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
KPMG Competitive Alternatives 2010 Study Shows GTA Strength Despite High Dollar
The Greater Toronto Area (GTA) remains a competitive location for business investment despite the rise of the Canadian dollar to near-parity with the US dollar, an international study by KPMG LLP has found. The Competitive Alternatives 2010 study (profiled below), presented this week to the International Leaders Breakfast Club organized by The Greater Toronto Marketing Alliance (GTMA), shows that competitive advantages including favourable tax policies by governments are offsetting the impact of a higher dollar, which tends to make Canadian products more expensive internationally. Worldwide, Competitive Alternatives 2010 ranks Toronto sixth in business-cost competitiveness among a group of 41 large international cities, all with populations of 2 million or more. This represents an improvement for Toronto, up from a ranking of 14th in the previous KPMG study done in 2008, among a similar group of 35 cities.
Government of Canada Invests in New Research Partnership to Benefit Forestry Sector
Canadians working in the forest industry will soon benefit from a new research partnership at the University of New Brunswick. This new project will bring together university researchers, the forest industry, community organizations and governments to implement innovative solutions for sustainable forest management in the region, address immediate environmental challenges and develop skills within New Brunswick to handle complex environmental challenges in the future. This Collaborative Research Partnership for Sustainable Forest Management is one of 20 large-scale research projects that have received an investment of approximately $1 million over six years through the Social Sciences and Humanities Research Council of Canada’s (SSHRC) Community–University Research Alliances (CURA) program grants. The funding will bring communities and universities together in partnerships to build knowledge in areas affecting Canadians.
Ontario Fast Tracks Green Economy and Becomes a Leader in Renewable Energy for Canada
Other provinces should pay attention to Ontario’s recent decision to award contracts to companies who will supply renewable energy to Ontario residences and businesses. Almost 2,500 megawatts of renewable energy was allocated to be exact. Ontario Minister of Energy and Infrastructure, Brad Duguid, approved 184 large-scale renewable energy projects under the province’s groundbreakingFeed-in Tariff (FIT) that is the biggest green energy investment in Canadian history. This will not only make Ontario a role model for the rest of Canada, but also the province will be at the forefront in development and manufacturing of renewable energy alternatives while driving the green economy forward.
Editor's Pick
Bruce Katz, City & Community
Metropolitan areas are the unequivocal engines of the US economy and prosperity because they spatially concentrate at an unprecedented level the assets that matter, assets like innovation, human capital, and infrastructure. The national government must pursue a Metro Policy to help cities and metropolitan areas leverage these critical assets in the service of productive, sustainable, and inclusive growth. There are early signs that the Obama Administration embraces this new vision of Metro Policy. The President’s rhetoric recognizes the critical role cities and metropolitan areas play in the national economy and the need for a new generation of federal policies that leverage this economic primacy. The American Recovery and Reinvestment Act of 2009 and FY 2010 budget invest directly in the assets that drive prosperity. But President Obama inherits a federal government replete with legacy programs, diminished in capacity, and without a coherent federalist philosophy, which will be obstacles for the structural reform necessary for Metro Policy.
Innovation Policy
The Current and Future Role of Tecnology and Innovation Centres in the UK
Dr. Hermann Hauser, DBIS
The UK has a science capability second only to the US, which is an undoubted source of competitive advantage. However, it falls short on translating scientific leads into leading positions in new industries.This is in part due to a critical gap between research fi ndings and their subsequent development into commercial propositions that can attract venture capital investment or be licensed. This gap can only be closed by making new technologies investment ready. Therefore, if the UK is serious about creating a ‘knowledge-economy’, it must continue to invest in, and support, research excellence; ensure the government supports areas of UK industry which have the ability and absorptive capacity to capture a significant share of high value activity; and close the gap between universities and industry through a ‘translational infrastructure’ to provide a business-focused capacity and capability that bridges research and technology commercialization.
Pablo D’Este, Surya Madhi and Andy Neely, DRUID
This paper aims at improving our understanding of the attributes of academic researchers that influence the capacity to identify and exploit entrepreneurial opportunities. The paper investigates a number of factors highlighted in the literature as influencing the entrepreneurial activities undertaken by academics. The results show that identification and exploitation of entrepreneurial opportunities are shaped by different factors. While identification of commercial opportunities is driven by prior entrepreneurial experience and the excellence of the academic work, exploitation of entrepreneurial opportunities is driven by the extent of previous collaboration with industry partners, cognitive integration and prior entrepreneurial experience.
