News from the IPL
INTRODUCTION
This newsletter is published by The Innovation Policy Lab at the Munk School of Global Affairs, University of Toronto, and sponsored by the Ministry of Research and Innovation. The views and ideas expressed in this newsletter do not necessarily reflect the views and policies of the Ontario Government.
ANNOUNCEMENTS
New Office of Innovation and Entrepreneurship to be Created within the US Department of Commerce
U.S. Commerce Secretary Gary Locke recently announced plans to create a new Office of Innovation and Entrepreneurship within the Department of Commerce and launch a National Advisory Council on Innovation and Entrepreneurship. Both new initiatives will help leverage the entire federal government on behalf of promoting entrepreneurship in America. The new office is expected to announce additional initiatives in the coming months. The new Office of Innovation and Entrepreneurship, which will answer directly to the secretary, will be geared toward the first step in the business cycle: moving an idea from someone’s imagination, or from a research lab, into a business plan. The National Advisory Council on Innovation and Entrepreneurship will advise the Commerce Department on policy relating to building small businesses and help to keep the department engaged in a regular dialogue with the entrepreneurship and small business communities. The council is expected to be comprised of successful entrepreneurs, innovators, investors, non-profit leaders and other experts.
Peter Carbone, Chair of the Board of Coral CEA recently announced that the National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) has provided a financial contribution to further Coral CEA’s ecosystem model of commercialization. Coral CEA’s commercialization model involves qualifying and developing emerging businesses, providing them with commercialization support and technology building blocks to differentiate their offers in the marketplace. It also brings customers and investors to the table and provides the opportunity for investment in lead projects to fill gaps in the commercialization process. Coral CEA is focussing its technology building blocks on Communication Enabled Applications, the next generation of ICT. Coral CEA has a unique commercialization model with potential for massive innovation and creation of knowledge jobs. NRC-IRAP’s financial support to Coral CEA will help accelerate its implementation and investment in qualified companies that graduate from the Lead to Win program. NRC-IRAP’s collaboration with Coral CEA is expected to help create more new companies.
UK to Invest £2.5 million in Innovation for Industrial Biotechnology
The Technology Strategy Board is to manage a £2.5 million investment program on behalf of the Government aimed at stimulating innovation in the UK’s industrial biotechnology sector, and is encouraging small and medium-sized companies to apply for funding. The aim of the competition, which is funded by the Department for Business, Innovation and Skills (BIS), is to encourage the development and commercialization of innovative processes that will generate high value chemicals through industrial biotechnology.
Editor's Pick
Building New York City’s Innovation Economy
Center for an Urban Future
This report concludes that New York City has long failed to harness the economic development potential of its pre-eminent academic research institutions-an enormous missed opportunity given that the city desperately needs to diversify its economy and cultivate new engines of job growth. The study shows that many of the city’s leading universities and nonprofit research centers have lagged behind their peers elsewhere when it comes to turning scientific breakthroughs into start-up enterprises, a major reason that the city has failed to develop a decent-sized innovation economy. While there are many causes for this deficiency, the report finds that the institutions themselves have been a big part of the problem; the leaders of many of the city’s universities and nonprofit research centers have not done enough to support spin off tech ventures, have dedicated too few resources to engineering programs and have failed to create mechanisms for scientists to cross- pollinate with engineers, investors and experienced tech entrepreneurs.
Innovation Policy
Stronger Together: Business and Universities in Turbulent Times
CBI Higher Education Task Force
Universities are a vital public good, making a crucial contribution to the intellectual, cultural, social and economic well-being of the UK. They play an essential role in ensuring that the country has the skills and knowledge necessary for its long-term success. This report sets out what business wants from higher education (HE), and how it can work with government and universities to improve outcomes. Universities are vital to the success and competitiveness of industries and business, but they have other important stakeholders. The report calls on the business community to do more to support students and graduates, to develop closer partnerships with universities on research and innovation activity, and to find better ways of communicating with HE. Businesses will benefit and must therefore contribute more.
Driving a Digital Recovery: IT Investments in the G-20 Stimulus Plan
Scott Andes and Daniel Castro, ITIF
The global economic downturn has threatened the welfare of tens of millions of individuals due to declining levels of consumer spending, business investments and, in some cases, exports. In response to these economic conditions, many countries have implemented fiscal stimulus plans to lessen the impact of the recession and boost economic recovery. In the past, one typical response to this type of economic crisis would be to increase investments in physical infrastructure, such as roads, bridges and sewer systems. However, in the new global economy, information technology (IT) is the major driver of not just economic growth, but also of improved quality of life. While many countries can still benefit from improvements in physical infrastructure, spurring investments in digital infrastructure can have a greater positive impact on job creation, while at the same time laying the groundwork for increases in productivity, innovation, and quality of life. This report reviews the benefits and opportunities of including IT investments in a fiscal stimulus package. In addition, it assesses the degree to which the G-20 countries have invested in IT as part of their fiscal stimulus plans.
