News from the IPL
ANNOUNCEMENTS
Ontario Centres of Excellence Partner with Angel Investment Groups
Ontario Centres of Excellence
Ontario Centres of Excellence (OCE) has solidified its relationship with six Ontario angel investment groups as a means of bolstering resources and services for start-ups and entrepreneurs. By formalizing the relationship with these organizations, OCE is ensuring that the province’s angel investors are kept aware of the exciting and innovative new companies that OCE is working with, and the investment opportunities they represent.
Editor's Pick
Forum: Which Industrial Policy Does Europe Need?
Intereconomics
One lesson of the Great Recession has been that countries with higher shares of industry in their GDP seemed to be less affected by the crisis. Consequently, the call for an industrial renaissance has become stronger. Industrial policy has now become a top priority in countries where it was not explicitly considered in the past. A strong EU-wide industrial policy is expected to foster growth and job creation. However, cultivating industrial development is a complex challenge. This Forum addresses the steps that need to be taken to create a new European industrial policy. What are the structural challenges that need to be addressed? What are the instruments of the EU’s industrial policy? And should the EU be engaged in picking winners, or is the market better at making such judgements?
e powerful emerging currents with strong potential to change the way factories work. It may be too much to say that it is another industrial revolution. But call it whatever you like; the fact is, Industry 4.0 is gathering force, and executives should carefully monitor the coming changes and develop strategies to take advantage of the new opportunities.
Innovation Policy
A Policymaker’s Guide to Spurring ICT Adoption
Robert D. Atkinson and Ben Miller, ITIF
Policymakers around the world have been asking for years how to create “the next Silicon Valley.” This is understandable: in the digital economy, they see leadership in information and communications technologies (ICT) as the key to boosting competitiveness, spurring growth, and creating jobs. But while policymakers’ general instinct is right, their specific question is based on the wrong premise. Since the turn of the millennium, using ICT has created much more growth than producing ICT. This is good news for policymakers, because it is much easier to expand ICT use than it is to build the next Silicon Valley. This “pocket guide” provides a concise, easy-to-use road map for policymakers around the world, built around three themes: keeping prices low, keeping demand high, and strengthening key enabling factors across the public and private sectors.
Innovation in Action, Vol. 4
Route Fifty
When Government Executive launched its State & Local channel last year, the foundations for an eBook series were laid as well. “Innovation in Action” has featured some of the best ideas, groundbreaking advances, technologies and best practices shaping state, county and municipal governments around the United States. Now in its fourth volume, “Innovation in Action” has a new home at Government Executive’s Route Fifty. This newest eBook features six stories from Route Fifty’s staff, including Pittsburgh’s efforts to build its Department of Innovation and Performance, an interview with Tucson Mayor Jonathan Rothschild, Napa County’s mobile technology strategy that helped it respond better to last August’s magnitude 6.0 earthquake and Charlotte’s public-private partnership to reduce energy consumption.
The Changing Nature of U.S. Basic Research: Trends in Performance
SSTI
It has long been known that academic institutions are a key driver of research and development performance in the United States. While industry still funds and performs the majority of R&D in the U.S., universities and colleges (U&C) play a pivotal role in the advancement of basic human knowledge. Using the latest data update of the National Science Foundation’s National Patterns of R&D Resources series, this article, the third and final of SSTI’s series on basic research, describes how the performers of R&D and basic research in the U.S. have changed over time.
The Role of Organization Structure in the Diffusion of Innovations
PLOS ONE
Diffusion and adoption of innovations is a topic of increasing interest in economics, market research, and sociology. This paper investigates, through an agent based model, the dynamics of adoption of innovative proposals in different kinds of structures. It shows that community structure plays an important role on the innovation diffusion, so that proposals are more likely to be accepted in homogeneous organizations. In addition, it finds that the learning process of innovative technologies enhances their diffusion, thus resulting in an important ingredient when heterogeneous networks are considered. It also shows that social pressure blocks the adoption process whatever the structure of the organization. These results may help to understand how different factors influence the diffusion and acceptance of innovative proposals in different communities and organizations.
Cities, Clusters & Regions
The Hottest 15 Metros for Advanced Industries
Kenan Firiki and Mark Muro, The Brookings Institution
America’s advanced industries—characterized by their deep engagement with research and development (R&D) and science, technology, engineering, and math (STEM) workers—drive regional and national prosperity, as reported in a recent Brookings paradigm report. And yet, while advanced industries do this everywhere, how they do it in one metro area can be quite different from how they do it in another. In some places local clusters push the frontiers of advanced manufacturing. In others they focus on energy or information technology. The strongest locations do it all. So, to see some of the ways in which local regions participate in the advanced economy, this report tours the 15 densest advanced industries hubs (in terms of employment share) in the United States.
