1. Andrew Reif
BUS 885 Research Project
24 April 2010
ALBERTA’S INNOVATION SYSTEM

2. OVERVIEW
 Innovation Returns
 Alberta Innovates
 Innovation Systems
 Activities & Actors
 Framing Metaphors
Motivation:  Ecosystems
Perception in Alberta that see  Barriers
big R&D investments with little
in the way of economic results.
 Research & Findings

3. RESEARCH AT ALBERTA UNIVERSITIES
Canada leads OECD in R&D
performed at universities
ARC ~$100M pa
IRAP ~$6M pa
$5.1B+ Invested

4. INNOVATION INVESTMENT RETURN
.....creating a Knowledge Based Economy of the future
and diversifying the Alberta Economy (Advanced Technology Industries)

5. 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

6. 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

7. WHAT IS AN INNOVATION SYSTEM?

8. 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 Policy
ACTIVITIES & ACTORS.....

9. 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

10. INNOVATION ECOSYSTEMS
Milbergs, E. (2007). Innovation Vital Signs: Framework
Report An Update. Center for Accelerating Innovation.

11. ECOSYSTEM EVOLUTION
Milbergs, E. (2007). Innovation Vital Signs: Framework
Report An Update. Center for Accelerating Innovation.

12. URBANIZATION & CREATIVE CLUSTERS
Wolfe, D. (2009). 21st Century Cities in Canada: The Geography of Innovation. Ottawa: The Conference
Board of Canda.

13. Why such poor return
for
Innovation investment
in Alberta?
BARRIERS
Literature Review

14. 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

15. 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.

16. 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.

17. 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

18. 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?

19. QUESTIONS?