Extracted Annotations (26/10/2017, 12:54:24)

"This book is about the economics of innovation and knowledge. One of the major conclusions drawn is that the perspectives standard economics imposes on society are biased, incomplete and inadequate. The focus on rational choice, allocation of scarce resources and equilibrium only captures some dimensions of the modern economy, notably shortterm and static ones. Alternative perspectives, in which the focus is on learning as an interactive process and on processes of innovation, give visibility and direct attention to other, at least equally important and more dynamic, dimensions." (Lundvall 2016:20)

"This book presents two sets of theories or focusing devices - the innovation system and the learning economy" (Lundvall 2016:20)

"Using an alternative analytical perspective, where the focus is on processes of innovation and learning, points in other possible directions for institutional design and economic policy, where the focus is on collective entrepreneurship, knowledge sharing and international collaboration." (Lundvall 2016:21)

"On this background, it is argued that there is a need to design Keynesian policies coordinated at the European level in such a way that they promote deep institutional change in education, labour market and industrial policy in Southern Europe. Public expenditure needs to be allocated to stimulate the learning capacity where it is weakest - this is why the solution may be referred to as a 'new new deal'. It is about redistributing learning capacities." (Lundvall 2016:29)

"It is argued that the economic upswing as measured by high rates of registered growth in GNP in African countries needs to be used to support structural and institutional change across the economic, social and political spheres bringing them closer to what we refer to as 'learning economies'." (Lundvall 2016:29)

"What kind of policies and institutions are necessary in order to transform the current increase in rents from commodities exports into industrial investment and upgrading of agriculture and agroindustrial development? Recommendations of neoclassical economists are contrasted with those derived from the classical development economics that" (Lundvall 2016:29)

"includes scholars such as Dobb, Hirschman and Sen" (Lundvall 2016:30)

"In this book, the focus is on the creation of new kinds of resources (new use values) rather than on allocation of a given set of scarce resources. Further," (Lundvall 2016:30)

"the focus is upon how individuals and organizations learn rather than on how they make rational decisions on the basis of a given set of preferences. This double change of focus has both theoretical and practical implications." (Lundvall 2016:31)

"As the focus moves to innovation and learning, the need to revise the understanding of basic concepts in economic theory becomes obvious. Below I have listed 10 points where my research as it is presented in this book indicates a need for a diff erent understanding from the one off ered by neoclassical economics." (Lundvall 2016:31)

"1. The concept of scarcity is at the very core of neoclassical economic theory, but it does not apply to knowledge. 2. The assumption of rationality and rational expectations cannot be applied to innovation processes. 3. Markets for innovations are not arm's length markets with prices as the major decision criterion. 4. More intense competition often goes hand in hand with more intense cooperation and in combination they tend to stimulate technical and organizational change. 5. Firms and individuals are diff erent in terms of both skills and eff orts. To assume a representative agent misses the most important dynamics. 6. Learning is a social process and hence there is a need for a socioeconomic approach to understand the economy. 7. Growing inequality has economic costs as well as social costs since it undermines the processes of learning. 8. At the core of international competitiveness are dynamic capabilities, including the capability to learn, rather than relative costs. 9. Any assessments of impact of expanding international trade should take into account how it aff ects the national knowledge base in the countries involved. 10. Governments have an important role to play in giving direction to new technological trajectories and in fostering economic development." (Lundvall 2016:31)

"One fundamental reason for optimism is that all people, including economists and policymakers, do have the potential to learn from experience." (Lundvall 2016:32)

"Box 9.7 N ational Patterns in Work Organization 1 7" (Lundvall 2016:259)

"Table 9.1 shows that people working in diff erent national systems of innovation and competence building h ave very diff erent access to learning by doing. It also shows that at lower income levels, there is bigger proportion of the workforce that works in either simple or Taylorist organizations. The richer the country, the more workers are employed in discretionary learning contexts. But it is also important to note that countries at similar income levels - Germany and the United Kingdom - have quite diff erent distributions of workers between the four forms. While the proportion of workers operating in the lean production is more than 40 per cent in the United Kingdom, it is less than 20 per cent in Germany. The microfoundation of national systems of innovation diff ers not only because of levels of income but also because of other systemic features." (Lundvall 2016:260)

