................39
9. Road Map to achieve aspiration statement (draft) .................................................40
10. Working with other commissions..........................................................................42
11. Robust and fragile elements..................................................................................48
12. Detailed Implementation/Action plan 2010-2013 ................................................49
13 Monitoring and evaluation 2010-2013...................................................................56
Annex 1: Conceptual framework: sustainability through innovation............................0
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Preface
The commission Nation of Innovation (NOI) is one of the commissions forming part
of the project Nos Aruba 2025. The objective of Nos Aruba 2025 is the
institutionalization of an integrated and strategic planning process where the
coordination between the relevant stakeholders is encouraged taking into
consideration guidelines for sustainable development. The most important outcome of
Nos Aruba 2025 is the formulation of a National Integrated Strategic Plan (NISP).
The definition of this plan will stimulate the coordination between the concerned
stakeholders.
The primary goal of the commission NOI is to develop a plan and stimulate ideas to
promote innovation and entrepreneurship on Aruba in order to reach sustainable
economic prosperity for our citizens. The commission believes that Aruba can only
prosper in the times ahead if the talents of the country’s people are unlocked.
Innovation should flourish across every area of the island’s economy, and in
particular in the industries where high value added businesses can prosper and grow.
Innovation will be the key to some of the biggest challenges facing Aruba’s society,
like economic diversification, energy development, sustainable food supply and other
areas that require long-term sustainable solutions.
We can innovate by investing in people and knowledge, unlocking talent at all levels,
expanding our research capabilities, enhance collaboration between key stakeholders,
elevate awareness and provide incentives to stimulate innovative ideas and initiatives.
In all this there is an exciting challenge for the private and public sector, third sector
organizations, schools and universities.
A small group of motivated individuals can spark off innovative thinking, but only if
we all work together (individuals, government, private sector and NGO’s) we can
create a Nation of Innovation by 2025.
October 2009
Commission members:
Lucia White (chairwoman)
Mercedes Levenston-Willems (secretary)
Edward Erasmus
Roxanne Wolff
Regine Croes
Marisa de Kort (PMT member)
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1. Executive summary
In 2025 Aruba will be the place where innovative people will share innovative ideas
in an innovation-friendly environment. Aruba will be an internationally known center
for innovative businesses. The island has all resources necessary to continue
improving and to diversify the economy. As a small island, Aruba will be an
international example of how to benefit from innovative sustainable technologies and
ICT networks on all levels in daily life. A well developed economy, high quality jobs
and employees who are viewed as precious human capital. Continuous investments
are made, and Arubans pro-actively create win-win situations and (new) business
opportunities. To become an innovative country, the commission will focus on four
key achievements, which are:
1. To create an innovative economic environment;
Creating an environment that is featured by a collaborative and synergetic approach to
economic development. Entrepreneurs are considered as the drivers for innovation.
Two crucial aspects are accentuated to accomplish this:
 Generating awareness for innovation
 Developing (inter-)organizational skills and stimulate attitudes for
management of innovation.
2. To build up high-developed human capital to sustain the workforce;
This achievement focuses on the attraction of talented people and also on the
elevation of the level of education of the workforce in order to have high developed
innovative people to sustain economic growth.
 Attracting (local) talented people (knowledge immigrants)
 Elevating level of education of the workforce
 Fostering innovative thinking
3. To attract sustainable technology and ICT to benefit the community and that will
function as a pull-factor for further innovation;
To develop an Aruban community in which sustainable technology and ICT can
develop and flourish to the benefit of all Aruban citizens. By facilitating access to
these technologies, the Aruban people, entrepreneurs and government institutions will
be able to boost their innovative capacity to the wellbeing of all.
4. To develop and maintain a sustainable society.
A society that strives to be sustainable accepts a duty to seek harmony with other
people in that society and with nature. Innovation is driven towards long-term
sustainable solutions for current and future challenges. Lifestyles will adapt and
innovative development paths will be created to respect and work within the island’s
nature resources. Key stakeholders in society will promote values that support these
new ethics and discourage those that are incompatible with a sustainable way of life.
The social architecture will give a description of future relationships needed between
stakeholders and what is necessary in order to achieve the sustainability of the
aspiration statement of this opportunity plan. A list of achievements is given in the
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aspiration statement. Furthermore a link will be made between the aspiration
statement, the achievements and the sustainability themes and statements that were
brought forward by the members of the community.
Finally, the action plan and the roadmap will be presented, providing an overview of
findings and actions to be taken for implementing and promoting innovation in Aruba.
Afterwards a detailed implementation plan will be presented, and measures to be
taken for evaluation and monitoring.
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2. Background information
2.1 Introduction
By hard work, determination and the capability of joining efforts in trying times, the
Aruban people have been able to make Aruba one of the most successful islands in
the Caribbean region. One of the most significant achievements is the Aruban-type
affluent society with a high level of education, social and health-care services
available to everybody, little or no unemployment and the high standard of living for
a large group of Arubans. The elements of Aruba’s positive core, which include the
well-developed tourism industry, international orientation, social security system,
political stability, safe and secure environment, hospitable multi-cultural population
and values together form the social heritage have all supported our success.
2.2 Challenges
Despite the many positive aspects, Aruba is facing serious challenges. The chosen
path for further economic development, being tourism, is placing a tremendous
pressure on our precious resources in both a direct form and an indirect form. Hotel
buildings and dedicated beaches reduce our natural resources and the import of
migrants to fill job openings puts a considerable strain on our infrastructure and
increases the need for more housing, consumption, waste management, energy usage,
education, social security system and health care. Economic development through
tourism also contributed to a sense of loss of cultural heritage and an increased
income gap.
Furthermore entrepreneurial development has been lacking a sense of creativity, since
most small and medium enterprises have been focusing solely on providing the same
products and services towards the same target groups (tourists), resulting in a
saturated ‘more of the same’ market. The consequence of this is multiple: capital
investments of SME’s generate low or negative rate of return, little variation in terms
of employment opportunities for the young generation, low productivity, low
elasticity (i.e. ability to adapt to a changing environment), lack of knowledge
development, and a high focus on competition instead of developing new industries,
etc.
Finally, the current economic structure which is featured by a flat employment
pyramid with a very ‘broad’ bottom consisting of a large number of people with low
income creates many challenges for the social system. One clear example is the
General Medical Insurance Fund (AZV), which is operating with a huge deficit not
only due to the rising healthcare costs, but also due to the low premium contribution
of the large group of people earning a low income compared to their level of
consumption of healthcare services covered by the fund. Another consequence of the
relatively few highly skilled and highly paid jobs is a lack of drive for higher educated
and experienced Arubans to return to their country.
Research proves that economic wealth, potential and survival of countries is directly
related to the education and skills of its people (see for example: Barro 1997;
Dickens, et al 2006). The current level of education on Aruba is extremely low and
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government investments in the segment are much lower than can be expected to
promote a growth in GDP based on human capital, our only core natural resource.
2.3 Regulatory and institutional framework
Regulatory framework
The current regulatory framework is insufficient, and even counterproductive, to
introduce many forms of innovation into the business sector, and the population in
general.
Labor laws, the reigning vision on human resource management and the traditional
labor unions, are not conducive to innovation. Productivity is low and although many
voices have been raised to improve this, few concrete measures have been taken. Too
often labor is seen as a ‘cost’ of doing business, rather than an asset to be invested in.
The immigration laws with a maximum stay of three years do not promote
productivity, quality and specialization within the imported labor force. Nor is it
attractive for investors. The investors themselves are made to feel unwelcome, and it
is very difficult to bring in the necessary knowledgeable employees to at least start up
a business. The proposed change to be more flexible towards ‘knowledge immigrants’
(kennismigranten) still does not solve the problem within the system itself (slow and
obscure), nor does it take the investors themselves into consideration..
The fiscal changes that have taken place (IPC) have not shown the expected results.
Aruba’s financial industry is small compared to Curaçao, for example, but has definite
potential. The introduction of the turnover tax (BBO) for exports (1% for goods, 3%
for services) is detrimental for Aruban businesses considering expanding across the
borders.
Institutional framework
The institutional framework has most of the necessary elements in place to support
economic growth, within the government as well as in the private sector (departments
and organizations). However, to create the synergy and creative energy necessary for
(social and) economic growth and diversification, communication and cooperation
between the elements is sorely lacking. There is an atmosphere of distrust and
negativity between the private and public sector and within the public sector. The
public sector furthermore is challenged by limited funds to allocate for projects
regarding economic diversification and growth (such as Investment Promotion). The
current economic downturn has forced the local business community to focus on
‘survival’ rather than growth.
2.4 Sustainable development
In the light of the current global financial crisis and the existing challenges to promote
economic growth and diversification, we are facing a fundamental sustainability
question:
How can we maintain and finance an affluent society given our limited (physical)
resources, our mono-industry focus (tourism) and a frail social system due to an
unbalanced economic structure?
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2.5 Strengths
The challenge is to expand upon existing strengths and improve these where
necessary to be able to grasp and create opportunities. Emphasis should be put on
creating a spin-off and synergy in social-economic terms to expand the basis of
generating (future) wealth for all Arubans.
The size of Aruba, small and orderly, is an advantage that would make many other
countries jealous. The current strengths are generally the same strengths that have
already made Aruba one of the most attractive and successful tourist destinations in
the world.
Examples of our strengths are:
 Service-based economy
 Multi-lingual and literate society
 Political stability
 Independent judicial system
 Sound banking system
 Telecommunications
 International orientation
 Part of the Kingdom of the Netherlands
 Safety and security
However, there is a need to expand on these strengths. Examples of necessary
additions are:
 Innovative fiscal products to stimulate investments and innovation
 Labor laws and human resource management that promote productivity and
flexibility
 Access to investment capital facilities
 Higher education levels
 Cooperation and communication between stakeholders
 Entrepreneurial development focused on economic diversity
2.6 Opportunities
The opportunities that can be tapped into right away are the promotion of local
segments of the economy and the attraction of international investors to benefit from
Aruba's geographical location, in combination with fiscal and other advantages (the
free zone).
Short term opportunities are identified and described in the Government policy
document ‘Vision, Curashi y Disciplina’ (2002). Focus points are SME’s, logistics
and transport, financial services sector and the ‘knowledge economy’. Cross-sector
issues to support these and other developments are also described, such as fine-tuning
of public and private sector development, company establishment policy, fiscal
climate, statistical and financial-economic information, international associations and
agreements, etc.
Other economic diversification opportunities are described in the FIAS report (2007)
such as developing medical tourism and education opportunities.
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In the meantime, additional opportunities have been identified, such as alternative
energy and showcasing. The abolition of free zones on the BES-islands may offer an
opportunity and the increased trade between Latin America and the EU offers definite
possibilities. The addition of a solid and growing International Financial Center will
assist in making Aruba more attractive for international businesses. The new free zone
legislation offers the possibility to offer services from the free zone, a large step in
modernizing the free zone and diversifying the activities.
The importance of not only diversification, but also innovation, is stressed in the
report ‘Vision pa Gobernacion di Aruba 2009-2013’ (May 2009) written by the
Chamber of Commerce and Industry. Innovation and change is described in regards to
the investment climate, integral planning, spatial planning and pro-active promotion
of Aruba as a tourist and business destination.
The opportunities are there. However, they are not being realized. Many different
issues that have delayed or prevented action have been described above.
One of the fallacies in current thinking is the misassumption that, by realizing these
and other economic opportunities, economic development will follow and continue.
National economic planning, and regular business planning, makes use of
assumptions and models, and when these assumptions fail and the models don’t fit,
development stumbles and/or halts1
. There needs to be a continuous process of
innovation in thinking and action.
2.7 Innovation
Definition and building blocks
To ‘boost’ the power of economic development and growth we have added the
element of innovation. Traditionally the term innovation has been defined as “the act
or process of inventing or introducing something new” or as “a new invention or way
of doing something”.2
From an organizational perspective innovation can be defined as follows:
“Innovation . . . is generally understood as the successful introduction of a new thing
or method . . . Innovation is the embodiment, combination, or synthesis of knowledge
in original, relevant, valued new products, processes, or services.” (Luecke and Katz,
2003)
In this report innovation is viewed from a broader perspective in the sense that not
just business organizations, but the whole community (government, NGO’s and
inhabitants included) contribute to the further innovation of all areas of society to
benefit of prosperity. In developing innovation on a nation-wide scale there are
certain ‘ingredients’ that need to be present. In his opening speech during the Intel
Developer Forum 2008, Craig Barret, Chairman of Intel brought forward in a very
comprehensive way the three key aspects required for innovation and economic
success in this era. A fraction of Mr Barret’s statement is quoted below:
1
What if the world had listened to this: “There is no reason anyone would want a computer in their
home.” — Ken Olson, president, chairman and founder of Digital Equipment Corp (DEC), maker of
big business mainframe computers, arguing against the PC in 1977
2
Encarta® World English Dictionary.
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“What’s the right formula to ensure your economic success?..there are three things
you can focus on: you need smart people (good education system), you need smart
ideas (you need to invest in R&D) and you need the right environment for
collaboration to get smart people together with smart ideas to invest in innovation.”
The commission believes that these three key aspects ‘smart people’, ‘smart ideas’
and ‘the right environment for collaboration’ are the building blocks for developing
innovation for Aruba.
It should be emphasized that innovation should not be seen as a goal on itself, but as a
means to enable Aruba to pursue sustainable economic development on the long run
by creating a ‘state of mind’3
so that society as a whole - individuals, private and
public sector - can grasp and develop new opportunities. This will ensure the
sustainability of future developments.
International best practices
A very interesting article published in the Harvard Business Review4
describes the
strategies undertaken by very successful innovative societies, such as Singapore,
China, Finland, Japan, etc. An interesting aspect is that innovation and innovative
success do not directly correlate with high-level technology. These countries’
approaches to innovation strategy are characterized by “creating forward-looking
education, and talent development policies, pouring money into large-scale initiatives,
and snapping up new assets in the form of intellectual capital and infrastructure”. The
companies seeking innovative environments, such as high tech, will seek out these
strategies and use them to their business advantage.
The article further describes four different models that various countries have chosen
as the basis of their success. Aruba is in the position to study the success factors and
combine them with our natural advantages, creating our own special brand to sell. It is
interesting to note that the huge success of Finland is the result of “strong
governmental stewardship”, while in other cases education facilities or fiscal facilities
are crucial. This proves the synergy necessary with the other Nos Aruba 2025
commissions.
2.8 Present stakeholders
There are different stakeholders that can be identified by the commission as pivotal in
terms of the resources they possess and the contribution they can make to the
realization of the commission’s goals. Below is a summary of the key present
stakeholders, with a brief explanation of their current attitudes and roles (as perceived
by other stakeholders) as well as an outline of their importance (now and in the
future) in relation to the commission’s opportunity plan as outlined in this report.
3
"Without changing our patterns of thought, we will not be able to solve the problems we created with
our current powers of thought" Albert Einstein
4
“Tapping the World’s Innovation Hot Spots”, John Kao, Harvard Business Review, March 2009
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Stakeholders Current attitudes and roles5
Importance in relation to the
commission’s opportunity plan
Parliament &
council of ministers
Focus on short-term solutions;
Concentration on balanced budget:
increasing income through higher
taxes and cutting expenditures (esp.
investments).
View utility companies as ‘cash
cows’.
‘Our way or the highway’ attitude.
Long-term vision: balanced economy;
focus on innovation and provide the
means, incentives and support to develop
new economic industries. Conservation of
positive core
Reduce barriers and duties for the
development of green energy projects
(domestic and commercial).
Fostering mutually respectful diverse
ways of connecting with relevant partners
in community (private sector & NGO’s)
Government
Departments
Fragmented, short-term policy; low
productivity; insufficient funding
Action-based approach to clear priorities
Chamber of
Commerce/ATIA &
other business
associations
Advisory role in government
decisions is often disregarded.
Limited power to influence
outcomes in macro-economic
context.
Important partners in public-private
dialogues, focusing on economic
sustainability and promotion of innovative
entrepreneurial development.
ATA/AHATA Focus solely on tourism in
quantitative terms. Tourism
industry is separate from other
industries.
Exploring synergy between tourism and
other industries; innovating the tourism
product. Conserving the positive core.
Utility providers Slow reaction to the development of
green energy.
Cost-benefit is measured based on
‘here and now’ instead of ‘future
trends’.
Focus on green energy and work towards
independence from foreign fossil fuel by
investing in sustainable local resources to
generate energy and water supply.
Department of
education, schools &
universities
Focus on a one-size-fits-all
selective foreign-oriented learning
environment where students have to
accommodate the system for the
benefit of the ‘happy few’. Under
funded.
Focus on customized learning
environments where the best in each
individual is nurtured for the benefit of
the whole community.
NGO’s Advisory role in government
decisions is often disregarded.
Limited power to influence
outcomes in macro-economic
context.
Important partners in public-private
dialogues, focusing on community based
initiatives and innovative entrepreneurial
development.
Students / next
generation
Lack of awareness and
involvement on sustainable
development themes. Lack of
positive role models.
Future members of the workforce,
innovators, co-creators of new industries
embracing sustainable development.
Trade unions Narrow HRM vision. Protect
short term ‘personal’ interests.
Innovators concerning productivity and
labor motivation; educators. Partners in
public-private dialogue.
ICT Providers Local instead of international
focus, not making use of
available technologies. Low
standards, too expensive.
