The IPL newsletter: Volume 11, Issue 219

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

Government of Canada Promotes Jobs and Growth in Southern Ontario

Businesses, post-secondary institutions and industry in southern Ontario will benefit from a new program to accelerate the development of large-scale, advanced technology projects with commercial potential. The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) recently launched the new Technology Development Program today at an event at the Robarts Research Institute at The University of Western Ontario. The Technology Development Program will provide up to $75 million over four years to encourage research and private sector organizations, post-secondary institutions and not-for-profit organizations to work together to advance new and emerging technologies that have the potential to significantly expand the economy of southern Ontario.

Canadian Government Funds Clean Technology Projects

This summer, Sustainable Development Technology Canada (SDTC) and the Ministry of the Environment announced the granting of $40 million to 18 clean technology projects across Canada – six based in the Toronto Region. 3XR Inc. has developed the technology to remove large amounts of nitrogen from wastewater. Mississauga’s Electrovaya Corp. has developed Lithium Ion battery packs for cars, with greater energy density and zero-emission cell manufacturing. EnerMotion Inc. has developed the Hybrid Auxiliary Power Unit to capture energy and reduce green house gas emissions. InvoDane Engineering Ltd. has designed a robotic natural gas pipeline inspector to reduce failures and avoid venting of gas into the atmosphere. Lakeshore EMPC Two L.P. was funded to further its research on in situ treatment of contaminated soils. Finally, Hamilton’s Tenova Goodfellow Inc. plans to reduce the energy usage of steelmaking electric arc furnaces by 24% with advanced sensors.

Canadian Government Helps Communities in Ontario Attract Foreign Investment and Create Jobs

The Minister of International Trade recently announced that 21 municipalities and local organizations in Ontario will receive more than CAD 1.3 million through the Government of Canada’s Invest Canada-Community Initiatives (ICCI) program. This year, the government is investing a total of CAD 3 million to help local organizations across Canada attract foreign direct investment to their communities. ICCI funding recipients include the Greater Toronto Marketing Alliance (GTMA) and Toronto Region Research Alliance (TRRA). GTMA received CAD 210,000 to develop several foreign direct investment (FDI) initiatives, including a program to generate leads in the financial services industry, a new investment publication and new economic forecasts for hot sectors and hot markets. TRRA received CAD 140,000 to identify FDI leads in the bio-technology and life sciences sector and increase knowledge and understanding of the needs of local companies in the agri-food industry. The ICCI program helps communities in all provinces and territories attract, retain and expand foreign direct investment. It supports non-profit and public-private groups at the local community level.

 

Editor's Pick

Toronto in the Creative Age

Martin Prosperity Institute
In February 2009, Roger Martin and Richard Florida released Ontario in the Creative Age, a study of the changing composition of Ontario’s economy to provide recommendations on how to remain prosperous and globally competitive. This document aims to do something similar for the city of Toronto. This report is a more modest enterprise, building on data collected for the larger project and adapting some of its recommendations to a local context. While Toronto has been less affected than other Great Lakes cities by recent years of economic upheaval, the upcoming municipal election makes this an important moment to consider the city’s economic past and present, and to discuss what path it should take toward building a stronger future for Torontonians.

Innovation Policy

Higher Education in a World Changed Utterly: Doing More with Less

Mary-Louise Kearny and Richard Yelland, OECD
This paper deals with the specific context of the 2010 OECD/IMHE General Conference and the need to consider both responses for enhanced productivity given the lingering nature of the economic crisis and the longer-term goals of tertiary education (inter alia, sustainable growth, socially responsible citizens, enhanced co-operation amongst the global community). Reference is made to the 2008 OECD Review entitled Tertiary Education in the Knowledge Society which offers a comprehensive framework to countries wishing to modernize their systems.

OECD Economic Surveys: Canada 2010

OECD
This 2010 edition of OECD’s periodic review of Canada’s economy includes chapters covering policies to sustain the recovery, fiscal consolidation strategies, and health care reform.

Investing in Innovation

Gaganan Awano et al., NESTA
NESTA’s innovation index provides a more accurate measure of the investment in innovation in the UK. However, there were gaps in the available data. This reports the innovative new survey commissioned to address these key gaps. The Investment in Intangible Asset survey explicitly measures the level of expenditures, external and internal, that UK business commit to intangible assets. While previous studies have attempted to gather firm-level data on the range of intangibles beyond R&D this new survey is one of the only ones to extend this to survey firms’ accounting methods for measuring depreciation of intangible assets.

Linking into Global Value Chains: A Guide for Small and Medium-Sized Enterprises

Foreign Affairs and International Trade Canada 
This guide was created for Canada’s small and medium sized enterprises (SMEs) who are interested in expanding internationally. Its intent is to present the global value chain business model as a means for boosting firms’ global competitiveness, profitability and long term sustainability. The first section of this guide will present the global value chain business model and its relevance for Canadian SMEs. Once you have determined the value of the global value chain business model for your own firm, the second section will help you determine whether or not your firm is ready to take advantage of this business model. The third section of this guide will present various opportunities for how to optimize your own global value chain. Although this guide concentrates on basic, practical information, it also provides you with many other resources which will help you develop your own customized approach to global value chains.

