Accelerating Innovation For Jobs and Growth

Dave Robitaille, IBM Canada

The Canadian Innovation Climate

1. Broad Industry trends in innovation– What is IBM doing in Canada to drive and support innovation

The Canadian Innovation Climate

2. How will Niagara succeed over the next 10-20 years in this environment?

The Canadian Innovation Climate

3. What can individuals and organizations do to be in front of these trends?

1 Sweden2 Denmark3 Finland

4 U.S.A.5 Ontario6 Switzerland7 Netherlands8 Quebec9 Austria10 British Columbia11 Norway

12 Canada13 Germany14 Japan15 Alberta16 Australia17 Belgium18 U.K.19 France

Grade A

Grade B

Grade C

Innovation Report Card

1. Public policies block small companies from becoming biggerCanada has tax barriers and policies in place that keep its small businesses from growing into big businesses with more resources to hire, invest and innovate.

2. Canada is vulnerable to cyber crimeCanada loses $3.12 billion to cyber crime per year, and nearly half of all small businesses have been the victim of a cyber attack because they are less equipped to handle attacks.

3. Canada needs a more aggressive and effective innovation strategyCanada needs to reinvest in an innovation ecosystem that supports the capability of business to rapidly respond to change.

4. Canada’s trade agenda—new agreements are just the startCanada has been aggressive in pursuing new trade agreements over the past few years but its businesses continue to face substantial barriers expanding abroad, and Canadian exporters are falling behind in key markets like China.

5. Canadian resources cannot get to world marketsCanada’s trade and foreign investment flows depend on natural resources and its future economic prosperity depends upon its ability to provide reliable infrastructure to allow Canadian energy resources to fuel Asian economic growth at world market prices.

6. Poor literacy, numeracy and digital skills are limiting productivity in segments of Canada’s workforceHalf of Canadians do not have the levels of literacy, numeracy and digital problem solving skills they need to compete in today’s economy.

7. Canada is not ready for climate changeCanada must keep pace to maintain its competitiveness as a location for investment and a source of products.

8. Internal barriers to trade cost Canadians billions and restrict investmentThe Canadian economy remains divided by artificial barriers to trade and labour mobility that frustrate business investment and cost consumers billions of dollars every year.

9. Lack of clarity regarding businesses’ responsibilities to Aboriginal peoples constrains investmentCanada needs meaningful reconciliation with its Aboriginal peoples.

10. Canada’s brand does not support business competitivenessA strong business brand would encourage foreign direct investment in Canada, increase awareness of Canadian export products and support Canada’s tourism industry.

Canada needs a more aggressive and effective innovation strategyCanada needs to reinvest in an innovation ecosystem that supports the capability of business to rapidly respond to change.3.

The Canadian Economic ClimateCanadian Chamber of Commerce TOP 10

Barriers to Competitiveness

2016

1. All true innovation must have broad, multi-sector collaboration to achieve speed and scale

§ Public-Private Partnerships§ Academia, Government, Private Sectors§ Commitment to growing Canadian innovation and speed to market

The New Trends in Driving Innovation

Addressing Canadian challenges and driving IBM Strategy

Collaborative Innovation Centres

Expand and Accelerate Research

Accelerate commercialization of

“Made in Canada” products and services

Attract Investment

To make IBM essential and relevant in Canada by providing IBM technologies that change the business landscape and drive new discoveries / products.

VISIONTo collaborate with academia, industry and government to accelerate research, drive new innovation, incubate ideas and commercialize outcomes both inside and outside IBM.

MISSION

2. The move to ‘Demand-Pull’ Disruptive Innovation§ Extreme client intimacy, and developing solutions to real problems, not just

upgrading to the next level of whiz-bang technology§ Putting more disruptive technologies in more hands, faster, to assist human

creativity. Leveraging decision-assisting tools like IBM Watson§ If you can buy it at the local electronics store, it is not disruptive. But many of

today’s disruptive quickly becomes tomorrow’s commodity

The New Trends in Driving Innovation

Disruptive Technologies/Platform

• AdvancedSoftwareTools:Platform asaService(PaaS)tobuild,run,deployandmanageapplicationsonthecloud.