"9.4.4 F irms as sites for employee learning" (Lundvall 2016:260)

Ch12 (note on p.344)

"There is thus a discrepancy between the reporting of record growth rates for African economies in media and the reality of how people's living conditions have evolved over the last decade in the African high growth economies." (Lundvall 2016:344)

"The widely shared understanding among development scholars that registered economic growth and development must be seen as two distinct, even if related, processes has become more evident than ever." (Lundvall 2016:344)

"In this chapter, we will argue that in order to transform the economic upswing as measured by gross domestic product, fastgrowing African countries need structural and institutional change across the economic, social and political spheres that bring them closer to what we will refer to as 'learning economies'." (Lundvall 2016:344)

"The expansion of the commodity sector does not automatically create largescale employment directly and so far it has rarely resulted in a substantial increase in job creation in upstream and downstream manufacturing and in knowledgebased services." (Lundvall 2016:345)

"What kind of policies and institutions are necessary in order to transform the current increase in rents from commodities exports into industrial investment and upgrading of agriculture and agrondustrial development?" (Lundvall 2016:345)

"The theoretical perspective that we propose on this basis takes into account that we have entered a phase - the learning economy - where it is useful to take as a starting point that 'learning' is at the core of any process of development." (Lundvall 2016:345)

"Development is a process where individuals and organizations learn to do new things and learn to do them in new ways in conjunction with structural transformation. At the core of the process of development is competence building." (Lundvall 2016:345)

"Second, in many African countries the most fundamental barriers for development are sociopolitical rather than technoeconomic. Here political transformations must go hand in hand with socioeconomic and technological transformations." (Lundvall 2016:345)

"Valensisi and Davis ( 2011" (Lundvall 2016:346)

"They fi nd that the impressive growth record was based on rapid growth in the exports of hard commodities and on a capital infl ow through foreign direct investment (FDI), overseas development aids (ODA) and remittances from expatriates that allowed for a strong growth in consumer demand for services and for imported consumer goods. Agriculture grew only slowly, and in most of the least developed economies, there was deindustrialization (in twothirds of the least developed economies the share of manufacturing was reduced from its already modest level)." (Lundvall 2016:346)

"The growth process and the increased demand for natural resourcebased commodities did not lead to any increase in the investment ratio - on average the rate of investment remained close to 20 per cent. Most of the extra income was absorbed by middleclass consumption, and in many of the countries import grew more than exports (in 38 out of 49 countries). One problem with this pattern of growth is that it does not create suffi cient number of decent jobs for the many young people in Africa. Another problem is that it establishes a vulnerable economic structure where the whole economy is dependent on single hard commodity export products." (Lundvall 2016:346)

"Strong growth across the continent has not been translated into the broadbased economic and social development needed to lift millions of Africans out of poverty and reduce the wide inequalities seen in most countries. This is because Africa's recent growth, driven by primary commodities, has low employment intensity - that is, the ability to generate jobs.' (UN 2010)" (Lundvall 2016:346)

"If we start from neoclassical economics and deduce how less developed countries may catchup, the focus of policy intervention would be on institutional design aiming at welldefi ned private property rights, including intellectual" (Lundvall 2016:348)

"property rights. It would certainly recommend ubiquitous introduction of the market mechanism, propagate private ownership and recommend keeping the public sector as small as possible. It would advise against protectionism and hampering with international trade and capital fl ows. The role of government should be limited to securing a stable macroeconomic context and to guarantee private property, including intellectual property." (Lundvall 2016:349)

"The recent history demonstrates that most of the countries that have built their strategy on the assumptions of neoclassical theory have failed to develop and that most of those that have prospered, especially those in Asia, have deviated from these ideas." (Lundvall 2016:349)

"The report by Stiglitz et al. ( 2013 on industrial policy in Africa off ers a modifi ed version of the neoclassical development theory that use the frequency of market failure and not least the importance of knowledge and learning as arguments for a more selective and interventionist industrial policy. Actually it argues that neoclassical economics has accepted that industrial policy is now not only acceptable but also commendable. It may be noted that the authors say nothing about infant industries and trade and that there is a tendency to recommend moderate interventions with full respect for 'comparative advantage'." (Lundvall 2016:349)