Provides necessary technology to support
innovation; international focus.
5
According to stakeholders
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2.9 Structure of the report
The report starts with the aspiration statement of the commission (Chapter 3).
In Chapter 4 the social architecture will be presented, which is a description of the
future relationships needed between stakeholders and what they must do including
their role in achieving the sustainability of the aspiration statement of this opportunity
plan.
Chapter 5 will elaborate on the desired outcomes. The desired outcomes entail the list
of achievements the commission aims for based on the aspiration statement.
Furthermore a link will be made between the aspiration statement, the achievements
and the sustainability themes and statements that were brought forward by the
members of the community.
Chapter 6 will describe the main stakeholders needed to obtain the desired outcomes
outlined in the previous chapter.
In Chapter 7 the action plan will be presented, which includes a list of concrete
actions to be done to achieve the desired outcomes, based on the question: what-who-
when.
Chapter 8 will focus on the strategic resources that are needed to execute the actions
provided in the previous chapter.
Chapter 9 will present the Roadmap, which gives an overview of all the information
gathered from the previous chapters grouped by Social, Economic, Environment and
Political (SEEP) categories in the form of a wedge.
In Chapter 10 an overview is provided of the commissions with who the commission
Nation of Innovation will have to collaborate and synergize in order to realize certain
achievements or actions stated in this plan.
Chapter 11 will present the robust and fragile elements of the opportunity plan based
on scenario stress tests performed. Some actions are provided to make the fragile
elements achievable.
A detailed implementation/action plan will be presented in Chapter 12 for the period
of 2010 – 2013.
Lastly, in Chapter 13 a detailed description is provided how monitoring will take
place, including actions, indicators for evaluation and monitoring and the timeframe.
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3. Aspiration and specific objectives for 2025
This chapter highlights the aspiration statement of the commission. The aspiration
statement is a description of how the commission sees Aruba in 2025 and which key
aspects contribute to the country’s success.
The aspiration of the commission is as follows:
Smart People + Smart Ideas = Nation of Innovation
In 2025 Aruba will be the place where innovative people will share innovative ideas
in an innovation-friendly environment.
Aruba will be an internationally known center for innovative businesses, offering a
variety of services, based on our geographical location, our friendly multicultural,
multinational and multilingual community and our stable political and trustworthy
judicial system. Our well-developed tourism services, our favorable fiscal and
financial incentives and our global connections are used in synchronized way to
continuously improve and diversify our economy.
As a small island state we are an international example of how to benefit from
innovative sustainable technologies and ICT networks on all levels in daily life.
International businesses are eager to showcase their most innovative products and
services on our island within a unique concept of a real-life Caribbean EPCOT
Center. We tickle international curiosity and provide a spin-off for high quality
education and tourism. We provide the best regional transportation services and are a
center of global export for goods and services.
Our well developed economy is providing high quality jobs and employees are
viewed as precious human capital. Therefore, continuous investments are made to
develop human potential and Aruban citizens will be innovative global citizens, and
through life-long learning remain well informed and opinionated and are able to
continuously and pro-actively create win-win situations and (new) business
opportunities.
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4. Social Architecture
The social architecture describes the future relationships needed between (future)
stakeholders and what they must do including their role for the sustainability of the
aspiration of the opportunity described by the commission.
4.1 Key stakeholders
The key stakeholders that need to be involved or need to exist in the future are listed
below:
Government/semi-
government
Private sector NGO’s and private citizens
 Parliament
 Government (economy,
education, fiscal, legal,
infrastructure, spatial
planning, intellectual
property)
 Community centers and
libraries for life long
learning
 (Higher) education
providers
 Early childhood education
providers
 Public healthcare providers
 Business organizations
(ATIA, Mambo, SNBA,
etc, old and new forms)
 Chamber of Commerce
and Industry
 Utility providers
 ICT providers
 Investment fund providers
 Banks
 Foreign and local
entrepreneurs
 Social entrepreneurs
 (Digital) press & media
 Research & Development
facilities
 E-learning facilities
providers
 (Renewable) energy
providers
 Healthcare Systems (for
profit)
 Education institutions,
language centers (for
profit)
 Free Zone Aruba
 AAA
 APA
 Transportation providers
 Architects/construction
companies
 Insurance Providers
 NGO’s (environment,
business, education,
human resources,
consumers)
 AHATA/ATSA
 Role models, action-
based leaders (business,
education, environment,
health, sports, social)
 Students/next generation
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4.2 Relationship between these stakeholders (formal and
informal)
The relationship between the stakeholders is characterized by a shared vision
concerning the sustainable development of Aruba, and the belief and willingness to
act in creating economic activities to support this vision.
The stakeholders all have a vested interest in creating and maintaining an intensive
dialogue regarding all issues related to sustainable development. In general, the
dialogue has the form of a ‘platform’, covering various issues, such as Education,
Health Care, Energy, etc. An important platform to be developed for the projects as
described in the opportunity plan is an ‘Investment Platform’, exploring and attracting
inward investment and promoting export.
Participants partake in the platform discussions based on generally accepted
responsibilities and competencies.
4.3 The influence stakeholders have on the desired outcome
of our opportunity
In general terms the influence stakeholders have on the desired outcome can be
summed up as follows:
Government: provides the policy framework and collective means
Private sector: creates, facilitates and makes use of (economic)
opportunities
NGO’s/private citizens: monitors the vision and tests plans and projects for
sustainability, can partake in developing and managing
economic opportunities
4.4 The influence stakeholders have on each other
Each stakeholder is a stakeholder for the precise fact that they create and/or control
one or more of the strategic resources, and can individually influence the outcome by
participating or withholding support.
Optimal cooperation and gearing the activities to one another will guarantee effective
and efficient outcomes, but also requires communication. The platforms should be
seen as the means to create the necessary communication between the various
stakeholders. The synergy that is created through dialogue and cooperation is the
greater sum of the individual participants.
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4.5 Detailed social architecture
Stakeholders Power to
advance
actions
Interest
in the
aspiration
Role/involvement in
execution of actions
Influence on other
stakeholders
Relationship with
other stakeholders6
Aspiration for 2025
Parliament &
council of
ministers
High High
(political
gain)
Initiate and pass
legislation/determine
policy priorities and
allocate funds (budget)
High level of influence.
Proper legislation,
policy and allocated
funds can greatly help
stimulate innovation.
Formal. They respect
and support the role of
private sector as drivers
for innovation, as well
as the role of NGO’s
and private citizens.
Partnerships..
Parliament & council of
minister embrace
innovative initiatives and
priority is given to
legislation and budgetary
funds to support new
ideas and industries.
Community
centers and
libraries for life
long learning
Medium High Support the formation
of human capital
Low. Facilitate learning
opportunities. Passive
approach to
stakeholders
Formal and informal.
Partnerships. Participate
in dialogue, initiate
projects and respond to
specific requests.
Attract and stimulate
teachers and students
from the general
population.
Professionally developed
institutions providing
high quality and demand-
driven learning programs
to the benefit of the labor
force and community in
general
(Higher)
education
providers
Medium High Support the formation
of human capital
Low. Facilitate learning
opportunities. May
contribute to
development of
research programs.
Formal and informal.
Partnerships. Participate
in dialogue, initiate
projects and respond to
specific requests.
Professionally developed
multi-functional
institutions providing
high quality and demand-
driven learning programs
to the benefit of the labor
6
We assume that the stakeholders will have developed the social architecture as described in 4.2-4.4. Dialogue and formal platforms have been instituted.
17 | P a g e
force and community in
general. Actively
involved in research to
the benefit of general
interest.
Early childhood
education
providers
Low High Contribute to the early
development of
innovative skills and
attitudes
Low. Initiate learning
curiosity during early
childhood.
Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests.
Professionally developed
institutions providing
high quality
developmental programs
for early childhood care
and education to both
children and parents
(Public)
healthcare
providers
Medium High Develop opportunities
to expand services
based on innovation and
cross-border supply of
health care.
Medium. Drivers for
innovation and
improvement of the
healthcare industry.
Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests.
Offer top quality
healthcare to the local
population, support
medical tourism
Business
organizations
(ATIA, Mambo,
SNBA, etc, old
and new forms)
High High Important partners in
public-private
dialogues, focusing on
economic sustainability
and promotion of
innovative
entrepreneurial
development.
High. May act as
drivers and take
initiatives to greatly
influence the business
sector
Formal. Work closely
with the Parliament and
the government in a
private-public platform
to formulate long-term
policies
Informal. Can influence
their individual
members.
Drivers of entrepreneurial
innovation and supporters
of life-long learning
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Chamber of
Commerce and
Industry
High High Important partner in
public-private
dialogues, focusing on
economic sustainability
and promotion of
innovative
entrepreneurial
development.
High. Will have to play
a pivotal role in
educating, informing
and inspiring present
and future entrepreneurs
to develop new business
ventures
Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests.
Offers services and
advice, education to
support entrepreneurial
innovation.
Utility providers High High Advice in the
development of
regulations for green
energy development
High. Possess
concessions and
exclusive rights to
deliver utility services.
High influence on all
prices. Ownership of all
utility infrastructure
which may influence
actions of all users.
Formal. Provides
services on the basis of
market needs
Offers top quality service
and technology based on
sustainability.
ICT providers High High Provide state of the art
ICT services
High. Provide
infrastructure for ICT
users. Businesses and
individuals rely 100%
on the quality,
efficiency and
availability of their
services.
Formal. Provides
services on the basis of
market needs
Provide the latest trends
in ICT technology and
innovation to help
achieve a state-of-the-art
nation.
Investment fund
providers
Low High Provide affordable and
innovative investment
products, also for
SME’s
Low Formal. Provides the
services on the basis of
market needs
Aruba has a top rating
and is an example for
creative and responsible
SME investment funding.
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Banks High Medium Provide financial means
to support innovative
industries
High. Provide capital,
define interest rates and
stipulate regulations and
conditions for (new)
business ventures.
Market developments
are highly influenced by
the level of credit
lending.
Clients rely on the
accuracy of the banking
system and supervision
of the Central Bank
Formal. Capital is
extended through
formal contracts, which
are also subjects to
regulations of the
Central Bank.
Banks are transparent and
stable institutions, who
offer competitive interest
rates and lending
conditions to help
develop innovative
business, industries and
the economy in general.
Aruba Electronic
Exchange
High High Facilitate access to local
and foreign capital to
finance commercial
projects
Medium. Facilitate
alternative modes for
attracting capital to
support investments
Formal. Capital is
arranged through formal
contracts, which are
also subjects to
regulations of the
Central Bank.
The AEX is a well-
developed, internationally
renowned investment
platform to generate
necessary capital.
Foreign and local
entrepreneurs
High High Drivers for innovation;
develop and
successfully implement
new business ventures
Medium. Business by
example.
Informal. Generate highly
profitable, innovative
business opportunities
according to
sustainability.
Social
entrepreneurs
Medium High Develop enterprise
ventures with both
social and commercial
purposes.
Low. Informal. Develop business
opportunities with social
benefit.
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(Digital) press &
media
Medium Medium Promote innovation and
sustainability. Facilitate
access of information to
the general public
High. Informal. Provide accurate,
accessible, relevant and
objective information.
Disburse innovation.
Research &
Development
facilities
Medium High Drivers for innovation;
develop and
successfully implement
new business ventures
and/or fulfill social
needs.
High. Informal. Generate innovative
business opportunities
according to
sustainability. Function as
a learning facility
E-learning
facilities
providers
Medium High Support the formation
of human capital
Low. Facilitate learning
opportunities. May
contribute to
development of
research programs.
. Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests
Professionally developed
institutions providing
high quality and demand-
driven learning programs
to the benefit of the labor
force and community in
general. Actively
involved in research to
the benefit of general
interest.
(Renewable)
energy providers
High High Drivers for innovative
(renewable) energy
provision. Provide
technological know-
how and (partially)
invest in the
development of energy
projects.
Low Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests
Provide an international
showcase of best-fit
technology using
available and renewable
resources
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Healthcare
Systems (for
profit)
Medium High Develop opportunities
to expand services
based on innovation and
cross-border supply of
health care.
Medium. Drivers for
innovation and
improvement of the
healthcare industry.
Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests.
Offer top quality
healthcare to the local
population, support
medical tourism
Education
institutions,
language centers
(for profit)
Medium High Support the formation
of human capital
Low. Facilitate learning
opportunities. May
contribute to
development of
research programs.
Formal and informal.
Participate in dialogue,
initiate projects and
respond to specific
requests.
Professionally developed
institutions providing
high quality and demand-
driven learning programs
to the benefit of the labor
force and community in
general. Actively
involved in research to
the benefit of general
interest.
Free Zone Aruba High High Attracts new export-
driven business
ventures
Medium Formal and informal.
Highly involved in
developing business
opportunities and
attracting foreign
investment
World class business
center, attracting high-
value, high quality
businesses, using local
professionals
AAA High High Provide the logistics to
support (new) economic
activities
Low Formal and informal.
Responds to
international
developments and
national needs.
Regional hub for
passengers and freight.
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APA High High Provide the logistics to
support (new) economic
activities
Low Formal and informal.
Responds to
international
developments and
national needs.
Regional hub for freight
and home port for
cruiseships.
Transportation
providers
Medium High Provide the logistics to
support (new) economic
activities
Low Formal Aruba is a crucial hub in
their regional network
Architects/constru
ction companies
Low Medium Willingness to use
alternative building
materials and designs
Low Formal Use innovative materials
and designs, ‘Aruba
Design’ is a trademark.
NGO’s
(environment,
business,
education, human
resources,
consumers)
High High Monitors and tests plans
for sustainability, can
initiate and partake in
specific actions.
High Formal (dialogue,
platforms), informal
(members)
Highly professional and
influential organizations,
locally and internationally
AHATA/ATSA Medium Medium Support and diversify
the sustainable
development of the
Aruban tourist product
Medium. Formal and informal,
increasing the positive
core
Aruba is still a top
destination choice,
because of sustainability
Current
students/future
workforce
members
High High Future members of the
workforce, innovators,
(co-)creators of new
industries embracing
sustainable
development.
Low Informal. Participation
in discussions to get
interest for generation
related issues.
International participation
in forums and
competitions.
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Role models,
action-based
leaders (business,
education,
environment,
health, sports,
social)
High High Drivers of positive
thinking and action
High Informal. Discuss,
promote, and persuade
the development of the
necessary framework to
develop opportunities to
excel.
Every (young) citizen
wants to develop their full
potential and give to
society.
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5. Desired outcomes
This chapter provides an overview of the specific outcomes the commission wants to
obtain based on the aspiration statement described in chapter 3.
Innovation knows many dimensions and the ways it can be stimulated and further
developed can be approached from different angles.
To accomplish innovation for Aruba, the commission will focus on four key
achievements, which are:
1. To create an innovative economic environment;
2. To build up high-developed human capital to sustain the workforce;
3. To attract sustainable technology and ICT to benefit the community and that
will function as a pull-factor for further innovation; and
4. To develop and maintain a sustainable society.
Nation of
Innovation
High developed
human capital
Innovative
economic
environment
Sustainable
technology & ICT
Sustainable society
Graph 1: Key achievements for 2025
Each of these achievements is further discussed in the paragraphs below.
5.1 Key achievements
5.1.1 Innovative (economic) environment
Creating an environment that is featured by a collaborative and synergetic approach
to economic development between key representatives of the business community,
investment promoters, foreign investors and the government entities in order to
generate value-added income without compromising the resources and composition of
the workforce. Entrepreneurs are considered as the drivers for innovation who act as
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engines of growth, harnessing opportunity to develop product, service and process
innovations as well as new industries to fuel economic advancement.
In basic terms an innovative environment from the commission’s point of view stands
for a community where people want to bring great ideas and collaborate to
successfully implement them. To create such an environment the commission
accentuates three crucial aspects:
 Raising awareness for innovation.
 Developing (inter-)organizational skills and stimulate attitudes for
management of innovation.
 Develop/attract feasible short-term innovative business ventures (new
industries) to create quick wins which should contribute to paving the path
towards further innovation.
Raising awareness for innovation
To start with innovation it is important to start with changing people’s mindset in a
particular environment. While it is easy to condemn the current passive mindset, it is
not easy breaking out of it. Generating awareness for innovation is a good starting
point to make the shift.
Some general strategies for raising countrywide awareness for innovation are the
following:
 Introduce a National Innovation Awards: an award that recognizes achievements
in innovation that benefit the Aruban economy and society with the broader aim
of strengthening the national innovation culture and awareness at all levels of
industry, in the public sector and academia.
 Introduce innovation programs as part of schools curriculum, community
programs, sports, arts and culture.
Developing (inter-)organizational skills and stimulate attitudes for management
of innovation
In developing skills and attitudes for innovation the following goals will be pursued:
 Develop IMEs (Innovation Management Course for Executives): IMEs goal
should be to develop new management skills, improve vision and business skills,
and facilitate the application of innovation and new technologies in individual
businesses of participants based on using technology to create new products,
processes or services. The course should also explain how entrepreneurs may
access resources to benefit their own businesses. This course will help SMEs
innovate successfully through accessing R&D support for new ideas, and
government institutional and financial support services.
 Develop strategic action-based thinking in both the government and private sector.
 Develop a collaborative network to exchange innovative ideas and information.
 Create networks and facilitate access to financial means.
 Focus on the development of scientific research to support decision-making.
