Dr Joseph D Wright

The Missing Link in Canada’s Innovation Chain

By Dr Joseph D Wright

As a long-time observer and participant in the Canadian innovation stakes, it concerns me that our Innovation Agenda may not have all the relevant pieces in balance. In its 1995 report, the National Advisory Board on Science and Technology proposed an S&T strategy that honoured the interdependence of wealth and job creation, quality of life, and advancement of knowledge. Along with the intersections that covered technological progress, social progress, and a productive workforce, these elements were intended to form a basis for conceptualizing the S&T framework.

In recent years there has been major focus on the “advancement of knowledge” component, with huge investments in the Canadian university system and infrastructure through the Canada Foundation for Innovation and other vehicles. Canada is a world leader with the innovative Networks of Centres of Excellence, of which two in particular showed effective collaborative coordination of academic research driven by industry. Universities are clearly expected to provide the anchors for technology clusters. Some balance with industry needs has been achieved.

Technology Partnerships Canada and the Industrial Research Assistance Program have grappled with commercialization of technology, and Sustainable Development Technology Canada has recognized the innovation chain gap between academic research and product implementation. So what is the problem? Where is the Agenda incomplete? What is the missing link?

A primary emphasis for academic investments is to generate novel research ideas — those that could be enablers or that have the potential to be transformative and lead to new industries. Yet with few exceptions, leading-edge technologies still have to deliver promised exports and jobs. Traditional industry substantially outperforms leading-edge technologies in terms of benefits to Canada.

For many years I have advocated the balance of strategic long-term research with opportunities that create extraordinary new technologies. By analogy, it is crucial to provide for one’s daily bread and milk. Champagne adds zest to life, but not at the risk of going hungry! It is recognized that the Canadian economy is driven by its traditional industries — mining, forest products, agriculture, energy, oil and gas. They are major employers. The wide geographic diversity of communities that support these industries, and the power of their economic engine must be acknowledged.

Traditional industries are infrequently viewed as “high tech.” In reality, however, these industries not only depend on advanced technology embedded in sophisticated equipment, but also their capacity to innovate depends on the development and implementation of Canadian high-tech advances.

The petrochemical sector could not survive without powerful computer simulation tools to discover new petroleum and gas reserves, and to manage and optimize production in existing reservoirs. Canada leads in this arena. Advances in non-conventional separations systems were needed for tar sands success. Canada’s emerging diamond industry requires sophisticated computer tools for exploration.

The forest sector uses GPS mapping systems for resource management, and real-time optimizers in sawmills to cut each and every log. Advanced automation technology is used to run paper machines that produce a 10-metre wide sheet of paper at upwards of 110 km/h. These are capital intensive industries requiring advanced technological expertise to manage, install and operate plants.

Because of the nature of these sectors, it is easy for the uninitiated to conceptualize a rapid move to high-value products. But it is difficult and challenging to move there quickly. In recent years, it has taken projects requiring hundreds of millions of dollars to achieve these results in Canada’s traditional industries. The missing link in the Innovation Agenda is government support for this vital transition.

It is clear to me that the philosophy of government-funded academic research automatically leading to commercialization will not work for capital-intensive industries, compared to the way it has worked for semiconductors or software. Even medical breakthroughs need to wait for lengthy regulatory responses. Furthermore, serious shortfalls in traditional-industry demands for highly qualified personnel (HQP) are unlikely to be met using this route. A focus on technologies for simulation tools for breakthrough product innovations could solve this dilemma.

In the Canadian forest sector, ideas that bring together the electronics age with the paper world include intelligent packaging and smart papers. Mathematically, we need multi-dimensional pinch analysis programs — an ideal candidate for academic research groups. These and other areas will be attractive to the next generation of students who may shy away from careers entered through incremental research in traditional technologies.

One other unaddressed need comes to mind. The resource industries connect directly to major current public policy issues including climate change, sustainable development and international standards. While governments assume leadership positions on important public policy or trade issues, there is less willingness to participate in industry responses to these new regulations. The opportunity for government’s involvement reaches beyond strictly academic research. Sectors are different. The forest sector — uniquely world-wide — has traditionally relied heavily on pre-competitive research institutes to carry much of this responsibility. The national Innovation Agenda must lever these opportunities for government-Institute-industry research partnerships.

In summary, while recent federal research investments are certainly positive, they have not been made in balance along Canada’s innovation chain. Too much of the Innovation Agenda funding has been directed at academic research with the intent of stimulating knowledge creation, potential new product developments and training of HQP in emerging technology areas. Linkages into the needs of the resource-based and more traditional sectors, that still effectively drive the Canadian economy, have not been acknowledged. It is essential for government to link through the mechanisms and the vehicles for research and technology development used by these sectors, using academic partnerships where appropriate. In this way, government can support the long-term value-added opportunities of these sectors. It can also encourage partnerships that will be needed to keep the sectors healthy and linked to their on-going investments and innovations.

Dr Joseph D Wright is president and CEO of the Pulp and Paper Research Institute of Canada.