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
SBIR to be a Victim of Recovery Myopia?
The proposed American Recovery and Reinvestment Act, released last week by the House Appropriations Committee, would dramatically increase federal funding for research in several agencies required to participate in the Small Business Innovation Research (SBIR) Program. The National Science Foundation alone, for example, would receive an additional $3 billion – equal to 50 percent of its FY08 appropriations. The Department of Energy would get a $2 billion research injection; the National Institutes of Health, a cool $1.5 billion for R&D. The SBIR program requires the research agencies to award 2.5 percent of their extramural R&D funds to small businesses. So it would seem small tech firms fighting for funds in the highly competitive SBIR arena could see a windfall in the coming months as a result of a Recovery Act. However, this is only likely if the the 25-year-old SBIR program itself is extended past its current expiration in March 2009. SBIR Reauthorization during the 110th Congress was contentious and dragged out because of proposed changes to the program. The time remaining in the program’s current authorization does not permit a debate of similar length in the new Congress without another extension.
The Honourable Gary Goodyear, Minister of State (Science and Technology) recently announced the establishment of a new Centre of Excellence for Commercialization and Research (CECR). The Corridor for Advancing Canadian Digital Media (CACDM), Waterloo Region, will link digital media clusters from across the country and enable researchers and entrepreneurs to collaborate on the development of new digital media. Through its partners, the centre will offer research activities for graduate students, and commercialization support and services for industry. The Centres of Excellence for Commercialization and Research bring together partners from the academic, private and public sectors to advance research and facilitate commercialization of technologies, products and services. The Minister of State announced that the CACDM will receive $10.7 million over five years.
$206 million for Economic Development in Southern Ontario
Canada’s 2009 budget takes a proactive approach to tackling Canada’s recession. The finance minister envisions a $34 billion deficit this year, followed by forecasted deficits until 2013, with the plan of spending $40 billion over the next two years to stimulate Canada’s economy. The hope is that Canada will bounce back by 2010. This year’s budget includes $206 million in funding for new regional economic development in southern Ontario with the total funding rising to $1 billion over five years. In addition the announcement speaks to infrastructure programs to the tune of $12 billion over the next two years, $200 billion to the financial markets to improve access to credit, $8.3 billion for job retraining and $7.5 billion for sectors and regions especially hard hit by the global slowdown such as the auto sector.
Editor's Pick
AAAS Report XXXIII: Research and Development FY 2009
AAAS
Recently, the House Appropriations Committee released its draft text of the American Recovery and Reinvestment Bill of 2009, the $550 billion spending portion of an $825 billion economic stimulus package to deal with the current economic crisis. The draft bill will be debated, amended, and revised by the House and the Senate, with hopes of getting a final version of the bill to President Obama’s desk by the middle of February. The AAAS analysis of the potential impacts of the draft stimulus appropriations bill on federal R&D funding is available and will be updated continually on the AAAS R&D web site.
Innovation Policy
Growth Policy in a Small, Open Economy: Domestic Innovation and Learning from Abroad
Brita Bye, Taran Fæhn, and Leo A. Grünfeld
Research and development (R&D) play a pivotal role for innovation and productivity growth, and knowledge spillovers can make the case for public support to private R&D. In small and open economies, absorption of foreign knowledge through exports and imports can be even more decisive for economic growth than domestic innovation. This macro economic analysis investigates how policies should be formed in order to reap the largest productivity effects, when both these sources of growth interplay. In particular, the firms’ capacity to absorb knowledge from abroad depends on domestic R&D, and this reinforces the efficiency arguments for stimulating R&D. The paper finds that from a welfare perspective, export promotion of R&D-based technologies proves slightly more efficient than R&D support.
Why Venture Capital is Essential for the Canadian Economy
Canada’s Venture Capital and Private Equity Association
This study measures and explains the economic impact of venture capital on the Canadian economy. As such, it seeks to dispel some of the uncertainties surrounding the perception of the venture capital industry and contribute to the public policy debate about how Canada can enhance its competitiveness in the 21st century.
