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Journal of Policy Modeling 37 (2015) 65–91

Available online at www.sciencedirect.com

ScienceDirect

Why some countries are slow in acquiring new
technologies? A model of trade-led diffusion and

absorption�

Gouranga Gopal Das ∗
Department of Economics, Hanyang University, Erica Campus, Kyunggi-Do 426-791, South Korea

Received 12 July 2014; received in revised form 4 November 2014; accepted 10 January 2015
Available online 21 January 2015

Abstract

Drawing on the stylized facts and evidences, in a computable general equilibrium (CGE) model, this
paper examines the impact on TFP of North–South, North–North trade-related triangular R&D spillovers.
By constructing different technology appropriation parameters based on embodied and disembodied R&D,
absorption and learning effects, it shows: (i) North–South R&D flows have a positive impact on TFP; (ii)
human capital-induced skill facilitates North–South R&D flows; (iii) socio-institutional and technology
adoption parameters do play roles for knowledge flows, its capture, and transmission. Such technology
diffusion and assimilation counters the adverse impact of North–South geographical distance on productivity
dynamics.
© 2015 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.

JEL classification: J24; O33; O43; F43; D58

Keywords: Technology diffusion; Trade; Syndromes; Capture; R&D

“In all the cases of sustained, high growth, the [developing] economies have rapidly
absorbed knowhow, technology, and, more generally, knowledge from the rest of the world.

� With the usual disclaimer, I benefited from helpful discussions with Ron Davies, University College, Dublin; Bruce
Blonigen, University of Oregon. Comments from conference participants at the City University of Hong Kong and Izmir
University, Turkey are extremely useful.

∗ Tel.: +82 31 400 5628; fax: +82 31 400 5591.
E-mail address: dasgouranga@gmail.com

http://dx.doi.org/10.1016/j.jpolmod.2015.01.001
0161-8938/© 2015 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.

dx.doi.org/10.1016/j.jpolmod.2015.01.001

http://crossmark.crossref.org/dialog/?doi=10.1016/j.jpolmod.2015.01.001&domain=pdf

http://www.sciencedirect.com/science/journal/01618938

mailto:dasgouranga@gmail.com

dx.doi.org/10.1016/j.jpolmod.2015.01.001

66 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

These economies did not have to originate much of this knowledge, but they did have to
assimilate it at a tremendous pace. That we know. What we do not know—at least not as
well as we would like—is precisely how they did it, and how policy makers can hurry the
process along. This is an obvious priority for research. [Economies] can learn faster than
they can invent. Knowledge acquired from the global economy is thus the fundamental basis
of economic catch-up and sustained growth.”—Michael Spence, Spence Commission on
Growth and Development, World Bank (2008), p. 41.

1. Introduction and motivation

Drawing on the idiosyncratic regional growth experiences and historical trajectories of devel-
opment episodes, Spence (2011), and World Bank (2008) highlighted, inter alia, the importance
of pursuing context- and case-specific policies—as emphasized in the quote that opened this
article—related to trade and industry development, education, knowledge creation, technological
improvement, inequality, etc.; in particular, it emphasized the preponderant role of engagement in
the global economy as well as extending the knowledge frontier via investment in human capital,
institutional quality, R&D, and the educative effect of trade to achieve Millennium Development
Goals. In particular, Goals 2, 8A and 8F emphasize the roles of not only global partnership for
technological access to reduce disparities in ICT diffusion and usage, but also on the importance
of good governance and institutions (United Nations, October 2010). In a constantly evolving
world of ideas, science, technology, and innovation policy aims at dispensing with the growth
inertia by sparking mankind’s innate ‘lack of patience with status quo, or sitzfleisch’ (Griliches,
2000). Government policy plays role for orchestration of knowledge, entrepreneurial know-how,
cross-fertilization of ideas to enrich the knowledge-capital, and institutional innovation. The
important visionary role that the state could play as enabling transformer of an economy through
innovation-oriented policy trajectory is widely evidenced in the literature. Mazzucato (2013) has
emphasized the role played by state—like Prometheus, not Leviathan—in undertaking invest-
ments in innovation via policy instruments to create an innovation ecosystems, where symbiotic
coexistence of public–private investments, and other supportive policies like education policy,
industrial policy work concurrently. Szirmai, Gebreeyesus, Guadagno, and Verspagen (2013) has
discussed in the context of Africa that wide range of policies related to trade, sectoral innovation,
population, employment, and labor market are important for productive employment. Bengoa and
Sanchez-Robles (2005) and Bluedorn, Duttagupta, Guajardo, and Mwase (2014) have discussed
the importance of favorable economic policies conducive for structural reforms, institutions, and
domestic factors causing take-off and sustained growth of the less-developed countries’ (LDCs).
In particular, proper region-specific investment climate via policy instruments influencing infra-
structure, governance features, scarcity of tertiary human capital, weak institutional capacity, and
other pertinent socio-institutional factors in the LDCs matter.1

Why, despite the State-Prometheus having a visionary role to undertake strategic policy instru-
ments, the things are not taking shape? In this paper, we ask this policy-guided research question
grounded upon theoretical rationale. We enunciate the role of host of factors underlying seizure
of the potential knowledge-diffusion. Lack of education, skill mismatch, inappropriate structural
change, educational bottlenecks, inadequate innovation, and lack of attention to SMEs with growth

1 World Bank’s ‘Doing Business Project’, benchmarking different indicators for regulatory regime for 130 countries,
offered Investment Climate Surveys conducted at the firm level for 26,000 firms in 53 developing nations.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 67

potentials, all balk the growth spurt for the LDCs. Interestingly, Jones and Romer (2010) offered
stylized facts based on the interactions between increased market integration (via trade) and four
state variables, namely: ideas, human capital, population and institutions. LDCs’ growth and
development in the long-term depends on their capabilities, for effectively identifying, procuring,
assimilating it (absorptive capacity, AC) and applying the state-of-the-art (Cohen & Levinthal,
1989; Das, 2002, 2010), and structural congruence, socio-institutional features like governance,
corruption, domestic circumstances. World Bank (2010) has stressed the importance of innovation
lying in the core of economic progress of the developing nations and Southern engines. Recently,
Asian Development Bank Report (2014a, 2014b) has constructed the Creative Productivity Index
(CPI), by ranking developing countries like Indonesia, China, India, Bangladesh, Cambodia,
according to creative inputs and outputs such as skill, education, R&D, infrastructure, etc., and
urged for ‘strong, coordinated government policies’ for tertiary education, skill-enhancement, ICT
investment, innovation and favorable institution so as to develop a knowledge-based economy.

In LDCs, policymakers have focused on these factors in their policy agenda for inclusive
growth and development, and policy instruments for accumulation of human and physical capital,
innovation, and institution-building are prioritized. In the current paper’s taxonomy, lack of these
makes deleterious syndromes to occur and inhibit the growth process. Policy shocks inducing
those factors could be a source of endogenous growth, and this paper considers role of tech-
nology shocks and trade in intermediates (Salvatore, 2007). This paper elicits a mechanism of
North–North–South triangular knowledge diffusion for reducing the technological gap via syn-
ergistic spillover capture, and how all these country-specific factors create a conducive policy
climate for nourishing and nurturing the innovation potential. For unraveling the interlinkages,
we employ multi-sectoral, multi-regional computable general equilibrium (CGE) Global Trade
Analysis Project’s (GTAP) model tailored to formalize a stylized mechanism. This paper adds
value to the literature by: (i) offering an analysis of interplay between trade, technology dissemi-
nation and highlighting the importance of enabling factors for such absorption factors affecting its
assimilation; (ii) making a contribution to the mechanism underlying adoption of trade-mediated
technology diffusion; and (iii) thus, expounding theoretical underpinning for growth-oriented
public policy. As the paper unfolds, Sections 2 and 3 outlines the literature, and considers the
data, and Section 4 offers the model. Simulation design and principal findings are discussed in
Section 5. Section 6 summarizes with policy discussion.

2. North–south trade-led technology flows and adoption factors: a bird’s eye (re-) view

The important issues of creation of new technology, its diffusion and actual adoption have been
discussed on both theoretical and empirical planes. Conscious efforts by policy-makers around
the developing world for embracing globalization, and investment in human capital, innovation,
and macroeconomic policy has led to the emergence of dynamic emerging economies like Brazil,
China, India, Korea, and others, making a New Economic Order conspicuous by 2020. The recon-
figuration of the world economy via such transformation of the dynamic economies (contrary to
the next tier laggards)—as discussed by Duval and de la Maisonneuve (2010), Jorgenson and Vu
(2011, 2013), OECD (2010a, 2010b, 2014), Klein and Salvatore (2013)—are attributed gener-
ally to: global integration, ICT and non-ICT capital, total factor productivity (TFP), technology
transfer, human and non-human capital accumulation, and institutional qualities. However, we
observe differences in technology assimilation across countries.

Growth-spillover benefits the trade-partners so long as different countries engage in trade.
Spence (2011, p. 5) has talked highly about this aspect of dissemination and its benefits to the

68 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

developing world, by mentioning ‘two parallel revolutions’: industrial revolution in advanced
world and inclusive revolution, spreading to the south for its quantum leap. For current evidences
of such trade-mediated technology diffusion in the developing world, plethora of empirical sup-
ports are available—see, Global Economic Prospects (World Bank, 2008), Hoekman and Javorcik
(2006), World Bank (1998, 2010). Despite debates about relative efficacies of different channels,
it is well-established in the literature that trade (especially, imports and to some extent, exports)
is significant channel of technology diffusion (Eaton & Kortum, 1996; Keller, 2004).2 Consid-
ering a panel of 101 developing and developed countries, Arora and Vamvakidis (2004, 2005)
have explored the importance of growth spillover via trade. Additionally, with intermediate trade
representing 56% of trade in goods and 73% of trade in services in OECD and emerging engines
being well-integrated into production networks, this diffusion improves productive efficiency of
the recipients via intermediate goods and services (OECD, 2010b). The interest in exploring the
North–South trade-mediated ‘indirect’ spillover has drawn attention of researchers, which culmi-
nated into papers analyzing the relative merits of indirect technology flows via trade-embodiment,
FDI and ‘direct’ disembodied flows via technological proximity such as internet technology,
telephone, or effective teledensity (Lee, 2005; Tang & Koveos, 2008). Schiff and Wang (2006)
considered direct and indirect North–South R&D spillovers between 15 OECD and 24 develop-
ing nations across 16 manufacturing industries. We consider domestic R&D as well as foreign
sourced R&D in DCs as well as in LDCs, along with heterogeneities in assimilation rates.

Additionally, even with global integration localized nature of technology makes domestic
investments in enabling factors such as indigenous innovative capabilities, absorptive capacity,
sound macroeconomic policies, human capital and creating better institutions are necessary for
effective dissemination (Caselli & Coleman, 2006; Cosar, 2011; Keller, 2004; Lall, 2001; López-
Puyeo & Mancebón, 2010; Lucas, 2009a, 2009b; Onyeiwu, 2011; Schiff & Wang, 2006, to name
a few). Quantifying absorptive capacity (AC) by human capital, in the context of Sub-Saharan
African (SSA) manufacturing firms Foster-McGregor, Isaksson, and Kaulich (2014) has shown
that AC is instrumental for importer firms to have positive productivity spillover. Clark, Highfille,
de Oliveira, and Rehman (2011) have surveyed FDI-related technological spillovers and growth
impact; however, they emphasized the importance of trade channel and the role of AC, mentioning
the lacunae in the literature in incorporating these aspects operationally. Onyeiuw (March 2011)
has shown that for 31 Sub-Saharan African countries apart from political stability and good
governance, absorptive capability to utilize new technology matter much for development. Role
of adoption for using a specific set of ICT skills for teacher trainers is discussed in the context
of Cambodia by Richardson (2011). World Bank (p. 2, 2010) reports that: “Innovation depends
significantly on overall conditions in the economy, governance, education, and infrastructure. Such
framework conditions are particularly problematic in developing countries, but experience shows
not only those proactive innovation policies are possible and effective but also that they help create
an environment for broader reforms. “Spence (2011, p. 109) has mentioned about ‘key internal
ingredients’ for sustained high-growth and the recipes involve factors such as infrastructure, good
institutions, governance, education, and facilitating structural change. The negative impacts of
corruption, instability, ‘internal snags’ like ‘bad’ rule of law, and bad governance are highlighted
(Collier, 2009). In what follows, we offer some pertinent stylized data.

2 Keller (2004: p. 769) has mentioned that: “[A] number of surveys have recently concluded that there is no evidence
for substantial FDI spillover.” Amiti and Konings (2007) studied the positive effects on productivity of a tariff-cut in trade
in intermediates for Indonesian manufacturing.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 69

3. Database and stylized facts: a macro lens view

3.1. Sectoral and regional dimensions

Quoting Lucas (2009a, p. 1): “a study of economic growth in the world as a whole must
be a study of the diffusion of the industrial revolution across economies, a study of the cross-
country flows of production-related knowledge from the successful economies to the unsuccessful
ones.” Literatures abound with information and communication technology’s (ICT) role as a
general-purpose-technology (GPT) for facilitating growth via impacts on nanotechnology and
biotechnology (OECD, 2006a). Following Qiang (2007) and Grace, Kenny, and Qiang (2004),
‘informatization’ is a complex process for achieving ‘critical development goals’ via ‘ICT-driven
economic and social transformation’, and investment in social and economic infrastructure.

In the technology diffusion literature, the dynamism and persistence of technological compet-
itiveness across industrial clusters are quite common. In this paper, we divide the entire global
economy into composite regions—broadly into two groups, the North (N) and the South (S),
according to their status of development. Based on variation of diffusion and adoption of new
technologies across geographical regions, there has been considerable evidence on differences
in technology transfer between the North and the South. OECD nations account for largest of
total world R&D and within them, 7 largest (G7) account for major share (Coe, Helpman, &
Hoffmaister, 2008). UNESCO (2009) has shown that the number of researchers in developing
countries has increased by 45% as compared to 9% in the DCs; however, in America, Europe and
Oceania researchers per million inhabitants were still far higher than the world average. Consid-
ering R&D intensity (i.e., R&D expenditure as a percentage of the GDP), the Americas accounted
for 37.6% of World R&D expenditure (mainly attributed to R&D spending in USA and Canada)
followed by Europe and Asia. Rapid globalization of science and technological invention has been
accompanied not only by concentration of such activities in only OECD regions, but non-OECD
economies also have exhibited fastest growth and sizable contribution to global R&D.3 How-
ever, Asia’s increasing R&D intensity is largely dominated by China’s contribution—registering
increase from 1.1% in 2002 to 1.5% in 2007, thus, accounting for 39% of R&D expenditure and
53% of researchers in the LDCs; but in case of India, it is about 0.8%. In Sub-Saharan Africa
(SSA), the intensity is much less, about 0.3%, whereas South Africa invested almost 1% of GDP
for R&D. On the world as a whole, R&D expenditure has increased (1.7% of world GDP). Thus,
we see that G7 countries have the significant share of R&D and still developing countries need to
make significant strides in their innovative skills. G7 countries’ ‘technological readiness’ index
score is far higher than those in Asia and Africa (Global Competitiveness Report 2009–2010).

For our model, we categorize the whole range of 57 product categories in the GTAP database
into 7 broad R&D-intensive technology clusters—namely, ICT, Transport Equipment, Mate-
rials, Consumption goods, Fabrication and Services (Das, 2002). We follow OECD (2003a,
2005) classification of manufacturing activities according to technological intensity. Based on
Hatzichronoglou (1997), using ISIC Rev.3 OECD (2003a, 2005) methodology considers both
‘technology-producer’ and ‘technology-user’ aspects based on three technological intensity indi-
cators, namely, R&D expenditures as proportion to value-added, production and R&D plus
technology embodied in capital goods and intermediates as proportion of production, to determine

3 According to OECD (2006a), compared to 7% in 1995 China, Israel, Russia, and South Africa contribute combined
17% of R&D expenditure of OECD nations in 2004.

70 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

Table 1
Technology clusters and industries.

Technology clusters Industries

Information and Communications
Technology

Computers and related equipment, Telecommunication and
Semiconductor Equipment, Electrical Machinery, Audio and Video
Equipment, Instruments

Transport Technology Shipbuilding, Aircraft, Motor Vehicles, Other Transportation
Consumer goods Technology Food, Beverages and Tobacco, Textiles, Apparel and Footwear
Materials Technology Agriculture, Construction, Mining, Paper and Printing, Wood
Fabrication Technology Fabricated Metal Products, Other non-electrical machinery, Others

Source: OECD (1997), Science, Technology and Industry – Scoreboard of Indicators. pp. 40–41. Taken from Das (2008).

‘technological criteria’. By adopting a narrow definition (ISIC Rev 3.) and based on idea of embod-
ied technology flows estimated from input-output tables, market service activities like ‘Finance
and Insurance (Divn 65–67)’, ‘Business activities (71–74)’, ‘Post and telecommunications (Divn
64)’ are considered knowledge-intensive. Table 1 presents the taxonomy of grouping industries
into technology clusters (OECD, 2004).4 IT cluster belongs to the hi-tech cluster. Consumer goods
and Fabrication are in the medium-low and low technology categories, respectively. We consider
technology clusters—‘industries sharing a number of common characteristics’ (OECD, 2000).

Table 2 presents the regional concordance and geographical matching of regions/nations.
OECD Outlook (2004) identifies five broad categories of ICT goods. ICT services, based on
industry-based definition and ISIC, Rev 3., are grouped together in the ‘services’ cluster com-
prising mainly telecommunications, IT-enabled and related services facilitate trade.

3.2. Stylized facts

The GTAP database (Version 7) divides the world economy into 113 regions, 57 sectors and 2
labor classes. Based on SITC, Revision 3, and Commodity Product Classification and Harmonised
System (HS, Rev 2.), WPIIS, OECD (2003a) has developed a classification of ICT-goods sep-
arately from ICT-services.5 Tables 3 and 4 present annual growth rates of global and regional
trade in the clusters over 1965–2004. As per OECD (2003a), high-technology industries like
electronic equipment and computers represent about 25% of total OECD trade and registered
highest growth rates in manufacturing trade. Together with Medium high-technology (transporta-
tion cluster, chemicals, machinery and equipment), the share is 65% of manufactures trade.6 This
is attributed to rise in investment in knowledge (i.e., R&D expenditures, software investment,
human resources via higher education) especially in ICT sector accounting for 5.2% of GDP in
the OECD economies in 2002. However, this has also been accompanied by closer integration
of OECD and non-OECD countries leading to increase in internationalization of R&D activities.
A cursory look confirms that although the some regions have higher chances of enrichment via
trade, the lower bilateral technology achievement indexes, relative to G7 composite region, could
reduce the chance; on the contrary, the emerging southern engines of growth with higher bilat-
eral technology appropriation factor and inventive capabilities have better scope of enrichment in
contrast with the regions with lower R&D (for example, SSA, MENA, other South Asia, South

4 OECD (1997), Science, Technology and Industry Scoreboard of Indicators, pp. 40–41.
5 Working Party on Indicators for the Information Society (WPIIS, OECD, 2003a).
6 OECD (2003b), p. 147.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 71

Table 2
Sectoral and regional aggregations adopted for the simulation.

Regions and elements Sectors and descriptions

1 G7 G7-North Developed 1 ConsumerGood Sugar cane, sugar beet, Plant-based
fibers, Cattle, sheep, goats, horses

2 OtherEU EU minus G7 4 members Animal products nec, Raw milk,
Wool, silk-worm cocoons

3 Brazil Brazil Fishing, Meat: cattle, sheep, goats,
horse, Meat products nec

4 Russia Russian Federation Dairy products, Processed rice,
Sugar, Food products nec

5 India India. Beverages and tobacco products,
Textiles, Wearing apparel

6 China China. Leather products, Wood products,
Paper products, publishing

7 Hkg Twn HongKong Taiwan 2 AgBioTech Paddy rice, Wheat, Cereal grains nec,
Vegetables, fruit, nuts

8 SouthKorea South Korea Oil seeds, Crops nec, Forestry,
Vegetable oils and fats

9 SouthEAsia Developing Asia 3 ElectronicIT Electronic equipment, Machinery
and equipment nec

10 RSA Rest of South Asia Manufactures nec
11 ECA Europe and Central Asia 4 Nano Matrls Coal, Oil, Gas, Minerals nec,

Petroleum, coal products
12 SouthAfrica South Africa Chemical, rubber, plastic prods
13 LAC LatinAmerica&Caribbean 5 TransportTec Motor vehicles and parts, Transport

equipment nec
14 Mexico Mexico 6 Metal MedTec Mineral products nec, Ferrous metals
15 OthrOECD OECD minus G7 minus EU Metals nec, Metal products
16 MENA MiddleEastNorthAfrica 7 Svces Electricity, Gas manufacture,

distribution
17 SSA Sub-Saharan Africa Water, Construction, Trade,

Transport nec
18 ROW All other regions Sea transport, Air transport,

Communication
Financial services nec, Insurance,
Business services nec
Recreation and other services,
PubAdmin/Defence/Health/Educat
Dwellings

Source: This is based on 18 × 7 Aggmap.Txt file based on author’s aggregation of augmented GTAP Version 7 database.

Table 3
Average annual growth rates for global trade in technology clusters, 1965–2004.

Technology clusters Average annual growth rates (%)

Information and communication technology 12
Consumer goods 9.1
Biotechnology Cluster 6.1
Nanotechnology Cluster 10.4
Transport Equipment 11.2
Fabrication 9.1

Source: Calculated from the time-series trade data for the aggregated GTAP Database.

72 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

Table 4
Average annual growth rates for global trade in technology clusters, 1992–2006.

Technology clusters Average annual growth (%) in trade from

Source region G7 Other EU Other OECD

ICT 5.3 6.9 4.9
Consumer goods 3.8 3.8 4.0
Biotechnology Cluster 2.4 4.1 4.9
Nanotechnology Cluster 8.3 10.2 8.9
Transport Equipment 6.4 6.8 7.7
Fabrication 5.8 5.9 7.2

Source: Author’s calculations as above.

East Asia).7 Why? That is explained in the model in Section 4. Global integration has led to
technology flows—indirectly via embodied traded intermediate inputs and/or, directly via disem-
bodied through IT-enabled services. Thus, effectiveness of trans-border technology diffusion are
contingent on several factors that, amongst a tall order, we identify as: recipient’s (any region ‘r’
specific) own domestic R&D (R&Dd), foreign-trade induced R&D flows via imported intermedi-
ates (R&Df) connectivity with advanced world via superior network (disembodied, R&Ddisemb),
human development (HDI, a broad multidimensional concept incorporating literacy, health, edu-
cation), human-capital induced skill-intensity proxying learning capacity (AC), latest technology
(TA), socio-institutional parameter (SIP) encompassing Governance (GP), transparency (T), and
competitiveness indicator (C). Apart from that, the role of geographical proximity and contiguity
in facilitating trade flows between regions is important.8 Krugman (1991, 1995) has emphasized
the role of geography and locational choices in formation of trade blocs (termed ‘natural’ blocs).
Frankel (1997), Diao, Rattso, and Stokke (2005) have focused on the role of adjacency in promot-
ing trade between neighboring countries. In Asia and Latin America’s context, the importance of
physical (hard) and institutional (soft) infrastructure (institutional bottlenecks like legal, admin-
istrative, regulatory, rent-seeking behavior, human capital and customs clearance) along with
complementary structural reforms and investments in productive capacity for trading linkages
are emphasized. As geographical clustering benefits easy transmission of technology—either via
trade-embodiment, disembodied channel and/or, cultural proximity—between the trade partners,
we also consider the role of bilateral distance (Dns) between North (‘n’, G7 here) and other client
regions (‘s’). In a single framework we consider the roles of these parameters and relative perfor-
mance of DCs vis-à-vis LDCs in harnessing technology vehicled via domestic R&D as well as
foreign sourced R&D.

4. Technology spillover and effective assimilation

4.1. Core model

The pattern and magnitude of the trans-border flows can be discerned by constellation of
the conducive parameters that enable superseding the ‘barriers to riches’ (Parente and Prescott,

7 Emerging Southern Giants are new economic center of gravity and hence, recently scope of South-South, South-North
cooperation in a declining North-South trend is often explored (see OECD, 2010a; Santos-Paulino and Wan, 2010). In
this paper, for parsimony we do not consider such scheme.

