0.6 Discussion

We have presented the methodology and results of this study. The following section presents the discussion of the findings in the context of the five components: people, science, culture, economics, and governance.

People

Human capital is fundamental to the development and sustainability of a knowledge economy. Indeed some commentators claim that up to 70% of all global assets can be described as ‘human capital’ (Milken 2010). For a generation the US, Europe and Japan have largely dominated the global knowledge economy. However the world is changing. China for example has a deliberate strategy to repatriate the students who have studied around the world over the last 20 years. They are offering incentives that include generous salaries and significant investment in research facilities in order to create an infrastructure capable of supporting a sustainable knowledge economy. China is targeting sectors for strategic investment including nanotechnology, bioscience, low-carbon technology and digital media. China is not the only economy emerging from the 2008-2010 financial crises on the front foot, India, Vietnam, Mexico, Russia, Brazil and several others suddenly have the financial capability to invest in human capital in infrastructure to compete in the near and medium term. All of this represents a serious threat to the old order. Much of the innovation capacity of the US has been driven by brilliant young talent immigrating to the US from around the world. This source of talent and human capital may dry up and the US will have to depend on home grown human capital. In Europe the economies have suffered badly in the financial crisis. Significant cuts in government spending are predicted for the years 2012 to 2017. The HE sector in the UK is expecting cuts of up to 25% in University budgets. These cuts could not come at a worse time when one recognises the fierce competition for talent and markets that will come for the range of new economies and regions. For a small principality like Wales, on the periphery of Europe there is little margin for error. The stake holders will have to work together to develop and deliver a strategy for this new global context.

At the recent Global Conference entitled “Shaping the Future” (Los Angeles 2010) Michael Milken quoted the statistics shown in [link] . The comparable statistics for European region are not yet published. However these statistics show that the US at least is not recognising or gearing up for the challenge. If these figures are correct then an average family in the Far East is investing up to seven times more in the education of new generation than the comparable family in the US. Like any statistics there are arguments regarding the detail, however these show a picture that few in the US or in Europe would challenge. Education is no longer prioritised by our society in the way it was.