Instilling Innovative Related Skills as a Top Cluster Skills in Higher Educational Institutions and Its Contribution to Economic Development

Instilling Innovative Related Skills as a Top Cluster Skills in Higher Educational Institutions and Its Contribution to Economic Development

Nur Shaliha Mohd Kahar, Noraisyah Mat Nor, Amirmudin Udin

Department of Technical and Engineering Education,

Universiti Teknologi Malaysia, Skudai 81310, Johor Malaysia

Abstract. The evolution of the technological based on innovation and invention swept rapidly eventhough the effect varies for each country. Graduates and workforce who have ability to think innovatively are seen will contribute to major implications in improving the living standards of society and economy growth as a whole. Additionally, most of the countries acknowledge Higher Educational Institutions (HEIs) is a key role in providing skills supply to fulfill growth and dynamically jobs demand. In general, HEIs graduates need to adapt with current market needs that constantly evolve with knowledgeable and innovation driven growth. Therefore, this paper is necessary to know about the importance of innovation skills in ensuring proper and effective higher educational institution as one of technical and vocational education training (TVET) provider in Malaysia. Other than that, this paper also discuss about the challenges in strengthen innovation as a top cluster skills in HEIs to enhance the nation’s economy development.

Keywords:   Skill, Innovation, Higher Educational Institution, Economy, Knowledge-based Economy, Research and Development

  

1.0              Introduction

Over the last decade, the evolution of the technological based on innovation and invention swept rapidly. Although the effect varies for each country, but it has major implications in improving the living standards of society (UNESCO, 2012). Apart from that, it also improves the diversity in the industrial and services based on innovative workforce. The progress made in industry is due to the capacity of the high skilled workers. The importance of developing human capital  increase the awareness in providing opportunities to increase skills development and it recognized as a key to achieving the country's development agenda. An individual's capacity to innovate are initiate by aims to achieve a better living staindards and sustainability. Innovative efforts resulting to provide skills that will contribute to a competitive society and increase their living standards specifically and enhance the nation’s economic status generally. Besides that,  it seen the world economy seems to depend entirely on the development of knowledge-based skills. Therefore, in the HEIs context, the increasing demand to provide graduates in particular fields of TVET which known as job-oriented education is critical to develop an innovative thinker who took the initiative in contributing to the nations’s economic development. Therefore, the country not only requires a workforce who are highly trained in the technical skills but also individuals who are competent in the skills of innovation, particularly for research and development. So that, technical, vocational education and training (TVET), has been used by several developed countries as an instrument of development. To enhance productivity, stimulate competitiveness, and bring about economic development, skill development is important. Technical vocational training and education (TVET) is the provision of skills, knowledge, attitude, and values needed for the place of work. This should be directed towards research and development (R&D), acquisition of appropriate and up-to-date equipment and tools and general maintenance and management of TVET institution. 

Apart from that, according to Lin (2012), for the introduction of new technology, developing countries can make their lack of technological innovation to become as advantages by borrowing or adapting the matured technology from the more advanced economies. Malaysia as one of the developing countries also were not left out in facing the main economy challenges which are to generate innovation, adaptation, and commercialization of new technologies at a high rate. These efforts can be seen from the Malaysia’s initiative to achieve developed nation status by developed Vision 2020 agenda includes action plans to turn Malaysia into a knowledge-based economy which resulted in innovative products and services at the global technology frontier. The initiative is also purified in the Tenth Malaysia Plan (2011-2015) through the creation of a new structure which known as Special Innovation Unit (Unit Inovasi Khas - UNIK) to oversee the integrated innovation policy and entrusted to commercialize research findings from research institutes and HEIs (Thiruchelvam et.al., 2011).

Other than that, there is supporting evidence in relationship between the HEIs and skills level with the increasing of demand and supply of technical and organizational innovation. At its most basic, it has been shown that investment in innovation and human capital are complementary and mutually reinforcing to help the country to face on current innovation-based and knowledge-based economy (Toner, 2011). Additionally, most of the countries acknowledge HEIs is a key role in providing skills supply to fulfill growth and dynamically jobs demand. In general, HEIs graduates need to adapt with current market needs that constantly evolve with knowledgeable and innovation driven growth. Therefore, this paper is necessary to study the importance of innovation skills to ensure proper and effective higher educational institution as one of TVET provider in Malaysia.

