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
Changes Made to the Automotive Innovation Fund
At a meeting of the Canadian Automotive Partnership Council (CAPC), the Honourable Tony Clement, Minister of Industry, introduced changes to the Government of Canada’s Automotive Innovation Fund (AIF) in order to increase investment in automotive research and development (R&D). The total investment threshold required to qualify for AIF funding has been lowered from the initial $300 million over five years to $75 million over the same time frame. The reduction to a $75-million threshold over five years is expected to attract additional strategic projects, which in turn will increase automotive R&D capacity in Canada and secure knowledge-based jobs.
Texas Prop 4 Commits US$500 Million Toward University Research
Texas leaders have fully embraced the importance that strongly supported top-tier research universities can serve for attracting and retaining high-wage technology companies and as drivers for future economic growth. With the recent passage of Proposition 4 by a solid 56.7 percent majority, it is evident the voting population of the Lone Star State gets it as well. Proposition 4 is a constitutional amendment establishing a national research university fund to help emerging research universities in Texas striving to achieve national prominence as major research universities. The pool of money, to be capitalized initially by an existing $500 million higher education fund, is to be “a dedicated, independent, and equitable source of funding” that is distributed by a yet-to-be-determined formula established by the legislature or an agency designated by the legislature. That said, the University of Texas at Austin and Texas A&M University, already tier one research institutions, are not eligible to receive any of the funds. The goal is to raise one or more of seven public universities to the same status: Texas Tech University; University of Texas at Arlington; University of Texas at Dallas; University of Texas at El Paso; University of Texas at San Antonio; University of Houston; and the University of North Texas.
Editor's Pick
The Martin Prosperity Institute
The music business is a fascinating example of a creativity-driven industry. Advances in manufacturing and sound recording technology mean that only a small part of the value of the final product – a compact disc or digital download – is generated by manufacturing and distribution. Instead, most of the costs of the music business today are incurred by creative work: writing, producing and performing the music; designing the packaging and branding; and marketing via blogs, magazines, videos and more. This emphasis on creative inputs makes the music industry an excellent research subject for improving our understanding of the geography (and other dynamics) of a broad range of creative industries, from software to medicine to media. While the public perception exists that Canada is a hot spot for music and musicians (from Neil Young to Shania Twain to Kardinal Offishall), a comparison with the global leader in music production – the United States – helps separate perception from reality. The most recent period for which detailed and directly comparable data are available is 2007. This Insight aims to provide an understanding of the dynamics of the business by focusing on one particular aspect: the differences between the music industries of Canada and the United States.
Innovation Policy
Science, Technology and Innovation: Delivering the Smart Economy
Department of Entreprise, Trade and Employment, Ireland
This report presents the results of the Irish strategy for science, technology and innovation to date. It demonstrates how investments to date have translated into job creation across a variety of sectors. It elaborates progress on a strategy to stimulate world-class research and capture and commercialize knowledge flowing from publicly funded research. It also focuses on stimulating interest in careers in science and technology and encouraging research in the public sector. It concludes that it is essential to continue to invest strategically in R&D.
Monitoring Progress Towards the European Research Area
ERAWatch
Openness and internationalization of national research systems and policies are gaining pace throughout the European Union. The various dimensions of this phenomenon get increased policy attention, and a host of recent initiatives show that this attention goes beyond declarations of intent and is turned into real action. ERA construction is progressing, but not much is known on the actual content and intensity of this evolution. This study sheds some light on this phenomenon, and provides guidance with a view to developing monitoring systems for ERA. Four broad messages emerge from the analysis of ERA developments across four specific areas (mobility initiatives, transnational partnerships and opening up of universities, opening of national R&D programmes, and joint R&D initiatives) in seven EU Member States.
Innovation and Social Capital: A Cross-Country Investigation
Soogwan Doh and Zoltan Acs, George Mason University
This study explores the impact of social capital on innovation by constructing a more general measure of social capital indicator consisting of generalized and institutional trust, associational activities and civic norms. It tests the hypothesis that social capital has a positive impact on innovation at the national level. After controlling for R&D expenditure and human capital there is a positive relationship between social capital and innovation. Social capital interacts with entrepreneurship and the strongest relationship is between associated activities and entrepreneurship. This is consistent with the need to build social relationships in today’s networked economy.
Cities, Clusters & Regions
Manufacturing 2.0: A More Prosperous California
The MIlken Institute
California is losing a battle with other states to retain and attract manufacturing jobs, a critical economic growth engine of California’s past and future that is often overlooked by residents and policy makers. According to the report, California had 21 percent fewer manufacturing jobs in 2007 than in 2000, compared with a decline of 20 percent nationally and 13 percent among seven states that are competing for the same types of manufacturing jobs. The report compares California’s performance and policies to those of seven “peer” states — Arizona, Indiana, Kansas, Minnesota, Oregon, Texas and Washington — chosen for their increasing share of U.S. manufacturing jobs and production, especially in high-tech manufacturing. The report looks at the time period of 2000 – 2007, the latest data available at the time of the research.