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Develop/attract feasible short-term innovative business ventures
Feasible short-term business ventures that be developed in Aruba are the following:
 International Financial Center
 International Business Center
 Aquaculture
All three business ventures may conduct to ‘spin-off’ activities, especially in the areas
of education, research and development.
5.1.2 Highly-developed/knowledgeable human capital
Achieving a highly educated workforce that is perceived as precious human capital
and who through knowledge and skills is able to greatly contribute to further
innovation and who is empowered to support the development of new business
ventures. Each individual is offered the opportunity to develop to its full potential.
This achievement focuses on the attraction of talented people and also on the
elevation of the level of education of the workforce in order to have high developed
innovative people to sustain economic growth.
Attracting (local) talented people (knowledge immigrants)
To help develop Aruba as a destination of innovation, local talented people will have
to be attracted from abroad. Priority should be given to the attraction of local
graduates who are residing in a foreign country7
to fill vacancies in areas where high-
skilled jobs will be required. There are many reasons why local-born professionals
should be chosen over import of (temporary) foreign skilled people. In many cases
foreigners come to fill high positions but leave in a few years without sharing their
knowledge and experience gained at their work with locals. A local-born professional
will have the tendency to be more committed and to be more open for sharing skills
and experiences since he is making a contribution to his country of birth.
Elevating level of education of the workforce
Efforts should be made on different levels to increase the quality of the labor force in
terms of education and training. A more educated labor force is more mobile and
adaptable, can learn new tasks and new skills more easily, and can use a wider range
of technologies and sophisticated equipment (including newly emerging ones). A
well-prepared workforce is also more autonomous and thus needs less supervision,
and is more creative in thinking about how to improve the management of work. All
of these attributes not only make a more highly skilled worker more productive than a
less skilled one but also enable a work place that employs more educated workers to
organize differently, manage differently, choose technologies and equipment
differently, and adjust better to changes necessitated by competition, by technical
advances, or by changes in consumer demand.
Skills lead to more skills and new ways of doing business, workers learn from one
another, and firms adapt their technology and their use of capital to the skills of the
available workforce. The benefits of having a more educated workforce accrue to
7
Usually the country in which they studied
27 | P a g e
everyone, not just to the organization where these individuals are employed at.
Further, these kinds of indirect (or spillover) effects for the economy as a whole may
be especially important in an increasingly competitive global marketplace. Lastly a
more educated workforce may produce a less crime-ridden and healthier environment
with better functioning civil institutions and all the benefits that flow to the business
sector from that environment.
To support people to achieve higher levels of continuous education both the formal
and informal education sector should provide custom-made demand-driven
opportunities to develop the talents and learning potentials of all citizens optimally.
By synergizing the efforts of early childhood care and education providers,
community centers and libraries, formal and informal education providers and the
growing power of ICT media in offering continuous education opportunities both our
youth and our seniors can be tickled into pursuing life-long education opportunities.
Fostering innovative thinking
To help develop an environment where creative and innovative thinking of
individuals is appreciated and encouraged a shift has to be made from a more
centralized decision making culture to a culture where citizens and employees are
encouraged to participate in decision making. An award for innovative individuals
within our society as a whole and within specific organizations could promote
individuals to share their ideas and influence decision making on all levels of their
lives. By introducing an award that puts innovative people in the spotlight these
people can serve as role models to inspire others to also be creative and to be
encouraged to think innovatively.
The effects of a growing amount of innovative people in a business community are
self-reinforcing – innovative businesses are attracted to highly skilled and creative
workforces and, in turn, innovative people are drawn towards exciting and
challenging career opportunities. Furthermore, innovative people generate new ideas
that require skilled people to implement and exploit them.
5.1.3 Sustainable Technology/ICT networks
Provision of affordable technology and ICT that benefits the whole community and
that attracts new technology providers to showcase their innovative products and
services.
The focal point of this achievement is to develop an Aruban community in which
sustainable technology and ICT can develop and flourish to the benefit of all Aruban
citizens. The commission believes that by facilitating access to these technologies, the
Aruban people, entrepreneurs and government institutions will be able to boost their
innovative capacity to the wellbeing of all.
Below is a summary of the aspects that need to be considered to reach technological
development on Aruba:
 Facilitate access to ICT technology for all homes at low cost.
 Increase quality and lower cost of ICT technology to meet international standards
for the benefit of the business sector.
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 Encourage domestic development of green energy technology.
 Intensify exploration of affordable green energy technology by utility providers
(partnered with foreign green energy providers) for countrywide benefit.
 Reform waste management systems.
 Attract research and development facilities for green energy and waste
management.
 Develop Aruba as a showcase for sustainable green energy (long-term).
 Attract foreign green energy providers to showcase the latest technology in clean
and green energy provision by emphasizing the diversity of green energy
resources provided on the island..
 Continuously upgrading Aruba airport and port facilities with new technologies.
 Promote green building methods and the use of green energy technologies at
home..
5.1.4 Sustainable society
Building a community consisting of model citizens who embrace sustainable
development and who make use of key resources available in a conscious manner to
continuously develop and improve al areas of the Aruban society, especially social
and environmental.
A society that strives to be sustainable accepts a duty to seek harmony with other
people in that society and with nature. Innovation is driven towards long-term
sustainable solutions for current and future challenges. Therefore the community in
general should be aware of the balance between the dynamics of innovative choices
and the constants of sustainable development. The guiding rules are that people must
share with each other and care for the island. The Aruban citizens and visitors should
learn to take no more from nature than nature can replenish. This in turn means
adopting lifestyles and innovative development paths that respect and work within the
island’s nature resources. This can be done by both embracing the many benefits that
modern technology has brought, and beware that technology also works within those
limits.
Key stakeholders in society (government, NGO’s and private sector) must promote
values that support these new ethics and discourage those that are incompatible with a
sustainable way of life. Information must be disseminated through formal and
informal educational systems so that the policies and actions needed for the survival
and well-being of the Aruban society can be explained and understood. In order to
develop the Aruban community as a sustainable society to further support and
encourage innovation the following aspects are deemed as important:
 Consider people as the central element in the system, evaluating the social,
economic, technical and political factors that affect how they use natural
resources.
 The social consequences of policy decisions will be thoroughly researched and
possible negative effect mitigated.
 Relate innovative economic policy to environmental carrying capacity.
 Increase the benefits obtained from each stock of resources, and limit the
depletion of resources.
29 | P a g e
 Promote technologies that use resources more efficiently.
 Ensure that resource users pay the full social costs of the benefits they enjoy.
5.2 Alignment with different sustainability themes and
statements
In designing the key achievements stated above, the commission also explored the
extent to which these outcomes are in alignment with the different sustainability
themes and statements that were brought forward by different community members
during the Discovery and Dream phase of the project ‘Nos Aruba 2025’. With this
opportunity plan, the commission will contribute significantly to the following aspired
themes and statements:
Social:
 Opportunity for (self)development to ones fullest potentials
 Stable social healthcare system and accessible care infrastructure for all
inhabitants
 Education for high level consciousness regarding sustainability
 Balanced economy, social and ecological possibilities
 Increased personal commitment
 Healthy and happy citizens
Environmental:
 Effective protection of the environment
 Clean water, air, land
 Abundant use of alternative energy (sun, water, wind)
 Recycling and reusing waste
 Aruba is CO2 neutral
 Prudent use of green technologies
Economic:
 National innovation system through knowledge based capabilities
 Opportunities for new business ventures both within and outside existing
industries
 Improved flexibility, efficiency, productivity and equity of markets and economy
 Diversification into high value areas (jobs and industries)
 Sustainable energy production
 An educated economy, aware of the need of natural resource protection
Governance:
 Development of international relations
 Additional cash flow to sustain budget and policy
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6. Main stakeholders
Government/semi-government
Institution Actions needed for AS
Parliament/Government To execute new laws and adapt current
laws to a more modern society.
Less bureaucracy. Especially when
applying for certain necessary permits.
Legal procedures need to become more
effective, less bureaucratic which will be
more time efficient for both the
Government and the business community
Positive balance of payment by 2025
Government: Economy Promote & create platforms for public &
private dialogue:
one for foreign investment and a business
& education platform.
Find subsidies to finance projects to
promote & give impulse to economic
activities
Promote corporate social responsibility
by 2013
Positive balance of payment by 2025
50% of jobs in non-tourism sector by
2025
Intellectual property protection by 2012
Promote a R&D facility by 2025
Government: Education Provide high level of education, available
to all. Cooperate in creating a business &
education platform, promote multilingual
education.
Education level 50% ISCED level 5; 20%
of the working population has an
academic education. 30% ISCED has
level 4 or less.
Early childhood education. Quality
control is necessary. Requirements and
conditions are a must.
Learning centers available to all through
community learning centers & libraries.
Promote multilingual society, not one
main language but all languages.
100% internet access for all learning
centers.
Government: Fiscal Fiscal duties are necessary; create
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incentives to stimulate new businesses,
local and international investment and
diversification of our economy.
0% import duties on green technology.
Government: Infrastructure Very vital is to complete the implantation
of the ROP-law.
By 2018 all new buildings are eco-
friendly
Good telecommunication infrastructure
which has to be accessible for everyone
to achieve 100% broadband and distance
working.
Good connection by land, sea and air, to
achieve good foreign relations and traffic
of goods and people (tourists and
business travelers)
Government: Intellectual property Protect innovative ideas. Encourage
people to keep innovating while
protecting their ideas. But at the same
time giving others the chance to build on
the idea.
Private Sector
Institution Actions needed for AS
Business organizations (ATIA, Mambo,
SNBA, KvK, AHRA, AHATA etc, )
Promoting and creating platforms for: (by
2013)
 Private – public sector dialogue
platform
 Business – education platform
 Foreign investment platform
International business center by 2014
Promoting National Prize Corporate
social responsibility by 2013
National prize for innovative
entrepreneurship by 2014
Promoting distance working by 2015
50% of jobs in non-tourism sector by
2025
Utility providers 50% of energy needs to be supplied by
renewable energy by 2015
More competition in the local market
New buildings are eco friendly by 2018
ICT providers 100% internet access for everyone at an
affordable price
Innovative technology available to realize
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varios e-commerce projects such as E-
medicine center.
Distance working possible from home
offices in 2015.
Investment fund providers Foreign investment platform
Capital
Banks Expand commercial banking
Lower interest rates
(Digital) press & media Responsible and investigative reporting,
aimed at informative education.
(Renewable) energy providers 50% of energy should be supplied by
renewable energy
Create local market for sustainable
products and services at a reasonable
price
By 2020 all buildings are eco-friendly
In 2020, Aruba has non-intrusive
economic activities
Create a new industry through renewable
energy.
Healthcare Systems (for profit) E-medicine center/ national EMD
Competition for the public sector, which
will eventually lead to improved service
from the public sector.
Education institutions, language centers
(for profit)
By having both public and private
education facilities, educational programs
will be available to everyone. It will also
be competition, which will mean the
education system has to keep improving.
NGO’s and private citizens
Institutions Actions needed for AS
NGO’s (environment, business,
education, human resources, consumers))
AHATA/ATSA
Role models, action-based leaders
(business, education, environment, health,
sports, social)
Monitor the vision and test plans and
projects for sustainability.
Watchdog-role, grass roots initiatives.
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7. Actions to be done
In this chapter the action plan will be presented, which includes a list of concrete
actions to be carried out to achieve the desired outcomes, based on the questions:
what-who-when?
What: a description of the actions to be carried out
Who: the stakeholders that need to be involved to make the actions possible
When: the time frame in which the actions need to take place
The actions are presented for each key achievement.
7.1 Creating an innovative economic environment
Action: Raising awareness for innovation
What Who When
Fostering innovation as part of Aruban culture
Innovation and research
programs at school
Department of Education, IPA,
University of Aruba, school boards,
teachers,
2009-2012
Developing internships
programs and scholarships for
foreign innovation programs
Department of Education, University
of Aruba, Aruba Scholarship
Foundation,
2010
Promoting innovation in
community
Media, community-based groups,
centro di barrios, role models,
entrepreneurs
2009-2013
Incorporating innovation in
sports, arts and culture
Sport organizations, Department of
culture,
2010
Action: Developing skills for innovation management
What Who When
Innovation as part of strategic business thinking:
Develop IMEs University of Aruba, foreign & local
learning institutions.
2010-2011
Partnering for innovation:
Create foreign investment
platform
Government, ATIA, KVK, NGO’s
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Action: Develop/attract short-term innovative business ventures
What Who When
IFC, IBC and Aquaculture
Partnering Aruba
entrepreneurs with foreign
investors & users (showcase
displayers)
Free Zone Aruba NV, DEACI, ATIA,
Chamber of Commerce
2009-2010
Create/adapt legal
framework (IFC)
Department of Legislation, Central
Bank of Aruba,
2010
Spatial planning and
strategic positioning for
building construction to
accommodate the projects
DIP, DOW, Elmar, WEB
(infrastructure)
2009
Creative financing
arrangements
Foreign investors, banks, AEX 2009-2010
7.2 Building up a high-developed human capital
Action: Attracting (local) talented people
What Who When
Attracting local graduates from abroad
Provide incentive packages:
recognition, facilitate
immigration of family
members
Parliament & council of ministers,
Department of Education, Department
of Finance, DIMAS
2009-2013
Write-off student loans
(partially or in full) for
graduates that return to Aruba
to work in areas where high-
skilled people are needed
Parliament & council of ministers,
Department of Education, Department
of Finance
2009-2013
Facilitate information on
opportunities of job openings
Department of Labor, Arubahuis,
Arubahuis and GevMin Washington
2009-2013
Attracting technological know-how (knowledge immigrants)
Flexibility of immigration
laws and policies for
knowledge immigrants and
their families
Parliament & council of ministers,
DIMAS, Department of Labor
2009-2010
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Action: Elevating level of education of the workforce
What Who When
Reforming education system
Enhance opportunities for
adult education
Department of Education, Center for
Lifelong learning
2010-2012
Improved flexibility of entry
requirements and offer
support programs to optimize
opportunities to elevate
individual levels of education
Department of Education, professional
and higher education institutions
2010-2012
Fostering a culture of life-long learning
Develop learning centers University of Aruba, local and foreign
learning institutions
2010-2013
Develop distance learning
programs
University of Aruba, local and foreign
learning institutions
2010-2013
Stimulate on-the-job training
programs
Department of labor, local and foreign
business development institutions, HR
managers
2010-2015
Introduce special financing
fund for vocation and
academic learning programs
Parliament & council of ministers,
Department of Education, private
sector
2010
Fostering innovative thinking
Introduce award to recognize
innovative thinking people
both in the community as in
organizations who serve as
role models
New community based entity that
fosters a culture of innovative thinking
and innovative participation in
decision making
2010
Promoting a culture of
innovative participation in
decision making both in the
community as in
organizations
University of Aruba Organization,
Governance and Management
department, new community based
entity mentioned above
2011
7.3 Developing sustainable technology & ICT
Action: Streamlining/facilitating access to technology
What Who When
Facilitate access to ICT technologies
PC/broadband for all homes at
low cost
Parliament & council of ministers,
Department of Education, Department
of Finance, Setar NV
2010
PC/broadband for all schools
and libraries
Parliament & council of ministers,
Department of Education, Department
of Finance, Setar NV
2012
36 | P a g e
Encourage domestic development of green energy
Eliminate barriers imposed by
utility companies for domestic
green energy development
Parliament & council of ministers,
utility companies
2011
Eliminate taxes and duties on
import and development of
green energy technology
Parliament & council of ministers 2013
Action: Developing sustainable technology (energy and waste)
What Who When
Attract technological know-
how
WEB, Elmar, Setar, Serlimar, Private
Sector
2010
Invest in new infrastructures WEB, Elmar, Setar, Serlimar, Private
Sector
2010
7.4 Sustainable society
Action: Raising nationwide awareness for sustainable development
What Who When
Implementation of the ROP &
environmental law
Government; Parliament 2010
Stimulate corporate
responsibility &
entrepreneurship
Chamber of Commerce 2010
Introduce incentive: 0%
import duties on Green
technology
Government; Ministry of Finances 2011
Private sector starts creating
markets for sustainable
products and services for all
business and household in
Aruba: sustainable products
and services have to be
accessible to all)
Private sector; Chamber of
Commerce; Department of Economic
Affairs
2016
50% of energy is supplied by
renewable energy
Private sector; alternative energy
providers; utilities’ companies
2017
All new buildings, are eco
friendly
Ministry of Infrastructure; Parliament;
private sector
2020
37 | P a g e
Action: Community development
What Who When
Start a long-term, nationwide
awareness campaign for a
sustainable society & personal
development (LLL)
Government of Aruba; Department of
Education; citizens
2010
Media: translate visions (of a
sustainable future) into
practices
(Digital) media 2011
Business & Education
platform
Department of Economic Affairs;
Chamber of Commerce; Department
of Education; private sector; citizens
2013
School and other education
programs are available for
everyone, at any age &
education level
Department of Education; private
sector
2017
R&D facilities University of Aruba; Government;
Private sector
2017
38 | P a g e
8. Strategic resources needed
The following strategic resources are imperative for the commission to achieve the
desired outcomes:
8.1 Tangible resources
Cash
Cash is an imperative resource to cover initial investments to acquire other key
resources, such as fixed assets and infrastructure, technological improvements both
physical and know-how, expansion of education and learning facilities, (pilot)-
projects, research and renovations/improvements of existing facilities.