Another Cluster Premium: Innovation Subsidies and R&D Collaboration Networks
Tom Broekel, Dirk Fornahl & Andrea Morrison, Utrecht University
This paper investigates the allocation of R&D subsidies with a focus on the granting success of firms located in clusters. On this basis the authors evaluate whether firms in these clusters are differently embedded into networks of subsidized R&D collaboration than firms located elsewhere. The theoretical arguments are empirically tested using the example of the German biotechnology firms’ participation in the 6th EU-Framework Programs and national R&D subsidization schemes in the early 2000s. The findings show that clusters grant firms another premium to their location, as they are more likely to receive funds from the EU-Framework Programs and hold more favourable positions in national knowledge networks based on subsidies for joint R&D.
Statistics & Indicators
New Tool to Map Economic Growth in UK Cities
Future Cities
Future Cities has helped Centre for Cities to create a new data tool that allows you to explore data about the UK’s 64 largest cities and towns. It allows you to easily measure the economic growth of the nation’s urban centres by quickly comparing indicators like population and employment, visualizing the results on maps and charts, and then sharing them online with others. The tool can be used to analyse how cities are changing over time and enables users to easily produce a wide range of visualizations of the data. It is based on a range of datasets on people, businesses, employment and infrastructure, which come from a range of sources including the Office for National Statistics and the Land Registry. Users can select from indicators across a broad range of topics including jobs and skills, infrastructure and environment and business and innovation to compare different UK cities over time.
Policy Digest
How Can Public Policy Help Sustain a Globally Competitive Canadian Automotive Industry?
Dr. Charlotte Yates, Automotive Research Policy Centre
The benefits to Canada and Canadians of a globally competitive automotive industry with production and research capabilities in Canada are multiple. These include the attraction of foreign direct investment; direct and indirect employment of tens of thousands of Canadians in ‘good’ manufacturing and professional jobs; opportunities for hundreds of small and medium sized businesses, especially auto parts suppliers, that support the automotive industry; and demand and opportunities for expanding Research and Development capabilities. Attracting investment in expanded automotive production is intensely competitive as many countries around the world seek the economic benefits of an automotive industry. As a result, Canada is facing considerable challenges in maintaining its automotive footprint in the current period. This has occasioned public debate over the possible role that governments should or should not play in supporting the automotive industry; and if government is involved in supporting this industry what are the strategies and policies most likely to be successful in securing Canada a global automotive production platform. This report addresses many of these questions.
This research has shown unequivocally that the automotive industry is critically important to the Canadian economy, businesses, automotive communities and the working people and their families living in those communities. Through attracting investment, the creation of thousands of good jobs, investment and business opportunities and R&D spin-offs, the automotive industry is critical to sustaining a balanced economy and a vibrant and sustainable middle class society. Yet, Canada’s place in this industry is challenged by greater global competition. Canada has experienced more intense competition for investment, and are challenged to reduce the cost of production to compete. Research to date points to the following as important considerations in future government action in support of the automotive industry:
> Canada has many valuable individual policies aimed at incenting new investment and supporting existing automotive productive infrastructure. Sometimes these policies conflict with one another, or are complex to piece together into an attractive incentive package. Consequently, research points to the importance of adopting a government strategy in support of the automotive industry, or advanced manufacturing, that articulates individual policies into a coherent strategy and plan of action.
> To achieve the above, it is important that governments learn from their neighbours and partners in the U.S., Mexico and U.K. where coordination across multiple levels of government or Ministries is organized around a principle of ‘one-stop shopping’, thus contributing to the responsiveness of government policy and action to industry opportunities.
> To achieve R&D and productive innovation, evidence points to the importance of encouraging nested coordination between government, industry and universities, something which Canadian governments are currently facilitating.
> To attract automotive investment in the current globally competitive environment, governments around the world are offering incentives to automotive companies. If Canada wants to secure significant new automotive investment, it needs to continue to offer financial incentives to automotive companies, focusing in particular on sustaining and expanding Canada’s OEM assembly operations. Those incentives need to be costed, taking into account sunk investments in Canada’s public infrastructure that contribute to our competitiveness.
> Relationships matter in attracting investment. Although difficult to quantify, relationships between government officials and companies based on trust, transparency and goodwill are important in the final investment decisions.
> The high quality, low turnover, highly skilled, disciplined and educated Canadian workforce continues to be seen by automotive companies as a competitive advantage. Notwithstanding the higher cost of Canadian labour, the quality of the Canadian labour supply is important in attracting certain types of automotive investment.
