News from the IPL
ANNOUNCEMENTS
Dan Breznitz awarded Balsillie Prize for Public Policy
IPL Co-director and University of Toronto University Professor Dan Breznitz has been awarded the Balsille Prize for Public Policy by the Writers’ Trust of Canada for his latest book, Innovation in Real Places: Strategies for Prosperity in an Unforgiving World, published by Oxford University Press.
David Wolfe nominated to the Scientific Advisory Committee of the Council of Canadian Academies
IPL Co-director David Wolfe was recently nominated to serve on the Scientific Advisory Committee of the Council of Canadian Academies. The role of the Scientific Advisory Committee is to advise the CCA’s Board on assessment topics, expert panel composition, and peer review.
Dan Breznitz appointed Clifford Clark Visiting Professor at the Department of Finance
University Professor and IPL Co-Director Dan Breznitz has been appointed as the Clifford Clark Visiting Economist at the federal Department of Finance. Professor Breznitz holds the Munk Chair of Innovation Studies at the University of Toronto’s Munk School of Global Affairs & Public Policy and is a professor in the Department of Political Science. He is a CIFAR fellow, where he co-directs the program on Innovation, Equity and the Future of Prosperity. Professor Breznitz is known around the world as an expert on rapid-innovation-based industries and their globalization. His latest book, Innovation in Real Places: Strategies for Prosperity in an Unforgiving World, was chosen by the Financial Times as one of the Best Business Books of 2021 and has been shortlisted for the inaugural Balsillie Prize for Public Policy. The Department of Finance created the Clifford Clark Visiting Economist role in 1983 to bring in fresh outside policy perspectives. The visiting economists work closely with the Deputy Minister and Ministers to share their views and help shape thinking for the future. During his time with the Department of Finance, Dr. Breznitz expects to focus on developing advice centred on economic growth and innovation policy.
RECENT EVENTS
Watch the recording here
RESEARCH
Designing Innovation Policy Mixes to Support High Growth Firms
Kieron Flanagan, Steven Denney, Adam Froman, Krista Jones, & David A. Wolfe,
This talk includes a presentation of a paper by IPL researchers Steven Denney, Travis Southin, and David A. Wolfe titled “Picking Winners: How Growth and National Context Shape Scale-up Entrepreneurs’ Assessments of Innovation Policy Mixes.” Despite today’s challenging conditions, Canada continues to identify and support high-growth firms with a view to increasing its market share. High-growth firms not only hire more employees, but they noticeably lead in productivity and innovation—especially in the digital and clean technology sectors. Lately, there has been an increase in unicorn companies and initial public offerings, leaving Canada to build upon this momentum and not lag behind other countries. This event examines what high-growth firms represent to the Canadian economy and why innovation is so difficult to support through government programs. Participants will learn about the barriers that prevent companies from becoming high-growth firms, the potential of program evaluation for identifying the next generation of high-growth firms, and the various ways policy instruments can be improved.
Speakers
- Kieron Flanagan, Professor of Science and Technology Policy, Alliance Manchester Business School – Innovation Management and Policy Division, University of Manchester (pre-recorded interview)
- Steven Denney, Post-Doctoral Fellow, Innovation Policy Lab, Munk School of Global Affairs and Public Policy, University of Toronto (pre-recorded interview)
- Adam Froman, Founder and Chief Executive Officer, Delvinia
- Krista Jones, Founding Executive, Momentum, and Vice President, Venture Services, MaRS Discovery District
- David A. Wolfe, Co-Director, Innovation Policy Lab, Munk School of Global Affairs and Public Policy, and Professor of Political Science, University of Toronto
Moderator
Neil Bouwer, Vice-President, Innovation and Skills Development Branch, Canada School of Public Service
What Silicon Valley Gets Wrong about Innovation
Dan Breznitz
IPL Co-Director Dan Breznitz leads a forum in a new edited volume focused on how local economic development might foster long-term, inclusive prosperity. Dan argues that in today’s world of globally fragmented production and dominating high-tech clusters, efforts to duplicate silicon valley don’t raise all boats. To generate local, inclusive prosperity, cities must think beyond tech accelerators and science parks and instead embrace a wider range of innovation strategies. This forum is part of a new Boston Review book titled Public Purpose: Industrial Policy’s Comeback and Government’s Role in Shared Prosperity. The book’s other forum is led by economist Mariana Mazzucato and articulates an industrial policy agenda organized around ambitious, cross-sector “missions,” designed around important national goals. The authors in this volume collectively argue for “putting public purpose at the center of our politics and policy.” Excerpts from the authors participating in Mariana Mazzucato’s forum are available online here.
