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
Ontario Fast-tracking Next Generation of Jobs Fund
Ontario is launching its Next Generation of Jobs Fund to give companies quicker decisions so they can get projects off the ground and create opportunity for families. The Next Generation of Jobs Fund is part of Ontario’s plan to keep pace with changes in the global economy and create jobs for families. The government is providing $1.15 billion to support companies whose products reduce pollution, save energy, make transportation more efficient or help the environment in other ways.
The Program on Globalization and Regional Innovation Systems (PROGRIS) based in the Munk Centre for International Studies at the University of Toronto recently launched a new and improved version of its website. This site contains policy presentation documents, recent publications and seminar information. Please check it out and your comments and feedback are greatly appreciated.
Social Science and Humanities Council Supports Major New Research
The Social Sciences and Humanities Research Council (SSHRC) has announced a $10-million investment in four Major Collaborative Research Initiatives (MCRIs). SSHRC’s MCRI program supports research projects that address critical issues of intellectual, social, economic and cultural significance. The initiatives co-ordinate the work of many researchers from around the world under the banner of single, large-scale research projects.
Editor's Pick
Linking Urban Economies with Productivity Growth: 1989-1999
John Baldwin, et al. Statistics Canada
This new study provides strong evidence that ‘agglomeration economies’ in urban areas, resulting from an improved mix of labour and industries, have an important impact on the productivity growth of manufacturing plants in Canada… This new study measured how the changing nature of urban economies over the 1990s affected the productivity performance of plants. In doing so, it provides a stronger foundation for claims that productivity growth and urban economies are linked.
Innovation Policy
Environmental Innovation and Global Markets
OECD
This report examines the links between environmental innovation and globalization from two perspectives. It explores, on the one hand, how firms are adapting their environmental innovation strategies to the challenges and opportunities of global markets, and on the other, ways in which governments are promoting environmentally-related innovation in the context of a globalizing economy.
Innovation Nation: Unlocking Talent
Department of Innovation, Universities and Skills (DIUS)
The UK government’s White Paper highlights the critical role that higher education plays in the competitiveness of the nation and productivity of its public services. Higher Education Funding Council for England (HEFCE) funding enables universities and colleges to develop the new ideas and creative and innovative people that are at the heart of the “Innovation Nation”. The paper sets out how businesses and people in the UK are best placed to benefit from the new opportunities and prosperity created by the demand for innovation. It outlines a range of initiatives intended to help small businesses to link up with universities and colleges to develop new products and services.
Cities, Clusters & Regions
Entrepreneurship and Urban Success: Towards a Policy Consensus
Ewing Marion Kauffman Foundation
This report provides a roadmap for how regional economies can grow by forming and cultivating new firms rather than chasing after existing ones. While more and more regions are coming to agree with the assessment that “smokestack chasing” is largely a zero sum game in fostering economic growth, the new challenge centers on what policies officials can implement to encourage the formation of entrepreneurial business clusters. While the effectiveness of any single policy approach to creating a business cluster is relatively modest, the research finds that the strongest consensus supports streamlining local regulatory approvals to forming new businesses and discouraging progressive taxation at the state and local levels. The least attractive options involve policies that target spending either on research programs or on particular industries or particular firms. The report contends, however, that localities rarely have the requisite expertise required to make good decisions in this area. In total, the report addresses seven areas of government policy that affect entrepreneurial activity including: education, local policies toward crime and amenities, physical infrastructure spending, legal infrastructure, general and targeted aspects of the tax code and targeted spending on entrepreneurial activities.
Sandra Philippen and Bert van der Knaap
To enhance our understanding of why some clusters become networks of strategic collaboration and others don’t, the authors of this paper study link formation within European biopharmaceutical clusters. More specifically they look at the effect of cluster characteristics such as number of start-up firms, established firms or academic institutions, or the nature of the collaborations on the probability of local link formation.