8 Proximity is proxied by physical distance between two members or margins of trade.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 73

1994). Acquisition of state-of-the-art technologies from the industrialized nations (North) to
the developing economies (South) is a dominant mode of fostering productivity growth via
knowledge propagation (Coe et al., 2008; Eaton & Kortum, 1996; Lucas, 2009a, 2009b;
Spence, 2011). As Tang and Koveos (2008) has shown that both trade-embodied and dis-
embodied information technology-induced knowledge spillovers have larger impact than FDI
effect, I consider conjoint impacts of both channels of diffusion. In fact, Tang and Koveos
(2008) and Bitzer and Kerekes (2008) have shown that ICT cluster and trade, as compared
to FDI, has larger impact on technology spillover from G7 to other destination nations. Vita
(2013), Jorgenson and Vu (2013), López-Puyeo and Mancebón (2010), and Bayraktar-Sağlam
and Yetkiner (2014) has mentioned the necessity of policies for innovation, capital accumu-
lation and spillover assimilation for labor-productivity growth in ICT industry as a leading
sector.

Contrasting performances across countries in seizure of the potential benefits of trans-boundary
technology spillovers has been ascribed, inter alia, to their heterogeneous assimilation and
idiosyncratic features related to enabling ‘systems of learning and diffusion’, like governance,
learning, indigenous technological and absorptive capability (AC), geographical distance, tech-
nological and structural congruence. On the contrary, lack of such factors or bottlenecks will
aggravate the syndromes, impede absorption and effective utilization of ideas, and make devel-
opment disorderly. All these are encapsulated into a learning effect and adoption parameter
(LeAP).

Regarding the source region (generically, North), we consider G7 as the major progenitor
of technological change. Typically, destination regions comprise the amalgam of heteroge-
neous nations, viz., other ‘Norths’ (like other EU and other OECD nations), dynamic adopters
or emerging economies, as well as the relatively laggards encapsulated into generic ‘South’.
We reserve ‘r’ for all regions (say, REG) where r ∈ {n, k, u} where ‘n’ is the source
(unique), ‘k’ and ‘u’ are other northern and southern recipients of technological change respec-
tively. Thus, s ∈ [k, u] represents generic ‘destinations’. One pertinent point to note is that
we will use ‘r’ to represent all regions and then, as per the requirements of specification
we will use the moving subscripts/superscripts viz., ‘n’, ‘s’, ‘k’ and ‘u’ (s ⊂ r and n /= k,
u /= k).

Investment in skill helps unlocking the potential of technological capability and technology
absorption, diffusion of ideas and innovation-entrepreneurship (Caselli & Coleman, 2006; Cosar,
2011; Goldberg, Branstetter, Goddard, & Kuriakose, 2008; Herrerias & Orts, 2013; Jones, 2008;
Kosempel, 2007). Destinations’ growth depends on the extent of technology propagation as
well as on skill intensity-induced absorptive capacity (AC). ACr index is region ‘r’ specific
0 ≤ ACr ≤ 1. Following Sen (2004), this ‘capability’ translates into important functioning of
accessing technological improvement, and converting into well-defined action via productiv-
ity.

As successful adoption depends on a combination of factors such as, educational attainment,
intensity of R&D activity, knowledge creation, we need to consider a broader aggregative multi-
dimensional ‘Innovation Capability Index’ (0 < ICCr < 1) as developed by the World Investment Report (2005). Not only that, technology availability to a region (0 < TAr < 7) is also crucial for technology acquisition, derived from scores of such measure from Global Competitiveness Report (2009–2010). Kosempel (2007) has shown that elasticity of human capital acquisition in response to technology, a measure of learning propensity, determines TFP. Thus, productivity of skill

74 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

depends on availability of learning scope or technology (TAr) R&D, ICC and AC, determining
regional ‘Technology Absorption Parameter (TAPr)’.

9 Thus, we write:

TAPr = ACr · TAr · ICCr (1)
Bi-lateral, with respect to TAP of G7 (n = North) is defined as:

TAPns = min
[

1,
TAPs
TAPn

]
, where r = n, s = k, u (2)

Here, also TAPns ∈ [0,1] with zero implying further away from the technological absorption
capacity of the relatively advanced nation/s and unity implying closer to innovating partners.

Keller (2004) mentions, ‘speeding up the diffusion of technology [will] depend on the dis-
tribution of human capital and R&D across countries (pp. 774–775).’ As 96% of world’s R&D
expenditure flows take place in the developed North, abstracting from Southern R&D does not
necessarily undermine our primary emphasis. I here consider domestic R&D expenditure data (as
% of GDP) as flow variable measure. For own R&D (R&Ddr ), we combine data—domestic R&D
expenditure as percentage of GDP (GERD) from UNESCO (2008) and Human Development
Report (2008, 2009) for the base year of Gtap data (i.e., 2004)—to match the single region and
derive for composite regions a simple average of their component-wise figures. We take GTAP
database’s regional imports, exports and bi-lateral intermediate import shares in total imports in
the destination to get foreign R&D flows (R&D

f
r ) according to the formula:

R&Dfs = R&Ddn · TFPn · Ψns, where r = n and s = k, u (3)
where n = G7 and ‘s’ is destination. Ψ ns = bilateral intermediate import shares in value-added.

As there are substantial inter- and intra-regional trade flows among the composite North and
their partners, we adopt the same formula to derive intra-regional flows. Thus, total R&D for a
particular region ‘r’ is:

R&Dr = R&Ddr + R&Dfr ∀r = n, k, u (4)
Therefore, bi-lateral, with respect to R&D of G7 (n = North), is defined as:

R&Dns = min
[

1,
R&Ds
R&Dn

]
, here r = n (5)

Here, also R&Dns ∈ [0,1] with zero implying further away from the invention frontier.
A measure of foreign R&D flow that transmits across borders directly (disembodied, DISEMBr)

via effective teledensity—international telephone traffic, broadband penetration, cellular sub-
scription encapsulated in telecommunications infrastructure penetration per 100 inhabitants
in a region—is also computed to measure bilateral technological proximity. Ours coverage of
disembodied flows is derived as:

between source ‘n’ and destination ‘s’ : DISEMBns = R&Ddn · dn · ds (6a)
between norths : ‘n’ and ‘k’ : DISEMBn =

∑
k /= n

R&Ddn · dn · dk (6b)

9 Wang (2007) has measured the elasticity of AC wrt Human capital as quite high for South—3.3 whereas elasticity of
TFP wrt Human capital is 1.1 for almost all the regions. Das (2002) explores relationships between AC and TFP.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 75

Here, dr (∀r) is a composite measure for the development of teledensity such as telephone and
internet subscribers penetration obtained from Telecommunications Database (World Telecom-
munications ICT Indicator, International Telecommunications Union, ITCU 2008).

Therefore, bi-lateral, with respect to R&D of G7 (n = North) is defined as:

DISEMBns = min
[

1,
DISEMBns
DISEMBn

]
, (where r = n) (7)

Thus, from earlier discussion and specification we infer that foreign R&D gives scope for cross-
border learning, and subsequent innovations build on cumulative R&D experience. As regards
the bilateral trade intensity, following Bergstrand (1985) & Linnemann (1966), we calculate the
bilateral distance between ‘n’ and ‘s’ (Dns) using a simple specification as below:

Dns = exp
[
−

∣∣∣∣ dnsdmaxns
∣∣∣∣
]

(8)

where dns = distance between ‘n’ and ‘s’ and d
max
ns is the largest absolute distance between all pairs

of regions. This formulation scales the differences in binary distances on the unit interval so that
the function takes the value ‘unity’ if two countries are nearest, whereas declines exponentially
to ‘zero’ if they are farthest. Thus, the lower values indicate farther distant whereas higher values
imply geographical proximity.

The cross-country heterogeneity in the perceived effect of technology transfer depends, inter
alia, on factors encapsulated in Socio-Institutional Parameter (SIPr), such as rule of law, regulatory
constraints, violence, corruption, transparency, labor strikes, governance and social capital. These
are important policy-syndrome variables affecting growth and causing reversal of fortunes in
LDCs in Asia, Latin America or Africa (Lee and Kim: World Development 2010, Lucas 2009).
However, acceptance of ‘foreign technology’ depends also on social capital, social cohesion and
cultural affinity based on network and trust (Dasgupta, 2009). We construct such measure by the
UN’s human development index (HDI) embracing multi-faceted nature of social acceptance via
factors influencing human capital as well as income characteristics. This is specified via bi-lateral
proximity parameter HD (0 ≤ HDrs ≤ 1):

HDrs = min
[

1,
HDs
HDr

]
(9)

Domestic invention and foreign-sourced technological spillovers depend, inter alia, on domes-
tic institutional setting based on political dimensions and good governance, institutional factors
like legal side protecting intellectual property rights (IPRs), habits and even languages. Dasgupta
(p. 3, 2009) argues that “that a natural place to look for the worth of social capital in macro-
economic statistics is “total factor productivity” (TFP). TFP is an amalgam of technology and
institutions.” We incorporate these socio-institutional factors via a binary parameter of the index
of governance (Kaufmann, Kraay, & Mastruzzi, 2009), (GPrs, −1 ≤ GPrs ≤ 1) as comparative
measure of institutional quality indicator between partners as:

GPrs = min
[

1,
GPs
GPr

]
(10)

If destination ‘s’ has higher GPs than that of source ‘r’ i.e., GPs > GPr, then it is conducive
governance structure for ‘s’. Otherwise, if the client region lags in institutional quality behind the
advanced source [i.e., GPs < GPr], then it poses hindrance in ‘s’ even with high TAP. Regarding

76 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

corruption or transparency, we take Transparency International’s (2008/9) Global Corruption
Barometer data on Corruption perception Index (0 < Tr < 10). Also, a composite indicator of national competitiveness (1 < Cr < 7) which encapsulates different aspects of a nation’s technolog- ical readiness in terms of socio-economic variables is taken from Global Competitiveness Report (World Economic forum 2008/09). Hence, the socio-institutional parameter (SIPr) is defined as:

SIPr = Tr · Cr · GPr (11)
As before, we convert it into a binary parameter [0 < SIPns < 1] w.r.t. n = G7 as below:

SIPns = min
[

1,
SIPs
SIPn

]
(12)

Having described the arrays of ‘barriers to adoption and diffusion’ parameters, we specify a
binary Learning effects and Distance Function (LeADns) between ‘n’ and ‘s’ as:

LeADns = R&Dβnsns · HDφnsns · Disembns · Dns ∀s = k, u and n = G7(unique) (13)
where Φs = elasticity of TFP/R&D with human capital or education is taken from prior study
(Wang, 2007, World Bank) and βs = elasticity of TFP with foreign R&D. We set Φs = 1 (Wang,
2007 estimates it 0.99–1.06) and βs = 0.12 (for advanced economies based on CHH 1995) and
βs = 0.3 for all emerging and dynamic adopters (Wang, 2007), and βs = 0.04 for least developed
ones.

For laggards the values will be lower than the dynamic adopters or advanced northern recipients
(i.e., LeADnk > LeADnu). Now, we define the structural congruence index (0 < SCIns < 1) and Technological congruence Index (0 < TCIns < 1) parameters between ‘n’ and ‘s’ as:

SCIns = LeADns · SIPns (14)
and

TCIns = LeADns · TAPns (15)
For the advanced North (here G7 composite), the major source of knowledge or current vintage

technology, we define a function representing its invention capability. We call it ‘Indigenous,
Disembodied and Embodied R&D, and Schooling parameter (IDEASr) where

IDEASr = R&Dr · HDIr · DISEMBr
This is, in fact, related to LeADr variables. This is, in fact, related and isomorphic

to LeADr variables. Next we discuss the crucial parameters for technology capture and
assimilation—Learning-enabled Absorption Parameter (LeAP)—for North (LeAPn) and north
vis-à-vis recipients ‘s’ (LeAPns) as follows:

LeAPn = ACn · ICCn · TAn · GPn · Cn · Tn · IDEASn (16)
and

LeAPns = ACs · ICCns · TAns · GPns · Cns · Tns · LeADns, ∀s = k, u
= TAPns · LeADns · SIPns

(17)

It is different from (13) as the dimensions of Syndrome-variables enter into (13) to determine
the extent of capture from accessible technology spectrum, failing which emerges the development

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 77

and growth disorder. Following an exogenous Hicks-neutral technological improvement in one
sector of a region (i.e., the ICT sector in the North), all other sectors in the source and destinations
experience trade-induced endogenous TFP improvement. We define embodiment index [Eijrs] as
the flow of imported intermediate in sector ‘i’ in source region ‘r’ and exported to firms in sector
‘j’ in recipient ‘s’, [Firjs], per unit of composite intermediate input (domestic as well as composite
imported inputs) of ‘i’ used by ‘j’ in ‘s’, [Mijs]. Thus,

Eirjs =
Fijrs

Mijs
(18)

Spillover coefficient for ‘j’ in destination ‘s’ (γ ijrs) is:

γijrs(Eijrs, θs) = E1−θsijrs (s ∈ {k, u}) (19)

γs(0) = 0, γs(1) = 1, γ′s = (1 − θ) · E−θsrs > 0, γ′′s =
[ −θs(1 − θs)

E
1+θs
rs

]
< 0

where θ = LeAP ∀ r ∈ {n, s} and s ∈ {k, u}. The realized productivity level from the potential flows
of ‘current technology’ depends on LeAPns ∈ [0, 1], LeAPns = 1 implies full appropriation. For the
destination region ‘s’, θs and Ers jointly determine the value of the ‘Spillover Coefficient’ γ s (Ers,
θs), where primes indicate the first (

′) and the second (′′) derivatives with respect to Ers. Thus, if
Firjs indicates usage in region ‘s’ by ‘j’ of imported intermediate ‘i’ from ‘r’, we assume that the
share of imported input ‘i’ from source ‘r’ in receiving region ‘s’ holds for all industries ‘j’ in ‘s’
using imported input ‘i’:

Firjs

Fijs
= Firs

Fis
(20)

where Fis is the aggregate imports of tradeable commodity ‘i’ in region ‘s’ from all source regions.
Source ‘r’ reaps technological spillover via inputs embodying technology so that:

Eijn =
Dijn

Mjn
, i /= j (21)

where Dijn is the domestic tradeable ‘i’ used by j of ‘r = n’. Mjr represents domestic production
of ‘j’ in ‘r = n’. Given constellation of parameters, higher IDEASn and LeAPn induce knowledge-
spillover via:

γijn(Eijn, LeAPn) = E1−LeAPnijn (22)
θn has one-to-one correspondence with LeAPn, 0 ≤ LeAPn ≤ 1. TFP transmission equation for ‘s’
is:

ajs = E1−LeAPnsijns ain (23)
where ain – an exogenous TFP improvement in sector ‘i’ (IT-cluster) of ‘r’ (r = n) – induces endoge-
nous TFP changes ajs, translating into induced-innovation in user-clusters. Such a mechanism is
invoked via:

afijs = E1−LeAPnsijns afijn (24)
where afijn is ith (unique

′i′) input-augmenting technical change in ‘j’ sector in ‘n’.

78 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

4.2. Construction of parameters

Tables 5 and 6 show the Technology appropriation parameters for each region as well as the
binary values vis-à-vis G7 (North = n). Look at the pattern in the Table/s: compare BRIC, although
TA is almost similar in the range of 4.1–5.5, but as AC is highest in Brazil and ICCr is higher
its TAP parameter value is higher than other 3 in the group. Thus, although ‘available tech’ is
comparable, differences in Innovative Capability and Absorptive Capacity make the difference.
It shows the Socio-institutional parameters as described in Section 3. R&D-expenditures data
are from published sources (for example, ANBERD or STAN or OECD’s Main Science and
Technology Indicators). However, we use UNESCO (2008) and UN’s Human Development Report
(2008) (see Tables 5 and 6). Table 7 gives the measures of structural and technological congruence
between the north (G7 here) and other destinations, showing that relatively advanced nations and
dynamic adopters (Hong Kong, South Korea, BRIC) have higher TCI and SCI values compared
to the followers or laggards, for example, MENA, RSA or SSA.

Comparing TCIns and TAPns, we see that they are not equal also the ranking is preserved more
or less. This is because magnitude of LeADns values—encapsulating learning, human develop-
ment, research efforts and spillover—impact on the technology appropriability and magnitude
of those factors for technology assimilation. In case of structural symmetry, we see that G7 is
more congruent to EU and other OECD, as compared to, for example, SSA, India, China, RSA,
LAC or MENA. Typically, rapidly industrializing economies, like South Korea and Hong Kong-
Taiwan, have higher bilateral SIP values (and hence, SCI) with G7 because of higher indices
for the constituent parameters like GP, transparency, and lower Corruption perception index.
Thus, the constituents of the learning and distance function (via Eq. (13)) determine the extent of
congruence—either institutional or technological—between north and the southern recipients.

From Table 7, we observe that usually countries/regions with better enabling factors have higher
bi-lateral LeAP and LeAD values, for example, dynamic Asian economies like S. Korea, other
OECD and EU vis-à-vis G7. Comparing India among BRIC and LAC, the values for the embodied
and disembodied spillover are lower. With low values for HDI, she registers low magnitude
for ‘Ideas’ parameter. But, if we compare India with developing South East Asia and Latin
America, disembodied spillover is lower in India. HDI values are lower, too. Thus, even with
higher embodied spillover LeAD and IDEAS for India are lower than these emerging economies.
It confirms our conjecture that disembodied spillover and better governance and institutions are
crucial factor for ‘IDEAS’ to develop.

4.3. Illustrative simulation design: productivity experiment

The model is a special tailor-made version of a CGE trade model-GTAP (Hertel, 1997). For
capturing direct and indirect intersectoral effects based on well-defined production and demand
structure, the CGE model scores over the simplistic input-output specification and the Social
Accounting Matrix (SAM) based models, and enable us to account for behavioral responses of
each representative economic agent in response to relative price changes following policy changes.
Because of our enhancement of theory via technology spillover mechanism, an augmented version
of the comparative static multi-regional, multi-sectoral model is solved using General Equilibrium
Modeling Package (GEMPACK) (Harrison & Pearson, 1996). We just consider 5% Total factor
productivity shock in the north, G7. From the current literature on TFP, we see that sources
of TFP growth are mainly governed by ICT growth in most sectors (see EUKLEMS database,
release March 2008 and Groningen Growth and Development Center (GGDC 2006), and OECD

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elin
g

3
7

(2
0

1
5

)
6

5
–

9
1

79

Table 5
Region-wise Technology Absorption and Socio-institutional Parameter derived from Eqs. (1), (2), (11) and (12) in the text.

GTAP code GTAP regions Tr, CPIr Cr, GCIr GPr SIPns TAr ACr ICCr TAPr TAPns

G7 G7-North Developed 7.228571 5.184509 1.31564 1 6.128571 0.724223 0.870286 3.862724 1
OtherEU EU minus G7 4 members 7.745455 4.979621 1.528518 1 6.054545 0.705468 0.853545 3.64574 0.94
Brazil Brazil 3.5 4.227963 0.75 0.22 5.3 0.561541 0.529 1.574394 0.41
Russia Russian Federation 2.1 4.152973 0.28 0.05 4.1 0.466861 0.79 1.512162 0.39
India India 3.4 4.303131 0.59 0.18 5.5 0.314229 0.29 0.501195 0.13
China China 3.6 4.736538 0.38 0.13 4.3 0.279342 0.358 0.430019 0.11
Hkg Twn HongKong Taiwan 6.9 5.211573 1.128491 0.82 6 0.720604 0.714 3.087069 0.8
SouthKorea South Korea 5.6 5.003964 1.42 0.8 5.9 0.447592 0.839 2.215624 0.57
SouthEAsia Developing Asia 3.27 4.168391 0.49 0.14 4.75 0.353306 0.3612 0.606166 0.16
RSA Rest of South Asia 2.7125 3.645467 0.18 0.04 3.75 0.346921 0.17375 0.226041 0.06
ECA Europe and Central Asia 4.004667 4.068955 0.86 0.28 4.513542 0.426924 0.60328 1.162483 0.3
SouthAfrica South Africa 4.9 4.340151 1.16 0.5 5.5 0.564539 0.55 1.707731 0.44
LAC LatinAmerica&Caribbean 3.640686 3.857779 0.62 0.18 4.138125 0.430442 0.373625 0.665509 0.17
Mexico Mexico 3.6 4.189043 0.76 0.23 4.6 0.617532 0.47 1.335103 0.35
OthrOECD OECD minus G7 minus EU 8.7 5.13939 1.732302 1 6.38 0.698383 0.896 3.992294 1
MENA MiddleEastNorthAfrica 3.356944 4.177408 0.47 0.13 4.995833 0.481806 0.3715 0.89421 0.23
SSA Sub-Saharan Africa 2.984375 3.48093 0.28 0.06 4.207639 0.276345 0.146813 0.170708 0.04

Source: Author’s calculation by matching with GTAP Regions based on external Datasources; AC (from GTAP), ICC (World Investment Report 2005), TA (Global Competitiveness
Report 2008/2009), T (transparency international), GFI (Global competitiveness Report 2009), GP (World Bank 2009). See text.

80

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g
3
7
(2
0
1
5
)
6
5
–
9
1

Table 6
R&D flows comprising own R&D and Trade-mediated flows (via Eqs. (3)–(5)) with Intra-Regional flows in 3 Composite Norths n1, n2, and n3.

GTAP regions n1 = G7 n2 = Other EU n3 = Other OECD Total foreign
R&D spillover

Own R&D Total
R&Df + R&Dd

Own Domestic
Bi-lateral
R&Dns

North–South
Bi-lateral
R&Dns

TRDFn1s TRDFn2s TRDFn3s Aggr R&Df R&Dd Total R&Dr

1 G7 0.818344 0.248468 0.040196 1.107009 2.234765 3.341774 1 1
2 OtherEU 1.013433 0.341471 0.035673 1.390577 1.923093 3.31367 0.86 1
3 Brazil 0.917653 0.182791 0.030486 1.130929 0.968866 2.099795 0.43 0.63
4 Russia 0.815808 0.244339 0.020218 1.080364 1.067194 2.147559 0.477542 0.64
5 India 0.499535 0.149897 0.08031 0.729742 0.80374 1.533481 0.359653 0.46
6 China 0.762083 0.076567 0.026729 0.865379 1.44 2.305379 0.644363 0.69
7 Hkg Twn 0.907377 0.069333 0.039655 1.016365 0.694976 1.711341 0.310984 0.51
8 SouthKorea 0.925408 0.060453 0.046127 1.031989 2.6 3.631989 1 1
9 SouthEAsia 0.73246 0.099003 0.033905 0.865368 0.394665 1.260033 0.176603 0.38

10 RSA 0.528673 0.106296 0.036234 0.671203 0.366886 1.038089 0.164172 0.31
11 ECA 0.831126 0.251604 0.02322 1.10595 0.576384 1.682335 0.257917 0.5
12 SouthAfrica 0.882286 0.166564 0.035765 1.084616 0.919225 2.003841 0.41133 0.6
13 LAC 0.87102 0.141309 0.018794 1.031123 0.270354 1.301478 0.120977 0.39
14 Mexico 1.52725 0.077711 0.011637 1.616598 0.504215 2.120814 0.225623 0.63
15 OthrOECD 1.01026 0.300632 0.042889 1.353781 1.873612 3.227393 0.838393 0.97
16 MENA 0.865824 0.200827 0.037445 1.104097 0.541462 1.645558 0.24229 0.49
17 SSA 0.692301 0.218337 0.019576 0.930214 0.243271 1.173484 0.108857 0.35

Source: Author’s calculations based on R&D data sources, UNESCO (2009) and UN’s HDR 2008/2009, and Trade shares derived from GTAP Version 7 database.

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3
7
(2
0
1
5
)
6
5
–
9
1

81

Table 7
Values of binary Structural and Technological Congruence Indices, LeAP, LeAD, Disembodied R&D and the elasticity values based on Eqs. (5)–(7), (9), (13)–(16).

