Perimeter Institute: Innovation Nation - Tom Jenkins Sept 2011 Presentation

Innovation Nation Agenda
Motivation
Reports on this topic
Major insights of these Reports
What to do about this

Management Lesson
A crow was sitting on a tree, doing nothing all day. A small rabbit saw the crow, and asked him, "Can I also sit like you and do nothing all day long?
The crow answered: "Sure, why not. So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Management Lesson:
To be sitting and doing nothing, you must be sitting very, very high up.

Poor Relative Productivity Performance

Impact on Standard of Living

“ A good hockey player plays where the puck is. A great hockey players plays where the puck is going to be" - The Great One
Innovation is the main driver of the economy

CCA Innovation Architecture

Competition: The Elephant in the Room

Innovation Related Reports

Foundation Principle Competition Innovation Productivity

Major insights of these reports

Global Value Chains: B ombardier Source: Industry Canada These value chains have changed the basis of competition in the world

The Rise of BRIC as % of World GDP

Canadian Exports By Destination BRIC was only 3% of total

Canadian Based Global Leaders
From 1985 to 2011, Canada has gone from 15 to 42 corporations which are considered global leaders.
Less than 10% of these global leaders are from sectors with protection regimes.

Sectoral Regimes
Transport
Uranium
Telecommunications
Broadcast
Financial Services
Culture

Sectoral Regimes Background
30 year old legislation
Major policy concern at the time was entry into NAFTA
Less than 10% of the North American market is Canadian
Control of national sovereignty an understandable concern
Selected sectors were (and are) integral to the infrastructure to Canada

The World has Changed Dramatically
Internet
Mobile
Global Value Chains

Sectoral Restrictions: Telecom Cellular Mobile Penetration Rates, 2005

Sectoral Regimes Issues
The Sector Regimes were created prior to the Internet
30 years ago, policy interventions were surgical as sectors were not tightly integrated
Today, the Internet now links many of the infrastructure sectors to the entire economy as well as the global economy
Poor productivity in an enabling sector may be leading to poor productivity in other sectors

Logic Flow Competition Innovation Productivity sub-optimal sub-optimal sub-optimal leads to leads to

Canadian Firms Enjoy Higher Profits some may have flexibility to set prices to meet profit goals

Currency - A complicating factor
A very simple view of the Canadian economy is that it has two segments identified with different regions:
“ The West” – Commodity based
“ The East” – Manufacturing & Services
Innovation has an impact for both regions but some of the natural economic feedback mechanisms between national economies can vary by segment of the economy
While Currency can be a “productivity safety valve” by having the currency decline thereby making relative productivity higher.
In the case of a “petro dollar” the currency is instead driven by commodity demand and cannot serve as a safety valve.

Review Sectoral Regimes
Transport
Uranium
Telecommunications
Broadcast
Financial Services
Culture

A Balanced Model for Innovation

Maintain a sustained focus on competitiveness.
broad mandate: publish research and be a public advocate for competition in the public and private sectors ;
independent of government: small staff and a Board of Directors with a majority of members from outside government.
The Council is arguably the most important recommendation to spur innovation in Canada.
For more information visit the Competition Policy Review Panel website: www.competitionreview.ca
Competitiveness Council

Conclusion

The Innovation Policy Challenge: Getting the Balance Right Slide Society Aspirations Economic Reality Global Competition National Control

Having suboptimal productivity performance at this critical juncture in history is unwise
It would not be wise to miss the Information Revolution – any part of it!
Buggy whips are not an option for the future.
We Are at a Key Moment in Global Economic History

“ Capitalism is taking us toward a future of accelerating change. The first twenty years of the twentieth century saw as much technological progress as the entire nineteenth century. Currently, industrial societies appear to be doubling their rate of technological progress every ten years. If this continues, and there is every reason to suppose that it will, the twenty-first century will experience the equivalent of twenty thousand years of ‘ normal ’ human progress.”*
*Walter Read in Compete to Win : Canada Global Competition Review Panel
Innovation is Driving the Transformation of the Global Economy Right Now

Closing Thought
Our competitiveness as a country and as a society will depend on our ability to make strategic policy decisions. Think Argentina and Canada over the past 100 years. It matters.
To remain competitive and maintain our particular concept of society we must strike a balance between the open market and sector regimes.
We cannot expect to have it both ways. We must have a comprehensive debate in Canada about this.

Thank You Visit Tom Jenkins’ Blog: Content Shift

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Perimeter Institute: Innovation Nation - Tom Jenkins Sept 2011 Presentation

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Perimeter Institute: Innovation Nation - Tom Jenkins Sept 2011 Presentation Presentation Transcript