Expanding the concept of innovation

The need for a uniquely Canadian innovation policy — and science-driven solutions for the oil sands — highlighted the fourth annual Canadian Science Policy Conference as more than 350 policy makers, industry practitioners and other experts gathered for the first time in western Canada to discuss new approaches for improving Canada's sagging productivity and competitiveness.

The conference heard several calls to expand the concept of innovation and innovation policy beyond a narrow S&T focus to include all inputs to innovative activity. The need for strong science was rarely questioned but several speakers called for an innovation policy that is market-pull rather than technology-push.

"My perspective on innovation policy as an extension of science and technology policy is changing ... Market conditions drive innovation policy," said Dr Bob Fessenden, a former DM of several Alberta ministries and most recently DM for the Premier's Council for Economic Strategy. "Innovation policy should focus more on pull. We also need strong science but don't confuse the two. Universities need to attract and disseminate knowledge and they need leading-edge research to achieve that."

Fessenden spoke at a plenary session to debate the need for a uniquely Canadian science, technology and innovation (STI) policy, informed by a recent position paper on the subject by Dr Richard Hawkins, a professor and Canada Research Chair in the Social Context of Technology at the Univ of Calgary (R$, March 15/12). That paper has been reformulated into a new document — Canada's Future as an Innovative Society: A Decalogue of Policy Criteria — that positions the argument for a coordinated, evidence- and systems-based approach to Canadian innovation.

"The body of knowledge on innovation is immense but it's wedded to a 1940s-1950s view and is stuck on technology policy," said Hawkins, referring to a similar argument made by Univ of Toronto president Dr David Naylor in a recent issue of Policy Options. "We need a whole-of-government approach and we need to treat all industries as knowledge industries."

For Paul Clark, a veteran industrial R&D manager and former VP R&D at NOVA Chemicals, a holistic view of innovation is far preferable than narrow view that dominates today.

"We need to innovate along the whole value chain. Right now we have a rip it and ship it mentality," he said.

The explosion in oil sands development is a prime example of how market conditions (complicated by environmental concerns) have driven the use of STI in northern Alberta. Made economically feasible due to the development of steam assisted gravity drainage (SAGD) technology in the 1970s, the oil sands are currently the focus of massive investment ($55 billion in 2012) to meet growing energy demand which is expected to double by 2050.

oil sands development and decarbonization

The growth of the oil sands have generated worldwide concern over the environmental impact of extraction, processing and transportation, leading many policy makers to push for the parallel development of alternative energy sources.

"We need to decarbonize through innovation and wealth creation," said Dr Jatin Nathwani, executive director of the Univ of Waterloo's Institute for Sustainable Energy. "The drivers of change will be variable generation, infrastructure renewal, electric vehicles and environmental concerns (but) the holy grail will be large-scale storage for renewable energy … We need a carbon price. If it's not on the table, we're wasting our time."

Dr Tim Weis, director of the Pembina Institute's renewable energy and efficiency policy, agreed that a carbon price is essential for alternative energy development to move forward in conjunction with the oil sands.

"It has to be tied to carbon price. Regulations are also required," said Weis. "The federal government is taking a sector-based approach but there's nothing impacting consumers … What do Alberta and Canada want to do when they grow up. We're wasting our royalties and not developing a war chest."

For Dr Eric Newell, former CEO of Syncrude Canada Ltd and chancellor emeritus, Univ of Alberta, technology is the key to the successful and environmentally responsible exploitation of the oil sands. He pointed to government funding, international collaboration and the use of R&D consortia, including the recent creation of Canada's Oil Sands Innovation Alliance (COSIA), as examples of mechanisms to drive technologies into oil sands production and processes.

"There's been a huge emphasis on commercialization and applied research to realize economic benefits but Canada has not done well. There has to be a continuum to science," Newell said during a conference keynote session. "The big grand challenge for the oils sands and fossil fuels industry is, how do we continue to grow and make absolute reductions in emissions. Technology is the key."

For Andrew Sharpe, executive director of the Centre for the Study of Living Standards, the oil sands sector has proven to be highly innovative while its track record of achieving significant productivity gains has been weak, despite the massive wealth the industry has generated.

Sharpe asserted that the oil and gas sector has done "extremely badly" on the productivity front — both labour productivity and multi-factor productivity.

"Alberta has had the lowest productivity growth since 2000. In Alberta is 0.2% a year compared to 0.9% a year for Canada," he said, adding that, as the price of oil goes up, lower quality oil and gas becomes more viable and the industry simply hired more workers.

CSPC back to toronto next year

When CSPC returns to Toronto next year, it will have a new strategic plan, a larger vision and a stronger emphasis on youth.

CSPC board chair Dr Janet Halliwell outlined the changes occurring behind the scenes, including a new board of directors which will be expanded in the coming months and a new action agenda that balances supply push and demand pull.

Halliwell said the hope is to establish a national collaborative network, develop mentorship, internship and fellowships programs for youth, increase engagement with industry and develop stronger indicators and a sustainable business model. She provided a science policy overview with five drivers of change: economic circumstances, globalization, demographics, grand challenges and technology.

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