GTAP
regions

HDIr HDIrs IDEASr
= RDr·
HDr·
DISEMBr

LEADrs TCIrs
= LEADrs·
TAPrs

SCIrs
= LEADrs·
SIPrs

TCIr
= IDEASr·
TAPr

SCIr
= IDEASr·
SIPr

LeAPns DISEMBns Dns Φrs βrs

G7-North 0.948429 1 0.035614 1 1 1 1 0.12
OtherEU 0.943545 0.99 0.038248 0.617547 0.580494 0.617547 0.139441 2.254848 0.580494 1 0.623784 1 0.12
Brazil 0.8 0.84 0.027024 0.162527 0.066636 0.035756 0.042546 0.006573 0.01466 0.526977 0.421747 1 0.3
Russia 0.802 0.84 0.030121 0.249959 0.097484 0.012498 0.045548 0.073555 0.004874 0.572885 0.593837 1 0.3
India 0.62 0.65 0.011277 0.093653 0.012175 0.016858 0.005643 0.097184 0.002191 0.388527 0.468125 1 0.3
China 0.777 0.82 0.026815 0.184067 0.020247 0.023929 0.011531 0.173747 0.002632 0.490363 0.511669 1 0.3
Hkg Twn 0.937 0.98 0.029296 0.229298 0.183439 0.188025 0.090438 1.188829 0.15042 0.598465 0.478481 1 0.3
SouthKorea 0.921 0.97 0.058989 0.295867 0.168644 0.236694 0.130697 1.130771 0.134915 0.577664 0.52802 1 0.3
SouthEAsia 0.7232 0.76 0.01258 0.107272 0.017163 0.015018 0.007626 0.084021 0.002403 0.452218 0.417243 1 0.3
RSA 0.59525 0.62 0.007731 0.118231 0.007094 0.004729 0.001748 0.013761 0.000284 0.409845 0.487601 1 0.04
ECA 0.82825 0.87 0.023019 0.225121 0.067536 0.063034 0.026759 0.045981 0.01891 0.541157 0.588685 1 0.3
SouthAfrica 0.674 0.71 0.020776 0.112919 0.049684 0.05646 0.03548 0.183865 0.024842 0.503916 0.367879 1 0.3
LAC 0.777063 0.8 0.015994 0.149407 0.025399 0.026893 0.010644 0.139272 0.004572 0.518048 0.47818 1 0.3
Mexico 0.829 0.87 0.027162 0.220763 0.077267 0.050775 0.036263 0.007975 0.017771 0.506068 0.575964 1 0.3
OthrOECD 0.9582 1 0.03819 0.376426 0.376426 0.376426 0.152465 2.958018 0.376426 1 0.377804 1 0.12
MENA 0.7415 0.78 0.018966 0.208292 0.047907 0.027078 0.01696 0.125007 0.006228 0.509182 0.539631 1 0.04
SSA 0.497625 0.52 0.00677 0.087011 0.00348 0.005221 0.001156 0.019691 0.000209 0.379742 0.459537 1 0.04

Source: Author’s computations based on data constructed as described in the text and in other tables.

82 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

Productivity Database 2008). For simulation, however, we consider GGDC (2006)’s Productivity
monitor to get estimated TFP growth in ICT (Table 12, GGDC 2006).

5. Selective simulation results

5.1. Macroeconomic impacts

Macroeconomic impacts show that following the TFP-led endogenous spillover via trade-
embodiment in all traded sectors (both domestically and abroad), all the regions register higher
TFP improvement—although magnitudes differ across regions—owing to differential embodied
knowledge-spillover via intermediates (Table 8). We see the largest beneficiary is the other two
developed regions, namely, other EU and OECD. They have higher embodiment and spillover
coefficients (see Table 9). LDCs like MENA, Mexico, SSA have highest region-wide trade-
embodiment index (Eirs). Nevertheless, higher capture-parameter (LeAPnk > LeAPnu) magnifies
Eirs to higher spillover-coefficient, 0.52 and 0.42 by more than 100% compared to Low and
middle income economies (LMIE) (varying on an average between 0.01% in case of SSA, MENA,
Mexico, India to 25% in case of S Korea, Hong Kong Taiwan).

Despite having low LeAP(θnu), with post-simulation technological benefits higher, γ irs and Eirs
result into higher TFP, exports and GDP growth in LMIE. In G7, principal beneficiary of tech-
nological change, highest value of LeAP(θn) amplifies spillover γ ir reflected in highest GDP and
TFP-growth (rows 1, 2 and 3, Table 8). North, thus, reaps the maximum productivity growth by
sourcing relatively high proportion of its own ‘technological improvement-bearing’ input. TFP-
growth acts as an export supply shifter for each generic commodity so that output and global trade
increases (rows 4 and 5, Table 8).

Regional differences are explained in terms of differences in the economy-wide embodiment
index and spillover coefficient (Table 9). As conjectured, G7, EU, other OECD and dynamic
adopters of foreign-improvement in technology, like Korea, Taiwan, China, Hkg have registered
much higher regional index of technical change as opposed to the relatively laggard, viz., Rest
of South Asia, Africa and most of the Latin American countries experiencing modest region-
wide TFP performance. This is attributed not only to lower embodiment index, but also to lower
capture-parameter thanks to higher R&D-enabled flows, as well as the better institutional set up
facilitating higher learning effect and assimilation by these emerging economies.

However, for MENA and SSA, although being outliers in case of having low LeAP values or
SIP, Technology Appropriation Parameters, they show better performance in terms of almost all
macroeconomic variables reported in Tables 8 and 9. This is due to higher values of trade-led
embodiment via traded intermediates. USA, EU, Canada and Japan in G7-being more structurally
congruent and hence, along with trade-embodiment-reaped most of the benefits of own and foreign
induced spillover because of highest values of socio-economic parameters, viz., GP, HDI, R&D
flows and ICC (see the values in Tables 5–7). On the contrary, for India, SSA, MENA, Rest of
Africa, and South Africa, these values are considerably low. In fact, for GP values showing poor
governance quality, the capture parameter drives the magnitude of structural-congruence (SCIrs)
to low (see Tables 5 and 7). Table 9 shows that BRIC has lower SCIrs values than those in S. Korea,
HKG Twn, and other North; lower SIPns and LeADns caused lower capture values (LeAPns) so
that they were unable to tap the potential spillover in foreign-technology. As conjectured, regions
with higher ACs, HDrs, R&Drs, DISEMBrs, GPrs and ICCrs had higher absorption and adoption
of technology vehicle via trade, for example, the case of South Korea, Other OECD, Hkg Twn,
ECA, etc. In case of G7, the more pronounced TFP-enhancement is attributed to the fact that most

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Table 8
Simulated macroeconomic impact of 5% TFP shock in G7 (North) in ICT sectors and its repercussions in destinations for some selected macroeconomic variables.

Variables (%
change)

G7 OtherEU Brazil Russia India China Hkg Twn SKorea SE Asia ECA SAfrica LAC Mexico OthrOECD MENA SSA

1 Region-wide Tec
Change

5.79 4.11 0.53 0.88 0.52 0.59 2.41 1.13 1.40 1.66 1.13 1.28 1.45 3.05 1.92 2.08

2 Regional Income
(real)

5.00 3.11 0.34 0.87 0.42 0.66 2.20 1.03 1.48 1.45 0.99 1.20 1.48 2.56 1.85 2.02

3 Real GDP 4.44 2.79 0.36 0.79 0.51 0.64 2.08 1.07 1.29 1.31 0.89 1.10 1.33 2.30 1.61 1.76
4 Regional exports

(volume)
1.71 3.22 5.55 1.96 5.64 3.33 2.33 3.63 2.16 2.76 3.12 3.61 3.42 3.59 2.55 2.85

5 Regional imports
(volume)

4.11 2.38 −1.30 0.21 −0.82 0.24 1.19 0.75 0.82 0.70 −0.10 0.42 1.38 1.64 0.64 1.05

6 Regional export
Price Index

−3.31 −3.44 −3.90 −3.26 −3.89 −3.51 −3.51 −3.74 −3.41 −3.43 −3.48 −3.48 −3.42 −3.49 −3.33 −3.34

7 Regional import
Price Index

−3.41 −3.37 −3.39 −3.39 −3.37 −3.43 −3.40 −3.35 −3.41 −3.37 −3.42 −3.44 −3.38 −3.39 −3.41 −3.41

8 Terms-of-Trade 0.11 −0.07 −0.53 0.14 −0.54 −0.09 −0.11 −0.40 −0.01 −0.06 −0.06 −0.04 −0.05 −0.10 0.08 0.07
9 Welfare (in US $

million)
1,154,495 99,822 1839 4719 2483 9938 9397 6163 10,072 15,709 2342 9283 8938 30,764 18,471 4510

10 Change in trade
Balance ($Usmln)

−99,537 11,322 5414 1310 6892 17,044 1960 5980 5844 12,650 2510 6812 3614 6491 7531 1746

11 Per capita real
income (HHLD)

5.00 3.11 0.34 0.87 0.42 0.66 2.20 1.03 1.46 1.45 0.99 1.20 1.48 2.56 1.85 2.01

12 Regional
investment demand

5.12 3.16 0.33 0.90 0.57 0.69 2.22 1.06 1.55 1.54 0.99 1.22 1.86 2.57 1.91 2.10

Source: Author’s simulation results. Except welfare and change in trade balance, figures present post-simulation %-deviation from base case scenario.

84

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Table 9
Values of economy-wide spillover, embodiment indexes and constituents of learning and effective capture parameters.

G7 OtherEU Brazil Russia India China Hkg Twn SKorea SEAsia ECA SAfrica LAC Mexico OthrOECD MENA SSA

Aggregate Embodiment 0.092662 0.241771 0.076912 0.138281 0.093122 0.108811 0.326736 0.146455 0.244025 0.249281 0.173661 0.220713 0.24376 0.268228 0.294053 0.323586
Aggregate Spillover 0.803137 0.515655 0.079615 0.139549 0.093516 0.109389 0.381974 0.184688 0.244789 0.255421 0.180978 0.222078 0.248918 0.421236 0.29607 0.323653
LeADns 1 0.617547 0.162527 0.249959 0.093653 0.184067 0.229298 0.295867 0.107272 0.225121 0.112919 0.149407 0.220763 0.376426 0.208292 0.087011
LeAPns = θ 0.95559 0.580494 0.01466 0.004874 0.002191 0.002632 0.15042 0.134915 0.002403 0.01891 0.024842 0.004572 0.017771 0.376426 0.006228 0.000209
SIPns 1 1 0.22 0.05 0.18 0.13 0.82 0.8 0.14 0.28 0.5 0.18 0.23 1 0.13 0.06
TCIrs 0.580494 0.066636 0.097484 0.012175 0.020247 0.183439 0.168644 0.017163 0.067536 0.049684 0.025399 0.077267 0.376426 0.039797 0.002649
ACr 0.724223 0.705468 0.561541 0.466861 0.314229 0.279342 0.720604 0.447592 0.353306 0.426924 0.564539 0.430442 0.617532 0.698383 0.481806 0.276345

Source: Author’s calculation based on databases and adapted for GTAP databases regional aggregation as documented in the text.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 85

of the spillover is domestically sourced with indirect spillover with the trading partners, namely,
EU, Japan, High-income Asia and Canada (a NAFTA member). Table 8 (3rd item) shows that,
region by region, the overall technical change translates into approximately similar percentage
increase in real GDP at factor cost. As the shock is factor-neutral, with fixity of regional supplies
of all the components of value-added, the percentage deviation in real GDP at factor cost is almost
equal to the respective region-wide TFP changes.

Real income increases in all the scenarios in all regions, caused by relatively pronounced
TFP-gains (row 2, Table 8). More predominant effect occurs in USA, Canada, LAEEX, EU,
Brazil and high-income Asia as they experience higher doses of trade-induced spillovers. For
Canada and Mexico, since they belong to NAFTA with USA as the hub, the induced spillover
is more dominant. However, in case of South Korea, the trade-induced spillover is high due to
higher trade in ICT, biotech intermediates and higher AC and LeAPrs, SCIrs. After the technology
shocks, there are changes in price relativities across regions which induce changes in regional
TOT (row 8, Table 8), perturbing the pattern of inter-regional competition. This indicates that
due to technological benefits there is substantial cost reductions leading to decline in export
price indexes in all the regions—the extent of fall depending on the magnitude of technology
transmission and its actual capture by the sectors in destinations. From Tables 8 and 10, we
observe that aggregate regional export price indexes fall in almost all the regions with more
fall observed in the major beneficiaries of such spillover and its higher capture such as Canada,
Argentina, Japan, China, Brazil, India, and EU, compared to SSA, RoAFR, MENA and RoSAsia,
benefiting from cost-reduction technological inventions. This resulted in increase in volume of
regional exports (trade as a whole)—see rows 4 and 5 in Table 8. In case of Brazil, India, other
Asian countries considered, and Africa, regional imports shrank a bit due to increase in own
production via TFP-gains, acting as an export-supply shifter for each generic commodity. Not
surprisingly, all the countries have a positive change in trade balance, with degrees differing owing
to differences in realization of trade-induced benefits. Regional investment demand, following the
technological benefits augmented with lowest impact in India and China—this is surprising, but
given the base period data (2004), it could be attributed to the post-simulation lesser TFP growth
benefits accrual—caused by lower sets of host of parameter values. The aggregate spillover index
gives us an average overall magnitude of technology appropriated by all user sectors in G7 as
well as host regions from the ICT sector via intermediate inputs. From Table 9, it is evident that
the aggregate spillover index in G7 is highest and domestic spillover is higher than the LDCs.
The capture-parameter (θn) in G7 is higher than θs in all the destinations, so that it reaps the
maximum spillover (γ ir) compared to most of the LDCs and other EU, and OECD. For EU,
Japan and BRIC, although the values of Eirs are of the same order of magnitude, the aggregate
spillover coefficient (γ irs) for EU and OECD is of much higher magnitude than in most of the
LDCs in South America and South Asia and the composite African regions. This is because
the higher value of the capture parameter (θr) magnifies the value of the embodiment index and
hence enables them to record a much higher rate of TFP improvement. From Tables 8 and 9, it is
evident that in conformity with our theory the relatively laggard and less congruous regions like
Argentina, Brazil, South Asia, Mexico and Africa register moderate growth effects. Note that the
ordering of the spillover coefficient in Table 9 matches the ordering of the real GDP results in
Table 8. Regarding Welfare effects, in all the simulations it leads to welfare-augmentation with
much higher welfare improvement in case of concomitant productivity improvement of ICT. It
is true in most of the regions exception being South Asia, Africa and Thailand capturing less
trade-induced benefits due to lower capture (Table 8, Row 9).

86

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Table 10
Simulated impact on output supply and supply prices of selected sectors under the designated scenario along with the embodied spillover coefficients, TFP and sectors’ total
exports.

G7 OtherEU Brazil Russia India China Hkg Twn SKorea SEAsia SAfrica LAC Mexico OthrOECD MENA SSA

Output supply
ElectronicIT 1.684141 1.564169 1.515986 −0.06163 0.914797 1.363866 0.660896 3.082189 1.464043 −0.70159 0.750626 1.719393 2.792393 1.13524 1.07523
Nano Matrls 3.486675 3.827113 2.294131 1.293233 1.626885 1.362416 2.092595 1.837482 1.840176 2.31871 2.912059 1.925469 3.197725 1.94574 2.669626
TransportTec 4.08713 2.127445 0.868632 −0.17769 −0.96964 −0.31345 1.074714 0.806255 −0.45266 −1.05208 −0.53035 1.440262 0.83883 0.026598 0.984384
Svces 4.507883 2.846243 −0.13396 0.576299 0.256751 −0.00123 2.231367 0.577624 1.038605 0.737413 0.678662 1.322104 2.154094 1.530571 1.408554
CGDS 4.165318 0.199055 −5.53456 −2.4364 −3.6582 −2.41853 −2.20215 −3.30653 −3.91163 −5.67351 −3.58932 −1.87392 −1.14356 −2.79036 −2.56045
Supply prices
ps
AgBioTech −3.46632 −3.50879 −3.61378 −3.31781 −3.21403 −2.99942 −3.36392 −2.85037 −3.41872 −3.5853 −3.51019 −3.47396 −3.4925 −3.51044 −3.56526
ElectronicIT −3.38304 −3.47757 −4.34954 −3.50561 −4.11489 −3.62464 −3.47068 −3.89258 −3.54901 −3.46891 −3.63969 −3.50858 −3.70436 −3.55024 −3.42163
Nano Matrls −3.16046 −3.38083 −3.7189 −3.16953 −3.63847 −3.43692 −3.31602 −3.38402 −3.27029 −3.41994 −3.49844 −3.47162 −3.30856 −3.19095 −3.3089
TransportTec −3.75058 −3.58604 −3.96537 −3.59393 −4.19491 −3.57907 −3.4815 −3.69962 −3.41774 −3.44339 −3.52202 −3.67894 −3.52518 −3.68159 −3.51473
Svces −3.09876 −3.42432 −4.10873 −3.36418 −4.24096 −3.58843 −3.61997 −3.8152 −3.40628 −3.47987 −3.33115 −2.73285 −3.52303 −3.66381 −3.27985
CGDS −3.24948 −3.4566 −4.05061 −3.40775 −4.10306 −3.57985 −3.56683 −3.78003 −3.4578 −3.49012 −3.42108 −3.36055 −3.52785 −3.60615 −3.38989
Commodity-wise regional exports
qxw
ElectronicIT 0.314352 1.417106 8.093122 0.149507 6.742657 2.98725 0.724954 4.358434 1.658072 0.305252 2.508863 2.736252 3.459097 1.626718 1.181503
Nano Matrls 2.101226 4.264537 5.842737 1.895737 5.000992 4.255849 2.012942 2.800885 2.286862 4.045146 4.795204 5.313208 3.677576 2.120432 2.949326
TransportTec 3.179523 2.315035 3.54658 −0.51263 4.721197 1.838908 1.065863 2.003881 −0.57672 0.658994 0.214333 4.160388 0.843385 0.981344 1.226547
Metal MedTec 1.925837 2.837139 6.54308 1.870188 5.442841 2.861921 2.299726 2.719613 1.959651 2.747458 1.260477 −0.44785 2.761592 1.932792 1.183893
Svces 2.104148 3.455882 6.058083 3.066243 6.488312 4.012369 3.902191 4.149473 3.303499 3.776216 3.069859 1.319321 3.790215 4.471451 2.984968
Sectoral TFP (%) changes
avaall
AgBioTech 4.127485 2.875599 0.329549 0.671444 0.000666 0.182098 1.594373 0.236366 1.468324 1.17698 1.389678 1.457524 2.199038 1.490045 1.819754
ElectronicIT 5 3.071155 1.350795 1.025996 1.208258 0.996439 1.865391 1.745403 1.721374 0.878606 1.720621 2.250799 2.84877 1.6564 1.957118
Nano Matrls 4.11206 2.957302 0.334545 0.73672 0.323689 0.611827 1.67186 0.464999 1.225114 1.120991 1.722745 2.108583 2.290256 1.422197 2.113146
TransportTec 4.460036 2.896465 0.353648 1.374397 1.020911 0.554007 1.687535 0.820315 1.05413 0.449754 1.007364 1.56859 2.137932 1.849614 1.975464
Metal MedTec 4.296549 2.705159 0.343764 0.749156 0.251708 0.295329 1.921561 0.68097 1.420476 1.010909 0.544202 0.291073 2.295599 1.520918 2.022779
Svces 4.19724 2.827511 0.416733 0.725229 0.768205 0.65467 2.143546 1.047371 1.294663 0.894721 0.936262 0.776027 2.285038 1.811285 1.624791
Sectoral spillover coefficients
SPLCOEFFT
AgBioTech 0.733227 0.581898 0.068558 0.137671 0.000139 0.037548 0.325582 0.048799 0.30032 0.240755 0.284831 0.297628 0.447308 0.304668 0.370944
ElectronicIT 0.922728 0.620871 0.278202 0.209972 0.248436 0.204484 0.380441 0.356643 0.351606 0.179986 0.352006 0.457731 0.577265 0.338383 0.398692
Nano Matrls 0.802921 0.59819 0.069593 0.151003 0.067142 0.125839 0.341281 0.095857 0.250898 0.229365 0.352437 0.429125 0.465615 0.2909 0.430166
TransportTec 0.859164 0.58606 0.073554 0.280754 0.210304 0.113985 0.344455 0.168696 0.216078 0.09233 0.206916 0.320123 0.435033 0.377467 0.402395
Metal MedTec 0.828311 0.547869 0.071505 0.153542 0.052249 0.060856 0.391794 0.140173 0.290607 0.206954 0.112074 0.0598 0.466687 0.310929 0.411942
Svces 0.912772 0.572303 0.086621 0.148657 0.158644 0.134617 0.436601 0.215054 0.265044 0.183273 0.192389 0.159029 0.464569 0.36972 0.331502
CGDS 0.937794 0.609238 0.277299 0.312476 0.116009 0.185398 0.435001 0.296036 0.335883 0.275088 0.373101 0.158793 0.541632 0.439147 0.487766

Source: Author’s simulations. Except spillover coefficients, the induced productivity effects are post-shock % changes from base-case.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 87

5.2. Sector-wise effects

It is evident that spillover indexes depend on the source and user sector-specific trade-
embodiment index via the Equations (Section 3). The spillover coefficients for ICT, heavy
manufacturing and services are higher in G7 and other DCs than those in the less developed
host for these industries (Table 10). These technological improvements translate into productivity
gains leading to increased supply in all regions except for MENA, some LAC and SSA. As dis-
cussed before, this is attributed to lower technological spillover, lower capture and lack of R&D
causing less-pronounced TFP-effects (Tables 7 and 10).

However, in all scenarios productivity gains and capture has larger impact on supply prices to go
down—the impact differentials being caused by disparate TFP-augmentation and its assimilation.
The changes in price relativities coupled with the Armington (1969) specification of commodity
substitution triggers inter-regional competition. For the global economy as a whole, in all the
scenarios there has been an increase in the quantity index of world trade by almost 2.6%. In
effect, supply prices for all the commodities fall in USA and other developed economies whereas
for those experiencing lesser transmitted spillover benefits the gains are limited. Concomitantly,
output response is strongly positive in all the regions except very few negligible negative impacts
due to general equilibrium competition among regions and sectors. Not surprisingly, India, Rest
of South Asia, Vietnam, SSA, ROAFR, MENA, being laggard in technology capture and lower
transmission, register modest increase in supply. As expected, we see that this has been gov-
erned by the magnitude of the embodiment and spillover coefficients and uneven distribution of
productivity enhancements across sectors. A glance at Table 10 reveals that the impact of the tech-
nological improvement is not as uniform across sectors and other regions although the direction
of change matches expectation, largely governed by the magnitude of the sector-wise spillover
coefficients—influencing differentials in commodity-wise regional export performances. This
can be ascribed-one-to-one correspondence—to the differentials in the bi-lateral sectoral embod-
iment indexes [Eirjs]. Largest beneficiaries among the developing economies are South Korea,
Hkg Twn, South Africa, Mexico with BRIC being relatively unsuccessful due to lower spillover.
As expected, cost-reducing spillovers cause rise in regional exports (Tables 8 and 10).

6. Conclusion and policy insights

Empirical growth literature—based on Solovian and endogenous Lucas-Romer theoretical
paradigms—has embarked upon policy-recommendations for catching-up and convergence of
economies with per capita income differences, and brings into light the role of economic policy mix
for successful transition to growth. Complementarities between economic policy and structural
features such as institutions, financial development, infrastructure, governance as well as R&D-
policy, education are crucial for growth process (Calderón & Fuentes, 2012). Hence, the public
policies to stimulate structural change toward investments in R&D, human capital, infrastructure,
as well as trans-border technology diffusions are necessary for growth and avoiding middle-
income trap (MIT). According to the New Growth Theory framework (Barro & Sala-I-Martin,
1995; Lucas, 1998), the key requirements of technology-driven development are not simply global
integration and new knowledge as economic development requires education, combinations of
technical skills, and a whole series of institutions, networks, and capabilities that enable the
effective use of existing knowledge, all of which must be part of, or even precede, any serious
effort to create new knowledge (Das, 2002, 2010; World Bank, 2010).

88 G.G. Das / Journal of Policy Modeling 37 (2015) 65–91

Along this maintained hypothesis, in this paper, we construct an empirical general equilib-
rium model (CGE) to highlight the role of skill, institutions, innovation policy for assimilating
transferred technology, and avoiding middle-income trap via catch-up. The paper designs
a model where a change in policy facilitating trade, technology, different propensities and
heterogeneous assimilation to adopt frontier technology cause relative convergence and diver-
gence of regions to the world technology frontier. Based on evidences of North–South and
South–South trade patterns, the results well accord with our a priori expectations: (i) in
general, North–South and South–South technology diffusion embodied in traded goods have
a positive impact on TFP; (ii) conducive economic policies make the emerging economies
superior in the league in acquisition of spillover benefits, while the policy bottlenecks
roadblock further development of the poor economies in Africa or Asia; (iii) trade and
associated enabling factors are crucial for enrichment of recipients. The result supports the
conjecture that learning and effective assimilation—attributed to governance, R&D, institu-
tions, technological capability, human capital, skill—are important for harnessing North–South
transmission of knowledge. The model shows that policies targeting investments in R&D,
human and non-human capital, structural diversification are important for closing the dif-
ferences in income gap, but for economies lacking resources for such allocation policy
makers should also enable technology dissemination and assimilation for conditional conver-
gence.