The estimated cash amount to cover the investments and acquisitions is AFl. .......
The funds required will come from different sources, which are:
 Funds allocated by the government
 Funds provided by banks (credit lending)
 Funds directly invested by venture capitalists (local and foreign)
 Funds generated through the Aruba Electronic Exchange (private placements)
 Funds generated through spin-off effects (profit distribution) due to flourishing
economic activities
The priorities for cash allocation include:
Improvement of ICT technologies
Investment in green energy development
Relocation of the commercial port to Barcadera
Infrastructure for the new free zone area
Investment in entrepreneurial development
Fixed Assets
 Adequate infrastructure (access roads to support logistics)
 Excellent and affordable airport facilities to accommodate the level of flow of
people and goods through aircrafts
 Excellent and affordable harbor facilities to support the maritime logistics
 Sufficient property and warehousing facilities at the freezone to accommodate
new business ventures
 Hi-tech (innovative) buildings to accommodate R&D and learning centers, etc.
 ICT infrastructure / broadband
 Infrastructure for renewable energy
39 | P a g e
8.2 Intangible resources
Relationships
 Well-functioning private-public dialogue platforms
 Different government departments working together
 Good communication with media
Individual capital
 ICT/Technological know-how
 Pro-active governance
 Well-regulated entry of new business ventures (to avoid
intrusive/harmful/unsustainable economic activities)
 Building code regulations (eco-friendly)
 ROP & environmental regulations
 Green/renewable energy know-how
 Know-how on sustainable products and services
 Integrity, transparency, responsiveness of government personnel
 High level of education, skills and experience
Collective capital
 Political stability
 Tax treaties
 Service-oriented workforce
 High-quality education
 Basic and new legislation
 Friendly multi-lingual, -national and –cultural community
 Foreign relationships
 Respected judicial system
 Win-win attitudes and values
 Pilot learning programs
 Community learning programs
 Incentives for innovation
8.3 Natural advantages
 Geographical location
 Availability of wind, sun and water for renewable/green energy & R&D
 Available land (limited)
 Attractive climate (to attract tourists and investors)
40 | P a g e
9. Road Map to achieve aspiration statement
(draft)
Current
strengths:
- Central geographical location
- friendly multi-cultural, - national &
lingual community
- politically stable system
- respectable judicial system
- foreign relations
Aspiration
statement:
“In 2025 Aruba will be a
place where innovative
people will share
innovative ideas in an
innovation-friendly
environment”
Social
Environmental
Economic
Political
Future20252017
2009
2021
Strengths in the
medium-term:
- Central geographical location
- friendly multi-cultural, - national &
lingual community
- politically stable system
- respectable judicial system
- foreign relations
- high-quality education
- tax treaties
- ICT
Strengths in the
long-term:
- Central geographical location
- friendly multi-cultural, - national &
lingual community
- politically stable system
- respectable judicial system
- foreign relations
- high-quality education
- tax treaties
- ICT
- Corporate governance
- technology & infrastructure
- well-functioning platforms
2013
2013
2017
2021
2025
Future
Roadmap - Nation of Innovation
E-medicine
center/national
EMD
E-government
100%
household
broadband
Intellectual
property
protection
Distance
working
(home offices)
Managing
diversity as HR
philosophy
Foreign
Inv.
Platform
0% Import
duties on
green tech.
Business &
Education
Platform Intern’l
Business
Center
50% jobs in non-
tourism service
sector
100% home
computers
100% internet
access learning
centers
Multi-lingual
education
New R&D
facilities/Bsc
program
Education level
75% ISCED
level 2
10% academic
Community
learning centers/
libraries
Inter-scholastic
science
competition
(international)
Non-intrusive
economic
activities
GDP ….
Positive balance
of payment
Impl. ROP &
environmental law
National prize
corp responsibilty
National prize
innovative
entrepreneurship
Local market for
sustainable
products/services
50% energy
needs supplied
by renewable
energy
All new
buildings are
eco-friendly
Policy through publ./
priv. dialogue
(platforms)
25% of new AUA
project financed
through PPDAQ
50% of new AUA
project financed
through PPDAQ
Key
achievements:
 Sustainable society
 Sustainable Technology/
ICT networks
 Highly-developed/
knowledgeable human
capital
 Innovative (economic)
environment
42 | P a g e
10. Working with other commissions
43 | P a g e
44 | P a g e
Commission
name
Statements that reflect common issues Issues that
might
contradict
each other
Cooperation issues and possible
projects
Sustainable
community-
based system
a) Everyone is aware of the importance of energy efficiency and the
need to reduce environmental pollution while conserving local
vegetation and fauna
b) Citizens are life-long learners; education is accessible to all and
citizens engage in extracurricular educational and recreational
activities
c) The education system is further linked to the ever expanding and
changing technological and financial demands
d) The government is effective in allowing for a targeted and rapid
response to social needs and a successful pursuit of individual and
communal aspirations as well as pro-active and decisive initiatives
and a participatory approach.
e) A diversified economy with entrepreneurship that is both part of and
complements the tourist industry
None Involving and engaging
community based stakeholders in
pro-active initiatives and
entrepreneurship
Environment a) Use the media to help educate and create awareness of sustainable
development
b) Stimulate change from within companies and residents through strict
adherence to environmental laws, producing services and goods in an
environmentally sound way
c) The whole community uses energy consciously and efficiently using
the latest technology to keep the environment as least contaminated
as possible, generating green energy by using local accessible
alternative energy sources and refusing, reducing, reusing and
restoring waste as a part of life.
None Creating awareness to ensure a
sustainable environment using the
latest technologies and local
alternative energy sources
45 | P a g e
d) Aruba has developed public participation mechanisms to fortify our
democracy and stimulate the thriving new economy. Therefore
invited guests are welcomed to share our island.
Governance a) Citizens have access to quality information, are taken into
consideration and participate in the policy-development and public
decision-making process.
b) Public and private partnerships are built on trust, knowledge and
acceptance of each other’s unique responsibilities and a structured
and continuous consultation between all stakeholders
None Ensuring that all citizens are well
informed about and have
accessibility to decision-making
processes, working together in
public-private partnerships and
involving all stakeholders
International
Financial
Center
a) The business community in Aruba flourishes with (highly) educated
people, based on the core values of integrity, innovation and
excellence
b) The Government invests in the education of the Aruban people,
stimulates new businesses and focuses on a mixed economic
approach, keeping the population well informed and aware of the
most recent developments in the financial sector
None Diversifying the economy and
emphasizing the need for
investments in highly educated
people, innovation and new
businesses
Lifelong
learning
a) Everybody contributes collectively to the sustainable development of
Aruba through continuous accumulation of knowledge and
development of abilities, talents and attitudes based on every
individual’s potential and values.
b) Individual’s talents and potentials flourish through formal
educational routes, alternative innovative routes and outside the
formal educational system in educational community centers, at
work, at home and through multi-media.
c) By continually learning the society progresses in a sustainable way
and has developed a diverse and dynamic economy
None Creating multiple formal and non-
formal possibilities for life-long
learning
Socio-
economic
structure
a) The Aruban economy is diversified to a broad extent, with transport,
financial services and knowledge-based activities making up for
almost 60% of GDP, driven by high-skilled labor and Aruban
None Diversifying the economy by
investing in high-skilled labor,
ingenuity, creativity and
46 | P a g e
ingenuity, creativity and entrepreneurship. Sustainable initiatives are
stimulated by fiscal incentives
b) Education has become a means to produce human capital in the form
of capable, conscious and productive citizens, respecting each other’s
individual ancestry and cultural traditions and values and offering
equitable opportunities to fulfill individual and social group
aspirations.
entrepreneurship
Sport and
Nutrition
a) The Aruban society has a healthy way of living and is conscious
about the use of natural resources
b) Sport practice has contributed to the development of non-physical
areas such as creating norms and values, fair play, pushing for
perfection, team building, social skills, networking, nationalism, etc
c) Sport facilities are well situated in every neighborhood, practical,
user friendly, environmentally friendly and well maintained.
none Stimulating a healthy way of
living that contributes to well-
being and social skills which in
turn sets the environment for
human inspiration and innovative
ideas to flourish and flow
Sustainable
food supplies
a) Arubans produce most of their own vegetables from their own high-
tech small-scale gardens and catch or breed fish in a hygienic and
environmentally responsible way. They are aware of locally grown
food choices, sound living and food growing practices, eco-friendly
farming, innovative green technology and are willing to experiment
with these
b) Aruba’s success is showcased around the world and has become part
of the attraction of the island and local grown products are sold to
health-conscious tourists and are exported
none Stimulating innovative local food-
production as a healthy living
practice and a new means of
generating income
Sustainable
tourism
a) The tourism product has diversified and reinvented itself with geo
tourism and eco tourism
b) Aruba possesses the systemic tourism intelligence capabilities that
provide stakeholders with the insights, information and intelligence
for innovation towards realizing sustainable tourism in a pro-active,
collaborative, responsible and equitable manner, thereby enhancing
none Synergizing efforts in creating
innovation in both the tourism
sector itself and all business
sectors relating to tourism,
enhancing the overall
sustainability of the Aruban
47 | P a g e
the overall sustainability of the Aruban destination
c) Aruba will innovate and further distinguish itself as a premier
Caribbean destination through the development of new business
models that will create sustainable competitive advantages
destination in a diversified
economy.
Energy
Management
a) Aruba maximizes its use of locally available natural renewable
energy resources and recycles its waste in a responsible and
sustainable way, liberalizing the local energy market and creating
incentive programs to motivate installation of sustainable energy
generation equipment using locally available natural energy resources
b) There are ongoing educational programs to educate the Aruban
community for better ways to manage its energy-usage and to use
technical know-how on sustainable energy generating equipment.
c) The example is set by schools and community centers placing
alternative energy generating equipment and the use of sustainable
powered vehicles for both private and public transportation
none Educating and stimulating
innovative sustainable energy
usage
48 | P a g e
11. Robust and fragile elements
11.1 Robust elements
The elements of the Aspiration Statement, Key Achievements and Milestones in the
Roadmap will build upon themselves, once realizing the basics, which can be done on
a short term. Innovation is a ‘state of mind’, not dependent on critical single activities.
Initial projects will in themselves create the resources needed on the long run.
Many of the Strategic Resources are available, at least as a starting factor. The Free
Zone as a driver of foreign investment is there, and can be used to develop the
Foreign Investment Platform. The Collective Capital and Natural Resources are there,
but need to be improved and protected.
11.2 Fragile elements
Most fragile elements in our plan are inherent to sustainable development. If the NISP
is truly adopted by the whole of Aruba, the fragile elements will receive the attention
they deserve and become robust. Education is a crucial element..
Many of the elements in the plan hinge on a single factor, the most fragile. That is
creating a high level of dialogue and collaboration between the stakeholders
represented in Government, private sector and NGO’s/private citizens, and each
recognizing their individual responsibilities and developing their capabilities. In short,
the Social Architecture described in 4.2-4.4,
Another fragile element is the ability to attract the first investors/highly educated
(returning) workforce. Once these have a positive experience it will become a
resource. If it is not done well the first time around, it will remain a fragile element.
The actions to be undertaken to improve the fragile elements are in the form of small,
relatively simple and straightforward projects in the first years of the NISP, to create a
positive experience and the vision to undertake the more challenging projects that
entail greater change. The Investment Platform is such an example. The stakeholders
all recognize the need to work together to attract foreign investment, however the
current negative atmosphere is a deterrent. With the worsening global economy and
the decline in tourism, steps will have to be taken to develop new business
opportunities. A positive experience can set the stage for the development of similar
platforms for Energy, Education, Health, etc.
49 | P a g e
12. Detailed Implementation/Action plan 2010-
2013
This chapter describes the actions that are required for implementation of the
commission’s opportunity plan.
50 | P a g e
Time
schedule
Description
actions to
obtain the
aspiration
Action by the public
sector and time
frame
Actions by
the private
sector
Identification
of resources
needed by
source:
personnel &
finances
Estimated costs
for
implementation
Responsible
organization for
implementation
and resources
Organization
accountable for
implementation and
resources
2009-2010 E-government Make procedures and
policies more
accessible and easier
to be implemented. A
network of computers
can connect various
government
departments, making
data more accessible,
simplifying
procedures &
decision.
Give relevant
feedback on
how
government
can function to
their
advantage
Personnel has
to accept
change,
recognize
change is
beneficial to
their work
process.
Department of
Information &
automation for
the
infrastructure. Or
the Government
can outsource
this task.
The Government of
Aruba, Dept. of General
Affairs.
51 | P a g e
2009-2010 Implementation
of the ROP &
environmental
law
Dept. of Infrastructure
and Planning. Dept.
of Public Health
give relevant
feedback.
Look at the
long term
benefit of the
law, not going
around it in
order to save
costs on short
term.
Personnel to
educate
population on
benefits of new
law
Dept. of
Infrastructure
and planning;
Dept. of Public
Health
Parliament of Aruba
2010-2014 Raising
awareness for
innovation
Incorporate
innovative projects &
programs. Be
supportive of teachers
and other educators
to bring forward
innovative projects
and programs.
Be supportive
and
recommend
innovative
trainings/
promote
innovative
educational
programs and
projects at a
reasonable
price.
Teachers,
educators,
trainer for
trainers, policy
makers,
government,
school board,
parents,
youngsters
Dept. of
Education; Dept.
of Culture and
labor; University
of Aruba;
community
based groups and
centrums; media
Dept. Of Education; Dept.
of Labor and Culture;
Parliament of Aruba.
52 | P a g e
2010 100% internet
access
Internet access
everywhere, in
learning facilities &
homes. Promotes the
use of internet,
provides a great
infrastructure to
achieve this goal.
More internet
providers in
Aruba by
2013, supply
meets demand,
competence
makes
providers offer
faster and
better internet
continuously.
Businesses and
citizens make
continuously
more use of the
internet. This
brings along
the need of
more high
skilled ICT-
ers.
Government:
good
infrastructure.
Private sector:
internet
providers and all
related services.
Dept. of
Telecommunication;
Internet providers; private
sector.
2011 Foreign
Investment
Platform
Make procedures and
policies to guarantee
transparency in this
business opportunity.
Be transparent,
search ways to
enhance this
business
opportunity
and finance
commercial
businesses.
Law & policy
makers to
adjust current
laws. Players
in the financial
field to
Government,
ATIA, Chamber
of Commerce,
NGO’s
Government, ATIA,
Chamber of Commerce,
NGO’s
53 | P a g e
2012 Intellectual
Property
protection Protect innovative
ideas. Encourage
people to keep
innovating while
protecting their ideas.
But at the same time
giving others the
chance to build on the
idea.
Private sector
knows their
ideas are
protected and
are
encouraged to
continue
innovating and
improving
ideas and
concepts.
Finances are
necessary to
guarantee the
protection of
registered trade
marks and
concepts.
Controllers are
necessary.
Bureau for
Intellectual
Property.
Bureau for Intellectual
Property.
2012 E-medicine
center/ national
EMD
Encourage private
health care incentives.
Medical costs are
covered in AZV.
Control health care
and set standards.
Develop
opportunities
to expand
services based
on innovation
and cross-
border supply
of health care.
Highly skilled
professionals
have to keep
improving
health care
Private sector.
Dept. of Public
Health
Private sector. Dept. of
Public Health
54 | P a g e
2013 National Prize
for Corporate
social
Responsibility
Announce importance
of responsible
entrepreneurship.
Promote CSR among
SMEs as well.
Be involved
and supportive
of CSR.
Realize the
benefits CSR
has for
businesses and
make clear
that CSR is
not only for
multinationals.
Take pride in
winning such
award.
Personnel in all
organization
and business,
on all level are
aware of
importance of
CSR. By 2015,
applicants find
it important to
know what the
contribution of
their future
employer
before they
accept job. The
employee is
eager to know
how he can use
his skills to the
benefit of the
community.
Dept. of
Economic
Affairs, The
Chamber of
Commerce; other
business
associations.
Dept. of Economic
Affairs, The Chamber of
Commerce
55 | P a g e
2013 Business &
Education
platform
Promote innovation in
Educators.
Create a
platform
where
businesses
teach their
experiences,
best practices
exchange,
inspire others
to become
successful
Leaders lead
the platform.
Other will
follow.
Government of
Aruba, dept. of
Economic
Affairs, dept. of
Education.
Private Sector,
the Chamber of
Commerce and
other business
organizations
Private sectors, educators,
citizens.
2013 International
Business Center
Creating the physical
building. In order to
meet its goals, some
policies and laws
have to be adjusted
for Aruba to become
a "real" international
business center.
Implement the
idea behind
the business
center. Keep
innovating and
developing the
business
center to
successfully
achieve its
goal, be
competitive,
not only in
Aruba but
know what is
happening
outside Aruba
as well.
Entrepreneurs
&
professionals.
Players in the
International
business center
need to let go
of the island
concept and
think globally.
Government of
Aruba. Private
Sector, the
Chamber of
Commerce and
other business
organizations
Private sector.
56 | P a g e
13 Monitoring and evaluation 2010-2013
<<pending>>
57 | P a g e
References
Barro, Robert J. (1997) Determinants of Economic Growth: A Cross-Country
Empirical Study. MIT Press: Cambridge, MA.
Dickens, W.T., I. Sawhill & J. Tebbs (2006) The Effects of Investing in Early
Education on Economic Growth. The Brookings Institution, MA.
