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
GOVERNOR SCHWARZENEGGER HIGHLIGHTS CALIFORNIA-CANADA PARTNERSHIP ON LIFE-SAVING STEM CELL RESEARCH
California Governor Arnold Schwarzenegger, along with Canada’s Premier of Ontario Dalton McGuinty, together highlighted the depth of collaboration between Californian and Canadian stem cell research scientists. During a press conference at MaRS Discovery District, Governor Arnold Schwarzenegger recently announced collaboration between UC Berkeley’s Stem Cell Center and Canada’s International Regulome Consortium to coordinate research and take advantage of each institution’s expertise. Premier Dalton McGuinty announced the creation of the Cancer Stem Cell Consortium, which will coordinate and fund cancer stem cell research of both Canada and California researchers, universities and private industry. In addition, the Ontario Institute of Cancer Research (OICR) will donate the first $30 million (Canadian) to fund the Consortium, benefiting both Canadian and Californian researchers.
McGuinty Government Invests In Skilled Trades Training, Apprenticeships
The province will invest $15.4 million in a major expansion to skilled trades training classroom space at Niagara College’s Welland campus. The college will soon be able to welcome 730 more students and apprentices. The expansion will cost $18.3 million, and create more than 180 construction jobs. Many high-growth industries face shortages of people with the right skills. The government’s three-year, $1.5-billion Skills to Jobs Action Plan is aimed at closing that gap. Niagara College will train more welders, carpenters, electricians and other tradespeople in the skills employers are looking for.
IBM WILL INVEST $1.5-BILLION TO EXPAND OPERATIONS
Governor David A. Paterson recently announced significant new investments by IBM and New York State, accelerating New York State’s international leadership in nanotechnology research and development and creating up to 1,000 new high-tech jobs Upstate. The State will provide a total of $140 million in economic development grants, leveraging more than a ten-to-one private investment of $1.5 billion from IBM. The investment will go toward three separate and complementary components of a comprehensive project, supporting the nanotechnology chip computer activities of IBM: the expansion of IBM’s operations at the College of Nanoscale Science and Engineering at the University at Albany (Albany NanoTech), the creation of a new, advanced semiconductor packaging research and development center at a to-be-determined in Upstate New York, and the upgrading of IBM’s East Fishkill facility in Dutchess County.
Editor's Pick
From Entrepreneur to Titan: Can Canadian Entrepreneurs Grow Start-ups into Domestic Multinationals
Seventh Annual Research Money Conference Proceedings
These proceedings of the Seventh Annual Re$earch Money Conference, co-sponsored with the Information Technology Association of Canada and held in Toronto on May 21, 2008, featured speakers and panels that explored a wide range of challenges faced by Canadian companies in scaling up to globally competitive levels. Speakers and panelists raised concerns over the lack of Canadian high technology companies with a global presence; the negative impact which this has on the development of markets for high technology products, leadership skills, role models and mentoring: the problems of recruiting experienced and capable management to Canadian companies and the challenge of retaining domestic graduates in Canada; the negative impact that recent changes in government policy have had on these challenges; and the recommendations of these experienced Canadian high tech entrepreneurs for what measures are urgently needed to remedy the situation.
Innovation Policy
OECD
The key strategic task ahead for the Norwegian government is to maintain high, sustainable growth even after the depletion of oil and gas reserves. Any foreseeable restructuring of the Norwegian economy compatible with this goal will entail a shift towards knowledge-based activities for which innovation is the key determinant of competitiveness. This report assesses the current status of Norway’s innovation system and policies, and identifies where and how the government should focus its efforts to improve the country’s innovation capabilities.
