Ontario's Regional Economic Development and Innovation Newsletter



Issue #197                                                         September 1, 2009

  Studies & Publications: Announcements | Editor's Pick | Innovation Policy |Cities and Regions | Statistics and Indicators| Policy Digest | Events
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This newsletter is published by ONRIS at the Centre for International Studies, University of Toronto, and sponsored by the Ministry of Research and Innovation. The views and ideas expressed in this newsletter do not necessarily reflect the views and policies of the Ontario Government.

ANNOUNCEMENTS                                                          [Table of Contents]


New Funding for Creative Communities

The Ontario government has introducced a new funding program: The Creative Communities Prosperity Fund (CCPF). The program aims to strengthen culture's role in building vibrant, liveable communities across Ontario by supporting municipalities and innovative organizations that increase local capacity for Municipal Cultural Planning (MCP) and community economic development.

US$1.36 Billion to Create a Technology Epicenter in Michigan

Michigan was recently established as the epicenter of an Obama administration push to build systems that will power the cleaner autos of the future, with the state winning most of a $2.4-billion federal grant program. The $1.36 billion heading to Michigan is to create up to 6,800 jobs in the next 18 months and up to 40,000 through 2020, and puts the state in position to compete with Asian manufacturers who have a stranglehold on making batteries for hybrids and electric cars.

BC's Innovative Strategy for Clean Energy

British Columbia has a simple strategy for becoming a hub of clean technology — be bold. Tthe province has established aggressive clean-energy initiatives, including North America's first carbon tax to meet its goal of reducing greenhouse-gas emissions to 33% below 2007 levels by 2020. Carbon-based fuels will be taxed at a rate of Can$10/tonne (US$9.28) of carbon emissions now and at Can$30 per tonne by 2012. The B.C. government has also made reducing carbon emissions part of a wider plan to stimulate job growth in the region, where the traditional natural-resources industries of forestry and fisheries are struggling. From biofuels to wave energy, the province's government and the Canadian federal government have made sizeable investments in the research, development and commercialization of clean-energy alternatives to fossil fuels.

EDITOR'S PICK                                                             [Table of Contents]


Pittsburgh: The Rest of the Story

Eric Lotke et al., Institute for America's Future
Pittsburgh has weathered the economic ups and downs well. And although it is largely ignored as what most would consider a “great American city,“ Pittsburgh was recently ranked as the most livable city in the U.S and 29th in the world by The Economist. Now is a particularly exciting time for the Steel City. Finally finding its spot on the map, Pittsburgh will be playing host to three very important national and international events: Netroots Nation, the AFL-CIO conference and the G-20 Summit. The city of Pittsburgh is often given as an example of a locale that has successfully made the transition from the old to the new. This report examines Pittsburgh’s story and points out lessons for other cities in comparable circumstances.

INNOVATION & RELATED POLICY                                  [Table of Contents]


Innovation for Scotland: A Strategic Framework for Innovation in Scotland

Scottish Government - Innovation and Industries Division
The Scottish Government has a clear purpose: to create a more successful Scotland with opportunities for all to flourish through increasing sustainable economic growth. Innovation for Scotland is essential to achieving that purpose. Innovation improves productivity, creates new products and services, creates new jobs in existing industries and industries of the future and stimulates greater economic participation. All these are crucial to increasing sustainable economic growth. describes how a partnership between businesses, Government, enterprise agencies, and academia, is essential to survive the downturn, and to take full advantage of the economic recovery when it comes.

Research Parks for the Knowledge Economy

Pete Engardio, BusinessWeek
Historically viewed as an important contributor to job creation in emerging fields and a revenue generator for cities and states, science and technology parks serve an essential role in driving high-tech economies. This article predicts that as nations emerge from the global recession, science parks are likely to play an even larger role in the process of ensuring that local economies remain competitive. And with increasing international competition, many established parks are undergoing transformations, adding square footage and distinct features in order to stand out among the crowd. The article also provides several examples of "high-tech meccas" being constructed across the world with the goal of creating a new type of community where innovative companies co-exist with research, training and tech transfer centers.