Thus, as expected, a proper combination of local technology, socio-institutional structure and
human capital-induced skill intensity, and indigenous inventive capability (R&D) is sine-qua-non
for effective absorption of current vintage technology. For jumpstarting take-off, the LDCs need
appropriate economic policies focusing on these factors that can initiate the take-off into sustained
growth, without reversal of fortunes (Bluedorn et al., 2014). It depends not only on trade potential,
but also importantly on other factors like human capital, research capability or inventive capacity,
and institutions. These depend also on nurturing domestic usability and absorption capacity to
harness foreign-improvement in technology, which is couched in terms of socio-structural fea-
tures. According to OECD (2006b), ICT has an important role for facilitating interconnectedness
and convergence of diverse technological applications via spin-off effects, skills and compe-
tencies requisite for appropriating the benefits from ICT-use. Several evidences—for example,
in case of South Korea, Taiwan, Singapore, Japan and lately, the BRIC—exist supporting the
role of integrated economic policy in promoting these candidate factors for trade-led technol-
ogy assimilation and thus, avoiding MIT (Lee, 2013; Ojha, Pradhan, & Ghosh, 2013; Vivarelli,
2014).

The policy lesson is that boosting long-term investments in the spheres of human capital,
skill formation, technological infrastructure, better governance, institutions, science and technol-
ogy policy for innovation capture, and global trade and financial linkages matter immensely
for catching-up (Salvatore, 2004, 2007). The CGE result elicits the importance for catalyz-
ing TFP-improvement via R&D, education, enhancing better governance and development of
logistics infrastructure for making transition to a syndrome-free, policy regime. A compre-
hensive package of policy response beyond trade policy is required. Innovation policy goes
beyond the science and technology policy per se, as with global trade, these domestic fac-
tors could work aplomb for output and employment growth, and improving welfare. Thus,
the model provides a conceptual framework for public support policies in the evolution of
international competitiveness, technological innovativeness, and inclusiveness for economic
development.

G.G. Das / Journal of Policy Modeling 37 (2015) 65–91 89

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• Why some countries are slow in acquiring new technologies? A model of trade-led diffusion and absorption

1 Introduction and motivation
2 North–south trade-led technology flows and adoption factors: a bird’s eye (re-) view
3 Database and stylized facts: a macro lens view
3.1 Sectoral and regional dimensions
3.2 Stylized facts
4 Technology spillover and effective assimilation
4.1 Core model
4.2 Construction of parameters
4.3 Illustrative simulation design: productivity experiment
5 Selective simulation results
5.1 Macroeconomic impacts
5.2 Sector-wise effects
6 Conclusion and policy insights
References

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Procedia Computer Science 121 (2017) 503–510

1877-0509 © 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise Information

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10.1016/j.procs.2017.11.067

© 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
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Health and Social Care Information Systems and Technologies.

1877-0509

Available online at www.sciencedirect.com

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www.elsevier.com/locate/procedia

1877-0509 © 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise Information Systems /
ProjMAN – International Conference on Project MANagement / HCist – International Conference on Health and Social Care Information Systems
and Technologies.

CENTERIS – International Conference on ENTERprise Information Systems / ProjMAN –
International Conference on Project MANagement / HCist – International Conference on Health

and Social Care Information Systems and Technologies, CENTERIS / ProjMAN / HCist 2017, 8-10
November 2017, Barcelona, Spain

Rethinking Project Management Education: A Humanistic
Approach based on Design Thinking

Natalie Ewina*, Jo Luckb, Ritesh Chughc, Jacqueline Jarvisa
aSchool of Engineering and Technology, Central Queensland University, Brisbane 4017, Australia

bSchool of Engineering and Technology, Central Queensland University, Rockhampton 4701, Australia
cSchool of Engineering and Technology, Central Queensland University, Melbourne 3000, Australia

Abstract

This paper intends to provide an insight into the importance of design thinking as a novel concept in project management education.
While design thinking itself is not new, the role it can play in shaping future project managers can be vital. This narrative literature
review paper paints a picture of the increase in project failures and its reasons, andragogic considerations in project management
education, and how design thinking can help. Subsequent discussion highlights the need for design thinking in project education.
The paper’s conclusion is that it is indeed time to rethink project management education, especially through the incorporation of
design thinking to produce better project managers and reduce project failures in the future.

© 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
Information Systems / ProjMAN – International Conference on Project MANagement / HCist – International Conference on
Health and Social Care Information Systems and Technologies.

Keywords: Soft skills; design thinking; project failure; project management; education

* Corresponding author. Tel.: +61-07-3023-4250.
E-mail address: n.ewin@cqu.edu.au

Available online at www.sciencedirect.com
ScienceDirect
Procedia Computer Science 00 (2017) 000–000
www.elsevier.com/locate/procedia

1877-0509 © 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise Information Systems /
ProjMAN – International Conference on Project MANagement / HCist – International Conference on Health and Social Care Information Systems
and Technologies.
CENTERIS – International Conference on ENTERprise Information Systems / ProjMAN –
International Conference on Project MANagement / HCist – International Conference on Health
and Social Care Information Systems and Technologies, CENTERIS / ProjMAN / HCist 2017, 8-10
November 2017, Barcelona, Spain
Rethinking Project Management Education: A Humanistic
Approach based on Design Thinking
Natalie Ewina*, Jo Luckb, Ritesh Chughc, Jacqueline Jarvisa
aSchool of Engineering and Technology, Central Queensland University, Brisbane 4017, Australia
bSchool of Engineering and Technology, Central Queensland University, Rockhampton 4701, Australia
cSchool of Engineering and Technology, Central Queensland University, Melbourne 3000, Australia
Abstract
This paper intends to provide an insight into the importance of design thinking as a novel concept in project management education.
While design thinking itself is not new, the role it can play in shaping future project managers can be vital. This narrative literature
review paper paints a picture of the increase in project failures and its reasons, andragogic considerations in project management
education, and how design thinking can help. Subsequent discussion highlights the need for design thinking in project education.
The paper’s conclusion is that it is indeed time to rethink project management education, especially through the incorporation of
design thinking to produce better project managers and reduce project failures in the future.

© 2017 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
Information Systems / ProjMAN – International Conference on Project MANagement / HCist – International Conference on
Health and Social Care Information Systems and Technologies.
Keywords: Soft skills; design thinking; project failure; project management; education

* Corresponding author. Tel.: +61-07-3023-4250.
E-mail address: n.ewin@cqu.edu.au

http://crossmark.crossref.org/dialog/?doi=10.1016/j.procs.2017.11.067&domain=pdf

504 Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 2

1. Introduction

Traditionally, project failures have been attributed to human aspects of projects. Two of these humanistic issues
occur either at the beginning of the project life cycle, where the project is designed or at the end where the project is
transitioned into the business. There is a significant body of work that has examined the issues of transition and the
need for change management. When projects fail it has been commonly understood as project management failure,
however a number of forces may influence failure. It appears that traditional project management education does little
to prepare project managers for the reality of projects, particularly in equipping them with soft-skills1. One aspect is
the ability to engage with customers and users, to ensure that the project deliverables will address the customers’ real
needs. This means the project manager must in many cases question what the customer originally states as
requirements. The project manager, or those they employ to analyze the business need, must dig deeper, regardless of
whether they have a personal understanding of the users’ needs or not. Project management has borrowed from other
disciplines, such as business management, manufacturing, accountancy, and human resource management, to form the
modern body of knowledge. In this trend, project managers can borrow from design disciplines, in particular design
thinking, to improve the capacity of project managers to engage effectively with users; and ensure they are addressing
the key problem as defined by the user.

The purpose of this literature review paper is multifaceted, firstly, it highlights gaps in the project management

literature. It does not propose to provide a historical overview of project management. However, it does refer to the
historical issue of project failure that has yet to be resolved, and that contemporary literature suggests is increasing.
The primary purpose is to propose an argument in terms of how filling these gaps could potentially drive research into
methods to improve the likelihood of project managers achieving successful project outcomes. The review identified
a lack of literature discussing the use of design thinking in project management, with one of the first significant
additions by Ben Mahmoud-Jouini, Midler, and Silberzahn2. The literature review will argue that design thinking
should be utilized as a hybrid imaginative method for developing soft skills in project management students.
Introducing another process, such as design thinking, into the project management curriculum is thought provoking
and may be controversial in traditional project management circles. This stimulation of scholarly discussion is an
intended consequence of the narrative literature review3.

The paper is structured as follows. Section two outlines the research method adopted for this paper. The ensuing

literature review is subdivided into sections that cascade together to take the reader through the literature analyzing
the concepts of project failure, project management education and design thinking. These concepts flow in a narrative
which forms the basis for the proposed arguments and applied research. The significance of project failure in industry
is initially highlighted in section three. This leads to section four which argues the need to change the way project
management is taught with an emphasis being placed on a greater need for soft skills. Design thinking is proposed as
the mechanism to develop soft skills within project management curriculum in section five. A discussion of project
failure, project management education and design thinking is in section six. The final section concludes with an
argument to support further research into the effective inclusion of soft skills development via design thinking in
project management curriculum.

2. Research Method

Literature reviews can have multiple purposes, including provision of historical perspectives of a topic4. This
literature review considers important extant literature exploring the intersection between project management
education and design thinking and soft skills. The analysis of the literature reviewed in this paper is narrative in style
and is not meant as a systematic review. Narrative analysis enables the meaningful convergence of evidence across
diverse methodologies utilized in the existing literature5. Narrative reviews consist of critical analysis of the literature6,
are mainly descriptive and studies are chosen based on availability or author selection7. As is common with narrative
reviews, this paper does not seek to highlight the ways that literature selection may have influenced the findings.

Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510 505
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 2

1. Introduction
Traditionally, project failures have been attributed to human aspects of projects. Two of these humanistic issues
occur either at the beginning of the project life cycle, where the project is designed or at the end where the project is
transitioned into the business. There is a significant body of work that has examined the issues of transition and the
need for change management. When projects fail it has been commonly understood as project management failure,
however a number of forces may influence failure. It appears that traditional project management education does little
to prepare project managers for the reality of projects, particularly in equipping them with soft-skills1. One aspect is
the ability to engage with customers and users, to ensure that the project deliverables will address the customers’ real
needs. This means the project manager must in many cases question what the customer originally states as
requirements. The project manager, or those they employ to analyze the business need, must dig deeper, regardless of
whether they have a personal understanding of the users’ needs or not. Project management has borrowed from other
disciplines, such as business management, manufacturing, accountancy, and human resource management, to form the
modern body of knowledge. In this trend, project managers can borrow from design disciplines, in particular design
thinking, to improve the capacity of project managers to engage effectively with users; and ensure they are addressing
the key problem as defined by the user.

The purpose of this literature review paper is multifaceted, firstly, it highlights gaps in the project management
literature. It does not propose to provide a historical overview of project management. However, it does refer to the
historical issue of project failure that has yet to be resolved, and that contemporary literature suggests is increasing.
The primary purpose is to propose an argument in terms of how filling these gaps could potentially drive research into
methods to improve the likelihood of project managers achieving successful project outcomes. The review identified
a lack of literature discussing the use of design thinking in project management, with one of the first significant
additions by Ben Mahmoud-Jouini, Midler, and Silberzahn2. The literature review will argue that design thinking
should be utilized as a hybrid imaginative method for developing soft skills in project management students.
Introducing another process, such as design thinking, into the project management curriculum is thought provoking
and may be controversial in traditional project management circles. This stimulation of scholarly discussion is an
intended consequence of the narrative literature review3.

The paper is structured as follows. Section two outlines the research method adopted for this paper. The ensuing
literature review is subdivided into sections that cascade together to take the reader through the literature analyzing
the concepts of project failure, project management education and design thinking. These concepts flow in a narrative
which forms the basis for the proposed arguments and applied research. The significance of project failure in industry
is initially highlighted in section three. This leads to section four which argues the need to change the way project
management is taught with an emphasis being placed on a greater need for soft skills. Design thinking is proposed as
the mechanism to develop soft skills within project management curriculum in section five. A discussion of project
failure, project management education and design thinking is in section six. The final section concludes with an
argument to support further research into the effective inclusion of soft skills development via design thinking in
project management curriculum.
2. Research Method

Literature reviews can have multiple purposes, including provision of historical perspectives of a topic4. This
literature review considers important extant literature exploring the intersection between project management
education and design thinking and soft skills. The analysis of the literature reviewed in this paper is narrative in style
and is not meant as a systematic review. Narrative analysis enables the meaningful convergence of evidence across
diverse methodologies utilized in the existing literature5. Narrative reviews consist of critical analysis of the literature6,
are mainly descriptive and studies are chosen based on availability or author selection7. As is common with narrative
reviews, this paper does not seek to highlight the ways that literature selection may have influenced the findings.

Ewin et al. / Procedia Computer Science 00 (2017) 000–000 3

3. Project Failure

Despite improvements in project management tools and processes, project failure remains an eminent issue8 and
appears to be rising9-11. Sage, Dainty, and Brookes12 qualitatively examined the United Kingdom’s construction
industry through four orientations, the positivist, structural Marxist critique, interpretative narrative analysis and actor-
network theory. Project management tools developed for construction were found to be based on a positivist-
functionalist epistemology and these are developed to control the unpredictability of projects12. Providing a framework
to consider project failures more widely than the managerial positivist approach and beyond the hegemonic masculine
approach could bring to light differing constructs of project failure.

The proposition that failure is not always related to managerial issues which would be seen primarily in the

execution phase is supported by a study that examined the lessons learnt from an Information Technology company
in Israel over a twelve-month period13. It found that the majority, 51%, of lessons learned were situated in the planning
phase of the project with responsibilities, communication and resource planning and control being the most common
codes of lessons learned throughout the entire lifecycle 13. It is interesting to note that no lessons were identified from
the closing phase of the life cycle. Failures associated with the front and back ends of projects can in many cases be
traced back to issues relating to or stemming from people such as poor relationships between the project team and key
stakeholders14. At the front end, this may be attributed to gathering of requirements without empathetic inquiry,
without deep questioning to really understand the needs of the customer and users15. At the back end of the project,
which the Project Management Body of Knowledge (PMBOK) terms the closing phase16, the people factor is again a
significant reason for project failure. This back end failure may culminate from an optimism bias that the change
related to the project output will not significantly impact users.

Another lens through which project failure can be viewed is from the domain perspective. Besner and Hobbs 17

highlight the similarities and differences inherent in project management across domains and this is the basis of project
domain characterization. There is not a common set of agreed project domains in the project management industry.
Given the diversity of categorizations, research on the failures of projects is just as diverse, both in the paradigms and
methods used. When reviewing the literature, it can be difficult to compare findings of failure across the domains. Al-
Ahmad et al.18 reviewed the literature on project failure, highlighting common and sub-domain specific root causes.
By looking across the common sub-domains of information systems, web-based projects and healthcare informatics,
a taxonomy of six IT project failure root causes (project management, top management, technology, organizational,
complexity/size and process factors) was developed. This taxonomy was based on IT project failure and the
subdomains within IT. However, this taxonomy could prove valuable in terms of characterizing other project domains’
root causes of failure.

In construction, rework has been identified as a key cause of increases to costs and delays on projects19. Design

related changes are recognized as one of the significant root causes of rework which lead to increased cost and delays
characteristic of project failure20, 21. Design discrepancies was one of the top ten leading factors of project failure in
construction infrastructure projects22. In research and development (R&D) project failures, Link and Wright23 reported
that utilizing females as the principal for the project led to a decreased likelihood of failure. This demographic finding,
although prima facie, supports the assumption that the feminine traits reflected in effective soft skills and creativity
assists with project success. The limitation of this finding is that the study did not investigate the nature of this
correlation. The study did not investigate whether or not the female participants possessed the soft skills that are
espoused as feminine characteristics or whether other factors or a combination of factors were influencing the success.

In examining failure through the lens of project lifecycle or domain, the ambiguity of failure remains.

Differentiating between project management failure and project failure can be used as means to address this ambiguity.
Project management success has been described as the traditional practice of referencing project performance against
the constraints of cost, time, scope and quality 24-26. The preference of this view is likely due to the ease with defining
contractual performance against these criteria and the ability to obtain measures throughout and immediately at the
close of the project. By contrast, project success moves past the delivery of the project output to the client or business.
It describes whether the use of the project output has achieved the outcome the sponsor originally intended,

506 Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 4

measurement of which is more complicated and usually longitudinal. This is highlighted by the considerable issues
experienced with outcomes based funding models27. Projects should be conceptualized to achieve an outcome not
simply developing an output, thus focus on project success. However, project management education traditionally
focuses on project management success as opposed to project success.

4. Project Management Education

In 1999, the International Project Management Association (IPMA) initiated a number of Global Working Parties,
one of which was dedicated to Project Management education. The outcome of which highlighted the need to change
the way project management was taught. A criticism of the Global Working Party was that it did not provide direction
about how to improve the education, it simply stated the issues. Major issue categories identified were: commonality
and difference (in the use of terms and application of methodology), structure of the education process, practical
relevance of the education and training process, support of top management and other stakeholders and new trends in
project management education28. This acknowledgement of the inadequacy to prepare prospective project managers
through the traditional project management education has been shared in similar disciplines of science education and
engineering and technology education. Medical education has also struggled to keep pace with the changing
environment of the profession29. Attempts have been made in these disciplines to address the concern of traditional
educational methods and these may provide a framework for rethinking project management education.

When examining project failure and the need to change the curriculum of project management education, one of

the first considerations would be to review common texts used. Ewin30 suggested a large proportion of the reasons for
the success of the Queensland State Government Department of Communities in achieving extremely high
independently rated maturity rankings against the Portfolio, Program and Project Management Maturity Matrix
(P3M3) framework was due largely to factors not found in the textbooks. When comparing project management in
theory and the real world, it was found that project managers apply methodologies learnt from their previous projects’
experience31. These findings raise the concept of industry preparedness not sufficiently being covered by current
project management texts, but more by engaging in the lived experience of project management work.

Since the 1999 IPMA’s Global Working Party, the literature has recognized a need to incorporate soft skills into

project management education1 and executives now prioritize soft skills as key competencies required of project
managers32. Yet with this need for soft skills, project management, literature, textbooks and repositories continue to
focus on hard skills at the expense of information on soft skills33, 34. There are two leading international project
management guides, A Guide to the Project Management Body of Knowledge16 and Managing Successful Projects
with Prince235 which is generally referred to as Prince2 which is an acronym for ‘Projects in Controlled
Environments’. Prince2 was the third iteration of a text developed by the United Kingdom Government to address
common causes of project failures36. This text is used widely to teach project management yet it excludes soft skills,
refer to Table 135.

Table 1: Adaptation of Table 19.3 Comparison between PRINCE2 and a Body of Knowledge35, p.230
PRINCE2 Body of Knowledge
A project management method A broad collection of ‘good practices’ for project

management
Prescriptive Non-prescriptive
An integrated set of processes and themes (they are
not isolated silos that can be selectively applied)

Each topic area can be referred to in isolation from
others

Covers all project management roles Targeted at Project Managers
Does not cover interpersonal skills Covers interpersonal skills
References techniques Describes techniques

The Prince2 text is only one of the myriad of texts utilized for teaching project management and use of Prince2 as

a text example, will need to be supported by a wider sampling of current texts to further support the suggestion that
texts are lacking in providing adequate knowledge to support a humanistic approach to project management education.
This text supports a critique of the current state of project management education and the need to include other means
of improving soft skills for project management students.

Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510 507
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 4

measurement of which is more complicated and usually longitudinal. This is highlighted by the considerable issues
experienced with outcomes based funding models27. Projects should be conceptualized to achieve an outcome not
simply developing an output, thus focus on project success. However, project management education traditionally
focuses on project management success as opposed to project success.
4. Project Management Education
In 1999, the International Project Management Association (IPMA) initiated a number of Global Working Parties,
one of which was dedicated to Project Management education. The outcome of which highlighted the need to change
the way project management was taught. A criticism of the Global Working Party was that it did not provide direction
about how to improve the education, it simply stated the issues. Major issue categories identified were: commonality
and difference (in the use of terms and application of methodology), structure of the education process, practical
relevance of the education and training process, support of top management and other stakeholders and new trends in
project management education28. This acknowledgement of the inadequacy to prepare prospective project managers
through the traditional project management education has been shared in similar disciplines of science education and
engineering and technology education. Medical education has also struggled to keep pace with the changing
environment of the profession29. Attempts have been made in these disciplines to address the concern of traditional
educational methods and these may provide a framework for rethinking project management education.

When examining project failure and the need to change the curriculum of project management education, one of
the first considerations would be to review common texts used. Ewin30 suggested a large proportion of the reasons for
the success of the Queensland State Government Department of Communities in achieving extremely high
independently rated maturity rankings against the Portfolio, Program and Project Management Maturity Matrix
(P3M3) framework was due largely to factors not found in the textbooks. When comparing project management in
theory and the real world, it was found that project managers apply methodologies learnt from their previous projects’
experience31. These findings raise the concept of industry preparedness not sufficiently being covered by current
project management texts, but more by engaging in the lived experience of project management work.

Since the 1999 IPMA’s Global Working Party, the literature has recognized a need to incorporate soft skills into
project management education1 and executives now prioritize soft skills as key competencies required of project
managers32. Yet with this need for soft skills, project management, literature, textbooks and repositories continue to
focus on hard skills at the expense of information on soft skills33, 34. There are two leading international project
management guides, A Guide to the Project Management Body of Knowledge16 and Managing Successful Projects
with Prince235 which is generally referred to as Prince2 which is an acronym for ‘Projects in Controlled
Environments’. Prince2 was the third iteration of a text developed by the United Kingdom Government to address
common causes of project failures36. This text is used widely to teach project management yet it excludes soft skills,
refer to Table 135.

Table 1: Adaptation of Table 19.3 Comparison between PRINCE2 and a Body of Knowledge35, p.230
PRINCE2 Body of Knowledge
A project management method A broad collection of ‘good practices’ for project
management
Prescriptive Non-prescriptive
An integrated set of processes and themes (they are
not isolated silos that can be selectively applied)
Each topic area can be referred to in isolation from
others
Covers all project management roles Targeted at Project Managers
Does not cover interpersonal skills Covers interpersonal skills
References techniques Describes techniques

The Prince2 text is only one of the myriad of texts utilized for teaching project management and use of Prince2 as

a text example, will need to be supported by a wider sampling of current texts to further support the suggestion that
texts are lacking in providing adequate knowledge to support a humanistic approach to project management education.
This text supports a critique of the current state of project management education and the need to include other means
of improving soft skills for project management students.

Ewin et al. / Procedia Computer Science 00 (2017) 000–000 5

The second text considered was ‘A Guide to the Project Management Body of Knowledge’16 provides guidance on

project management concepts and their application. The fifth edition highlights the need for effective project managers
to have a balance of technical, interpersonal and conceptual skills. The guide is 598 pages in length with approximately
three pages of information on interpersonal skills, which is spaced in small paragraphs throughout the text15. Similarly
to Prince2, PMBOK supported the critique that the current state of project management education, was too focused
on hard skills and requires more emphasis on the development of soft skills. This was supported by Pant and Baroudi
1 who explored the need for project managers to have both hard and soft skills and how traditional project management
education was lacking in developing soft skills. The lack of coverage of soft skills in PMBOK was highlighted and
tertiary education in project management critiqued, with emotional intelligence being discussed as an essential soft
skill not being developed.

5. Design Thinking

Design thinking allows “interactive understandings that are both analytic and experiential”37, p. 294. People engaging
in design thinking, demonstrate a number of common attributes including framing, which encompasses the ability to
relate new situations to past experience, leveraging both convergent and divergent thinking, and iteration38. The
feminine attributes of imagination and intuition are attributed to divergent thinking, the purpose of which is to open
the problem space to new considerations39. Convergent thinking takes on the masculine attributes of logical and
rational thought and is used in the narrowing of solution options39. Table 2 highlights the three attributes of design
thinking which have been identified as empathy, invention and iteration supported by three fundamental design
principles.40, pp.16-18.

Table 2: Attributes and principles of design thinking. Adapted from Liedtka and Ogilvie40, pp. 16-18
Attribute Principle
Empathy Aim of developing a deep connection with those you serve.
Invention Do not let preconceived limitations dictate your possibilities.
Iteration Pursue opportunities not perfection

The importance of utilizing the attributes and principles of design thinking is especially relevant to project

managers who are faced with clients that are trying to solve ill-defined or wicked problems. “The past model of
societal governance based on increasingly specific and numerous silos of deep expertise no longer appears fit for its
purpose.”37, p.6. Teal37 highlighted that critical thinking skills in students tend to be developed in highly structured
ways, similar to the hegemonic masculine nature of science education described by Hildebrand41. Teal37 further
highlights that this structured skill development does not reflect real world problems that are usually ill-defined37.
Renard38 suggests that developing design thinking in higher education students can enable these students to enter their
chosen professions with the mental agility to work comfortably in undefined problem spaces and bring about
meaningful change. Students’ experience in utilising the Hong Kong Design Institute’s 3EM framework in design
thinking projects enabled a shift in self-reported empathy. The 3EMs framework emphasises empathy, embrace and
empowerment as catalysts for humanistic change. “This project opened up our minds and was the first time we had
looked at design from a user’s point of view” 42. A limitation of Lam and Sin Suen42 however, was the limited reporting
of results and the homogeneity of the student cohort and teachers, mainly from design and visual arts departments.

