News from the IPL
RESEARCH
Data as asset? The measurement, governance, and valuation of digital personal data by Big Tech
Kean Birch, DT Cochrane, & Callum Ward, Big Data & Society
IPL Associate Kean Birch is a co-author on this research. Digital personal data is increasingly framed as the basis of contemporary economies, representing an important new asset class. Control over these data assets seems to explain the emergence and dominance of so-called “Big Tech” firms, consisting of Apple, Microsoft, Amazon, Google/Alphabet, and Facebook. These US-based firms are some of the largest in the world by market capitalization, a position that they retain despite growing policy and public condemnation—or “techlash”—of their market power based on their monopolistic control of personal data. We analyse the transformation of personal data into an asset in order to explore how personal data is accounted for, governed, and valued by Big Tech firms and other political-economic actors (e.g., investors). However, our findings show that Big Tech firms turn “users” and “user engagement” into assets through the performative measurement, governance, and valuation of user metrics (e.g., user numbers, user engagement), rather than extending ownership and control rights over personal data per se. We conceptualize this strategy as a form of “techcraft” to center attention on the means and mechanisms that Big Tech firms deploy to make users and user data measurable and legible as future revenue streams.
Book Launch: Innovation in Real Places: Strategies for Prosperity in an Unforgiving World
Dan Breznitz, IPL Co-Director
This is a video of a recent book launch event. For the last few decades, the dominant growth model has been to focus on technological innovation. Yet, while a small number of cities and regions have benefited, many other communities have struggled. In his latest book, Innovation in Real Places: Strategies for Prosperity in an Unforgiving World, Dan Breznitz sets out to challenge this model and sets out how these communities might succeed. He argues that by understanding the changed structure of the global system of production and then using those insights to enable communities to recognize their own advantages, cities and regions can foster surprising forms of specialized innovation.
EVENTS
June 2-3, 2021
The Urban Leadership eXchange is a certificate of completion offered by the IMIx Executive Program in collaboration with the Master of Urban Innovation program at the University of Toronto Mississauga’s Institute for Management & Innovation. Led by distinguished University of Toronto faculty, this two half-day program held on June 2nd and 3rd will bring together leading researchers and practitioners to help participants promote positive economic and social change through urban innovation. The goal of the ULX program is to help professionals across the Greater Toronto region to better understand the relationship between cities and innovation. Each ULX session pairs a U of T faculty member with a thought leader to explore urban innovation through one of three lenses: cities as centres of the innovation economy, as sites of technological innovation, or as sources of policy innovation.
PRESS
David Wolfe, Special to the Financial Post
This article by IPL Co-director David Wolfe asserts that Climate change, environmental sustainability and public health concerns are now the critical lenses through which all potential innovations must be filtered.
The Innovation Imperative: Why Canada needs to harness the power of the platform economy
Shauna Brail, Special to the Financial Post
This article by IPL Senior Associate argues that if we want to avoid being the equivalent of a branch plant economy for platform firms, we need to act.
Steven Denney and David Wolfe Special to Financial Post
This article by IPL Co-Director David Wolfe and IPL Post Doctoral Fellow Steven Denney lays out the economic case for focusing innovation supports on Scale-ups. The article notes that these firms are well positioned to advance through the recovery and be a main source of net job growth
Dan Breznitz and Dan Munro, Special to Financial Post
This article by IPL Co-Director Dan Breznitz and IPL Director of Policy Projects Dan Munro articulates why bridging the digital divide is so central to unlocking Canada’s innovation potential. The article argues that that Canada cannot afford to leave our most promising future entrepreneurs and Einsteins behind.
Editor's Pick
The Next Wave of Platform Governance
Susan Etlinger, CIGI
As companies increasingly shift to business models based on platforms, policy makers need to consider the implications for human welfare, rights and safety. The shift from product- and service-based to platform-based business creates a new set of platform governance implications — especially when these businesses rely upon shared infrastructure from a small, powerful group of technology providers. In a technology context, the term “platform” generally refers to a group of technologies that act as a foundation for the development of other applications, processes or technologies. Apple, Tesla, Amazon, Google and Facebook are all examples of companies that have monetized their technology platforms to support new types of products, services, developer ecosystems and business models. The paper explores 4 aspects of platforms: Common implications, industry-specific implications, business-specific implications, and technology platform implications.
Cities & Regions
Andrés Rodríguez-Pose, Regional Studies
Two of the most influential strands in economic geography and regional studies – evolutionary economic geography and global production networks – have run on parallel tracks with limited cross-fertilization. The Regional Studies Annual Lecture 2020 paper by Henry Yeung proposes building bridges across both strands to improve our understanding of the uneven distribution and evolution of economic activity across the world. He puts forward the concept of strategic coupling as the foundation of such bridges. In this reply, the author argues that strategic coupling will not suffice, unless the variations in costs and incentives for engaging in networks and the different capacity of cities and regions to assimilate the benefits of innovation diffusion through networks are taken into consideration.
