T OWARDS I NTEGRATION OF FORMER SOCIALIST E CONOMIES IN CEE WITH EU: FOCUSING ON KNOWLEDGE POTENTIALS AND U NIVERSITY -I NDUSTRY C OOPERATION Prof. em.dr.dr.h.c

T OWARDS I NTEGRATION OF FORMER SOCIALIST E CONOMIES IN CEE WITH EU: FOCUSING ON KNOWLEDGE POTENTIALS AND U NIVERSITY -I NDUSTRY C OOPERATION Prof. em.dr.dr.h.c. Sung-Jo Park Free University Berlin

T ABLE OF C ONTENTS 1. Theoretical Discourses 2. Interreg development of peripheries 3. perception of natural sciences and mathematics in CEE : connotation of talent 4. reform of higher education and private universities as system transformation 5. Endogenous Development (metropolitanization) 5.1. Talsinki 5.2. Centrope 6. Exogenous Development 1: Foreign Direct Investment in Balkan (Serbia) 7. Exogenous Development 2:Access to Knowledge Potentials the Case of Samsung 7. Conclusion

1. T HEORETICAL D ISCOURSES 1. Industrialization-related dichotomy -hirschmans unbalanced growth (creation of unbalance) -von thuenens centrality (traffic center) -deutschs gravitation (absorption of bigger power) -perrouxs pole de croissance (spread effect) 2. Digital economy-centered dichotomy -floridas creative class leading to new center technology- talent-tolerance -landrys creative city (new cultural city) - industrial policy creating new centers -industry-university forming new clusters Comprehensive theory?

2. I NTERREG DEVELOPMENT OF PERIPHERIES T AXONOMY 1. subsidized strategy-EU-Border Region Development (1989) Goals : border region development, transnational development, interregional development -baltic sea region programme, 2007-2013 -EUSAIR (EU Strategy for the Adriatic and Inonian Seas) 2. endogenous strategy -Talsinki (Tallinn + Helsinki) -CENTROPE (Austria, Hungary, Slovakia, Tschec: Vienna + Bratislava)

3. EU-initiated Balkan region development strategy

3. P ERCEPTION OF NATURAL SCIENCES AND MATHEMATICS IN FORMER SOCIALIST ECONOMIES 1. socialist ideology not allowing for humanities and social sciences 2. equalization of gender 3. Mathematic Olympiade before 1989: Russia, Bulgaria, Romania, Hungary, East Germany (American Mathematical Society 2008) 4. IMO Ranking (2013): China, SK, USA, Russia.. Most CEE countries among 30 best

4. R EFORM OF HIGHER EDUCATION AND PRIVATE UNIVERSITIES Reform goals: 1. de-politicizing, de-ideologizigng especially in humanities and social sciences 2. Capitalism learning: shortage of teaching staffs 3. Bologna Process

P RIVATE UNIVERSITIES 1. confessional universities (e.g. dimitrie cantemir catholic university in romania) 2. international universities in rom, bul,pol, serb. Hun. by americans, europeans and germans focusing on business,econ,languages (e.g. Central European University..) 3. diversity universities (e.g. ecological univ in bucharest)

4.1.gabor denc college in hungary (computer firm) 4.2. media university in romania (media pro) 4.3. Romanian banking institute founded by romanian national bank and romanian association of banks 4.4. skolkovo business school (joint educational program in nano technology) 5. NGO-supported universities -Kosovo: Mitrovica (SPARK, 1994)-professional school, supported by three governments (sweden, denmark, and netherlands) 6. American Universities in Europe: e.g. franklin university

C OMMONALITIES 1. overemphasis on business studies - neoliberalism 2. americanization of curriculum and introduction of neo-liberalism 3. common interest increasing 4. financing of study 5. networking: Danube Rectors Conference, University network in the Adriatic/Ionian Seas

4.1. T ALSINKI Since 1992: Tal 0,4 mio and Hel 0,6 mio becoming a new metropolitan area Monthly labor mobility from estonia to finland: 0,4 mio (handicratsmen, nurses, computer experts,) Income in finland 3 times than estonia 20.000 estonian IC experts working in finland

5.2. CENTROPE: H EART OF E UROPE -central europe; declaration of kittsee 2003; covering 7,2 million inhabitants; but 4 languages and cultures -educational region (ICT)and automitve cluster (kia, hyundai,peugeot, vw, suzuki, cotroen, bmw producing 2,5 million units)-future: ICT, car, wood -focus on economy. Infrastructure, education, culture, tourism -center for intercultural learning (edTWIN project) -connection with trans siberian railway?

