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
Waterloo and Ottawa-Gatineau Named as Intelligent Cities
Two Canadian communities Waterloo and Ottawa-Gatineau have been named among the Top Seven Intelligent Communities in the world by the New York-based Intelligent Community Forum. The Top Seven communities represent the best of the best as they were shortlisted from the ICF’s earlier Smart21 list. Each of these communities is considered a model for the world’s best practices in creating competitive local economies and vibrant societies in today’s hyper-competitive global economy, which broadband communications is increasingly linking into a dynamic whole. This Waterloo’s second appearance in the annual top seven list.
Quebec Commits Over $1 Billion for Innovation and Research Strategy
The provincial government of Québec committed to infusing $888 million (Canadian) into its science and technology community over the next three years, as a result of the innovation and research strategy released earlier this month. The new investment is in addition to $278 million committed this year alone for research infrastructure and the Québec Aeronautical Industry Development Strategy.
Democrats ’07 Budget Increases Funding for Research
Less than one week before President Bush releases the Administration’s budget request for fiscal year 2008, the congressional Democratic leadership released its solution to the FY 2007 budget. The need to remain within spending caps approved last year and the need to focus on FY08 spending meant the FY07 fix would be simple, but slightly painful for agencies used to above-inflation-rate increases each year. Sixty programs reportedly will see cuts from their FY06 funding levels. But, on the positive side, the joint resolution holds increases for numerous research centres, grants and institutions including NSF, NIH, National Institute of Standards and Technology Innovation Programs, the Department of Energy (office of Science, and office of Energy Efficiency and Renewable Energy Resources) and the Department of Defense.
Editor's Pick
The Creative Class or Human Capital? Explaining Regional Development in Sweden
Charlotta Melander and Richard Florida
Human capital is observed to be an important contributor to growth but unevenly distributed geographically. While there is consensus on the
importance of human capital to economic development, debate takes shape around two central issues. First, there is the question of how best to measure human capital. Second, there is debate over the factors that yield the geographic distribution of human capital in the first place. This paper finds that occupational or “creative class” measures tend to outperform educational measures in accounting for regional development across a sample of Swedish regions. It also finds that universities, amenities or service diversity, and openness and tolerance affect the distribution of human capital. A key finding is also that each of these factors is associated with a different type of human capital and thus they play complimentary roles in the geographic distribution of talent.
Innovation Policy
Growing Together, Are Regional Approaches Getting Any Traction?
The Benedum Foundation
This report consists of a ‘virtual roundtable’ on the future of regional approaches to economic development in the state of Pennsylvania. The consensus of the roundtable participants is that regional visions and policies are necessary to compete in the current economic climate. They highlight the importance of cooperation between regional actors, and argue that over time barriers to cooperation have diminished. The report also includes a list of cooperative successes that demonstrate the power of regional approaches.
Growing the Nations Biotech Sector: A Regional Perspective
Battelle
The publication of “Growing the Nation’s Bioscience Sector: State Bioscience Initiatives 2006” in April 2006 marked the first comprehensive
assessment of the bioscience industry from a national, state, and metropolitan area perspective. Employment metrics were employed to gauge economic activity and performance across the United States. With the majority of the written focus of the report placed on national and state trends, this report contains a more detailed examination of the biosciences at the local level.
Cities, Clusters & Regions
Catherine Haussler and Hans-Martin Zademach, Ludiwig-Maximilian University Munich
This paper addresses the evolution of biotechnology clusters in Germany between 1996 and 2003, paying particular attention to their respective composition in terms of venture capital, basic science institutions and biotechnology firms. Drawing upon the significance of co-location of “money and ideas”, the literature stressing the importance of a cluster’s openness and external linkages, and the path dependency debate, the paper aims to analyze how certain cluster characteristics correspond with its overall performance. After identifying different cluster types, the paper investigates their internal and external interconnectivity in comparative manner and draw on changes in cluster composition. The results indicate that the structure, i.e. to which group the cluster belongs, and the openness towards external knowledge flows deliver merely unsystematic indications with regard to a cluster’s overall success. Its ability to change composition towards a more balanced ratio of science and capital over time, on the other hand, turns out as a key explanatory factor. Hence, the dynamic perspective proves effective illuminating cluster growth and performance, whereas the explorative findings provide a promising avenue for further evolutionary research.
Bruce Katz and Alan Berube, The Brookings Institution Metropolitan Policy Program
This report provides an overview of the state of American cities and addresses three major questions in detail. Namely, what are the current trends and drivers of change in US cities? What factors measure and explain the success of cities in the US? What policies have promoted success? Given the similarity of pressures on Canadian and American cities (such as population growth, growing diversity, the challenges of an ageing society, etc.), this report offers some potentially useful lessons to the Ontario context. Of particular interest is its analysis of successful policy responses and recommendations. Ontario cities have many of the same strengths and weaknesses as American cities. They are equally capable as their southern counterparts of implementing urban policies that are both innovative and sustainable. While many of these measures can be pursued at the local level, ultimately successful policy design and implementation may benefit from the engagement and support of the provincial government.
Statistics & Indicators
2006 Index of the Massachusetts Innovation Economy
The Innovation Institute
According to this index, the gradual aging of the American workforce and the domestic migration of young workers may be at fault for slow economic growth in many states that have historically been successful in promoting high-tech business. The 10th anniversary edition of the Massachusetts Technology Collaborative (MTC) publication reports that the state shows several signs of recovery from the technology bust of the early 00s, but cites accelerating population loss among 22- to 34-year-olds as a major challenge for high-tech industries. The group warns that if Massachusetts continues to lose skilled younger workers, the state will be ill-equipped to capitalize on advances in emerging technologies, such as renewable energy, nanotechnology and the life sciences.