Statistics & Indicators
Best Performing Cities 2009: Where America’s Jobs Are Created and Sustained
The Milken Institute
Leaders in the 2009 index, which ranks U.S. metros based on their ability to create and sustain jobs, are all metros that succeeded in avoiding the worst of economic declines driven by falling housing markets and job losses in manufacturing and global trade. Regional economic factors also strongly influenced the rankings this year, with the oil and gas sector, technology and alternative energy providing stability among metros in Texas, North Carolina, Washington and Louisiana, which also benefited from low dependence on housing/construction. Austin in particular has been helped by its strong tech industry. It is the first metro to ever be ranked number one twice on the index, the last time being in 2000. The Best Performing Cities Index includes both long-term (five years) and short-term (one year) measurements of employment and salary growth. There are also four measurements of technology output growth, which are included because of technology’s crucial role in creating good jobs and driving regional economies.
Where Will the Jobs Come From?
Ewing Marion Kauffman Foundation
This study shows that newly created and young companies are the primary drivers of job creation in the United States. The distinction of firm age, not necessarily size, as the driver of job creation has many implications, particularly for policymakers who are focusing on small business as the answer to a dire employment situation. This report shows that most net job creation is generated by firms that are one to five years old. These firms create more net new jobs than their older counterparts, as well as a higher average number of jobs per firm. In some cases, these young firms grow into large companies employing thousands of people. Importantly, these companies could still fail at some point or be acquired by older and larger companies; or they could stop growing and remain the same size indefinitely. Some of these firms, meanwhile, continue to generate positive rates of net job creation at older ages.
Survey on US City Fiscal Conditions
The United States Conference of Mayors
Mayors from across the nation anticipate their cities will be in worse financial shape next year as sales tax revenue, revenue from service fees, and property tax revenues all are expected to decline. This survey indicate that while two out of three mayors expect budget shortfalls this year, four out of five are projecting shortfalls in their next fiscal year and those shortfalls are expected to be the same or larger than this year’s experiences. More than half of the 158 mayors surveyed say that despite the funding provided through the American Recovery and Reinvestment Act, the current budget situation has affected their ability to engage in job-creating projects. Moreover, the U.S. Conference of Mayors and IHS Global Insight project job losses will continue into 2010 and will not regain their 2007 peak until late 2012. The most common actions being taken by cities to avoid budget shortfalls this year include postponing projects or initiatives (81 percent), eliminating city positions through attrition (75 percent), and reducing purchasing and procurement (73 percent).
Policy Digest
The Role of Research Infrastructures for a Competitive Knowledge Economy
European Commission
Developing World Class Research Infrastructures (RIs) is one of the five pillars of an ambitious European Research Area (ERA)-Vision for the future. Large scale Research Infrastructures act as centres of competence, which are open and attractive to the best world-level researchers. They contribute in a unique way to both social and economic development. The implementation of the ESFRI Roadmap projects for the construction (or major upgrade) of research facilities of pan-European interest has led to increased attention to studies measuring the scientific, social and economic benefits deriving from these infrastructures. This report synthesizes the findings of a seminar that reflected on best practices to improve the innovation chain, took stock of actual and recent innovations stemming from European Research Infrastructures, and identified gaps and needs for possible future impact and foresight studies.
Conclusions of the Workshop
Capacity: A number of participants expressed the view that with the ESFRI List, the FP7, the Structural Funds, and current national initiatives and resources, the EU has the basic instruments with which to maintain, develop and build successful new Research infrastructures.
Science as a driving force for development of RI: No matter what framework is used to evaluate the relevance of Research infrastructures in the struggle for competitiveness, Science must continue to be the driving force behind, and the principal justification for research infrastructure. Their role in specialised programs of Higher Education is also unique and efforts should be directed at developing this and sharing “good practice”.
On the importance of unforeseen benefits: While their scientific impact can be measured using widely recognised metrics, a range of economic and social benefits often arises from the construction and operation of a large facility. However, these social and economic benefits are difficult to quantify and opportunities arising from knowledge transfer and spinout companies are inherently unforeseeable.
Defining a need for sophisticated evidence of impact: Although there is some material from impact studies available, this is mainly of an “anecdotal nature’ and time might have come to provide more sophisticated evidence. This might require the definition of new methodologies to measure performance, impact and output of the new major facilities listed in the ESFRI Roadmap.
And of new methodologies and indicators to measure impact: It was felt that a pre-requisite would be the further development, driven by the EU Research Infrastructure action, of studies on the social and economic impact of the new large facilities. There is a need for a few well-elaborated methods and indicators, which may differ depending on the science goals of each RI sector. The next call for proposals under FP7 (closing 3rd December 2009) is an opportunity not to be missed.
Assessment of RI should invlude structured debates from stakeholders: Impact assessment of the large scale facilities must be placed in the context of the ERA objectives, which provide the reference framework for research and innovation policies in the EU. It was suggested that Narratives and Foresight could each make a valuable contribution to this goal. The assessment of Research infrastructures should include a structured debate among stakeholders of their contribution to these objectives, based on high quality analysis and descriptions.