Luecke, R. & R. Katz (2003). Managing Creativity and Innovation. Harvard
Business School Press. Boston, MA.
58 | P a g e
Annex 1: Conceptual framework: sustainability through innovation
Cash
Fixed Assets
Relationships
Individual capital
Collective capital
Natural advantages
Innovative economic
environment
High developed human capital
Increased innovative
capacity
Product Innovation Service Innovation Process Innovation
Improving current
industries
Developing new
industries/business
models
Entrepreneurial development
Knowledge
Wealth
Competitiveness
Institutionalized
social system
Informal social
system
- Green energy development
- Financial services
- Internet-based services
- Export oriented activities
- ……….
- Tourism
- Retail
- Services
- ...
Strategic resources
Creation of high-
skilled jobs
Higher profits (high
return on
investment)
Sustainable technology & ICT
Sustainable society
Key achievements
Government
59 | P a g e

Nation of Innovation - Aruba Opportunity Plan v2 (Commission Nation of Innovation)

  • 1.
    Commission Nation of Innovation OpportunityPlan Version 2.0 SMART PEOPLE + SMART IDEAS = NATION OF INNOVATION
  • 2.
    1 | Pa g e Nos Aruba 2025 SMART PEOPLE + SMART IDEAS = NATION OF INNOVATION Commission Nation of Innovation Opportunity Plan Version 2.0 October 12, 2009 The information contained in the paper may be published and copied for educational and noncommercial purposes, provided the source is acknowledged.
  • 3.
    2 | Pa g e Content Preface ...........................................................................................................................3 1. Executive summary....................................................................................................4 2. Background information............................................................................................6 2.1 Introduction..........................................................................................................6 2.2 Challenges............................................................................................................6 2.3 Regulatory and institutional framework ..............................................................7 2.4 Sustainable development .....................................................................................7 2.5 Strengths ..............................................................................................................8 2.6 Opportunities........................................................................................................8 2.7 Innovation ............................................................................................................9 2.8 Present stakeholders...........................................................................................10 2.9 Structure of the report........................................................................................12 3. Aspiration and specific objectives for 2025.............................................................13 4. Social Architecture...................................................................................................14 4.1 Key stakeholders................................................................................................14 4.2 Relationship between these stakeholders (formal and informal).......................15 4.3 The influence stakeholders have on the desired outcome of our opportunity ...15 4.4 The influence stakeholders have on each other .................................................15 4.5 Detailed social architecture................................................................................16 5. Desired outcomes ....................................................................................................24 5.1 Key achievements ..............................................................................................24 5.1.1 Innovative (economic) environment...........................................................24 5.1.2 Highly-developed/knowledgeable human capital.......................................26 5.1.3 Sustainable Technology/ICT networks.......................................................27 5.1.4 Sustainable society......................................................................................28 5.2 Alignment with different sustainability themes and statements ........................29 6. Main stakeholders ...................................................................................................30 7. Actions to be done...................................................................................................33 7.1 Creating an innovative economic environment .................................................33 7.2 Building up a high-developed human capital ....................................................34 7.3 Developing sustainable technology & ICT........................................................35 7.4 Sustainable society.............................................................................................36 8. Strategic resources needed .....................................................................................38 8.1 Tangible resources .............................................................................................38 8.2 Intangible resources ...........................................................................................39 8.3 Natural advantages.............................................................................................39 9. Road Map to achieve aspiration statement (draft) .................................................40 10. Working with other commissions..........................................................................42 11. Robust and fragile elements..................................................................................48 12. Detailed Implementation/Action plan 2010-2013 ................................................49 13 Monitoring and evaluation 2010-2013...................................................................56 Annex 1: Conceptual framework: sustainability through innovation............................0
  • 4.
    3 | Pa g e Preface The commission Nation of Innovation (NOI) is one of the commissions forming part of the project Nos Aruba 2025. The objective of Nos Aruba 2025 is the institutionalization of an integrated and strategic planning process where the coordination between the relevant stakeholders is encouraged taking into consideration guidelines for sustainable development. The most important outcome of Nos Aruba 2025 is the formulation of a National Integrated Strategic Plan (NISP). The definition of this plan will stimulate the coordination between the concerned stakeholders. The primary goal of the commission NOI is to develop a plan and stimulate ideas to promote innovation and entrepreneurship on Aruba in order to reach sustainable economic prosperity for our citizens. The commission believes that Aruba can only prosper in the times ahead if the talents of the country’s people are unlocked. Innovation should flourish across every area of the island’s economy, and in particular in the industries where high value added businesses can prosper and grow. Innovation will be the key to some of the biggest challenges facing Aruba’s society, like economic diversification, energy development, sustainable food supply and other areas that require long-term sustainable solutions. We can innovate by investing in people and knowledge, unlocking talent at all levels, expanding our research capabilities, enhance collaboration between key stakeholders, elevate awareness and provide incentives to stimulate innovative ideas and initiatives. In all this there is an exciting challenge for the private and public sector, third sector organizations, schools and universities. A small group of motivated individuals can spark off innovative thinking, but only if we all work together (individuals, government, private sector and NGO’s) we can create a Nation of Innovation by 2025. October 2009 Commission members: Lucia White (chairwoman) Mercedes Levenston-Willems (secretary) Edward Erasmus Roxanne Wolff Regine Croes Marisa de Kort (PMT member)
  • 5.
    4 | Pa g e 1. Executive summary In 2025 Aruba will be the place where innovative people will share innovative ideas in an innovation-friendly environment. Aruba will be an internationally known center for innovative businesses. The island has all resources necessary to continue improving and to diversify the economy. As a small island, Aruba will be an international example of how to benefit from innovative sustainable technologies and ICT networks on all levels in daily life. A well developed economy, high quality jobs and employees who are viewed as precious human capital. Continuous investments are made, and Arubans pro-actively create win-win situations and (new) business opportunities. To become an innovative country, the commission will focus on four key achievements, which are: 1. To create an innovative economic environment; Creating an environment that is featured by a collaborative and synergetic approach to economic development. Entrepreneurs are considered as the drivers for innovation. Two crucial aspects are accentuated to accomplish this:  Generating awareness for innovation  Developing (inter-)organizational skills and stimulate attitudes for management of innovation. 2. To build up high-developed human capital to sustain the workforce; This achievement focuses on the attraction of talented people and also on the elevation of the level of education of the workforce in order to have high developed innovative people to sustain economic growth.  Attracting (local) talented people (knowledge immigrants)  Elevating level of education of the workforce  Fostering innovative thinking 3. To attract sustainable technology and ICT to benefit the community and that will function as a pull-factor for further innovation; To develop an Aruban community in which sustainable technology and ICT can develop and flourish to the benefit of all Aruban citizens. By facilitating access to these technologies, the Aruban people, entrepreneurs and government institutions will be able to boost their innovative capacity to the wellbeing of all. 4. To develop and maintain a sustainable society. A society that strives to be sustainable accepts a duty to seek harmony with other people in that society and with nature. Innovation is driven towards long-term sustainable solutions for current and future challenges. Lifestyles will adapt and innovative development paths will be created to respect and work within the island’s nature resources. Key stakeholders in society will promote values that support these new ethics and discourage those that are incompatible with a sustainable way of life. The social architecture will give a description of future relationships needed between stakeholders and what is necessary in order to achieve the sustainability of the aspiration statement of this opportunity plan. A list of achievements is given in the
  • 6.
    5 | Pa g e aspiration statement. Furthermore a link will be made between the aspiration statement, the achievements and the sustainability themes and statements that were brought forward by the members of the community. Finally, the action plan and the roadmap will be presented, providing an overview of findings and actions to be taken for implementing and promoting innovation in Aruba. Afterwards a detailed implementation plan will be presented, and measures to be taken for evaluation and monitoring.
  • 7.
    6 | Pa g e 2. Background information 2.1 Introduction By hard work, determination and the capability of joining efforts in trying times, the Aruban people have been able to make Aruba one of the most successful islands in the Caribbean region. One of the most significant achievements is the Aruban-type affluent society with a high level of education, social and health-care services available to everybody, little or no unemployment and the high standard of living for a large group of Arubans. The elements of Aruba’s positive core, which include the well-developed tourism industry, international orientation, social security system, political stability, safe and secure environment, hospitable multi-cultural population and values together form the social heritage have all supported our success. 2.2 Challenges Despite the many positive aspects, Aruba is facing serious challenges. The chosen path for further economic development, being tourism, is placing a tremendous pressure on our precious resources in both a direct form and an indirect form. Hotel buildings and dedicated beaches reduce our natural resources and the import of migrants to fill job openings puts a considerable strain on our infrastructure and increases the need for more housing, consumption, waste management, energy usage, education, social security system and health care. Economic development through tourism also contributed to a sense of loss of cultural heritage and an increased income gap. Furthermore entrepreneurial development has been lacking a sense of creativity, since most small and medium enterprises have been focusing solely on providing the same products and services towards the same target groups (tourists), resulting in a saturated ‘more of the same’ market. The consequence of this is multiple: capital investments of SME’s generate low or negative rate of return, little variation in terms of employment opportunities for the young generation, low productivity, low elasticity (i.e. ability to adapt to a changing environment), lack of knowledge development, and a high focus on competition instead of developing new industries, etc. Finally, the current economic structure which is featured by a flat employment pyramid with a very ‘broad’ bottom consisting of a large number of people with low income creates many challenges for the social system. One clear example is the General Medical Insurance Fund (AZV), which is operating with a huge deficit not only due to the rising healthcare costs, but also due to the low premium contribution of the large group of people earning a low income compared to their level of consumption of healthcare services covered by the fund. Another consequence of the relatively few highly skilled and highly paid jobs is a lack of drive for higher educated and experienced Arubans to return to their country. Research proves that economic wealth, potential and survival of countries is directly related to the education and skills of its people (see for example: Barro 1997; Dickens, et al 2006). The current level of education on Aruba is extremely low and
  • 8.
    7 | Pa g e government investments in the segment are much lower than can be expected to promote a growth in GDP based on human capital, our only core natural resource. 2.3 Regulatory and institutional framework Regulatory framework The current regulatory framework is insufficient, and even counterproductive, to introduce many forms of innovation into the business sector, and the population in general. Labor laws, the reigning vision on human resource management and the traditional labor unions, are not conducive to innovation. Productivity is low and although many voices have been raised to improve this, few concrete measures have been taken. Too often labor is seen as a ‘cost’ of doing business, rather than an asset to be invested in. The immigration laws with a maximum stay of three years do not promote productivity, quality and specialization within the imported labor force. Nor is it attractive for investors. The investors themselves are made to feel unwelcome, and it is very difficult to bring in the necessary knowledgeable employees to at least start up a business. The proposed change to be more flexible towards ‘knowledge immigrants’ (kennismigranten) still does not solve the problem within the system itself (slow and obscure), nor does it take the investors themselves into consideration.. The fiscal changes that have taken place (IPC) have not shown the expected results. Aruba’s financial industry is small compared to Curaçao, for example, but has definite potential. The introduction of the turnover tax (BBO) for exports (1% for goods, 3% for services) is detrimental for Aruban businesses considering expanding across the borders. Institutional framework The institutional framework has most of the necessary elements in place to support economic growth, within the government as well as in the private sector (departments and organizations). However, to create the synergy and creative energy necessary for (social and) economic growth and diversification, communication and cooperation between the elements is sorely lacking. There is an atmosphere of distrust and negativity between the private and public sector and within the public sector. The public sector furthermore is challenged by limited funds to allocate for projects regarding economic diversification and growth (such as Investment Promotion). The current economic downturn has forced the local business community to focus on ‘survival’ rather than growth. 2.4 Sustainable development In the light of the current global financial crisis and the existing challenges to promote economic growth and diversification, we are facing a fundamental sustainability question: How can we maintain and finance an affluent society given our limited (physical) resources, our mono-industry focus (tourism) and a frail social system due to an unbalanced economic structure?
  • 9.
    8 | Pa g e 2.5 Strengths The challenge is to expand upon existing strengths and improve these where necessary to be able to grasp and create opportunities. Emphasis should be put on creating a spin-off and synergy in social-economic terms to expand the basis of generating (future) wealth for all Arubans. The size of Aruba, small and orderly, is an advantage that would make many other countries jealous. The current strengths are generally the same strengths that have already made Aruba one of the most attractive and successful tourist destinations in the world. Examples of our strengths are:  Service-based economy  Multi-lingual and literate society  Political stability  Independent judicial system  Sound banking system  Telecommunications  International orientation  Part of the Kingdom of the Netherlands  Safety and security However, there is a need to expand on these strengths. Examples of necessary additions are:  Innovative fiscal products to stimulate investments and innovation  Labor laws and human resource management that promote productivity and flexibility  Access to investment capital facilities  Higher education levels  Cooperation and communication between stakeholders  Entrepreneurial development focused on economic diversity 2.6 Opportunities The opportunities that can be tapped into right away are the promotion of local segments of the economy and the attraction of international investors to benefit from Aruba's geographical location, in combination with fiscal and other advantages (the free zone). Short term opportunities are identified and described in the Government policy document ‘Vision, Curashi y Disciplina’ (2002). Focus points are SME’s, logistics and transport, financial services sector and the ‘knowledge economy’. Cross-sector issues to support these and other developments are also described, such as fine-tuning of public and private sector development, company establishment policy, fiscal climate, statistical and financial-economic information, international associations and agreements, etc. Other economic diversification opportunities are described in the FIAS report (2007) such as developing medical tourism and education opportunities.
  • 10.
    9 | Pa g e In the meantime, additional opportunities have been identified, such as alternative energy and showcasing. The abolition of free zones on the BES-islands may offer an opportunity and the increased trade between Latin America and the EU offers definite possibilities. The addition of a solid and growing International Financial Center will assist in making Aruba more attractive for international businesses. The new free zone legislation offers the possibility to offer services from the free zone, a large step in modernizing the free zone and diversifying the activities. The importance of not only diversification, but also innovation, is stressed in the report ‘Vision pa Gobernacion di Aruba 2009-2013’ (May 2009) written by the Chamber of Commerce and Industry. Innovation and change is described in regards to the investment climate, integral planning, spatial planning and pro-active promotion of Aruba as a tourist and business destination. The opportunities are there. However, they are not being realized. Many different issues that have delayed or prevented action have been described above. One of the fallacies in current thinking is the misassumption that, by realizing these and other economic opportunities, economic development will follow and continue. National economic planning, and regular business planning, makes use of assumptions and models, and when these assumptions fail and the models don’t fit, development stumbles and/or halts1 . There needs to be a continuous process of innovation in thinking and action. 2.7 Innovation Definition and building blocks To ‘boost’ the power of economic development and growth we have added the element of innovation. Traditionally the term innovation has been defined as “the act or process of inventing or introducing something new” or as “a new invention or way of doing something”.2 From an organizational perspective innovation can be defined as follows: “Innovation . . . is generally understood as the successful introduction of a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.” (Luecke and Katz, 2003) In this report innovation is viewed from a broader perspective in the sense that not just business organizations, but the whole community (government, NGO’s and inhabitants included) contribute to the further innovation of all areas of society to benefit of prosperity. In developing innovation on a nation-wide scale there are certain ‘ingredients’ that need to be present. In his opening speech during the Intel Developer Forum 2008, Craig Barret, Chairman of Intel brought forward in a very comprehensive way the three key aspects required for innovation and economic success in this era. A fraction of Mr Barret’s statement is quoted below: 1 What if the world had listened to this: “There is no reason anyone would want a computer in their home.” — Ken Olson, president, chairman and founder of Digital Equipment Corp (DEC), maker of big business mainframe computers, arguing against the PC in 1977 2 Encarta® World English Dictionary.
  • 11.
    10 | Pa g e “What’s the right formula to ensure your economic success?..there are three things you can focus on: you need smart people (good education system), you need smart ideas (you need to invest in R&D) and you need the right environment for collaboration to get smart people together with smart ideas to invest in innovation.” The commission believes that these three key aspects ‘smart people’, ‘smart ideas’ and ‘the right environment for collaboration’ are the building blocks for developing innovation for Aruba. It should be emphasized that innovation should not be seen as a goal on itself, but as a means to enable Aruba to pursue sustainable economic development on the long run by creating a ‘state of mind’3 so that society as a whole - individuals, private and public sector - can grasp and develop new opportunities. This will ensure the sustainability of future developments. International best practices A very interesting article published in the Harvard Business Review4 describes the strategies undertaken by very successful innovative societies, such as Singapore, China, Finland, Japan, etc. An interesting aspect is that innovation and innovative success do not directly correlate with high-level technology. These countries’ approaches to innovation strategy are characterized by “creating forward-looking education, and talent development policies, pouring money into large-scale initiatives, and snapping up new assets in the form of intellectual capital and infrastructure”. The companies seeking innovative environments, such as high tech, will seek out these strategies and use them to their business advantage. The article further describes four different models that various countries have chosen as the basis of their success. Aruba is in the position to study the success factors and combine them with our natural advantages, creating our own special brand to sell. It is interesting to note that the huge success of Finland is the result of “strong governmental stewardship”, while in other cases education facilities or fiscal facilities are crucial. This proves the synergy necessary with the other Nos Aruba 2025 commissions. 2.8 Present stakeholders There are different stakeholders that can be identified by the commission as pivotal in terms of the resources they possess and the contribution they can make to the realization of the commission’s goals. Below is a summary of the key present stakeholders, with a brief explanation of their current attitudes and roles (as perceived by other stakeholders) as well as an outline of their importance (now and in the future) in relation to the commission’s opportunity plan as outlined in this report. 3 "Without changing our patterns of thought, we will not be able to solve the problems we created with our current powers of thought" Albert Einstein 4 “Tapping the World’s Innovation Hot Spots”, John Kao, Harvard Business Review, March 2009
  • 12.