Statistics
Statistics Canada
Research and development R&D is a key factor that drives innovation among businesses. Given the importance of R&D, advance estimates of industrial in-house R&D spending intentions are being provided for 2021 and 2020, as well as initial broad estimates for 2019. Advance results indicate that industrial R&D in-house expenditures rose 3.2% (to $20.4 billion) in 2019 from revised 2018 estimates ($19.8 billion). Expenditures are expected to fall again slightly in 2020 (to $19.8 billion), then regain all their loss in 2021 (to $20.4 billion). In addition to performing R&D, businesses outsourced $4.2 billion worth of R&D activities in 2019, down from $4.9 billion in 2018. Outsourced R&D expenditures are anticipated to drop to $3.8 billion in 2020, then rebound to $4.2 billion in 2021. Early findings indicate that 12% of businesses anticipated changes to their in-house R&D activities as a result of COVID-19. Among them, 18% expected increases in in-house R&D activities, almost half expected decreases, and the remainder were unsure of the impact.
AI measurement in ICT usage surveys: A review
Pierre Montagnier and Irene Ek, OECD
This paper takes stock of official statistics on AI use in firms collected through ICT usage surveys. Its aim is to highlight statistically sound data that can be used to guide policymakers and other stakeholders in the complex field of AI. It provides a cross-country comparison of official AI measures in selected OECD countries and international organisations by reviewing the statistical AI definitions developed explicitly for measurement purposes as well as the AI questions in official ICT use surveys. Based on the results of these surveys, the paper provides an international comparison of AI uptake among firms. It also includes a brief overview of smaller-scale non-official measures of AI, which can complement official statistics. In its final part, it makes an initial attempt to match AI policy with the AI measures previously analysed, and highlights possible next steps. This paper is also a contribution to the OECD AI Policy Observatory.
Innovation Policy
Energizing Innovation: Raising the Ambition for Federal Energy RD&D in Fiscal Year 2022
ITIF
This report asserts that the U.S. fiscal year (FY) 2022 budget is a “critical opportunity for Congress and the administration to rapidly scale up U.S. investment in energy innovation.” The Biden administration has proposed a 27 percent boost in energy RD&D at the Department of Energy (DOE) in FY 2022 and a quadrupling of government-wide clean energy RD&D over the next four years. The administration is expected to release the full congressional budget justification in late Spring 2021, and House and Senate proposals will soon follow. This report consolidates ITIF analysis of federal energy innovation programs and its recommendations to accelerate critical energy technologies. The summary herein provides an overview of federal energy innovation programs, including the key role of DOE in advancing energy technologies and the department’s impact on national energy systems. It assesses the significant updates to DOE’s program authorizations made in the Energy Act and the prospects for greater investment in the FY 2022 budget and appropriations cycle. Companion to the summary herein are 21 short policy briefs that span DOE’s RD&D programs in renewable energy, transportation, energy efficiency, grid modernization, nuclear energy, fossil energy and carbon management, and basic sciences. Each brief includes a description of the DOE’s program and technology goals; what’s at stake and potential impacts of the program; historic and authorized funding levels; and targeted recommendations for Congress and DOE to accelerate innovation. This report also includes a living interactive data visualization that will be updated throughout the FY 2022 budget cycle.
Turning Talk into Action: Building Canada’s Battery Supply Chain
Clean Energy Canada
This report outlines many of the important and immediate priority actions that Canada must take to advance as a leader in the production of battery materials and technology. The authors note that “Canada has a chance to establish itself as a major player in the global battery industry, but we must act fast to seize this opportunity. If we don’t, other countries will fill the gap in meeting the growing demand for EVs and secure the advanced manufacturing jobs, intellectual property, and other economic gains that come with it.” Developing Canada’s battery supply chain and manufacturing capacity will anchor our existing auto sector, ensure we capture the jobs and value created in the transition to electric vehicles, and support the growth of new jobs and industries in the clean energy economy.
Policy Digest
Effective policies to foster high-risk/high-reward research
OECD
This report analyses policies and research funding mechanisms designed to foster high-risk high-reward (HRHR) research, and explores promising practices for fostering HRHR research in a variety of contexts. The underlying concern is that failure to encourage and support research on risky, ‘out-of-the-box’ ideas may jeopardise a country’s longer-term ability to compete economically, harness science for solving national and global challenges, and contribute to the progress of science as a whole. The analysis in this paper is primarily based on a survey of individual HRHR research funding schemes in different countries, complemented by targeted interviews. This survey was supplemented by an analysis of HRHR research-oriented programmes and by the feedback from an international workshop that included all relevant stakeholders.