2.0       Conceptual Definition of Skills and Innovation

According to Toner (2011), skill generally refers to productive assets of workforce acquired through learning activities. Skill acquisition activity is a combination of education, training and experience. While according to the World Bank (2012), states that the skills can be divided into three main categories which are academic skills, generic skills and technical skills. Academic skills acquired through formal education such as literacy and numeracy. Meanwhile, generic skills acquisition can be found across from education to employment, such as attitude, discipline, life-long learning and others. Lastly, the technical skills are considered as a combination of individual’s specific knowledge and skills closely related to job profession and interest.

While for the innovation is considered as the key to economic growth (Wu, 2011) and designed to meet the challenges of a knowledge-based economy. Therefore, innovation skills can be conveyed through the person way of "knowing". Toner (2011) divided innovation into four categories which are (1) product innovation, (2) process innovation, (3) marketing innovation, and (4) organizational innovation. All of these categories are the introduction to the new features, implementation, and approaches that use a combination of existing knowledge and technology for continuous improvement. Apart from that, the aims of innovation are to reduce costs and time as well as to improve or increase the quality, market, performance, productivity and gratification. Innovation involves activities such as design, research and development (R&D), patents and property right (BISC, 2011; Toner, 2011). Thus the innovation activities can be defined as "a new implementation and new functionalities that includes products, services, processes, marketing methods, and methods of organization in business practices, workplace organization and external relations". While, the R&D is a part of the activities and key elements of innovation activities. Again, the R&D activities usually carried out in the data collection which undertaken on a systematic basis to increase the stock of knowledge, including knowledge of human culture, society, and the use of the stock of knowledge to devise new applications (OECD, 2003). Innovations play an increasingly important role as a driving force for economic growth and hence many developing countries in East Asia have taken research and development more seriously, especially when governments in the region have realized the national competitiveness is no longer dependent upon cheap labour for manufacturing sector (Brokel and Binder, 2009).

This paper also contruct the term of knowledge based-economy. The knowledge based economy is an expression coined to describe trends in advanced economies towards greater dependence on knowledge, information and high skill levels, and the increasing need for ready access to all of these by the business and public sectors (OECD, 2005).  Besides that, the context of knowledge and technology have become increasingly complex, raising the importance of links between firms and other organisations as a way to acquire specialised knowledge. A parallel economic development has been the growth of innovation in services in advanced economies. In the information age, knowledge is power. The k-economy is based on a paradigm that focuses on intellectual capital as a prime mover. With knowledge replacing physical and natural resources as the key ingredient in economic development, education and human resource development (HRD) policies require rethinking.

3.0       Innovation and Skills Delivery Related Issues

The HEIs graduate’s employment becomes more competitive in the job market. It has been an issue now where the current HEIs graduates now do not match the needs of the industries (Kamal, 2006). Thus, it shows that HEIs need to review their quality in delivering skills and knowledge through teaching and learning process has become a top priority because of its involvement in judgments of the educational institutions quality. From this perspective, the qualities are not underpinned as an end process itself, but it requires continuous process for performance and quality enhancement. (Anton and Jordan, 2002) . The success of an HEI is highly dependent on how staff managing their educational and institutional sustems. It is because the staffs are pivotal elements in delevering certain skills (Zita, 2011) especially related with the culturing the top cluster skills which contributing to innovative and creativity minds.

There are some consensus states that HEIs is the precursor to economic growth and increase the Gross Domestic Product (GDP) of the countries regardless of their level of development. Many countries began to aware the significant of skills development contributions in innovation and productivity of nation’s economic growth. As this is the case, the country are suggested to invest substantial amount into R&D sector and stressed the importance of HEIs as a source of scientific, technical, and analytical expertise. This is supported by World Bank (2012) stating there is a positive relationship between R&D, innovation with the economy development of the nations. Other than that, country’s expenditure on R&D also known as metric that provides reading on the nation’s acquisition in innovative technology and their economic capacity. Kapur and Krawley (2008) also pointed out that a skilled, flexible, productivity, well-trained, well-educated that using existing technology and engage in innovation workforce as a way to enhance and adapt in the competitiveness and growth.

