Skills in context : what can the UK learn from Australia ’ s skill ecosystem projects ?

This series publishes the work of the members and associates of SKOPE. A formal editorial process ensures that standards of quality and objectivity are maintained. ABSTRACT Over the past twenty five years, UK skills policy has focused primarily on boosting the supply of skilled or qualified labour. Despite significant progress on this front, British productivity continues to lag behind that of our major competitors, while policy makers increasingly confront the challenge of ensuring that skills are utilised effectively in the workplace. With policy in this area relatively underdeveloped in the UK, the paper considers the lessons that might be drawn from Australia's recent experiment with skill ecosystem projects. These represent an attempt to integrate skills policy within a broader business and economic development agenda and are explicitly aimed at helping organisations, in a particular sector or region, to enhance their capacity to develop and deploy skills. The paper explores the origins of the 'skill ecosystem' concept, the factors that led to it being adopted in the Australian context and the results of early project evaluations, before considering whether the UK might benefit from a similar approach. While a skill ecosystem programme can go some way towards addressing the challenge of skill utilisation, there are nevertheless limits to what can be achieved given the current neo-liberal growth model. 4 Competing on the basis of low wage costs is not an option. We must compete on the basis of our capability for innovation, enterprise, quality, and adding greater value through our products and services. All that is dependent upon raising our skills game. (DfES et al 2003:11) …where skills were once a key driver of prosperity and fairness, they are now the key driver. Achieving world class skills is the key to achieving economic success and social justice in the new global economy. (Leitch Review of Skills Final Report, 2006:9) …we understand the need for supply-side investment. But we have also taken up the more complex challenges involved in creating healthy skill 'ecosystems' capable of sustaining skill formation and use…The Skill Ecosystem approach is exciting work – because we're taking theory to practice and because we're tapping in to a rich and promising vein. If we get it right, we just might have a policy and a process that will serve true lifetime learning – the mix of skills and jobs, productivity and prosperity that mark a sustainable skill ecosystem.