News from the IPL
ANNOUNCEMENTS
Ontario Invests $51 Million in Student Entrepreneurs
Government of Ontario
Ontario is launching five programs to help young people start companies and create jobs. Part of Ontario’s Youth Jobs Strategy, these programs will provide young entrepreneurs with business skills, capital to start and grow a small business and the opportunity to gain experience and expertise through R&D internships. The Youth Jobs Strategy is part of the government’s economic plan that is creating jobs for today and tomorrow. The comprehensive plan and its six priorities focus on Ontario’s greatest strengths — its people and strategic partnerships.
DOL, SBA Announce Funding to Support Regional Industries to Compete in the Global Economy
SSTI
The Department of Labor (DOL) and the Small Business Administration (SBA) recently announced programs that will provide financial support to help states and regions assist key industries and small businesses compete in the global economy through the development of regionally focused workforce development and export assistance programs.The DOL announced that it is accepting applications for the $450 million Trade Adjustment Assistance Community College and Career Training Grants Program (TAACCT). The SBA announced that it is accepting applications for a new round of the State Trade and Export Promotion Grant Program (STEP) Program, a three-year pilot trade and export initiative to make matching-fund grants for states to establish export promotion programs that assist small businesses enter and succeed in the international marketplace. The program’s objectives are to increase the number of small businesses that are exporting, and to increase the exports of those small businesses currently exporting in states across the country.
Editor's Pick
Startups!! But Where’s the Growth?
Dan Breznitz, Innovation Policy Lab at the Munk School of Global Affairs
The current news of tech startups being created in more hubs around the world is rightly celebrated. However, it leaves us with an important question: how these startups translate to economic growth in specific locales? The author argues that unless policy makers develop a new understanding of how innovation and entrepreneurship translate to sustained economic growth in different ways in different places, we will be doomed to one of two options: horrifying levels of inequality or depressing economic stagnation.
Innovation Policy
Global Flows in a Digital Age
McKinsey Global Institute
Global flows have been a common thread in economic growth for centuries, since the days of the Silk Road, through the mercantilist and colonial periods and the Industrial Revolution. But today, the movement of goods, services, finance, and people has reached previously unimagined levels. Global flows are creating new degrees of connectedness among economies—and playing an ever-larger role in determining the fate of nations, companies, and individuals; to be unconnected is to fall behind.
Competing in Global Value Chains: Implications for Jobs and Income in Sweden
Growth Analysis
Is Sweden competitive in Global value chains? This report introduces a novel value-added measure of country competitiveness in global value chains. Using this measure, the development of Swedish competitiveness in global value chains is analyzed. Implications of using different measurements of competitiveness are also discussed.
Innovations and New Technology: What is the Role of Research? Implications for Public Policy
Lennart Elg, VINNOVA Analysis
This report focuses on the ways in which research-based competence contributes to innovation and new technology. It also describes how the competence base of innovation can be strengthened by policy measures which support an interaction between business and research. A main theme is that innovation should not be thought of as a sudden flash of inspiration, but as a long process of searching, experimenting and learning. Publicly funded research can contribute in many different ways and in all stages of the innovation process. For this to become a reality requires policies that allow for continuous interaction so that researchers and companies can learn from each other.
Cities, Clusters & Regions
The Role of Associations in Regional Innovation Systems
Knut Koschatzky et al. Frauenhofer ISI
The last years have seen the establishment of numerous initiatives such as clusters, clubs or entrepreneur networks which are now playing a role in the stimulation of regional innovation activities. Apart from studies of specific associations like cluster initiatives, little is known about associations from the perspective of innovation systems. The objective of this paper is to propose a research agenda which goes beyond established and well-known players in innovation systems and specifically focuses on actors who join forces to express common interests and the associations they establish.
European ICT Hubs: An Atlas of Where Digital Technologies Thrive
European Commission
Wondering what makes an ICT hotspot? Take a look at Munich, London, Paris or smaller cities such as Darmstadt identified in a new EU Atlas of ICT hotspots. This atlas shows where digital technologies thrive and examines the factors contributing to this success.Most of Europe’s ICT activity takes place in 34 regions across 12 countries (listed in the Annex). Key ingredients to success included access to top universities and research centres and funding opportunities such as venture capital.
Resilient Cities Research Report
Richard Barkham, Grosvenor
The ability of cities to thrive as centres of human habitation, production and cultural development, despite the challenges posed by climate change, population growth and globalization, is determined by their resilience. From a real estate investor’s perspective, resilience allows cities to preserve capital values and generate sustainable rental income in the long term. In human terms, cities are resilient if they absorb shocks, like Hurricane Sandy, maintain their output of goods and services and continue to provide their inhabitants with a good quality of life according to the standards of the time. Cities, like societies, are adaptable. Just like societies, they vary enormously in their adaptive capacity due to governance, institutions, technology, wealth and the propensity to plan. By quantifying the resilience of 50 of the world’s most important cities we, at Grosvenor, hope to contribute to this vital debate. The report includes detailed case studies of Vancouver, New York, London, Shanghai and Mexico City.
