engineers and technologists
to convert the innovative ideas into production capabilities. As shown in figure 9.3 the role of tertiary education is critical for producing a pool of engineers and technologists to convert innovative ideas sparked by the internal
growth dynamic of entrepreneurial firms into viable products on the scale
and in the form required for regional growth.
An inelastic skill base will translate into skillshortages and wage pressures
thereby choking growth and eroding regional competitiveness. Industrial
development depends upon this process of labour
power rather than one of insecurity. That is most likely to be the case in fields
such as multimedia and software programming where companies have difficulty in recruiting specialist staff, and confront high rates of turnover and
dynamic, often international, labour markets (Skills Observatory, 2000, p. 5).
The labour market effects of this kind of skills’ shortage are compounded
by a strong freelance ethos in growth sectors where working outside a company’s structure is seen as preferable – in both a financial and a cultural sense
– to working inside one (see