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Alberta’s Innovation System

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Andrew Reif
Andrew Reif

This document summarizes research on Alberta's innovation system. It finds that while over $5 billion has been invested in innovation, returns have been poor with few spinoffs or large technology firms emerging. The innovation system is also immature as the key organizations supporting it are new. Barriers to innovation are seen more as symptoms of an unclear vision and lack of focus on developing advanced technology industries. Agglomeration of firms is slow due to geopolitical fragmentation and an unclear role for cities like Edmonton and Calgary in innovation. Overall, conditions for innovation could be improved through a clearer economic strategy, incentives, and marketing culture for technology firms in Alberta.

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Andrew Reif BUS 885 Research Project 24 April 2010 ALBERTA’S INNOVATION SYSTEM
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
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 future and 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
WHAT IS AN INNOVATION SYSTEM?
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.....
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 return for Innovation investment in 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?
QUESTIONS?

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Alberta’s Innovation System

  • 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?