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
FedDev Invests in Southern Ontario’s Future
Southern Ontario businesses, not-for-profit organizations and post-secondary institutions will benefit from a new federal funding initiative aimed at supporting productivity, economic diversification and competitiveness in the region. Investments under the Prosperity Initiative will enhance business productivity in southern Ontario, diversify its economy and build on the region’s strengths to further its competiveness within the global economy. Up to $210 million will be available over the next four years for projects focusing on the adaptation and adoption of new technologies, processes and skills aimed at enhancing productivity; the development of new industries or opportunities to diversify a community or regional economy; and the development and expansion of strategic economic clusters that will have an impact on the global economy.
Canada Boosts University Research Funding
The federal government plans to inject $275.6 million into science and technology research to help place Canada among the leaders in university research and development. This funding will be used to fund 310 research chairs at 53 Canadian universities. The investment includes $13.4 million from the Canada Foundation for Innovation for research infrastructure associated with new awards.
Ontario Supports Entrepreneurs and Brings Local Ideas to Life in the Ottawa Region
The Ottawa Centre for Research and Innovation (OCRI) has been selected to join the new Ontario Network of Excellence (ONE). ONE consists of 14 regional innovation centres across Ontario. These centres help local entrepreneurs bring new and innovative ideas to the marketplace, such as new ways to treat disease, cleaner ways to produce power and next-generation digital entertainment. The centres alsogive entrepreneurs access to a broad range of experts, including researchers, academics, businesses, government and investors, who can help sell an idea and grow a business worldwide. Supporting made-in-Ontario technologies is part of Ontario’s strategy to make innovation a driving force of Ontario’s economy, and supports the Open Ontario Plan to build new opportunities for economic growth and jobs.
US$10 Million Awarded to 11 Universities to Retool Florida’s Economic Future
Universities competed for a share of $10 million in the final phase of the New Florida Initiative (NFI), a program designed to use the higher education system to “transform the state’s economic portfolio” – broaden its economic base in ways that will yield a high return on investment. New Florida Initiative seeks to double the state university system budget to $4 billion by 2015. The idea isn’t to abandon the arts and humanities but to invest half the new money in fostering research in the fields most closely associated with knowledge-based economies – STEM.
Editor's Pick
Growing the ICT Industry in Canada: A Knowledge Synthesis Paper
David A. Wolfe and Allison Bramwell, Program on Globalization and Regional Innovation Systems (PROGRIS)
Information and communications technology (ICT) industries comprise the backbone of the global digital economy, and constitute one of the key drivers of productivity growth in the knowledge-based global economy. The ICT industry in Canada is a critical contributor to national GDP, and although it is weathering the recession better than most, it is not performing as well as it could. This paper presents an overview of the current state of the ICT industry both globally and in Canada. It draws upon the most recent statistical sources and analytical reports to paint a detailed picture of the current level of development of the sector and emerging technology trends. It situates the state of the ICT industry in Canada, both in manufacturing and services, within this broader comparative context and highlights some of the past accomplishments and current strengths of the sector. It concludes with a brief discussion of some of the key policy recommendations that have emerged from the consultation on the digital economy and directions for future research.
Innovation Policy
Today’s Innovation, Tomorrow’s Prosperity
Institute for Competitiveness and Prosperity
As the economy slowly recovers from the recession, Ontario needs to do what is necessary to achieve a solid recovery in the short term and to begin repairing the provincial fiscal situation. But a long-term challenge remains – raising productivity, which is synonymous with improving innovation capabilities and performance. Robust innovation results can be achieved through more key business investments and by the right government policies and strategies for innovation. The Report concludes that businesses need to step up their investments in technology – from R&D to patents to adapting existing technology to their businesses. Equally important is the ongoing need to develop stronger management capabilities in our businesses. The Task Force also recommends that governments improve their innovation polices by shifting their efforts from new-to-the-world inventions to relevant-to-the market innovations.
Innovation Catalysts and Accelerators: The Impact of Ontario’s Colleges’ Applied Research
The Conference Board of Canada
Colleges in Ontario are making positive contributions to the economy, businesses and individuals by stimulating applied research and development (R&D) and accelerating much-needed innovation, according to this report. It found that, in many instances, the applied research services provided by Ontario colleges’ stimulate new R&D activity and spending in businesses—which would otherwise not have occurred had the college expertise and applied research funding not been available. The study found that there is an opportunity to achieve much more by investing more in Ontario’s colleges. Funding for applied research at colleges has been modest, the scale is limited and many institutions are new to applied research. Nevertheless, colleges’ applied research services—such as assistance with design and prototyping, proof of concept, and testing—not only serve as catalysts for new R&D spending and activities; they also accelerate innovation. The report provides recommendations for government and colleges to increase the contribution that Ontario colleges can make to small-and-medium enterprise innovation performance. Federal and provincial governments can: increase funding for infrastructure, capacity and research projects with business; revise funding criteria to focus on innovation outcomes; create an Applied Research Leaders program; and allow college faculty more time to pursue research.