Productivity, Performance, and Progress: Germany in International Comparative Perspective

Vlad Manole et al., The Conference Board New York
This study argues that the key to a successful and sustainable growth strategy for any time and place is to find the optimal balance between labour productivity growth and labour input growth. In other words, economies need to create more productive jobs that will lead to an improvement in average living standards. Productive jobs are also the primary mechanism by which the gains from productivity growth can be widely distributed across the economy—to consumers through lower prices and to workers as higher rewards. These same gains provide the resources for new investments and a sustainable growth path.

 

CITIES, CLUSTERS & REGIONS                                          [Table of Contents]


The Local Economic Impact of Eds & Meds: How Policies to Expand Universities and Hospitals Affect Metropolitan Economies

Timothy J. Bartick and George Erickcek, The Brookings Institution
Economic development policymakers are increasingly looking to hospitals and universities as potential drivers of economic development in metropolitan areas, especially in central cities. These “eds and meds” institutions are large, immobile and often growing employers that hold the potential to offer relatively high-wage jobs to workers without college degrees. A number of metropolitan areas have large concentrations of colleges and universities, while health care institutions are more evenly spread out among metropolitan areas. This report examines the impact on metropolitan economic development of policies to expand health care and higher education institutions.

Town-Gown Collaboration in Land-Use and Development

Yesim Sungu-Erylimaz, Lincoln Institute
nstitutions of higher education are entering a new era. Once considered enclaves of intellectual pursuit, they now play a much broader role in their neighbourhoods and cities. They have become anchor institutions and key partners in contributing to urban economic and community development, not only through their direct impacts on employment, spending, and workforce development, but also through their ability to produce innovation, attract industry, and revitalize their own neighbourhoods. To meet their expanding missions, institutions often have to reach beyond traditional campus boundaries, and establish more collaborative town–gown relationships. This policy focus report describes the economic role of the university and sources of conflict with the community.

STATISTICS & INDICATORS                                                                  [Table of Contents]


Per Capita Income by US Metro Area

Bureau of Economic Analysis
Over the five-year period from 2004 to 2008, 124 of the 366 U.S. metropolitan statistical areas experienced a change in per capita income at a greater rate than the U.S. as a whole, according to statistics released last week by the Bureau of Economic Analysis (BEA). In 2008, per capita personal income in the U.S. was $39,582, a 19.4 percent increase since 2004. To further examine all 366 metro areas in the U.S., SSTI has prepared a table showing the amount and change in per capita income for each MSA from 2004 to 2008. The metro area situated around Midland, Texas experienced the largest increase in per capita income, growing by 51.1 percent over the five years. The Midland MSA was also in the top ten of MSAs in its projected 2008 per capita income.

POLICY DIGEST                                                                  [Table of Contents]


Framing Paper - Implementing ARRA: Innovations in Design in Metro America

Mark Muro et al., The Brookings Institution
America does not possess a single national economy. Instead, prosperity flows from a network of 366 diverse metropolitan economies. Which is why it is hugely important that creative urban and regional leaders across a number of U.S. regions are currently working to make the most of the unprecedented resources that have been made available by the American Recovery and Reinvestment Act of 2009 (ARRA). This report first reviews the challenges that ARRA poses for would-be innovators, and probes the nature and early progress of a number of the most creative implementation efforts in metropolitan America. Ultimately, the brief makes several recommendations of near-term federal actions that might help more urban communities carry out creative, high-impact strategies for leveraging the resources of ARRA.

The report identifies three set of interesting findings:

Innovating Cities Exhibit the Key Traits of High-Performance Organizations

The most intriguing efforts to draw down and put recovery act resources to work creatively embody one or more of five key traits of 21st-century high-performance organizations and initiatives, as identified by Brookings’ Blueprint for American Prosperity effort. In this regard, each of the innovative ARRA initiatives surveyed in this report reflects one or more of the following characteristics:

  • Reflects a (long-term) regional vision or goals. ARRA’s urban innovators frequently have a focused strategy that reflects a long-term vision of success;
  • Adopts multi-jurisdictional or multi-sectoral approaches. The emerging ARRA innovations transcend narrowness;
  • Embraces integrated solutions. Overcoming programmatic stove piping is crucial for realizing multi-dimensional problem-solving;
  • Catalyzes market and private investment. Some of most creative urban ARRA implementation projects employ creative use of private-sector partnerships;
  • Employs information management, data, and benchmarking to maximize performance. Many of ARRA’s most sophisticated urban/metro implementation initiatives are intensely focused on using information to optimize performance.