Statistics & Indicators
New Evidence on the Determinants of Industrial Specialization
Asa Johansson and Eduardo Olaberria, OECD
Industrial specialization has important implications for economic performance; therefore, understanding its determinants is of key policy relevance. This paper quantifies the relationship between factor endowments, policies and institutions and patterns of industrial specialization in production using a new cross-country dataset compiled by WIOD that includes 37 OECD and non-OECD countries and 26 sectors. An advantage of this database –as compared with those used by previous studies- is that makes it possible to look at industrial specialization in terms of value added instead of gross exports, covering both services and manufactures in a panel of advanced and developing economies. The empirical methodology is based on the idea that industries vary in the conditions that they need for production, and countries differ in their ability to provide for these industry-specific requirements. The report finds that not only cross-country differences in factor endowments, such as capital and labour, but also differences in investment in R&D and policies or institutions, such as financial development, tariffs and taxes, and product and labour market regulation, can explain cross-country differences in industrial structure.
Policy Digest
Something New: Where do New Industries Come From?
Maryann P. Feldman and Sam Tavassoli, CITR
The argument that new industries can transform regions and enhance economic growth is not new. It dates back at least to Schumpeter’s notion of “creative destruction”, where he explored the origins of new industries and the impacts of technological discoveries on economic growth (Schumpeter, 1942). Alas, like so many after him Schumpeter focused on the nation and
ignored the more local concentration of new industries. Our concern in this chapter is about how industries take root to transform places. The focus of this article is on a set of activities that did not exist previously in the form that it currently manifests. The main aim is to understand the forces required for an industry to form – what the literature says is needed to go from an idea or single
product to an industry, defined as an aggregation of a set of related firms devoted to a common productive pursuit. Following Schmookler’s scissors the paper argues that we know a great deal about push factors and the ways in which scientists or user inventors create knowledge and act towards their commercialization. The literature has explored entrepreneurship as a creative force. However, less is known about what Schmookler would call pull factors that would need to be in place to create
a technological change or the realization of a new industry and subsidiary activities.
The focus of this chapter is on the question of how new industries originate in places. There is often confusion between the process of diffusion and the locational factors that give rise to early stage creative discovery. There is a long and distinguished literature that considers the diffusion of ideas, e.g. in hybrid corn (Griliches, 1957). Diffusion is important as it influences the general uptake and implementation of ideas across geography but it is a different process than the focus here. The article advances the argument that the creation of new industries is a process that has inherently geographic features. Something new is created out of prior knowledge (Neffke, Henning, & Boschma, 2011) but a more complex process is required to develop an industry and reap the economic benefits.
New Industries: Origins
New technologies and new industries, while offering potential for economic growth, do not emerge fully developed, but begin rather humbly as scientific discoveries, often made iacademic laboratories. At the time of discovery the commercial potential is not known and only a few experts may appreciate the significance. Translating the discovery into commercial activity and realizing its economic potential entails a process that has a strong geographic component. Moreover it requires taking the technology out of the lab, into a community and building companies. Increasingly there is recognition that what matters more than resources or initial
conditions is the social dynamics that occur within a place and define a community of common interest around a nascent technology or emerging industry [emphasis added] (Freeman, 1979). The important analytical issue is how consensus is achieved, the conditions under which social dialogue takes place and the appropriate role of governance in creating conditions conducive to the development of industry (Dawley, 2014). Also important is the issue of who participates in this dialog and the degree to which consensus building processes involve outside academic and entrepreneurial circles.
Geography: Regional characteristics matter and that is why not all regions perform equally well in producing new industries;
Demand-pull factors/Market demand: Regions that demand expertise to tackle unsoived problems are more attractive to the creative groups that generate innovations;
Science-push factors: Engines of knowledge creation create spillovers that can be leveraged by innovators;
Localization economies: Such as those found in dense metropolitan regions facilitate knowledge transfer. Pools of talent and co-location of related industries/supply chains also contributes to firm creation;
Government procurement: Can reduce risk to experimentation and create new markets that can later be expanded by the private sector;
Community-building: The challenges of doing research in emerging technologies can stimulate the formation of groups and networks that can themselves be attractive to researchers and firms.
Events
GCIF Global Cities Summit
Toronto, 15-16 May, 2014
The GCIF Global Cities Summit will take place May 15th and 16th, 2014 in Toronto, Canada. Leaders from GCIF’s network of cities, business leaders, senior government officials, scholars, and planning & design professionals will participate in this global event.
CFP – The Organization, Economics and Policy of Scientific Research
Torino, Italy, 19-20 May, 2014
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. As in previous years, we aim to attract contributions from both junior and senior scholars; a minimum number of slots are reserved for junior researchers (PhD students or postdoc scholars who obtained their PhD in 2011 or later). The workshop aims at including papers form various streams of research developed in recent years in and around the area of public and private scientific research.