Cities, Clusters & Regions
OECD Territorial Reviews: Toronto, Canada 2009
OECD
This review finds that the Toronto region is one of the chief economic powerhouses of Canada, generating almost one-fifth of national GDP and 45% of Ontario’s GDP. The region is home to 40% of Canada’s business headquarters and is a main manufacturing hub, with major automotive, biomedical and electronics companies. Toronto is also one of the most diverse metropolitan regions in the world: half of its population is foreign born and it hosted 40% of all immigrants to Canada during 2001-2006. Nevertheless, the region’s current economic development model is under pressure and its economic performance has been mixed in recent years. From 1995 to 2005, GDP per capita and GDP growth rates were below the Canadian average while its annual economic and labour productivity growth were lower than the average for OECD metropolitan regions. During this period, population growth boosted demand in the construction, sales and retail, professional and financial services sectors. However, the recent decline in the area’s manufacturing jobs has illustrated the structural difficulties of some traditionally strong areas, such as the automotive and electronics industries.This Review proposes a new sustainable competitiveness agenda to enhance productivity, focusing on innovation, cultural diversity and infrastructure, as well as on green policies. To implement such an agenda, the Review proposes improving the current governance framework by intensifying strategic planning at the level of the Toronto region.
Shiri Breznitz and Antti-Jussi Tahvanainen, ETLA
Even with globalization, industrial clusters are maintaining their importance in today’s economy. With the decomposition of productiont clusters are becoming focused on specific industries and stages of production. This paper analyzes two peripheral western countries, Finland and Israel, which had success in their ICT clusters and wanted to duplicate this success by building on their knowledge in the life science industry to create biotechnology clusters. This paper focuses on two innovation-based clusters, the biotechnology agglomerations in Rehovot, Israel, and Helsinki, Finland. These industrial districts consist of companies, many spun out of university research, that are either devoted to early-stage R&D (Israel), or choose to conduct the entire business cycle (Finland). The paper investigates whether a cluster of young research companies can become the basis of industrial growth and bring economic sustainability to a region. It finds that while the firms’ strategic choices regarding their focus on certain positions in the value chain do not necessarily have any direct implications on the sustainability of the respective clusters, a variety of other characteristics necessary for long-term sustainability are missing in both clusters. These include particularly inter-firm knowledge flows within the clusters, an active and demanding VC market, connections to international expertise, and opportunities to recruit experienced expertise.
Intermetropolitan Passenger Rail: Considerations for State Legislators
Robert Puentes, The Brookings Institution
In his remarks to a special committee of the National Conference of State Legislators, Robert Puentes argues that American high speed rail represents the kind of potentially game changing, market-shaping investments in the next economy that the country has long deferred. He offers some points that help frame the major questions and decisions that state legislators should consider as they address moving the US transportation system into a new era.
Junichi Hishimura and Hiroyuki Okamuro, DRUID
Industrial clusters have attracted increasing attention as important locations of innovation. Therefore, several countries have started promotion policies for industrial clusters. However, there are few empirical studies on cluster policies. This paper examines the effects of the “Industrial Cluster Project” (ICP) in Japan on the R&D productivity of participants, using a unique dataset of 229 small firms, and discusses the conditions necessary for the effective organization of cluster policies. Different from former policy approaches, the ICP aims at building collaborative networks between universities and industries and supports the autonomous development of existing regional industries without direct intervention in the clustering process. Thus far, the ICP is similar to indirect support systems adopted by successful European clusters. Results suggest that participation in the cluster project alone does not affect R&D productivity. Moreover, research collaboration with a partner in the same cluster region decreases R&D productivity both in terms of the quantity and quality of patents. Therefore, in order to improve the R&D efficiency of local firms, it is also important to construct wide-range collaborative networks within and beyond the clusters, although most clusters focus on the network at a narrowly defined local level. However, cluster participants apply for more patents than others without reducing patent quality when they collaborate with national universities in the same cluster region.