Responding to the Economic Crisis: Fostering Industrial Restructuring and Renewal
OECD
Nearly all OECD countries have suffered a fall in GDP and, trade flows and increased unemployment rates due to the global economic crisis. The sharp declines in trade, foreign direct investment and access to international financing pose a risk to the global supply chains that underpin innovation. These supply chains are critical sources of new knowledge and learning for firms. They provide companies with technical expertise, knowledge of foreign markets, critical business contacts and international partners. Moreover, an economic crisis caused by a severe drop in demand can have negative implications for long-term economic growth.The impacts of the crisis are particularly visible in certain industries, such as the automobile industry and the construction sector. In the automobile industry, demand has fallen rapidly as consumers and firms have postponed costly purchases. Many firms are struggling to remain competitive in an environment where competition, legislation and customer demand for more efficient cars and more value for money were already putting pressure on existing business models prior to the crisis. The construction sector is also faced with a considerable slump in consumer and investment demand, and has long struggled with low labour productivity growth, partly linked to the nature of innovation in an industry where many projects are unique. In both industries, concerns over overcapacity have increased since the crisis. However, the crisis also provides an opportunity for both governments and the private sector to transform these sectors. This report explores the challenges and opportunities facing auto and construction industries as a result of the economic crisis, and suggests potential strategies for reform.
Designed to Change: End-to-End Arguments, Internet Innovations, and the Net Neutrality Debate
Richard Bennett, ITIF
Many advocates of strict net neutrality regulation argue that the Internet has always been a “dumb pipe” and that Congress should require that it remains so. This report reviews the historical development of the Internet architecture and finds that contrary to such claims, an extraordinarily high degree of intelligence is embedded in the network core. Indeed, the fact that the Internet was originally built to serve the needs of the network research community but has grown into a global platform of commerce and communications was only made possible by continuous and innovative Internet engineering. This report traces the development of the Internet architecture from the CYCLADES network in France to the present, highlighting developments that have implications for Internet policy. This review will help both engineers and policymakers separate the essentials from the incidentals, identify challenges to continued evolution, and develop appropriate policy frameworks.
Cities, Clusters & Regions
Edward L Glaeser, William R. Kerr, and Giacomo A.M. Ponzetto, NBER
Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence on sales per worker does not support the higher returns for entrepreneurship rationale. The evidence reported in this paper suggests that entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people.
Playing for Keeps: Boosting Western Canada’s Economic Competitiveness in the Post-Recession World
Roger Gibbins and Robert Roach, Canada West Foundation
Western Canada (BC, Alberta, Saskatchewan, Manitoba, Yukon, NWT and Nunavut) is a dynamic regional economy with a highly educated labour force, a rich endowment of natural resources, a large and vibrant service sector and a combined GDP that places it among the 20 largest economies in the world. The region is an integral part of the national economy and has been the key source of national economic growth for several years. The success of the western Canadian economy, however, depends on its ability to stay competitive in the global marketplace. The region is well-equipped for this competition, but it cannot rest on its past achievements or it will find itself overtaken by a long list of competitors. Just like every other region and country in the world, the West must be constantly improving its economic game—from education and transportation infrastructure to business acumen and profitability. The prime mover of the region’s economic success is the individuals and businesses that take risks in the free market. Governments, however, also have a role to play and this report suggests ways that they can facilitate and sustain the region’s economic performance through proactive public policy action
Statistics & Indicators
MetroMonitor: Tracking Economic Recession and Recovery in America’s Largest 100 Metropolitan Areas
The Brookings Institution
The differences in economic performance among the metropolitan areas with the largest populations are vast, as a few metros already are emerging from the recession and others are in danger of being left behind, according to this report. To be issued every quarter,MetroMonitor: Tracking Economic Recession and Recovery in America’s 100 Largest Metropolitan Areas examines changes in employment, unemployment rate, gross metro product (GMP), housing prices and foreclosed properties.
Policy Digest
A Strategy for Amercian Innovation: Driving Towards Sustainable Growth and Quality Jobs
Executive Office of the President, National Economic Council Office fo Science and Technology Policy
Since taking office, President Obama has taken historic steps to lay the foundation for the innovation economy of the future. The Obama Innovation Strategy builds on well over $100 billion of Recovery Act funds that support innovation, additional support for education, infrastructure and others in the Recovery Act and the President’s Budget, and novel regulatory and executive order initiatives. It seeks to harness the inherent ingenuity of the American people and a dynamic private sector to ensure that the next expansion is more solid, broad-based, and beneficial than previous ones. It focuses on critical areas where sensible, balanced government policies can lay the foundation for innovation that leads to quality jobs and shared prosperity. The white paper has three parts:
1. Invest in the Building Blocks of American Innovation
It is important to ensure that the economy is given all the necessary tools for successful innovation, from investments in research and development to the human, physical, and technological capital needed to perform that research and transfer those innovations.