Entrepreneurship and Innovation Strategies in ICT SMEs in an Enlarged Europe (EU25)
K. Lal & T. Dunnewijk, UNU-MERIT
The innovation strategies of entrepreneurs are mapped with growth and performance of their firms in this study. Findings of the study are based on the data collected from 1238 small ICT firms located in 25 member states of European Union. The survey was conducted during October 2006 and March 2007. Results of Logit analysis suggest that firms that pursued continuous innovation strategies experienced more employment growth, higher profitability, and better sales dynamics than those that adopted occasional innovation approach. Market growth of continuous innovating firms realized faster pace than other type of firms. Another distinguishing characteristic of two types of firms emerged is market preference. Target market of continuous innovating firms has been European or global markets while innovative activities of other firms targeted domestic market. The study concludes that European innovation policies should be focused towards continuous innovation activities with due attention to human resource development policies.
Statistics & Indicators
The Canada-US ICT Investment Gap – An Update
Centre for the Study of Living Standards (CSLS)
In 2005, the CSLS published a report that examined ICT spending in Canada and the United States between 1987 and 2004. It found that Canadian firms lagged considerably behind US firms in ICT spending and that this situation accounted to some extent for the lower labour productivity growth experienced in Canada. This report provides an overview of the latest developments using the most recent update of the CSLS ICT database. It finds that ICT investment spending in the United States in 2005 and 2006 continued to outpace that in Canada, increasing an average of 5.6 per cent annually in the United States compared to 3.3 per cent in Canada when expressed in current dollars. Following this trend, nominal ICT investment per worker in domestic currencies also grew faster in the United States than in Canada in 2005 and 2006, 3.7 per cent versus 1.6 per cent.
Nokia Siemens Networks
The Connectivity Scorecard is a pioneering global information and communications technology (ICT) index that measures the extent to which governments, businesses and consumers make use of connectivity technologies to enhance social and economic prosperity.Unlike other research available, the Connectivity Scorecard measures usage and skills such as literacy, the use of enterprise software and the accessibility of women to ICT. It also articulates the benefits of connectivity explicitly in terms of economic and social contributions taking into account varying needs in different countries.
Policy Digest
A Review of Rural and Regional Development Policies and Programs
Mark Goldenberg, CPRN
Federal and provincial governments in Canada and their counterparts in other jurisdictions have struggled with the challenge of reversing rural depopulation and strengthening rural and regional development. Responses have varied and had varying degrees of success. Four approaches have marked government policy and program activity: using primarily economic instruments; innovation and technology development; community economic development and the social economy; and, community development and capacity building. This document describes innovative approaches in polices and programs for rural and regional development from 13 jurisdictions in Canada, Europe and the United States.
The research suggests that public policy approaches in this area fall into several broad categories:
° “traditional” approaches, using primarily economic instruments;
° innovation and technology development;
° community economic development and the social economy; and,
° community development and capacity building.
New Governance Models
Cutting across many of these different approaches to rural and regional development are new governance models that are increasingly being adopted by governments. Key themes of these new governance models are: partnerships among governments, the private sector, communities, voluntary organizations and others; greater devolution to the regional and local level; new roles for the state as an “enabler” and “convenor”; and the sharing of power and authority with the community itself.
Innovative Policies and Policy Instruments to Promote Rural and Regional Development
CPRN examined a large number and wide variety of policies and policy instruments to promote rural and regional development, which are described in the appendix to this research report. The report also highlights a number of policies and policy instruments that appeared to be particularly innovative and that illustrate different types of policy approaches. These include:
° Ontario’s Rural Economic Development (RED) Program;
° Quebec’s ACCORD program to support the development of regional niches of innovation and excellence; Quebec’s financial support for community development corporations and for community and volunteer action;
° The Resilient Communities project in British Columbia;
° The European Union’s LEADER+ approach to the development, implementation and delivery of rural development policies and strategies;
° The United Kingdom’s Community Empowerment Action Plan and its Local Strategic Partnerships to strengthen communities through “place-based” local governance and “joinedup” public services;
° Scotland’s Investing in Communities Fund and One-Stop Service Shops;
° Finland’s Rural Policy and Village Action programs;
° the Norwegian system of land and resources ownership, which gives municipalities significant income from renewable energy development; and
° the United States Rural Community Empowerment, Rural Champion Communities, and Rural Economic Area Partnership Zones programs; Oregon’s Regional Investment Funds; Alaska’s Community Development Block Grants; and Wisconsin’s Community Facilities Direct Loans and Grants program.