• CloudTechnology:Computerhardwareandsoftwareresourcesdeliveredoverthenetwork,oftenasaservice

• ArtificialIntelligence:cognitivecomputingasasetofroutines,protocols,andtoolsforbuildingsoftwareapps

• InternetofThings:Networksofsensorsandactuatorsfordatacollection,monitoring,decisionmaking

• MobileInternet:IncreasinglyinexpensiveandcapablemobilecomputingdevicesandInternetconnectivity

• High-PerformanceComputingPlatforms: Supercomputer,dataanalyticscloudcomputingcluster,Agile/FPGA

environmentandLargeMemorySystem(LMS)

3. Increased focus on scale§ Canada has tremendous university capacity delivering world-class research and

prototyping§ Need to increase focus on global competitiveness§ Bringing Canadian ingenuity to full-scale

The New Trends in Driving Innovation

IBM Incubator Initiatives

3600 (Venture Lab, UHN

SOSCIP 1.0

SOSCIP 2.0

CARET 1.0

Nova Scotia

Nfld: Centre for Health Informatics & Analytics

Smart Ocean’s BCOcean Networks

C2MI

SOWC

IBM Canada Innovation Strategic Initiatives 2012 - 2015

Alberta Centre for Advanced Studies

(CAS)

IBM Incubator Initiatives

3600 (Venture Lab, UHN

SOSCIP 1.0

SOSCIP 2.0

CARET 1.0

Nova Scotia Caret 2.0

Nova Scotia

NS: DeepsenseOcean’s COE

PCIP + BCIC NB: McCain /

UNB/SOC

Nfld: Centre for Health Informatics & Analytics

Smart Ocean’s BCOcean Networks

C2MI

SOWCIBM Innov Incubator (I3)

185 Spadina and 3600DMZ Bluemix Garage

CommunitechMaRS

Venture Labs Invest Ottawa

LiKaShing Res Inst(with SOSCIP)

Hamilton Healthcare

COE

IBM Canada Innovation Initiatives2017

Alberta Centre for Advanced Studies

(CAS)

OBI(Parkinsons)

CANet

CIMVHR(with BTIL)

Venture Labs(@3600)

J&J + MaRs(Jlabs

Incubator)

Alta Child Hosp Res Inst (ACHRI)

McGill (MNI)

Aquahacking(expansion)

UdeM Bengio(with IBM Res)

NS CIC +

CFREF : 7 of 13 and $450M of $900M

EncQor

District Ventures

Inc/Accelerator

NB Cyber COE

QCIP

PQ CIC

CGLR

Connected Car

QueensCognitive

MAN MTI

Sask CIP

CAS Renew

CENGN

IBM “Big Play”

+ ~50 Individual Innovation Files / Pursuits / Engagements

COLLABORATION BETWEEN GOVERNMENT/INDUSTRY/ACADEMICS

Bolster skills and economic development through a ground-breaking collaborative research models focused on important aspects of Canadian society/economics

ACCESS TO DISRUPTIVE TECHNOLOGIES

Provide collaborators with support and access to a unique and globally leading technology and research infrastructure to expand and accelerate research scope and outcomes

DEMAND PULL vs SUPPLY PUSH

Accelerate commercialization of “Made in Canada” new products and services, by linking small-med sized businesses to large industry customers – DEMAND PULL

ENTERPRISE SCALE @ Start-up AGILITY

Investment in global and enterprise scale solutions

Canadian Innovation Ecosystemaddressing Canadian challenges…

3

1. Focus on Youth Retention and Attraction§ One of the oldest populations in Canada§ Opportunity for campaign to ‘poach’ talent from the GTA and beyond§ Develop the conditions for economic success by supporting the entrepreneurial

marketspace

How Will Niagara Succeed Over the Next 10-20 years?

2. Focus on skills development§ Starting at K-12 to develop a culture of post-secondary completion§ The technology is the curriculum§ Youth retention is critical

How Will Niagara Succeed Over the Next 10-20 years?

Niagara school makes the grade for at-risk students trying to attend college, universityEntire graduating class has been accepted to college or university, blazing trails in their own families

3. Focus on Entrepreneurship, and start-up culture§ Starting in K-12, teaching students the skills to operate their own businesses§ Working with youth on collaborative problem-solving as economic opportunity§ Orienting local economic development activity to small business

How Will Niagara Succeed Over the Next 10-20 years?

1. Constantly seek innovation in your business2. Invest in new markets and products/services2. Embrace the new economy – don’t fight it

What Can Individuals and Organizations Do?

Thank You!