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About skill ecosystems

The Idea

The term 'skill ecosystem' was coined by David Finegold to look at knowledge and skill creation in the cluster of computer and biomedical firms in Silicon Valley, California. Finegold argued that the following features explained the emergence and persistence of this high-skill ecosystem:

• The post-war growth in US defence spending created a catalyst
• Education offered in local universities, which attracted top students from around the world, was the fuel
• Transport and telecommunications infrastructure, the regulatory regime and attractive lifestyle formed a supportive host environment
• Training alliances and other forms of cooperation were fostered by strong intermediary bodies, creating a high degree of interdependence.

The ecosystem metaphor is used in business literature to emphasise the interdependencies between organisations, individuals and institutions that generate expansion, innovation or export growth.

In Australia

In Australia, we are using the concept to explore the economic and social factors shaping low and intermediate skill clusters, as well as high skill ones.

The NSW Board of Vocational Education and Training started off this thinking at the end of the 1990s by funding research described in Beyond flexibility: skills and work in the future.The report's authors argued that:

Skill formation is not, and can never be, a stand alone issue.

The nature of a particular skill ecosystem is shaped by many things.

• business strategy - key products and services, target markets
• business environment - competitive pressures, inter-firm relationships, access to finance
• government support and the regulatory framework
• capital investment and the technology in use
• employment relations and the operation of labour markets
• work organisation and job design
• the capacity of education and training and its ability to meet industry's and workers' needs.

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