Teaching design can be framed in two ways, firstly from the perspective of attaining specialist design skills, such

as graphic design and secondly the generic application to non-design contexts43. Design thinking, embodies the generic
skills44 and moves away from traditional andragogic approaches associated with project management education
towards a more hybrid imaginative approach, which may be uncomfortable for students24. Providing structure to
design thinking, both in terms of resources and delivery can assist students to be more comfortable with this
andragogic shift and engage with the new concepts and practices. Multiple options to incorporate design thinking into
the curriculum exist, from including infographics into lectures slides for an introduction to the concept, short
workshops or online courses, to a full semester design thinking course. Incremental addition of high level
understanding of design thinking to already existing units can garner what level of interest, uptake and support there

508 Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 6

is for offering training and for implementing concepts and strategies into curriculum. This could include incorporating
infographics in course material, an introduction as a single week topic in a semester course and short introductory
videos as viable options to raise awareness of design.

The Stanford University design school (d.school) has the Virtual Crash Course that takes participants through
design thinking in ninety minutes45. The d.school describes the design thinking in five steps: empathise, define, ideate,
prototype and test45. Students gain experience with aspects of design thinking such as gaining an understanding of the
customers need through empathetic enquiry and prototyping. For tertiary education institutions, this course provides
the opportunity for collaboration or at least a starting point to evaluate the efficiency and effectiveness of participatory
introduction sessions to design thinking. Tertiary offerings usually form part of a larger program of study however
more are being offered as standalone. Resources that can support longer units of study in design thinking should
provide the structure appropriate for the associated level of qualification and also ease of use both from the student
and the instructional designers’ perspective. Liedtka and Ogilvie40 define design thinking, why it is important and
provide a design thinking toolkit to assist application which can be incorporated into courseware offering. The
framework consists of four questions, what is, what if, what wows, and what works, which drive the design thinking
process. The process is supported by ten tools; visualisation, journey mapping, value chain analysis, mind mapping,
brainstorming, concept development, assumption testing, rapid prototyping, customer co-creation, and learning
launch.

Project management students and professionals do not need to perform full design thinking cycles in projects to

gain value from design thinking training. It is more likely that value will be gained from reflecting on the concepts
and principles incorporated in the design process and how they could be utilised to improve outcomes in their specific
work context. Whether it be empathy, iteration, showing work early, being more comfortable with negative feedback
and so forth, there are many such concepts that can provide potential opportunities for improvement.

6. Discussion

There is a consensus in the research of the systemic failure of projects and that there is a need to change how
prospective project managers are educated. What changes to the teaching practices are required is not clear. However,
there is agreement that there needs to be more emphasis placed on soft skills. This has been addressed somewhat by
offering cross disciplinary elective subjects such as communication. However, most of the project management
curriculum and supporting texts are based in the hegemonic tradition. Leading texts such as PMBOK only provide a
glancing reference to soft skills whereas others such as Prince2 explicitly exclude the topic.

The literature discussing design thinking within educational contexts emphasizes soft skills, particularly empathy,

collaboration, creativity, and non-linear problem solving46.Students found this emphasis on soft skills uncomfortable46,
however repeated exposure was shown to minimise this47. Design thinking moves away from the hegemonic tradition
embraced by project management to a more hybrid imaginative approach. As project management has borrowed from
disciplines of management and organizational development, so it can from design. It has been suggested that design
thinking can contribute to innovation in projects, improving exploration, stakeholder involvement and strategy
formation2. Although advocating the use of design thinking for innovation projects2, and highlighting the process
emphasis on soft skills, there remains a gap in the literature considering such a discipline as a mechanism for teaching
soft skills to project management students.

With project failure reported as increasing and a recognition of the need to change project management education,

further research is needed to examine how to more effectively include soft skills into the project management
curriculum.

7. Conclusion

The premise that an increased emphasis on soft skills is required to improve the success of projects is recognized
in the literature. However, there is a lack of evidence of how to best develop soft skills within the context of project

Natalie Ewin et al. / Procedia Computer Science 121 (2017) 503–510 509
Ewin et al. / Procedia Computer Science 00 (2017) 000–000 6

is for offering training and for implementing concepts and strategies into curriculum. This could include incorporating
infographics in course material, an introduction as a single week topic in a semester course and short introductory
videos as viable options to raise awareness of design.
The Stanford University design school (d.school) has the Virtual Crash Course that takes participants through
design thinking in ninety minutes45. The d.school describes the design thinking in five steps: empathise, define, ideate,
prototype and test45. Students gain experience with aspects of design thinking such as gaining an understanding of the
customers need through empathetic enquiry and prototyping. For tertiary education institutions, this course provides
the opportunity for collaboration or at least a starting point to evaluate the efficiency and effectiveness of participatory
introduction sessions to design thinking. Tertiary offerings usually form part of a larger program of study however
more are being offered as standalone. Resources that can support longer units of study in design thinking should
provide the structure appropriate for the associated level of qualification and also ease of use both from the student
and the instructional designers’ perspective. Liedtka and Ogilvie40 define design thinking, why it is important and
provide a design thinking toolkit to assist application which can be incorporated into courseware offering. The
framework consists of four questions, what is, what if, what wows, and what works, which drive the design thinking
process. The process is supported by ten tools; visualisation, journey mapping, value chain analysis, mind mapping,
brainstorming, concept development, assumption testing, rapid prototyping, customer co-creation, and learning
launch.

Project management students and professionals do not need to perform full design thinking cycles in projects to
gain value from design thinking training. It is more likely that value will be gained from reflecting on the concepts
and principles incorporated in the design process and how they could be utilised to improve outcomes in their specific
work context. Whether it be empathy, iteration, showing work early, being more comfortable with negative feedback
and so forth, there are many such concepts that can provide potential opportunities for improvement.
6. Discussion
There is a consensus in the research of the systemic failure of projects and that there is a need to change how
prospective project managers are educated. What changes to the teaching practices are required is not clear. However,
there is agreement that there needs to be more emphasis placed on soft skills. This has been addressed somewhat by
offering cross disciplinary elective subjects such as communication. However, most of the project management
curriculum and supporting texts are based in the hegemonic tradition. Leading texts such as PMBOK only provide a
glancing reference to soft skills whereas others such as Prince2 explicitly exclude the topic.

The literature discussing design thinking within educational contexts emphasizes soft skills, particularly empathy,
collaboration, creativity, and non-linear problem solving46.Students found this emphasis on soft skills uncomfortable46,
however repeated exposure was shown to minimise this47. Design thinking moves away from the hegemonic tradition
embraced by project management to a more hybrid imaginative approach. As project management has borrowed from
disciplines of management and organizational development, so it can from design. It has been suggested that design
thinking can contribute to innovation in projects, improving exploration, stakeholder involvement and strategy
formation2. Although advocating the use of design thinking for innovation projects2, and highlighting the process
emphasis on soft skills, there remains a gap in the literature considering such a discipline as a mechanism for teaching
soft skills to project management students.

With project failure reported as increasing and a recognition of the need to change project management education,
further research is needed to examine how to more effectively include soft skills into the project management
curriculum.
7. Conclusion

The premise that an increased emphasis on soft skills is required to improve the success of projects is recognized
in the literature. However, there is a lack of evidence of how to best develop soft skills within the context of project

Ewin et al. / Procedia Computer Science 00 (2017) 000–000 7

management education. The design thinking process highlights the importance of soft skills with the development of
creative solutions to problems or opportunities. Project management looks to design, develop and implement solutions,
yet projects fail and this trend is increasing. A number of reasons for project failure have been linked to poor
relationships between the project team and key stakeholders. Design thinking may be able to address the poor
relational issues that have been reported as significant in project failure, through developing soft skills in project
management practitioners and particularly by embedding it in project management curriculum.

A limitation of this literature review is that it is narrative and does not purport to review all the literature on the

concepts discussed. The purpose of the review is to look at the intersection of these concepts, identify gaps in the
literature and suggest future research. A further limitation is the focus on a single mechanism for developing empathy,
being Design Thinking. Future studies can look at the role of empathetic skills to reduce project failure.

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Available online at www.sciencedirect.com

ScienceDirect

www.elsevier.com/locate/ijproman
International Journal of Project Management 33 (2015) 41–52

Project managers and the journey from good to great: The benefits
of investment in project management training and education

Jalal Ramazani ⁎, George Jergeas 1

Department of Civil Engineering, University of Calgary, 2500 University Drive NW, Calgary, Alberta T2N 1N4, Canada

Received 29 September 2013; received in revised form 10 February 2014; accepted 27 March 2014
Available online 10 May 2014

Abstract

There is a gap between what education providers are offering and what is needed to deal with projects in today’s complex work environment. This
paper explores how education and training institutions can educate and prepare great project managers for the future by evaluating project management
development from the perspective of working project managers. The authors report on a qualitative study of project managers working in the oil an

d

gas sector in Calgary. This paper formulates three main areas which educational institutions should consider in developing and preparing future
project managers: 1) developing critical thinking for dealing with complexity, 2) developing softer parameters of managing projects, especiall

y

interpersonal skills and leadership as opposed to just technical skills, and 3) preparing project managers to be engaged within the context of real life
projects. The authors argue that the education and training systems must do more to prepare project managers on their journey from good to great.
© 2014 Elsevier Ltd. APM and IPMA. All rights reserved.

Keywords: Project management education; Project management training and development

1. Introduction

Projects play an important role in modern enterprises. In
an increasing number of industries, project-based systems are
complementing or even replacing traditional functional and
divisional structures (Davies et al., 2011). According to the
Project Management Institution (PMI, 2013), between 2010
and 2020, 15.7 million new project management roles will be
created globally. Along with job growth, there will be a significant
increase in the economic footprint of the profession (PMI,
2013). As project management becomes more central in executing
projects, effective education and talent management for those
in charge of managing projects is vital for organizational com-
petitiveness. This is one of the main reasons that graduates of
university project management programs have been in high

⁎ Corresponding author. Tel.: +1 403 801 1732.
E-mail addresses: jramazan@ucalgary.ca (J. Ramazani),

jergeas@ucalgary.ca (G. Jergeas).
1 Tel.: +1 403 220 8135.

http://dx.doi.org/10.1016/j.ijproman.2014.03.012
0263-7863/00/© 2014 Elsevier Ltd. APM and IPMA. All rights reserved.

demand in all types of industries. At many universities and
business schools, project management is an important part of the
engineering, MBA and executive education syllabi.

Along with increasing the importance of the projects and
project-based organizations, industries are wrestling with signif-
icant challenges in managing their projects yet projects continue
to fail at an astonishing rate. In many projects, the expected
performance of a project management practitioner, group of
project managers, or project management office is less than the
actual perceived performance (Hammoud, 2008; Jergeas, 2008;
Jergeas and Ruwanpura, 2009; Pomfret, 2008; Stanley and Uden,
2013; Tabernik, 2009). For example, according to the Chaos
Report of 2009, 68% of all projects end up failing (Johnson, 2009).
Researchers believe that to overcome challenges in managing
projects, fresh approaches to practitioner development are needed
(Atkinson, 2008; Córdoba and Piki, 2012; Egginton, 2012; Reif
and Mitri, 2005; Rolstadås et al., 2011; Winter et al., 2006).
Teaching and learning project management has become the focus
of numerous research proposals, debates and studies. The fact
that the current approaches of educating and training project
management professionals do not meet the need of modern

http://crossmark.crossref.org/dialog/?doi=10.1016/j.ijproman.2014.03.012&domain=pdf

mailto:jramazan@ucalgary.ca

mailto:jergeas@ucalgary.ca

http://dx.doi.org/10.1016/j.ijproman.2014.03.012

http://dx.doi.org/10.1016/j.ijproman.2014.03.012

http://dx.doi.org/10.1016/j.ijproman.2014.03.012

http://dx.doi.org/10.1016/j.ijproman.2014.03.012

42 J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

enterprises is now well accepted (Córdoba and Piki, 2012;
Ojiako et al., 2011). In this paper, we first briefly comment on
project management education and training to provide back-
ground context for the paper. Next we look at the experiences
of practicing project managers to identify what changes are
necessary to further improve the quality of project management
education.

1.1. Challenges in educating and training project managers

Interest in the education and development of project managers
is growing extensively (Egginton, 2012; Rolstadås et al., 2011;
Winter et al., 2006). Realizing the need for management
development and capability integration in projects, industries
have started to invest significantly in the area of project
management development (Winter et al., 2006). The expenses
devoted to training, certifications and project methodologies are
huge; however, the failure rate is still high and the gaps between
expected and actual results are still there (Starkweather and
Stevenson, 2011). It seems that current education does not
adequately prepare managers to deal with the complex realities
of the real world (Winter et al., 2006). Thomas and Mengel
(2008) argued that current project management education is
not suited at all to prepare project managers for managing
projects. Crawford (2005) and Starkweather and Stevenson
(2011) explained that there is little or no empirical evidences
that certified project managers with the popular methods of
project education are any more successful than non-certified
project managers. Similar ideas are discussed by Seidler-de
Alwis and Hartmann (2008); who believe that the traditional
approach to educating project managers has relied substantial-
ly on throwing a lot of data at the human mind and hoping it
will generate the right programs and processed data. Similarly,
Papke-Shields et al. (2010) found that project management
practices that make a difference may not be the most frequently
used. In fact, project management training and education fail in
preparing project management students to deal with the increasing
complexity that they face in today’s working environment and
make little use of existing innovative learning environments and
techniques (Thomas and Mengel, 2008). Researchers believe that
it is time to review our understanding of project management
education and reflect upon how we develop project managers to
deal with the increasing level of complexity and uncertainty in
project environments (Winter et al., 2006).

Clearly, there appears to be a gap between what education
providers are offering and what is needed to deal with projects
in today’s work environment. Accordingly, this research study
explores how education and training institutions can prepare
project managers for the future by evaluating project management
development from the perspective of working project managers.
The authors argue that understanding the experience of project
managers will enable institutions to address educational factors
more effectively in the future. In this research we investigated
the role of both academic education for project managers at
universities and also corporate training and development for
improving the role of practicing project managers. The goal is to
identify what changes are necessary to further improve the

quality of project management training and education. Our
intention is to contribute both to the debate about the future of
project management education for students, and corporate training
and developments for working project managers. The authors
subsequently discuss practical implications.

2. Methodology

2.1. Questions

This study aims to answer the following question: How can
project management education and training turn technical
engineers into great project managers? What more must the
education system do to help good project managers evolve to
become great?

2.2. Respondents

The study targeted project managers and project engineers
working in the oil and gas sector in Calgary who were able to
discuss their experiences in detail. Participants were selected
using a combination of two sampling procedures. The study
began with convenience sampling; informants were first contacted
by telephone or email, informed of the nature and purpose of
the study and invited to participate. Those who indicated interest
were asked to arrange a time for an interview, which would last
approximately one hour. After data was generated from the first
two interviews, the process of additional sampling was guided
by the principles of theoretical sampling (Glaser, 2008) to ensure
that only those project managers who were active and also had
responsibilities in a project environment were included. Table 1
shows the demographic characteristics of the participants in this
study.

2.3. Analysis

Applying the grounded theory approach and constant compar-
ison method of analysis (Glaser and Strauss, 1967), the data was
collected and analyzed simultaneously. Using the principles of
theoretical sampling, it was confirmed that all interviewees had
in-depth insight about the project. Analysis of the data started with
the first two interviews, aided by standard software for qualitative
analysis, namely NVivo. A group of twenty nine project managers
were interviewed, composed of 8 females and 21 males. After
analyzing data the result was reviewed with a group of project
managers using a focus group. In this phase, a small group of
participants gathered to discuss the results of the interview analysis
under the guidance of a facilitator (researcher) who often played a
detached role (Klenke, 2008). Three focus groups were held with
thirteen project managers.

2.4. Validation

To increase credibility of results, information-rich cases
were selected for in-depth study as well as different sites for
maximum variability (Giacomini and Cook, 2000; Mays and
Pope, 2000; Patton, 2002).

Table 1
Demographic characteristics of the participants.

Characteristic Value Frequency Percent

Gender Male 21 72
Female 8 28

Education Bachelor 18 62
Master 8 28
PhD 3 10

Job level Project manager 16 55
Senior project manager 4 14
Project engineer 9 31

Age group 30–34 2 7
35–39 1 3
40–44 5 17
45–49 9 31
50–54 4 14
55–59 5 17
60–64 3 10

Years of experience 1–5 0 0
5–10 2 7
10–15 5 17
15–20 9 31
20–25 9 31
25–30 4 14

43J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

The study also used maximum variation in order to identify
important common patterns (Maycut and och Morehouse,
1994). We also attempted to overcome one of the downsides
of theoretical sampling, limited variation between chains of
similar informants, by actively aiming to interview project
practitioners with diverse roles and positions. Triangulation for
this study was established through focus groups supplemented by
member checking methodologies. While the focus group sessions
allowed for the verifying and mapping of critical findings,
supplementing the focus groups with member checking enhanced
the depth of inquiry (Guba & Lincoln, 1994).

This study is subject to the general limitations of gen-
eralizability associated with qualitative studies. However, as
McCracken (1988) explained, the issue of qualitative inquiry is
not one of generalizability. The purpose is not to discover how
many people share a certain characteristic. The purpose is to
gain access to categories and assumptions. In this study like
other qualitative inquiries, reference is made to analytic and not
statistical generalizations (Pandit, 1996). A second issue is that
the sample was limited to the geographic boundaries of the
Calgary oil and gas sector, it is important to recognize that a
potential limitation of the research is that the experiences of
participants may be shaped by the culture of the region,
containing unique characteristics of organizations that may not
be representative of experiences in other parts or other sectors.

3. Findings

Selected data are presented in this article to answer the
research question: How can project management education and
training turn technical engineers into project managers? What
more must the education system do to help good project
managers evolve to become great? The findings of this study
are presented in the following sub-sections.

3.1. Complexity of managing projects

Interviewees believed that managing projects is getting more
complex every year. The speed of change looks significantly
faster than ever and project managers need to be able to rapidly
respond to changing economic, social and technical situations.

“Today there are more unknowns in each project. There are a
lot of unexpected changes and along with that is a factor
comparing when we were just doing one project at a time to
when we are doing six at a time. And when we are doing six
at a time, there is more and more people involved and the
complexity of the schedule in that job is more and the job is
getting complicated. You interact with lots, and lots of different
groups, so when things start changing, they have huge effects,
dramatic effects, and they can affect multiple projects because
they are changing all the time.” (Interviewee 4)

Interviewees observed that newly trained project managers
were often unprepared for the complexity of managing projects.
They believed that the challenge of how projects can be better
managed in complex situations should be brought into the
educational domain. The competency to work in increasingly
dynamic and complex environments should be developed
during the education of project management students. It can
reduce the complexity shocks and surprises when they take
charge as future managers.

“…as engineers, part of it is that we’re not trained to deal
with this level of complexity, we didn’t do enough economic
modeling, simulation, in-depth practices and we cannot. We
didn’t expect this much difficulty, we don’t look at that,
that’s uncomfortable for us so we don’t pay attention to it
enough.” (Interviewee 14)

Interviewees mentioned that much of the training provided
for project managers is comparable to giving them a tool box
without helping them to understand the application of those
tools. As a result, practitioners do not know how to use their
tools in dynamic environments. Managing projects is getting
more complex, therefore it is necessary to teach managers how
to reflect on complexities instead of merely focusing on
training in some generic tool.

“The training that I’m talking about is not a tool box training
where you are given tools. You’re not given tools to apply
them and to show your skills with the tools or whatever, you
know, it’s not like that. What I’m talking about is training that
massages the brain and your understanding, and how do you
apply this? The moment you walk out the door of the training
institution, it’s with you. So the moment you go back to work
its already built in you and it always comes naturally, the
application of performance is natural.” (Interviewee 6)

They explained that the education systems do not provide
enough preparation on learning to reflect upon what is happening
around them. They believed that some practitioners leave the

44 J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

educational institutions and enter the workforce with the mindset
that they already have the answers to all possible questions. They
come to the workplace with a “one size fits all” approach, with the
belief that the style or procedure they learned in their learning
institutions fits in all related applications and situations. This is
the reason that they are not able to reflect on the different
situations and make good decisions. They need to learn how to
act in the middle of complex and chaotic situations by choosing
the right technique at the right time.

“The education system should place a greater emphasis on
problem solving and critical reasoning than on the regurgita-
tion of information. Ability to recite a textbook or lecture has
not aided me in my professional career and I am sure that it
won’t help others… Universities should encourage students to
be open minded and understand all the different ways to
approach becoming a good manager.” (Interviewee 12)

Interviewees asserted that managing a project requires
different expertise to be integrated. They explained that in
most workplaces it is expected for project managers to
demonstrate a mixture of skills including technical project
management competencies, interpersonal, and leadership be-
haviors. So this necessary mixture of skills should be supported
by project management education.

“Successful managers should possess many qualities.
Education systems should encourage the growth and
nurturing of skills such as interpersonal relationships, face
to face communication skills, decision making skills (such
as how to approach and react to different types of conflicts/
situations), and opportunities to practice using these
qualities with different types of people in different types of
environments. This will help students prepare for situations
in the real world, in which they will often have to use their
own judgment, and vary their behaviors due to ever-
changing conditions and environments.” (Interviewee 23)

3.2. Developing project managers’ competencies

The data showed that different types of knowledge and skills
are required for project managers. Based on the interviews, the
skills have been divided into two categories: technical knowledge
and skills, including project development and analysis, planning
and so on. The second category is the leading one which includes
leadership skills such as: communication, motivating project
teams, managing relationships, enthusing passion and commit-
ment in project members; team working skills and understanding
the project context.

3.2.1. Leadership competencies required for project managers
Interviewees indicated concerns about leadership and

management skills for managing projects. They observed that
leadership and management capabilities are essential for
effective project management. About two-thirds of the

interviewees talked about skill deficiencies in the area of
leadership.

“If you don’t have a well-rounded leader, if you have one
that’s primarily focused on the technical per se, then it may
be very difficult to deliver the project success that the project
is expected to deliver.” (Interviewee 7)

They explained that many newly trained project managers
were not familiar enough with the application of variety
leadership abilities, such as communicating effectively, inspiring
and motivating project groups. However, they explained that
putting emphasis on leadership training does not mean everybody
is going to be a great leader as a result. They discussed the role of
individual differences such as personality and abilities:

“You can provide the opportunities for the training to project
managers. Only a portion of them will become very good
leaders. Just like in business, just like in medicine, just like in
anything else there will be a small portion that will rise to the
top and do really well. There will also be some people in the
middle and some people that are technically capable but will
not be inspirational, will not be able to lead people and I think
that part of it, what we have missed in our industries is that
we’ve focused on: you have to have an engineering degree to
be able to be a project manager and I don’t think that’s the case
because as a project manager you do need technical back-
ground in our industry but I don’t think you need to be as much
an engineer as you do need to be a business man, a leader, and
we could probably get better project managers if we looked in
with the technologist theory and we we’re able to bring guys in
who have all those backgrounds.” (Interviewee 28)

When they were asked further about leadership competen-
cies, they explained some necessary management skills
including problem solving; influencing people, persuasive
public speaking, effectively organizing and running a meeting,
fostering employees’ development, evaluating their perfor-
mance, and communicating effectively. There was a general
sense among the respondents that education programs do not
provide enough training in these skills. They explained that the
education system should go beyond merely providing technical
skills for project managers.

“People skills are the most important role of a project manager
if you don’t read someone very quickly and communicate
effectively, then that person is really uncomfortable and he
won’t really succeed.” (Interviewee 8)

3.2.2. Team working competencies required for project managers
Interviewees emphasized the importance of project teams, and

how they develop as a way to help projects move towards project
completion. Hence they explained that the education system should
prepare project managers for developing and managing teams.

“Continued use of group projects, allows students to take on
many roles throughout their degree which leads to greater

45J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

understanding of types of people and how to work best with
them.” (Interviewee 11)

“More practical applications of the theories should be
learned in university courses along with group activities
and projects where students may encounter those real life
problems or situations and have the opportunity to recognize
them and perhaps apply their knowledge.” (Interviewee 18)

In interviewees’ experiences, the lack of leadership skills
along with a lack of the ability to work in a team may be
remedied through reevaluation of the education system for
project managers and also over time, with mentoring, collegial
support, continuing skills development and practice monitoring.