Lessons Learned from Canadian and International Experience
CPRN’s review of recent research literature on rural and regional development, and its examination of policies and instruments in Canada and other countries, suggest a number of key lessons:
° Traditional approaches and instruments such as regional development programs and support for economic development, job creation and enterprise development, are insufficient for meeting the challenges of regional, rural and community development today;
° Rather, these must be combined with more holistic community- and place-based approaches and initiatives that involve the local community and citizens and that help create and build on local assets and resources, while bringing other resources to bear;
° In this context, strategic investments – in people, communities, local asset building, and technology – can make a difference;
° A range of policy instruments and measures will need to be brought into play, including financial assistance for developmental projects; seed monies; support for innovation and technology; support for community development and capacity building; resources for consultation, planning and community empowerment and involvement; and expert and technical assistance;
° Effective partnerships – involving government, business, labour, educational institutions and others – are essential;
° Strategic planning, involving the local community and citizens, and full and active consultation, are critical;
° Governance matters. Effective governance – including consultation mechanisms, planning, networking, delivery systems, and monitoring, accountability and evaluation – must involve the local community, citizens, the private and non-profit sectors, government, education, and others.
Conclusion
Rural and regional development policies are continuing to evolve to reflect changing economic, social and demographic realities.
Governments in Canada and in other countries have introduced a wide variety of innovative policy instruments in this area in recent years. Some of these may well be of interest to Ontario in considering how best to address the province’s current and future challenges.
It is hoped that the overview of policies and policy instruments presented in this research report will be helpful in encouraging public discussion about these issues. Further analytical work in this area could include more detailed examination of the
characteristics and success factors associated with the different policy approaches, as well as key issues and challenges in their implementation, and more in-depth analysis of specific initiatives and innovations in different jurisdictions.
Events
International Forum on the Creative Economy
Ottawa, 17-18 March, 2008
The Conference Board of Canada and The Department of Canadian Heritage, Government of Canada, are pleased to announce a Call for Papers for the International Forum on the Creative Economy. Papers are welcome in either of Canada’s official languages, French or English. This International Forum will include keynote speakers, presentations, lectures, and other activities aimed at examining recent evidence on the arts and cultural sector as an important engine of economic growth. Papers must address one or more of the four Forum themes listed below. Descriptions and examples of these themes are attached: Creative Economy in Transition: Arts and Culture in Domestic and Global Markets; Measuring Arts and Culture as an Economic and Social Engine of a Country’s Wealth; Consumption Dynamics: Consumers Driving Change; Innovation and Research: Mobilizing New Practices.
Tech Policy Summit: Collaborating to Drive Technology Innovation and Adoption
Hollywood, CA, 26-28 March, 2008
Tech Policy Summit is the only executive conference of its kind that brings together prominent leaders from the private and public sectors to examine critical policy issues impacting technology innovation and adoption in the United States and beyond. The nonpartisan gathering provides an independent, balanced forum for learning and networking among an exclusive group of industry insiders, government officials, nonprofit leaders and academic experts who may have different perspectives but who share a common goal of enabling innovation. The central mission is to bridge the gaps that sometimes exist – even between like-minded organizations with common goals – and to encourage more dialogue so that there is greater accord between what happens in D.C. and what matters within the technology industry. The theme for the 2008 Summit is Markets in Transition: Collaborating to Drive Technology Innovation and Adoption, and sessions will focus on America’s competitiveness in the global economy and the growing impact of convergence on the high tech, digital entertainment and communications industries.
