Philipps-Universität Marburg

Marburg - Germany

Entrepreneurship, Human Capital and Innovation

in the Economic Development

of Jordan
 Overview Presentation

1. Theoretical foundations – recommended procedures

2. Empirical study – Conceptional plan Jordan
3. The concept:
„Constructing a new Generation of Entrepreneurs”
4. Summary
 Theoretical foundations

Endogenous growth theory (Mainstream)

AND
Theory of economic development

Central idea:

Long-term and endogenous (internal) explanation for economic growth

and economic development through

human capital, entrepreneurship and innovation

Promotion of human capital, entrepreneurship and innovation in
Jordan
Empirical areas of investigation

• Women
• Education
• Participation

• Educational system
•Pre-schools
• Schools (Elementary and secondary)
• Vocational schools
• Universities

• Innovative System
• Research
• Innovation Center
Promotion of human capital, entrepreneurship and innovation in Jordan

Empirical results

Educational system

Schools: Compulsary education – high enrollment ratio

Qualitative and quantitative deficits
Impact of growth of population (HPC - Amman)

Programms: Strong promotional/support programms and pronounced political will

Promotion of human capital, entrepreneurship and innovation in Jordan

Empirical results

Jordan

• high potential for development

• high investments in human capital (25% of GDP)
• role model in area of education - sought experiences
 Constructing a new Generation of Entrepreneurs
Concept and Goal

Concept:
Building on Jordan‘s high potential for development and on the theory-based
recommendations for action

Goal:
Strengthening the Jordanian system of innovation and thus the economic growth and
development in Jordan through effectively und efficiently fostering human capital
and entrepreneurship
 Constructing a new Generation of Entrepreneurs
Concept areas and steps

Areas:
• Women (childhood home)
• Pre-schools (school)
• Elementary schools (school)
• Vocational schools
• Secondary schools (school)
• Universities

Involving the private sector participation

Value creation chain:

Building human capital and constructing entrepreneurship step by step
 Constructing a new Generation of Entrepreneurs
Autonomous School

Central Idea:
• self-financing and permanent quantitative and qualitative improvement
• financial autonomy within the public framework
• part of annual education budget to be transferred to schools, based on number of
students ca. 14 Mio. out 500 Mio. = 2.8%
• Re-structuring eductatoin budget – new combination of existing factors
• decreasing expenditures for quantity, increasing expenditures related to quality
•Advancing capabilities, will and permission
• Mid to long term results (new generation)
 Constructing a new Generation of Entrepreneurs
Autonomous school

Main goals and implications:

• financial autonomy (Motivation and Qualification)

• systematic satisfaction of individual requirements (Motivation and Qualification)
• New area of action – Entrepreneurship (capability)
Learning new entrepreneurial skills and building human capital (capability, qualification)
Reducing negative attitudes, producing better orientation
 Constructing a new Generation of Entrepreneurs
Autonomous school as a necessary condition

Main goals and implications:

• Internal and external competition (capability and will)

Systematic teacher training
Learning new teaching methods
Advancing school performance (prizes for students, teachers and directors)
• direct student participation (capability and will)
Internal school committee

• Government supreme committee for overall control (control system)

 Constructing a new Generation of Entrepreneurs
Die autonome Schule
als notwendinge Bedingung

Aim:

• Necessary qualification (resp. potential) exist (capability)

• Required motivation exists (will)
• Government approval for 5 year prototype
Government Motivation and Will exist (permission)

Aim: Connecting these necessary preconditions

 Summary

•Human capital, entrepreneurship and innovation are necessary preconditions

for growth and development
•Jordan has a high potential for strengthening human capital and
entrepreneurship (capability)
• Jordan has a pronounced political will (permission)
• Educational system has a role model character (capability)
• School as factories of human capital and entrepreneurship (capability)
•Strengthening school through re-structuring towards autonomy (permission)
• Unfolding of personality and potential (will)
• advancing moviation and perforamnce (will)

Learning by doing within the public framework

Thank you
for your
attention