Cities, Clusters & Regions
NESTA
The UK has a vibrant semiconductor industry. UK companies compete in global semiconductor markets by combining technological innovation with business model innovation. In doing so, these companies make an important contribution towards the UK’s economic success, with the UK semiconductor market worth $6 billion in 2009 – third in Europe, behind France and Germany. Equally the industry has an important impact at the regional level, and the South West semiconductor cluster is one of the largest silicon design clusters in the world. This report examines the semiconductor industry in the UK, particularly in the South West, to identify how this cluster has grown over the past 30 years and how government, with very limited resources, can effectively support regional clusters.
Local Growth: Realizing Every Place’s Potential
BIS
The UK government’s overarching goal is to promote strong, sustainable and balanced growth. It needs to rebalance the economy both sectorally and geographically, so that growth is not reliant on particular places. For local communities this means ensuring that everyone has access to opportunities that growth brings and everyone is able to fulfil their potential. This report outlines recommendations in three thematic areas: shifting power to local communities and businesses; increasing confidence to invest; and focused intervention.
Higher Education in Regional and City Development : Amsterdam 2010
OECD
Amsterdam has the characteristics of creativeness, openness and diversity that make it attractive to global talent and a young population. It has strong research universities and excellent transport infrastructure including one of the world’s leading airports. It is the financial capital of the Netherlands and home to many multi-national companies. Amsterdam’s cultural and architectural heritage have ensured that it is better-known globally than many cities twice its size. However, the Amsterdam metropolitan region still has unfulfilled potential. This report looks at how to encourage effective interaction between the higher education sector and the region, not simply on the transfer of technology and knowledge, but on the mobility and skills of people. It considers how to develop and transform the talents and competences both of the young non-Western minority and of the 30+ age-group. This publication explores a range of helpful policy measures and institutional reforms to mobilize higher education for the development of Amsterdam.
Higher Education in Regional and City Development: Berlin 2010
OECD
Berlin is a creative city attracting talent from around the world. The Berlin Senate has made great strides in developing innovation as a pillar of its economy. But challenges remain: there is long-term unemployment, a low absorptive capacity in small and medium-sized enterprises and a large migrant population that lags behind in educational and labour market outcomes. How can Berlin’s higher education institutions capitalise on their long tradition of professionally relevant learning and research to transform social, economic and environmental challenges into assets and opportunities? What incentives are needed to improve higher education institutions´ regional and local orientation? This publication explores a range of helpful policy measures and institutional reforms to mobilize higher education for Berlin’s development.
Statistics & Indicators
The 2010 EU Industrial R&D Scoreboard
European Commission
This report presents information on the top 1000 EU companies and 1000 non-EU companies investing in R&D in 2009. The Scoreboard includes data on R&D investment along with other economic and financial data from the last four financial years. The data for the Scoreboard are taken from the companies’ latest published accounts, i.e. the 2009 fiscal year accounts and indicate the R&D invested by companies’ own funds, independently of the location of the R&D activity.
Ewing Marion Kauffman Foundation
Massachusetts, Washington, Maryland, New Jersey and Connecticut are the top five states at the forefront of the nation’s movement toward a global, innovation-based new economy, according to this new report. The bottom five states were unchanged from 2008. Mississippi and West Virginia have lagged most in making the transition to the New Economy. The other lowest-scoring states include, in reverse order, Arkansas, Alabama and Wyoming. The report makes clear that the nation – and, by extension, the states – cannot thrive without addressing fundamental economic competitiveness challenges. This Index uses 26 indicators to assess states’ fundamental capacity to successfully navigate the shoals of economic change. It measures the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based – in other words, to what degree state economies’ structures and operations match the ideal structure of the New Economy. The 2010 Index builds on four earlier Indexes, published in 1999, 2002, 2007 and 2008.