Knowledge in Space and Time: Economic and Policy Implications of Knowledge-Based Economy
Strasbourg, France, 7-9 April, 2008
Contemporary economic, social and geopolitical developments are strongly influenced by two trends: the increasing globalization of the economy and the rise of the knowledge society. This confronts Europe with major organizational challenges. The DIME (Dynamics of Institution and Markets in Europe) Network of Excellence aims to analyze the dynamic features of these processes. The “DIME-vision” is strongly rooted in the idea of multi-level governance as a way of solving many collective problems related to the generation and use of knowledge in the European society at large. Because of the localized and tacit character of knowledge, and its embodiment in specific communities of practice and networks of practitioners, it is essential to take into account the spatial nature of knowledge generation and exchange activities as well as sectoral industrial structure and the configuration of organizations. Indeed, proximity (both in a spatial and organizational sense) plays an essential role in the circulation of knowledge. In April 2008, DIME will be ending its 3rd year of existence. At this occasion, we aim to create an opportunity for the presentation of the most salient dimensions of DIME research, and to open a space for debating them with a broader community.
European Perspectives on Innovation and Policy 
Stockholm, Sweden, 16-17 April, 2008
This VISION Era-Net Workshop will focus on the following two themes: research strategies of open innovation in Europe and new innovation governance systems in Europe.
Alliances for Innovation: Techniques and Tools for Collaborative Growth
London, UK, 17-18 April, 2008
The masterclass “Alliances for Innovation” takes a broad view of the process of forming alliances. All aspects of innovative alliances will be addressed: from finding innovative partners to creating a collaborative culture.
Second Conference on Micro Evidence on Innovation and Development
Beijing, China, 21-23 April, 2008
The aim of the conference is to bring together researchers from around the world to discuss the importance and the different dimensions of innovation in relation with economic growth and development. Contributions based on micro data from firm or household surveys, case studies and cross country comparative analyses are particularly wanted. In this second Conference, a particular emphasis will be put on innovation in China and other BRICS (Brazil, Russia, India, South Africa) countries. Contributions on other countries, in particular developing countries, are also welcome.
Canadian Innovation Exchange (CIX)
Toronto, 29-30 April, 2008
CIX will showcase the best and brightest entrepreneurs and shine a spotlight on emerging technologies. The two-day event will feature an innovation marketplace, flash-forward presentations on the state of technology, and facilitated networking opportunities. Co-chairs of CIX are Robert Montgomery, a private investor and CEO of Achilles Media; Sean Wise, Managing Director of Wise Mentor Capital and former Chair of the Canadian Venture Forum; and Rick Nathan, Managing Director of Kensington Capital Partners Limited and President of CVCA, Canada’s Venture Capital and Private Equity Association. CIX is intended to fill a void in the marketplace for an efficient and cost-effective meeting place leading to the development of innovative companies. CIX is geared towards: CEOs, CIOs and CTOs of public and private companies interested in innovation; Founders of fast growing startups; Members of the entrepreneurial ecosystem including banks, lawyers and government officials; and sources of capital.
Montreal, 30 April, 2008
This tenth meeting of the members of the Innovation Systems Research Network (ISRN) will be attended not only by co-investigators, domestic collaborators and our distinguished Research Advisory Committee members who come from various disciplines in Europe and the United States, but federal, provincial and municipal officials who have a stake in the outcomes of our current major collaborative research initiative entitled: Social Dynamics of Economic Performance in City-Regions. The policy day explores the policy implications of ISRN cluster studies, economic strategies in metropolitan regions, and the role of civic organizations in urban ecoomic development.. Presenters include members of the ISRN and economic development officials from the cities of Toronto and Montreal. All interested government and industry members are invited to register for the 10 th annual meeting of the ISRN. Approximately 80 members of the current MCRI II project, now in it’s 3rd year, will be meeting in Montréal to discuss the progress of the City-Region Initiative. During the sessions, project researchers are disseminating information about our ongoing research and discussing issues related to our national research project
Creative Construct: Building for Culture and Creativity
Ottawa, 29 April to 1 May, 2008
This symposium will bring together participants from around the world to exchange the latest ideas and practices on the development of cultural and creative spaces; cultural planning and investment strategies for cultural infrastructure and cultural districts; and collaborative approaches to enhancing the cultural vitality, creative potential, and competitiveness of cities and communities. The international symposium includes keynote speakers, presentations, panels, and various styles of workshops to examine the role and importance of cultural infrastructure in furthering culture and creativity in cities and communities. The symposium will bring together diverse resources and expertise, and foster an exchange of knowledge and experience extending from grassroots opportunities to international issues.
