1. Innovation, Competitiveness and Sustainable WellbeingStavros A. ZeniosPresident of UNICA University of Cyprus

2. Outline The State of the World The State of Cyprus Competitiveness and Innovation Social and Human Capital Geography is Alive and Well 3. State of the World: socialConstructed uncertainty Technological innovation Complex interconnectednessSocial reflexivityPost-traditional societies (Anthony Giddens, Beyond Right and Left) 4. State of the World: environment Global ecological footprint: 1.5 planets earth At the current pace of population growth and consumption,by the year 2030 we will need 2 planets earth to sustain us. And of course we have only one. Ecologicalfootprint of regions:Mediterranean nations need 3 Mediterranean seasCyprus ???(Global Footprint Network) 5. 6. State of the World: environmental World Bank Adjusted Net Savings 7. CYPRUS Adjusted Net Savings 19891990 19911992 19931994 19951996 19971998 19992000 20012002 20032004 20052006 20072008 30.00 25.00 20.00Axis Title 15.00 10.005.000.00 -5.00 POLAND Adjusted Net Savings30.0020.0010.000.00-10.00-20.00 7-30.00 8. State of the World: sustainabilityClub of Rome--MITLimits to Growth,1970s 9. Since 1980sCorrections =increasingly more costlyNo correction =Collapse9 10. Hysteresis Societal attention deficit Social choices Lack of know-howCollapse Trap 10 11. State of the World: economy World economy is undergoing seismic shifts.This is partly because of the success in increasing productivity in manufacturing, so that a small fraction of the population can produce all the toys, cars and TVs that even the most materialistic and profligate society might buy (Joseph Stiglitz, Freefall, 2009) Huge trade imbalance EAST-WEST. Manufactured goods automated-no job creation. Manufacturing related SERVICES exacerbate the problem. 12. The State of Cyprus 300% GDP private debt +70% GDP public debt Competitiveness on a ride 34.40.50. Oversized banking sector 13. The vicious circle of failures (In Mari and elsewhere) AmbivalenceLack of selfHesitationconfidence Incompetence 14. The virtuous circle(of our future)Self confidence andidentity 15. InvictusI am the master of my fate:I am the captain of mysoul. William Ernest Henley (1849-1902) 16. Innovation Ability to anticipate and adapt external and internal changes, environmental, social and economic. Construct uncertainty Deconstruct uncertainty Innovation vs Tradition16 17. Competitiveness and Innovation High value added from innovation Natural resources Energy Health-aging Multiculturalism and globalization 17 18. Shit happens Innovation is planned Knowledge Innovation Economic wellbeing Knowledge workersKnowledge has mass Constructed advantage Make it stick: Knowledge Regions18 19. The Triple Helix Universities GovernmentIndustry 20. Factors of success for knowledge regionsInnovative sectors of economic activityStrong forces of innovation in all organizationsAppreciation of a culture of knowledgeFree flow of informationSignificant support for creative activitiesStrong ties between the arts and culture,with scientific and technological knowledgeSignificant percentage of the work forceengaged in innovative activitiesActive participation of citizens in shaping theurban environment and its special character 21. Social CapitalTRUST Honesty Keeping promises Reliability in performing duties Professionalism Reciprocity Values have economic value added 22. Social Capital: Role of the Humanities Technocratic and Humanistic EducationPractical education creates HUMAN capitalStudy of the humanities creates SOCIAL capital Jared Diamonds trap? 23. Geography is alive and well!Most Creative Forbeswiredclass list ofcitiesmost attractive cities Austin, TX, Dublin in Ireland, West Jutland in DK, Route 128 in Boston, Silicon Valley in CA Brescia and Como in N. Italy Lefkosia Knowledge Region 24. Conclusion:Innovation is the way Karl MarxSociety poses itself only such problemsas it can solve John F. KennedyOur problems are man-made, therefore they can be solved by men Stavros A. Zenios amendmentOur problems are man-made, therefore they can be solved by women