Canada as a Learning Economy: Education & Training in an Age of Intelligent Machines Policy Challenges & Policy Responses
Tracey M. White and David A. Wolfe
This SSHRC funded Knowledge Synthesis Report was prepared by U of T Political Science PhD Candidate Tracey White and IPL Co-Director David A. Wolfe. Literature analyzed here illuminates the nature of adult education, learning and skills development and forms of work organization as factors in Canada’s innovation performance. In the World Economic Forum’s 2017-18 Global Competitiveness Survey Canada ranked 23rd on its ‘capacity for innovation’ metric. If this country is to have a prosperous, innovative economy then the skills and ingenuity of its people matter. Skills development opportunities for Canadians beyond the formal pre-career education systems are inadequate to meet the demands of a rapidly digitizing economy. It is increasingly clear that Canada’s fragmented approach to adult education is an impediment to labour market flexibility and social mobility on which the digital economy depends. Canada’s labour market institutions were developed to meet the needs of an industrial economy. The moment has arrived to re-imagine them to support Canada as a learning economy. This report reviews the approach of the Danish innovation system to provide an alternative example. It urges Canadian policymakers to make development of human resources a higher priority by reinvigorating labour market governance arrangements and realigning incentives to meet the needs of a digital economy.
How Stories Shape Regional Development: Collective Narratives and High-Technology Entrepreneurship in Waterloo, Canada
Darius Ornston, IPL Affiliated Faculty
The Waterloo region in Canada has emerged as an unlikely competitor in high-technology markets, challenging theories based on path dependency, population density, anchor firms, and military spending. While theorists and residents attribute the rise of high-technology entrepreneurship to cooperation, evidence of collaboration is sparse. This article resolves this puzzle by explaining how ideas can coordinate action in loosely coupled systems. Dense, cross-cutting civic networks may not have supported task-specific cooperation, but they facilitated the construction and diffusion of collective narratives. Conventionally understood to leverage locational assets, the Waterloo case demonstrates how storytelling can also soften geographic constraints. Success stories inspired entrepreneurs by re-conceptualizing what was possible, peer-to-peer mentoring helped firms to navigate local constraints, and external marketing enabled the region to access resources it could not mobilize internally. By documenting the importance of storytelling as a form of collective action, the Waterloo case illuminates a broader array of strategies available to local change agents and smaller regions.
Editor's Pick
Florian Wittmann, Florian Roth, Miriam Hufnagl, Merve Yorulmaz, Ralf Lindner, Fraunhofer ISI
This second Mission Analysis Report (MAR2) of the German Hightech Strategy 2025 by Fraunhofer ISI focuses on the design process of translating Mission Oriented Innovation Policies (MOIP) into specific policy instruments. The report focuses on four selected missions (Combating Cancer, Reducing CO2 emissions in industry, Circular Economy, Ensuring good living and working conditions throughout the country) . It explores how mission goals are linked to policy instruments, with the aim to understand how mission goals translate into activities. The authors developed mission–specific impact pathways that describe the anticipated pathways for goal achievement and explored how different instruments contribute to the postulated mission goals. Regarding research on MOIP in general, this report revealed the need for a more systematic approach towards the study of instrument mixes. The analysis demonstrates the need for further discussion of issues such as the role of policy layering, the delineation of mission–specific instruments, the multidimensionality of instruments and the interplay of different instruments to make these concepts usable for MOIP.
Cities & Regions
Special Issue: Industry 4.0 in firms, clusters and regions: the new digital imperative
Jose-Luis Hervas-Oliver, Eleonora di Maria, and Marco Bettiol, Competitiveness Review
Issue 31.1 of Competitiveness Review, led by Jose-Luis Hervas-Oliver from the Universitat Politècnica de València and by Eleonora di Maria and Marco Bettiol, is a special issue which features eight (8) papers and a Guest Editorial on “Industry 4.0 in firms, clusters and regions: the new digital imperative”. This special issue is free to access from 28th November 2021 until 1st January 2022. The intro to the special edition notes that “further theoretical and empirical research is needed to illuminate the intricate relationship between Industry 4.0 and digital transformation and innovation and competitiveness in firms, industrial clusters and regions…[to] benefit scholars, innovation practitioners, cluster managers, regional planning officials, policymakers and entrepreneurs alike.”
