Andrew ReifBUS 885 Research Project24 April 2010ALBERTA’S INNOVATION SYSTEM
OVERVIEW Innovation Returns Alberta Innovates Innovation Systems Activities & Actors Framing MetaphorsMotivation: EcosystemsPerception in Alberta that see Barriersbig R&D investments with littlein the way of economic results. Research & Findings
RESEARCH AT ALBERTA UNIVERSITIES Canada leads OECD in R&D performed at universities ARC ~$100M pa IRAP ~$6M pa $5.1B+ Invested
INNOVATION INVESTMENT RETURN .....creating a Knowledge Based Economy of the futureand diversifying the Alberta Economy (Advanced Technology Industries)
RETURNS – ADVANCED TECHNOLOGY INDUSTRIES ‘Late in the game’ ICT $10.6B Revenues 4,500 Firms ‘Rounding Error on GDP’ 60,000 Employees Bioindustry <10 Spinoffs Per Year $850M Revenues 120 Firms University Royalties 4,000 Employees $6.5M in 2007 Nanotechnology Pre-revenue No $1B Tech Firm 40 Firms
ALBERTA INNOVATES 10 Former Agencies Integrated in 5 Energy & Environmental Solutions Bio Solutions Health Solutions Technology Futures Alberta Research & Innovation Authority Effective 1 Jan 2010
ACTIVITIES ACTORS Economic Strategy Governments & Agencies Scientific Research Researchers Applied (Industrial) Entrepreneurs Research Tech Transfer Officers Technology Transfer Business Advisors Business Support Financiers / Investors Entrepreneurial Activity Management Industrial Development Industry Associations Government PolicyACTIVITIES & ACTORS.....
FRAMING METAPHORS Knowledge System Models Network Models Knowledge Value Chain Ecosystem Model Knowledge Competitiveness NSERC Network Model Model Geopolitical Models Linear Models National Innovation Systems OECD Model Regional Innovation Systems Commercialization Model Cluster Model Linear Economic Model ‘Creative City’ Model Functional Models Economic Models Firm Model Porter Diamond Model Commercialization Outcomes Industry Value Chain
INNOVATION ECOSYSTEMS Milbergs, E. (2007). Innovation Vital Signs: Framework Report An Update. Center for Accelerating Innovation.
ECOSYSTEM EVOLUTION Milbergs, E. (2007). Innovation Vital Signs: Framework Report An Update. Center for Accelerating Innovation.
URBANIZATION & CREATIVE CLUSTERS Wolfe, D. (2009). 21st Century Cities in Canada: The Geography of Innovation. Ottawa: The Conference Board of Canda.
Why such poor returnforInnovation investmentin Alberta? BARRIERS Literature Review
RESEARCH METHOD Research Question: ‘Why is Alberta’s advanced technology innovation ecosystem not delivering sufficient economic development returns?’ ‘Field Study’ – Key Stakeholders in Alberta’s Innovation System Research Participants: Federal Government Provincial Government Tech Transfer Finance Entrepreneurial Advanced Technology Industry
SIGNIFICANT FINDINGS – INNOVATION SYSTEM Research Investment Imbalance Scientific Heavy Weak Industrial Research 4 Innovation Systems Are New Therefore Immature Prior Lack of Focus Restructuring Storming or Forming Phase 10-15 Years To Evolve Barriers Are Mainly Symptoms Results Follow Vision Moving to ‘Open Innovation’ Milbergs, E. (2007). Innovation Vital Signs: Framework Report An Update. Center for Accelerating Innovation.
SIGNIFICANT FINDINGS - GEOPOLITICAL Unclear Intangible Jurisdictional Advantages Defining Alberta’s Lack of Focus & Vision Jurisdictional How do advanced Advantages technology industries fit in? Geopolitical Fragmentation on Several Levels Division of Power Regional Fragmentation Role of ‘Creative Cities’ ‘Creative’ vs. Resource Base Agglomeration Slow Lack of Alignment to Pinto, H. (2009). The Diversity of Innovation in the European Regional Strengths Union: Mapping Latent Dimensions and Regional Profiles. European Planning Studies , 303-326.
SIGNIFICANT FINDINGS – CONDITIONS FOR INNOVATION Weak Diversification Motivation Weak Need For Advanced Technology Industries & Innovation Competition For Skills & Funds Competing With ‘Run-up’ in oil prices and demand Weak Innovation Incentives Investment Incentives Entrepreneurs Competing With Regions With Very Strong Support Weak Marketing Culture Commodity markets don’t involve selling
IMPLICATIONS Advanced Technology Industries Remain Immature – Alberta Innovates A New Vision Economic Strategy & Canada’s Complex Geopolitical Policy Structure Future Role of Edmonton & Calgary As ‘Creative Cities’ – Impact On Alberta’s Economic Strategy Future of Diversification in Alberta?