Statistics & Indicators
Competitive Alternatives 2010: International Business Location Guide
KPMG
The 2010 study is the most thorough comparison of international business locations ever undertaken by KPMG, and contains valuable information for any company locating international business operations. Competitive Alternatives 2010 is an expansion and update of previous KPMG publications, and measures the combined impact of 26 significant business cost components that are most likely to vary by location. The study also compares data on a variety of non-cost competitiveness factors. The study examines 17 industry operations in 10 countries: Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, the United Kingdom, and the United States.The basis for comparison is the after-tax cost of startup and operations over 10 years
Global Information Technology Report 2009-2010: ICT for Sustainability
Soumitra Dutta and Irene Mia, World Economic Forum
Sweden replaced Denmark as the world’s most networked economy and the U.S. fell two spots to fifth place in the Global Information Technology Report 2009-10 rankings. The report finds that the U.S. boasts a very conducive information and communication technologies (ICT) environment because of intensive competition, excellent infrastructure and top-notch education. Aspects of the U.S. performance which show margins for improvement include high tax rates, excessive red tape, and a poor general regulatory framework. The report also finds that while the U.S. ranks 2nd in ICT usage with businesses and the government fully leveraging ICT, individual usage is less satisfactory. This is mainly a result of comparatively low mobile subscription penetration rates, according to the report. The top 10 are Sweden (1), Singapore (2), Denmark (3), Switzerland (4), United States (5), Finland (6), Canada (7), Hong Kong SAR (8), Netherlands (9), and Norway (10).
Policy Digest
Local Knowledge: Case Studies of Four Innovative Places
NESTA
This report contains four case studies which show how innovative economic activity can radically transform an area. Rather than trying to create the whole innovation system from scratch, they show that successful regeneration fundamentally involves making the most of existing assets, creating links and exploiting synergy between what is already in place, and then building upon these and plugging the gaps by drawing in resources from outside. NESTA hopes that these four case studies will inspire and encourage policymakers to consider how local innovation policy can adapt to existing local assets and advantages, and to build the wider links necessary to supplement and make the most of these.
The conclusions of the report are based on the following points:
The creation and exploitation of new knowledge do not have to be co-located:There is no point in cities or regions, let alone countries, trying to create all the components of an innovation system within their boundaries. If a city or a region is good at generating new ideas but bad at exploiting them locally, then its optimal option is to link with partners elsewhere which have the resources and expertise to exploit those ideas and turn them into products and services which can be deployed on a massive scale.
New economic and social value more often than not is the resulf of successful adoption-exploitation rather than creation-exploitation: The ultimate benefactors of one innovation will always be the wider users who will create more value from it than the original creators. Put simply, you don’t need to have invented the computer to use it to generate your own new ideas.
Knowledge exploitation and the creation of new value happen through a variety of routes: The channels through which a new idea, technique or discovery move from their birthplace to the market are diverse. A university could develop a new idea, while a firm might exploit it. Their production lines aren’t usually in the same place. A new technique can be learnt through formal and informal networks, by a local professor, expert, a firm or a university. Ultimately, it will be spread and become known through formal or informal training.
The over-emphasis on the creation of self-sufficient regional innovation ecosystems is risky, inefficient and ineffective. Local policymakers should instead focus on what their economic constituencies can do best within a global innovation system. Innovation policies should support the capacities needed to harness global resources and be competitive within global innovation chains and not confine themselves to a particular locale. For that, regions need to invest in the three key capacities that are needed to plug-in to external national and international value chains: the capacities to access external knowledge, to anchor (hold) it and diffuse (spread) it in the local economy.
Events
The Organization, Economics and Policy of Scientific Research
Torino, Italy, 23-24 April, 2010
The aim of the workshop is to bring together a small group of scholars interested in the analysis of the production and diffusion of scientific research from an economics, historical, organizational and policy perspective. The workshop does not have a narrow focus; it aims to include papers form the various streams of research developed in recent years in and around the area of public and private scientific research. To submit a contribution and for further information contact: Aldo Geuna (aldo.geuna@unito.it)
and Francesco Quatraro (brick@carloalberto.org).
Toronto, 5-7 May, 2010
The twelfth and final meeting of the Innovation Systems Research Network begins with Policy Day on Wednesday, May 5th. This is to provide a forum where the members of our research team, including co-investigators, domestic collaborators and Research Advisory Committee members from Europe and the United States, can meet with provincial and municipal officials who have an interest in the outcomes of our current major research initiative entitled: Social Dynamics of Economic Performance in City-Regions. The ISRN National Meeting continues on Thursday and Friday, May 6th and May 7th. During these sessions, our project researchers will be presenting the results of our ongoing research with cross city comparisons and overall perspectives on the five year research project. Limited registration is available for non-ISRN members. Register using one of the guest registration options for any or all of the three days. Breakfast and lunch is included with your registration, with a cash bar reception on Policy Day. There is a registration option to join us for the Annual ISRN Dinner on Thursday evening. A cost recovery fee is charged to Non-Members …more
The Rightful Place of Science?
