Driven by social, economic and technological changes, labour markets are becoming more flexible in the European Union and EU Neighbourhood countries. This translates into growth in novel employment relationships, which differ from “traditional work” in terms of working conditions, content, and regulatory and legal ramifications.
This study provides an overview of impact investment and skills creation in innovation, covering the main features of impact investment, the historical development of the phenomenon, and how it can be linked to the skills creation process. The study examines the emergence of impact investing and explains its principles and defining features. It maps some existing initiatives at European and local levels, presents examples of good and innovative practices in investments with social impact, and explores what practices and instruments for impact investment in innovation skills have been and/or could be applied in the Western Balkans. While the discussion and awareness about impact investment in the region appear to be highly limited, there is a need for developing new (financial and capacity-building) instruments to promote and spur impact investment so as to ensure sustainability in the skills creation and retention process, ultimately resulting in reducing the brain drain and supporting the creation of high value-added jobs
The STEP (Skills Toward Employment and Productivity) Measurement program is the first ever initiative to generate internationally comparable data on skills available in developing countries. The program implements standardized surveys to gather information on the supply and distribution of skills and the demand for skills in labor market of low-income countries.
The uniquely designed modules in the Employer Survey aim to assess the structure of the labor force; the skills (cognitive skills, behavior and personality traits, and job-relevant skills) currently being used; the skills that employers look for when hiring new workers; the propensity of firms to provide training (including satisfaction with education, training, and levels of specific skills) and the link between skills and compensation and promotion. The survey also captures background characteristics (size, legal form, industry, full time vs. non-standard employment and occupational breakdown), performance (revenues, wages and other costs, profits and scope of market), key labor market challenges and their ranking relative to other challenges, and job skill requirements of the firms being interviewed.