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
Germany Awards ‘Elite Status’, and $26 Million, to 3 Universities
Three universities were the big winners this month as the German government announced the results of the first round of its excellence program, which is designed to make the country’s universities more competitive internationally. The University of Karlsruhe, the Technical University of Munich, and Ludwig Maximilian University, in Munich, were awarded what has become known informally as “elite” designation. The project, which will award $2.4-billion in total, began last year after much delay and opposition. The notion of singling out individual institutions for special honor and financial reward is controversial in a country where the principle of egalitarianism has underpinned the public-education system for the entire postwar era.
McGuinty Government Support Start-Up Technology Companies
he McGuinty government is funding the creation and expansion of angel investor networks that will help Ontario’s leading-edge start-up companies grow and succeed, Premier and Minister of Research and Innovation Dalton McGuinty announced recently. he government is investing $2.5 million to build and expand angel investment networks across the province. The National Angel Organization (NAO) will work with the Ministry of Research and Innovation, MaRS, the Ontario Centres of Excellence and others to ensure angel investors and start-up high-tech companies are linked together through the networks. This will help identify and nurture opportunities for investment in promising technologies. The funding is part of the government’s four-year, $46-million Market Readiness Program launched in July 2006 to help get new discoveries to market.
Editor's Pick
The Innovation Edge: Meeting the Global Competitive Challenge
Bay Area Economic Forum
For many, the word ‘innovation’ is synonymous with technology and California’s Bay Area – loaded with research institutions, human capital and entrepreneurial assets. A new report takes a look at innovation initiatives happening in that area and around the world, asking the question, “How is the Bay Area linked to other economies by cooperation as well as competition?” The report is a collection of essays on the economic challenges brought on by the emergence of China, India and other markets throughout the world. Leading with the title essay, The Innovation Edge also includes pieces on “The Emerging Global Labor Market,” and “Services Innovation as a Competitive Response to Globalization.”
Innovation Policy
Shaping Our Future: Creative Ideas for Transforming Western Canada’s Economy
Todd Hirch, Canada West Foundation
This report looks at what factors will be most important to sustaining Western Canadian growth and prosperity through 2026. It identifies five priority areas to ensure these goals: training the brightest, most highly educated, and most productive work force in the world; fostering creativity and innovation among scientists, entrepreneurs, artists, and everyone who contributes to the western Canadian economy; developing a flexible, adaptable, and agile workforce; establishing an efficient transportation system across the West, and building a world-class communication system; and respecting the physical environment while at the same time finding new, responsible and sustainable ways to create wealth from the West’s bountiful natural resources.
Giving with One Hand, Taking Away with the Other: Commentary
Kenneth J Mackenzie, CD Howe Institute
Recent research suggests that Canada’s tax system acts as a drag on innovative activity. In effect, the Canadian approach has been to give with one hand, by providing generous tax credits targeted at R&D, and to take with the other, by imposing high taxes on the fruits of innovative activity and entrepreneurship. Canada’s tax treatment of business spending on R&D does appear to be internationally competitive. The cornerstone is a 20 percent federal tax credit — for small businesses it is 35 percent — which most provinces top up with a further R&D credit of 10 or 15 percent. The result is “one of the most generous scientific research and experimental development tax incentive regimes in the world”, according to the federal Department of Finance. And among industrialized countries, in terms of direct tax subsidies per US$1 of R&D expenditures, Canada is indeed near the top. Despite this support, Canada ranks low in aggregate R&D intensity — that is, R&D as a percentage of gross domestic product. On this measure, business R&D in Canada in 2004 was 1.07 percent — below the average of 1.53 percent for OECD member countries and well below that of other Group of Seven major industrialized economies except Italy. Canada also compares poorly to Sweden, for example, which provides few direct subsidies for R&D (but has a very competitive production tax regime): business R&D as a percentage of GDP in Sweden is about double that in Canada. This report provides some suggestions as to how Canadian public policy can address these findings.
Proceedings of Technology Transfer Society Annual Conference
This event was held on September 27 – 29, 2006 in Atlanta, USA. Among the over 100 papers available online related to the theme of “Next Generation Approaches: New Approaches and Policy Designs” are: ‘Firms’ utilization of knowledge external sources: towards a holistic approach’, ‘Inter-Cluster Innovation Differentials: The Role of Research Universities’, ‘Policy and Networking: An RIS Case in Korea’, ‘Firm Characteristics: Collaborative Culture and Perceived Issues with University-to-Industry Knowledge Transfer’, and much more.
