Public Higher Education, the Knowledge Economy and Regional Development in Costa Rica

Public Higher Education, the Knowledge Economy and Regional Development in Costa Rica By Rosibel Víquez-Abarca Doctor of Philosophy School of Geography, Politics and Sociology, Faculty of Humanities and Social Sciences August, 2012 Abstract This thesis concerns, firstly, the role of public higher education institutions, in particular the Distance Learning University (UNED), in the new economy model being encouraged in Costa Rica and, secondly, the role that public higher education could play in an alternative model of development which is more socially and regionally balanced. Until the 1980s, Costa Rica possessed a well-governed and stable political-economy but imbalanced at the same time since it promoted uneven development between the central region on the one hand and the peripheral regions on the other. Since the mid-1990s, the country has developed a strategy to move from an export-led growth economy to one based on foreign direct investment. In such a scenario, the Knowledge-Based Economy model was introduced as an option to speed up the pace of development. Nonetheless, the new model has faced several changes to the original plan. It moved from an open economy attracting high technology investment to practically any kind of foreign direct investment (FDI). The resulting model has implied negative consequences in terms of sustainability and social development. One consequence is a minimum impact on the skill level of the work force. Another consequence has been a low level of investment in infrastructure (particularly in peripheral areas). Additionally some of these activities favoured by the new model imply damage to the natural environment. The present research shows that the new model of the Costa Rican economy still encourages uneven development, generating different trajectories of growth not only among the regions but also inside them. In terms of the public universities, the institutional transformation that is taking place globally prompts these institutions to solve the problems of the labour market through supplying the necessary trained people. ii Three key questions were addressed in this thesis, in order to present a perspective on the Costa Rican process: (1) Has Costa Rica become a more Knowledge-Based Economy in the last 30 years?; (2) What role have public universities played in this and what role has UNED specifically played?; and (3) How could UNED contribute in order to accomplish a more regionally-balanced Knowledge-Based Economy model? Drawing on quantitative data and interviews with actors from different sectors, the research demonstrates that Costa Rica has been endorsing an open economy, where the attraction of FDI is related not only to high technology industry, as the Knowledge-Based Economy model assumes, but to change in all of the traditional economic sectors of the country. Paradoxically, the companies of the new economy are looking for those qualified to technician-level, rather than to those with higher-level qualifications. In terms of the institutional transformation, public universities in general and UNED in particular are immersed in stress promoted by at least four contradictory internal and external discourses. One is the entrepreneurial university discourse which is a properly discourse of the KBE, close to utilitarian approaches. Second is the university as entrepreneur’s promoters. The third is the university as a central government partner to attract FDI. The fourth is the traditional discourse of state-funded educational institutions’ mandate for education to build collective responsibility and social justice. Finally, in terms of an alternative role, the thesis presents an option for the public universities to challenge the territorial inequalities implicit within current strategies by focusing more on the peripheral territories. iii Dedication To Adriana and Beatriz, my never ending inspiration. iv Acknowledgements I would like to acknowledge first to my supervisors Andy Gillespie for his patience and guidance, Andy Pike for his inspiration and Esteban Castro for his keenness; their opportune guidance put me on the road. Alison Stenning and Paul Benneworth as initial supporters and Janet Towsend for invaluable counsels. To La Hora Latina members, particularly Monica Moreno, Rosaleen Howard and Patricia Oliart for their guidance. Similarly to Daniele Paragano and GianpieroTorrisi, for their useful ideas on the analysis. To Penny Kelly and George Kania for their timely succour, Chris Yeomans for his help with the document and Pauline for her friendship. Everybody in the PhD room because they were always ready to lend a hand. My everlasting gratitude to Jane and family, Gisela and Cesar, Raksha, Ann and Keith, Anthonia, Angela, Valerie, Brenda, David and Erin and Jaime and family, your guidance and companionship enriched this experience. In the UNED many thanks to don Rodrigo Arias, Fernando Bolaños and Nuria Leitón, and all my workmates in the CIEI and Ana Beatriz Murillo for her help. Especially recognitions to Luis Paulino Vargas for his excellent distance learning supervisions and loyalty, to my friend and colleague Mauricio Leandro and his family for their invaluable contributions. I would also like to express my thankfulness to my family and friends, principally my endless gratitude to my dad. Special thanks to Carlos for his support during the process. Lastly, to my daughters Adriana and Beatriz, this has been possible thanks to you girls. I want to acknowledge expressly the Distance Learning University (UNED of Costa Rica) as the main sponsor of this research through the Institutional Scholarships Council. To Newcastle University for contributing with a scholarship as well. Overall, I want to express my gratitude to all persons who contributed with interviews, information, data, documents and their inestimable knowledge to complete this thesis. The content of the thesis is only my responsibility. v Table of Contents Chapter 1. Blessings and Calamities of the Knowledge-based Economy ......................................................1 1.1 Rationale of this topic ................................................................................................................................1 1.2 Main theoretical concepts ..........................................................................................................................6 1.3 Brief presentation of research questions and methodology .......................................................................8 1.4 The structure of this thesis .........................................................................................................................9 Chapter 2: Universities in the Knowledge-based Economy: the challenge of uneven regional development in a developing countries context...................................................................................................................13 2.1 Introduction..............................................................................................................................................13 2.2 The Knowledge-based Economy: a definition.........................................................................................14 2.2.1 The role of the KBE in international economic policies .............................................................17 2.3 Regions and territorial innovation models ..............................................................................................21 2.3.1 Region, regional development and regionalism ..........................................................................21 2.3.2 Territorial innovation models in the KBE: the learning region...................................................25 2.3.3 Critical review of territorial innovation models ..........................................................................29 2.4 Universities in the KBE............................................................................................................................30 2.4.1 Generative role: the third academic revolution ...........................................................................34 2.4.2 Developmental role: engagement in regional associative governance........................................37 2.4.3 Universities in the KBE: diverse roles ........................................................................................40 2.5 The Knowledge-based Economy in developing countries........................................................................45 2.5.1 Development and regional development definitions...................................................................46 2.5.2 The KBE in developing countries: resources concentration .......................................................50 2.5.3 Social region model.....................................................................................................................57 2.5.4 The role of public universities in the KBE..................................................................................66 2.5.5 Universities and regional development policies..........................................................................70 2.6 Summary...................................................................................................................................................71 Chapter 3: Methodology ................................................................................................................................76 3.1 Introduction..............................................................................................................................................76

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