Toronto, 6-8 May, 2008
BioFinance 2008 is a gathering of some of the most innovative minds in the life science industries from Canada, US and Europe. Presenting Companies range from large publicly traded and major private companies to small 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.
9th International Digital Government Research Conference: Partnerships for Public Innovation
Montreal, 18-21 May, 2008
The 9th annual international conference is a forum for presentation and discussion of interdisciplinary digital government research and practice and its applications in diverse domains. The conference is presented by the Digital Government Society of North America (DGSNA), with major support from the US National Science Foundation. The conference theme, Partnerships for Public Innovation, focuses on information-intensive innovations in the public sector that involve linkages among government, universities, NGOs, and businesses. This theme emphasizes the importance of sharing practical issues, policy perspectives, research insights, and expert advice, in order to reach higher levels of performance in diverse public enterprises.
Toronto, 20-21 May, 2008
Does Canada have what it takes to grow domestic multinationals in knowledge-based industry sectors such as ICT, biotech and cleantech? What is the nature of Canada’s entrepreneurial culture? Are Canadian entrepreneurs able or willing to grow multinational firms? Does Canada have the executive talent to run tech multinationals from a Canadian base? Is such behaviour encouraged and recognized positively in Canada? Do we train our young people for these kinds of entrepreneurial and executive roles? Leading tech entrepreneurs and executives in Canada, the U.S. and abroad share their own experiences and perceptions on Canada’s entrepreneurial culture, and explore ways to improve Canada’s performance in knowledge-based commerce.
STI Indicators for Policy: Addressing New Demands from Stakeholders
Oslo, Norway, 28-30 May, 2008
The recent years have witnessed an extraordinary diversification of the demands for Science and Technology Indicators for policymaking and strategic decision of the actors involved in S&T policies. New demands have emerged as a consequence of the growing complexity of innovation systems at the regional, national and international level and of the needs of new indicators types to characterize the position and the linkages of individual actors (so-called positioning indicators). Whole new fields of indicators have emerged, like collaboration indicators, web indicators, indicators on human resources and mobility, while even in classical domains like input measurement existing indicators are no longer adequate to the needs of policy. The conference aims to provide a locus both for general methodological discussion concerning new indicators, their use in policymaking and the requirements for their production, and for presenting new developments in indicators for specific domains and policy issues, concerning their design, methodology, experimental development and application to policy analysis and decision-making.
Photonics North 2008: Closing the Gap Between Theory, Development and Application
Montreal, 2-4 June, 2008
The Photonics North event is thus a unique opportunity to visit a beautiful city, participate in an outstanding international event and meet with representatives from numerous innovative photonics companies.
Evidence-Based Policy Making: International Best Practices in Connecting Science and Policy
Amsterdam, Netherlands, 19-20 June, 2008
The aim of this conference is to connect a broad range of views, internationally as well as transdisciplinary on ‘Evidence Based Policy Making’. Seasoned policy makers and experienced researchers from all over the world will give an insight into their own experiences, providing ample examples and concrete tools for evidence based policy making.
Advancing Small Business and Entrepreneurship: From Research to Results
Halifax, 22-25 June, 2008
Please join researchers, educators, policy makers and business service providers from around the world at the 53rd International Council for Small Business (ICSB) World Conference. The theme of the conference is “Advancing Small Business and Entrepreneurship: From Research to Results”. A key aim of the conference is to bridge the gap between research and action.
Mexico City, 22-24 September, 2008
GLOBELICS (Global Network for Economics of Learning, Innovation, and Competence Building Systems) is an international network of scholars who apply the concept of “learning, innovation, and competence building system” (LICS) as their framework and are dedicated to the strengthening of LICS in developing countries, emerging economies and societies in transition. The research aims at locating unique systemic features as well as generic good practices to enlighten policy making relating to innovation, competence building, international competitiveness, regional development, labor market and human capital development. In an increasingly global and knowledge-based competition, management strategies need to be based upon an understanding of these framework conditions and the public policies which seek to regulate the environment. For the sixth conference to be held in Mexico City papers that contribute to the understanding of ‘Styles’ or modes of Development (or Political Economy of Development): paradigms of public policies, conflicts, trade-offs and choices among alternative public policies will be welcome.