GENOUS

6. E XO

7. C N

FDI IN 27 COUNTRIES 2003-2010

6. E XOGENOUS D EVELOPMENT 1: FDI IN B ALKAN (S ERBIA )

7. Exogenous Development 2: Access to Knowledge Potentials the Case of Samsung

T ASKS OF R/D C ENTER 1. access to local applied/basic research: joint research 2. market research 3. cooperation with local research institutes, universities, and industries 4. access to public/private financial support, including EU support 5. access to local highly qualified manpower 6. build up local networks

C ONCRETE APPROACH STRATEGIES 1. University Cooperation 2. M/A: Dresden-Novaled; Israel-Transchip Eindhoven-Liquavista 3. Joint Research Project 4. Grant for excellent students for further study in USA, UK and France (Samsung Global Scholarship) 5. Access to retired local engineers and executives, especially in Japan and Germany 5. high remunerations; Internal promotion to top position 6. Summer university

E DUCATION FOR TAPPING TALENTS Summer University in Poland Executive MBA Program at Munich Business School Master in International Management in Barcelona

T AXONOMY OF R/D C ENTERS Access to local research institutes (basic/applied research) USA, Japan, UK and NL Access to local hi tech potentials and clusters -dresden, eindhoven, middlessex, skolkovo (moscow), israel, finland (espoo) Access to low-cost talent -poland, ukraine, bangladesh, vietnam, China, North Korea

S KOLKOVO CLUSTER : A NEW SILICON VALLEY ?

S KOLKOVO : S ILIKONNOVAYA D OLIN A IN R USSIA Skolkovo Institute of Technology (SIT) will become a major generator of innovation in Skolkovo 5 Technology clusters (energy, bio, IT, space, nuclear). Collaboration with MIT

S AMSUNG -Research center in Moscow and Skolkovo -Samsung Skolkovo Management School Moscow -Samsung Skolkovo Economic Research Institute

Poland

P OLAND : THE SECOND LARGEST IT MARKET IN CEE Major MNCs that have opened centers recently in Poland include: In June 2013, Genpact opened a center in Szczecin to expand its services portfo lio in Europe. The new center will deliver services in domains such as finance a nd accounting, supply chain management, customer relationship management and back office services. Google has set up a R&D facility in Krakow with focus on product research and development. The center has about 100 employees working on Google TV and I nfrastructure and analysis for Googles sales department with major focus on e ngineering rather than research. In September 2012, Facebook opened a center in Warsaw focusing on applicatio n development. This center will serve Central and Eastern Europe covering 30 countries. Krakow and Warsaw have become the major software clusters in the country. T ogether, Krakow and Warsaw have an installed talent pool of 30,500 IT/ITES p rofessionals and a fresh talent pool of 17,000 engineers graduating every year. Locations such as Lodz, Lublin and Gdansk are fast emerging as key Tier II de stinations for software development. In recent years various MNCs have expan ded their operations in these locations. Samsung opened a R&D center in Lodz in early 2013 and has plans to hire 150 employees in the center. The new center focuses on the development of advance d digital television software and software for Samsungs mobile devices.

Consortium won prestigious grant EU-KOR EA ICI Consortium won prestigious grant EU-KOREA I CI "Korean European Global Leadership Progra m for Sustainable Development" Project Title:KOREU GLP for Sustainable Develo pmentEU Lead Institution:Sodertorn University EU Member State:Haaga-Helia University Warsaw School of Social Sciences and Humanitie s University of FlorenceNon-EU Lead Institution: Hanyang UniversityNon-EU Partner Country:Ko rea

Korean LG, still expanding its TV LCD plant in Mlawa and is constructing a huge factory in Wroclaw area. According to LG press release Poland will be the biggest supplier of LCD screens by the end of 2015.

EU-K OREA U NIVERSITIES C ONSORTIUM, 2009 -funding by the Education, Audio Visual and Culture Executive Agency of EU and Korean Ministry of Education, Science and Technology -members: stettin univ.,cardinal stefan wyszynski univ,nicolaus copernicus uiv, jagiellona univ, univ of warsaw, gdansk univ of technology, soederstoen uni, haega helia univ of appplied sciences, hanyang univ, ajou univ and konkuk univ -summer school 2012 -group of prof. hartmut yersin

ukraine

U KRAINE : S PACE I NDUSTRY

U KRAINE : S AMSUNG R/D IN K HIV, K HARKIV Ukraine represents the largest IT Outsourcing in dustry in Eastern Europe IT Outsourcing industry growth rate for 2009 1 3% More than 900 IT companies 18,000+ specialists involved in IT Outsourcing Ukraine has more than 800 universities and colle ges Majority of Ukrainian IT specialists (est. 70%) wo rk for American or European customers A number of Government initiatives introduced t o support and promote the Ukrainian IT industry

ELEKS SOFTWARE ELEKS Software is a leading company in the Ukr ainian IT industry with a diverse customer base and over a decade of experience, delivering softw are services and solutions for the US and Europe an markets 470 professionals, including experts in Microsoft technologies, Java, Web, mobile, embedded devel opment, and localization

8. C ONCLUSION -Dichotomy centre-periphery, still persisting, but sub-centres (metropolitanization) emerging -Main factors: knowledgization (university- industry cooperation), mobility thanks to EU, recourse to potentials combined with start-ups, market potential in cee -locational advantages utilizing SOC -Utilizing low wage level and high skilled labor

Documents

T OWARDS I NTEGRATION OF FORMER SOCIALIST E CONOMIES IN CEE WITH EU: FOCUSING ON KNOWLEDGE POTENTIALS AND U NIVERSITY -I NDUSTRY C OOPERATION Prof. em.dr.dr.h.c