Joint Venture Silicon Valley Index 2007
Joint Venture Silicon Valley
San JoseSilicon Valley added more than 30,000 jobs over the last years total, per capita income increased, average pay rose, and value-added per worker showed significant gains. So says the 2007 Silicon Valley Index, a 60-page report to be released by Joint Venture: Silicon Valley Network at its annual State of the Valley conference February 2nd. The report shows Silicon Valley commands a large and growing share of all US venture capital investment (more than 28 percent), and that investments in clean technology have reached $300 million annually (a 900% increase) making the Valley the nations prime spot for innovation in energy alternatives. The report also shows Silicon Valley’s population is growing and becoming more global in character, with 40 percent of the work force born outside the United States, and 48 percent of the regions population speaking a language other than English in the home. This means Silicon Valley has supplanted Los Angeles as California’s most ethnically diverse region, and is now second nationally, behind Miami
Policy Digest
Next Steps for Florida Biotech
Office of Program Policy Analysis and Government Accountability (OPPAGA)
This report recommends the state’s next steps to develop its biotechnology industry should include the creation of a privately managed early-stage capital fund for investing in start-up companies, to be financed by the Legislature. The report also contends that the state should consider the creation of an “early seed gap” fund to assist university researchers in the commercialization of their discoveries, and it should improve accountability for the performance of state-supported biotech initiatives.
These recommendations come when Florida has made substantial recent investments in the hopes of enhancing the state’s biotechnology industry.
To recruit major biotech research institutes, the state has invested:
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$310 million for the Scripps Florida Research Institute,
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$155 million for the Burnham Institute
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$32 million for the Torrey Pines Institute for Molecular Studies.
In support of Florida’s research centers and universities:
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Florida has created two biotechnology Centers of Excellence, one in biomedical and marine biotechnology at Florida Atlantic University and the other in regenerative health biotechnology at the University of Florida.
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Each center is support by $10 million in state funds, supplemented by grant and licensing income
Biotech’s unique impact is supported by:
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The Capital Investment Tax Credit, which is provided for up to 20 years against a company’s state corporate income tax liability – equal to 5% of the eligible capital costs generated.
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The High Impact Performance Incentive Grant is a negotiated grant used to attract and grow major high impact facilities.
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There are also specialized workforce training, marketing and incubation initiatives in place and under development in this sector.
The biotechnology sector is one with the potential to contribute significantly to the economic prosperity of a province or region. However, with its often high capital costs, long product development and approval cycles, and the importance of basic research in sustaining future innovation, it is an area where the impact of investments plays out over the long term. What is clear is that public investment in support of universities and research centers, training, and incentives or grants, can help to stimulate significant nodes of biotechnology activities.
Events
Research Incentives: Maximizing Performance in the Knowledge Economy
Ottawa, 7 March, 2007
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.
Commercializing Photonics Technology (OPTICS Annual Members Meeting)
Hamilton, 26 March, 2007
The Government of Ontario recently announced that it will spend $300M for commercializing university science. Your local photonics cluster, OPTIC, is getting a share of this. This year’s AMM is your opportunity to let us know how you?d like to see OPTIC spend its new resources. Representatives from OPC, CPFC, INO and OCE will also be there to talk about how they can help you commercialize new science and technology.
Lisbon, Portugal, 2-5 April, 2007
This event by the Regional Studies Association will take place in Lisbon. Many topics will be discussed such as: developments in regional economics and spatial analysis; tourism, regional development and sustainability; knowledge, competition and cohesion; creativity, innovation and cultural economy, and global challenges for manufacturing and services.
Toronto, 24-27 April, 2007
BioFinance 2007 is a gathering of some of the most innovative minds in the lifescience industries featuring presentations by senior management from more than 100 Canadian, US and European lifescience companies. The range of participating firms includes large publicly traded and major private companies as well as early-stage opportunities. The companies will highlight their development plans for new medicines and technologies in the fields of cancer, cardiology, medical devices, neuroscience, immunology, genomics, diagnostics and new research tools. BioFinance 2007 will feature a CEO Forum to address specific financing and management issues relevant to Chief Executive Officers in life science companies. It will also have specialty panels on topics including access to public markets in the US and Europe, investing in medical technologies, pharma-biopharma deals and early stage venture financing from private and public sources
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.
Toronto, 28 May – 1 June, 2007
Toronto’s Information and Communication Technology (ICT) industry cluster will come together to celebrate being the largest high-tech hub in Canada and the third largest in North America. During this event a series of activities will be undertaken to showcase the depth and breath of Toronto’s high technology sector. These will include trade associations’ events such as seminars and business networking functions, job fairs, collaboration demonstrations, an ICT business open door program, school projects, educational seminars, special exhibits showcasing innovation & excellence and other ICT sector- related activities. An organizing committee formed by ICT industry stakeholders representing a cross-section of this industry, in both the private and public sectors, has been formed to implement this initiative
Photonics North 2007 – Closing the Gap Between Theory, Development and Application 
Ottawa, 4-7 June, 2007
Conference topics include, but are not limited to: biophotonics, fibre lasers and amps, guided wave devices, industrial applications, new optical materials and nanophotonics, optical sensors and detectors, optics and photonics in defence and security, photonics design and simulations, photonics devices and networks, and ultrashort pulse lasers. The call for paper submissions has been extended to February 26, 2007.
Atlanta Conference on Science, Technology, and Innovation Policy 2007
Atlanta, October 19-20, 2007
The landscape of global innovation is shifting, with new problems and actors emerging on the scene. National governments are looking for new strategies, and they are turning to the science, technology, and innovation (STI) policy research community for models and research results to tell them what works and what doesn’t, under what circumstances. The Atlanta Conference provides an opportunity for the global STI policy research and user communities to test models of innovation, explore emerging STI policy issues, and share research results.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.