Tempe, Arizona, 16-19 May, 2010
This conference will address the challenges facing a society that is at once utterly dependent on science and technology and yet equally unprepared to govern the implications of that dependence. In his inaugural address, President Obama promised to “restore science to its rightful place” in U.S. society, but that location is far from obvious. How can we understand this provocative formulation in the context of the complexity, uncertainty, and political, social and cultural diversity that mark our world?In this conference – amid art, music, literature, media, humor and more – we will explore the place of science in society and how science and technology can most effectively contribute to an improved quality of life for all. The transformative potential of science and technology challenges our ability to understand and shape our common destiny. What inquiries, communities, networks, and institutions can improve our ability to effectively engage this challenge?
Ontario Centres of Excellence Discovery 10
Toronto, 17-18 May, 2010
Connect with dynamic business leaders, investors, researchers and entrepreneurs at Discovery 2010 – Canada’s foremost innovation and commercialization event. Learn about exciting successes and emerging trends in advanced health, clean technology, digital media, manufacturing and the green economy. Meet the people whose cutting-edge ideas and technologies are driving Ontario’s innovation economy.
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.
BioEnergy Conference & Exhibition 2010
Prince George, BC, 8-10 June, 2010
The International BioEnergy Conference and Exhibition is the Canadian leader in the global dialogue on bioenergy. Our sponsors, speakers, exhibitors and delegates are key influencers and opinion shapers from around the world on the new technologies and processes that will bring about a global change in the way we perceive and use energy. With the addition of the BC Bioenergy Network as Conference Co-Host, the tradition of leadership and excellence will continue in 2010. We are also happy to announce that the Canadian Department of Foreign Affairs and International Trade will once again co-host the 2nd International Partnerships Forum and Business to Business Meetings. And 2010 will also mark the introduction of a parallel conference on Emerging Clean Technologies.
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.
Aalborg, Denmark, 21-24 June, 2010
Schumpeter 2010 serves as an opportunity for both established scholars and young researchers to present research that has a Schumpeterian perspective. The major topic of the conference is “Innovation, Organisation, Sustainability and Crises”. But the conference more generally embraces micro-studies of the innovation, routine and selection as well as studies of the macro-problems of Schumpeterian growth and development as a process of “creative destruction”. The broad range of issues implies that both economists, business economists, and other social scientists can contribute to the conference and that evidence may be provided by statistical and historical methods as well as other methods.
Experience the Creative Economy
Toronto, 22-24 June, 2010
This is a unique conference which allows scholars new in their careers to experience notions of the creative economy in a small and focused setting. This conference will bring together up to 25 individuals with similar research interests to share their work, receive feedback, foster the development of effective research methods and to establish an ongoing framework of collaborative learning and mutual exchange for years to come.
CALL FOR PAPERS – Partnerships in S&T Policy Research
Waterville Valley, NH, 8-13 August, 2010
The 2010 Gordon Conference on Science and Technology Policy will focus on a wide range of research at the intersection of science, technology, policy and society. The 2010 Conference will focus in particular on further developing partnerships between North American and European researchers. Invited speakers represent a variety of scientific disciplines in the policy sciences, social and natural sciences as well as the humanities. The Conference will bring together a collection of investigators who are at the forefront of their field, and will provide opportunities for junior scientists and graduate students to present their work in poster format and exchange ideas with leaders in the field. The collegial atmosphere of this Conference, with programmed discussion sessions as well as opportunities for informal gatherings in the afternoons and evenings, provides an avenue for scholars from different disciplines to brainstorm and promotes cross-disciplinary collaborations in the various research areas represented.
