Being the “crackberry” sort that rolls over in bed to check email, I could not help but look forward to my trip to Waterloo (Ca) for a meeting of the Canadian Federation of Business School Deans. Waterloo-based IT companies like the Blackberry-maker Research in Motion (RIM) and Open Text, a leader in enterprise content management (ECM), are often cited in Canadian policy circles as examples of the economic success that innovation can generate. The University of Waterloo has a well-earned reputation for cutting-edge research in computer science and a bunch of companies in the information technology sector have clustered around it. I was excited about the innovation prospects of Canada when I finally arrived at the Waterloo Inn last month.
Adding to my enthusiasm, while I was in Waterloo the Canadian government announced 19 appointments in its Canada Excellence Research Chairs (CERC) program, which intends to build research capacity in four priority areas: environmental science and technologies; natural resources and energy; health and related life sciences and technologies; and information and communication technologies.
The program, which reflects an established emphasis on science, engineering, and technology in higher education, will elevate Canada’s standing in the global scientific research community. It will attract more young bright minds to Canada and will push at least a few of the 13 recipient institutions higher in global rankings of research universities. The research may eventually lead to enormous improvements in sustainability, health, and productivity. One of the two University of Waterloo chairs could contribute to the word’s first generation of quantum devices.
But will the program actually spur innovation in Ontario and Canada? By itself, I don’t think so.
During the meeting we heard the Executive Chairman of Open Text attribute their success in innovation to the right business strategy and recruiting and retaining great management talent, as well as to being “unprotected” and forced to compete in a global environment. He said that successful Canadian companies share the “5/95” rule; five percent of their business is domestic, 95 percent is international. I also learned that RIM wasn’t, as I had thought, created on a university patent and that its founder turned to an experienced business person in 1992 to realize the company’s growth potential.
Basic scientific research is necessary, but the high-level knowledge of type envisioned by CERC has the disadvantage of being easily codified and transported across borders. The benefits of Canada’s financial commitment will “spill-over” into other countries, especially those that are better-equipped to create value from the new ideas. While this is not bad news for the world, it could be for Canada if it does not also create a business environment more conducive to innovation and concentrate on developing business and managerial talent.
I’m not deeply informed about Canadian innovation policy, so I may have missed something. Nonetheless, by the time I left Waterloo I doubted whether Canada has found the right balance in its efforts to foster more innovation through higher education. In a time when the intersection of science and business has never been greater, Canada’s emphasis seems awkwardly one-sided. If Canada wants to create real economic progress from its investment in science, then it should also credibly and visibly commit to developing business leadership and managerial talent.
Visit the AACSB Innovation Resource Center for more on this subject.