In addition, the main determinant in ensuring the future of nation’s innovation, productivity and competitiveness is constantly evolving, the HEIs need to nurture a life-long learning practices into the society. This effort will create a "learning societies" that wholeheartedly to support the nation’s growth. Apart from that, in the context of globalization, each country needs to be active in regional integration especially in the integration of technological innovation of industries with the educational institution to ensure the educational system is able to develop a workforce that is not only highly skilled, but also have certain generic skills, for example, can adapt to the technological changes thus increase their career mobility. Some researchers also emphasize the importance of generic skills such as "curiosity", "proactivity" and "creativity" contributed to the success of the R&D innovation and educational activities (World Bank, 2010). As this is the case, higher education should produce graduates who are skilled and innovative aligned with the rapidly technology advancement. The presence of research HEIs such as UTM, UKM, USM, UM and UPM in Malaysia also a major priority and effort done by Malaysia for nation’s growth. To ensure the skills are in line with current demand, a close co-operation and integration between HEIs and industry is needed. Access to education and training system requires a balanced investment between employers and HEIs to both parties benefit accordingly. Furthermore, research allows HEIs to generate ideas for the business community, thereby contributing to the knowledge and technological innovation based on research and technology transfer (World Bank, 2012).

The use of technology and innovation is also associated with a higher skill level. In this context, have adequate skills are very important for innovation and competitiveness. For HEIs, the challenge in improving the quality of educational system and increase the effective curriculum delivery, the HEIs need to start with high critical input such as upgrading facilities, and infrastructure, support periodic assessment and accreditation testing policies to monitor and evaluate the quality, and incorporate strategies to enhance adaptation to the labor market (World Bank, 2010a). Therefore, to ensure that the country can benefit from consistent and sustainable long-term investment in R&D or known as innovation activities, it is very important to the university receive adequate funding in large scale from either government or private sector to support research.  In addition, the emphasizing of the curriculum innovation in information and communication technology (ICT) are needed to assist in the development of the potential students to ensure the acquisition of other skills is relevant and practical to the needs of the current job which depends on the technology as a medium of teaching and learning (UNESCO, 2012a). Furthermore, the HEIs that providing research facilities also will gain some benefits such as image and reputation of the institution and thus attracting students from within and outside the country to furthering their study in  the educational institutions. Students and faculty who are involved in research also can foster a successful collaborative learning and research with the economy development (Zaman, 2004).

4.0       The Challenges in Strengthening Innovation Skills Education

There are numerous barriers to innovation for instance reported by (World Bank, 2010a), firms that conduct innovative activities expressed that the constraint to strengthen the innovative practices are caused by the difficulty in recruiting workers from abroad, the weak protection of intellectual property rights, lack of international exposure, language barrier, low of commercial research output from HEIs and industry and financial constraints.

Other than that, several recent studies stated that the main obstacle in the development of research capacity is due to lack of innovation research budgets, qualified researchers and supporting infrastructure such as research or facilities and laboratory (HRINC, 2010). Apart from that, resource constraints, lack of incentives to continue research in the universities and the lack of incentive to continue research also is a major cause of unsuccessful innovation research in an educational institution (World Bank, 2012). Besides that, more than a quarter of firms who carried out innovation activities stated that the shortage of highly skilled personnel, either from the local and international markets as a constraint on their innovation capacity. Although there are other factors have been identified as barriers to innovating and non-innovating firm innovation such as highly direct costs, excessive risk and small market size. It is clear that the lack of innovating and creativity skills is seen as a major constraint on the ability of firms to innovate (ABS, 2006).

While in the context of TVET which also known as one of educational activities that leading to employment also need to be more responsive and transparent to rapid change economy based on knowledge, technology and innovative. TVET institutions also should take a more autonomous role in helping to shape the country's educational system able to adapt in socially contribution by identifying ways to train marginalized or disadvantaged group able to survive in the challenges of innovation and knowledge-economy era (UNESCO, 2012). TVET transformation also requires a better knowledge and innovation-related information by give special attention in providing essential foundation education in workforce capabilities since primary and secondary. It is because of the previous study shows a significant constraint towards innovation skills which are most of the country still lacking in basic literacy and numeracy skills which represent as a foundation to capacity for innovation skills (Blau and Kahn, 2003).