An increasing concern of the scientific community in recent years is that research funding processes have become too conservative and encourage only incremental advances in science and technology.As a result, there have been a number of calls for a change in funding processes and increased funding to support high–risk/high–reward (HRHR) research. The underlying concern, from a policy perspective, is that failure to encourage and support research on risky, ‘out of the box’ ideas may jeopardise a country’s longer–term ability to compete economically, to harness science for solving national and global challenges, and to contribute to the progress of science as a whole.
Five key policy questions for HRHR research frame the work, namely:
- What different funding instruments are used and what are their advantages and disadvantages?
- What evidence (if any) exists of the effectiveness of these different instruments?
- What is the most appropriate instrument to use in a particular context?
- Are there alternative and/or complementary non–funding policies that can be implemented, and in what context?
- What are the roles, responsibilities and constraints of different actors in promoting high–risk research?
Policy Recommendations
Policy action to foster HRHR research is required from governments, research funders and research performing institutions, ideally working in together and in synergy. These actions fall into six main areas as follows:
- Research funders are encouraged to experiment with existing and new approaches to foster HRHR research. This report offers several ideas for research funders to consider, both for designing new programmes or re–designing existing ones to foster HRHR research.
- Research funders and government policymakers are encouraged to implement a portfolio approach in the management and evaluation of HRHR research. Using a portfolio approach allows for a better risk–management at all levels, and can increase incentives for funding management, evaluation panels and individual researchers to take risks.
- Research funders, government policymakers, and research institution decision makers are encouraged to implement contextual policies and practices to encourage researchers to take scientific risks. This includes: adopting a long–term vision, both for funding and expectations; redesigning individual evaluation and promotion policies at research institutions to provide researchers with environments more conducive to HRHR research.
- As newly established HRHR research programmes mature, research funders are encouraged to evaluate their impacts rigorously, not only their scientific, societal, and economic impacts but also evaluating the programmes’ impact in fostering or discouraging HRHR research. Although most funders are likely to rely primarily on expert (peer review) post–hoc evaluation, funders are also encouraged to develop and utilize quantitative indicators in their evaluations as well. Funders are encouraged to share novel approaches for evaluating impact with the broader community.
- Interested countries and researchers are invited to further research, develop, and utilise indicators for evaluating the riskiness of research, especially in impact evaluation of HRHR and other research. Despite the increasing number of programmes intended to foster HRHR research inventoried in this report, there are few useable indicators for evaluating the riskiness of research proposals or results.
- Funding agencies are encouraged to collect and share data on HRHR research programmes that enables their comparison to more–traditional research programmes. Additional data and research on some important issues would be useful, such as knowing whether the recipients of HRHR research funds are the same as recipients of traditional grants and if not how they vary in terms of gender, career stage, or other variables. It would also be important to understand in more depth how specific HRHR research funds or policies differ from traditional research funds/policies in their design and their impact. Among funding mechanisms, there is a shortage of literature on the effectiveness of prizes, challenges, and other alternatives to peer–reviewed research grants in fostering HRHR research.
Links to recent IPL webinars
Canada’s Quantum Internet: Prospects and Perils
This is a recording of the April 20, 2021 webinar that together experts to discuss the political, economic, and scientific implications of quantum communications, for Canada and the world .Speakers: Francesco Bova, Associate Professor, Rotman School of Management, University of Toronto; Anne Broadbent, Associate Professor, Department of Mathematics and Statistics, University of Ottawa; Jon Lindsay, Assistant Professor, Munk School of Global Affairs & Public Policy and Department of Political Science, University of Toronto; Christoph Simon, Professor and Associate Head, Research, Department of Physics and Astronomy, University of Calgary; & Dan Patterson (moderator), Technology Reporter, CBS News
Intellectual Property and Entrepreneurship in Canada
This is a recording of the March 23rd 2021 webinar focused on the importance of IP protection for entrepreneurship, the intellectual property environment in Canada, and existing support for firms. Panelists discussed issues relating to their firm’s ability to secure IP especially as it relates to IP education and the role of government in supporting IP protection. Speakers: Seray Çiçek, Ryan Hubbard, Graeme Moffat, Moderator: Shiri Breznitz
Canada’s future skills strategy: Workforce development for inclusive innovation
This is a recording of the January 19th 2021 webinar discussing the Future Skills Council report, released in November 2020, which recommends equitable and competitive labour market strategies in response to disruptive technological, economic, social and environmental events. It aims to provide a roadmap to a stronger, more resilient future for Canada. In this webinar, panelists discuss the report’s key action areas and pathways to successful implementation. Speakers: Rachel Wernick, Denise Amyot, Dan Munro, & David Ticoll.
