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
The Innovation System Research Network’s Fifth Publication Now Available
Global Networks and Local Linkages: The Paradox of Cluster Development in an Open Economy,edited by David A Wolfe and Matthew Lucas, presents the final case studies in the Innovation Systems Research Network’s five-year investigation of 26 industry clusters across Canada. It offers a preliminary cluster typology that accounts for fundamental differences in institutional linkages, knowledge dimensions, and stages of cluster growth. It describes clusters in regions as diverse as Toronto, Sudbury, and the Okanagan Valley and in industries as varied as biotechnology, took and die making, and mining services. The case studies exhibit an important similarity in their detailed attention to the role of early historical events in shaping each cluster’s mix of public/private actors, internal/external linkages, and its ability to adjust to internal and external market challenges.
Editor's Pick
Proceedings from the 7th Annual Innovation System Research Network Conference
The three day conference took place in Toronto and included presentations by ISRN members, visiting academics and public sector stakeholders. Agenda highlights include sessions on cluster development, Ontario ICT clusters, mapping and measuring clusters, life science clusters and more. The final day consisted of graduate student papers and took place on the Toronto Island.
Innovation Policy
Networking and Innovation: A Systematic Review of the Evidence
Luke Pittaway et al.
Porter and Ketels’ (2003) study of British competitiveness emphasised the importance of
business networking for innovativeness. Until recently insights into the dynamics of this
relationship have been fragmented. This paper presents a systematic review of research
linking the networking behaviour of firms with their innovative capacity. At an institutional level, national systems of innovation play an important role in the diffusion of innovations in terms of the way in which they shape networking activity. The paper provides evidence suggesting that network relationships with suppliers, customers, and intermediaries such as professional and trade associations are important factors affecting innovation performance and productivity. Where networks fail it is due to interfirm conflict, displacement, lack of scale, external disruption and lack of infrastructure. The review identifies several gaps in the literature that need to be filled. For instance, there is a need for further exploration of the relationship between networking and different forms of innovation, such as, process and organisational innovation. Similarly, we need better understanding of network dynamics and network configurations, as well as the role of third parties such as professional and trade associations.
Cities, Clusters & Regions
The Role of Clustering in the Growth (and Survival) of Fast-Growing U.S. High Tech Firms
Elicia Maine, et al. Simon Fraser University
Although there is a large existing literature on clustering, no clear argument has been made in
the literature that disentangles the various agglomeration effects from the firm, strategic
perspective. This paper develops a framework to explain the differential benefits accruing
to firms that locate in or near a relevant cluster. Hypotheses about the role of clustering in the
growth of technology firms are drawn from this framework and tested on a cohort of 457 fastgrowing U.S. high technology firms. The locational determinants of growth of these firms between 1995 and 1999 are examined, as is the relationship between location and survival over the period 1999 to 2002. The results indicate that distance from a relevant cluster is negatively related to growth for all firms in the sample, but clustering has a greater impact on firms that rely heavily on tacit knowledge spillovers (biotech firms). In addition, location within a diversified metropolitan area only enhances growth performance for firms that rely heavily on broad, downstream supply chain effects (information and communications technology firms).
Statistics & Indicators
Sacramento Area Regional Technology Alliance
This index tracks the 50 leading high-tech and life science companies driving growth in the nine-county region. Based on proprietary software developed by SARTA, the numerical value of the index is used to calculate movement in the financial metrics of revenue, employees, and equity capital raised. The index originally was set to a base of 100.00 at its initiation in 2003 and is updated on a quarterly basis. Through the index, SARTA is able to monitor the tech sector within the region and identify companies that demonstrate success in order to attract venture capital to the area. In 2004, a deal to license the software was made with the Greater Dallas Chamber so the alliance could customize the index for the city.
Pittsburgh Technology Council
The Pittsburgh Technology Council annually compiles the latest growth numbers from state and federal resources in order to monitor the contribution that technology companies make to the southwestern Pennsylvania region. The primary goal of this report is to quantify the impact and draw attention to the region’s significant technological resources, thereby engendering a deeper, more current understanding of the technology sector of the region’s economy. In addition to the macro-level regional analysis, this report features analyses of five key industry clusters that exist within the region. They are: information technology, life sciences, advanced manufacturing, advanced materials, including chemicals and plastics, and environmental technology.
The Boston Consulting Group
Recently, The Boston Consulting Group conducted its second annual global survey of senior executives on innovation and the innovation-to-cash (ITC) process. A total of 940 executives, representing 68 countries and all major industries, participated. 74 percent of respondents said that their companies would increase their investment in innovation in 2005.
Policy Digest
Innovation America: Cluster Based Strategies for Growing State Economies
Stu Rosenfeld, NGA
This report delves deeply into the public policy dimensions of clusters, and their significance for regional economic development. The paper outlines issues about how to define and locate relevant clusters in policy jurisdiction, but focuses primarily on strategies to develop those clusters to maximize regional development. While policy focus in North America may be shifting from cluster to city-region development strategies, this report demonstrates that the two approaches are complementary.