European Commission
The Commission launched today a call for expression of interest addressed to cities to join the European Mission on Climate-Neutral and Smart Cities. The objectives of the mission are to achieve 100 climate-neutral and smart European cities by 2030 and to ensure that these cities act as experimentation and innovation hubs to enable all European cities to follow suit by 2050. Based on proposals that the Mission Boards handed over to the Commission in September 2020, five missions were identified in the Horizon Europe Strategic Plan. Horizon Europe provides initial funding to missions of up to €1.9 billion until 2023, including €359.3 million for the Cities Mission. Since the official launch of the Cities Mission on 29 September, preparatory work to start implementation of the mission has advanced fast. The NetZeroCities consortium, tasked with establishing and implementing the work of the Mission Platform, started its work on 1 October.
Statistics
Roland Tricot, OECD
New analysis of global investments by venture capitalists (VC) in private companies focused on artificial intelligence (AI) found VC investments in AI to be growing at a dramatic pace. The United States and the People’s Republic of China are leading this wave of investments that tend to concentrate on a few key industries. The data showed that the European Union, United Kingdom and Japan increased investments, but lag behind the two dominant players. The study analysed venture capital investments in 8 300 AI firms worldwide, covering 20 549 transactions between 2012 and 2020, based on data provided by Preqin, a private capital-markets analysis firm in London.
Intangibles and industry concentration: Supersize me
Matej Bajgar, Chiara Criscuolo and Jonathan Timmis, OECD
This paper presents new evidence on the growing scale of big businesses in the United States, Japan, and Europe. It finds broad evidence of rising industry concentration across the majority of countries and sectors over the period 2002 to 2014. Rising concentration is strongly associated with intensive investment in intangibles, particularly innovative assets, software, and data. This relationship appears to be stronger in more globalised and digital-intensive industries. The results are consistent with intangibles disproportionately benefiting large firms and enabling them to scale up and increase market shares. The authors find nuanced implications of these new business models for competition – rising markups and reduced churning among the top firms, but falling industry prices.
Innovation Policy
Bipartisan infrastructure act includes billions for regional innovation
SSTI
This post summarizes some of the mail technology and innovation initiatives in the recently-passed US Infrastructure and Investment Jobs Act. While small as a percentage of the trillion-dollar total, there are a number of proposed items that can support regional innovation economies, with broadband being the highest funded. Other proposals of interest include funding that will stimulate demand for clean energy innovations, further cybersecurity development and reauthorizing the Minority Business Development Agency (MBDA).
Policy Digest
The Senate Prosperity Action Group
This recent report from the Senate The Prosperity Action Group (PAG) explores policy options for ensuring that Canada can achieve sustainable, inclusive and shared prosperity. The PAG was formed in the fall of 2020 from the ranks of senators belonging to caucuses ranging across the Upper Chamber. Created at the height of the coronavirus pandemic, the PAG’s objective was “the development of a plan for how Canada could pursue a successful post-pandemic recovery.” However, the authors note that “as we listened to the advice of distinguished individuals who presented to us, it became clear that a recovery would not reach its full potential without also tackling many pre-existing economic and social challenges facing the nation.” Therefore, the report sees the pandemic as a “jumping-off point for discussions that could lead to a vision for economic growth in which we could all share.”
The PAG makes the following recommendations as part of its call for the need to develop a national economic growth strategy:
REINVIGORATING THE BUSINESS ENVIRONMENT
Canada needs to review its structural, fiscal and framework (e.g. competition and regulatory) policies.
STRENGTHENING HUMAN CAPITAL FORMATION
Active labour market policies that complement skills development and education, as well as leveraging our immigration programs to attract top talent.
A BOLD PATH TO TRANSITION TO A LOW-CARBON/NET ZERO ECONOMY
Actively consult and work with the carbon-intensive industries and other stakeholders with a view to developing flexible policies, including carbon pricing regimes that balance environmental and economic goals, and provide support to firms, individuals and communities during the transition period.
BECOMING A WORLD LEADER IN THE DIGITAL AND INTANGIBLES ECONOMY AS PART OF THE TRANSITION TO THE FOURTH INDUSTRIAL REVOLUTION
Creating an ecosystem that allows innovative companies to scale up to compete globally; positioning our companies strategically within our procurement systems; protecting our data and Intellectual Property (IP) ownership; facilitating access to capital including encouraging our financial institutions as well as Canadian pension plans to invest in domestic companies; building better partnerships between academic institutions and businesses; and encouraging and incentivizing our best talent to stay here.
CREATING SUSTAINABLE, INCLUSIVE AND SHARED PROSPERITY
Adopt an “inclusive approach” that generates prosperity for all people and regions across Canada and especially those previously left behind, as well as establish a national independent culture commission.