Inclusive Innovation: COVID and After
This is a recording of the December 10th 2020 webinar discussing the importance of inclusive innovation; policies needed to bring it about; opportunities and prospects for doing so in the era of COVID-19; and new initiatives for measuring and tracking progress – including GDP 2.0 and the Innovation Policy Lab’s Inclusive Innovation Monitor. Speakers: Dan Breznitz, Susan Helper, Daniel Munro, & Anjum Sultana
Urban Leadership & Innovation During Times of Crisis
This is a recording of the Dec 3rd 2020 webinar discussing how urban leaders are the frontlines of crisis response, from the COVID-19 the pandemic and its associated economic, social and fiscal challenges to the growing protests over racial and economic justice and the looming reality of climate change. This session highlights the way urban leaders can best respond to build more inclusive, just and resilient cities and generate the policy innovations that can shape enduring change. Speakers: Richard Florida, Anita McGahan, Shauna Brail, & Supriya Dwivedi
Canada’s Innovation Imperative
This is a recording of the November 9, 2020 event. Innovation contributes to regional and national prosperity and is a well-established economic concept. To succeed in building capacity and strength in this technical realm, government policies must be deliberate, systematic and rooted in expertise. Data shows that Canada missed the shift from the tangible to intangible economy. Moving forward, how can we make sure Canada builds competitive advantage through policy that leverages innovation for tomorrow’s economy? Speakers: Jim Balsillie, Dan Breznitz, Meagan Simpson (moderator).
This is a recording of the November 12, 2020 event. Bank of Canada Senior Deputy Governor Carolyn A. Wilkins outlines how the COVID-19 crisis has damaged economic potential and discusses what will be needed to thrive in the post-pandemic world. Speakers: Carolyn Wilkins, Michael Sabia, Shauna Brail (moderator).
Policymaking Under Uncertainty
This is a recording of the Oct. 14th, 2020 event focused on Policymaking Under Uncertainty. Policymaking is a challenging endeavour under the best of times, as politicians and bureaucrats seek to juggle the need for rapid and innovative interventions on the one hand with democratic accountability on the other. Speakers: Uri Gabai, Darius Ornston, Sylvia Schwaag Serger, and Dan Breznitz.
This is a recording of the Jul 16th, 2020 event focused on exploring the short and long term impacts of the COVID-19 pandemic on innovation and entrepreneurial ecosystems. Panelists included Catherine Beaudry, Ben Spigel, Tara Vinodrai, and David Wolfe.
Will COVID-19 Bring Us Together or Blow Us Apart? The Global Security Implications of the Pandemic
This is a recording of the July 7th, 2020 event focused on the national and international security implications of the COVID-19 pandemic. Janice Stein discusses the historical security lessons of previous pandemics and depressions, Jon Lindsay considers emerging military and strategic dangers exacerbated by COVID-19, and Ron Deibert discusses the cybersecurity and surveillance threats associated with the unprecedented relocation of life online.
This is a recording of the June 11, 2020 event focused on how will COVID-19 shape the future of our cities. Join experts Anita McGahan, Shauna Brail (School of Cities), and Nathalie des Rosiers (Massey College), Richard Florida (School of Cities Professor) as they discuss cities after COVID with Marcia Young, host of CBC’s World Report.
This is a recording of the June 11, 2020 event focused on the impact of COVID-19 on higher education. Speakers: Shiri Breznitz, Heike Mayer, Donald Siegel and Elvira Uyarra.
The Future of (Decent?) Work After COVID-19
This is a recording of the May 26, 2020 Munk School / Innovation Policy Lab / CIFAR event focused on the future of work after COVID-19. Speakers: Dan Breznitz, Zabeen Hirji and Peter Warrian.
Events
Co-creating Economic Recovery: New Models for Innovation Support
June 1-4, 2021
Registration for the 20th annual Research Money conference is now open! The virtual conference, "Co-creating Economic Recovery: New Models for Innovation Support" will be held June 1-4, 2021. Visit the conference website to learn more about the program and register. Register before April 30th, 2021 to take advantage spring pricing.
October 18-20, 2021, Copenhagen, Denmark
Since 1996, DRUID has become one of the world’s premier academic conferences on innovation and the dynamics of structural, institutional and geographic change. DRUID is proud to invite senior and junior scholars to participate and contribute with a paper to DRUID21, hosted by Copenhagen Business School. Presenting distinguished plenary speakers, a range of parallel paper sessions, and an attractive social program, the conference aims at mapping theoretical, empirical and methodological advances, contributing novel insights, and help identifying scholarly positions, divisions, and common grounds in current scientific controversies within the field. Please note that due to the global COVID-19 health crisis, DRUID21 is scheduled to take place in October, rather than its usual time in June. The conference will only take place if travel and health regulations permit.
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This newsletter is prepared by Travis Southin.
Project manager is David A. Wolfe