assessing impacts of innovation and business support programs brian barge phd the evidence network...
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Assessing Impacts of Innovation and Business Support Programs
Brian Barge PhDThe Evidence NetworkWaterloo, ON26 February 2015
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This Presentation
• What is innovation?• “…When the tide goes out…” (Warren Buffet)• How innovation is shaping our future• How innovation is stimulated• Are we getting good value for our money?• The Evidence Network assesses impacts of innovation
and business support programs
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Innovation Definition
Implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, work-place organization or external relations.
Organization for Economic Co-operation and Development
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“…When the tides goes out…”
“When the tides goes out, you get to see whose swimming naked” (Warren Buffet)
• A Tale of Two Economies: Jim Balsille, Globe and Mail, February 23, 2015:
“The sudden drop in oil and mineral prices along with the ensuing lowering the Canadian dollar exposes our economy and seriously threatens our high standard of living.”
“The commercialization of innovation is where wealth is being generated in today’s global economy.”
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Stimulating Innovation
Innovation enablers, or innovation intermediaries have at least part of their mission to support business success.• Science and technology parks; business parks• Research and development institutes, networks, consortia• Business accelerators, incubators• University-industry technology transfer offices• Economic development organizations• Boards of trade, chambers of commerce• Industry or trade organizations• R&D tax credits• Business support and financing programs (BDC)• Government funding programs
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Measuring Performance and Impact• Companies– Revenues– Profits– Valuation, etc.
• Universities, educators, etc.– Publications– Patents– Teaching evaluations, etc.
• Innovation enablers– ???????
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The Evidence Network (TEN)
TEN is an independent third-party assessment firm
We focus exclusively on impact assessments of organizations and programs that support business innovation
Rigor of academics; practicality of industry
Born Global
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Our methodology is based upon an in-depth understanding of innovation and is systematically used in practice
Recognized by Center for American Progress, Council of Canadian Academies, marquee customers, and others
Customers: Canada, US, Europe, China
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Recognized by Center for American Progress, Council of Canadian Academies, marquee customers, and others
Our impact assessment methodology is based upon an in-depth understanding of innovation and is systematically used in practice
Recognition
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Example projects
• National Research Council of Canada - Human Health Therapeutics
• Innovacorp• Zhejiang University Science Park• University of California, U.S. – CITRIS (Center for
Information Technology Research in the interests of Society)
• Finland – Tekes, several; Ministry of Employment and
the Economy (all leading business support programs in Finland, with partner)
• Genome BC
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How do intermediaries impact companies?
Innovation Intermediary Client Company
MissionImpact on company performance
ServicesImpact oncompanycapabilities
See Dalziel, M. & Parjanen, S. (2012). Measuring the impact of innovation intermediaries: A case study of Tekes. In Melkas, H. & Harmaakorpi, V. (eds.) "Practice-based innovation: Insights, applications and policy implications", Springer.
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Technical Institute
Technology PlanningTechnology Expertise
Technology Development
Business Expertise
Funding
Hiring HQPPromotion Opportunities
Linkages to Companies
Go-to-market Expertise
Linkages to Networks or Governments
Linkages to Universities
Negative impactNo impactSome impact
Significant impactVery significant impact
100% positive impact
100%
91%
91%
Impact on Company Capabilities
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Time to Market
Ability to Innovate
Investments Received
Change in Annual RevenuesNew Customers
Applied R&D Investments
Change in Employment
Negative impactNo impactSome impact
Significant impactVery significant impact
Technical Institute
74% positive impact
86%
Impact on Company Performance
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Business Expertise
Business Linkages
Research Linkages
FinancingBusiness Information
Promotion and Influence
Technology Capability
<.5 years .5-1.5 years 1.5-2.5 years >2.5 years
Very sig-nificant impact
Significant impact
Some impact
Large incubator/accelerator
Impact on Company Capabilities - Tenure
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 234
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6
7
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Intermediary or Program
Log
(Impa
ct o
n Re
venu
es)
Benchmarking Impact on Revenues
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Average
$100,000
$1 million
$10 million
$100 million
Meaningful reliable data to feed into economic impact estimators.