Innovating Cities Have Regional Vision, Leadership, Institutional Capacity and a Spirit of Collaboration

Looking across the innovators, it appears that the presence of a pre-existing regional vision or plan, strong leadership and institutional capacity, and a spirit of collaboration all contribute to local creativity. Certainly, creative design activity has clustered around those ARRA programs— such as the Energy Efficiency and Conservation Block Grant (EECBG) program or the Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP2) program — that encourage it with either flexible rules or an explicit call for collaboration or integrated proposals. But beyond that it appears that:

  • Places that tend to innovate are innovating again. Creativity breeds creativity, it seems, when it comes to innovative ARRA implementation schemes. For example, Seattle and the Puget Sound have long been innovators when it comes to sustainability issues, with dedicated public offices to address environmental concerns and a regional culture primed to embrace new green initiatives. Now they offer compelling ARRA responses;
  • Grounding recovery projects in long-run visioning and planning advances creativity by providing a framework for aligning activities. Given ARRA’s complexity and breadth, having a regional strategy in place helps local leaders to prioritize. When ARRA came down, it helped that Seattle, Chicago, and Flagstaff already had in place plans focused on energy efficiency that allowed them to move adeptly to design ways to effectively deploy stimulus funds;
  • Strong leadership matters—and it can come in multiple forms. Dynamic individuals played a key role in Kansas City’s Green Zone, Puget Sound’s New Energy Solutions, and Memphis’ City of Choice initiatives. Also metropolitan planning organizations (MPOs) in Kansas City, Puget Sound, and Chicago, are proving catalytic by serving as forums for regional planning and sources of institutional capacity, multijurisdictional project-management, and experience with federal grant applications;
  • Institutional collaboration is vital. Achieving any degree of integrated recovery solutions requires extensive cooperation among multiple institutions from multiple sectors. In Memphis, the Blueprint for a City of Choice effort needed to bring together city, county, and school district officials, as well as area business leaders to address its broad suite of 12 economic
    development priorities;
  • Sometimes new institutions and mechanisms are necessary. Weaving together disparate programs into integrated responses may required new ways of doing business. On Cape Cod, public and private leaders across 15 towns — concerned about the vulnerability and limitations of their local broadband system — have created a new 501(c) 3 non-profit corporation to oversee the build-out, operation, and maintenance of a robust new regional digital communications network that will draw on ARRA funding for initial deployment;
  • States can be productive partners, or create hurdles to innovative implementation. In California, the Business, Transportation and Housing Agency (BT&H) invited each California region to develop its own Economic Recovery Workplan to help the state identify the best prospects for expending ARRA resources efficiently and effectively—a process fully
    embraced by the Bay Area;
  • Innovation seems to thrive when participation is not forced or mandatory but voluntary, incentivized, and established with a lot of outreach to build buy-in. For example, Puget Sound Regional Council’s ARRA Clearinghouse and other organizing efforts are purposefully designed to encourage bottom-up organizing without adding a layer of top-down bureaucracy.

Innovators Can and Should be Better Supported

In view of the dynamics listed above, the White House, federal agencies, and the philanthropic community should work to support creative design, disseminate best practices, and clear away obstacles to their spread. Numerous statutory, regulatory, and administrative reforms will be needed to better enable local innovation. For now, three modest initial responses would do a lot to nurture, empower, and multiply the best sort of creative, high-impact implementation:

  • The White House and cabinet agencies should explicitly promote innovative local implementation. The first response is simple. Words and gestures matter; so does moral support. Therefore, the Obama administration should employ its bully pulpit to explicitly and prominently affirm the value of creative, integrated, regionalist implementations of ARRA. A presidential statement, Office of Management and Budget directive or a concerted effort by the administration to identify and highlight exemplary local innovation would help catalyze more of it.
  • The Obama administration, Congress, and the philanthropic community should foster creative implementation with additional support for organizing efforts, effective management, and active technical support. Crafting integrated, catalytic, performance-oriented ARRA projects is hard. Weaving ARRA’s rigid, disparate programs into something coherent requires much more time and administrative effort than simply executing single programs mechanically. And yet, little or no stimulus resources are now available to support the organizing efforts needed to work out new, more catalytic responses. Therefore, modest added resources should be mustered to help local collaboratives defray some of the research, project planning, grant application, and start-up costs associated with creative implementation. Such a provision could come from Congress, agencies’ discretionary resources, or the philanthropic community. In any event a modest pool of support-funding or gap-financing for leading-edge ARRA projects would complement moral encouragement with material support.
  • The administration, grant makers, and other relevant organizations should facilitate network building to disseminate learning and innovation in a structured way. Finally, the White House, federal agencies, grant makers, and the private sector should collaborate with metro innovators to create a physical and virtual metro innovations forum among urban and regional communities, local officials and federal agencies. Aimed at maximizing the impact of ARRA, the new forum could be tasked very specifically with fostering innovation in metro areas; identifying and disseminating best practices in ARRA implementation; identifying needed policy adjustments; and forging a new model of governance and partnership between
    the federal government and metro areas. At present, much creative work is going on in isolation. By bringing online a focused metro innovations network, the cause of recovery would gain a potentially powerful learning community that could at once build local capacity, spread innovation, and educate the federal government on needed change.

The Bottom Line

The success of the recovery act will depend on how well it helps leaders in American metropolitan areas respond to the pain being visited on communities by the current recession. Supporting and multiplying the cadre of creative and determined metropolitan leaders working to deploy recovery resources in high-impact ways should be a top priority of federal recovery implementation going forward.


EVENTS                                                                               [Table of Contents]


Research and Entrepreneurship in the Knowledge-Based Economy

Milan, Italy, 7-8 September, 2009
Knowledge creation and management has been widely recognized as the main driving force for the economic growth of advanced economies. In the knowledge-based economy, learning, knowledge, research and human capital are key variables in the development of firms, sectors and countries. The increasing importance of the knowledge-based economy leads to a growing number of challenges for the actors involved: the need to integrate and coordinate research, a better definition of actions and the search for the right instruments to tackle the cognitive and management aspects of the processes and to evaluate outcomes and effects. Within this framework, the conference aims to create an opportunity for presentation of current research in the field and to open a space for debating on the impact of investments in research and human capital on firms, sectors and countries in the knowledge-based economy, and on the role for public policy. Keynote speakers include: Giovanni Dosi, Dominique Foray, Franco Malerba, Pascal Petit and Rehinilde Veuglers.

Strengthening the European Way: Regional Cluster Cooperation for a Wider Perspective on Innovation Policy

Linz, Austria, 9-10 September, 2009
Beginning in September 2006 eleven regions of old, new and associated European Member States came together in the European project “Central & Eastern European Cluster and Network Area”. All the members - Austria (Upper Austria, Lower Austria, Salzburg, Tyrol), Hungary (West Pannonia), Czech Republic, Italy (South Tyrol), Poland, Slovenia (Podravje Region), Slovakia and Croatia – cooperate in developing jointly our future innovation and cluster policy in the areas of economic strengths. The final conference of the Inno-Net project "CEE-ClusterNetwork" will take place in Linz, Austria. Many topics will be addressed, such as the role of clusters in times of economic changes, European innovation policy for a prosperous Europe, strategic framework and implementation of trans-regional Cluster Collaboration, and recommendations for the future challenges of cluster policies.

4th European Conference on Entrepreneurship and Innovation

Antwerp, Belgium, 10-11 September, 2009
n the light of the European Lisbon goals, the importance of the conference topics cannot be underestimated. Entrepreneurship and innovation should be the driving force in the transition of the Western economies towards knowledge-intensive economies – a necessity to maintain our current living standards. Knowledge creation and dissemination to society are indispensable to advance into the next era. The conference welcomes academics, researchers and industrial delegates to join this innovative program.