"A group of scholars with mixed ideological background - Arthur Lewis, Paul Rosenstein Rodan, Hans Singer, Maurice Dobb, Amartya Sen, Albert Hirschman and others - came with more complex prescriptions for how poor countries could grow rich. They proposed that fi ve elements were absolutely essential for development: 1. 2. 3. 4. A high rate of savings and investments. A fi rst stage of import substitution increasingly to be combined with expansion of export. Absorbing technological knowledge from abroad. Focus on expanding the manufacturing sector. 5. An active role of the state in guiding the direction of development. It is interesting to note that in the countries that were the most successful and competitive entrants in the world economy (Japan, Korea and China), all the fi ve elements were present. But it is also true that in other parts of the world the attempts to combine import substitution with learning from abroad were much less successful in developing selfpropelling industrial growth - at least in the long term. The less successful examples were often countries in Latin America and Africa with higher degrees of inequality and with political systems that invested less in building the domestic knowledge base necessary to learn from abroad." (Lundvall 2016:350)

"In this context Kutsnetz ( 1966 makes a very elementary but often neglected point. He shows that high rates of aggregate growth typically require that the big sectors grow rapidly. Even if a new sector grows very rapidly, its contribution to aggregate growth will, to begin with, be modest. Therefore accelerating growth in the currently dominating sectors - such as agriculture or the urban informal service sector in Africa - is an obvious way to raise income per capita in the short to medium term. A typical pattern of growth for the rich countries has been to raise productivity in agriculture, while workers have moved from agriculture to manufacturing. In Africa raising the productivity in the informal sector and to create demand for labour outside the informal sector is a major challenge." (Lundvall 2016:351)

"In Tanzania the informal sector is estimated to account for more than 55 per cent of employment in urban areas and over the 2001- 2006 period the number of workers in the informal sector increased at an annual rate of 9 per cent as compared to 4 per cent for the economy as a whole (Kahyarara and Rutasitara 2009)." (Lundvall 2016:351)

"Given its current weight in the subSaharan economies measures to upgrade workers' skills and the technologies used in the informal sector would give substantial contributions to growth and welfare." (Lundvall 2016:351)

"Nevertheless, it is equally true that in the long term, the emergence and growth of new sectors is crucial for the wealth of the nation. The ideal new sectors would be characterized by rapid technological learning, increasing returns to scale and increasing world demand." (Lundvall 2016:351)

"It may be a problem to foster such new sectors when the traditional big sectors have strong representation in the political system (e.g., soy producers in Argentina and the oil industry in the Northern Africa). Finding ways to align interests of dominating sectors with the formation of new sectors may be necessary to overcome such barriers. 3" (Lundvall 2016:351)

"Is it correct that such sectors off er less potential for technological learning and for building upstream and downstream couplings as well as lateral transfer of knowledge to other sectors, or does this version of the 'resource curse' view just represent leftovers from the classical development economists?" (Lundvall 2016:352)

"Stiglitz ( 2011 proposes that there is a need to engage in 'rethinking development economics'. It is remarkable that he builds his argument around the concept of 'the learning society' - a concept that has been central among innovation scholars for many years. Dalum et al. (1992) presented ideas for innovation policy in the learning society in the context of the analysis of national systems of innovation (Lundvall 1992 . Two years later, Lundvall and Johnson ( 1994 further developed this concept under the heading 'the learning economy'. As pointed out in Lundvall et al. ( 2009 , several scholars (such as Viotti 2002 have proposed to refer to national learning systems in developing countries rather than to present them as national innovation systems. In this section, we will present a perspective on development that is rooted in our interpretation of the concept of 'the learning economy'." (Lundvall 2016:352)

"The fi rst refers to he quality of working life while the second refers to the crucial role of the uneven capacity to learn and the u neven access to learning The most primitive versions of welfare economics assume that increasing the bundle of consumption goods is basically what constitutes increased welfare. This is why national income per capita is the most frequently used indicator. The perspective is implicit in the argument in favour of free trade combined with 'fl exible' work arrangements." (Lundvall 2016:353)