CFP – Second International ZEW Conference on the Dynamics of Entrepreneurship (CoDE II)
Mannheim, Germany, 22-23 May, 2014
The formation, growth and exit of firms are crucial for innovation, employment and structural change in modern economies. The aim of this conference is to discuss recent scientific contributions on the interdependencies between finance, human capital, innovation activities and investment activities of young firms. Papers introducing recent theoretical, econometric and policy-oriented studies from all areas of the entrepreneurship research management are invited.
Industry Studies Association Annual Conference
Portland, Oregon, 27-30 May, 2014
The Industry Studies Annual Conference draws scholars from a wide range of disciplines who present findings from research at the cutting edge of the academic literature in their areas of specialization. Research presented at the conferences very often focuses on issues of immediate interest to industry and public policy.
Photonics North 2014
Montreal, 28-30 May, 2014
This year’s conference sessions include: Green photonics, energy and related technologies; Optical communications; Optoelectronics and integrated optics; Photonic materials; Nonlinear optics, nanophotonics and quantum optics; Photonic sensors and biomedical optics and more.
CFP – Mapping Culture: Communities, Sites and Stories
Cimbra, Portugal, 28-30 May, 2014
The Centre for Social Studies (Centro de Estudos Sociais – CES), a State Associate Laboratory at the University of Coimbra in Portugal, is calling for the submission of papers and panel/workshop proposals from academics, researchers, public administrators, architects, planners and artists for an international conference and symposium. The CES is committed to questions of public interest, including those involving relationships between scientific knowledge and citizens’ participation.
Business Innovation Summit 2014: Accelerating Corporate Innovation and Commercialization
Toronto, 28-29 May, 2014
The objective of this conference is to help companies of all sizes across Canada harness the power of innovation, and accelerate their innovation and commercialization results. The Summit is exploring the real-life challenges and opportunities of innovation within firms, and is featuring tangible solutions that work. We are assembling an outstanding lineup of Canadian and international speakers to share best practices and unique insights on how to implement effective processes and build innovative organizations for the 21st century.
RSA Workshop on the Evaluations of EU Cohesion Policy in 2014+
Prague, 10 June, 2014
In recent years, we have witnessed a significant increase in the use of rigorous research methods in the evaluations of the EU Cohesion Policy. The main objective is to identify the actual impacts and how to increase policy efficiency. The rationale behind a workshop on evaluations is the need to assemble academics investigating the issues’ effectiveness, impacts and added value of EU Cohesion Policy as well as practitioners working with this policy. The goal of the workshop is to improve knowledge and the application of evaluation results in practice. It will achieve this objective through the sharing of experience with evaluations, methods and the combination of qualitative and quantitative methods as well as the application of theory-based evaluations. At the beginning of the new policy cycle 2014-2020, many questions arise regarding the reformed Cohesion Policy. This workshop, hosted jointly by the University of Economics and the Czech Evaluation Society at the Charles University and organized in collaboration with the partner institutions of the RSA Research Network on EU Cohesion Policy, will provide a forum for debating some of the most salient and burning of those questions.
Creative City Summit 2014: Love Your City – Transforming Communities Through Culture
Hamilton, Ontario, 11-13 June, 2014
Through interactive sessions, case studies and keynote addresses, experts will share real world projects that are transforming cities across the country. The 2014 Summit theme focuses on communities that are creating conditions in which culture can thrive. Presenters will explore how leadership, innovative thinking, partnership building, and simply doing things differently can lead to a creative community. Delegates will gain insight into integrating culture within other local planning initiatives; encouraging and stimulating “eventful” cities; planning community wide participatory events; initiating creative placemaking projects; and creating cultural hubs in their community.
DRUID Society Conference 2014: Entrepreneurship-Organization-Innovation
Copenhagen, Denmark, 16-18 June. 2014
he conference will include a number of distinguished plenary presenters and intends to map theoretical, empirical and methodological advances, contribute with novel insights, clarify and develop intellectual positions and help identify common grounds and lines of division in selected current scientific controversies within the field. In 2014, the DRUID Special Flavor will be on Food Innovation. During the last decade, the food industry has seen notable innovation and entrepreneurship throughout its value chain, including, for example, search for original raw materials, adaption of advanced process technologies, exploration of new cooking methods and development of unique restaurant models. DRUID2014 will feature scientific as well as social activities reflecting Food Innovation, including paper sessions on innovation and entrepreneurship in the food industry, talks by leading chefs, and samples of innovative food and drink. With its New Nordic Cuisine, a burst of new Michelin-starred restaurants, and capturing the World’s Best Restaurant as well as Bocuse d’Or awards for several consecutive years, Copenhagen has established itself at the heart of food innovation. In addition, there is a broader movement around the notions of regional and modernist cuisine. The DRUID Society will of course take advantage of its local connections to present conference participants with samples of just how innovative the local food scene can be.
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.