Cities, Clusters & Regions
Building Successful Cities: Lessons from the United Kingdom
Marni Cappe and Anne Golden, Conference Board of Canada
The United Kingdom is impressing urban advocates with the coherent and comprehensive strategies it has adopted for building successful cities—notwithstanding the lack of local autonomy in its highly centralized system of government. This briefing examines U.K. national and local governance solutions to the challenges facing its cities and highlights key lessons relevant to Canada. It looks at national and local solutions—developed and implemented in spite of the lack of local governance autonomy—to the challenges facing its major cities and pulls out lessons relevant to Canada. The level and quality of urban regeneration now underway in the U.K., and the optimism and confidence that accompany this regeneration, show how political and community backing can propel the urban agenda forward. Key lessons for Canada focus on developing partnerships, investing in gateway cities, recognizing the importance of local leadership and developing a national policy focus on major cities.
Statistics & Indicators
The Use and Limitations of Indicators in the Context of City Region Development Strategy
PREST/CRIC for Manchester Knowedge Capital
This discussion paper is the main outcome of Stage 1 of the Manchester:Knowledge Capital (M:KC) indicators project. The primary objective of Stage 1 was to produce (this) discussion paper providing a challenging and critical overview of the use, limits and problems of indicators for use in economic development policy at the city-region scale.
Canadian University Publications 2006
Re$earch Inforsource
This paper is the first in a series of annual reports analyzing scientific publications from Canadian universities and affiliated research hospitals. It provides in-depth analysis of the publishing output of 69 research institutions in Canada from 1999-2004. If you want to know how much Canadian scholars publish compared to those from other countries, which universities publish the most, or what the Average Relative Impact Factor (ARIF) is of the publications out there, this is the data source for you. It also attempts to define some new indicators, including “publication efficiency” (an analysis of how research funding translates into publications) and “publication effectiveness” (a comparison of the cost vs. the “quality” of the publications).
Innovation Capabilities: The Knowledge Capital Behind the Survival and Growth of Firms
John Baldwin and Guy Gelatly, Statistics Canada
This paper summarizes the findings of a research program aimed at outlining the importance, to the firm growth process, of competencies that arise from investments in intangible assets. The program has consisted of two parts. First, longitudinal databases have provided a rich set of studies on entry, exit, mergers and other aspects of dynamics related to growth and decline in firm populations. These studies have shown the pervasiveness of growth and decline in the firm population. By themselves, these studies do not demonstrate what strategies differentiate the most successful from the least successful. To do so, this paper builds a set of business surveys that allowed profiles to be developed of the type of competencies that stem from investments in organizational capital. In turn, these are linked to administrative data that allow us to classify firms as either growing or declining. We then asked how differences in competencies were related to the performance of firms.
Events
Toronto, 1 November, 2006
This is the fourth year for BioFinance Early Phase which will feature presentations by the CEOs from 30 emerging life science companies from across Canada. It will also highlight panel discussions on topics such as: early stage financing, aspects of the deal, insights from biotech entrepreneurs and access to US financing sources. The conference will aslo include presentations by Technology Transfer Offices from various Universities and Research Hospitals.The presenting companies will include those developing new medicines, devices, medical technologies and systems, new research tools including software and hardware and industry product and service providers. These companies will likely have some financing already in place and will be looking to raise up to $5 million. There is also a partnering program for the presenting companies and technology offices. BioFinance Early Phase attracts about 250 people who will include seed fund managers, angel investors, venture capitalists, private equity firms, legal and consulting industry leaders, pharmaceutical executives, biotechnology industry service providers, and media.
Convergent Medical Technologies: Innovation to Implementation
Toronto, 2 November, 2006
Convergent Medical Technologies (CMT) 2006 is YORKbiotech’s 2nd annual conference aimed at bringing together stakeholders from industry, research institutions, health care organizations, financial institutions and government organizations to discover new opportunities for collaboration and innovation.The conference will attract over 200 leaders from companies (small, medium and large), hospitals, research institutions, financial institutions and government organizations who are interested in building networks, exploring and showcasing innovative ideas for products and services, and developing policies and marketing strategies.