Understanding the Private Sector’s Role in Promoting a Science and Innovation Culture
Impact Group
In November 2006, the Minister of Industry asked the National Science Advisor (NSA) to consider how to promote a strong culture of science, technology and innovation in Canada. The NSA conducted some consultations with stakeholders across Canada and internationally and it became clear that the role of the private sector in promoting science among youth and the general public is a critical issue. In addition, more recent research indicated that the our graduation rates in scientific and technical fields are below the OECD average. Most recently, the federal government’s S&T Strategy, Mobilizing S&T to Canada’s Advantage released May 2007, highlights the importance of growing Canada’s base of knowledge workers to ensure Canada’s future prosperity and competitiveness. This report explores the existing and potential private sector roles in promoting a science and innovation culture.
Fostering Entrepreneurship for Innovation
Axel Mittelstädt and Fabienne Cerri, OECD
Entrepreneurship and firm creation have long been recognised as a vital force driving innovation. With globalization and the co-incident shift towards a knowledge-based economy, the link between entrepreneurship policy and innovation has received renewed attention. By underpinning firm creation and firm expansion entrepreneurship policies strengthen innovation, increasing productivity in the enterprise sector. In return, policies fostering innovation will tend to spur firm creation as the results of R&D are commercialized. Many countries have taken initiatives since early 2000 to test the potential of entrepreneurship and SME policies, articulating these with an innovation-oriented policy approach. This report consists of a synthesis report based on four country case studies on the role of entrepreneurship policies in supporting innovation in Korea, Mexico, Norway and Turkey. These country case studies are appended to the synthesis report.
Cities, Clusters & Regions
North Carolina Board of Science and Technology, NCBST
This report is a call to action. Specifically, it defines the innovation challenge facing North Carolina, assesses the state ’s innovation performance. It recommends an innovation framework that leverages the state’s unique strengths while addressing its specific challenges. North Carolina has the intellectual capital and facilities to foster research and innovation. However, to accelerate the progression and transformation of innovative ideas into economic development and prosperity, the state must establish an institutional and policy framework that maximizes the potential of its assets.
Embedding Universities in Knowledge Cities
Laura Williams, Natalie Turner and Alexandra Jones, Ideopolis
Universities are seen as vital in a more knowledge intensive economy both as creators and consumers of knowledge. As creators of knowledge, universities make a significant contribution to the ‘intangible assets’ – knowledge, skills and innovation – that have become the source of comparative advantage for thriving businesses across all sectors in the economy. Universities also consume knowledge through demanding highly skilled workers as part of the education sector, which joins high and medium tech manufacturing, high tech services (communications, computer services and R&D), financial services, business services and health services in the OECD definition of knowledge intensive industries. Education provides nearly a quarter (24 per cent) of all employment in ‘knowledge intensive industries’ and jobs in education increased by 46 per cent between 1985 and 20051. As institutions primarily based in cities, these assets mean that universities make a significant contribution to the ideas, ‘buzz’, creativity and highly skilled jobs in places as diverse as Oxford, Manchester, Southampton and Bradford. As a result the city-university relationship is seen as pivotal to helping places across the UK adapt to changes in the wider economy, increase the proportion of knowledge intensive jobs and workers, and deliver beneficial outcomes for communities. Yet the growing emphasis on the vital role of universities in helping cities adapt to, and thrive in, the changing economy not only creates new challenges and opportunities for both parties. It also raises growing questions about how universities and cities can best work together to secure economic, social and intellectual benefits. This research report, based on a literature review, interviews, and case studies of Birmingham, Brighton, Leeds and Norwich, aimed to investigate these questions about how relationships between different cities and different institutions are working at the moment, and where there are opportunities for both to gain from partnership working.
Statistics & Indicators
Zoltan J. Acs, Sameeksha Desai, and Leora F. Klapper, World Bank
This paper compares two datasets designed to measure entrepreneurship. The Global Entrepreneurship Monitor dataset captures early-stage entrepreneurial activity; the World Bank Group Entrepreneurship Survey dataset captures formal business registration. There are a number of important differences when the data are compared. First, GEM data tend to report significantly greater levels of early-stage entrepreneurship in developing economies than do the World Bank data. The World Bank data tend to be greater than GEM data for developed countries. Second, the magnitude of the difference between the datasets across countries is related to the local institutional and environmental conditions for entrepreneurs, after controlling for levels of economic development. A possible explanation for this is that the World Bank data measure rates of entry in the formal economy, whereas GEM data are reflective of entrepreneurial intent and capture informality of entrepreneurship. This is particularly true for developing countries. Therefore, this discrepancy can be interpreted as the spread between individuals who could potentially operate businesses in the formal sector – and those that actually do so: In other words, GEM data may represent the potential supply of entrepreneurs, whereas the World Bank data may represent the actual rate of entrepreneurship. The findings suggest that entrepreneurs in developed countries have greater ease and incentives to incorporate, both for the benefits of greater access to formal financing and labour contracts, as well as for tax and other purposes not directly related to business activities.