3.3. The importance of engaging with context in project
management education

Managers interviewed elaborated upon the importance of
the context of managing projects. They explained that the
education system does not prepare managers to be engaged
within the context of projects. They recommended a fresh
approach to teach some aspects of project management in real
settings, so that managers will be able to develop a better
understanding of the project context.

“I think hands on experience puts learning into perspective if
you do more situations where you can “act out” different
scenarios, it would help give students an idea of what to
expect and how it could be handled.” (Interviewee 14)

Interviewers emphasized a disconnect between what they have
learned at universities and training institutions and requirements
for managing projects. They explained that in educational institu-
tions, some generic knowledge on project management is offered,
while the practical ones are gained in practice-related settings.
The dilemma is that these two types of knowledge are dis-
connected from each other. They urged the importance of having
a connection between these two types of managerial knowledge.

“They need to teach more practical approaches to things
rather than focusing solely on theoretical work. This is a big
complaint that I have heard in the corporate world about
university grads.” (Interviewee 23)

“I didn’t study planning and risk analysis well, but I did pass
all my exams when I was at university. By now I know how
stupid I was, but at the time I didn’t care, I was just not
interested. Now I regret not having studied harder for
important topics. There should be a chance for students to
practice and exercise important concepts before entering the
professional world. Sometimes inviting experts coming to
the class as guest speakers could be useful to see how they
go about their daily activities.” (Interviewee 15)

“There was a big difference between the theory and playing
a part in the real world, where things actually happen. Then

you realize what is going on: it is about real things, not
stupid theoretical facts anymore; real project which could
fail. This is the reason that I believe students should learn in
the same environment they are to apply what they learned.”
(Interviewee 21)

3.4. The importance of continuing skills development for
project managers

The data shows the importance of continuing skills develop-
ment for current practitioners.

“I am talking about those people that are already in the
industries and already have long years of experience and
they are good but not ideal and you want to improve them.
Yes you can funnel them back through course designs in
many management institutions around the globe, and these
courses are designed specifically for project management
roles and planning phases, scheduling, change management,
removing a bad personnel, how to hide yourself and how to
tell others what they are doing wrong or whatever. From
there then they are trying to polish and more or less remove
any wrinkles in your capabilities and try to polish you a bit
more and you come out of there knowing that you have go
back, knowing that you have weaknesses, and you have
differences and you have also learned a lot of techniques such
as management of change and stuff like that.” (Interviewee 6)

They emphasized the need of managers and practitioners to
constantly update their knowledge and understanding within
their own fields.

“When new engineers or managers join the group, sometimes
you don’t know whether they don’t know or whether they
have forgotten, but you’ll have to repeat what is needed.”
(Interviewee 18)

The interviewees explained that some project managers view
PMI certification as the end goal of project management
development rather than the starting point. So they don’t see
significant need for further learning and development.

“We need continue training for our managers. I usually try to
bring that issue up at the beginning of the project because
people need to understand the balance. In our industry,
because engineers are so technical, people tend to focus
more on the schedule and cost. So the prime is to try and
train people or to try and focus on not so much the technical
parts of a project’s execution. Some of them take PMI
certification and then believe that they know everything, it is
hard to convince them that this is just the beginning.”
(Interviewee 5)

“We all need training. It doesn’t matter how you do it. What
we’ve done in our company is pull the guy out from the job,
take him away for a few weeks, and give him some effective
project management, some effective courses; courses that

46 J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

take the manager and even sometimes owners and funnel
them though a course designed for them to learn many of
these skills, whether its project management or regular
management.” (Interviewee 6)

4. Discussion

This research study explores how educational institutions
and training efforts can educate and prepare project managers
for the future by evaluating project management development
from the perspective of working project managers. The authors
try to identify what changes are necessary to further improve
the quality of project management education and project
management development.

The result shows that educating project managers and
developing their competencies should be viewed as a multi-
dimensional and complex process. Interviewees identified three
main areas which both academic institutions and training agencies
should consider in educating and training project managers:
developing critical thinking for dealing with complexity, creating
softer parameters of managing projects, especially interpersonal
skills as opposed to just technical skills, and preparing project
managers to be engaged within the context of real life projects.
These factors will be discussed in more detail.

4.1. Developing critical thinking for dealing with complexity

Managing projects is getting more complex every year. This
study shows that project managers are experiencing increasingly
dynamic and complex environments. The speed of change looks
significantly faster than ever and project managers need to be able
to rapidly respond to changing technical, economic, and legal
situations. Facing these challenges is not a transition, it is today’s
reality of managing projects, and it is here to stay. The rapid
expansion of knowledge, information, and sophisticated technol-
ogy also has placed greater demands on project practitioners to
adapt and learn quickly on the job. The skills of many of today’s
students fall short of what is needed for future occupations.
Overcoming this challenge requires different expertise to be
integrated.

As interviewees discussed, there is a need to realize that a
one-size-fits-all approach to project delivery is not practical
anymore. The high level of complexity of projects creates a
need to develop reflective and critical thinking by going
beyond routine and generic technical orientations in project
education. In the same line with the results of other research,
interviewees in this study call for developing reflective skills to
deal with complex situations (Pant and Baroudi, 2008; Rolstadås
et al., 2011; Thomas and Mengel, 2008; Winter et al., 2006).
They believe that developing reflective skills depends on the
co-production of knowledge between academics and practi-
tioners. They explained that cooperation of academic institutions
and practitioners using real cases, simulations, role modeling, and
other active methods of teaching will prepare project manage-
ment students to become creators of knowledge rather than
simple knowledge recipients. Such demands require significant

changes within institutions that teach project management.
These institutions, in cooperation with practitioners, should
allow students to become proactive problem solvers and critical
thinkers instead of passive recipients of theories and generic
knowledge.

In order to deal with complexity, interviewees also empha-
sized the importance of working as a team. They believe that in a
majority of projects, the project manager does not have all of
the required skills and relevant knowledge, so it is critical to
develop competency in forming and managing teams to deal with
complexities. Others might have the required knowledge, and
putting them in practice, every individual has something to
contribute to the success of a project. They can also help increase
learning opportunities for everyone. This was the reason that a
majority of participants in this study emphasized the importance
of team working and developing this competency for project
managers using new methods of education and training.

4.2. Developing both interpersonal and technical skills for
project managers

The need for both technical and leadership skills for project
managers was well accepted by almost all the interviewees. The
result of the study shows a need for a balance between project
managers’ technical and leadership competencies. The challenge
is that the education system does not create this foundation of
balance for project management educators. Interviewees believed
that the focus of most project management education in the
context of universities has been on the technical skills deemed
essential to achieve project success. One of the reasons for the
tendency towards placing emphasis on technical skills is the
fact that a vast majority of projects are in engineering and IT.
Although it should be acknowledged that today, other industries
such as communications and health care have started to deliver
projects as well. Those in charge of managing projects are
mainly some practitioners with more technical rather than
management backgrounds. Another possible reason for the
tendency of educational institutions to focus more on technical
project management skills rather than soft skills is that it is
believed that technical skills are easier to teach compared to soft
skills (Carbone and Gholston, 2004). There is another research
that supports the results of our study and shows that in the
engineering context, leadership development is not as comfort-
able or as logical as technical training (Ferraro, 2008). Meeting
the expected softer characteristics of project practitioners creates
new teaching and pedagogic implications for academic institu-
tions. These institutions need to constantly modify themselves to
meet the technical and behavioral demands of industries.

4.3. Creating knowledge in the context of its application

The result of this research shows the importance of under-
standing the project context for project management students
and project practitioners. Situating training in meaningful con-
texts enables students to see the utility of knowledge and to
understand the conditions for its use. Interviewees believed that
the behavior of a project cannot simply be inferred from the

47J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

behavior of its technical components; the context and environ-
ment play a significant role. Informants in this study explained
the importance of engagement with the context of projects in
enhancing the chances of project success. However inter-
viewees explained that project management education is
lacking in developing this competency. Project management
education needs to take into account the generic nature of
project knowledge to be developed in students, as well as how
they can put this type of knowledge to use in different practical
contexts. They believed that academic institutions need to
facilitate students studying project management in the context
of its application. Therefore, there is a need for project manage-
ment students to be involved in real settings. This is one of the
best ways to facilitate the transition from theory to practice.

It is obvious that the development of these competencies is
easier said than done. Developing these competencies requires
more commitment and cooperation from both educational
institutions and participants. Educational institutions should
mimic the project situations that the participants are most likely
to encounter in their world. This is not going to happen unless
there is a close relationship and cooperation between educa-
tional institutions and industries. Educational institutions need
to have a deep understanding about what is happening in real
settings. If faculty members and educators gain this level of
knowledge, they will be able to make a link between theory and
practice and make the learning environment meaningful for the
learners. A vast body of research in adult leaning supports the
idea that since adults are immensely pragmatic learners, they
will retain and implement educational insights only if they see
the practical implications and an immediate benefit (Jarvis,
2012; Mezirow, 1991; Nicoll and Edwards, 2012)

4.4. Paying attention to both academic education and
continuous training and development

During the interviews, project managers expressed their
concern on both project management education at universities
and corporate training and development. They explained that
the world is always changing and all project environments are
dynamic. As a result, educational institutions will never be able
to plan for all scenarios during the undergrad or graduates
programs. So there is a need for continuous, phased training
during the professional life of project managers to enhance the
probability of achieving project success. Interviews also
explained that it could be many years from graduation before
project managers will be able to apply their learning to their
project management and leadership roles. The challenge,
identified by the respondents, was regarding what happens
when they step into real management roles, many years after
their graduation; will they even remember what they learned
some 6 to 10 years ago in the classroom? They also emphasized
the fact that the world will have changed immensely since their
studies, so there is no way but to upgrade their learning.

Relating to this need, there is a tremendous growth in
attention to knowledge-based certifications such as PMP®. A
study of the project management training industry in 2004
found that over 500,000 individuals participated in project

management training through PMI’s Registered Education
Providers (Zerby, 2005). There are some specific institutions
in charge of training project managers. For example, Project
Management Institute (PMI) is one of the world’s largest
not-for-profit membership associations for the project manage-
ment profession, with more than 700,000 members and
certification and credential holders in more than 185 countries
(PMI, 2013). The other institution is the International Project
Management Association (IPMA). Founded in 1965, IPMA is
the world’s first project management association. IPMA
provides standards and guidelines for project management
(IPMA, 2014).

Interviewees in our study believed that having these cer-
tifications is not a guarantee of competence. These certifica-
tions alone do not fill the project management development gap
in today’s demanding environment. Interviewees believed that
the depth and breadth of training and development is not
something that can be accomplished in one or two courses or by
receiving a certification. The result of our study is in line with
some other research in the area of project management training
and development. For example, Starkweather and Stevenson
(2011) found that there was no difference in project success
rates between projects lead by PMP®-certified project man-
agers and uncertified project managers. As a result, corpora-
tions in different industries have their own investments in
continuous project management training and development as
well. Corporate training and development refers to planned
efforts by organizations to make possible the learning of
job-related behaviors. Training prepares project managers to do
their current job and development prepares them for their future
responsibilities (Schwind et al., 2013).

Despite all of these efforts, there is still significant room for
improvement. We found that continuous developing of project
managers requires a longer commitment and a far more
multifaceted and systematic approach, both in the content and
process. For example, our respondents believed that strong
coaching and continuous mentorship programs are critical to
achieving this goal. These training efforts should transform
project managers to become reflective practitioners. They
identified a lack of transferring tacit knowledge and experi-
ences from experienced project managers to other managers. To
some of the interviewees, this lack was so noteworthy that they
felt frustrated to see significant differences between perfor-
mance of successful and not so successful project managers
working in the same corporation. They were surprised that
corporations do not have a system in place to transfer best
practices to provide coaching or mentorship for young or less
experienced project managers. One of the interviewees explained
that:

“I personally tried to approach some of top project managers
to learn from their experiences, but I found that the feeling is
more like competition rather that cooperation and coaching.”
(Interviewee 25)

They explained that there is a need to trigger project
managers’ awareness on the value of their own experiences,

48 J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

skills, and abilities, and those of other group members and other
project managers, thus encouraging them to learn from each
other in order to accomplish often uncertain and complex tasks
together. This is an effective method on continuous learning
through interaction, practice, and sharing of perspectives.

Interviewees also believed that it is critical for corporations
to identify specific strategic goals for the project management
training and development first and then measure the value-
added for the established strategic goals subsequent to content
delivery. Otherwise, the corporate training will be conducted
based on fad and fashion without significant value added to the
corporation. Based on the ideas of the informants in this study,
this is the reality surrounding some of the corporate training
conducted today.

Academic education and continuous training are ongoing
efforts which require much commitment and planning. This
ongoing effort should be multifaceted and systematic, both
in the content and process of learning. Cooperation between
universities and industries provides a strong foundation for both
project management education and capability integration.

4.5. Practical considerations of the findings

During the interviews, project managers expressed opinions
about the causes of gaps between expected and actual per-
formance of project managers and talked about possible ways
to mitigate them. They mentioned the role of individual
characteristics such as personality, abilities and motivation in
managing projects and also the significant role of training and
education which was the focus of our study. Fig. 1 is a
summary of what they believed to be necessary for a competent
project manager:

As a practical matter, most said that after selecting the right
individuals to manage projects, some of the gaps could be filled
or largely mitigated during the education and continuous training
process. They explained that modern project management
constantly deals with complexity, uncertainty, and continual
technological and organizational change. It requires adaptability,
technical competence as well as skills in human relations.

The result of our study is compatible with the concept of ‘the
eye of competence’, introduced by IPMA which describes the
combination of three competence elements for project man-
agement; technical, behavioral, and contextual (IPMA, 2014).
It is also in line with the results of other research which call
for project management competencies through education and
training (Pant and Baroudi, 2008; Rolstadås et al., 2011;
Thomas and Mengel, 2008). This study shows that project
management graduates need to have strong critical thinking and
leadership competencies such as communication and team
working skills; but as it stands, they do not have the necessary
competency in these fields. Although, traditional project man-
agement education has excelled in providing an extensive
knowledge base for learners, this paper discusses the necessity
to go beyond that. Based on the experience of working project
managers in this study, in many areas of project management
education and corporate training, the traditional method of
lecturing is not always sufficient or appropriate. We asked our

interviewees and focus group panels about their courses in
project management, the method of delivery and the degree to
which they found those courses useful. They explained that
the dominant method of project management education and
training they experienced were lecturing. This is a fact, because
in a majority of educational institutions, the content for much of
project management requirements is communicated through
traditional lectures, regardless of its ineffectiveness (Ferraro,
2012; Rynes and Bartunek, 2013). Table 2 is a summary of
participants’ input. It also shows the perspective of interviewees
on the effect of project management curriculums received by
them on the key competencies necess

ary for project managers.

We collected this information using the Delphi technique which
is summarizing the various responses and reporting the finding to
the respondents to get their feedback (Keeney et al., 2011).
Summarizing and feedback were repeated three times with the
focus groups and two times with the rest of respondents to ensure
the agreement of respondents’ opinion on the information.

As Table 2 shows, the popular method of education and
training which they received was lecturing. They explained that
they had experienced a rather abstract and merely theoretical
approach to project management instead of preparation in
critical thinking, key concepts, and skills necessary to become a
capable project manager. A majority of the respondents
explained that instead of learning key skills and competencies
through education and training, they learned them through trial
and error methods.

They believed that many decisions and practices in project
management are complex and messy because of a high level of
complexity. Accordingly, for students and practitioners to
develop a deeper understanding and to reflect on their own
knowledge, dialogical approaches to learning are needed;
where the issues can be discussed and explored through inter-
action, practice, and sharing of perspectives. For this reason, we
believe that there is a need for developing student-centered
learning in mainstream project management and engineering
education. Student-centered learning helps project management
education go beyond passive methods of education and in-
corporates active ones such as project-based learning to develop
critical thinking, problem solving, and collaborative learning. To
encourage learners to develop flexible knowledge and intrinsi-
cally motivate them to learn, the education system must also
embed learning in the contexts that require the use of these
leanings.

Project management education must prepare learners to be
adaptable, thoughtful, and able to recognize the necessary
changes. In order to do so, depending upon the content and
context of learning, the education and training methods must
choose the appropriate process: to be teacher-centered (lecturing),
or student-centered (facilitation, case studies, project based learn-
ing, role modeling, simulation,…) or a combination of these two.
Project management learners should also be encouraged to start a
learning process that will continue for the duration of their
professional lives. Table 3 shows a summary of our findings.

From the perspective of the practitioners in our study, faculty
members in project management educational institutions should
have practical experience to be able to adequately relate theory to

Fig. 1. The requirements for competent project managers.

49J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

practice. Current promotional systems at universities reward
research activities but not practical experiences or interactive
teaching expertise. Project management development must also
be flexible, customizable and real enough to meet the needs of
ever changing industries.

From the perspective of the informants in our study, some of
the people in charge of managing projects have not had sufficient
project management training or have not received continuous
development in this field throughout their professional career. In
many instances, project managers in a lot of cases have been
selected based on their technical competency. While this may

Table 2
The effect of popular project management curriculums on key competencies necess

Project management curriculum

P
o

p
u

la
r

d
el

iv
er

y

m
et

h
o

d

Lecture L

Critical considerations in developing project managers

• Adaptability

• Critical thinking

• Collaborative skills

• Multidisciplinary

• Technical skills M

oderate

• Planning /scheduling Low M

• Estimating

Low

• Risk management Low

• Interpersonal skills

• Leadership

• Communication Low

• Teamwork Low

• Problem-solving skills Low

P
p
c

Fundamentals
of project
management

Developing skills
for dealing with
complexity

Developing
technical skills

Developing
interpersonal skills

Creating
knowledge in the
context of Its
application

lead to brilliant technical solutions to project requirements, a lack
of management ability has resulted in failed projects.

We summarize the results of our analysis and practical
considerations in the following model in Fig. 2.

Based on the model, both universities and industries can
play a pivotal role in the journey of project managers from good
to great. These institutions could use educational resources to
improve both the technical and leadership side of managing
projects, and leverage research resources to measure and
monitor the impact of changes, complexities and innovations.
The model emphasizes the need for co-production of knowledge

ary for project managers.

ecture Lecture Lecture Lecture Lecture

Low

Moderate Low

oderate
Moderate Low

Moderate

Low

Low Low

Low
Low

Risk
management

Law/ethics
for project
manager

Human
factors for
managing
project

Project cost /
procurement
management

roject
lanning/
ontrol

Table 3
Practical considerations for educating and developing project managers.

Critical factors in developing project managers Educational considerations

Developing skills for dealing with complexity

• Adaptability
• Critical thinking
• Multidisciplinary
• Collaborative skills

Educational models:
Should incorporate complexity as an interpretive paradigm of thinking,
Should have enough flexibility that will support and foster continuous change, creative and critical reflection,
coping with uncertainty and complexities,
Should develop comprehensive development which consider technical and people aspects of managing
project and enable practitioners to select appropriate combinations of technical and interpersonal knowledge,
Should foster critical thinking and responsible decision making,
Should consider the multidisciplinary nature of project management including: cross discipline with other
project managers, interdisciplinary with other leads and managers, and multidisciplinary with groups,
Should reflect on learning content as well as the process of learning in different levels of their curriculum,
Case studies, simulations’ problem based learning and project based learning, role modeling, mentorship, and
other active methods of teaching could facilitate this process.

Developing both interpersonal and technical skills

• Technical skills
• Planning, estimating/scheduling skills
• Leadership
• Interpersonal skills
• Communication
• Problem-solving skills
• Team Working

Educational models should enable practitioners to select appropriate combinations of technical and
interpersonal knowledge, practice and behaviors that will increase self-knowledge and the ability to build and
contribute to high performance teams.
Case studies, simulations’ problem based learning and project based learning, role modeling, team working,
mentorship and other active methods of teaching could facilitate this process.

Creating knowledge in the context of its application Educational models:
Should provide knowledge delivery in real contexts such as simulations and real case studies,
Should consider learners (individually and collectively) as active agents in construction of knowledge,
Reconstruction between theory and practice at different levels is necessary including: course planning,
teaching, research
Cooperation between universities and industries provides a strong foundation for both management
development and capability integration.
Faculty members in project management should have practical experience to be able to adequately relate theory
to practice.

Fig. 2. Training and education and project managers’ journey from good to great.

50 J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

between academics and practitioners, knowledge delivery in real
contexts, and innovative methods of teaching such as simulations
and problem based learning. In order to meet this goal, there is a
need for joint participation of universities and industries in the
transition of project managers from academic to practice. There is
also a need for joint participation in educational planning. By
doing this, there is confidence that the educational system is
designed in a way that meets the ever changing demands of
the industry. The model also shows the importance of paying
attention to both content and the process of educating and
developing project managers. Educational approaches should
enable learners to select appropriate combinations of knowledge,
practice and behaviors that will support and foster continuous
change, creative and critical reflection, coping with uncertainty
and complexities, increasing self-knowledge and the ability to
build and contribute to high performance teams. There is a critical
need for more investment in continuous project management
training and development. The depth and breadth of training and
development is not something that can be accomplished in one or
two courses. It requires a longer commitment and a far more
multifaceted and systematic approach both in the content and
process of education. For example, strong coaching and
continuous mentorship programs are critical to achieving this
goal. Again, cooperation between universities and industries
provides a strong foundation for both management development
and capability integration.

As discussed, some of the changes needed to prepare project
managers will be beyond the scope of what educational institutions
can reasonably do. Both corporations and project management
institutions such as PMI and IPMA play an important role in
this phase. They should reflect on learning content as well as the

51J. Ramazani, G. Jergeas / International Journal of Project Management 33 (2015) 41–52

process of learning in different levels of their curriculum.
Training project managers in such settings will help to address
the gaps in developing future project managers and build the
workforce that will be needed in the future.

In the end, it is important to emphasize that practical guide-
lines developed in this section are based on the idea of informants
interviewed and also participants in the focus groups. There is
definitely a need for more research to find more supporting
evidence that an investment in these practical suggestions will
lead to a change in the quality of the project managers that are
coming into the industry from these institutions. Furthermore, a
cost/benefit analysis should be conducted to further solidify the
idea that the suggestions proposed are both practical and useful to
project managers.

5. Conclusion

The present paper studied the increasingly important subject
of project management education. The core message that can
be taken away from this study is that, educating managers and
developing their competencies should be viewed as a multi-
dimensional and complex process. Interviewees identified three
main factors which educational institutions should consider in
developing project managers: developing critical thinking for
dealing with complexity, developing softer parameters of manag-
ing projects, especially interpersonal skills as opposed to just
technical skills, and preparing project managers to be engaged
within the context of real life projects.

They also explained that none of these factors are sufficient by
themselves. This implies that successful project management is a
complex process always involving alignments of multiple factors.
Project practitioners are likely to be successful if they succeed
in coping with complexity by applying both interpersonal and
technical skills while simultaneously paying attention to context.
Since successful project managers need to perform these complex
processes, they should receive an appropriate level of training
to develop these competencies. Based on the findings of this
research, and accepting its limitations, project management teach-
ing and learning initiatives require new and nontraditional ways
of thinking in the delivery and design, in order to transform
managers to reflective and creative practitioners.

In line with other researchers in the field of management edu-
cation, we introduce the idea that educational institutions should
move away from the delivery of standard package solutions and
technique-orientated pedagogy to “learning and development
which facilitates the development of reflective practitioners who
can learn, operate and adapt effectively in complex project
environments.” (Winter et al., 2006).

Conflict of interest statement

There is no conflict of interest in this research.

