Creating a Coherent and Coordinated Ecosystem in Science, Technology, and innovation. Howard Alper

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1 Creating a Coherent and Coordinated Ecosystem in Science, Technology, and innovation Howard Alper Chair, Canvassing Committee, Global Research Excellence Initiative by Canada s Head of State And Distinguished University Professor, University of Ottawa, Ottawa, Ontario, Canada This brief describes some of the elements pivotal to the creation of a coherent and well-coordinated ecosystem in science, technology, and innovation (STI). The paper is designed to stimulate constructive discussions at the third Global Forum on National Advisory Councils being held in Pretoria, South Africa on December 5 and 6, It is not a review. It is not comprehensive. The expectation is that participants will come forward with creative new ideas that can make a difference to nations, and to society as a whole. National STI Agendas Objectives are to 1. Create an ecosystem which can foster STI so as to enhance economic advancement and improve societal well-being for the citizens of a nation. 2. Develop national innovation strategies, with strong consensus support from different stakeholders [industry, academia, and governments]. Strategy implementation through programs and initiatives, accompanied by monitoring and accountability, are pivotal to ensuring success for the national innovation agenda. Building Successful Societies There are many issues to consider in building an even more successful society for those countries that are currently doing rather well, and also for other nations which are improving from low to moderate degrees of success. An effective ecosystem in STI is in a position to contribute meaningfully to the provision of access to 1

2 (i) (ii) (iii) (iv) High quality education and research Clean water Electricity An excellent public health care system A first-rate free public, primary and secondary education, followed by rewarding university education and research experiences, and when coupled with effective, honest and visionary leadership, can assure fulfillment of basic needs [i.e. i-iv above]. A value system of excellence and integrity in everything one does, is essential here. Parents and school teachers must take leadership in instilling these values in the early school years, reinforced by government. Roles and Responsibilities of the Major Stakeholders in Attaining a Vibrant STI Ecosystem (a) Private sector Pursues STI IN the firm so as to discover/invent next stage/generation products, processes, and technology, as well as to innovate on existing knowledge and commercial entities. Driven by the need to be competitive on a global basis. Encourages firms to know what questions to ask from an R & D perspective, to position the company advantageously, thus using the outcomes as springboards to future industrial successes. These principles apply to large and some medium sized companies, while small firms, especially start-ups, are usually not in a position to undertake much research. They are often functioning in survival mode, focussing on obtaining financial support through venture capital and other sources, on the road to commercialization. (b) Government support to the private sector Indirect support Conventionally based on scientific research and development expenditures by companies. 2

3 Quantity, not quality, driven. e.g. Canada spends about 3.6 B/year in indirect support. Canada ranked 4 th in 2013, as a per cent of GDP, and has ranked 1-4 during the last 25 years. Such expenditures have had minimal impact in enhancing R & D in industry. Consultants who prepare the extensive documentation needed to obtain funding, are major beneficiaries here. Direct support By peer-adjudicated grants [ e.g. DARPA/SDTC/IRAP] Quality, not quantity, driven. e.g. Canada s direct support to the private sector is less than the vast majority of industrialized countries. For 26 OECD countries, the average ratio of direct to indirect support by government to industry is The ratio is 2.71 for the United States, 6>00 for Finland, and for Canada. The low level of direct support by Canada handicaps the competitiveness of Canadian business R & D. (c) Government Support for research in universities Governments have the primary responsibility to support basic research in academia. The American engineer, Vannevar Bush, in a ground breaking report to the U.S. President in 1945 entitled Science, The Endless Frontier, made a compelling case for the role of governments to support science. He also encouraged the establishment of the National Science Foundation. While industry and, occasionally, foundations and philanthropists make financial investments in University research, the national government has the overarching responsibility to support excellent science, technology, and innovation in academic institutions. (d) Government role in facilitating the commercialization of discoveries, inventions, and innovations Accelerating the growth of start-up companies [gazelles] Supporting developmental work, pilot studies, and scale-up 3