Determining the regional location of a state or province’s clusters is the starting point of any cluster based strategy. Identifying clusters is still as much an art as a science, but a useful picture of clusters can be drawn by combining analysis of business sectors, employment and wage data with regional observations and interviewing key business leaders. In doing so, it is critical to avoid creating a definition and boundaries that are too narrow, that cannot adjust to constant change, or that discourage collaboration among clusters.
Once clusters have been identified, the report outlines five initiatives that policy makers can use to support their growth.
Cluster Initiatives:
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Establish a Solid Foundation: This involves supporting the factors that enable the success of the cluster. These may be cluster specific, or more general, and include maintaining physical infrastructure, educational and public research infrastructure, and aligning the efforts of regional education, workforce and economic institutions.
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Build Relationships: Inter-firm and inter-cluster learning fosters innovation and prosperity. Policy makers can help build and sustain these critical relationships through the establishment of regional cluster councils, other inter-firm and inter-institutional networking events, and by supporting existing regional associations.
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Deepen Skills and Talent: By nature clusters attract and enhance talent, but governments can reinforce this tendency by creating cluster hubs at community colleges, fostering cluster-focused professional programs, encouraging cluster training consortia, as well as cluster-based career advancement paths.
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Align Innovation Investments: Policy makers can realize higher returns on their investments in research and development, centres of excellence, and business innovation by focusing on clusters.
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Accelerate Entrepreneurship: Talent and research are necessary but it takes entrepreneurship to translate good ideas into successful products and services. Policy makers can promote entrepreneurship by supporting entrepreneurial networks, creating cluster focused incubators, organizing small business centres and support, and encouraging entrepreneurship education programs at all levels of secondary and post-secondary education.
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Open Global Priorities: Successful clusters extend their networks globally. Governments can help by supporting participation in international conferences, trade shows, and study tours; by providing export assistance and by establishing cluster- based learning exchanges.
It is clear to most policy makers that cluster strategies are not silver bullets, but properly designed and applied, they can be used as one of several valuable tools to promote innovation, entrepreneurship and regional economic growth.
Events
Toronto, 17-19 May, 2005
BioFinance 2005 is a gathering of some of the most innovative minds in the life science industries and will feature presentations by senior management from over 100 life science companies from across Canada, the US and Europe. The range of participating firms includes large publicly traded and smaller listed companies and a wide range of private companies from larger and established to early-stage opportunities. The presenting companies will be developing new medicines, devices, diagnostics, medical technologies, research tools and health care systems.
Turin-Milan, 18-21 May, 2005
The 5th Triple Helix Conference will bring together researchers interested in the interaction between University, Government and Industry. The conference program will include 10 Track Sessions per day, made up of paper sessions dedicated to individual scientific contributions, workshops on selected specific themes and panels intended for industrial experts and policy makers. Theorganizers invite contributions on issues related to the conference theme: economics of innovation, organizational sociology, regional policy, business & management, cognitive economics,finance, law & economics, industrial economics, scientific and technology policy, and political science.
R&D Evaluation: Assessing Results from Research and Technology
Atlanta, 23-26 May, 2005
Many organizations are requiring programs to produce performance indicators, but these are only part of the evaluation process. The course will help you choose key performance indicators as well as design other information-gathering activities to produce a richer understanding of how well your program is working. The course is designed for managers of research or technological innovation programs, in government or non-profit funding organizations or laboratories, planning and evaluation staff who are new to the research context, and scientists and engineers who have recently moved into strategic planning or assessment. The course combines lectures with small group and individual exercises, along with team-based exercises using common case studies with opportunities to apply the concepts and techniques to your own organizations
EECO Environment and Energy Conference
Toronto, 25-27 May, 2005
EECO is a biennial ‘platform’ where business leaders, elected officials, public policy makers and NGOs meet to examine priority business and environment risks/opportunities. This series fosters dialogue and debate on building a future of increased competitiveness coupled with environmental protection. The dynamic and strategically focused program highly targeted and interactiveexposition, and engaging social events deliver outstanding value to delegates, sponsors and partners. Inaddressing the region’s critical business and competitiveness challenges head on, thisconference will feature the EECO Forum and four informative and exciting tracks.
Benevento and Napoli, Italy, 5-9 June, 2005
This conference will explore themes associated with information technology, the knowledge economy, technology policy, and the significance of place in cyberspace. The conference locations have been selected because both cities “represent more then 2,000 years of development and exemplify the ability of places to constantly change in response to social, economic and technological forces”. Local authorities will look at the changes ICTs have made in the region.
Digital Cities: The Augmented Public Sphere
Milano, Italy, 13-16 June, 2005
Participants in this workshop will discuss the opportunities and challenges resulting from the digitalization of public space. Among the issues to be addressed are the goals and the outcomes of prior virtual public spaces, difficulties encountered by civic and community networks, the limitations of digital cities, and the new frontiers of e-participation, e-consultation and e-democracy. The workshop will focus on any topics relevant to discuss how Information and Communication Technologies are reshaping the human relationships at the urban level and the public space of our cities.
