Transcript Document

Implementing Canada’s Innovation Strategy:
Engaging Stakeholders in Policy Learning Process
A. Duff Mitchell
Manufacturing Competitiveness Directorate
Industry Canada
Six Countries Programme, Stockholm, Sweden
May 23, 2006
Canada:
Who we are &
public policy challenges
2
Canada is a prosperous & successful country
large, resource rich country …
relatively small, high income, bilingual & multicultural population …
federal political system & situated next to U.S.
 Canada ranks high as place to live & do business:
• United Nations Human Development Index – 5th among 177
countries in 2005
• World Economic Forum’s international competitiveness ranking –
13th in 2005
• OECD’s measure of living standards – real GDP per capita was 2nd
highest in G7, 9th in the OECD in 2004
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Focused on three policy challenges & innovation
1.
Increasing productivity growth on sustained basis
(objective: closing productivity gap vis-à-vis U.S.)
2.
Improving human capital through education & training
(objective: one of best educated society/economy in world)
3.
Enhancing global economic reach (objective: more
global FDI, deeper trade links in key markets, creating
stronger “Canada brand”)
Canada’s Innovation Goal: To be recognized as one
of the most innovative countries in the world
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Through “policy learning” success factors identified
Maintaining comparative advantage in competitive &
rapidly changing global marketplace requires:
quality of policies & institutions (& quality of human
resources & national endowments)
flexibility, adaptability & speed in policy formation &
delivery
continued alignment of government policies &
business strategies
Source: “Canada’s Success is No Accident”, Kevin Lynch,
Policy Options, April-May 2006
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Why an Innovation Strategy?
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Canadian economy performance is mixed
GDP* per Person ($US) for
the G7 Countries
 2nd in G7 re GDP
 2nd re GDP growth from
1991 to 2003
 But productivity growth
has lagged U.S. … &
created income gap
40,000
35,000
United States
Canada
30,000
25,000
Japan
France
20,000
United Kingdom
Germany
Italy
15,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
* Real GDP, 2000 constant PPP
Source: OECD Economic Outlook
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… and productivity challenges are mounting
Productivity growth
also lags main
trading competitors
Private sector R&D
investment
performance low
Source: “Canada’s Success is No Accident”, Kevin Lynch, Policy
Options, April-May 2006
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M&E investment as
% of GDP lowest in
G7
Canadian industries also facing increasing pressures
 Higher Energy Prices
• price of oil & natural gas rose by 200% & 455%, respectively from 2001 to 2005
 Appreciated Canadian Dollar
• Canadian $ increased by more than 30% against US $ since 2003

Emerging Countries
 China is now Canada’s 3rd largest trading
partner (total trade increased
555% between 1992 & 2004)
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15

Increased competitiveness for
value-added products
Canada’s Merchandise Trade With
China ($Cdn billion)
Exports to China
Imports from China
10
5
0
1994
9
1996
1998
Source: Trade Data Online.
2000
2002
Our traditional competitors rank higher than
Canada in many areas
 Canada needs to rank
near top to compete
successfully
 But Canada’s innovation
performance ranks near
bottom in G7 – e.g.,
R&D, continuing
education, regulatory
environment & FDI
Benchmarks/Performance
Canada’s
Rank
(Out of 11*)
Investment in Research and Development (R&D)
Gross Domestic Expenditure on R&D (GERD)
7th
Business Enterprise Expenditure on R&D (BERD)
8th
Publication of Scientific Papers
5th
Commercialization
University/Industry Collaboration in R&D
2nd
Technology Balance of Payments
5th
Skills, Education and Training
University and College Graduates
1st
Adult Participation in Continuing Education
6th
Regulations and Reform
Economy-Wide Regulatory Environment
*These 11 countries are Australia, Canada, Finland,
France, Germany, Italy, Japan, Spain, Sweden, United
Kingdom, and United States
Source: Conference Board, Exploring Canada’s
Innovation Character, June 2004
6th
Public and Business Confidence / International Recognition
World Competitiveness Rankings
4th
FDI Confidence Index
7th
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Canada recognizes innovation challenge
Key innovation challenge areas:
 knowledge performance challenge (R&D) – promote
creation, adoption, & commercialization of knowledge (productivity
growth)
 skills challenge – ensure an adequate supply of people who
create & use knowledge (human capital)
 innovation environment challenge – ensure that Canada’s
stewardship regimes & marketplace framework policies are worldclass (global economic reach)
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The Federal Government Innovation
Strategy Initiative
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National Innovation Strategy involved multi-pronged
engagement process
 National Engagement Process launched 2002:
 February: released Innovation Strategy Papers – set directions for
2010
 May – October: asked Canadians for views on targets, priority
actions, recommendations
 November – National Innovation Summit
 Two overarching objectives:
 mobilize Canadians to make commitments – and turn them into action
– so that Canada becomes one of most innovative countries in world
 examine Government’s Strategy to accomplish this goal – then tell us
if we’ve got it right
http://www.innovationstrategy.gc.ca
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Engagement process resulted in extensive outreach
Source: Public Policy Forum, “Engaging Leaders: Lessons from the Innovation and Learning Strategy”
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Innovation initiative heard from all Canadians
Innovation Secretariat established
10,000+ Canadians participated in:
33 regional events
80 sectoral group meetings
40 expert, best-practice, and interest group roundtables
multiple streams, e.g. sectors, regions, youth, provinces
600+ online responses from individuals & SMEs
250+ formal submissions received from organizations representing hundreds of
thousands of Canadians (posted on line)
key federal government departments involved
Knowledge Matters: Skills & Learning for Canadians
Achieving Excellence: Investing in People, Knowledge & Opportunities
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… and Canadians had a lot to say
Confirmed major directions set out in Innovation Strategy papers
Suggested modifications to certain targets & milestones
Move faster in key areas (e.g. regulatory reform)
Modify performance measures in key cases (e.g. R&D intensity)
Provide more clarity (e.g. cluster strategy)
Pointed out deficiencies (e.g. insufficient focus on commercialization
efforts; skilled trades)
Recognized that many stakeholders must collaborate
Government cannot act alone; innovation is everybody’s business; role for
all key stakeholders
Demonstrated sense of ‘readiness’ to move forward – Canadians
mobilized; ready to commit; wanted ‘fast action’
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Canadian views captured for policy analysis
Views summarized in Canadians Speak on Innovation and
Learning
Analysis of key issues & recommendations by stream
2000+ recommendations; 5 key horizontal issues with 93
recommendations for prioritization at National Summit (National
Summit Discussion Guide)
http://www.innovation.gc.ca/gol/innovation/
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Agreement reached on 18 priorities across 5 themes
1. Improve R&D &
Commercialization