Global Innovation Index 2008-2009
INSEAD
This report presents the latest findings and highlights the best policies and practices for promoting innovation readiness. The GII 2008/2009 final rankings show that this time also the global leader in innovation continues to be the US. Germany follows in second position, maintaining its position from last year. Sweden rises to 3rd rank this year from 12th in 2007. Canada ranks 11th.
Policy Digest
Clusters: Balancing Evolutionary and Constructive Forces
The Cluster Initiative, TCI
In 2003, the Cluster Initiative Greenbook was launched at the TCI conference in Gothenburg, presenting data and analysis on hundreds of cluster initiatives from around the world. The “Greenbook” pointed to the fact that these constructive forces must be put into the context of underlying cluster strengths and local institutional factors. A follow-up book on cluster initiatives in developing and transition countries – the “Bluebook” – was launched in 2006. The new “Redbook” builds a new model involving both evolutionary and constructive forces. Cluster policies and programs are now emerging in all corners of the world, at international, national and regional levels, bringing more resources and legitimacy to cluster construction. If such political initiatives are to succeed they must be based on sound data-driven analysis, underlying cluster strength and cluster programs must be carefully evaluated to improve our knowledge of how they affect the complex nature of clusters, and how the constructive work can be improved.
Cluster Evaluation and Complexity
Cluster evaluation is an important part of the policy process. It is important to follow up cluster programs and initiatives in
order to see if intended effects are really materializing, and also to learn from the initiative so that actions can be taken to improve the instrument and the way it is carried through.
To evaluate clusters and cluster programs is a complex proposition. It is not just a limited investment project in one organization that is evaluated, but:
A set of objectives being implemented at the same time (HR upgrading, cluster expansion, business development, commercial collaboration, R&D and innovation and business environment upgrading), carrying out a range of activities (contact brokerage, events, marketing, lobbying, monitoring and reporting), impacting a system of many linked actors, in direct and indirect ways that take decades to bear fruit.
Furthermore, some clusters are affected by several policy instruments in parallel, including regional policies, science and innovation policies and so on, and thus it is difficult to separate out the effects from a particular cluster instrument.
Evaluation Methods
There is often an inverse relationship between the importance of a certain type of data and its availability. Thus, proper evaluation can be associated with considerable cost. Evaluation of clusters (not the program or initiative) involves a multitude of data. Some examples include:
• Enhanced innovation (new product launches, private R&D)
• Increased research activity (patents, publications, etc.)
• New firm formation (incubator results)
• Job creation
• Sales growth
• Productivity growth
• Investments
• Strengthened cluster dynamics (membership, network meetings, communications)
• Attraction of new resources (inward FDI, skilled personnel)
Choices regarding data, metrics and research methods are central to the evaluation process. The report continues by presenting two different cases of cluster evaluation employing different methods and conducted at different scales: Scottish Enterpries and Uppsala Bio.
Events
ROGER MARTIN AND RICHARD FLORIDA TO RELEASE REPORT ON ONTARIO 
Toronto, 5 February, 2009
In the 2008 Ontario budget, the Ontario Government asked Roger Martin, Dean of the Joseph L. Rotman School of Management at the University of Toronto and Richard Florida, Director of the Rotman School’s Martin Prosperity Institute to “undertake a study of the changing composition of Ontario’s economy and workforce, examine historical changes and projected future trends affecting Ontario, and provide recommendations to the Province for ensuring that Ontario’s economy and people remain globally competitive and prosperous.” The report of their findings and recommendations, to be released on February 5 is an important element of Ontario’s economic strategy. Following its release, the authors hope to engage Ontarians in an ongoing dialogue about achieving advantage for Ontario in the creative age
3rd Conference on Urban Clusters
Barcelona, Spain, 12 February, 2009
Many topics will be discussed such as creative cities and local economic development, European cluster policies, the cluster experience in China, building clusters in Latin America, and clusters development in a crisis environment.
Toronto, 3-4 March, 2009
Canadian Innovation Exchange (CIX) is a two-day event showcasing Canada’s hottest new and innovative technology companies. A nexus of multiple meeting and networking opportunities, CIX is designed to enable the who’s who of North American investors to discover Canada’s next great companies. With facilitated and informal networking events, this innovation marketplace features Flash-forward presentations on the future of media, software, mobile and technology.