4 Finance measures including venture capital especially in challenging economic times, marketing, and commercialization (e) Business-University partnerships in STI-Financial support by the private sector, or the private sector and government Two principal strategies are often utilized by the private sector in pursuing business-university partnerships: 1. Offensive To have academics undertake STI studies for the firm s R & D portfolio, leading to new inventions and discoveries. 2. Defensive To build fences around key corporate patents, thus enhancing intellectual property protection Identifying partners for collaboration-essential to the success of this component of the Ecosystem. 1. Businesses (i) Seek out world-class expertise in universities. Many companies have staff tasked with finding opportunities to partner with universities (ii) Look within networks. Personal relationships are important when searching for a potential collaborator (iii) Issue challenges to attract researchers (iv) Attend conferences where cutting-edge research is presented 2. Universities (i) Offer co-op and other internship programs to students to work in the private sector (ii) Network with industry (iii) Develop centers of excellence (iv) Operate liaison programs that provide a portal for industry (v) Recruit leading researchers in the private sector to teach part, or all, of a graduate course Benefits to the stakeholders 1. Private sector (i) Increases research capacity (ii) Provides access to technology and infrastructure not available in the firm (iii) Increases expertise, including access to talent and potential future employees (i.e. students) (iv) Helps to ensure that universities provide the training that produces the expertise industry needs to succeed (v) Creates a buffer between research and the business cycle 4

5 2. Universities (i) Increases relevance of research in universities (ii) Provides training for students, including experience working on real world problems within industry time lines. (iii) Provides opportunities for some students to work for short periods in the private sector (iv) Increases the awareness in industry of university research (v) Generates financing for research 3. Government (i) By having private sector-university partnership programs funded by government, leveraging the governments support can markedly enhance funding and, as well, incentivize industry to invest in academic research (ii) Other valuable benefits include job creation, and the commercialization of any of the joint research may generate tax revenues in successful new, or established, companies. Best Practices for a Coordinated STI Ecosystem in Government Essential to the development of a STI ecosystem is the organization of STI within the national government. The governance of the ecosystem needs an effective organizational structure and should include a Science Advisor to the National Leader, and an Advisory Council composed of accomplished individuals and young leaders of tomorrow, who together bring their different competencies and skill sets to the table, so as to provide sage, evidence-informed advice on issues of importance to the nation. Other key elements of the government ecosystem are granting agencies, as well as coordinating bodies across government departments and agencies. A major challenge in most governments is the inability, and often unwillingness, for different sectors to work together on issues( STI and other) of significance to the country. Policy alignment-both vertical and horizontal-is essential to successful policy creation and implementation. Territorial protection-working in silos- usually trumps cross-departmental partnerships to benefit the citizens of a country. Establishing incentives to minimize barriers and maximize interdepartmental partnerships in STI merits serious attention. Having meaningful reward and recognition crossgovernment programs, including awards and prizes to celebrate outstanding achievements, will increase morale and pride of the civil servants including STI researchers. 5

6 Recommendations for Consideration 1. Government support to STI in the private sector The ratio of direct to indirect support by governments to the private sector should be at a minimum of 1.5 to 1.0. A case can be made for having a higher ratio for developing countries 2. Coordination of STI across government departments and agencies It is recommended that national advisory councils develop a path to success for the coordination of STI across government, including : (i) ways and means to minimize and preferably eliminate, barriers to establishing and sustaining partnerships; (ii)incentives to collaborate across government departments and agencies; (iii) launch new prestigious awards and prizes to recognize and reward interdepartmental STI partnerships 3. Aligning education with receptor capacity in knowledge-based economies In countries which have significant knowledge-based economies, there are shortages of human resources having the necessary education and skill sets to enjoy successful career advancement. New policies are recommended to better link education and research, with receptor capacity in industry and other sectors. 4. Financial strategies to enhance success in the commercialization of new discoveries and inventions Growing start-ups depends in good measure on excellent financial instruments. It is recommended that financial institutions work with the private sector and government to establish new options for entrepreneurs to access to develop their firms based on STI discoveries/inventions. Also modernization of venture capital and angel investment tools is merited. 6

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