"This traditional perspective is especially problematic when it comes to assessing the economic development in Africa where increasing consumption opportunities for the middle class seem to go hand in hand with more vulnerable employment and less quality in working life for the majority of workers." (Lundvall 2016:353)

"In order to understand the importance of learning, it is useful to start from Amartya Sen's defi nition of welfare as 'freedoms' and capabilities to realize what you regard as valuable. This is, in general, a valuable approach because it takes into account that the aspirations of people may be diff erent in diff erent countries and regions." (Lundvall 2016:353)

"We would nonetheless, in this context, like to emphasize 'access to learning' as perhaps the most fundamental freedom - especially in a society characterized by rapid change in people's private and professional lives. The two concepts - learning and development - are crucially interconnected both at the individual level and at other levels of the economy (learning organizations, learning regions and the learning economy at the aggregate level)." (Lundvall 2016:353)

"There are two reasons for why we should focus on learning. First, a crucial prerequisite for any kind of economic transformation is a speedup of learning as competence building both among individuals and within organizations. Structural change is a process where people are confronted with new tasks. Second, we would argue that learning is not only of instrumental value, enhancing the productivity of the individual worker, it is also of substantive value for individuals. This is obvious for the child's development into adulthood. To block the child's process of learning to communicate and act in the society would be cruel. For most adults, a life without any learning would constitute monotony." (Lundvall 2016:353)

"Stiglitz ( 2011 argues that there is another kind of link from a learning economy perspective to inclusive development. His argument is the correct observation that the learning society will be most successful when learning is broad based and knowledge is widely spread in the economy. In a series of papers on the learning economy, we have presented a somewhat diff erent perspective where we have shown that if left to itself, the learning economy tends to become increasingly polarized (Lundvall 1996, 2002). Only with strong and systematic government intervention aiming at strengthening the capacity of weak learners and off ering them better access to learning is it possible to build strong learning societies." (Lundvall 2016:354)

"Alternatively, they may respond by engaging in organizational and technological learning resulting in a stronger competitiveness based on higher productivity and incremental product and process innovations." (Lundvall 2016:354)

"Freeman (1987) developed a broader concept that took into account national specifi cities in how fi rms organize innovative activities; he emphasized, for example, how Japanese fi rms increasingly used 'the factory as laboratory'. Researchers in Aalborg (Lundvall 1985 Andersen and Lundvall 1988) also developed a concept of innovation systems where there are other major sources of innovation than science." (Lundvall 2016:355)

"Innovation is seen as refl ecting interactive learning taking place in connection with ongoing activities in production and sales." (Lundvall 2016:355)

"Therefore the analysis takes its starting point in the process of production and the process of product development assuming, for instance, that the interaction with users is fundamental for product innovation. 4" (Lundvall 2016:355)

International Development seeks to produce innovation but does not innovate in itself (or only innovate very slowly, divorced from insights) (note on p.357)

"Figure 12.1 A model linking transformation pressure to the capacity to change and to the distribution of the costs and benefi ts of change" (Lundvall 2016:357)

"Washington consensus based on neoclassical assumptions recommends that governments leave it to the market to determine the transformation pressure and to install a capacity to adapt through fl exible labour markets. Redistribution of costs and benefi ts of change should be kept at a minimum in order not to get prices and incentives wrong." (Lundvall 2016:357)

"It is interesting to note that they as well as the fathers of the concept of 'infant industry argument' (Hamilton and List) saw strengthening of the knowledge base of the economy as another necessary prerequisite for economic development." (Lundvall 2016:358)

"The emphasis on intangible capital, knowledge and technology has become even more clear in recent theories of economic development pointing to 'capabilities' and innovation systems as crucial for economic development." (Lundvall 2016:358)

"This perspective neglects that innovation is, to some degree, demand driven and that engaging in entrepreneurial activities is much less risky in a situation when aggregate demand is growing." (Lundvall 2016:358)