Re$earch Money – Going Global: Expanding the International Footprint of Canadian Technology Firms
Ottawa, 12 March, 2009
As Canada’s domestic market is too small to support significant growth of more than a few companies in any given sector, to succeed, our companies must sell to the world. The Eighth Annual RE$EARCH MONEY Conference, /Going Global: Expanding the International Footprint of Canadian Technology Firms/ will explore how best to help Canadian technology firms expand into other countries to grow their business. The day begins with a keynote from David Martin, Executive Chairman & Co-Founder, SMART Technologies, a Canadian company with offices in over 20 countries. Alan Barrell, now Entrepreneur-in-Residence at Cambridge University, will share insights gleaned from moving two U.K. firms into the international marketplace. Andrea Mandel-Campbell, author of the provocative /Why Mexicans Don’t Drink Molson/ will be the luncheon speaker. Panels of experts from the private and public sectors will share best practices from around the world.
Understanding and Shaping Regions: Spatial, Social and Economic Futures
Leuven, Belgium, 6-8 April, 2009
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.
Creative Industries, Scenes, Cities, Places: Idiosyncratic Dimensions of the Cultural Economy
Cardiff, UK, 22-23 April, 2008
This seminar will focus on the relationship between places (cities, neighbourhoods, and quarters) and the development of creative industries. The range of papers should cover both theoretical perspectives and practical examples of the issues and challenges faced by researchers in trying to capture the economic, social and cultural dimensions of the creative economy. The conference will focus on four themes and questions: How to study the relationship between creative industries and city-regions. What are the methodologies which address the way creative industries produce and interact with their markets? What is the role of place at various levels (city, neighbourhood, regions) in fostering creativity and creative production? What is the importance of public support policies and frameworks in developing the creative industries sector? Does fostering creative industries mean enabling regional growth?
Community Engagement and Service: The Third Mission of Universities
Vancouver, BC, 18-20 May, 2009
The conference will showcase research and practice of what in North America is called ‘service to the community’. Although newly discovered by some universities, service to the community has long traditions in others, and in many cases is recognized as an explicit mandate in the university charter. Service is understood to be the Third Mission alongside teaching and research. Service and community engagement take many different forms. Examples are community based research and learning, assistance in regional development, continuing and community engagement, technology transfer and commercialization, and other forms of knowledge sharing and linkages.
Photonics North 2009: Closing the Gap Between Theory, Development, and Application
Quebec City, 24-27 May, 2009
This conference is an international event dedicated on the latest accomplishments, future directions and innovations exclusive to optics/ photonics technologies. Presentations will explore advances in Science and technology that will impact the use of photonics in the 21st century. Photonics North will provide you with the knowledge and competitive intelligence you need to keep up in the industry that changes and evolves at break-neck speed.
Madrid, Spain, 4-6 June, 2009
The European Urban Research Association (EURA) and the Urban Affairs Association (UAA) hold their second Joint Conference on City Futures in 2009. By building on the success of the first such conference, held in Chicago in 2004, the conference aims to focus sharply on international exchange. Urban scholars on both sides of the Atlantic have created a five-track structure for this forward-looking conference: Climate change, resource use and urban adaptation; Knowledge and technology in urban development; Community development, migration and integration in urban areas; Urban governance and city planning in an international era; Architecture and the design of the public realm
Glasgow, Scotland, 17-19 June, 2009
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.
TEKPOL: 3rd International Conference on Innovation, Technology and Knowledge Economics
Ankara, Turkey, 24-26 June, 2009
The main objective of this workshop is to bring together researchers and policy makers from new member states and candidate counties in order to discuss the following topics: links between innovation, R&D and economic performance; innovation and technology diffusion; knowledge management and learning in organizations; systemic nature of innovation (national, sectoral and local); science, technology and innovation policies; issues concerning developing countries and technological change; economic impact of new technologies.
Atlanta Conference on Science and Innovation Policy 2009
Atlanta, 2-3 Oct, 2009
Governments seek new strategies and are turning to the science, technology, and innovation policy research community for models and research results to tell them what works, what doesn’t, and under what circumstances. Test models of innovation. Explore emerging STI policy issues. Share research results. Call for papers to be posted shortly.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.