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
IBM Pledges $50M to Create 100 Smarter Cities
IBM recently inaugurated Smarter Cities Challenge, a competitive grant program in which IBM will award $50 million worth of technology and services to help 100 municipalities across the globe. Teams of IBM experts will provide city leaders with recommendations for successful growth, better delivery of municipal services, more citizen engagement, and improved efficiency. This new program is the single-largest philanthropic investment currently planned by IBM, which made US$186 million worth of charitable contributions in 2009, comprising cash, technology, and consulting services. Over the next three years, IBM will send its top experts to those cities that have made the strongest case for participating in Smarter Cities Challenge. IBM consultants will immerse themselves in local issues involving the administration of healthcare, education, safety, social services, transportation, communications, sustainability, budget management, energy, and utilities.
Kauffman Foundation Selects Three Universities as Commercialization Leaders
The Ewing Marion Kauffman Foundation recently announced the designation of three universities – Carnegie Mellon University, University of Missouri System and University of North Carolina at Chapel Hill – as “Kauffman Commercialization Leaders.” The award recognizes the selected universities for their creative approaches to help to accelerate the process of bringing student and faculty innovations to market. The Foundation is awarding each university a $100,000 grant for their selected programs or initiatives.
Editor's Pick
Invest to Grow: Technology, Innovation and Canada’s Productivity Challenge
CME Intelligence
This new report has found the reason behind Canada’s lagging productivity problem – money. The report illustrates the close relationship that exists between cash flow performance and investments in research and development (R&D) and in new technology. Its findings also substantiate the recommendations CME has made to government to make the SR&ED tax credit refundable and extend the two-year write-off for investments in manufacturing and processing technologies – both leave more money in the hands of businesses that are investing to innovate and improve productivity
Innovation Policy
Australian Industry Group
The Australian Industry Group (Ai Group) recently welcomed the New Thinking, New Directions Report by the National Innovation Review Steering Group. The seven key discussion themes addressed in the report are: 1. Transforming culture by showcasing innovation, 2. Leveraging the Australian broadband opportunity, 3. Building and embedding professional innovation skills, 4. Developing new models and incentives for research/business collaboration, 5. Re-examining the role of government procurement in fostering innovation, 6 Using corporate venturing to improve access to finance for innovation, and 7. Streamlining access to government programs and support.
Innovation Futures in Europe: A Foresight Exercise on Emerging Patterns of Innovation
European Research Area
The INFU project addresses questions such as how innovation will happen in the future, what signals and trends can be detected and how this will affect citizens, companies or policy makers. To illustrate the possible future development of innovation patterns, eight of these visions are presented here which are believed to have a strong socio-economic impact.
European Commission
In its first annual report ERAB argued that the challenges before the EU are of such an order of magnitude that Europe needs to mobilize all its talent in science, research and innovation to address them in such a way that it leads to a new Renaissance. In that same report ERAB stated that, in doing so, Europe would also lay the foundations for the growth sectors of the future. In the report ERAB presented 30 milestones for the European Research Area (ERA) by 2030 to measure progress in the years ahead. Building the European Research Area is indeed a long and difficult task and for that a clear plan is needed. Outlining that plan was at the core of ERAB’s second full year of work and led ERAB to come up with 76 detailed recommendations and their expected impact. These recommended actions, organized around the milestones of the first report, were developed and divided into four broad themes: ■ united ERA in a global world; ■ science, society and policy; ■ open innovation; ■ an ERA to deliver excellence and cohesion.
Technology and Innovation Futures: UK Growth Opportunities for the 2020s
Department for Business, Innovation and Skills (BIS)
This report is a forward look at a range of developments which have the potential to support sustained economic growth in the UK over the next 20 years. As the UK comes out of the economic downturn, it seems likely that future economic prosperity will derive in large part from seizing opportunities offered by technologies such as these. The report concludes that there are strong opportunities for growth in the UK economy through the 2020s if businesses can harness scientific and industrial capabilities to take advantage of technology developments and identifies three potential areas of growth which could be transformative: manufacturing, infrastructure and the internet.
Cities, Clusters & Regions
The Road to Recovery…is Named Main Street
Southern Growth Policies Board
Southerners voiced concerns that focusing on innovation and technology-based business operations, supporting entrepreneurship, identifying community assets, developing a skilled workforce and increasing community involvement in economic development strategies are vital for the South to recover from the current economic downtown. This eport was assembled using comments of more than 2,300 citizens from communities across the South. During community gatherings and via online surveys, Southerners discussed not only the challenges and concerns caused by the Great Recession, but also the priorities and potential to build stronger regional economies. Participants provided states, regional economic development organizations and local governments with five key themes: look beyond industrial recruitment, reduce regulation, identify and build on community assets, revamp workforce training and facilitate partnerships. The report also examines the lessons learned by facilitators in increasing community involvement in economic development and its importance to develop successful long-term development strategies.