    11 | Pa g e Stakeholders Current attitudes and roles5 Importance in relation to the commission’s opportunity plan Parliament & council of ministers Focus on short-term solutions; Concentration on balanced budget: increasing income through higher taxes and cutting expenditures (esp. investments). View utility companies as ‘cash cows’. ‘Our way or the highway’ attitude. Long-term vision: balanced economy; focus on innovation and provide the means, incentives and support to develop new economic industries. Conservation of positive core Reduce barriers and duties for the development of green energy projects (domestic and commercial). Fostering mutually respectful diverse ways of connecting with relevant partners in community (private sector & NGO’s) Government Departments Fragmented, short-term policy; low productivity; insufficient funding Action-based approach to clear priorities Chamber of Commerce/ATIA & other business associations Advisory role in government decisions is often disregarded. Limited power to influence outcomes in macro-economic context. Important partners in public-private dialogues, focusing on economic sustainability and promotion of innovative entrepreneurial development. ATA/AHATA Focus solely on tourism in quantitative terms. Tourism industry is separate from other industries. Exploring synergy between tourism and other industries; innovating the tourism product. Conserving the positive core. Utility providers Slow reaction to the development of green energy. Cost-benefit is measured based on ‘here and now’ instead of ‘future trends’. Focus on green energy and work towards independence from foreign fossil fuel by investing in sustainable local resources to generate energy and water supply. Department of education, schools & universities Focus on a one-size-fits-all selective foreign-oriented learning environment where students have to accommodate the system for the benefit of the ‘happy few’. Under funded. Focus on customized learning environments where the best in each individual is nurtured for the benefit of the whole community. NGO’s Advisory role in government decisions is often disregarded. Limited power to influence outcomes in macro-economic context. Important partners in public-private dialogues, focusing on community based initiatives and innovative entrepreneurial development. Students / next generation Lack of awareness and involvement on sustainable development themes. Lack of positive role models. Future members of the workforce, innovators, co-creators of new industries embracing sustainable development. Trade unions Narrow HRM vision. Protect short term ‘personal’ interests. Innovators concerning productivity and labor motivation; educators. Partners in public-private dialogue. ICT Providers Local instead of international focus, not making use of available technologies. Low standards, too expensive. Provides necessary technology to support innovation; international focus. 5 According to stakeholders
  • 13.
    12 | Pa g e 2.9 Structure of the report The report starts with the aspiration statement of the commission (Chapter 3). In Chapter 4 the social architecture will be presented, which is a description of the future relationships needed between stakeholders and what they must do including their role in achieving the sustainability of the aspiration statement of this opportunity plan. Chapter 5 will elaborate on the desired outcomes. The desired outcomes entail the list of achievements the commission aims for based on the aspiration statement. Furthermore a link will be made between the aspiration statement, the achievements and the sustainability themes and statements that were brought forward by the members of the community. Chapter 6 will describe the main stakeholders needed to obtain the desired outcomes outlined in the previous chapter. In Chapter 7 the action plan will be presented, which includes a list of concrete actions to be done to achieve the desired outcomes, based on the question: what-who- when. Chapter 8 will focus on the strategic resources that are needed to execute the actions provided in the previous chapter. Chapter 9 will present the Roadmap, which gives an overview of all the information gathered from the previous chapters grouped by Social, Economic, Environment and Political (SEEP) categories in the form of a wedge. In Chapter 10 an overview is provided of the commissions with who the commission Nation of Innovation will have to collaborate and synergize in order to realize certain achievements or actions stated in this plan. Chapter 11 will present the robust and fragile elements of the opportunity plan based on scenario stress tests performed. Some actions are provided to make the fragile elements achievable. A detailed implementation/action plan will be presented in Chapter 12 for the period of 2010 – 2013. Lastly, in Chapter 13 a detailed description is provided how monitoring will take place, including actions, indicators for evaluation and monitoring and the timeframe.
  • 14.
    13 | Pa g e 3. Aspiration and specific objectives for 2025 This chapter highlights the aspiration statement of the commission. The aspiration statement is a description of how the commission sees Aruba in 2025 and which key aspects contribute to the country’s success. The aspiration of the commission is as follows: Smart People + Smart Ideas = Nation of Innovation In 2025 Aruba will be the place where innovative people will share innovative ideas in an innovation-friendly environment. Aruba will be an internationally known center for innovative businesses, offering a variety of services, based on our geographical location, our friendly multicultural, multinational and multilingual community and our stable political and trustworthy judicial system. Our well-developed tourism services, our favorable fiscal and financial incentives and our global connections are used in synchronized way to continuously improve and diversify our economy. As a small island state we are an international example of how to benefit from innovative sustainable technologies and ICT networks on all levels in daily life. International businesses are eager to showcase their most innovative products and services on our island within a unique concept of a real-life Caribbean EPCOT Center. We tickle international curiosity and provide a spin-off for high quality education and tourism. We provide the best regional transportation services and are a center of global export for goods and services. Our well developed economy is providing high quality jobs and employees are viewed as precious human capital. Therefore, continuous investments are made to develop human potential and Aruban citizens will be innovative global citizens, and through life-long learning remain well informed and opinionated and are able to continuously and pro-actively create win-win situations and (new) business opportunities.
  • 15.
    14 | Pa g e 4. Social Architecture The social architecture describes the future relationships needed between (future) stakeholders and what they must do including their role for the sustainability of the aspiration of the opportunity described by the commission. 4.1 Key stakeholders The key stakeholders that need to be involved or need to exist in the future are listed below: Government/semi- government Private sector NGO’s and private citizens  Parliament  Government (economy, education, fiscal, legal, infrastructure, spatial planning, intellectual property)  Community centers and libraries for life long learning  (Higher) education providers  Early childhood education providers  Public healthcare providers  Business organizations (ATIA, Mambo, SNBA, etc, old and new forms)  Chamber of Commerce and Industry  Utility providers  ICT providers  Investment fund providers  Banks  Foreign and local entrepreneurs  Social entrepreneurs  (Digital) press & media  Research & Development facilities  E-learning facilities providers  (Renewable) energy providers  Healthcare Systems (for profit)  Education institutions, language centers (for profit)  Free Zone Aruba  AAA  APA  Transportation providers  Architects/construction companies  Insurance Providers  NGO’s (environment, business, education, human resources, consumers)  AHATA/ATSA  Role models, action- based leaders (business, education, environment, health, sports, social)  Students/next generation
  • 16.
    15 | Pa g e 4.2 Relationship between these stakeholders (formal and informal) The relationship between the stakeholders is characterized by a shared vision concerning the sustainable development of Aruba, and the belief and willingness to act in creating economic activities to support this vision. The stakeholders all have a vested interest in creating and maintaining an intensive dialogue regarding all issues related to sustainable development. In general, the dialogue has the form of a ‘platform’, covering various issues, such as Education, Health Care, Energy, etc. An important platform to be developed for the projects as described in the opportunity plan is an ‘Investment Platform’, exploring and attracting inward investment and promoting export. Participants partake in the platform discussions based on generally accepted responsibilities and competencies. 4.3 The influence stakeholders have on the desired outcome of our opportunity In general terms the influence stakeholders have on the desired outcome can be summed up as follows: Government: provides the policy framework and collective means Private sector: creates, facilitates and makes use of (economic) opportunities NGO’s/private citizens: monitors the vision and tests plans and projects for sustainability, can partake in developing and managing economic opportunities 4.4 The influence stakeholders have on each other Each stakeholder is a stakeholder for the precise fact that they create and/or control one or more of the strategic resources, and can individually influence the outcome by participating or withholding support. Optimal cooperation and gearing the activities to one another will guarantee effective and efficient outcomes, but also requires communication. The platforms should be seen as the means to create the necessary communication between the various stakeholders. The synergy that is created through dialogue and cooperation is the greater sum of the individual participants.
  • 17.
    16 | Pa g e 4.5 Detailed social architecture Stakeholders Power to advance actions Interest in the aspiration Role/involvement in execution of actions Influence on other stakeholders Relationship with other stakeholders6 Aspiration for 2025 Parliament & council of ministers High High (political gain) Initiate and pass legislation/determine policy priorities and allocate funds (budget) High level of influence. Proper legislation, policy and allocated funds can greatly help stimulate innovation. Formal. They respect and support the role of private sector as drivers for innovation, as well as the role of NGO’s and private citizens. Partnerships.. Parliament & council of minister embrace innovative initiatives and priority is given to legislation and budgetary funds to support new ideas and industries. Community centers and libraries for life long learning Medium High Support the formation of human capital Low. Facilitate learning opportunities. Passive approach to stakeholders Formal and informal. Partnerships. Participate in dialogue, initiate projects and respond to specific requests. Attract and stimulate teachers and students from the general population. Professionally developed institutions providing high quality and demand- driven learning programs to the benefit of the labor force and community in general (Higher) education providers Medium High Support the formation of human capital Low. Facilitate learning opportunities. May contribute to development of research programs. Formal and informal. Partnerships. Participate in dialogue, initiate projects and respond to specific requests. Professionally developed multi-functional institutions providing high quality and demand- driven learning programs to the benefit of the labor 6 We assume that the stakeholders will have developed the social architecture as described in 4.2-4.4. Dialogue and formal platforms have been instituted.
  • 18.
    17 | Pa g e force and community in general. Actively involved in research to the benefit of general interest. Early childhood education providers Low High Contribute to the early development of innovative skills and attitudes Low. Initiate learning curiosity during early childhood. Formal and informal. Participate in dialogue, initiate projects and respond to specific requests. Professionally developed institutions providing high quality developmental programs for early childhood care and education to both children and parents (Public) healthcare providers Medium High Develop opportunities to expand services based on innovation and cross-border supply of health care. Medium. Drivers for innovation and improvement of the healthcare industry. Formal and informal. Participate in dialogue, initiate projects and respond to specific requests. Offer top quality healthcare to the local population, support medical tourism Business organizations (ATIA, Mambo, SNBA, etc, old and new forms) High High Important partners in public-private dialogues, focusing on economic sustainability and promotion of innovative entrepreneurial development. High. May act as drivers and take initiatives to greatly influence the business sector Formal. Work closely with the Parliament and the government in a private-public platform to formulate long-term policies Informal. Can influence their individual members. Drivers of entrepreneurial innovation and supporters of life-long learning
  • 19.
    18 | Pa g e Chamber of Commerce and Industry High High Important partner in public-private dialogues, focusing on economic sustainability and promotion of innovative entrepreneurial development. High. Will have to play a pivotal role in educating, informing and inspiring present and future entrepreneurs to develop new business ventures Formal and informal. Participate in dialogue, initiate projects and respond to specific requests. Offers services and advice, education to support entrepreneurial innovation. Utility providers High High Advice in the development of regulations for green energy development High. Possess concessions and exclusive rights to deliver utility services. High influence on all prices. Ownership of all utility infrastructure which may influence actions of all users. Formal. Provides services on the basis of market needs Offers top quality service and technology based on sustainability. ICT providers High High Provide state of the art ICT services High. Provide infrastructure for ICT users. Businesses and individuals rely 100% on the quality, efficiency and availability of their services. Formal. Provides services on the basis of market needs Provide the latest trends in ICT technology and innovation to help achieve a state-of-the-art nation. Investment fund providers Low High Provide affordable and innovative investment products, also for SME’s Low Formal. Provides the services on the basis of market needs Aruba has a top rating and is an example for creative and responsible SME investment funding.
  • 20.
    19 | Pa g e Banks High Medium Provide financial means to support innovative industries High. Provide capital, define interest rates and stipulate regulations and conditions for (new) business ventures. Market developments are highly influenced by the level of credit lending. Clients rely on the accuracy of the banking system and supervision of the Central Bank Formal. Capital is extended through formal contracts, which are also subjects to regulations of the Central Bank. Banks are transparent and stable institutions, who offer competitive interest rates and lending conditions to help develop innovative business, industries and the economy in general. Aruba Electronic Exchange High High Facilitate access to local and foreign capital to finance commercial projects Medium. Facilitate alternative modes for attracting capital to support investments Formal. Capital is arranged through formal contracts, which are also subjects to regulations of the Central Bank. The AEX is a well- developed, internationally renowned investment platform to generate necessary capital. Foreign and local entrepreneurs High High Drivers for innovation; develop and successfully implement new business ventures Medium. Business by example. Informal. Generate highly profitable, innovative business opportunities according to sustainability. Social entrepreneurs Medium High Develop enterprise ventures with both social and commercial purposes. Low. Informal. Develop business opportunities with social benefit.
  • 21.
    20 | Pa g e (Digital) press & media Medium Medium Promote innovation and sustainability. Facilitate access of information to the general public High. Informal. Provide accurate, accessible, relevant and objective information. Disburse innovation. Research & Development facilities Medium High Drivers for innovation; develop and successfully implement new business ventures and/or fulfill social needs. High. Informal. Generate innovative business opportunities according to sustainability. Function as a learning facility E-learning facilities providers Medium High Support the formation of human capital Low. Facilitate learning opportunities. May contribute to development of research programs. . Formal and informal. Participate in dialogue, initiate projects and respond to specific requests Professionally developed institutions providing high quality and demand- driven learning programs to the benefit of the labor force and community in general. Actively involved in research to the benefit of general interest. (Renewable) energy providers High High Drivers for innovative (renewable) energy provision. Provide technological know- how and (partially) invest in the development of energy projects. Low Formal and informal. Participate in dialogue, initiate projects and respond to specific requests Provide an international showcase of best-fit technology using available and renewable resources
  • 22.
    21 | Pa g e Healthcare Systems (for profit) Medium High Develop opportunities to expand services based on innovation and cross-border supply of health care. Medium. Drivers for innovation and improvement of the healthcare industry. Formal and informal. Participate in dialogue, initiate projects and respond to specific requests. Offer top quality healthcare to the local population, support medical tourism Education institutions, language centers (for profit) Medium High Support the formation of human capital Low. Facilitate learning opportunities. May contribute to development of research programs. Formal and informal. Participate in dialogue, initiate projects and respond to specific requests. Professionally developed institutions providing high quality and demand- driven learning programs to the benefit of the labor force and community in general. Actively involved in research to the benefit of general interest. Free Zone Aruba High High Attracts new export- driven business ventures Medium Formal and informal. Highly involved in developing business opportunities and attracting foreign investment World class business center, attracting high- value, high quality businesses, using local professionals AAA High High Provide the logistics to support (new) economic activities Low Formal and informal. Responds to international developments and national needs. Regional hub for passengers and freight.
  • 23.
    22 | Pa g e APA High High Provide the logistics to support (new) economic activities Low Formal and informal. Responds to international developments and national needs. Regional hub for freight and home port for cruiseships. Transportation providers Medium High Provide the logistics to support (new) economic activities Low Formal Aruba is a crucial hub in their regional network Architects/constru ction companies Low Medium Willingness to use alternative building materials and designs Low Formal Use innovative materials and designs, ‘Aruba Design’ is a trademark. NGO’s (environment, business, education, human resources, consumers) High High Monitors and tests plans for sustainability, can initiate and partake in specific actions. High Formal (dialogue, platforms), informal (members) Highly professional and influential organizations, locally and internationally AHATA/ATSA Medium Medium Support and diversify the sustainable development of the Aruban tourist product Medium. Formal and informal, increasing the positive core Aruba is still a top destination choice, because of sustainability Current students/future workforce members High High Future members of the workforce, innovators, (co-)creators of new industries embracing sustainable development. Low Informal. Participation in discussions to get interest for generation related issues. International participation in forums and competitions.
  • 24.
    23 | Pa g e Role models, action-based leaders (business, education, environment, health, sports, social) High High Drivers of positive thinking and action High Informal. Discuss, promote, and persuade the development of the necessary framework to develop opportunities to excel. Every (young) citizen wants to develop their full potential and give to society.
  • 25.
    24 | Pa g e 5. Desired outcomes This chapter provides an overview of the specific outcomes the commission wants to obtain based on the aspiration statement described in chapter 3. Innovation knows many dimensions and the ways it can be stimulated and further developed can be approached from different angles. To accomplish innovation for Aruba, the commission will focus on four key achievements, which are: 1. To create an innovative economic environment; 2. To build up high-developed human capital to sustain the workforce; 3. To attract sustainable technology and ICT to benefit the community and that will function as a pull-factor for further innovation; and 4. To develop and maintain a sustainable society. Nation of Innovation High developed human capital Innovative economic environment Sustainable technology & ICT Sustainable society Graph 1: Key achievements for 2025 Each of these achievements is further discussed in the paragraphs below. 5.1 Key achievements 5.1.1 Innovative (economic) environment Creating an environment that is featured by a collaborative and synergetic approach to economic development between key representatives of the business community, investment promoters, foreign investors and the government entities in order to generate value-added income without compromising the resources and composition of the workforce. Entrepreneurs are considered as the drivers for innovation who act as
  • 26.
