Sunday, May 15, 2011

Innovation for Competitiveness: the case of TEVET

By Clive Siachiyako

Globally, economic trends show that innovation is a foundation for competitiveness, industrial and technological upgrading, balancing economic growth with wealth re-distribution and effective provision of essential public goods and services. Innovation helps countries deal with structural changes in their economies and enable them respond to economic challenges better.

Innovation is about the production, diffusion and use of new and economically useful knowledge. It is about creating domains for identifying and nurturing enterprising faculties and building globally competitive national economies. Innovation is a base for competitiveness. It is a back-borne for formulating institutions, policies and factors that determine the country’s attractiveness to investment and sustainable economic productivity.

Meanwhile, competitiveness entails a set of institutions, policies, and factors that determine the level of productivity. The level of productivity, in turn, sets a sustainable level of prosperity that can be earned by the economy. In other words, the more competitive an economy is, the more it is able to produce higher income levels for citizens. The productivity level further determines the rates of return obtained by investments (physical, human, and technological).

Determined to foster innovation, Zambia is pursuing comprehensive economic reforms that led to the establishment of the technical education, vocational and entrepreneurship authority (TEVETA) and other key institutions and programmes such as the private sector development reform programme (PSDRP), to pioneer and promote productivity and enterprising mindsets in the country.

To re-emphases the country’s determination to enhance innovation and competitiveness, this year’s Zambia International Trade Fair (ZITF) is anchored on: Innovation for Competitiveness. The theme for the Fair conforms well to Technical Education, Vocational and Entrepreneurship Authority’s initiatives that support innovation through market driven training systems, responsive curricula to labour market and economic demands, and entrepreneurship training.

According to the World Economic Forum, there are twelve pillars of competitiveness which include: higher education and training, labour market efficiency, technological readiness, business sophistication, and innovation among others.

Higher education and training
TEVETA promotes quality skills training in the country. In today’s globalising economy, it is cardinal to nurture pools of well-educated workforces that are able to quickly adapt to changing economic environments and the evolving needs of the production system. Higher education and training is about the quality of education as evaluated by the business community. It takes into account the extent of staff training due to the importance of vocational and continuous job-on-training, to ensure constant upgrading of workers’ skills.

To improve the quality of education and increase access to training, TEVETA has devised many training pathways. These pathways include: the technical education and entrepreneurship Training (TEVET) Learnership Scheme, Work Based Learning, Distance and Open Learning. These supplement normal TEVET training. The strategies are aimed at increasing the country’s competitiveness, since a well skilled human capital creates a suitable platform for increased investment, job and wealth creation.

In addition, TEVETA ensures that quality assurance issues are taken care of in these training pathways. It accredits trainers, assessors and examiners to ensure quality in training is adhered to by all training providers. Further, the TEVET Qualification Framework has been established, a framework onto which qualifications are placed.

TEVETA also promotes entrepreneurship training. Considering qualities of entrepreneurs of being able to innovate, mobilise, organise and take calculated risks, the Authority sees entrepreneurship as a career option which is significant in addressing some of the critical economic challenges the country has been facing. We believe with cross-cutting entrepreneurial skills in the economy, labour market efficiency will be enhanced, the economy will be ready for technological change, and there will be business sophistication entrenchment in society and innovation.

Through the right training, TEVETA and stakeholders in TEVET aim to increase the proportion of Zambians engaged in entrepreneurial activities and enhance the successful potential of those already in business. The Authority considers entrepreneurship as a mechanism for achieving more widespread social stability, a vehicle for poverty relief and a means to socio-economic empowerment and enhancing global competitiveness. Entrepreneurship is a fundamental factor in generating more employment for limited capital investment, and a ‘seed bed’ for the development of entrepreneurial talent.

The extent and quality of entrepreneurship available in an economy matter for innovativeness, since entrepreneurs play the role of originators and coordinators of innovative activities. Therefore, creating enabling conditions for nurturing and promoting entrepreneurship will increase innovative activities and more effective innovation in the Zambian economy. Firms led by entrepreneurs have the higher capacity to be innovative, dynamic and confident with technology. These are capabilities much needed by the labour market. TEVETA encourages training providers to groom and harness these entrepreneurial capabilities.

Labour market efficiency
The efficiency of the labour market is critical for ensuring that workers are allocated to their most efficient use in the economy. A pool of skilled human capital plays a pivotal role in realising labour market efficiency. Such a quantum of a skilled workforce makes the labour market more effective and efficiency to productivity demands. To ensure there is inclusive approach in training, TEVETA collaborates with major players in the labour market in the development of curricula for TEVET. The involvement of the labour market is to ensure that current market demands are captured in all learning systems in the sector.

Furthermore, TEVETA collaborates with the industry to identify and reduce shortages of skills in various areas of the economy, which impact negatively on productivity and economic competitiveness. The Authority work together with the industry on devising TEVET delivery systems and mechanisms that facilitate recognition of different forms of learning and competencies acquired through various learning pathways.

Technological readiness
In today’s globalised world, technology has increasingly become an important element for firms to compete and prosper. Technological readiness measures the quickness with which an economy adopts existing technologies to enhance the productivity of its industries, with specific emphasis on its capacity to fully leverage information and communication technologies (ICT) in daily activities and production processes for increased efficiency and competitiveness. Therefore ICT access and usage is key enablers of countries’ overall technological readiness. In TEVET, ICT is offered by most institutions even in courses that are not directly linked to ICT due to the crucial factor it plays in the modern economy. Most training providers in the sector have blended ICT components in their programmes to harness information technology skills in the economy and sharpen the country’s human capital technological readiness.

The central point is that the firms operating in the country have access to ICT advanced products and are able to use them. Among the main sources of modern technology, foreign direct investment often plays a key role. In this context, the level of technology know-how available in our workforce distinguishes our economy’s ability to innovate and expand the frontiers of knowledge. That is why TEVETA promotes technical enhancing domains in training, a factor which will make Zambia more competitive to investment and doing business.

Business sophistication
With quality skills in the country, business sophistication becomes attainable. Business sophistication results into higher efficiency in the production of goods and services. This in turn, leads to increased productivity, thus enhancing a nation’s competitiveness. Business sophistication concerns the quality of a country’s overall business networks and the quality of individual firms’ operations and strategies. Equipped with appropriate skills, TEVETA believes Zambians will be able to devise cutting-edge business management systems, effective pricing and market penetration methods, intelligently brand and market their products and services, and utilise essential business tools in turning any entrepreneurial venture from mere survival to robust, thus building a sustainable business environment. These skills will lead to sophisticated and modern business processes.

Come to the TEVETA stand at this year’s Zambia International Trade Fair and learn more about TEVET and strategies that are meant to enhance “Innovation for Competitiveness.” See you there!

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