- Restore American leadership in fundamental research. President Obama implemented the largest increase in basic R&D in history, which will lay the foundation for new discoveries and new technologies that will improve our lives and create the industries of the future;
- Educate the next generation with 21st century knowledge and skills while creating a world-class workforce. President Obama has proposed initiatives to dramatically improve teaching and learning in K-12 education, expand access to higher education and training, and promote student achievement and careers in STEM (Science, Technology, Engineering, and Mathematics) fields;
- Build a leading physical infrastructure. Through the Recovery Act, the President has committed to a historic investment in our nation’s roads, bridges, transit, and air transportation networks to connect our people and our businesses;
- Develop an advanced information technology ecosystem. For America to lead the world in the technologies of the future, President Obama believes that all Americans must have affordable 21st century access to the Internet.
2. Promote Competitive Markets that Spur Productive Entrepreneurship
It is imperative to create a national environment ripe for entrepreneurship and risk taking that allows U.S. companies to be internationally competitive in a global exchange of ideas and innovation. Through competitive markets, innovations diffuse and scale appropriately across industries and globally.
- Promote American exports. Exports will play an increasingly critical role in the future of the American economy, and the President’s plans will ensure fair and open markets for American producers;
- Support open capital markets that allocate resources to the most promising ideas. Open capital markets are one of the greatest strengths of the American economy, and the President is committed to making sure these markets work.
- Encourage high-growth and innovation-based entrepreneurship. The Obama Administration believes it is essential that entrepreneurs continue to create new and vibrant businesses that lead to new jobs and economic growth;
- Improve public sector innovation and support community innovation. Innovation must occur within all levels of society, including the government itself. The Obama Administration supports the broad adoption of community innovations that work and is committed to making government perform better and more efficiently, including by working more openly.
3. Catalyze Breathroughs for National Priorities
There are certain sectors of exceptional national importance where the market is unlikely to produce the desirable outcomes on its own. These include developing alternative energy sources, reducing costs and improving lives with health IT, and manufacturing advanced vehicles. In these industries where markets may fail on their own, government can be part of the solution.
- Unleash a clean energy revolution. Historic investments in smart grid, energy efficiency, and renewable technologies like wind, solar, and biofuels will help unleash a wave of ingenuity and progress that creates jobs, grows our economy, and ends dependence on oil;
- Support advanced vehicle technologies. Record battery grants announced last month are part of a concerted effort to place the U.S. on the cutting edge of advanced vehicle technology, from electric cars to biofuels to advanced combustion;
- Drive innovations in health care technology. The President’s health IT initiative is designed to drive technological innovation that will help prevent medical errors, improve health care quality, reduce costs, and cement U.S. leadership of this emerging industry;
- Harness science and technology to address the “grand challenges” of the 21st century. The President’s commitment to science and technology will allow the United States to set and meet ambitious goals, such as educational software that is as effective as a personal tutor and smart anti-cancer therapeutics that deliver drugs only to tumor cells.
Events
Atlanta, 2-3 October, 2009
Science and innovation are aimed at change—new knowledge, new techniques, and fresh approaches to addressing the major challenges facing humanity. The 2009 Atlanta Conference on Science and Innovation policy will focus on ways that science and innovation policies can shape the future by setting goals such as safety, economic security, improved health, and environmental quality and by designing programs to reach these goals.
Learning Clusters: 12th TCI Annual Global Conference
Jyvaskyla, Finland, 12-16 October, 2009
Can clusters be learning organizations? How can learning clusters promote competitiveness for businesses and the regional economy in times of constant change? What are the disciplines of successful and dynamic clusters in the knowledge economy and network society? The 12th TCI Annual Global Conference aims to raise awareness and stimulate discussion of these issues in order to inspire sustainable clustering actions and better futures in clusters, businesses and regions.
Creative Spaces + Places: The Collaborative City
Toronto, 28-30 October, 2009
Creative Places + Spaces is one of the world’s leading forums on creativity. Under the theme of ‘The Collaborative City’, this year’s event will engage global perspectives on collaboration and connect them with local change makers. Come meet some of the most creative thinkers in Toronto’s exploration of the art and science of collaboration.