A systemic evaluation of RI is required: While it will not be possible to find “one-size-fits-all” evaluation method for research infrastructures’ evaluation, the presentations and discussions showed how important it will be to develop a systematic approach to the evaluation of research infrastructures’ impact.
Events
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.
Designing Transit Cities Symposium
Toronto, 19-20 November, 2009
The Designing Transit Cities Symposium is a two-day event aimed at exploring issues of transit development and other related questions with experts from successful international transit-oriented cities. You will hear from experts from Paris, Madrid, Zurich, Portland and San Francisco who have a strong track record in building cities where transit supports good development and vice versa. Out-of-town experts Paul Goldberger, Robert Cervero and Mariia Zimmerman, as well as local politicians designers and transit experts, including Mayor David Miller, TTC Chair Councillor Adam Giambrone and Paul Bedford, Metrolinx Board Member and Former City of Toronto Chief Planner, grapple with these important city design issues in a series of panel discussions, presentations and workshops.
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.
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.
InnoWest 2009: How Canada Can Prosper in the Global Innovation System
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 well being 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 Well being 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.
Competitive Cities: 10 Years Later – Is the GTA Ready to Compete?
Toronto, 20 November, 2009
In 1999, the Canadian Urban Institute held a conference to find out what makes a city region competitive. Ten years later, we are re-visiting the topic to find out what has been achieved in the past decade, identify what still needs to be done, and how the notion of a “competitive city region” fares in the current climate. Are companies as connected as they need to be to the brain power available in our universities and colleges? Is the GTA reaching its potential as a competitive force in the global economy? Can the innovation agenda be usefully expanded to the broader marketplace to better utilize community college resources? How could the GTA benefit from the approach taken in the UK?
Book Launch: 21st Century Cities in Canada: The Geography of Innovation 
Toronto, 2 December, 2009
21st Century Cities in Canada: The Geography of Innovation summarizes the key insights and findings of a multi-year national study on urban industrial clusters, led by internationally renowned urban expert David Wolfe, Professor of Political Science at the University of Toronto. Professor Wolfe’s monograph delineates the innovation dynamic, based on in-depth analysis of the experiences of 15 Canadian cities. 21st Century Cities in Canada explores the ways in which the economic shock of the past year has dramatized the changing nature of Canada’s economy, and it looks at the challenges that lie ahead. The monograph also sheds new light on the role of cities as the dominant sites of economic activity—the places where leading-edge innovation generates new ideas, new products, and new industries.
The Canadian Innovation Exchange (CIX)
Toronto, 2 December, 2009
This is Canada’s most important gathering of the key players in the innovation economy. Over the course of one action-packed day, participants will be exposed to the people, ideas and inspiration who are defining and succeeding in the technology-based innovation milieu. CIX provides a showcase for the country’s most compelling new technology inventions, and a platform for partnerships and transactional relationships with counterparties from Canada, the U.S. and elsewhere. CIX plays the role of providing critical insight through its sessions, and great facilitated and informal networking events designed to enable investors to discover each other as well as Canada’s next great companies. CIX culminates in the presentation of Canada’s top 20 Innovative Companies and participants in CIX vote live to choose the CIX 09 “Canadian Innovation Leader”.
Stimulating Recovery: The Role of Innovation Management
New York, 6-9 December, 2009
Organized 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.
Pecs, Hungary, 24-26 May, 2010
An increasingly complex array of actors is involved in today‟s regional development agendas. They range from private firms and labour organizations to government and non-government institutions. Despite the growing awareness in the public and academic domains of the multi-actor nature of regional development, we still often struggle to fully comprehend the mutually interactive strategies and practices which cut across regions and countries. In light of recent upheavals in the global economic and financial system, such an understanding will be critical to future studies of regional development. Indeed this interest in actors, institutions and organizations in regional development needs to be properly grounded in the wider contexts of global change in economic imperatives, transnational working and cooperation and environmental concerns. To some regions, these contexts provide favourable and timely frameworks for action and initiatives. Other regions may find these contexts increasingly challenging and threatening. Taken together, understanding better these broader contexts can provide important insights into regional development potential, planning and practices and establish the agenda for research and policy. We welcome papers from all – academics, students and those working in policy and practice. The event is inclusive and offers major networking opportunities for scholars in our field.
CALL FOR PAPERS – Opening Up Innovation: Strategy, Organization and Innovation
London, 16-18 June, 2010
The DRUID Summer Conference 2010 intends to explore new theoretical, empirical and methodological advances in industrial dynamics, contributing novel insights and stimulating a lively debate about how economic systems and organizations evolve. The conference will include an exciting programme of plenary debates where internationally leading scholars take stands on contemporary issues within the overall conference theme. Both senior and junior scholars are invited to participate and contribute to the conference with a paper.
Subscriptions & Comments
Please forward this newsletter to anyone you think will find it of value. We look forward to collaborating with you on this initiative. If you would like to comment on, or contribute to, the content, subscribe or unsubscribe, please contact us at ipl.munkschool@utoronto.ca.
This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.