Creative Clusters Conference 2006
NewCastleGateshead, UK, 5-8 November, 2006
As the creative industries collectively become major employers, exporters and sources of wealth, are they ready to take on the responsibilities of holding up the economy? It’s one thing for the creative industries to demand serious attention as economic players, and quite another for them actually to take on the role in society of the manufacturing, engineering and extraction industries it is claimed they are replacing. Or is what we are witnessing a different approach to yesterday’s economy? When Bob Lutz, Head of Product Development at GM says ‘we are in the arts and entertainment business’, and the UK Arts Council’s Chief Executive demands ‘arts in the core script’ of policy – education, foreign policy, health and the economy – who is invading whose territory? ‘Creativity’ is increasingly being seen as the strategy that all businesses must adopt to take on the challenges of globalization. But are globalization and the opportunities of creativity really the zero-sum games that these positions imply? And if creativity is a driving force in economic development, are the values hitherto championed by culture, or by commerce, driving change? Or is there another future, a third way, in which people, places and profit reach a new accommodation? These are just a few of the issues to be addressed at this years conference.
Research Incentives: Maximizing Performance in the Knowledge Economy
Ottawa, 15 November, 2006
As Canada continues to cope with the globalization of the knowledge economy, Canadian firms are facing stiff competition from an increasing number of players. They also have more opportunities for global sales, marketing and distribution; and global collaboration, partnerships and outsourcing. For Canada to remain competitive, we need a policy environment that is attractive to entrepreneurs and firms in knowledge-based sectors. What kinds of research and innovation incentives will effectively support the growth of knowledge-based firms in Canada? There are clear choices, including tax measures, the programmatic approach, grants (like the US model), technology transfer from publicly-funded institutions, improving the general business environment. What mix of incentives will the new government in Ottawa choose? How will these choices affect existing programs and policies? What role do different levels of governments have to play and how can they coordinate and focus their efforts? How are other countries using research and other incentives to grow their knowledge-based sectors? This one-day event will explore these and other issues related to research and innovation incentives. Business leaders and other experts will elaborate how Canadian policy makers can utilize incentives to support a vital and growing private sector capable of winning globally.
DRUID-DIME Academy 2007 PhD Winter Conference on Geography, Innovation and Industrial Dynamics 
Aalborg, Denmark, 25-27 January, 2007
The conference is open for all PhD students working within the broad field of “industrial dynamics”. The conference is organized by the DRUID Academy for doctoral education and training in collaboration with the EU 6th Framework Network of Excellence DIME Consortium. The event will take place in Denmark on January 25-27, 2007. All doctoral students who wish to present a paper at the DRUID-DIME Academy Winter 2007 Conference must submit an extended abstract (minimum 1000 words; maximum 2000 words) before the deadline of November 6, 2006 through the conference website.
Hydrogen Fuel & Fuel Cells 2007: International Conference and Trade Show
Vancouver, 29 April – 2 May, 2007
Today’s energy challenges have no boundaries. Energy security, climate change, and clean air concerns challenge communities around the world. International research, business and policy collaborations are ensuring that technologies, such as hydrogen and fuel cells, will provide a sustainable future for generations. This conference and trade show will highlight these global activities and developments. Canada, and particularly Vancouver, boasts unrivalled hydrogen and fuel cell expertise. Don’t miss out on the chance to explore BC’s Hydrogen Highway, experience the latest in hydrogen and fuel cell innovations and visit the most advanced hydrogen and fuel cell research facility… the National Research Council’s cutting-edge Institute for Fuel Cell Innovation.
Miami Beach, Florida, 13-17 May, 2007
IAMOT 2007 will provide an international technical forum for experts from industry and academia to exchange ideas and present results of ongoing research in the following tracks: Knowledge Management, Green Technologies, Social impact of technology development . MOT Education and Research / Corporate Universities . New Product/Service Development . National and Regional Systems of Innovation . Small and Medium Enterprises . Emerging Technologies . Technology Transfer, Marketing and Commercialization . Technology Foresight and Forecasting . Information and Communication Technology Management . The Integration of Technology and Business Strategies . R&D Management . Project and Program Management . Industrial and Manufacturing System Technologies / Supply Chain Management . New Forms of Organizations . Management of Technology in Developing Countries . Technological Alliances, Mergers and Acquisitions . Theory of Technology . Technology Incubation . Management of Technology for the Service Economy . Innovation/technological development and productivity
Singapore, 16-18 May, 2007
Organized for the first time in Asia, Triple Helix VI 2007 will provide a global forum for academic scholars from different disciplinary perspectives as well as policy makers, university administrators and private sector leaders from different countries to exchange and share new learning about the diverse emerging models of the entrepreneurial university, the changing dynamics of University- Industry-Government interactions around the world and the complex roles of the university in local, regional and national economic development.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.