Newcastle, UK, 4-5 September, 2008
It is generally acknowledged that regional economic success in Europe is dependent on an orientation towards a knowledge-based economy, typified either by high value added, creative and science-based industry, or a focus on advanced business services. For those regions lacking such advantages the emphasis of policy has been placed on developing new clusters of knowledge-based industries through a variety of measures including networking activities, university-based initiatives and support for new start-ups. A key problem though has been the absence of a clear understanding of what would constitute progress towards a knowledge-based economy, never mind what should be the most appropriate policies. One particular problem is the lack of consensus between quantitative and qualitative researchers on how to assess the state of the knowledge base and on the nature of the policy objectives. Through the inclusion of varieties of approaches to exploring the regional knowledge economy this seminar will offer opportunities to draw comparisons between the findings of various research strategies. In so doing, the seminar will stimulate a dialogue within which new developments may be initiated to bridge the various research communities and thereby offer new insights into the role of knowledge in regional economic development and subsequent policy implications.
PRIME International Conference 2008
Mexico City, 24-26 September, 2008
Both the Latin American and European countries recognize that innovation and knowledge are central to the future growth and vitality of their economies and the improvement of quality of life of their citizens. To be successful policies aimed at encouraging research and innovation should recognize the importance of specific institutional arrangements and adaptation to the different sectors and knowledge fields. The Europe-Latin America Conference on Science and Innovation Policy will explore the research/knowledge base, the factual and the normative principles that inform those policies, taking account of the current dynamic international context, promoting mutual learning between the communities of researchers, analysts, R&D managers and policy makers. The aim of the conference is: to stimulate the exchange of experiences about science, technology and innovation policies in Latin America and European countries to promote mutual learning, improve the quality of the research in the field, enhance the impact of the research in the policy making and foster the diffusion of the best practices amongst countries of Europe and Latin America, considering an adequate balance between convergence and diversity.
GLOBELICS International Conference 2008
Mexico City, 24-26 September, 2008
For the sixth conference to be held in Mexico City papers that contribute to the understanding of ‘Styles’ or modes of Development (or Political Economy of Development): paradigms of public policies, conflicts, trade-offs and choices among alternative public policies will be welcome. The conference will be organized around the following themes on the following issues: Innovation, economic development and inequality (Education, Health, Employment, Migration, Gender Equity, Income Distribution). The conditions for developing sustainable systems of innovation. Biofuel, energy systems, water supply, transport, tourism and sustainable development. The role of new ‘horizontal technologies’ (ICTs and biotechnologies). Innovation in indigenous knowledge systems and in traditional sectors (e.g. agriculture, handcraft, clothing, eco-tourism, etc.). Factors affecting differences in economic growth rates: convergence vs divergence in productivity and welfare standards. Patterns of sectoral catching-up. Globalization, autonomy/openness and development. The links between microeconomic learning and macroeconomic policies. Forces inducing learning and the expansion of domestic technological capabilities. Innovation, SME and local development. Factors of attractiveness and embeddedness of the MNCs in local/regional/national systems. Privatization of knowledge, Intellectual Property Right (IPR) and development. International cooperation and national innovation policies to face global challenges (poverty, diseases, natural disasters).
Seville, Spain, 16-17 October, 2008
Following the success of 2004 and 2006 events, the International Seville Conference on Future-Oriented Technology Analysis (FTA) has become a major occasion for FTA experts, practitioners and decision-makers to bring their ideas and knowledge together in a highly interactive environment. As with previous FTA events, the 2008 Conference places emphasis on diversity of views by attracting participants from a wide geographical base. Academics, practitioners as well as public and private sector decision makers from Europe, North America, Asia, Latin America, Africa and Australasia are invited to broaden the network and to increase understanding of advances in the field of FTA.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.