"One of the most fundamental weaknesses of national innovation systems in Africa is the fi nancial system. In most of the least developed countries access to capital for supporting ordinary trade, for investments in production capacity and especially for new innovative ventures is very limited." (Lundvall 2016:358)

"A major problem is that the demand for candidates with higher education is very limited in the least developed countries. This leads to an exodus of highly educated people to the rich countries and in this way the scarce resources invested in universities end up with being used in the developed countries." (Lundvall 2016:359)

"For many African countries, the brain drain rate (the brain drain rate is the emigrants' share of the corresponding age and educational group in the home country) is over 40 per cent. This is for instance true for Uganda, Rwanda, Somalia, Eritrea, Liberia, Sierra Leone and Gambia." (Lundvall 2016:359)

"The main reason for the exodus of skilled people is lack of job opportunities and substantial diff erence in earning between home country and the host country. In a paper on higher education, innovation and economic development (Lundvall 2008), we showed that the lack of demand refl ects absence of innovation and therefore investments in higher education need to be coordinated with support to framework conditions and policies that stimulate innovation. The higher the rate of innovation, the higher is the rate of return on investments in higher education." (Lundvall 2016:359)

"Emphasis is on narrowly defi ned scientifi c disciplines and higher education institutions often operate as academies with very limited elements of practical training. Introducing problem based learning and elements of practice in theoretical studies may reduce the problem of creating jobs for the candidates." (Lundvall 2016:360)

"Nondiscrimination as development strategy" (Lundvall 2016:360)

"A focus on reducing discrimination when it comes to learning, not only in terms of access to formal education - but also processes of learning in production and policy processes - expands the access to human resources and creativity." (Lundvall 2016:360)

"In many societies the inclusion of women and ethnic minorities can off er new potential and more commitment to economic processes." (Lundvall 2016:360)

"Developing new institutions that give young people a 'voice' in development issues may be a way to avoid that the youth get alienated and engage in destructive activities individually or collectively." (Lundvall 2016:360)

Applies just the same to international Development activities (note on p.361)

"The development of a new industrial policy based on a strategic approach that refl ects the specifi c needs and conditions of LDCs;" (Lundvall 2016:361)

"The promotion of domestic technological learning and innovation and improvements in productivity in both agricultural and manufacturing sectors (UNCTAD 2013)." (Lundvall 2016:361)

In international development projects , those learning timescales are too short, and the learning is focusses within the organisation (note on p.362)

"When policymakers in African countries take new initiatives in industrial policy, they should be aware of the fact that it is a learning process. This involves systematically evaluating outcomes and not least registering unexpected outcomes - both positive and negative - and making sure that the next wave of initiatives takes these experiences into account." (Lundvall 2016:362)

"solutions may be adequate has little to do with the source of the technology but depends on the contextualization and adaptation of the technology into the local context (Arocena and Sutz 2000 ." (Lundvall 2016:363)

"The lack of protection of these resources can be argued in terms of the need for individual freedom to move from one country to another. The argument is weakened when it turns out that the rich countries' respect for this freedom is highly selective. Ordinary poor people with less education are eff ectively blocked at frontiers of the rich countries." (Lundvall 2016:363)

"The lack of protection of human capital stands in strong contrast to the global rules regarding intellectual property rights." (Lundvall 2016:363)

"There is little doubt that the global regime for knowledge sharing and protection is biased in favour of the rich countries. To renegotiate this regime would require a coordinated eff ort of African countries, perhaps with a role of the African Union." (Lundvall 2016:363)

"On this basis innovation scholars have argued against a specifi c version of natural resource curse based on the assumptions that: 1. The learning potential and the knowledge content is limited in natural resourcebased sectors. 2. Natural resourcebased sectors tend to develop as enclaves with limited capacity to drive the creation of upstream and downstream manufacturing. It is in line with the argument in this chapter that the key diff erence between successful and less successful growth policies lies in the nature of the learning process that promotes the economic potential of access to natural resources (Wright 2001 ." (Lundvall 2016:364)

"A crucial issue is how natural resourcerelated activities make use of and master new technologies and knowledge to improve production processes (De Ferranti et al. 2002" (Lundvall 2016:364)