INVESTING IN PRIORITY AREAS THAT IMPROVE ECONOMIC PRODUCTIVITY AND GROWTH
PAG recommends that all Canadian governments focus on a set of strategic investments that include:
(i) labour market training and educational support programs;
(ii) proposed early learning and childcare programs;
(iii) increased spending on R&D including “high-risk” and “mission-driven” research;
(iv) closing the infrastructure gap in areas such as digital and trade infrastructure;
(v) potentially co-investing with venture capital on commercialization opportunities (biotech, clean energy, carbon capture and storage); and
(vi) supporting entrepreneurship and “scaling-up” of Canadian based firms
Links to recent IPL webinars
Canada’s Quantum Internet: Prospects and Perils
This is a recording of the April 20, 2021 webinar that together experts to discuss the political, economic, and scientific implications of quantum communications, for Canada and the world .Speakers: Francesco Bova, Associate Professor, Rotman School of Management, University of Toronto; Anne Broadbent, Associate Professor, Department of Mathematics and Statistics, University of Ottawa; Jon Lindsay, Assistant Professor, Munk School of Global Affairs & Public Policy and Department of Political Science, University of Toronto; Christoph Simon, Professor and Associate Head, Research, Department of Physics and Astronomy, University of Calgary; & Dan Patterson (moderator), Technology Reporter, CBS News
Intellectual Property and Entrepreneurship in Canada
This is a recording of the March 23rd 2021 webinar focused on the importance of IP protection for entrepreneurship, the intellectual property environment in Canada, and existing support for firms. Panelists discussed issues relating to their firm’s ability to secure IP especially as it relates to IP education and the role of government in supporting IP protection. Speakers: Seray Çiçek, Ryan Hubbard, Graeme Moffat, Moderator: Shiri Breznitz
Canada’s future skills strategy: Workforce development for inclusive innovation
This is a recording of the January 19th 2021 webinar discussing the Future Skills Council report, released in November 2020, which recommends equitable and competitive labour market strategies in response to disruptive technological, economic, social and environmental events. It aims to provide a roadmap to a stronger, more resilient future for Canada. In this webinar, panelists discuss the report’s key action areas and pathways to successful implementation. Speakers: Rachel Wernick, Denise Amyot, Dan Munro, & David Ticoll.
Events
Transformative Innovation Policy (TIP) Conference 2022
January 17-21, 2022, Digital Conference
The 2022 Transformative Innovation Policy (TIP) Conference is asking for a wide range of participants from across many disciplines and fields to submit ideas for panels, demonstrations, initiatives, and projects that work towards transformations for sustainability and a just transition. The ‘Call for Initiatives’ is open now until 4 September 2021 and encourage Expressions of Interest (EoI) from a wide set of contributors across research, civil society, business and policy. This is a short extension so please get your EOI in as soon as possible. The theme is “BUILDING A SUSTAINABLE KNOWLEDGE INFRASTRUCTURE ON TRANSFORMATIVE INNOVATION POLICY.” The aim of the sessions is to be a symphony of approaches and collaborations to mix-up the conference dynamic and offer a chance to experiment with building knowledge infrastructures and exchanges across sectors and disciplines to activate transformational system change to solve our Earth crisis. The TIP Conference 2022 is organised and funded by the Transformative Innovation Policy Consortium (TIPC) and the European Forum for Studies of Policies for Research and Innovation (Eu-SPRI) with the participation of Globelics and Africalics members and with the involvement of Sustainability Transitions Research Network (STRN) members.
6th Geography of Innovation Conference
January 26-28, 2022, Bocconi University, Milan
The conference brings together leading scholars on the spatial dimension of innovation processes. It is a forum for interdisciplinary research on this topics, including perspectives from economic geography, innovation economics, and regional science, as well as economics and management science, sociology and network theory, and political and planning sciences.
P4IE 2022 International Conference Measuring Metrics that Matter
May 9-11 2022, Ottawa and Online
How to best design innovation indicators for the future? You are invited to contribute to this challenging question during our second international conference on “Policies, Processes and Practices for Performance of Innovation Ecosystems” (P4IE). The hybrid conference will be held online and in-person at Ottawa. You can actively participate by submitting an academic, industry or public policy paper. Topics includes, but are not limited to: New/Real-time innovation indicators; Sustainable, Inclusive, Responsible (SIR) innovation indicators; Measuring the performance of innovation ecosystems; and Science-to-innovation SIR innovation indicators. Submissions of academic extended abstracts due by December 13, 2021 (acceptance notification by February 15). Submissions of policy papers due by January 14, 2022 (acceptance notification by February 14). Submissions of industrial papers due by February 14, 2022 (acceptance notification by March 14).
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This newsletter is prepared by Travis Southin.
Project manager is David A. Wolfe