research capacity

commercialization outcomes

access to capital
2. Enhance innovation
environment
support innovation in tax system
speed regulatory reform
modernize IP system
3. Strengthen Learning
Outcomes
access learning opportunities
innovation in learning system
careers in skilled trades
lifelong learning
4. Build an Inclusive & Skilled
Workforce
increase labour force capacity
integrate immigrants in
workforce
invest in workplace training
5. Strengthen Communities …
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…and Government commitments announced
accelerate timetable for regulatory reform
review of foreign ownership restrictions in telecom
sector
benchmark Canada’s innovation performance
reconvene in 2 years to assess progress & determine
next steps
Results published in Summit Summary Report
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Government followed up with timely actions
Budgets 2003, 2004 & 2005 delivered on most priority recommendations:
Increased funding for research (e.g., CFI, Granting Councils)
Expanded support for successful programs (e.g, IRAP)
Improved business environment (e.g., tax measures, risk capital)
Improved financial assistance for students, foreign credential recognition
Increased funding for RDAs, CFDCs, Atlantic tech clusters, social economy
External Advisory Committee on Smart Regulation provided
recommendations in September 2004; Report on Actions & Plans tabled
March 2005
CBOC benchmarking report released in September 2004
Auditor General audit of Innovation Strategy (November 2005)
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Policy learning from
engaging stakeholders in
Innovation Strategy
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Post-Summit review of engagement strategy mixed
Engagement process achieved “core” objectives:
consensus obtained on innovation challenge & need for action
government delivered on most commitments & responded to priority
recommendations (e.g., Budgets 2003, 2004, & 2005)
themes identified at Summit continue to resonate in public policy
discussions & program funding decisions
But … not all expectations realized
… and many private sector stakeholders did not develop action
plans
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External assessment critical of process
Public Policy Forum (PPF) observations based on
interviews of only 23 Summit “leaders”:
“…National Summit was not successful in achieving its goals of creating
a national action plan or in securing commitment from all sectors to
participate in its implementation because of flaws in the process,
agenda, participants, timing and outcomes.”
Source: Public Policy Forum, “Engaging Leaders: Lessons from the Innovation and Learning Strategy” (pg., 11)
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PPF focused on “perception” of coordination issues
National Summit Process:
pre-set course of action
dominated by universities who monopolized debate
complicated by having two-leading departments (Industry Canada & HRSDC)
politicized by “politics of the day”
National Summit Agenda:
too large to be meaningful (500+ leaders over 2 days)
mix of priorities & ideas (& too many ideas)
some themes poorly defined (e.g., Strengthening Communities)
Insufficient time for full discussion of issues
not national enough in scope (especially re private sector)
Post-Summit:
little awareness of follow-up actions
“taking stock” Summit not held two years later
outcomes too high-level & too government-centric
focus more on National Summit event than continued stakeholder engagement
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Overall conclusions from innovation strategy …
1. importance of innovation was never in question
2. government actions must correspond to advice received during
engagement process
3. communities & sectors were ready to move, but were waiting for
government to act as well
4. resources needed for follow-up work
5. approach must be integrated
6. partnerships must be established with enterprises &
communities
7. a Summit can gave credibility to Innovation Strategy, but just
beginning of implementation process
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… and lessons learned for future engagement
federal co-leads on horizontal files can result in increased
workload for stakeholders, imposes coordination challenges for
departments & can lead to an “accountability vacuum”
focus on a short list of national issues to produce viable plan.
Develop jointly with private sector to ensure they share
responsibility to implement
engage for implementation of action plans as well as development,
using networks developed during consultation
better communication of follow-up actions required
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Building on
stakeholder engagement process
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Industry launches national consultation on future
Canadian Manufacturers & Exporters’ (CME)
Manufacturing 20/20:
challenges & changes affecting manufacturing
future of manufacturing in Canada?
98 meetings held in 2004/05, involving 3,500+ manufacturers &
stakeholders
input from 15 industry associations
survey of 942 manufacturers in 2005
National Manufacturing Summit (February 2005)
Reports: innovation, workforce capabilities & international business
www.cme-mec.ca
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Commercialization Expert Panel addresses key issue
People and Excellence: The Heart of Successful
Commercialization (April 2006):
11 recommendations
focus on development of business-led Commercialization Partnership
Board (CPB)
would create new role for private sector as full partner in charting course
for, & developing policy related to, commercialization
www.strategis.ic.gc.ca/commercialization
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Government to advance innovation in Budget 2006
“Over the coming year, the Minister of Industry will be
developing a science and technology strategy, in
collaboration with the Minister of Finance, that will
encompass the broad range of government support for
research, including knowledge infrastructure. The
Government will also undertake a review of the
accountability and value for money of the granting
councils’ activities.”
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