"In relation to building clusters around natural resources - both mining and agriculture - we see a crucial need for building relevant capacity in e ngineering and design" (Lundvall 2016:364)

"One important reason why the attempts to realize import substitution in Latin America and Africa did not succeed is that technical training and engineering have" (Lundvall 2016:364)

Again, clear parallels with international Development work, where there are no professional qualifications (note on p.364)

"been given too little attention as compared to general education in science, social sciences and humanities." (Lundvall 2016:365)

"14.3 E xperienceBased Learning Is Not Always Progressive Learning can result in criminal skills and bad habits. Enterprises may learn to become more profi cient in producing and marketing products that are dangerous and unhealthy. Learning has a positive connotation in common with concepts such as knowledge, technical c hange and innovation." (Lundvall 2016:395)

"H owever, while more knowledge and more innovation is a prerequisite or 'progress', it is not equal to 'progress'. It is therefore a collective task both to promote learning and to give direction to processes of learning." (Lundvall 2016:395)

“science and technology-based” (STI) mode of learning

“learning-by-doing, by-using and by-interacting-based’ (DUI) (note on p.396)

"The population in a region may have learnt activities no longer in demand - one major reason for the success of the IT industry in the Silicon Valley was the absence of heavy industry experience in the region." (Lundvall 2016:396)

"In such situations, external interventions giving new direction both to STIand DUImodes of learning are necessary." (Lundvall 2016:396)

"The second major task is, from time to time, to open up new technoeconomic trajectories. The state has an important role as a collective entrepreneur." (Lundvall 2016:396)

"14.4 E urope as a Learning Economy The concept 'the learning economy' was inspired by research on innovation and industrial dynamics in Denmark. Empirical studies demonstrated that private fi rms that engaged in interactive learning with customers and workers performed better than those that did not." (Lundvall 2016:396)

"The countries in Europe with wide participation in 'discretionary learning' turned out to be more engaged in radical innovations than the rest ( chapter 8 ." (Lundvall 2016:396)

"Together these observations give ground for optimism. If democratizing the economy - giving consumers and workers voice and reducing inequality - contributes to strong national economic performance, the future looks bright." (Lundvall 2016:396)

"When aggregate economic growth of GNP reached more than 10 per cent per annum in China, the investment in knowledge was growing at double that rate. Research and development (R&D) expenditure, the annual number of PhD graduates and the number of scientifi c publications were all growing with around 20 per cent per annum. While the R&D intensity remained unchanged during the period 2000- 2015 at around 1.5 per cent in a stagnating Europe, it grew from 0.8 per cent to 1.5 per cent in the rapidly growing Chinese economy." (Lundvall 2016:399)

"This massive investment in knowledge has not been accompanied by a corresponding eff ort to build a learning econom y, however . Most Chinese fi rms operate with hierarchical forms of organization, and there is little room for creative contributions from employees." (Lundvall 2016:399)

"While this chapter is being written, there has been a massive increase in the number of refugees coming to Europe from war zones in Syria, Iraq and Afghanistan - among them are also an increasing number of young African illegal emigrants hoping to get away from poverty and unemployment. The fi rst reaction has been the attempts to build Fort Europe to stop illegal immigrants from entering. Given the global communication infrastructure and the proximity between Africa and Europe, it is doubtful if these eff orts can succeed. It is possible that failure and selfnterest would trigger European collaboration with African countries aiming at job creation in Africa." (Lundvall 2016:400)

"The fi nancial crisis had as prerequisite the deregulation of fi nancial markets led by the United States and the United Kingdom and supported by multilateral organizations such as IMF." (Lundvall 2016:401)

"The deregulation strategies of the countries that host the world leading fi nancial centres (the United States and the United Kingdom) pursued policies that imposed enormous social and economic costs on the rest of the world." (Lundvall 2016:401)

"The ongoing refugee crisis may be seen as refl ecting demographic crises in diff erent parts of the world. In parts of Europe and Japan, the nativity is so low that population stagnates, and as a result there is an aging population. In Africa and parts of Asia, the population keeps growing at high rates, and as a result, the proportion of young people is high. Limited job opportunities in these parts of the world give strong incentives to the young to move from the South to the North. In the North, the major interest is to receive and integrate welleducated immigrants who give positive economic contributions to the national economy." (Lundvall 2016:401)