Place-based Approaches to Regional Development: Global Trends and Australian Implications
John Tomaney, Australian Business Foundation
This report for the Australian Business Foundation examines international trends in “place-based thinking” and their implications for Australia, drawing especially on thinking developed by the OECD and the European Union. The report looks in detail at the performance of three regions from different parts of Europe that outperformed their respective national economies in recent years. While revealing a diversity of experiences and conditions, the regions have a number of attributes in common, including a strong focus on innovation and human capital, clear long-term strategies and robust and accountable institutions. “Place-based thinking” has the potential to open new approaches to the development of Australian cities and regions. But its implications require careful consideration and assessment, not just by governments, but also by stakeholders such as business.
Center for an Urban Future
For nearly a decade, the Center has written about the economic importance of the arts—and the larger for-profit creative sector—to New York City’s economy. While our research has shown that this sector is vital to the city’s growth, we have also detailed how the real estate boom of the last decade has made New York increasingly unaffordable as a place for artists and creative entrepreneurs to work, live, rehearse and perform. This new report argues that the dramatic rise in real estate vacancies across the city provides a rare chance to address these space challenges.
Statistics & Indicators
Best-Performing Cities 2010: Where America’s Jobs are Created and Sustained
Ross DeVol, Armen Bedroussian, Kevin Klowden and Candice Flor Hynek, Milken Institute
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. Leaders in this year’s index, which ranks U.S. metros based on their ability to create and sustain jobs, are all metros that were shielded from losses in the production of capital equipment and consumer durable goods. Diversified technology bases, including high-tech manufacturing; reliance on service industries; having a large military presence and a relatively small presence of financial services were common characteristics in this year’s top performers.
Policy Digest
Regional Development Policies in OECD Countries
OECD
Policy makers need both a handy reference guide to the regional policies of their own and other countries and a broader analysis of trends in regional policies, based on sound, comparable information. Regional Policies in OECD Countries responds to this need. It is the first systematic, comparative analysis of OECD countries’ regional policies. The report addresses fundamental regional policy concerns, such as: problem recognition; the objectives of regional policy; the legal/institutional framework; the urban/rural framework; budget structures; and the governance mechanisms linking national and sub-national governments as well as sectors. It begins with an overview of the regional policy today. This is followed by country profiles covering the 31 OECD members. The profiles share a common conceptual framework, allowing countries to see how their experiences measure up. The report also contains several annexes, which cover some of the countries that are candidates for accession to the OECD or with which the OECD has enhanced engagement. The annexes also cover the key topics of cross-border cooperation and trends in urban-rural linkages, especially efforts to control urban sprawl. The report will help countries to better understand regional policies and to formulate and diffuse horizontal policy recommendations. The analysis suggests an important role for regional policies in shaping sustainable endogenous development, in particular well-developed governance mechanisms to better respond to the different opportunities and demands of regions and to improve policy efficiency. This report is a unique source of regional policy information and of special interest to policy makers, researchers, and others engaging with regional development.
EMERGING TRENDS
Horizontal governance at the regional level: Regional level strategic planning
An increasing number of countries have introduced regional level co-ordinating mechanisms for setting development goals, planning initiatives or allocating resources. Regional level strategic planning is gaining in popularity. In the European Union, the impact of EU Cohesion Policy on European countries is not only financial; it has empowered local and regional actors and strengthened their capacity to design and implement regional programmes and develop partnerships with private actors. An increasing number of countries have introduced regional level co-ordinating mechanisms for setting development goals, planning initiatives or allocating resources. Regional level strategic planning is gaining in popularity. In the European Union, the impact of EU Cohesion Policy on European countries is not only financial; it has empowered local and regional actors and strengthened their capacity to design and implement regional programmes and develop partnerships with private actors.
Increasing role of decentralized authority at the regional level
Deconcentration reforms (with sub-national representatives appointed by and accountable to the national government) should be carefully distinguished from decentralization reforms (where local leadership is elected by and accountable to local citizens). The deconcentration of national functions to the regional level is underway in many OECD member countries. Along with on-going decentralization, some countries restructured deconcentrated agencies, tending to integrate multiple sectoral agencies. Considering the importance of these deconcentrated agencies for regional development, this restructuring is likely to have a profound impact on the way regional policy is carried out by the national government.
Inter-municipal/intra-regional governance
With increasing mobility and the interdependency of economic activities, existing administrative jurisdictions (mainly municipalities, but sometimes upper-municipality levels) are often smaller than local governments think appropriate. The conventional justification for redefining local areas is the need to achieve economies of scale and critical mass and to account for territorial spillovers (externalities). These actors are redefining the boundaries of their territories based on factors such as shared economic characteristics, natural endowments and common identities. The expected results of this joint co-operation are different or higher quality services, rather than cost savings. Discrepancies between administrative regions and functional regions have usually
presented a greater challenge in metropolitan areas than in rural areas. The functional model of metropolitan governance has been promoted in many OECD member countries. It is based on governance at a functional economic area level and built around cross-sectoral competitiveness and competences in areas that have a metropolitan logic (e.g. transport, housing, investment promotion and tourism). Some decision-making power at the regional level is distinct and autonomous from either central, large regional or local government. It aims at achieving economies of scale generated by larger, unified service delivery areas, better cost equality and less social segregation across the entire metropolitan region as well as more effective strategic planning and integration of
sectoral policies.
