The science of progress and the business of innovation

Q: Is there is a sentence that describes what Ontario must do to prosper in the future?

Become much more innovative.

That sounds like it was always the catchphrase.

Maybe, but there is much confusion still over innovation and the commercialization of new knowledge. Moreover, globalization and an accelerating pace of technological change are putting increasing pressure on Ontario's existing economic base, which means we have to get the innovation process right. We are living in Schumpeter's world of "creative destruction" and can only prosper if we succeed in moving to new and higher-value activities to replace what we lose. This is what innovation is all about.

And how do we do that?

First, we have to focus on how innovation really happens. Much attention is paid to universities as drivers of innovation, with the expectation that universities will develop new industries and jobs by licensing patents or spinning out new companies. This can happen. But most innovation happens in companies. Bombardier's Q400 commuter aircraft, Husky Injection Molding's plastics technology, Inniskillin's icewine and Linamar's automotive technologies, not to mention the ubiquitous BlackBerry, are among Ontario's leading exports. Universities helped a lot, but companies drove these innovations.

And what do these successes say to us?

We need innovative companies. If we don't have companies that want to innovate, little will happen. Universities are important partners because they provide the pool of talent that companies need if they are to innovate, conduct research that advances knowledge that can create new opportunities and help companies solve problems though consulting. RIM, for example, looked to university experts to help improve the BlackBerry's battery life and powerful antenna.

Does this race to innovate put new demands on universities?

A big need is to find better ways for industry/university interaction, with people and ideas moving readily between them. We are doing more of this in Ontario now. I'm thinking of places like Brock University's Cool Climate Oenology and Viticulture Institute, which graduates highly qualified workers to advance Ontario's wine industry and conducts research to improve the quality of grapes and wines. But their skills and research must mesh with what our wine industry needs.

Brock is not alone, I assume.

Absolutely not. The University of Waterloo's Centre for Automotive Materials and Manufacturing, McMaster University's Steel Research Centre and the Queen's University-RMC Fuel Cell Research Centre all fit in the same category. And there are others.

And what do centres like these need to prosper?

Strong private-sector support is vital. To be at the frontiers of new knowledge, universities need the latest technology for teaching and research. It makes no sense for students to graduate from Ontario universities with skills based on outdated technologies. So government must keep universities at the cutting edge of what is out there. To stand still is to fall behind.

Are you saying we don't need curiosity-based research in universities?

Absolutely not. The Internet, the microprocessor, materials for jet engines and the pharmaceutical industry all have their roots in fundamental science that emanated largely from curiosity-driven research. There have been all kinds of interesting spinoffs from basic research - the laser, compact disc and bar codes come out of one of Einstein's 1905 papers, for example. But the commercial potential of such advances typically depends on businesses learning how to use this new knowledge. Ontario's innovation driver is going to be the business community. But to succeed, business needs strong universities.