"Market forces will, if left alone, only aggravate the problems." (Lundvall 2016:401)

"To avoid major depressions as triggered by fi nancialization, there is a need for global cooperation on a new foundation where the focus is on knowledgebased development rather than on monetary discipline. The current institutional setting where the IMF and the World Bank tend to support rather than control the fi nancialndustrial complex needs to be changed. In this context, the recent collaboration of major development banks from BRICS countries (Brasil, Russia, India, China and South Africa) resulting in an alternative World Development Bank is of major interest. Global cooperation could result in a Tobin tax on speculation with incomes allocated to strengthening the knowledge base and innovation systems in the least developed countries." (Lundvall 2016:403)

"14.11 D emographic Crises and Migration in the Context of the Globalizing Learning Economy The rate of world population growth is unevenly distributed between countries and continents. When combined with worldwide communication and with big and growing gaps in living standards, it results in growing fl ows of migration between continents. In this section, the focus is on the impact of migration on innovation systems and the learning economy." (Lundvall 2016:406)

"This is reinforced by the impact of immigration on the industrial structure. More ample access to lowskilled workers with modest wage demands makes it possible to prolong the life of sectors and workplaces characterized by Taylorist or simple work organization." (Lundvall 2016:406)

"This benefi cial eff ect cannot be seen in Africa. The rather small proportion of welltrained professionals, scientist and engineers in Africa are attracted to OECD countries off ering better working and living conditions. In some African countries, around half of all doctors and nurses work in Europe while there is acute shortage of health personnel in the country of origin." (Lundvall 2016:407)

"While there are ample problems in Africa that require highevel expertise, the eff ective demand for this kind of knowledge is weak." (Lundvall 2016:407)

Basically that is me and TTEL (note on p.407)

"Global warming, fi nancial instability and demographic challenges are three major global challenges which have in common, fi rst, that market forces alone cannot be expected to lead to acceptable and sustainable outcomes and, second, that nation state governance alone is insuffi cient." (Lundvall 2016:410)

"There is little doubt that capitalist development has contributed to the raise in productivity and to the increased diversity of the world economy, which are prerequisites for the raise in living standards and in their turn constitute the basis for better health, nutrition and education. Competition is a major factor driving innovation. The profi t motive and the search for enrichment is one reason why individuals work hard and entrepreneurs constantly look for new opportunities. Markets are useful institutions that reduce the need for administrative decisions. This is important since the capacity to make knowledgeable and wise decisions is limited - sometimes it is absent because of the selfnterest among decisionmakers. Therefore neoliberal economists, who hail the market and raise doubts about the size and role of the public sector, have got some of the historical evidence on their side. But they tend to abstract from the other set of prerequisites for the raise in productivity and increased diversity. State regulation of working conditions and the formation of trade unions played an important role in making capitalist growth socially sustainable. The most successful countries had a strong state that promoted general education before the beginning of, or at very early stages of the industrialization process. Since the beginning of the millennium, China drives world economic growth and leads investments in knowledge on the basis of a mix of planning and markets." (Lundvall 2016:410)

"While the West struggles against religious fundamentalism resulting in terror, it has failed to recognize that it has developed an e conomic fundamentalism that stands in the way of making full use of the potential off ered by science, technology and experiencebased learning. This book presents an alternative perspective that we refer to as 'the Economics of Hope'. The starting point is that knowledge is seen as the most important resource in the economy and learning as the most important process. This gives hope because knowledge has unique characteristics in terms of scarcity. Learning is a cumulative process, and the more you use knowledge, the more it grows. Knowledge can be shared with others without making it less useful, and one excellent way to learn more is through sharing knowledge with others. Young university professors experience this when they prepare and execute their fi rst courses. When our societies draw the full implications from such a perspective, many problems can be solved and wellbeing can be enhanced." (Lundvall 2016:411)

The Learning Economy and the Economics of Hope

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The Learning Economy and the Economics of Hope

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