    25 | Pa g e engines of growth, harnessing opportunity to develop product, service and process innovations as well as new industries to fuel economic advancement. In basic terms an innovative environment from the commission’s point of view stands for a community where people want to bring great ideas and collaborate to successfully implement them. To create such an environment the commission accentuates three crucial aspects:  Raising awareness for innovation.  Developing (inter-)organizational skills and stimulate attitudes for management of innovation.  Develop/attract feasible short-term innovative business ventures (new industries) to create quick wins which should contribute to paving the path towards further innovation. Raising awareness for innovation To start with innovation it is important to start with changing people’s mindset in a particular environment. While it is easy to condemn the current passive mindset, it is not easy breaking out of it. Generating awareness for innovation is a good starting point to make the shift. Some general strategies for raising countrywide awareness for innovation are the following:  Introduce a National Innovation Awards: an award that recognizes achievements in innovation that benefit the Aruban economy and society with the broader aim of strengthening the national innovation culture and awareness at all levels of industry, in the public sector and academia.  Introduce innovation programs as part of schools curriculum, community programs, sports, arts and culture. Developing (inter-)organizational skills and stimulate attitudes for management of innovation In developing skills and attitudes for innovation the following goals will be pursued:  Develop IMEs (Innovation Management Course for Executives): IMEs goal should be to develop new management skills, improve vision and business skills, and facilitate the application of innovation and new technologies in individual businesses of participants based on using technology to create new products, processes or services. The course should also explain how entrepreneurs may access resources to benefit their own businesses. This course will help SMEs innovate successfully through accessing R&D support for new ideas, and government institutional and financial support services.  Develop strategic action-based thinking in both the government and private sector.  Develop a collaborative network to exchange innovative ideas and information.  Create networks and facilitate access to financial means.  Focus on the development of scientific research to support decision-making.
  • 27.
    26 | Pa g e Develop/attract feasible short-term innovative business ventures Feasible short-term business ventures that be developed in Aruba are the following:  International Financial Center  International Business Center  Aquaculture All three business ventures may conduct to ‘spin-off’ activities, especially in the areas of education, research and development. 5.1.2 Highly-developed/knowledgeable human capital Achieving a highly educated workforce that is perceived as precious human capital and who through knowledge and skills is able to greatly contribute to further innovation and who is empowered to support the development of new business ventures. Each individual is offered the opportunity to develop to its full potential. This achievement focuses on the attraction of talented people and also on the elevation of the level of education of the workforce in order to have high developed innovative people to sustain economic growth. Attracting (local) talented people (knowledge immigrants) To help develop Aruba as a destination of innovation, local talented people will have to be attracted from abroad. Priority should be given to the attraction of local graduates who are residing in a foreign country7 to fill vacancies in areas where high- skilled jobs will be required. There are many reasons why local-born professionals should be chosen over import of (temporary) foreign skilled people. In many cases foreigners come to fill high positions but leave in a few years without sharing their knowledge and experience gained at their work with locals. A local-born professional will have the tendency to be more committed and to be more open for sharing skills and experiences since he is making a contribution to his country of birth. Elevating level of education of the workforce Efforts should be made on different levels to increase the quality of the labor force in terms of education and training. A more educated labor force is more mobile and adaptable, can learn new tasks and new skills more easily, and can use a wider range of technologies and sophisticated equipment (including newly emerging ones). A well-prepared workforce is also more autonomous and thus needs less supervision, and is more creative in thinking about how to improve the management of work. All of these attributes not only make a more highly skilled worker more productive than a less skilled one but also enable a work place that employs more educated workers to organize differently, manage differently, choose technologies and equipment differently, and adjust better to changes necessitated by competition, by technical advances, or by changes in consumer demand. Skills lead to more skills and new ways of doing business, workers learn from one another, and firms adapt their technology and their use of capital to the skills of the available workforce. The benefits of having a more educated workforce accrue to 7 Usually the country in which they studied
  • 28.
    27 | Pa g e everyone, not just to the organization where these individuals are employed at. Further, these kinds of indirect (or spillover) effects for the economy as a whole may be especially important in an increasingly competitive global marketplace. Lastly a more educated workforce may produce a less crime-ridden and healthier environment with better functioning civil institutions and all the benefits that flow to the business sector from that environment. To support people to achieve higher levels of continuous education both the formal and informal education sector should provide custom-made demand-driven opportunities to develop the talents and learning potentials of all citizens optimally. By synergizing the efforts of early childhood care and education providers, community centers and libraries, formal and informal education providers and the growing power of ICT media in offering continuous education opportunities both our youth and our seniors can be tickled into pursuing life-long education opportunities. Fostering innovative thinking To help develop an environment where creative and innovative thinking of individuals is appreciated and encouraged a shift has to be made from a more centralized decision making culture to a culture where citizens and employees are encouraged to participate in decision making. An award for innovative individuals within our society as a whole and within specific organizations could promote individuals to share their ideas and influence decision making on all levels of their lives. By introducing an award that puts innovative people in the spotlight these people can serve as role models to inspire others to also be creative and to be encouraged to think innovatively. The effects of a growing amount of innovative people in a business community are self-reinforcing – innovative businesses are attracted to highly skilled and creative workforces and, in turn, innovative people are drawn towards exciting and challenging career opportunities. Furthermore, innovative people generate new ideas that require skilled people to implement and exploit them. 5.1.3 Sustainable Technology/ICT networks Provision of affordable technology and ICT that benefits the whole community and that attracts new technology providers to showcase their innovative products and services. The focal point of this achievement is to develop an Aruban community in which sustainable technology and ICT can develop and flourish to the benefit of all Aruban citizens. The commission believes that by facilitating access to these technologies, the Aruban people, entrepreneurs and government institutions will be able to boost their innovative capacity to the wellbeing of all. Below is a summary of the aspects that need to be considered to reach technological development on Aruba:  Facilitate access to ICT technology for all homes at low cost.  Increase quality and lower cost of ICT technology to meet international standards for the benefit of the business sector.
  • 29.
    28 | Pa g e  Encourage domestic development of green energy technology.  Intensify exploration of affordable green energy technology by utility providers (partnered with foreign green energy providers) for countrywide benefit.  Reform waste management systems.  Attract research and development facilities for green energy and waste management.  Develop Aruba as a showcase for sustainable green energy (long-term).  Attract foreign green energy providers to showcase the latest technology in clean and green energy provision by emphasizing the diversity of green energy resources provided on the island..  Continuously upgrading Aruba airport and port facilities with new technologies.  Promote green building methods and the use of green energy technologies at home.. 5.1.4 Sustainable society Building a community consisting of model citizens who embrace sustainable development and who make use of key resources available in a conscious manner to continuously develop and improve al areas of the Aruban society, especially social and environmental. A society that strives to be sustainable accepts a duty to seek harmony with other people in that society and with nature. Innovation is driven towards long-term sustainable solutions for current and future challenges. Therefore the community in general should be aware of the balance between the dynamics of innovative choices and the constants of sustainable development. The guiding rules are that people must share with each other and care for the island. The Aruban citizens and visitors should learn to take no more from nature than nature can replenish. This in turn means adopting lifestyles and innovative development paths that respect and work within the island’s nature resources. This can be done by both embracing the many benefits that modern technology has brought, and beware that technology also works within those limits. Key stakeholders in society (government, NGO’s and private sector) must promote values that support these new ethics and discourage those that are incompatible with a sustainable way of life. Information must be disseminated through formal and informal educational systems so that the policies and actions needed for the survival and well-being of the Aruban society can be explained and understood. In order to develop the Aruban community as a sustainable society to further support and encourage innovation the following aspects are deemed as important:  Consider people as the central element in the system, evaluating the social, economic, technical and political factors that affect how they use natural resources.  The social consequences of policy decisions will be thoroughly researched and possible negative effect mitigated.  Relate innovative economic policy to environmental carrying capacity.  Increase the benefits obtained from each stock of resources, and limit the depletion of resources.
  • 30.
    29 | Pa g e  Promote technologies that use resources more efficiently.  Ensure that resource users pay the full social costs of the benefits they enjoy. 5.2 Alignment with different sustainability themes and statements In designing the key achievements stated above, the commission also explored the extent to which these outcomes are in alignment with the different sustainability themes and statements that were brought forward by different community members during the Discovery and Dream phase of the project ‘Nos Aruba 2025’. With this opportunity plan, the commission will contribute significantly to the following aspired themes and statements: Social:  Opportunity for (self)development to ones fullest potentials  Stable social healthcare system and accessible care infrastructure for all inhabitants  Education for high level consciousness regarding sustainability  Balanced economy, social and ecological possibilities  Increased personal commitment  Healthy and happy citizens Environmental:  Effective protection of the environment  Clean water, air, land  Abundant use of alternative energy (sun, water, wind)  Recycling and reusing waste  Aruba is CO2 neutral  Prudent use of green technologies Economic:  National innovation system through knowledge based capabilities  Opportunities for new business ventures both within and outside existing industries  Improved flexibility, efficiency, productivity and equity of markets and economy  Diversification into high value areas (jobs and industries)  Sustainable energy production  An educated economy, aware of the need of natural resource protection Governance:  Development of international relations  Additional cash flow to sustain budget and policy
  • 31.
    30 | Pa g e 6. Main stakeholders Government/semi-government Institution Actions needed for AS Parliament/Government To execute new laws and adapt current laws to a more modern society. Less bureaucracy. Especially when applying for certain necessary permits. Legal procedures need to become more effective, less bureaucratic which will be more time efficient for both the Government and the business community Positive balance of payment by 2025 Government: Economy Promote & create platforms for public & private dialogue: one for foreign investment and a business & education platform. Find subsidies to finance projects to promote & give impulse to economic activities Promote corporate social responsibility by 2013 Positive balance of payment by 2025 50% of jobs in non-tourism sector by 2025 Intellectual property protection by 2012 Promote a R&D facility by 2025 Government: Education Provide high level of education, available to all. Cooperate in creating a business & education platform, promote multilingual education. Education level 50% ISCED level 5; 20% of the working population has an academic education. 30% ISCED has level 4 or less. Early childhood education. Quality control is necessary. Requirements and conditions are a must. Learning centers available to all through community learning centers & libraries. Promote multilingual society, not one main language but all languages. 100% internet access for all learning centers. Government: Fiscal Fiscal duties are necessary; create
  • 32.
    31 | Pa g e incentives to stimulate new businesses, local and international investment and diversification of our economy. 0% import duties on green technology. Government: Infrastructure Very vital is to complete the implantation of the ROP-law. By 2018 all new buildings are eco- friendly Good telecommunication infrastructure which has to be accessible for everyone to achieve 100% broadband and distance working. Good connection by land, sea and air, to achieve good foreign relations and traffic of goods and people (tourists and business travelers) Government: Intellectual property Protect innovative ideas. Encourage people to keep innovating while protecting their ideas. But at the same time giving others the chance to build on the idea. Private Sector Institution Actions needed for AS Business organizations (ATIA, Mambo, SNBA, KvK, AHRA, AHATA etc, ) Promoting and creating platforms for: (by 2013)  Private – public sector dialogue platform  Business – education platform  Foreign investment platform International business center by 2014 Promoting National Prize Corporate social responsibility by 2013 National prize for innovative entrepreneurship by 2014 Promoting distance working by 2015 50% of jobs in non-tourism sector by 2025 Utility providers 50% of energy needs to be supplied by renewable energy by 2015 More competition in the local market New buildings are eco friendly by 2018 ICT providers 100% internet access for everyone at an affordable price Innovative technology available to realize
  • 33.
    32 | Pa g e varios e-commerce projects such as E- medicine center. Distance working possible from home offices in 2015. Investment fund providers Foreign investment platform Capital Banks Expand commercial banking Lower interest rates (Digital) press & media Responsible and investigative reporting, aimed at informative education. (Renewable) energy providers 50% of energy should be supplied by renewable energy Create local market for sustainable products and services at a reasonable price By 2020 all buildings are eco-friendly In 2020, Aruba has non-intrusive economic activities Create a new industry through renewable energy. Healthcare Systems (for profit) E-medicine center/ national EMD Competition for the public sector, which will eventually lead to improved service from the public sector. Education institutions, language centers (for profit) By having both public and private education facilities, educational programs will be available to everyone. It will also be competition, which will mean the education system has to keep improving. NGO’s and private citizens Institutions Actions needed for AS NGO’s (environment, business, education, human resources, consumers)) AHATA/ATSA Role models, action-based leaders (business, education, environment, health, sports, social) Monitor the vision and test plans and projects for sustainability. Watchdog-role, grass roots initiatives.
  • 34.
    33 | Pa g e 7. Actions to be done In this chapter the action plan will be presented, which includes a list of concrete actions to be carried out to achieve the desired outcomes, based on the questions: what-who-when? What: a description of the actions to be carried out Who: the stakeholders that need to be involved to make the actions possible When: the time frame in which the actions need to take place The actions are presented for each key achievement. 7.1 Creating an innovative economic environment Action: Raising awareness for innovation What Who When Fostering innovation as part of Aruban culture Innovation and research programs at school Department of Education, IPA, University of Aruba, school boards, teachers, 2009-2012 Developing internships programs and scholarships for foreign innovation programs Department of Education, University of Aruba, Aruba Scholarship Foundation, 2010 Promoting innovation in community Media, community-based groups, centro di barrios, role models, entrepreneurs 2009-2013 Incorporating innovation in sports, arts and culture Sport organizations, Department of culture, 2010 Action: Developing skills for innovation management What Who When Innovation as part of strategic business thinking: Develop IMEs University of Aruba, foreign & local learning institutions. 2010-2011 Partnering for innovation: Create foreign investment platform Government, ATIA, KVK, NGO’s
  • 35.
    34 | Pa g e Action: Develop/attract short-term innovative business ventures What Who When IFC, IBC and Aquaculture Partnering Aruba entrepreneurs with foreign investors & users (showcase displayers) Free Zone Aruba NV, DEACI, ATIA, Chamber of Commerce 2009-2010 Create/adapt legal framework (IFC) Department of Legislation, Central Bank of Aruba, 2010 Spatial planning and strategic positioning for building construction to accommodate the projects DIP, DOW, Elmar, WEB (infrastructure) 2009 Creative financing arrangements Foreign investors, banks, AEX 2009-2010 7.2 Building up a high-developed human capital Action: Attracting (local) talented people What Who When Attracting local graduates from abroad Provide incentive packages: recognition, facilitate immigration of family members Parliament & council of ministers, Department of Education, Department of Finance, DIMAS 2009-2013 Write-off student loans (partially or in full) for graduates that return to Aruba to work in areas where high- skilled people are needed Parliament & council of ministers, Department of Education, Department of Finance 2009-2013 Facilitate information on opportunities of job openings Department of Labor, Arubahuis, Arubahuis and GevMin Washington 2009-2013 Attracting technological know-how (knowledge immigrants) Flexibility of immigration laws and policies for knowledge immigrants and their families Parliament & council of ministers, DIMAS, Department of Labor 2009-2010
  • 36.
    35 | Pa g e Action: Elevating level of education of the workforce What Who When Reforming education system Enhance opportunities for adult education Department of Education, Center for Lifelong learning 2010-2012 Improved flexibility of entry requirements and offer support programs to optimize opportunities to elevate individual levels of education Department of Education, professional and higher education institutions 2010-2012 Fostering a culture of life-long learning Develop learning centers University of Aruba, local and foreign learning institutions 2010-2013 Develop distance learning programs University of Aruba, local and foreign learning institutions 2010-2013 Stimulate on-the-job training programs Department of labor, local and foreign business development institutions, HR managers 2010-2015 Introduce special financing fund for vocation and academic learning programs Parliament & council of ministers, Department of Education, private sector 2010 Fostering innovative thinking Introduce award to recognize innovative thinking people both in the community as in organizations who serve as role models New community based entity that fosters a culture of innovative thinking and innovative participation in decision making 2010 Promoting a culture of innovative participation in decision making both in the community as in organizations University of Aruba Organization, Governance and Management department, new community based entity mentioned above 2011 7.3 Developing sustainable technology & ICT Action: Streamlining/facilitating access to technology What Who When Facilitate access to ICT technologies PC/broadband for all homes at low cost Parliament & council of ministers, Department of Education, Department of Finance, Setar NV 2010 PC/broadband for all schools and libraries Parliament & council of ministers, Department of Education, Department of Finance, Setar NV 2012
  • 37.
    36 | Pa g e Encourage domestic development of green energy Eliminate barriers imposed by utility companies for domestic green energy development Parliament & council of ministers, utility companies 2011 Eliminate taxes and duties on import and development of green energy technology Parliament & council of ministers 2013 Action: Developing sustainable technology (energy and waste) What Who When Attract technological know- how WEB, Elmar, Setar, Serlimar, Private Sector 2010 Invest in new infrastructures WEB, Elmar, Setar, Serlimar, Private Sector 2010 7.4 Sustainable society Action: Raising nationwide awareness for sustainable development What Who When Implementation of the ROP & environmental law Government; Parliament 2010 Stimulate corporate responsibility & entrepreneurship Chamber of Commerce 2010 Introduce incentive: 0% import duties on Green technology Government; Ministry of Finances 2011 Private sector starts creating markets for sustainable products and services for all business and household in Aruba: sustainable products and services have to be accessible to all) Private sector; Chamber of Commerce; Department of Economic Affairs 2016 50% of energy is supplied by renewable energy Private sector; alternative energy providers; utilities’ companies 2017 All new buildings, are eco friendly Ministry of Infrastructure; Parliament; private sector 2020
  • 38.