Technopolicy - Shaping Science-Based Clusters: Creating a Joint Regional Agenda

Wageningen, The Netherlands, 24-25 September, 2009
Since the cluster concept was introduced, it has rapidly attracted the attention of governments, consultants, and academics. Many governments and industry organizations across the globe have turned to this concept as clusters enhance the capability for innovative conversion of science and technology into products, services and new businesses growth. Nowadays, clusters of existing and emerging science-based activities have been shown to be crucial factors in shaping the economic winners and losers of the first half of the 21st century. This conference asks: how far have we come in turning this paradigm into practice? What models have been developed so far? What is the role of knowledge institutes and other actors in the field? To what extend can public policy influence the different processes?

Cities and Public Policy

Toronto, 24-25 September, 2009
What are the policy challenges in Canada's cities? What issues do they face? Today more than 80% of Canadians live in cities - what do we want these places to be? The Institute of Public Administration of Canada and the Public Policy in Municipalites project are hosting this conference. Public sector leaders, experts, policy makers, associations and companies will discuss Canadian cities and the public policies that are shaping their future. Major issues for cities and citizens include: opportunities for stimulus package investments; sustainable development and new urban design; how provincial and federal governments balance urban-rural tensions; multilevel governance and cities.

Creating the Future Through Science and Innovation: Atlanta Conference on Science and Innovation Policy 2009

Atlanta, 2-3 October, 2009
Science and innovation are aimed at change—new knowledge, new techniques, and fresh approaches to addressing the major challenges facing humanity. The 2009 Atlanta Conference on Science and Innovation policy will focus on ways that science and innovation policies can shape the future by setting goals such as safety, economic security, improved health, and environmental quality and by designing programs to reach these goals.

Learning Clusters: 12th TCI Annual Global Conference

Jyvaskyla, Finland, 12-16 October, 2009
Can clusters be learning organizations? How can learning clusters promote competitiveness for businesses and the regional economy in times of constant change? What are the disciplines of successful and dynamic clusters in the knowledge economy and network society? The 12th TCI Annual Global Conference aims to raise awareness and stimulate discussion of these issues in order to inspire sustainable clustering actions and better futures in clusters, businesses and regions.

Creative Spaces + Places: The Collaborative City

Toronto, 28-30 October, 2009
Creative Places + Spaces is one of the world's leading forums on creativity. Under the theme of 'The Collaborative City', this year's event will engage global perspectives on collaboration and connect them with local change makers. Come meet some of the most creative thinkers in Toronto's exploration of the art and science of collaboration.

Global Recession: Regional Impacts on Housing, Jobs, Health and Wellbeing: Call for Papers

London, UK, 27 November, 2009
In recent years, issues of health and wellbeing have come to the fore in much public debate and policymaking. These related topics appear across a number of agendas and are significant elements in employment, housing, social inclusion, and social policy fields as well as under their own strategic and delivery areas. Not only do health, health service delivery, deprivation, happiness, incomes and wealth vary across countries and national boundaries, but also there are often strong regional and indeed local and neighbourhood differences. Although there is an established and well developed research landscape in these areas, they are often bound within particular disciplines so that other related interests are unaware of their existence and relevance to their own needs. As the global economy has entered a period of prolonged recession and uncertainty, it is timely to ask questions about the implications for people’s lives and livelihoods. The Regional Studies Association Winter Conference 2009 on Health, Housing, Jobs and Wellbeing presents an opportunity to discuss and debate these issues, to establish the research requirements and to address the concerns of practitioners and policymakers. The conference is keen to attract papers and sessions which address a broad active research and policy agenda, including contributions from any discipline which can offer insights at local and regional levels.

Entrepreneurship and Growth: The Role of Policy Reforms

Washington, DC, 19-20 November, 2009
This conference will address several topics such as the causal effects of institutional, regulatory, and fiscal reforms on entrepreneurial activity; the effects of financial, operational, and management constraints on entrepreneurship and policies that help alleviate these constraints; and the role of entrepreneurship in economic growth and development.

Stimulating Recovery: The Role of Innovation Management

New York, 6-9 December, 2009
Organised by ISPIM and hosted by The Fashion Institute of Technology this symposium will bring together academics, business leaders, consultants and other professionals involved in innovation management. The symposium format will include facilitated themed sessions for academic and practitioner presentations together with interactive workshops and discussion panels. Additionally, the symposium will provide excellent networking opportunities together with a taste of local New York culture.

>SUBSCRIPTIONS & COMMENTS                                                 [Table of Contents]

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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.

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