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• Project managers and the journey from good to great: The benefits of investment in project management training and education

1. Introduction
1.1. Challenges in educating and training project managers
2. Methodology
2.1. Questions
2.2. Respondents
2.3. Analysis
2.4. Validation
3. Findings
3.1. Complexity of managing projects
3.2. Developing project managers’ competencies
3.2.1. Leadership competencies required for project managers
3.2.2. Team working competencies required for project managers
3.3. The importance of engaging with context in project management education
3.4. The importance of continuing skills development for project managers
4. Discussion
4.1. Developing critical thinking for dealing with complexity
4.2. Developing both interpersonal and technical skills for project managers
4.3. Creating knowledge in the context of its application
4.4. Paying attention to both academic education and continuous training and development
4.5. Practical considerations of the findings
5. Conclusion
Conflict of interest statement
References

Journalof Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013

75

Application of Project Management in Higher Education

Chanelle Austin, Winifred Browne, Barbara Haas, Everett Kenyatta, Sarah Zulueta

Drexel University, US

A

cba25@drexel.edu, wdh27@drexel.edu, bjh327@drexel.edu,

kenyattamba@gmail.com, zuluets@drexel.edu

Abstract
Project Management is prevalent in many industries but is seemingly overlooked in higher

education. At times project management is considered more of an art than an actual science

therefore not enough time or money is spent on implementing formal structures in organizations,

as a result projects often fail and lack direction in any industry. Formal project management

concepts are more prevalent in well-established industries such as construction and healthcare but

seem to be lacking in higher education. We will examine why project management is not as

prevalent in higher education, how higher education institutions can benefit from having formal

project management methodology or a central PMO and what leadership traits would be neede

d

for management to successfully implement a sustainable and effective PMO at a higher education

institution. A case study consisting of a series of interviews with top leaders at Drexel University

on the state of project management will illustrate the challenges that face higher education

institutions who strive to implement project management methodology under budget and resource

constraints. In addition, required leadership styles and further research in the area will be examined

to further prove the importance of implementing project management in higher education

institutions that will contribute to effective, efficient and timely delivery of product and services

to their customers – the faculty, staff and students.

Keywords: Project management, higher education, Project Management Office (PM)

Introduction

We chose to examine how formal project management methodology is lacking in higher education

compared to other industries, specifically healthcare and construction, and identify producible

benefits should a formal project management approach be taken in higher education and

specifically at Drexel University. Further examination into the theory that in order for a Project

Management Office (PMO) to thrive in the Higher Education industry, certain leadership styles

mailto:cba25@drexel.edu

mailto:wdh27@drexel.edu

mailto:kenyattamba@gmail.com

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 76

should be employed to make a PMO in Higher Education sustainable and successful. A case

studying involving a series of interviews with top leaders at Drexel University were conducted to

discuss the current and future state of project management at Drexel University and the benefits

that may result if formal project management methodology was applied in higher education

institutions such as Drexel University and how it compares to local and national institutions. As

stakeholders in higher education in various roles including administrators, employees and students,

the authors have a vested interest in the improvement of processes, procedures, and workflows

within the Higher Education Industry (HEI) space and have, therefore, chosen this topic to

research.

Research was conducted to support the hypothesis that project management methodology currently

has widespread and successful utilization in the construction and health care industries yet lacks

in higher education. A substantial amount of evidence was found to defend the construction

management and healthcare theories; however, there seems to be a shortage of data and research

mechanisms to prove our hypothesis relevant to the higher education field especially if unrelated

to IT departments within higher academia. The deficit of evidence conversely reinforces the

authors’ premises. Further evaluation through scholarly interviews was able to verify the lack of

project management within higher education and at Drexel University, in addition to determining

how applying project management and successful leadership traits will benefit the field and

institutions.

Literature review

The approach taken in this literature review is one that gives the reader a hypothesis formulated

by the combination of a singular premise that is commonly accepted—project management

methodology currently has widespread and successful utilization in the construction industry and

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 77

health care environments; and a second, unsupported premise that the use of formal, structured

project management is lacking in higher education. This second premise forms the crux of this

paper’s hypothesis; and, thus, will be further elaborated on and, if possible, validated. The authors

contend that the use of project management methodology in both the construction and healthcare

industries has improved project success in those industries and can provide the same result in

higher education.

Current research appears to be in line with the hypothesis especially the premise that project

management methodology has widespread and successful utilization in construction. In fact,

discussions of project management in higher education as well as healthcare revolved around

construction projects almost as much as they did around IT. There is research that supports the

premise that project management is successfully employed in the healthcare industry. Current

research discusses project management, internally, as an IT function, or, externally, as a

component of construction projects. The recent focus on IT projects in healthcare is not surprising

as portions of the Affordable Care Act and all of the Hospital Information Technology for

Economic and Clinical Health (HITECH) Act offer mandates and subsidies to increase the use of

electronic health records (Frost & Sullivan, 2012). Those pieces of legislation have undoubtedly

driven huge increases in healthcare IT projects.

Conversely, there appears to be a dearth of research specifically addressing the lack of formal

project management or project management offices in HEIs. Overwhelmingly, researchers have

chosen to discuss project management as it relates to the IT departments and IT functions within

the universities. This scarcity of academic research creates a challenge with regard to validating

the hypothesis, but the discovery of viewpoints that support a diversity of mindset in these

industries is very stimulating.

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 78

Project management, structurally, seems to have been tailor-made for construction—especially the

traditional design-bid-build process. Construction, like project management methodology, is

inherently ordered. Although Emes, Smith, and Marjanovic-Halburd (2012) conclude that the

complexity of the modern built environment requires a much less linear approach, they do

acknowledge the fact that construction’s traditional model is sequential. Similarly, Chou and Yang

(2012) express a concern that construction has become more complex, but, in a departure from

Emes, et al (2012), Chou and Yang (2012) imply that, despite the increasing complexity of

construction projects, and because of its structured approach, use of A Guide to the Project

Management Body of Knowledge Guide (PMBOK® Guide) is an imperative with regard to

improving project success.

It is here, in the context of structured, linear, project management-oriented thinking that we find

the rub. Neary and Saunders (2011) study of 12 universities in the United Kingdom that were all

in the process of building “innovative teaching and learning spaces” garnered very interesting

information with regard to tension, organizational politics, and divergent mindsets. The study

focused on the “academic involvement in the design and delivery of new teaching and learning

spaces in higher education…[and examined that involvement] in the design and decision-making

process of pedagogic space design” (Neary & Saunders, 2011). Their study uncovered a battle

that is academically exhilarating because it takes place at the intersection of construction, higher

education, and project management. One might say that there always exists a battle between these

parties—and that may be true—but, for the most part, that battle takes place between construction

and higher education executive leadership. The Neary & Saunders study examined the interaction

between construction, higher education faculty, and project management; and this study may go a

long way toward explaining a lack of project management offices in HEIs.

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 79

As one might imagine, faculty overwhelmingly conceptualized their learning spaces from a

pedagogical perspective. The academics thought about how these spaces might be designed to

engage students, to increase learning, to, like any other learning tool, have a positive effect on

outcomes. Neary and Saunders (2012) concluded that faculty could make a significant

contribution to the development of learning spaces, but felt constrained by the project management

processes. These constraints, however, are very much a part of the structured and linear nature of

project management as discussed earlier. Likewise, Lavoie-Tremblay, Richer, Marchionni, Cyr,

Biron, Aubry, Bonneville-Roussy, and Vezina (2012) in their study on the implementation of a

project management office (PMO) in a healthcare setting, mention a stressful transition to the

PMO, but conclude that the PMO did, indeed, support project success. Aubrey, Hobbs, and

Thuillier (2008), in their research on organizations and organizational project management, add a

twist to the PMO-organization dynamic by stating that organizational tensions are among the

primary drivers behind the implementation of a project management office within an organization,

but appear to concur with Lavoie-Tremlay, Richer, et al (2012) regarding positive PMO-related

outcomes when they further conclude that the “PMO’s contribution to the organisational

performance can be seen as the result of multiple coexisting values within an organisation, as

analysed with the competing values framework…but at the same time, far from being problematic,

these different values participate to the dynamic life of the organisation” (Aubrey, et al, 2008).

Finally, the scarcity of research that definitively states that formal, structured project management

methodology is employed in HEIs does not lend to the validation of this paper’s hypothesis, but

that validation can, in fact, be inferred from the very absence of research mentioned above. That

inference can then be supported by the abundance of research that speaks to the conflicts between

the linear nature of project management methodology juxtaposed against the very abstract and

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 80

analytical nature of academia. Clearly, conflicts exist that may hinder the establishment of PMOs

in HEIs. Further research and comparisons of the construction, healthcare, and higher education

fields could aid in determining if the implementation (or lack of implementation) of PMOs leans

more heavily on the organic organizational structures in these industries, or if stakeholder

mindsets, leadership styles, cost-benefit perception, or some other forces play a larger role.

Leadership Qualities

It is important to understand why leadership qualities are important to project management. Even

though the terms managing and leading are used interchangeably there are distinct differences

(Schwalbe, 2013). It is often said leaders are focused on the big picture and long term goals while

managers are focused on day to day activities and achieving those goals (Schwalbe, 2013). In

project management, both roles are merged. The authors will examine the core competencies that

make up both good and poor leaders and why this element is necessary in project management. By

comparing the construction and healthcare industries where project management is prominent we

see consistency in key leadership styles and core competencies.

Kathy Schwalbe states in her book An Introduction to Healthcare Project Management that a recent

study conducted with over one hundred project managers listed the critical characteristics

necessary for a project manager to possess. While there is certainly overlap between general

leadership roles and project management roles, it vital to separate the two and mention without

these skills a project manager could not be effective in their role. Core competencies for a project

manager are described as: exhibiting professionalism, strong communication skills, being

visionary, encouraging teamwork, having strong cognitive ability, and displaying technical

competence according to (Santiago (nd) & Schwalbe 2013). The fundamental skill set required for

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 81

a project manager are: risk management, team and individual leadership, conflict resolution,

negotiation and influencing, organization and planning (Santiago).

In a recent U.S. News and World Reports article it was stated that project management skills are

“the third most valued skill by employers, behind only leadership and business analysis” (Santiago,

nd). When you look at commercial businesses that currently use project management practices

several key leadership attributes emerge. It is these qualities that have led to successful project

management programs. According to the seven-year DiSC personal profile assessment conducted

by Tom Wagner in 2009, dominant construction leadership behaviors were shown to be:

decisiveness, competitive nature, organized, precise, goal oriented and objective. These

competencies are vital in order for the constructed edifice to be durable, sturdy and last for years.

Other noteworthy qualities are friendly, approachable, good listeners, open, creative and

energizing (Wagner, 2009).

Project Management is becoming more prominent in the healthcare industry because of its set

methodology and practices. In order to remain competitive more and more healthcare companies

are adopting formal project management processes (Schwalbe, 2013). Since the makeup of the

project team in a healthcare related project will be quite diverse, the project manager may need to

be “sensitive to this and share leadership role” (Schwalbe, 2013). Here the project manager will

need to rely heavily on their soft skills as many people in the healthcare field are more people

focused then process focused.

In contrast to the construction and health care industries, in higher education, leadership is one of

those “ambiguous”(Puzziferro, 2012) terms because of the ever changing scene of the higher

education setting. In many cases new approaches to learning may counter those old beliefs used in

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 82

education for decades. To an outsider, leadership skills in higher education appear to be more of

a micro level then a project manager who is more at a macro level. Skillsets of leaders in higher

education differ from those of a project manager. Higher education leaders must have an

understanding in regulatory rules, legal interpretations and compliance (Puzziferro, 2012). A

higher education leader will need to be knowledgeable in varying technologies as they relate to

learning. Understanding the leadership style of educational leaders compared to non-educational

industries, is further argument for the need of project management skills in higher education.

Methodology

The methodology used for this paper was through a case study conducted at Drexel University

through interviews with top leaders at Drexel. The case study also includes surveys and research

used to determine how Drexel compares to other local and national higher education institutions

Project Management Offices (PMO). The interviews will discuss the current and future state of

project management at Drexel University as well as the impressions of University top leaders on

the subject including the effects on the lack of project management, benefits of project

management and the leadership styles that contribute to successful project management programs

or offices at organizations such as Drexel.

Research Questions

The goal of the case study is to answer the overarching questions on why is project management

not as prevalent in higher education, how higher education institutions can benefit from having

formal project management methodology or a central PMO and what leadership traits would be

needed for management to successfully implement a sustainable and effective PMO at a higher

education institution.

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 83

Data Collection

Leaders from multiple areas at Drexel were included in the data collection. The leaders

interviewed represented the academic, information technology (IT) and finance areas. For this

project the interviewees are referenced as subjects in the case study. The subjects to interview were

selected on a combination of criteria based on their role, experience and sphere of influence. A

combination of the following criteria was used to select the subjects:

a) Is the subject part of the Senior Management (including VP level) at Drexel University or

subsidiaries?

b) Is the subject’s current role at University one that can influence the future of project

management at Drexel University or subsidiaries?

c) Is the subject currently charged with project management in their respective areas?

d) Does the subject have proven experience in implementing or leading efforts in project

management methodology in higher education or other industries?

If the subject met at least 3 out of the 4 criteria they were approached to participate in the case

study. If the subject accepted the interview then the interview questions were emailed prior to the

in person interviews to ensure they were prepped on the interview and understood the scope of the

project. The case study consisted of a total of six (6) subjects see Appendix E for subject names,

criteria met and scheduled interview dates.

The interview questions were designed to determine if the overall hypothesis for our research is

supported. The current research discussed in the literature review also attributed to the

development of the interview questions. The literature review research was conducted using

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 84

internet and library industry resources. See Appendix A for the Interview Questions used for the

case study.

Data was also collected through additional survey questions and research that was completed at a

Pennsylvania Banner User Conference (PABUG) on November 25, 2013 where a session titled

“Who has time for Project Management?” was presented by one of the authors. The session

represented 31 area high education institutions in Pennsylvania. The short survey questions were

asked in a focus group style setting where the presenter acted as the moderator and facilitated the

discussions through the survey questions outlined in Appendix B. The represented institutions

that participated in survey are listed in Appendix C.

The interview and survey results were coalesced into one document for review and the similarities

and differences among the subject’s responses to the same questions were identified. The required

leadership traits that were obtained through interviews were compared to research from industry.

Drexel University case study can be a model for other higher education institutions that are looking

to implement a PMO. The overall results and conclusions are described in detail in the summary.

Description and Analysis of Project

The project involved examining the use of formal project management in different industries and

specifically how it is predominantly used in the construction and healthcare industries while

lacking in higher education. The research in the literature review section supports this notion while

the case study of Project Management at Drexel University further examines why there is a lack

of project management in higher education, the benefits of formal methodology and the leadership

qualities that management should possess to implement an effective PMO. Drexel University was

used in the case study to illustrate the similar challenges and perceptions that other HEI would

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 85

have with implementing formal project management structures at an institution that would be

accepted, sustained and successful at all levels of the University.

The case study shows that top leaders at Drexel agreed there was a lack of project management at

the University and but it existed in pockets at the department level. All subjects agree that there is

a lack of project management within higher education and the majority believe that it is important

to integrate practices into higher education and at Drexel University. This is important to align

university initiatives across departments. The senior management that were interviewed all

discussed the challenges with implementing a central PMO but all were in favor and are each

making strides to contribute to a change at Drexel.

The survey results at area PABUG that were collected showed only less than 10% of the HEI had

a PMO and the ones that did were all housed in the IT department. This seems consistent with

national averages that will be further explained in the summary section of our results.

Summary

Six interviews were conducted with five employees from Drexel University and one employee of

Drexel eLearning (DeL) to discuss their impressions on the current and future state of project

management within higher education and Drexel University. Prior to and aside from higher

education, our interviewees’ project management background varies from health care,

occupational licensing and the railroad industries. With this broad range of experience, most of

our subjects agree that project management principles and challenges are the same across all

industries, including higher education.

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 86

Our subjects believe that the “for-profit”, construction management, engineering, healthcare and

software implementation industries, to name a few, have been successful in project management

as these industries must thrive to meet a competitive advantage and increase profits (K. Matuch,

personal communication, December 5, 2013). The subjects also believe that industries such as

higher education, government and the arts have been unsuccessful in project management due to

turn over, resource constraints, competing interests, operating cost, a lack of need for efficiency or

results and specifically within higher education, the governance that is involved receives faculty

opposition (M. Scherumann, personal communication, December 2, 2013). Faculty tends to feel

constrained by project management processes and resist the Work Breakdown Structure (A.

Sussman, personal communication, December 2013). Another reason that higher education lack

formal project management is that there is a perception that traditional project management

approaches are more rigid and slow things down; stakeholders are forced to evaluate whether it’s

worth investing the time and resources (J. Bielec, personal communication, December 2013).

Higher education focuses on theory and education, rather than implementation, and the lack of

project management support can stem from the opposition of governance from upper management

which is not absorbed well by faculty. Historically, faculty are more focus on research and

teaching and find project governance would require a refocus from their main passions and

priorities of research and teaching (M. Scherumann, 2013), yet this conflicts with the structure of

managing projects. Project Management may be viewed as “too corporate” of a way to make

decisions, yet this is changing within higher education due to the need to be more effective (H.

Bowman, 2013). Normally, higher education Presidents and/or upper management come from an

academic background yet this is not the case at Drexel University. As HEI budgets are stretched,

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 87

donations remain flat, government funding decreases, and competition arises from massive open

online courses and other online, lower cost education options, it becomes increasingly imperative

that Drexel University remains competitive while keeping expenses low.

When asked to identify institutions that currently house PMO offices, only two subjects were

able to note institutions that housed PMOs not specific to IT. Appendix D lists the IT department

of 27 institutions which approximately 3% of these employees are classified as Project

Management Staff. This data is comparable to Drexel University as its IRT department, whom

have 80 employees and only 2-3 employees partial dedicated to PMO activities in the department.

Incorporating project management and PMOs can reduce redundancy, prioritize projects, provide

professional development and open lines of communication with sponsors, stakeholders and the

appropriate departments. Considering the limited resources in higher education, it is important to

utilize project management skills to make evident to stakeholders the complexities and

interdependency of projects that are required to plan and execute a scalable solution (K. Matuch,

2013). The CFO at Drexel University believes that formal project management in higher education

will allow for improved resource allocation, establish greater controls over project execution and

outcomes, and drive greater discipline around all aspects of project management and decision

making.

According to the subjects, aside from project prioritization, Drexel University would specifically

benefit by implementing putting more resources toward formal project management as they will

grant the ability to ensure innovation and alignment to University strategies, while also providing

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 88

transparency, consistency, and greater communication throughout the organization and

stakeholders (H. Bowman, personal communication December 2013). At a strategic level, a PMO

will provide the ability to clearly view the costs and benefits of all improvement projects occurring

and report their impact to senior leaders and board trustees (H. Bowman, 2013).

Project Management exists at Drexel University on an individual project basis and not on a

strategic level (H. Bowman, 2013). According to Weyler, Drexel’s continuous growth and

expansion is evidence that project management exists, but she believes that project management

is primarily practiced in silos; therefore, minimally collaborative across the organization. PAR

(Performance Alignment Review) is an initiative being run by Provost Office to ensure there is no

redundancy of programs. It is similar to what a PMO office would do but on the academic side.

According to Sussman, PMOs have a harder time justifying their position more than Project

Managers. Nonetheless, Drexel is in the early stages of developing a PMO office in which its

purpose and catalyst for expansion is to ensure the effectiveness of the University’s resources and

understand both the needs and challenges at the University (H. Bowman, 2013). To assist in this

evaluation, Helen Bowman lead an assessment focused on the strategy, finance, operations, and

technology of the core administrative functions with a contracted organization which led to over

150 improvement initiatives to consider/implement. As a result, it was essential to create a PMO

at the University to ensure the execution of these results and future continuous improvement

initiatives (Bowman, 2013). Having a specific area focused on leading such initiatives while

utilizing as many internal resources will provide a sense of shared governance for university

strategies (Weyler, M., personal communication, December, 2013). It is intended to support the

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 89

university at an organizational level aligning projects and programs to the success of our strategi

c

and financial plans (Weyler, 2013).

Conclusions

The lack of a formal PMO results in having subject matter experts to take on dual roles, as a project

manager and a team resource. This lack of full resources can causes less than desired project

results; leaving the project team and expected outcome short (M. Weyler, 2013). In project

management, leadership and management styles must be merged in order to support desired project

results. As project management has been proven successful in the construction management and

healthcare industries, key leadership styles in both fields were researched and discussed to

determine which characteristics will benefit the execution of project management within higher

academia.

In construction management, leadership traits tend to fall under being decisive, open, competitive,

goal oriented, unbiased, focused and an active listener. In healthcare, soft skills, negotiation and

communication are important to maintain productivity and not offend those in leadership positions.

These skills are required of management, regardless of the type of organization (Wagner, 2009).

Within higher education, leadership skills focus more on compliance, technical competence and

regulations. As the field lacks formal project management methodology and is constantly

changing, our interviewees have identified that traits identical to those of construction management

and healthcare are important for Project Managers to possess in addition to effective integrity,

initiative, collaboration, problem solving and competence. Higher education offers a unique

experience in building collaboration as there sometimes seems to be a divide between faculty and

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 90

staff, differing priorities between departments, and, at least at Drexel, the impression of a lack of

shared governance. Effective Project Management delivers the results needed to achieve a strategy

in a unified way while alleviating overload of subject matter experts or high performers and

granting unified project management processes and tools for success (M. Weyler, 2013) across the

entire university.

Concluding the interviews, when asked to provide their best piece of advice for someone taking

on a project management leadership role within higher education, a recommendation to have

patience in order to engage and effectively persuade buy-in was encouraged (A. Sussman, 2013).

There is more to higher education than the department one works for. Making a conscious effort

to work across functions building the trust and respect of colleagues throughout the University to

understand how various parties might be affected by an initiative/project (Weyler) is important to

the success and implementation of further project management and a PMO within Drexel

University.

References

Aubry, M., Hobbs, B., & Thuillier, D. (2009). The contribution of the project management office

to organisational performance. International Journal of Managing Projects in Business,

2(1), 141-148. doi:http://dx.doi.org/10.1108/17538370910930563

Chou, J., & Yang, J. (2012). Project management knowledge and effects on construction project

outcomes: An empirical study. Project Management Journal, 43(5), 47-67.

doi:http://dx.doi.org/10.1002/pmj.21293

http://dx.doi.org/10.1108/17538370910930563

http://dx.doi.org/10.1002/pmj.21293

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Dalcher, D. (2012). The nature of project management. International Journal of Managing

Projects in Business, 5(4), 643-660. doi:http://dx.doi.org/10.1108/17538371211268960

Emes, M. R., Smith, A., & Marjanovic-Halburd, L. (2012). Systems for construction: Lessons

for the construction industry from experiences in spacecraft systems engineering.

Intelligent Buildings International, 4(2), 67-88.

Frost & Sullivan. (n.d.). Accepting the Inevitable, U.S. Hospitals Significantly Ramp up Use of

Electronic Health Records, Finds Frost & Sullivan. Retrieved from

http://www.frost.com/prod/servlet/press-release.pag?docid=244644384

Lavoie-Tremblay, M., Richer, Marie-Claire,N., PhD., Marchionni, Caroline,N., M.Sc, Cyr, G.,

PhD., Biron, Alain D,N., PhD., Aubry, M., PhD., Vézina, Michel, DSc, MSc, CA.

(2012). Implementation of evidence-based practices in the context of a redevelopment

project in a canadian healthcare organization. Journal of Nursing Scholarship, 44(4),

418-27. Retrieved from

http://search.proquest.com/docview/1314776130?accountid=10559

Martin J., (April 25, 2013) Traits of Ineffective Leaders. Retrieved from

http://www.joannamartin.tv/lifestyle/7-traits-of-ineffective-leaders/

Neary, M., & Saunders, G. (2011). Leadership and learning landscapes: The struggle for the idea

of the university. Higher Education Quarterly, 65(4), 333-352.

doi:http://dx.doi.org/10.1111/j.1468-2273.2011.00494.x

http://dx.doi.org/10.1108/17538371211268960

http://www.joannamartin.tv/lifestyle/7-traits-of-ineffective-leaders/

http://dx.doi.org/10.1111/j.1468-2273.2011.00494.x

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Puzziferro, M. (2012, March 20). The Future of Higher Education: The Role of Leadership.The

Huffington Post. Retrieved from http://www.huffingtonpost.com/maria-

puzziferro/leadership-advice_b_1367791.html

Santiago A., (nd). Healthcare Project Manager Career Skills. Retrieved on November 23, 2013

from: http://healthcareers.about.com/od/administrativeandsupport/p/Healthcare-Project-

Manager-Career-Skills.htm

Schwalbe, K. (2013) An introduction to healthcare project management. Retrieved from:

http://kathyschwalbe.files.wordpress.com/2013/01/healthcare-pm-chapter-1

Wagner, T., (2009) Leadership development. Retrieved from:

http://southcentral.construction.com/opinions/LeadershipDev/archive/2009/08.asp

Appendix A – Case Study Interview Questions

Project Management Experience:

http://healthcareers.about.com/od/administrativeandsupport/p/Healthcare-Project-Manager-Career-Skills.htm

http://healthcareers.about.com/od/administrativeandsupport/p/Healthcare-Project-Manager-Career-Skills.htm

http://kathyschwalbe.files.wordpress.com/2013/01/healthcare-pm-chapter-1

http://southcentral.construction.com/opinions/LeadershipDev/archive/2009/08.asp

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 93

1. Aside from higher education, what fields have you worked in as a PM? How does
project management differ in this field/the se fields compared to

higher education?