Does Money Matter? Determining the Happiness of Canadians
Centre for the Study of Living Standards
The objective of this report is to ascertain whether persons living in certain regions or cities in Canada experience higher levels of life satisfaction or happiness, and if so why? To address this question the report uses micro-data from the Canadian Community Health Survey for 2007 and 2008. After a descriptive analysis of the data on happiness in Canada, the report identifies, through an econometric analysis of both individual and certain variables in a societal context, the factors that are the most statistically and economically significant determinants of individual happiness. It then uses this information to explain variation in happiness at the provincial, CMA (Census Metropolitan Area), and health region level, given the characteristics and state of the population in these geographical units. A key finding is that the most important reason for geographical variations in happiness in Canada is differences in the sense of belonging to local communities, which is generally higher in small CMAs, rural areas, and Atlantic Canada.
Policy Digest
Delivering the Next Economy: The States Step Up
Bruce Katz, Jennifer Bradley and Amy Liu, Brookings Institute
In January, 37 governors, many of them new, will take office facing daunting challenges, including many immediate needs for which there is precious little time or money to meet. But at the same time, they have an opportunity to lead their states, and the nation, into the next economy, which must be driven by exports, powered by low carbon, fueled by innovation, rich with opportunity. An economy with those characteristics will also be metropolitan-led. Leadership at the state level will be crucial, as the political environment in Washington, DC is very likely to produce little more than partisanship and rancor. The US must instead rely on the kind of innovation at the state level that has so often propelled the federalist system.
Deeper budget cuts and more public sector layoffs will not re-balance and re-start our economy. Only wise, strategic investment does that. States should, therefore, do three things to revive their state economies and lay the groundwork for future prosperity:
1) Invest in new ways to support the assets that drive the next economy. The next economy will be created through smart public and private interventions around the assets that matter: innovation, human capital, infrastructure and quality of place. Making these investments requires significant policy reforms because current policies are out of synch with both the changing structure and metropolitan geography of the economy. Thus, states will likely need a new network of market-oriented, private-sector-leveraging, performance-driven institutions. These investments and institutions do not necessarily require new public resources, but they do demand that existing dollars be spent in a sharper, more targeted, metro-aware fashion.
2) Cut to invest to jumpstart the transition to the next economy. At this point in the state fiscal crisis, the simple cuts and program reorganizations have been made already. Now, new or incumbent governors have to make some tough, long-delayed decisions. This includes shifting money out of legacy programs that lack accountability, do not focus on metros, or are not oriented to the next economy, and using it to support the assets that matter, such as education, innovation, and infrastructure. Governors may also need to turn to voters for new dedicated taxes or other new sources of state revenue, validated by voter referenda.
3) Leverage investments through smart metropolitan strategies. The benefits of state investments are amplified when they are aligned with the specific advantages of particular metropolitan areas, whether that is a group of interconnected firms in a particular economic sector, or strength in fast-growing service exports, or globally powerful research institutions or community colleges that develop customized job training. States can provide rich, comparable data sets to help metropolitan areas quickly understand market strengths. They can provide small investments in regional capacity, such as cluster grants. Perhaps most critically, states can break out of agency silos that no longer match economic or geographic imperatives and create cross-agency teams that focus on delivering what regions say they need to succeed. None of these efforts are especially expensive: most of them aim to use existing resources in a more targeted and efficient way.
While the current political climate in Washington makes major reforms difficult there are some tasks that the federal government must take to help states and metropolitan areas move forward in the next economy. The federal government must modernize the tax code to stop encouraging consumption and instead fostering production. It should commit to new investments in transportation. And it could reprise a familiar bargain with states and metros: more flexibility to experiment in return for stricter accountability standards.
Events
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 changes.
The Next Urban Economy: Can Toronto Be a Global Leader? 
Toronto, 9 December, 2010
Following the banking and economic crisis, cities are being encouraged to adopt new strategies that embrace green economies, emerging markets, new technologies, and the modernization of export industries. ‘The Next Urban Economy’ is the term applied by the Brookings Institution to these new urban strategies. Greg Clark will reflect on whether the Next Urban Economy really contains anything new, whether cities will pursue such strategies, what they will look like, and which cities are already seen as leaders of the Next Economy. We will discuss whether the Next Urban Economy helps to shed light on Toronto’s future choices, and whether Toronto can be a leader in these export-oriented green and innovative sectors.
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.
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.
Copenhagen, Denmark, 15-17 June, 2011
DRUID 2011 intends to map theoretical, empirical and methodological advances, contribute with novel insights and stimulate a lively debate about how technologies, economic systems and organizations evolve and co-evolve. The conference will include targeted plenary debates where internationally merited scholars take stands on contemporary issues within the overall conference theme.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.