    37 | Pa g e Action: Community development What Who When Start a long-term, nationwide awareness campaign for a sustainable society & personal development (LLL) Government of Aruba; Department of Education; citizens 2010 Media: translate visions (of a sustainable future) into practices (Digital) media 2011 Business & Education platform Department of Economic Affairs; Chamber of Commerce; Department of Education; private sector; citizens 2013 School and other education programs are available for everyone, at any age & education level Department of Education; private sector 2017 R&D facilities University of Aruba; Government; Private sector 2017
  • 39.
    38 | Pa g e 8. Strategic resources needed The following strategic resources are imperative for the commission to achieve the desired outcomes: 8.1 Tangible resources Cash Cash is an imperative resource to cover initial investments to acquire other key resources, such as fixed assets and infrastructure, technological improvements both physical and know-how, expansion of education and learning facilities, (pilot)- projects, research and renovations/improvements of existing facilities. The estimated cash amount to cover the investments and acquisitions is AFl. ....... The funds required will come from different sources, which are:  Funds allocated by the government  Funds provided by banks (credit lending)  Funds directly invested by venture capitalists (local and foreign)  Funds generated through the Aruba Electronic Exchange (private placements)  Funds generated through spin-off effects (profit distribution) due to flourishing economic activities The priorities for cash allocation include: Improvement of ICT technologies Investment in green energy development Relocation of the commercial port to Barcadera Infrastructure for the new free zone area Investment in entrepreneurial development Fixed Assets  Adequate infrastructure (access roads to support logistics)  Excellent and affordable airport facilities to accommodate the level of flow of people and goods through aircrafts  Excellent and affordable harbor facilities to support the maritime logistics  Sufficient property and warehousing facilities at the freezone to accommodate new business ventures  Hi-tech (innovative) buildings to accommodate R&D and learning centers, etc.  ICT infrastructure / broadband  Infrastructure for renewable energy
  • 40.
    39 | Pa g e 8.2 Intangible resources Relationships  Well-functioning private-public dialogue platforms  Different government departments working together  Good communication with media Individual capital  ICT/Technological know-how  Pro-active governance  Well-regulated entry of new business ventures (to avoid intrusive/harmful/unsustainable economic activities)  Building code regulations (eco-friendly)  ROP & environmental regulations  Green/renewable energy know-how  Know-how on sustainable products and services  Integrity, transparency, responsiveness of government personnel  High level of education, skills and experience Collective capital  Political stability  Tax treaties  Service-oriented workforce  High-quality education  Basic and new legislation  Friendly multi-lingual, -national and –cultural community  Foreign relationships  Respected judicial system  Win-win attitudes and values  Pilot learning programs  Community learning programs  Incentives for innovation 8.3 Natural advantages  Geographical location  Availability of wind, sun and water for renewable/green energy & R&D  Available land (limited)  Attractive climate (to attract tourists and investors)
  • 41.
    40 | Pa g e 9. Road Map to achieve aspiration statement (draft)
  • 42.
    Current strengths: - Central geographicallocation - friendly multi-cultural, - national & lingual community - politically stable system - respectable judicial system - foreign relations Aspiration statement: “In 2025 Aruba will be a place where innovative people will share innovative ideas in an innovation-friendly environment” Social Environmental Economic Political Future20252017 2009 2021 Strengths in the medium-term: - Central geographical location - friendly multi-cultural, - national & lingual community - politically stable system - respectable judicial system - foreign relations - high-quality education - tax treaties - ICT Strengths in the long-term: - Central geographical location - friendly multi-cultural, - national & lingual community - politically stable system - respectable judicial system - foreign relations - high-quality education - tax treaties - ICT - Corporate governance - technology & infrastructure - well-functioning platforms 2013 2013 2017 2021 2025 Future Roadmap - Nation of Innovation E-medicine center/national EMD E-government 100% household broadband Intellectual property protection Distance working (home offices) Managing diversity as HR philosophy Foreign Inv. Platform 0% Import duties on green tech. Business & Education Platform Intern’l Business Center 50% jobs in non- tourism service sector 100% home computers 100% internet access learning centers Multi-lingual education New R&D facilities/Bsc program Education level 75% ISCED level 2 10% academic Community learning centers/ libraries Inter-scholastic science competition (international) Non-intrusive economic activities GDP …. Positive balance of payment Impl. ROP & environmental law National prize corp responsibilty National prize innovative entrepreneurship Local market for sustainable products/services 50% energy needs supplied by renewable energy All new buildings are eco-friendly Policy through publ./ priv. dialogue (platforms) 25% of new AUA project financed through PPDAQ 50% of new AUA project financed through PPDAQ Key achievements:  Sustainable society  Sustainable Technology/ ICT networks  Highly-developed/ knowledgeable human capital  Innovative (economic) environment
  • 43.
    42 | Pa g e 10. Working with other commissions
  • 44.
    43 | Pa g e
  • 45.
    44 | Pa g e Commission name Statements that reflect common issues Issues that might contradict each other Cooperation issues and possible projects Sustainable community- based system a) Everyone is aware of the importance of energy efficiency and the need to reduce environmental pollution while conserving local vegetation and fauna b) Citizens are life-long learners; education is accessible to all and citizens engage in extracurricular educational and recreational activities c) The education system is further linked to the ever expanding and changing technological and financial demands d) The government is effective in allowing for a targeted and rapid response to social needs and a successful pursuit of individual and communal aspirations as well as pro-active and decisive initiatives and a participatory approach. e) A diversified economy with entrepreneurship that is both part of and complements the tourist industry None Involving and engaging community based stakeholders in pro-active initiatives and entrepreneurship Environment a) Use the media to help educate and create awareness of sustainable development b) Stimulate change from within companies and residents through strict adherence to environmental laws, producing services and goods in an environmentally sound way c) The whole community uses energy consciously and efficiently using the latest technology to keep the environment as least contaminated as possible, generating green energy by using local accessible alternative energy sources and refusing, reducing, reusing and restoring waste as a part of life. None Creating awareness to ensure a sustainable environment using the latest technologies and local alternative energy sources
  • 46.
    45 | Pa g e d) Aruba has developed public participation mechanisms to fortify our democracy and stimulate the thriving new economy. Therefore invited guests are welcomed to share our island. Governance a) Citizens have access to quality information, are taken into consideration and participate in the policy-development and public decision-making process. b) Public and private partnerships are built on trust, knowledge and acceptance of each other’s unique responsibilities and a structured and continuous consultation between all stakeholders None Ensuring that all citizens are well informed about and have accessibility to decision-making processes, working together in public-private partnerships and involving all stakeholders International Financial Center a) The business community in Aruba flourishes with (highly) educated people, based on the core values of integrity, innovation and excellence b) The Government invests in the education of the Aruban people, stimulates new businesses and focuses on a mixed economic approach, keeping the population well informed and aware of the most recent developments in the financial sector None Diversifying the economy and emphasizing the need for investments in highly educated people, innovation and new businesses Lifelong learning a) Everybody contributes collectively to the sustainable development of Aruba through continuous accumulation of knowledge and development of abilities, talents and attitudes based on every individual’s potential and values. b) Individual’s talents and potentials flourish through formal educational routes, alternative innovative routes and outside the formal educational system in educational community centers, at work, at home and through multi-media. c) By continually learning the society progresses in a sustainable way and has developed a diverse and dynamic economy None Creating multiple formal and non- formal possibilities for life-long learning Socio- economic structure a) The Aruban economy is diversified to a broad extent, with transport, financial services and knowledge-based activities making up for almost 60% of GDP, driven by high-skilled labor and Aruban None Diversifying the economy by investing in high-skilled labor, ingenuity, creativity and
  • 47.
    46 | Pa g e ingenuity, creativity and entrepreneurship. Sustainable initiatives are stimulated by fiscal incentives b) Education has become a means to produce human capital in the form of capable, conscious and productive citizens, respecting each other’s individual ancestry and cultural traditions and values and offering equitable opportunities to fulfill individual and social group aspirations. entrepreneurship Sport and Nutrition a) The Aruban society has a healthy way of living and is conscious about the use of natural resources b) Sport practice has contributed to the development of non-physical areas such as creating norms and values, fair play, pushing for perfection, team building, social skills, networking, nationalism, etc c) Sport facilities are well situated in every neighborhood, practical, user friendly, environmentally friendly and well maintained. none Stimulating a healthy way of living that contributes to well- being and social skills which in turn sets the environment for human inspiration and innovative ideas to flourish and flow Sustainable food supplies a) Arubans produce most of their own vegetables from their own high- tech small-scale gardens and catch or breed fish in a hygienic and environmentally responsible way. They are aware of locally grown food choices, sound living and food growing practices, eco-friendly farming, innovative green technology and are willing to experiment with these b) Aruba’s success is showcased around the world and has become part of the attraction of the island and local grown products are sold to health-conscious tourists and are exported none Stimulating innovative local food- production as a healthy living practice and a new means of generating income Sustainable tourism a) The tourism product has diversified and reinvented itself with geo tourism and eco tourism b) Aruba possesses the systemic tourism intelligence capabilities that provide stakeholders with the insights, information and intelligence for innovation towards realizing sustainable tourism in a pro-active, collaborative, responsible and equitable manner, thereby enhancing none Synergizing efforts in creating innovation in both the tourism sector itself and all business sectors relating to tourism, enhancing the overall sustainability of the Aruban
  • 48.
    47 | Pa g e the overall sustainability of the Aruban destination c) Aruba will innovate and further distinguish itself as a premier Caribbean destination through the development of new business models that will create sustainable competitive advantages destination in a diversified economy. Energy Management a) Aruba maximizes its use of locally available natural renewable energy resources and recycles its waste in a responsible and sustainable way, liberalizing the local energy market and creating incentive programs to motivate installation of sustainable energy generation equipment using locally available natural energy resources b) There are ongoing educational programs to educate the Aruban community for better ways to manage its energy-usage and to use technical know-how on sustainable energy generating equipment. c) The example is set by schools and community centers placing alternative energy generating equipment and the use of sustainable powered vehicles for both private and public transportation none Educating and stimulating innovative sustainable energy usage
  • 49.
    48 | Pa g e 11. Robust and fragile elements 11.1 Robust elements The elements of the Aspiration Statement, Key Achievements and Milestones in the Roadmap will build upon themselves, once realizing the basics, which can be done on a short term. Innovation is a ‘state of mind’, not dependent on critical single activities. Initial projects will in themselves create the resources needed on the long run. Many of the Strategic Resources are available, at least as a starting factor. The Free Zone as a driver of foreign investment is there, and can be used to develop the Foreign Investment Platform. The Collective Capital and Natural Resources are there, but need to be improved and protected. 11.2 Fragile elements Most fragile elements in our plan are inherent to sustainable development. If the NISP is truly adopted by the whole of Aruba, the fragile elements will receive the attention they deserve and become robust. Education is a crucial element.. Many of the elements in the plan hinge on a single factor, the most fragile. That is creating a high level of dialogue and collaboration between the stakeholders represented in Government, private sector and NGO’s/private citizens, and each recognizing their individual responsibilities and developing their capabilities. In short, the Social Architecture described in 4.2-4.4, Another fragile element is the ability to attract the first investors/highly educated (returning) workforce. Once these have a positive experience it will become a resource. If it is not done well the first time around, it will remain a fragile element. The actions to be undertaken to improve the fragile elements are in the form of small, relatively simple and straightforward projects in the first years of the NISP, to create a positive experience and the vision to undertake the more challenging projects that entail greater change. The Investment Platform is such an example. The stakeholders all recognize the need to work together to attract foreign investment, however the current negative atmosphere is a deterrent. With the worsening global economy and the decline in tourism, steps will have to be taken to develop new business opportunities. A positive experience can set the stage for the development of similar platforms for Energy, Education, Health, etc.
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    49 | Pa g e 12. Detailed Implementation/Action plan 2010- 2013 This chapter describes the actions that are required for implementation of the commission’s opportunity plan.
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    50 | Pa g e Time schedule Description actions to obtain the aspiration Action by the public sector and time frame Actions by the private sector Identification of resources needed by source: personnel & finances Estimated costs for implementation Responsible organization for implementation and resources Organization accountable for implementation and resources 2009-2010 E-government Make procedures and policies more accessible and easier to be implemented. A network of computers can connect various government departments, making data more accessible, simplifying procedures & decision. Give relevant feedback on how government can function to their advantage Personnel has to accept change, recognize change is beneficial to their work process. Department of Information & automation for the infrastructure. Or the Government can outsource this task. The Government of Aruba, Dept. of General Affairs.
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    51 | Pa g e 2009-2010 Implementation of the ROP & environmental law Dept. of Infrastructure and Planning. Dept. of Public Health give relevant feedback. Look at the long term benefit of the law, not going around it in order to save costs on short term. Personnel to educate population on benefits of new law Dept. of Infrastructure and planning; Dept. of Public Health Parliament of Aruba 2010-2014 Raising awareness for innovation Incorporate innovative projects & programs. Be supportive of teachers and other educators to bring forward innovative projects and programs. Be supportive and recommend innovative trainings/ promote innovative educational programs and projects at a reasonable price. Teachers, educators, trainer for trainers, policy makers, government, school board, parents, youngsters Dept. of Education; Dept. of Culture and labor; University of Aruba; community based groups and centrums; media Dept. Of Education; Dept. of Labor and Culture; Parliament of Aruba.
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    52 | Pa g e 2010 100% internet access Internet access everywhere, in learning facilities & homes. Promotes the use of internet, provides a great infrastructure to achieve this goal. More internet providers in Aruba by 2013, supply meets demand, competence makes providers offer faster and better internet continuously. Businesses and citizens make continuously more use of the internet. This brings along the need of more high skilled ICT- ers. Government: good infrastructure. Private sector: internet providers and all related services. Dept. of Telecommunication; Internet providers; private sector. 2011 Foreign Investment Platform Make procedures and policies to guarantee transparency in this business opportunity. Be transparent, search ways to enhance this business opportunity and finance commercial businesses. Law & policy makers to adjust current laws. Players in the financial field to Government, ATIA, Chamber of Commerce, NGO’s Government, ATIA, Chamber of Commerce, NGO’s
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    53 | Pa g e 2012 Intellectual Property protection Protect innovative ideas. Encourage people to keep innovating while protecting their ideas. But at the same time giving others the chance to build on the idea. Private sector knows their ideas are protected and are encouraged to continue innovating and improving ideas and concepts. Finances are necessary to guarantee the protection of registered trade marks and concepts. Controllers are necessary. Bureau for Intellectual Property. Bureau for Intellectual Property. 2012 E-medicine center/ national EMD Encourage private health care incentives. Medical costs are covered in AZV. Control health care and set standards. Develop opportunities to expand services based on innovation and cross- border supply of health care. Highly skilled professionals have to keep improving health care Private sector. Dept. of Public Health Private sector. Dept. of Public Health
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    54 | Pa g e 2013 National Prize for Corporate social Responsibility Announce importance of responsible entrepreneurship. Promote CSR among SMEs as well. Be involved and supportive of CSR. Realize the benefits CSR has for businesses and make clear that CSR is not only for multinationals. Take pride in winning such award. Personnel in all organization and business, on all level are aware of importance of CSR. By 2015, applicants find it important to know what the contribution of their future employer before they accept job. The employee is eager to know how he can use his skills to the benefit of the community. Dept. of Economic Affairs, The Chamber of Commerce; other business associations. Dept. of Economic Affairs, The Chamber of Commerce
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    55 | Pa g e 2013 Business & Education platform Promote innovation in Educators. Create a platform where businesses teach their experiences, best practices exchange, inspire others to become successful Leaders lead the platform. Other will follow. Government of Aruba, dept. of Economic Affairs, dept. of Education. Private Sector, the Chamber of Commerce and other business organizations Private sectors, educators, citizens. 2013 International Business Center Creating the physical building. In order to meet its goals, some policies and laws have to be adjusted for Aruba to become a "real" international business center. Implement the idea behind the business center. Keep innovating and developing the business center to successfully achieve its goal, be competitive, not only in Aruba but know what is happening outside Aruba as well. Entrepreneurs & professionals. Players in the International business center need to let go of the island concept and think globally. Government of Aruba. Private Sector, the Chamber of Commerce and other business organizations Private sector.
  • 57.
    56 | Pa g e 13 Monitoring and evaluation 2010-2013 <<pending>>
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    57 | Pa g e References Barro, Robert J. (1997) Determinants of Economic Growth: A Cross-Country Empirical Study. MIT Press: Cambridge, MA. Dickens, W.T., I. Sawhill & J. Tebbs (2006) The Effects of Investing in Early Education on Economic Growth. The Brookings Institution, MA. Luecke, R. & R. Katz (2003). Managing Creativity and Innovation. Harvard Business School Press. Boston, MA.
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    58 | Pa g e Annex 1: Conceptual framework: sustainability through innovation Cash Fixed Assets Relationships Individual capital Collective capital Natural advantages Innovative economic environment High developed human capital Increased innovative capacity Product Innovation Service Innovation Process Innovation Improving current industries Developing new industries/business models Entrepreneurial development Knowledge Wealth Competitiveness Institutionalized social system Informal social system - Green energy development - Financial services - Internet-based services - Export oriented activities - ………. - Tourism - Retail - Services - ... Strategic resources Creation of high- skilled jobs Higher profits (high return on investment) Sustainable technology & ICT Sustainable society Key achievements Government
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    59 | Pa g e