Cities, Clusters & Regions

Do Clusters Generate Greater Innovation and Growth? An Analysis of European Regions

Andres Rodriguez-Pose and Fabrice Comptour, IMDEA
The analysis of clusters has attracted considerable interest over the last few decades. The articulation of clusters into complex networks and systems of innovation – generally known as regional innovation systems – has, in particular, been associated with the delivery of greater innovation and growth. However, despite the growing economic and policy relevance of clusters, little systematic research has been conducted into their association with other factors promoting innovation and economic growth. This paper addresses this issue by looking at the relationship between innovation and economic growth in 152 regions of Europe during the period between 1995 and 2006. Using an econometric model with a static and a dynamic dimension, the results of the analysis highlight that: a) regional growth through innovation in Europe is fundamentally connected to the presence of an adequate socioeconomic environment and, in particular, to the existence of a well-trained and educated pool of workers; b) the presence of clusters matters for regional growth, but only in combination with a good ‘social filter’, and this association wanes in time; c) more traditional R&D variables have a weak initial connection to economic development, but this connection increases over time and, is, once again, contingent on the existence of adequate socioeconomic conditions.

Statistics & Indicators

Measuring Globalization: OECD Economic Globalization Indicators 2010

OECD
This second edition of the OECD Economic Globalization Indicators presents a broad range of indicators showing the magnitude and intensity of globalization. This process is becoming increasingly important for policymakers and other analysts, hence the need for a volume that brings together the existing measures, based on national data sources and comparable across countries. Together, the indicators shed new light on financial, technological and trade interdependencies within OECD and non-OECD countries.Measures of globalization include indicators on capital movements and foreign direct investments, international trade, the economic activity of multinational firms and the internationalisation of technology. In addition, the 2010 edition also includes indicators linked to the current financial crisis, portfolio investments, environmental aspects and the emergence of global value chains.

Policy Digest

Regional Innovation Policy in Transition: Reflections on the Change Process in the Skane Region

Arne Eriksson et al. VINNOVA
This report investigates the context and content of a world class regional innovation policy as well as the leadership and governance issues involved for policy design and implementation. For the Skåne region to achieve its goal to be a top innovative region in Europe in 10 years time there are a number of challenges that have to be met in terms of regional innovation strategy. This report focuses on two issues. The first is are the characteristics of high performance regional innovation policy and the second is what role regional political leadership and regional development organizations should play in development strategies.

Driving forces affecting the policy context

There are some major trends in the global economy that are of great importance for the design of this program. The first is that the recent crisis has some features that most probably are of structural importance. The most important is that China and the other BRIC countries have established themselves as major players in the global economy both as markets and increasingly also as competitors even in knowledge and innovation intensive areas. Second, and as a consequence of increased global competition transition in that innovation led regional economic development will be the best response to an economic context where constant
disruption in markets and technologies will be the norm. A third factor which is not dependent on the recent crisis but on the long term resilience and sustainability of the Skåne region is the increasing necessity to find answers to a number of critical societal
issues which are often referred to as Grand Challenges that are global in character and represent threats as well as innovation challenges and opportunities for regional renewal. It is interesting to note that a clear pattern in the crisis programs in many countries is the driving role played by city-regions as test-beds.

From push to pull

A key message in this report is hat we are moving from a world of push to a world of pull. This is message that is valid for business as well as for policy design and implementation. Some central features in terms of knowledge of that key message is that knowledge flows are becoming more important and that knowledge use will be more coupled with finding talent and be part of knowledge creation than with knowledge transfer and finally that an urge to become more innovative will make tacit knowledge more important than today. This is one aspect of why economic behavior will more be based on relationships and trust than on contracts and transactions. There is also an idea of design thinking and positive sum mindsets associated with this view from push to pull. And that change shows itself also in a shift from targeted push program to pull platforms based on modularization, user involvement and distributed knowledge creation and learning. All in all this points to a more dynamic economic environment.

Knolwedge dynamics emphasize linkages, flows and interfaces

From a regional perspective it is also important to note that researchers point to the fact
that there is a territorial dimension in these processes:

• Firms, Sectors and Regions are in Transition on Knowledge Flow Dynamics
• Innovation involves Combinatory and Cumulative Knowledge Dynamics
• Regions with Opportunities for Combinatory Knowledge Dynamics are Advantaged
• ‘Related Knowledge Variety’ defines that Advantage
• Distributed knowledge networks in ‘open innovation’ platforms are key to economic
well-being
• Policy at regional level is in need of focalising on supporting platforms
• Such platform policies are ‘joined-up’, flexible and involve ‘distributed governance’

Innovation and governance have a distributed character

The distributed character of innovation is reflected in co-production between users and producers, orchestration and integration of business eco-systems (clusters and innovation systems). More frequent research collaboration and coauthoring of academic articles are also signs of this. Co-creation of knowledge at the interface between users and knowledge producers is another. From a governance perspective this means that there is need for governance structures that are broad and are capableof orchestrating horizontal cross-fertilization between clusters. From these points follow that the key government/governance capabilities are the following:

• Visionary capability – influenced by foresight, networks, antennae
• Innovative capability – influenced by dis-satisfaction with status quo
• Networking capability – especially bringing in networked governance
• Learning capability – influenced by openness of internal & external networks
• Leadership capability – influenced by confidence, consensus & capabilities in general.
• Resource configurations – related to envisioned policy prioritisations
• Social capital – of government, platforms, community and policy performance

Traditionally governance has been about distribution of power, responsibilities and forms for accountability in a polity. For some time there has been a process of devolution and decentralization to lower political and administrative levels in a national setting. In the EU there has also been a shift from national to the EU level. These parallel developments have been interpreted by many as a response from policy makers to the fact that the state centrist mode of governing has lost both legitimacy and the ability to deliver collective goods due to a range of reasons. Among them globalization and the emergence of the network society are often referred to. But these drivers for change have also led to a more radical shift in governance based not so much on the formal distribution of power across levels of society as on exploring ways to improve the capacity to solve shared problems in a no one in charge society by acknowledging complexity, the need to mobilize stakeholders and the capacity for problem solving based on self organization in more or less stable networks. Including business, academics and civic organisations in this kind of multi stakeholder processes raises a need for governance that takes account of different action logics, type of control and forms for accountability.

 

Events

Accelerating Innovation: The Road Ahead for Tech-based Economic Development
SSTI Annual Conference

Pittsburgh, 14-16 September, 2010
The conference offers sessions, speakers, workshops and networking activities tailored to the needs of the innovation community. This year’s presenters include federal officials, governors, heads of economic development agencies and regional TBED organizations, and SSTI staff. It will focus on getting TBED professionals the answers they need to create effective strategies and to handle the speed bumps they encounter along the way.

Technicity

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.

Migration to Integration: An Opportunity Agenda for Cities 

The Hague, Netherlands, 3-4 October, 2010
Cities of Migration showcases innovative integration practices from global cities using a fresh storytelling approach and a compelling message: integration is a critical dimension of urban prosperity and growth. Join us for big ideas and new perspectives on immigrant integration at the first international Cities of Migration Conference. Plenary speakers, a townhall debate, panel discussions and a marketplace of innovative ideas add up to a dynamic learning event that will inspire renewed urban leadership and new thinking on migration

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).

Knowledge Cities World Summit 2010

Melbourn, Australia, 16-19 November, 2010
‘Knowledge’ is a resource, which relies on the past for a better future. In the 21st century, more than ever before, cities around the world rely on the knowledge of their citizens, their institutions, their firms and enterprises. Knowledge assists in attracting investment, qualified labour, students and researchers. Knowledge also creates local life spaces and professional milieus, which offer quality of life to the citizens who are seeking to cope with the challenges of modern life in a competitive world. This conference will offer a range of innovative presentation formats aimed at facilitating interaction and accessibility for all members of the Knowledge Summit community. The Summit will attract a range of multidisciplinary participants including: practitioners, managers, decision and policy makers of non-government organisations, technology solution developers, innovators, urban planners, urban designers and developers, academics, researchers and postgraduate students.

9th Annual Incubation Conference: Combining Technological Entrepreneurship with Creativity and Culture

Liverpool, UK, 18-19 November, 2010
First established in 2002 this annual conference has developed into a renowned international event in which incubators, science parks, investors, universities, governmental organizations and industry discuss and evaluate their strategy on how best to support young start-ups on the road to succes. Be a part of this inspiring event!

INNOWEST 2010: How innovative companies used innovation to navigate successfully through the recession and position themselves for growth

Calgary, 25-26 November, 2010
The companies worst hit in western Canada during the recession tended to be those with undifferentiated products with many competitors, where price competition became severe. By contrast, the companies who did reasonably well tended to have unique products and fewer competitors. InnoWest 2010 tells the story of some of these companies, and how innovation helped them to live through the recession relatively unscathed, and position themselves for growth in the recovery. InnoWest 2010 will not focus on the very large companies [such as Suncor] or on very small companies [for example, a 10 employee company] but will focus on the large middle ground where the bulk of Canada’s GDP is generated. Keynote speakers include Sir Terry Matthews.

Innovation 2010

Ottawa, 5-7 December, 2010
Globally, innovation is recognized as the driving force towards lasting sustainable prosperity in the coming decades. The federal government’s S&T strategy promotes action to grow the translation of knowledge into commercial applications that generate wealth for Canadians and support a high quality of life. We have the opportunity to build a world-class innovation ecosystem in Canada. The challenge is to foster increased partnerships and collaboration among public, academic and private sectors to ensure we improve knowledge mobilization and commercialization for world-class next generation products and services. In keeping with these challenges and opportunities, ACCT Canada, Federal Partners in Technology Transfer (FPTT) and the Networks of Centres of Excellence (NCE) are pleased to present their first national joint conference on innovation and competitiveness in Canada: INNOVATION 2010.

Managing the Art of Innovation: Turning Concepts into Reality

Quebec City, 12-15 December, 2010
Organized by ISPIM in collaboration with local partner INO, a leading non-profit R&D center in Optics/Photonics in Canada, 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 French Canadian culture.

 

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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.