Where do Innovations Come From? Transformations in the US National Innovation System, 1970-2006
Fred Block and Matthew R Keller, ITIF
This report finds that the nature of the U.S. innovation system has changed dramatically over the course of the last 40 years. While in the 1970s almost all winners came from corporations acting on their own, more recently over two-thirds of the winning innovations have come from partnerships involving business and government, including federal labs and federally-funded university research. Moreover, in 2006, 77 of the 88 U.S. entities that produced award-winning innovations were beneficiaries of federal funding. These findings suggest that to succeed in the future, U.S. innovation policy must support and reinforce the national advantage in collaboration. Thus, funding for the U.S. government’s technology initiatives should be expanded and made more secure, and the coordination of these technology initiatives across the federal government, particularly those that support partnerships between fir.ms, universities, and federal laboratories, must be improved
Cities, Clusters & Regions
History Matters: Path-dependence and Innovation in British City-Regions
James Simmie, Juliet Carpenter, Andrew Chadwick and Ron Martin, NESTA
Innovation is a hot topic in economic development circles around the world. Buoyed by the success of Silicon Valley, Hsinchu region, or Helsinki, innovation is seen by leading regions as the key to staying ahead; in those that lag, as an opportunity to catch up. The result has been a plethora of ambitious innovation strategies. Unfortunately, the common thread has often been under-delivery. This failure to deliver has been blamed on many things: lack of institutions, lack of ambition, and lack of skilled policymakers. However, what has been less straightforward to understand is the extent to which such change was ever possible. This research project partners with leading researchers from Oxford Brookes and Cambridge Universities to use advanced economic techniques to uncover the extent to which ‘history matters’.
Human Capital and Economic Activity in Urban America
Jaison Abel and Todd Gabe
This paper explores the relationship between various measures of human capital and the economic activity within a metro region. This work contributes to the discussion of why public policy intervention for ameliorating a region’s education and knowledge base makes sense, especially in the intention of increasing per capita wealth. The authors examine not only how the amount of education, but also how the strength of certain knowledge-based skill sets impacts the level of economic activity within a metro area. After aligning knowledge skills with certain types of occupations, they find metros with collections of information technology employees, and “producer services” employees – those involved with management, accounting, law and government – are the top drivers of GDP per capita. Additionally, the authors examine the impact of the relative size of certain occupation groups. They find, keeping all else equal, increasing the size of a metro’s executive and management positions by one standard deviation from the mean increases GDP per capita by 10.4 percent. However, increasing the size of a metro’s educator, librarian, and writer positions by one standard deviation is associated with a 12.5 percent decline in GDP per capita.
Statistics & Indicators
US Competitiveness in Science and Technology
RAND
Many new studies of America’s competitiveness seem to be resoundingly negative and warn of rising competitors. A new RAND study provides some basis for optimism. U.S. Competitiveness in Science and Technology finds that the US continues to lead the world in science and technology and faces no imminent danger of losing its edge. On a host of measures, such as R&D spending and patents, the US economy is keeping pace with its past performance and with the performance of other major global players. The report recommends that policymakers build on existing strengths through better monitoring of economic performance, and improving openness to high-skilled immigrants and to technology developments from other parts of the globe.
Policy Digest
How Can Cities Thrive in a Changing Economy?
Alexandra Jones, et al., Ideopolis
This report builds on the findings of previous projects to argue that the current economic climate makes it even more important that cities remain at the forefront of government policy at a national, regional and sub regional level. At the start of an economic slowdown it is vital that policymakers and practitioners can begin to answer the following questions: What has the impact of the changing economy been on cities over the past ten years? What are the lessons from experience about the drivers of success for cities, and why do some cities continue to struggle? What are the opportunities for cities to continue growing in a changing economic climate, and how can cities take advantage of these? This report provides evidence from research and bespoke projects with cities in order to help provide policymakers and practitioners with some answers to these questions.
The following trends, also familiar in the Canadian context, have been observed in British cities:
The last ten years of economic growth in the UK is a story of the knowledge economy; and one which has played out in cities. The expansion of knowledge intensive industries, from financial services and professional services to high tech manufacturing, has made cities more important to the UK economy. Certain cities have provided industries with access to skilled workers, affluent consumers, the chance to exchange ideas and a thriving cultural offer: all particularly important for industries that rely on innovation and knowledge for comparative advantage. With every new job in other industries being matched by 12 new jobs in knowledge
intensive industries between 1995 and 2005, it is little wonder that the cities that can attract these industries have boomed.
Yet the story is different for different cities. For some UK cities it is a tale of ongoing transformation and success. London rivals New York in financial markets; Bristol remains the UK’s most productive large city; Manchester and Leeds are becoming vibrant and productive centres of the North of England. These cities have invested significantly in their physical transformation, and seen growth in employment, productivity and skill levels. For other cities the narrative is one of slowly striving to achieve economic success. In cities like Hull, Hastings and Stoke-on-Trent, economic change has been slow. The growth of knowledge intensive industries has not reached these cities but the decline of manufacturing and traditional industries has. There has been slow growth in knowledge intensive industries in these cities, but significant decline in manufacturing and traditional industries.