Evaluation and monitoring: Efficiency and accountability
Issues of efficiency and accountability arise from the modification of regional policy design and delivery responsibilities across administrative tiers. The multi-level and horizontal governance system, which many agents use for co-ordination purposes, can create policy transparency and evaluation problems. Evaluation and monitoring are high on the policy agenda but have limited budgets. In most cases, the focus on evaluation is accompanied by strengthened arrangements for data collection and indicator systems. Evaluation and monitoring through indicator systems can reduce information asymmetries between levels of government and are a good way to share practices, help the central government transfer knowledge across sub-national authorities, and encourage better performance.
Future directions
Some countries reported future directions of their regional policies. New regional policy frameworks are under preparation in Austria, the Czech Republic and Poland. Decentralization is further promoted in many countries including Chile, Finland, Greece and Hungary. Among them, strengthening the power of regional level authorities is often discussed. Accompanying the decentralization trend, some countries are redefining the structure of central government and its deconcentrated agencies. A more dynamic change of the entire local government system is being considered in Korea and Luxembourg.
Conclusions and areas for future research
In order to examine the reality of the paradigm shift of regional policies and the extent to which the paradigm has been implemented, it is important to understand the factors behind the rationale of each country’s regional policy, its governance structure, and what objectives it sets out to achieve (OECD, 2007d). This publication provides answers to these questions by presenting a comparison of regional development policies across OECD member countries. This is the first time the OECD has undertaken a systematic collection of regional policy data. It will enable us to measure the degree to which regional policy frameworks have adopted a competitiveness focus. Of not is the policy shift of European countries to the new paradigm, which has been supported by the new orientation of the Lisbon agenda. This systematic review of country strategies for regional development policy should be regularly updated and further elaborated.
Events
Toronto, 22 November, 2010
Moving Our Region is a series of four seminars bringing together noted transportation policy-makers, practitioners, and academics to discuss critical issues that will profoundly influence the future growth and prosperity of the Greater Toronto-Hamilton Area (GTHA), including: what a modern transportation system for the GTHA might look like, how to pay for it, whether federal policies should support a national transportation strategy, and how to gain public support. This second seminar in the series will draw on case studies from Vancouver and Chicago on how to plan for, and fund, complex multimodal transportation networks that balance the need to shape future demand in suburban areas while serving the needs of a densely populated urbanized setting. It will describe the systematic evidence-based approach to planning for major transportation improvements in complex environments and how information technology is creatively used to leverage more productivity out of an existing network. It will examine various forms of transportation funding, including innovative approaches to pricing, taxation, and revenue generation. It will also describe the careful interplay among land use and transportation policy. Finally, the presentation will draw some distinctions between planning and funding experiences in the United States and Canada to provide insight into what works best and why.
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.
CALL FOR PAPERS – Space and Flows: An International Conference on Urban and Extraurban Studies
Los Angeles, 4-5 December, 2010
This conference aims to critically engage the contemporary and ongoing spatial, social, ideological, and political transformations in a transnational, global, and neoliberal world. In a process-oriented world of flows and movement, we posit, the global north and global south now simultaneously converge and diverse in a dialectic that shapes and transforms cities, suburbs, and rural areas. This conference addresses the mapping of, the nature of, and the forces that propel these processural changes.
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.
CALL FOR PAPERS – DRUID/DIME Academy Winter Conference
Aalborg, Denmark, 20-22 January, 2011
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.
CALL FOR PAPERS – Workshop on the Organization, Economics and Policy of Scientific Research 
Torino, Italy, 18-19 February, 2011
Following the success of the three previous workshops held in Torino under the auspices of LEI & BRICK (University of Torino – Collegio Carlo Alberto) with the support of the DIME network of excellence, we are organising a new workshop in collaboration with the COST Action on “Science and Technology Research in a Knowledge-based Economy – STRIKE”. 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.
CALL FOR PAPERS – What Future for Cohesion Policy? An Academic and Policy Debate
Sava Hoteli Bled, Slovenia, 16-18 March, 2011
This conference, co-organized by DG Regio (European Commission, the Regional Studies Association adn the Government Office for Local Self-Government and Regional Policy, Slovenia will involve a number of invited plenary presentations, and workshop or other small group discussions.
Woods Hole, MA, 15-18 May, 2011
Applications are sought from teachers and researchers who are interested in moving beyond their current disciplinary and academic boundaries to explore concepts and practices that help us work in the arena bordered on one side by critical interpretation of the directions taken by scientific and technological research and application and on the other side by organizing social movements so as to influence those directions. Participants are encouraged, but not required, to submit a manuscript or sketch related to the workshop topic that would be read by others before the workshop and be subject to focused discussion during the workshop. There is also room for participants to develop–either before or during the workshop–activities or interactive presentations to engage the other participants.
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.