Toronto, 30 September, 2010
Toronto and the Greater Toronto Area ICT cluster, comes together for a celebration of technology as an engine of economic growth at the Allstream Centre at Exhibition Place in downtown Toronto. We live in a new world without borders. Two out of every three people in the world own a mobile communications device….and Toronto is leading the way to this borderless future. Technicity brings together technology leaders, entrepreneurs, investors and representatives of the region’s economic development agencies for a day of panel discussions, displays and an evening to remember, to celebrate, to brainstorm, network and create economic opportunity. It also serves as an opportunity to leverage our talent pool, infrastructure, and geographic location
to broaden the base of our already powerful ICT cluster.Technicity will highlight breaking technologies such as wireless data connectivity that will make up in next-generation cars to predictive analytics that is the next-generation for business intelligence.
Triple Helix in the Development of Cities of Knowledge, Expanding Communities and Connecting Regions
Madrid, Spain, 20-22 Oct, 2010
Innovation is understood as a resultant of a complex and dynamic process related to interactions between University, Industry and Government, in a spiral of endless transitions. The Triple Helix approach, developed by Henry Etzkowitz and Loet Leydesdorff, is based on the perspective of University as a leader of the relationship with Industry and Government, to generate new knowledge, innovation and economic development. The main theme of our conference is “Triple Helix in the Development of Cities of Knowledge, Expanding Communities and Connecting Regions”.
Entrepreneurship and Community: 26th Annual CCSBE Conference
Calgary, 28-30 October, 2010
The theme this year is Entrepreneurship and Community. We are seeking to explore the multifaceted impact entrepreneurs and small businesses have on their communities through their new ventures, business and community outreach. There is growing recognition by policy makers, members of society, business leaders and youth, that creative approaches are needed to address environmental, economic, and societal issues. The conference program highlights the research, educational methods, and community practices pertaining to venture sustainability and social entrepreneurship. In support of the theme we have attracted an array of plenary and guest speakers, and developed workshops which will contribute to the dialogue.
Reshaping Europe: Addressing Societal Challenges Through Entrepreneurship and Innovation 
Liege, Belgium, 27-29 October, 2010
Over the past couple of years, Europe, and the rest of the world, has faced an unprecedented crisis affecting all sectors of the economy. The crisis and the recovery that is now taking place in most Member States provide experiences that can be used to reshape Europe and to ensure that it is stronger and better prepared for the challenges of the 21st century. The Europe 2020 Strategy is designed to improve the business environment. It is vital that this environment offers the framework conditions to turn ideas into products and services more quickly and easily, whilst addressing environmental concerns and making efficient use of resources. At this important turning point, the Europe INNOVA conference will provide a timely opportunity to determine how innovation policy and innovation support can help Europe and its enterprises, both large and small, to best face these challenges.The conference will unite the Europe INNOVA Community with key innovation stakeholders from the worlds of politics, academia and business. Together they will discuss three approaches that are crucial if Europe is to respond to the societal challenges with which it is currently confronted.
Making Innovation Work for Society: Linking, Leveraging and Learning GLOBELICS 8th Annual Conference
Kuala Lumpur, Malaysia, 1-3 November, 2010
Global Network for Economics of Learning, Innovation, and Competence Building Systems (GLOBELICS) is an international network of scholars who apply the concept of “learning, innovation, and competence building system” (LICS) as their framework and are dedicated to the strengthening of LICS in developing countries, emerging economies and societies in transition. The research aims at locating unique systemic features as well as generic good practices to enlighten policy making relating to innovation, competence building, international competitiveness, regional development, labour market and human capital development. In an increasingly global and knowledge‐based competition, management strategies need to be based upon an understanding of these framework conditions and the public policies which seek to regulate the environment.
CALL FOR PAPERS: The Entrepreneurial University and thte Academic Enterprise
Washington, DC, 12-13 November, 2010
The theme of the 2010 conference is The Entrepreneurial University and the Academic Enterprise. Conference presentations should focus on the potential commonalities and/or conflicts of interests among government, university, and industry participants in technology transfer. The sessions will emphasize also the assessment of technology transfer activities, especially how to examine the objectives and processes of technology transfer activities (beyond the immediate needs of the participants), including both formal and informal transfer mechanisms (Link, Siegel & Bozeman, 2007; Abreu et al, 2008). Special focus will be placed on papers which evaluate the aspects of academicuniversity research relationships beyond their immediate outputs (Georghiou & Roessner, 2000; Vonortas & Spivack, 2005, Carayannis and Provance, 2007), including intellectual property issues (Feller & Feldman, 2009), modes of commercialization (Kenney & Patton, 2009), and economic impact (Roberts & Easley, 2009).
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.