Cities will continue to be the engines of the UK economy, especially for knowledge based services. However, UK cities have a very high – perhaps too high – level of specialization in financial services. This rings alarm bells for the future of cities in a financial services-led recession. For cities such as London, Leeds and Manchester, which have a more diverse economic base, a reduction in highly skilled roles may be challenging in the short term but these highly skilled workers tend to be flexible and able to seek employment in other industries. For cities that have specialized even more heavily, or are reliant on employment in intermediate
level financial services jobs such as call centres, there are greater dangers that financial cut-backs may impact on productivity and employment levels significantly without there being alternative industries for those workers to move into.
Cities should seek to have ‘diverse specialisms’ in knowledge intensive industries, rather than rely too heavily on one area. Cities should use the economic assessment recommended in the Sub National Review to realistically assess their current strengths and weaknesses, the quality of the jobs that different industries offer, and seek to enable growth in more than one area of the economy. The weaker pound may also create opportunities in manufacturing, where this is building on strengths in knowledge intensive roles
Too few cities are making the most of their public sector knowledge intensive institutions and workers and these industries will matter more during an economic slowdown. The ‘knowledge economies’ of cities such as York, Oxford and Cambridge are dominated by public sector knowledge intensive employment and they are highly productive. Yet the ‘knowledge economies’ of cities such as Liverpool, Blackburn and Plymouth are also dominated by public sector jobs, and they are not very productive. The experience of the last ten years shows that Sheffield and Newcastle have built on their universities and healthcare to grow their productivity in recent years. During the credit crunch, both thriving and struggling cities should do more to work with their education and healthcare institutions in order to enable economic growth.
Whilst most cities have ‘professionalized’ their labour markets, coastal towns in particular – with the exception of Brighton – have lagged behind. Those cities that have not professionalized in the last ten years are likely to find the credit crunch particularly hard. This is because businesses may focus on the places where there is the highest supply of skilled labour. Cities with fewer highly skilled jobs are also less adaptable and hence more vulnerable to economic change. City leaders need to understand how their skills profile compares to other cities and develop strategies at the level of the functional economy to respond.
Physical regeneration is likely to suffer most in the context of the credit crunch. City centre regeneration, housing and transport investment are all likely to slow, particularly in the cities that need it most but may represent the least attractive offer for developers in the current climate. There is a real risk that spatial polarisation will increase. Within cities, policymakers should work with the private sector to identify what developments can proceed, and national policymakers should consider innovative methods of enabling cities to fund infrastructure investments. Public transport is vital for environmental, inclusion and economic reasons.
In a changing economic climate, clear strategy, strong leadership and the ability to spot the opportunities and challenges ahead is vital for cities, whether they have boomed or struggled during the urban renaissance. Successful leadership is about cross-sector partnerships built around a clear vision of the future of the city. Issues of accountability, funding and power are all vital to make this
happen. Cross-sector partnerships are also particularly important for issues such as skills, transport, housing and worklessness. They need to have a clear purpose, however, and to be regularly evaluated.
City leadership requires more devolution to cities and a clearer governance structure. Roles and responsibilities of different bodies needs to be clearer and delivery should be devolved to the lowest level possible. The mayoral model should be reconsidered, not as a panacea but as an important way to create accountability and devolve more powers and funding.
Urban policies should focus on the following key issues:
- More power and funding needs to be devolved to cities, with clear accountability structures introduced and greater clarity about governance;
- The UK’s major cities need to diversify their areas of specialisation and consider how to build on public sector strengths where this is their main asset, learning from York, Oxford and Cambridge;
- Cities need to link regeneration to economic strategies and invest in skills based on a clear understanding of how professionalized their labour market is;
- Policymakers need to work closely with the private sector to identify how to fund much-needed infrastructure and a mix of housing in the context of the credit crunch.
