Page 22 - A Handbook for Academia, Industry and Policymakers: Reinforcing the Innovation-Employability Nexus in the Mediterranean

22 REINFORCING THE INNOVATION-EMPLOYABILITY NEXUS IN THE MEDITERRANEAN REINFORCING THE INNOVATION-EMPLOYABILITY NEXUS IN THE MEDITERRANEAN 23

The innovation-employability nexus

Investment in research, innovation and entrepreneurship has proven to play a significant role in
economic and social development in both developed and developing countries. Academia has a
pivotal role both on the supply side through producing employable graduates and the demand side,
through innovations and start-ups. Innovation and entrepreneurship have been identified as another
way to create jobs. However, it is important to distinguish between trade-based, no-capital, no-
tech microenterprise projects (also called the ‘poverty trap’ ) and more sophisticated technology/
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innovation-based projects. The former are often incapable of sustainable, productive growth and can
be rather counterproductive for the economy , whereas the latter offer far more to the economy and
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society in the medium to long term.

In the quest for increased connectivity between academia, industry and government to power innovation,
the university has become a focal point orchestrating multi-actor innovation networks. Businesses
and governments consider the research community and its members as ideally suited to ‘connect
the dots’ because they are impartial, driven by curiosity and long-term perspectives, rather than by
commercial interests and short-term goals . In order to deliver on these expectations, universities
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and research institutes have to be highly responsive, adaptable, strategically directed, autonomously
governed, and densely interlinked with regional partners as well as international networks.

INNOVATION

One of the most referenced definitions of innovation goes back to Joseph Schumpeter which includes the introduction of a good or
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a significant improvement of an existing good, the introduction of new methods of production (process innovation), the creation of
a new market, the conquest of a new supply source and the creation of a new type of organisation (i.e. administrative innovation).
Innovations thus include a level of newness. Yet, innovation is not synonymous with invention as innovation includes both aspects
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of creation or discovery and diffusion . Pragmatic definitions define innovation as a successful implementation of creative ideas
or ‘as a process that provides added value and a degree of novelty to the organisation and its suppliers and customers through the
development of new procedures, solutions, products and services as well as new methods of commercialisation’ . It is safe to say
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that an innovation’s starting point normally is an invention followed by exploitation. However, without successful commercialisation,
the invention cannot become an innovation. It is estimated that more than 60% of economic growth derives from technological
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progress, which has led to technology advances being closely identified with innovations .
EMPLOYABILITY

The International Labour Organization defines employability as related to portable competencies and qualifications that enhance an
individual’s capacity to make use of the education and training opportunities available in order to secure and retain decent work, to
progress within the enterprise and between jobs, and to cope with changing technology and labour market conditions .
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Young women have made remarkable progress in
educational attainment, yet industry and policymakers
still need to support their transition to the work force.