2. Which industries would you say have been successful in project management? Why?

3. What industries would you say have been unsuccessful in project management? Why?

Leadership and management questions:

1. What leadership traits do you believe are important for a PM to posses working in the
higher education field?

2. What core project management competencies do you believe are important for a PM to
posses working in the higher education field?

3. What are some of the techniques that you/project managers use to manage individuals
and teams to produce high-performance project out comes and positive business results?

Project Management in Higher Academia:

1. Do you think there is a lack of project management within Higher Education? Why?

2. Do you think it is important to integrate project management into higher education?
Why?

OR

2. How would higher academia benefit from formal project management?

3. Which institutions are you aware of that currently house a PMO office?

IF AN INSTITUTION WAS NAMED FOR #3:

4. How would you compare the use of project management between [institution] and Drexel
University?

Drexel University:

1. In which academic departments at Drexel University (or most Higher Education
institutions) would you say lack formal project management concepts? How could they

benefit by using project management?

2. What are some business goals/cases at Drexel University that could benefit from the use
of project management?

OR

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 94

3. How would Drexel University specifically benefit by implementing putting more
resources toward formal project management?

Closing:

1. What would be your best piece of advice for someone taking on a project management
leadership role within higher education?

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 95

Appendix B – Survey Questions

Survey Questions:

1. Does your institution have a PMO office?

2. Does your institution follow Project Management methodology?

3. How many resources are dedicated to PMO/Project Management initiatives at your

institution?

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 96

Appendix C – Represented Pennsylvania Higher Education Institutions at Pennsylvania

Banner User Group Conference November 25-26, 2013 Grantville, PA

Bucknell University Lehigh Carbon Community College

Cabrini College Lehigh University

California University of Pennsylvania Messiah College

Community College of Philadelphia Millersville University of PA

Delaware County Comm College Philadelphia College of Osteopathic Medicine

Dickinson College Saint Joseph’s University

Drexel University Shippensburg University

Duquesne University Slippery Rock University

East Stroudsburg University Swarthmore College

Edinboro University Temple

Franklin & Marshall College Thomas Jefferson University

Harrisburg Area Community College University of Scranton

Immaculata University Villanova University

Indiana University of PA Wilkes University

Lafayette College York College

LaSalle University

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 97

Appendix D – Educause Project Management in Universities

SCHOOL State

IT

STAFF

PM STAFF

St. Cloud State University MN 60 2 – 3

Stony Brook University NY 160 3

Ringling College of art and design FL 28 1

University of West Georgia GA 60 2

St Josephs College NY 30 1

ANGELO STATE UNIVERSITY TX 45 2 dedicated 4-6 for IT proj.

Eastern Washington U. WA 80 3

Virginia Community Colleges VA 70 2 FT, 1 PT

Portland State University OR 100 2

Arizona State AZ 350 13

School of The Art Institute of Chicago IL 35 1

Fresno State CA 80 2

U of New Mexico NM 165 4

Roosevelt University IL 35 1 PM, 1 P.Adm.

University of Maine ME 80 3

Maryhurst University OR 11 1

Teachers College Columbia U NY 50 1

University of St. Thomas MN 90 6

Southern Illinois University Carbondale IL 100 1

University of La Verne CA 28 1

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 98

Appalachian State NC 80.5 1

Colorado Community College System CO 45 5

Columbus State University GA 55 1

George Mason University VA 250 3.5

UW Madison WI 600 8

Wellesley College MA 55 0

University of Hawaii HI 1 – Central 6 in Functional

Depts

Journal of Economic Development, Management, IT, Finance and Marketing, 5(2), 75-99 Sept 2013 99

Appendix E: Subject Information

Subject Details Selection Criteria

Interviewed

Subject

Name

Title Area Date of

Interview

A

Senior

Mgt

b

Influencer

Role

c

Charge

with PM

d

Exp

M.

Scherumann

AVP, Online

Learning, IRT

Academic,

IT

12/2/2013 Y Y Y Y

K. Matuch AVP, Core

Enterprise

Systems, IRT

IT 12/5/2013 Y Y Y Y

J. Bielec Chief Information

Officer, IRT

IT 12/5/2013 Y Y Y Y

H. Bowman Chief Financial

Officer, Finance

Finance 12/9/2013 Y Y Y Y

A. Sussman Director of

Training and

Corporate

Planning, DeL

Academic 12/6/2013 N Y Y Y

M. Weyler SVP, PMO Finance 12/10/2013 Y Y Y Y

Copyright of Journal of Economic Development, Management, IT, Finance & Marketing is
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Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

1877-0428

© 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the IPMA.

doi: 10.1016/j.sbspro.2014.03.025

ScienceDirect

27th IPMA World Congress

Creating holistic project-knowledge society through project
management education in research and development

Neven Žarkovi a,b, Igor Vre koc*, Zlatko Barilovi a
a “Baltazar Adam Kr eli ” Accredited College of Business and Management, V. Novaka 23, Zapreši 10290, Croatia

bRu er Boškovi Institute, Bijeni ka cesta 54, Zagreb 10000, Croatia
cUniversity of Maribor, Faculty of Economics and Business, Institute for Project Management, Razlagova 14, Maribor 2000, Slovenia

Abstract

Developing knowledge and creating knowledge society seems like to be among the major factors in founding and further
developing modern society. Development is strongly associated with projects as temporary and unique processes, and thus
being tools for enabling development. Accordingly, in competitive and globalised modern society, arising of thoughts about
project society being able to successfully implement multitude of projects is not surprising. Since establishing knowledge- and
project-society appears to be among nations’ strategic goals, it is important to recognise and eliminate their possible
deficiencies. In doing so, the paper propose using the holistic, i.e. systems approach and integration of expanded concepts
about knowledge- and project-society into holistic project-knowledge society. Efforts for creating such society start with
educating and qualifying as many as possible individuals. The final part of the paper shows the case following this idea on
Specialist graduate professional study of Project management at the “B.A.Kr eli ” Accredited College of Business and
Management in Zapreši , Croatia.

© 2014 The Authors. Published by Elsevier Ltd.
Selection and peer-review under responsibility of the IPMA.

Keywords: Project management, educational projects, project education, research and development (R&D), holistic project-knowledge society

* Corresponding author. Tel.: +386 2 22 90 246; fax: +386 2 25 16 681.
E-mail address:igor.vrecko@uni-mb.si

Available online at www.sciencedirect.com

© 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the IPMA.

http://crossmark.crossref.org/dialog/?doi=10.1016/j.sbspro.2014.03.025&domain=pdf

http://creativecommons.org/licenses/by-nc-nd/3.0/

http://creativecommons.org/licenses/by-nc-nd/3.0/

211 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

1. Introduction

Establishing the knowledge-based society appears to be one of the main pillars for establishing competitive and
modern society. In trying to preserve or increase the competitiveness, both nations and trans-national regions
increase their efforts and resources for implementing developmental projects. While projects proved to be
appropriate/necessary tools for assuring progress, the history of modern projects and their outcomes and
consequences have shown necessity to treat projects from more holistic – systemic aspect. Separate development
of knowledge society and of project society, not incorporating the sufficiently holistic aspects in both, showed to
be dangerous for the future of any modern society. In the following chapters we present a concept of holistically
oriented project-knowledge society. In such a society, research and development (R&D) plays fundamentally
important role. Namely, specificities of R&D projects (basic, target-oriented and developmental) and their
outcomes are mutually dependent triggering each other resulting in applicability of results of R&D projects
increasing our overall knowledge. Successful implementation of all these different kind of projects demands
specific knowledge and competencies of project management necessary for their implementation.

Hence, recruiting R&D-oriented project managers and training researchers in project management competences
with holistic approach needs to become one of main developmental and societal goals in modern countries.

Therefore, in the final chapter, the requirements for developing competent and holistic project managers is
presented, based on the case from VSPU (“B.A.Kr eli ” Accredited College of Business and Management in
Zapreši , Croatia), which demonstrated important positive results in creating holistic project-knowledge society.

2. Role of science and research in knowledge development

As the terms “basic research” and “fundamental science” indicate, they represent the fundaments of our overall
knowledge in the widest sense of modern science including the entire spectrum of research topics and scientific
methodologies. Thus, the fundamental science comprising both theoretical as well as experimental research
methodologies rely on projects that tend to be implemented in specific fields of science, namely in life sciences,
social sciences, medicine and technical sciences. However, since recent years these all interact in research and
development (R&D) of the modern society building rapidly progressing “interdisciplinary sciences and
technologies”.

Complementary to that, applied research projects are target-oriented, exploring applicability of the know-how
gained through scientific basic research projects. Hence, the applied research projects are based on the fundaments
of the basic research projects, which discovered novel findings that might be applied in development of society.
Such a development can be achieved only with the increase of the overall scientific fundaments on one hand and
on the other on the technological progress. Therefore, basic and applied research are mutually dependent, they
interact progressively in majority of successful projects, such as drug development based on knowledge generated
in chemistry and biology, or development of modern communication systems based not only technical sciences but
also on progress achieved by physics and social sciences.

Such mutual dependence and progressive interactions between basic and applied research projects make the
essence for development of the modern knowledge society, in which project management is crucial. Namely,
project management allows development of strategies and skills necessary to enhance interactions between various
projects and successful realization of any project in particular. The relevance of project management in modern
Europe is stressed by R&D projects carried in about 300 European Research & Technology Organizations (RTOs),
which generate entrepreneurial and industrial activities on the scale of approximately 100 billion €/year.

Unfortunately, public perception of science is usually wrong, especially in the years of crises, when ignorant
“decision makers” consider science as a kind of social luxury. For example, for several years in Croatia the project
of restructuring national science and technology system under the “Science and Technology Project” (STP)
supervised and financed to great extent by the World Bank gave moderate results due to the abuse of the project by
directly involved decision makers and administrators having their own goals, not only political. The lack of public
control necessary to develop functional system of education and science linking academia and industry was a

212 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

consequence of such policy. That would not have happened if project management would have been implemented
in every step of the STP.

However, surprisingly positive, indirect and independent result of the STP was initiation of the graduate study
in Project Management that gives students not only necessary knowledge and practical skills but also promotes
interdisciplinary of project management as profession and as a field of science. As a results of this particular study
program, National Science Council of Croatia recognized Project Management as an independent interdisciplinary
field of science, while more than 300 students that finished study of Project Management so far, some already
being the PhD students, make good precondition for success in further development of modern knowledge based,
holistic project-oriented society.

3. Creating and developing holistic project-knowledge society

3.1. Holistic project-oriented society

At the turn of this century, findings of many researchers and project management practitioners led to viewing
projects and project management in a wider context, particularly their role in the development. Projects and
concepts of project management started to be linked with strategies, concepts of strategic management, and
development of a certain social environment (Cleland, & Ireland, 2006; Hauc, 2007). Tanaka (2011) defines
strategic project management as a third generation in the development of project management, applied since 2000.
He included the need for a systems approach among typical techniques in use in strategic project management
(e.g., project portfolio management, program management, modular project approach).

Along came the growing usage of the term project-oriented societies. This relatively new term emerged at the
turn of this millennium. In discussing societal contributions of project management, Cleland (2003) asks—based
on the identified projects through human history—whether we can say that project-oriented societies already
existed in antiquity, although he fails to define what project-oriented society is. According to Gareis (2002), the
first person to scientifically research and define the phenomenon of project-oriented society, it is “a society which
(often) applies projects and programmes as temporary originations to perform unique processes of medium and
large scope and who use them for its developmental, business and other needs; it is a society which carries out the
education, researches, marketing and standardization for the sake of project management. In project-oriented
societies, not only traditional industries but also the public sector and non-profit organisations consider projects
and programmes as appropriate organisations to perform relatively unique processes.” This understanding of
project-oriented society has remained unchallenged and unchanged in subsequent studies.

Different models have been devised to assess the project-oriented society’s level of development and influence
on other important social issues. The Vienna University of Business and Economics Austria first conducted such
studies in the 21st century in a partnership with the International Project Management Association (IPMA). The
research involved six countries—Austria, Denmark, Hungary, Romania, Sweden and the United Kingdom—and
highlighted significant differences in the level of development of project-oriented societies in these countries
(Gareis, & Huemann, 2001; Gareis, 2002; Bodea, 2002; Bargaoanu, & Calinescu, 2008). However, existing
contributions to project-oriented societies (and project management maturity models) lack explanations for 1)
consciousness about the role, importance, and inevitability of projects for dealing with global strategic issues and
the need to accept the necessity of particular projects required to master those issues and 2) the need to holistically,
systematically, and objectively understand and make decisions about projects.

Since the world is entering a period of permanently present and intensified influences of global crises, we have
to find expert solutions to fight the growth of such influences and their further emergence through projects. It is
necessary to secure all necessary resources for this purpose and realize that global crisis projects will continue to
grow in priority.

It becomes clear that we have to apply a broader criterion in setting the fundamental commitments of the
project-oriented society. The definition of project-oriented society must be expanded to incorporate the idea of a
holistic project-oriented society—a fully aware society that consciously accepts and identifies the appearance of
global strategic issues as facts of the future (Hauc et al., 2011). It is a society that understands what projects mean

213 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

for the survival and development of humankind, in all its organizational environments. Such a society systemically
and holistically sets up and accepts strategies for fighting global issues and, in turn, adapts the choice and the pace
of implementing projects to them, systematically bearing in mind all effects and consequences resulting from those
projects while securing—despite the ever-present shortage—all necessary resources. It is a society, capable of—
with an appropriate level of developed project management knowledge and support—carrying out of projects and
ready and willing to implement them.

When discussing project-oriented societies, many authors highlight the importance of knowledge and
developing project competences (e.g., Gareis, 2002; Omazi , & Baljkas, 2005) as well as necessary inventiveness
(e.g., Hauc, &Vre ko, 2009; Järkvik et al., 2007; Rebernik, & Širec, 2007). They correlate project-oriented society
with culture standards (e.g., ethics/morals, diligence) (Carroll, & Buchholtz, 2008) and the level of organizational
development of the environment in which projects are implemented (e.g., project organizational structure,
information support, multi-project organization, standardization of project procedures). We will not go into details
about such views, but rather focus on the need to raise general knowledge about project management and visibly
define its position when speaking about a knowledge society.

3.2. Project oriented knowledge society

Society is made up of mutually interrelated groups of people, in which a whole exists only through a unity of
functions taken up by all participants and each individual is to a great extent defined by his or her belonging to the
whole group (Adorno, & Horkheimer, 1979). Skledar, & Kregar (2003) defined society as an organized whole—
namely, a group of people connected by a joint life system (rules and norms) and social institutions. In each
society, regardless of the level of its development, a certain organization of joint living exists and assigns each
member with social functions and roles, which they basically have to respect.

Throughout history, societies have passed through several major phases of development, such as pre-modern
and modern societies (i.e., Giddens, 2007; Lee, & Newby, 1983), although some sociologists (e.g., Fukuyama,
2000; Haralambos, & Holborn, 2002) claim that a new type of society—postmodern society—is being developed
by transitioning from industrial modernism. According to Bari , & Jele Raguž (2010), the current world is on the
threshold of changing from an industrial society to an information society and a knowledge society. The
knowledge society is often seen as a new civilization that replaces the dying and hopeless era of industrial
capitalism with new forms of social, familial, and labor life (Švarc, & Perkovi , 2011).

Bari , & Jele Raguž (2010) defined “knowledge society as a society, in which human knowledge, skills and
abilities are the most important development resources and initiators of economic and social changes.” They
further concluded that the structure of the knowledge society “consists of the so-called four pillars: education, the
innovation system, the information-communication-technological sector, and the legal and economic framework.”

Although many researchers emphasize the necessity of building and developing the knowledge society, others
warn of numerous problems that result from it. Dahrendorf (2005) stresses that the knowledge society creates new
elite of the rich while the poor become even poorer. New conflicts are created as well as social inequity,
exploitation, and other social problems. Stiglitz (2009), similar as Beck (2003), focused on negative social and
ecological consequences stemming from pursuing narrow subjective interests.

Both supporters and critics of the knowledge society fail to give sufficient consideration to the inter-dependence
between the knowledge society and the rise of a multi-project environment (and changed demands in knowledge,
support, etc.) and global strategic issues, much less their resolutions. Establishing a highly developed knowledge
society, as understood today, will not be sufficient for mastering multi-project environment and global strategic
issues discussed herein. Indeed, according to some of the quoted authors, such crises can appear precisely because
of the development of the knowledge society, although we argue it is the non-systemic (i.e., not holistically
enough) development of the knowledge society.

The knowledge required to find solutions for project-oriented society struggles with influences of crises and for
achieving holistic knowledge society, which should help raise awareness that crises are present and that a global
resolution is necessary. In this respect, a transition to the project-oriented knowledge society is needed, while the
term knowledge society needs to be further extended: Knowledge society covers needs for mastering global

214 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

strategic issues, permanently increasing humankind’s general knowledge, based on the development and
application of new knowledge from innovativeness and research and development achievements. Such knowledge
further contributes to raising awareness of the need to adopt and implement the necessary measures (i.e., projects
to resolve global strategic issues), thereby ensuring further development of humankind and maintenance of its
dignity.

In establishing the project-oriented knowledge society, it is necessary to incorporate the knowledge of mastering
multi-project issues as solving global strategic issues is connected to mastering a number of projects. Here we do
not refer only to the narrow, middle section of society, which knows how to plan and implement projects, but to
society as a whole, which will have to accept the fact that particular types of projects are needed, although some
will demand self-sacrifice for some while creating opportunities for others. Most importantly, society will have to
accept the fact that some necessary projects will cause a different distribution of capital, changes in the current
power hierarchy, and control over certain world events.

3.3. Creating holistic project-knowledge society

Because of the great importance of global strategic issues for the survival and further development of the world,
it is necessary to unite the project-oriented knowledge society and holistic project-oriented society. Knowledge
makes it possible to find the necessary solutions and measures to resist influences of global strategic issues;
solutions have to be found to increase awareness of the need for a joint action in resisting global strategic issues.
To permanently resist their influences, it is necessary to establish a holistic project-knowledge society (see Figure
1).

Fig. 1. Holistic project-knowledge society.

Knowledge society includes the inter-action of expert knowledge and competence, creativity and
innovativeness, high-level legal and economic development, and developed informatics/communications/
technology to support the establishment of a holistic project-oriented society and vice versa as it is not possible to
successfully master global strategic issues through either a highly developed classical project-oriented society or a

215 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

knowledge society. However, integrating these societies into a holistic project-knowledge society set up the
appropriate foundation to successfully meet today’s challenges.

4. Developing holistic R&D project managers

4.1. Project management as a science and as a profession

Project management should have crucial role in development of holistic project-oriented society being
considered both as highly skilful profession and as interdisciplinary science. Namely, project management allows
linking different fields of science into functional interdisciplinary R&D applicable in companies as well as in
public services and academia. On the individual level project management could enhance career development and
eventually promote holistic project-oriented and knowledge-based society (Table 1).

Table 1. Project management as an interdisciplinary science and as a profession.

Project management

as interdisciplinary
science

as highly skillful
profession

Individual level Development of
research and/or
academic career

Achieving project
goals individually
and/or as a team
member

Company or institutional level Functional,
interdisciplinary
integration of
basic and applied
research with
manufacturing and
service providing
activities

Project business
orientation
following
international
standards and
implementing
performance-
awarding system
of project
management

Society level Development of
knowledge-based
society

Development of
project-oriented
society

Major activity Research and
development
(R&D)

Education
(specialization)

As shown in the table, project management should be used to establish the knowledge-based society and to
develop it further as holistic project-oriented society. Project management should be used on all societal levels; on
individual, company/institutional and eventually on the level of entire society. To make this possible it is necessary
to implement education in project management skills on all levels of education, including life-long learning on
project management also as a science, in particular for the R&D. By doing so, we may reach the level of the
knowledge-based society tending to promote creativity and continuous development for the benefit of all members
of society.

4.2. Holistic project managers from “B.A.Kr eli ” Accredited College of Business and Management

Products in higher education can be different (Štimac, 2012):

216 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

• knowledge that is offered at colleges and through educational programs,
• students which come out from the educational process as a faculty’s “finished product”,
• all necessary resources and infrastructure in order to better convey knowledge to students (lectures, seminars,

professional practice, equipment, etc.).

Higher education is mainly about performing services, which are particularly challenging due to their
characteristics (intangible, variable, inseparable, unable to be put into warehouse). Most services occur only in
contact with the customer. Restrictions that services have in relation to the product include the “power” of services
that service providers need to transform into a competitive advantage (Štimac, 2012). Higher education institutions
use a variety of resources and technology to create a particular benefit to individuals and society as a whole. The
product of these institutions can be called educational services. So, we can say that the product or services of
higher education institutions can be defined in many ways, and each of the specific aspects must meet basic quality
criteria. All aspects are interdependent and their combination makes the product mix (Leko Šimi , & arapi ,
2008).

Taking into account the above elements that make the product/service in higher education, we are focusing on
the curriculum and the additional services to present qualities of Specialist graduate professional study Project
management.

Study’s program curriculum
Project Management study on the VSPU lasts for 2 years (4 semesters), and the curriculum consists of 12

compulsory and six elective courses in the first year of study and 7 compulsory and 6 elective courses in the
second year of study. Last semester consists of consultative sessions and the preparation and defense of the thesis
under the guidance of mentors.

Required courses are: Project Management 1, Business Ethics, Specialties and Methods of Research and
Development Activities, Teamwork Methods, English 1, Project Management Information Support, Project
Management 2, Planning/Preparation/Launching of the project, Project Economics, Projects Risk Management,
Human Resources Management, English 2, Strategic Management, Managing innovation and scientific research in
the EU and Croatia, Knowledge-based Companies, Intellectual Property, Project Applications, Legal Aspects of
Internet Business , Projects Marketing.

Elective courses are: Croatian Public Administration and the EU, Changes in the Organization and Stress,
German 1, Business Communication, Multimedia Communications, German 2, Development and Operation of
Public Sector, Management of Public Sector, Projects in the EU, Managing Budgets, Projects and Business Plans
in Research and Development Work, Fundamentals of Scientific Entrepreneurship.

Study’s additional services
In addition to the shortly presented curriculum of the Project Management study on the VSPU, a range of

additional services (based on a marketing concept of operations) are also offered to students, in order to raise the
overall quality and outcomes of the educational services.

Most of these additional services results from the collaboration with partner organizations, such as:
• Croatian Association for Project Management (CAPM): IPMA International certification for project managers;

IPMA Registered Education Program (IPMA REG); the opportunity to participate on the projects of Young
Project Managers Section called Young Crew Croatia (YCC), operating within CAPM; participate in fee-free
lectures under organization of CAPM and YCC.

• Fachhochschule Technikum Wien (FTW): VSPU initiated collaboration with Fachhochschule Technikum Wien
in 2012. FTW is the largest technical university of applied sciences in Austria. All programs are based on a
solid theoretical foundation, while also with strong practical orientation. VŠPU students are enabled to attain
additional 4 ECTS credits on the FTW, recognized in their Project Management study on VŠPU.

• Faculty of Economics in Osijek (EFOS): From 2010 VSPU students have the opportunity to continue studying
at postgraduate level in the organization of the EFOS. In this way, Project Management students have
possibility of direct continuing and vertical education, with the final possibility of obtaining a doctoral degree.

217 Neven Žarković et al. / Procedia – Social and Behavioral Sciences 119 ( 2014 ) 210 – 218

• The ERASMUS program: students, teaching and non-teaching staff will shortly be able to increase their
mobility within the Erasmus program. VSPU assigned to the Extended Erasmus University Charter based on the
decision of the Executive Agency for Education, Audio-visual and Culture of the EU in Brussels. Mobility will
be applied in the academic year 2013./14.

5. Conclusion

Establishing the knowledge-based, project-oriented society should be primary goal of undoubtedly prominent
scientific experts in research and education together with project managers working on scientific projects and
programs. The work of these experts should be based on democratic principles and open to the public to achieve
the vision of the holistic project-knowledge society. However, bureaucracy, which cannot be avoided nowadays,
together with short-term interests of political oligarchs are opposing creation of holistic project-knowledge society.

To attenuate harmful consequences of this obstruction of development of holistic project-knowledge society it is
necessary to establish efficient contingency plans that would overcome various administrative measures imposed
by political bureaucrats aiming to control both scientists and entrepreneurs. Efficient system attenuating such
malicious bureaucracy could be education of sufficient number of high level project managers understanding the
vision of the knowledge based, project-oriented society thus building holistic project-knowledge society. This is
the ultimate goal of the Specialist graduate professional study of Project management at the “B.A.Kr eli ”
Accredited College of Business and Management in Zapreši , Croatia.

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