implementing canadas innovation strategy: engaging stakeholders in policy learning process...
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Implementing Canada’s Innovation Strategy:Implementing Canada’s Innovation Strategy:Engaging Stakeholders in Policy Learning ProcessEngaging Stakeholders in Policy Learning Process
A. Duff Mitchell
Manufacturing Competitiveness Directorate
Industry Canada
Six Countries Programme, Stockholm, Sweden
May 23, 2006
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Canada:
Who we are &
public policy challenges
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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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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
Through “policy learning” success factors identified
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
15,000
20,000
25,000
30,000
35,000
40,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
United States
Canada
United Kingdom
France
Italy
Germany
Japan
GDP* per Person ($US) for the G7 Countries
Source: OECD Economic Outlook* Real GDP, 2000 constant PPP
2nd in G7 re GDP
2nd re GDP growth from 1991 to 2003
But productivity growth has lagged U.S. … & created income gap
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… and productivity challenges are mounting
Private sector R&D investment performance low
M&E investment as % of GDP lowest in G7
Productivity growth also lags main trading competitors
Source: “Canada’s Success is No Accident”, Kevin Lynch, Policy Options, April-May 2006
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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
Canadian industries also facing increasing pressures
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5
10
15
20
1994 1996 1998 2000 2002
Exports to China
Imports from China
Emerging Countries China is now Canada’s 3rd largest trading
partner (total trade increased 555% between 1992 & 2004)
Increased competitiveness for value-added products
Canada’s Merchandise Trade With China ($Cdn billion)
Source: Trade Data Online.
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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/PerformanceCanada’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 6th
Public and Business Confidence / International Recognition
World Competitiveness Rankings 4th
FDI Confidence Index 7th
*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
Our traditional competitors rank higher than Canada in many areas
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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 world-class (global economic reach)
Canada recognizes innovation challenge
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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 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
Innovation initiative heard from all Canadians
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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 collaborateGovernment 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 environmentsupport innovation in tax systemspeed regulatory reformmodernize IP system
3. Strengthen Learning Outcomesaccess learning opportunitiesinnovation in learning systemcareers in skilled tradeslifelong learning
4. Build an Inclusive & Skilled Workforceincrease labour force capacityintegrate immigrants in workforceinvest 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 actiongovernment 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 actiondominated by universities who monopolized debatecomplicated 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 issuesnot national enough in scope (especially re private sector)
Post-Summit:little awareness of follow-up actions“taking stock” Summit not held two years lateroutcomes too high-level & too government-centricfocus 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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