5.0       Conclusion

As we know, Technical and Vocational Education Training (TVET) in Malaysia continues to play an important role in providing highly skilled labour to fulfil the needs of industry. In the context of a rapidly changing global economic scenario, the research and development of knowledge and skills is critical in maintaining the competitiveness of various industries and sustaining the growth of a country as a whole. The key competences that young people should possess by the end of their formal education to equip them for their working life, further learning, and skill development in the knowledge-based economy. Besides, the current focus is increasingly upon preparing knowledge workers to meet the challenges posed during the transition from the industrial age to the information age, with its concomitant post-industrial human-resource requirements and the changing world of work.

TVET is currently faced with the challenges posed by the displacement of the traditionally strong focus upon manual work in favour of mental work, or at least the changing mixture of competencies required in the workplace. The boundaries between manual and mental work are fading away, as many traditional forms of work and the respective preparation processes for learning to work undergo change. It show that the instilling innovative related skills as a top cluster in HEIs is very important in economic development of our country to become a dynamic and knowledge-based economy country. Recognizing innovation and creativity is the lifeblood in the knowledge-based economy, promotion of innovation and knowledge transfer is becoming increasingly popular among the Asian countries. It is against this context that HEIs are encouraged to move beyond the ivory tower to reach out to the industry, business and community to develop new synergy for promoting innovation and entrepreneurship.

6.0       The Strategies in Strengthening Innovation Skills Education

Today more than ever the role of technical and vocational education is critical because of the changes taking place in the world. Rapid technological changes and globalization have made training of the workforce a prerequisite in any nation that wishes to survive. Rapidly changing technologies involve a whole set of individual, organizational and societal factors. Changes in technology emphasis the need for more complex cognitive skills, ‘a strong back and a weak mind will not permit any nation to compete in today’s market place,’ (Goldstein and Ford, 2001). Goldstein and Ford argue that it is not simply a matter of literacy skills but the need for complex thinking skills. So, there are several strategies that should be taken to strengthen innovation skills education.

This paper suggests that for the foregoing discussion which are there is need for increased funding towards TVET in Malaysia country. This should be directed towards research and development acquisition of appropriate and up to date equipment and tools and also general maintenance and management of TVET institutions.  Besides, in recognizing that R&D is a critical factor in a k-economy, smart partnerships between the public and private sectors should be established. In particular, the private sector must play a greater role in technical and vocational training in order to complement the efforts of the government. The government should continue to assist the private sector in training and retraining workers, but there must be a continued commitment from employers to encourage and provide incentives for their workers to acquire new knowledge and skills. There also should have direct involvement in industries in TVET sector and making an industrial linkage policy with TVET sector in research and development program.

Establish a national TVET policy introducing upward mobility of TVET programmes at different skill levels and introduce a system for unified certification to meet industry need especially in innovation (research and development).  Also establish two main training paths ways as the entrepreneur skill development system in research and development and the skill training system while introducing skill standards at different skill training levels.

There is also a need for greater alliances between HEIs and the private sector to encourage industrial placements and internships. Greater attention must also be given to training workers in the small and medium industries (SMI). Most of the SMI firms can’t afford to invest in training, retraining, and R&D. The another strategy is the school systems at all levels should include entrepreneurship in their curriculum. It should focus on creating new and innovative ideas by the students and converting them into full-fledged business plans for future use. We know that the new economy is about the power of ideas and knowledge, which is why it is important to encourage entrepreneurship in Malaysia. Entrepreneurship is a collaborative effort. It may be easy to generate ideas, but hard to provide a conducive environment to allow the ideas to kick-start and grow.

7.0       Acknowledgements

            The authors are like to express a gratitude to Dr. Amirmudin Bin Udin, the lecturer, who has give his guidance and cooperation  in preparing this conceptual paper.

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