Events
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
International Benchmarking Forum 2008
Basel, Switzerland, 3-8 September, 2008
What makes a city region attractive for business and people? Which economic policy areas have what impact on regional attractiveness? How do city regions explain their own attractiveness? These questions are the focus of this year’s International Benchmarking Forum – the annual highlight of BAK Basel Economics’ International Benchmarking Programme (IBP) . Regional Attractiveness is the main topic of the 2008 conference: Each of the issues Migration and Population, Urban Renewal through Conversion, Quality of Life and High End Innovation will be introduced by a BAK economist presenting an input. Representatives from the benchmark cities Madrid (subtopic: Migration and Population), Berlin (Quality of Life), Manchester (Urban Renewal through Conversion) and Singapore (High End Innovation) have been invited to present policy measures and experiences in their respective fields.
Building High Performance Regions: Cluster Facilitator Training
Saskatchewan, 17-19 and 23-25 September, 2008
Active cluster development requires hands-on facilitation, ideally from trained facilitators within the locality. In response to this need, Cluster Navigators has developed an interactive cluster training workshop to introduce the process of
cluster development and equip facilitators with the necessary skills. These training workshops have been presented worldwide in 30 countries and are based on a systematic Five Phase, Twelve Step process. The three-day program provides an opportunity to take a number of local clusters through the development process. Clusters are selected from those that course participants are familiar with, and provide an opportunity to ‘learn by doing’.
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.
Cluster Policy in European Regions
Berlin, Germany, 22-24 September, 2008
This international conference provides the participants with information on current development of European cluster initiatives and efficient cluster management policies. International experts will demonstrate a wide range of solutions for national and regional authorities in thought-provoking presentations and workshops.
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).
5th Annual Conference of The Technopolicy Network: Implementing Regional Innovation Strategies 
Halifax, Nova Scotia, 25-26 September, 2008
The fifth annual conference of the Technopolicy Network will focus on the development and implementation of various regional strategies across the world. Over the course of two days, several international speakers will give insight and address topics including why a regional innovation strategy is essential, what kinds of strategies have been developed, and how to organise the different elements of a successful region. The opportunity to exchange experiences through connecting questions and answers from participants in a network auction will also be provided.
St. John’s, Newfoundland and Labrador, 16-18 October, 2008
The Leslie Harris Centre of Regional Policy and Development, Memorial University of Newfoundland is hosting an International Conference, with over 90 submissions received with themes ranging from:How to identify opportunities and challenges to knowledge sharing; How to work with the media in connecting research to the community; How to translate knowledge to influence policy and decision-making; How communities and non-governmental organizations can “reach in” to influence research and knowledge generation; How outreach centres can evaluate and maximize their impact; How institutions in other countries are doing it, from Iceland and Ireland, to the U.S. and the Philippines; How Canada’s research funding councils are developing knowledge transfer and knowledge mobilization strategies.
Regional Comparative Advantage and Knowledge-Based Entrepreneurship
Amsterdam, Netherlands, 9-10 October, 2008
The organizers invite submissions for empirical and theoretical papers on the financing of knowledge-based entrepreneurial firms, on the influence of venture capital on firms’ ability to translate technological advances into successful products, and on the contribution of knowledge-based entrepreneurship to regional dynamics.
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.
The 5th International Conference on Innovation and Management (ICIM2008)
Maastricht, Netherlands, 10-11 December, 2008
Organized by UNU-MERIT (The Netherlands) and supported by Wuhan University of Technology (China) and Yamaguchi University (Japan), This conference will bring together academics, practitioners and other professionals involved in the filed of innovation and management. The conference format includes plenary and parallel sessions with both academic and practitioner presentations and workshops. In addition, the conference will provide networking opportunities together with a taste of local culture.
Understanding and Shaping Regions: Spatial, Social and Economic Futures
Leuven, Belgium, 6-8 April, 2008
Many topics will be discussed such as regional policy and evaluation, regions as innovative hubs, economic restructuring and regional transformation, and local and regional economic development. Abstract submission deadline: Sunday, 4th January 2009.
Glasgow, Scotland, 17-19 June, 2008
Triple Helix VII offers a multi-disciplinary forum for experts from universities, industry and government. The Conference is designed to attract leading authorities from across the world who will share their knowledge and experience, drawing a link between research, policy, and practice in sustainable development. The Conference will bring together policy-makers, academics, researchers, postgraduate students, and key representatives from business and industry. The theme for Triple Helix VII – “The role of Triple Helix in the Global Agenda of Innovation, Competitiveness and Sustainability” – reflects the interaction between academia, the private and the public sector.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.