Cooperation for Regional Innovation: Creating Regional, National and International Networks
Helsinki, 16-17 June, 2005
The Region is full of talents and possibilities for Innovation. However, cooperation is needed to make effective use of the research capacities, entrepreneurial spirit, creativity and local strengths in your region. In a dynamic field with many actors and rapid and constant change, scientifically proven and policy tested toolkits are hard to come by. What is needed is a structure that allows decision and policy makers to learn from each others experiences. The Technopolicy Network provides the platform to facilitate this inter-organisational learning. The main issues on the agenda include the organization of regional innovation, success and failures of policy instruments, leadership and the role of the policy maker, organizing cooperation, entrepreneurship and innovative regions – between cooperation and competition.
UK eLearning Regions and Cities Conference
Oxford, UK, 21-22 June, 2005
The 2005 UK eLearning Regions and Cities Conference will bring together the most up to date information in eLearning for regional authorities. The 2005 conference will also work with groupings of regional stakeholders (e.g. the RDA, representatives from LEAs and from HE and FE institutions, local LSCs, employers and workforce representatives, as well as locally based technology providers) to work on regional strategy and tactics. Policy is all very well, but what is needed is a sense of mutually aware action: more than just talk.
Dynamics of Industry and Innovation: Organizations, Networks and Systems
Copenhagen, Denmark, 27-29 June, 2005
The DRUID Ten Year Anniversary Summer Conference will be held at the Copenhagen Business School. The conference’s scientific committee will consider all papers in the order in which they arrive with respect to novelty, academic quality and the proposed paper’s relation to the theme of the conference.
Beyond Clusters: Current Practices and Future Research Strategies
Ballarat, Australia, 30 June – 1 July, 2005
The cluster conference is hosted by the Centre for Regional Innovation & Competitiveness (CRIC) at the University of Ballarat. CRIC is inviting scholars and practitioners to submit papers for presentation at the conference. The conference will address a range of critically important themes relating to clustering. Papers are welcomed on the following topics: Cluster Policy, Clustering Tools, Cluster Measurement and Benchmarking, Skills and training, Cluster investment and attraction and Beyond Clusters. The conference will result in two refereed publications: a special journal edition on clustering and refereed conference proceedings. If you are interested in contributing to one of these refereed publications, please submit an abstract of up to 400 words no later than April 29, 2005. Full papers will be due by May 27th, 2005.
Innovations and Entrepreneurship in Functional Regions
Uddevalla, Sweden, 15-17 September, 2005
The objectives of the symposium/conference are: i) to provide a unique opportunity for scholars and senior and junior researchers to discuss path-breaking concepts, ideas, frameworks and theory-essentials in plenary key-note sessions and parallel competitive paper sessions, and ii) to facilitate the development and synthesis of important contributions into cohesive and integrated collections for potential publication. The conference will focus on the themes of international entrepreneurship; innovation, entrepreneurship policy and regional development; entrepreneurship in the public andnon-profit sector; innovation, academic entrepreneurship and high tech firms in functional regions; and SMEs, immigrant entrepreneurship and local economic development. Paper submissions will be considered until March 15, 2005.
Creative Places + Spaces 2: Risk Revolution
Toronto, 30 September – 1 October, 2005
This conference is dedicated to unlocking the creative potential of people and places through innovative social, educational, cultural, environmental and economic initiatives. In addition to onstage presentations, the conference will offer a Creativity Marketplace, which will provide organizations an opportunity to display materials and meet with delegates to exchange ideas and share information about their work in a less formal setting. We also invite the submission of feature articles and story ideas for the Creative Places + Spaces NewsJournal. The conference welcomes submissions of dynamic presentations, demostration projects and case studies from practitioners in the fields of arts, science, business, government, education and social services suitable for the conference.
Toulouse, France, 27-29 October, 2005
This conference will bring together academic and industrial decision makers and their municipal counterparts with a view to fostering debate and discussion about best practices with respect to the creation, management and development of technology clusters.
Pretoria, South Africa, 31 October – 4 November, 2005
Globelics (the Global Network for the Economics of Learning, Innovation and Competence Building Systems) is a framework for scholars who use the concepts of learning, innovation and competence building systems as part of their analytical framework. The network is especially focused on the strengthening of research on learning and innovation systems in developing countries. In the region most in need of human and economic development, Globelics Africa 2005 aims to further examine the links between innovation, development and growth. The conference also aims to build research capacity in Africa by establishing contact between researchers from Africa and from other regions of the world, both from leading academic centres, and from other developing contexts. In addition, the conference aims to rethink and reframe the challenges of the African continent in the light of insights from innovation systems research. Scholars from innovation studies will contribute a range of approaches and perspectives to guide research, policy formulation and action to bring about societal transformation through enhanced learning, innovation and knowledge competencies.
Calgary, 16-17 November, 2005
This conference provides a forum where the innovation community of Western Canada can gather annually to network, review the latest developments, solve problems and take specific industry recommendations forward for action. Among the topics to be discussed are applied research, the culture of innovation, innovation policy and innovation support.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.