World Class Clusters: An International Innovation Policy
Sophia Antipolis, Turkey, 5-6 November, 2009
Conference themes explore policy thinking in France, Europe and foreign countries, how to cooperate, the objectives of collaborations for innovation, and presentations from the European Cluster Alliance Project and a European Cluster Observatory roundtable.
The Summit on Transforming Service Jobs
Toronto, 16 November, 2009
Please join Mayor David Miller, City of Toronto and Richard Florida, Director, Martin Prosperity Institute, at a summit to explore the challenges and opportunities for workers in our service economy. Attend this summit to learn more about important trends in our workforce and jobs in the creative age, particularly with respect to service occupations. Hear from leaders in business, academia, and organized labour. Participate in the discussion on how we can develop a service economy agenda with leading organizations from the Toronto region.
8th Annual Incubator Conference & Award: Best Practices in Science-Based Incubation
Stockholm, Sweden, 19-20 November, 2009
The program committee under chairmanship of Mikael Hult from Innovationsbron, Sweden has constructed an inspiring program: a well-balanced mix of international recognized experts, upcoming talent and unknown jewels in the field of business incubation. This year’s conference will be chaired by Peter Harman from UKBI and will have appearances from amongst others Dinah Adkins, NBIA, USA, Wang Rong, Shanghai Technology Business Incubation Association, China, Richard White, New Zealand Trade and Enterprise, R.M.P. Jawahar, ISBA, India and Heinz Fiedler, SPICE group, Germany. A special appearance this year will be made by Jan-Eric Sundgren, senior vice president of Volvo. The conference has speakers from four continents and more than 20 countries.
Edmonton, 24-25 November, 2009
Innovation is the main driver of economic growth around the world. In western Canada, innovation has created value added opportunities both in the resource sector and by the creation of new high technology enterprises. Increasing globalization has created opportunities and threats for western Canadian based companies. The financial and economic crisis has created insecurity and restructuring. At the same time, environmental issues are becoming more pressing, and innovations will be needed to solve them. But history shows that major innovations often get their start in times of turmoil. This conference will address a number of questions including how the western Canadian economy looks from a global perspective; how collaboration may create wealth; how to make industries in the area more sustainable; how other jurisdictions are addressing these challenges; and what role the government should play in stimulating innovation and sustainability.
Global Recession: Regional Impacts on Housing, Jobs, Health and Wellbeing: Call for Papers
London, UK, 27 November, 2009
In recent years, issues of health and wellbeing have come to the fore in much public debate and policymaking. These related topics appear across a number of agendas and are significant elements in employment, housing, social inclusion, and social policy fields as well as under their own strategic and delivery areas. Not only do health, health service delivery, deprivation, happiness, incomes and wealth vary across countries and national boundaries, but also there are often strong regional and indeed local and neighbourhood differences. Although there is an established and well developed research landscape in these areas, they are often bound within particular disciplines so that other related interests are unaware of their existence and relevance to their own needs. As the global economy has entered a period of prolonged recession and uncertainty, it is timely to ask questions about the implications for people’s lives and livelihoods. The Regional Studies Association Winter Conference 2009 on Health, Housing, Jobs and Wellbeing presents an opportunity to discuss and debate these issues, to establish the research requirements and to address the concerns of practitioners and policymakers. The conference is keen to attract papers and sessions which address a broad active research and policy agenda, including contributions from any discipline which can offer insights at local and regional levels.
Entrepreneurship and Growth: The Role of Policy Reforms
Washington, DC, 19-20 November, 2009
This conference will address several topics such as the causal effects of institutional, regulatory, and fiscal reforms on entrepreneurial activity; the effects of financial, operational, and management constraints on entrepreneurship and policies that help alleviate these constraints; and the role of entrepreneurship in economic growth and development.
Stimulating Recovery: The Role of Innovation Management
New York, 6-9 December, 2009
Organised by ISPIM and hosted by The Fashion Institute of Technology this symposium will bring together academics, business leaders, consultants and other professionals involved in innovation management. The symposium format will include facilitated themed sessions for academic and practitioner presentations together with interactive workshops and discussion panels. Additionally, the symposium will provide excellent networking opportunities together with a taste of local New York culture.
CALL FOR PAPERS – Innovation, Knowledge and Entrepreneurship: DRUID-DIME Academy Winter Conference
Aalborg, Denmark, 21-23 January, 2010
The conference is open for all PhD students working within the broad field of economics and management of innovation and organizational change. We invite papers aiming at enhancing our understanding of the dynamics of technological, structural and institutional change at the level of firms, industries, regions and nations. DRUID is the node for an open international network – new partners are always of interest (we of course encourage DRUID Academy PhD students and students connected to the ETIC PhD program to submit an abstract as well). Do not hesitate to apply even if you have not been in contact with DRUID previously.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.