> Canada has a world class automotive supply chain with world class Canadian owned automotive parts suppliers. This is a significant competitive advantage in expanding our global automotive footprint.
> Canada has competitive capabilities in two important emergent areas of automotive industry growth – improving fuel efficiency and developing the connected car. These areas of R&D and innovation are important strategic sites for government policy and R&D support. These could be a testing ground for a more strategic approach to support of the automotive industry.
Events
DRUID 15 – The Relevance of Innovation
Rome, Italy, 15-17 June, 2015
Since 1995 DRUID has become one of the world’s premier academic conferences on innovation and the dynamics of structural and geographic change. Presenting distinguished plenary speakers, a range of parallel paper sessions, and a highly attractive social program, the conference aims at mapping theoretical, empirical and methodological advances, and contributing novel insights.
ZEW/MaCCI Conference on the Economics of Innovation and Patenting
Mannheim, Germany, 2-3 July, 2015
This conference aims at stimulating discussion between international researchers conducting related empirical, and theoretical analysis. In addition, the conference will focus on policy implications of recent research. Theoretical, empirical and policy-oriented contributions from all areas of the economics of innovation and patenting are welcome. The conference is sponsored by the Fritz Thyssen Foundation.
Divergent Cities: Why Do Cities Differ in Growth and Performance?
Cambridge, UK, 16-17 July, 2015
For the first time in human history, more than half of the world’s population now lives in cities. Geographers and economists alike point to the increasing concentration of economic activity and wealth creation in cities, especially large and capital cities, many of which are also the key nodes that articulate and shape the global economy. However, not all cities have experienced success: both in Europe and the United States, economic growth rates have varied significantly across cities, and some cities have shrunk rather than expanded economically. This divergent experience raises questions as to what determines city growth. Why do some cities lead while others fall behind? Such issues pose a challenge to both theory and policy. There would seem much to learn from experience around the world. This one and half day workshop will bring together academics, policy makers and other individuals who have a direct interest in the growth and success of cities. Presentations will include those drawing on new research from the Centre for Cities, the World Bank and the UK Governments Foresight Future of Cities project.
4th Global Conference on Economic Geography
Oxford, UK, 19-23 August, 2015
This conference unites economic geographers, regional scientists, policy makers and researchers in related disciplines to discuss this year’s topic: “Mapping Economies in Transformation”.
11th Regional Policy Conference of the Technopolicy Network – Internationalization of Technology Clusters
Moscow, Russia, 7-9 September, 2015
The 7th of September will be spent well to get to know the surrounding of Zelenograd, and the participants of the conference through a social tour to the Technounity cluster of the city. Zelenograd was built in 1958 as a reflection of the California Silicon Valley and is also known as Soviet/Russian Silicon Valley. It was already one of the most influential centres of electronics, microelectronics and computer industry in the Soviet Union and still plays a similar role in modern Russia. Nowadays the city is the headquarters of its microelectronic solutions department. On the 8th and 9th of September, participants will have two days of activating sessions, with a focus on cluster management and regional development policies. Also, the conference will introduce a keynote speakers who will be leading experts on the subjects of internationalization, technology clusters, and innovation.
Atlanta Conference on Science and Innovation Policy
Atlanta, Georgia, 17-19 September, 2015
The Atlanta Conference on Science and Innovation Policy provides a showcase for the highest quality scholarship addressing the multidimensional challenges and interrelated characteristics of science and innovation policy and processes. The conference attracts over 300 researchers from more than 35 countries and includes a series of plenary talks; parallel paper sessions to discuss ongoing research; and a young researcher poster competition. Next year’s session will explore the research front addressing the broad range of issues central to the structure, function, performance and outcomes of the science and innovation enterprises.
4th European Colloquium on Culture, Creativity and Economy
Florence, Italy, 8-10 October, 2015
During the past decades myriad links between culture, creativity and economic practice have become major topics of interdisciplinary study. This colloquium aims to bring together leading edge scholars from across the social sciences to critically examine the intersections between these spheres and symbolic and culturally embedded values in particular, and how they are pervaded by and pervade the global economy. Our aim is to create a space for vibrant critical discussion about how ‘creativity’, cultural meanings, cultural phenomena, cultural workers and organizations are not only valuable to the market but increasingly drivers and framers of the systems of value and taste that economic actors attempt to capture and trade upon. Though culture and creativity have always been central to human civilization there is increasingly a need to understand culture and creativity as central agencies and motifs in the current stage of globalized capitalism, in the digital and knowledge economy, and in the development of human values, communities, regions and cities.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.