Research and Innovation: A central ingredient in economic diplomacy

By Dr Alan Bernstein

The launch of the Government of Canada's new Global Markets Action Plan last year has received much attention for its implications for Canada's foreign policy. The plan aims to focus Canada's diplomatic efforts towards economic diplomacy, promoting Canadian exports through an ambitious trade policy as a priority foreign policy objective.

Analysts of the plan have focussed on its apparent move away from Canada's historic emphasis on peacekeeping, foreign aid and humanitarian efforts. Overlooked in much of the discussion to date is the plan's recognition that Canada must significantly step up its commitment to research and innovation. Historically, Canada's economy has benefited from trade in our abundant supply of natural resources and proximity to the US, the world's largest economy. As a result, we have prospered despite low and declining business-led innovation. Today, it is widely agreed that Canada's future prosperity will depend on innovation and creativity as the predominant engines of economic growth.

"These megatrends have changed the game," warns the Council of Canadian Academies in its report Paradox Lost. "Canadian business is, for the most part, ill-prepared to play." As the report (and many previous reports) notes, while our university research is strong and highly regarded internationally, that strength is not being translated into business innovation. Canadian businesses spend less than half on innovation as US firms, and that level is dropping.

Here are three suggestions on what needs to be done to ensure long-term prosperity in an increasingly competitive, innovation-led and fast-moving world.

Invest in talent

In a world in which research, innovation and ideas flow freely and rapidly across borders, Canadian businesses must invest in their own research and to do that they need a critical mass of the best research talent with access to global knowledge flows. Ideas generated in one company, or one university, rapidly grow in value when combined with ideas generated elsewhere. To be successful, innovation-driven organizations are constantly looking globally for synergies and complementary talent.

Only researchers who naturally travel in these global research networks have access to the latest ideas, trends, and emerging technologies. Canada's embassies and consulates also must ensure that they have the science and innovation capacity to help assess where the next innovation is emerging locally and where the best potential for partnerships lies.

We are rapidly moving beyond a time when pipelines move only oil and gas. The 21st century is characterized by pipelines that move ideas. If we are going to succeed economically, we must ensure that we have the research talent and innovation infrastructure needed to be part of this dynamic new world. Accordingly, we have to make it a national priority to attract entrepreneurial, scientific and creative talent. The recent announcement of funds for MITACS to attract students from abroad is an important first step.

global research networks

The global research landscape is rapidly changing, moving from small groups in a single institution to increasingly large teams dispersed around the world. It is critical that Canadian universities and businesses be at the centre of these global research networks. To put the magnitude of change in perspective, China now produces 16% of the world's scientific papers, a threefold increase in just the past 15 years.

According to a 2011 study published in the journal Nature, the quality of China's research is also increasing as is the number and size of global collaborations amongst researchers across the world. That study concludes that "institutions that do not form international collaborations risk progressive disenfranchisement and countries that do not nurture their talent will lose out entirely."

It is a curious fact that Canadian thinkers, from McLuhan to Tapscott, have led the world's thinking about this new global perspective, from the "global village" to a world "where only the connected will survive". For Canada to succeed in this new economic world, we must ensure that, at a minimum, our researchers are part of the very best international global research networks if we want access to the latest global knowledge. Inclusion in these networks depends on the quality of one's contributions, as noted in Paradox Lost. When Canadians are at the centre of global research and innovation networks, they build Canada's brand for innovation, a key ingredient in our ability to sell our products abroad; people buy Swiss watches because they are Swiss.

Invest in Young People

Young Canadians are increasingly globally oriented. They see themselves as global citizens and are looking to their country to forge the global coalitions and partnerships necessary to address the significant challenges the world faces. They seek opportunities that match their global and idealistic aspirations with practical problem solving. Canada needs to create those opportunities.

Our goal as a nation should be to create an environment that makes us the country of choice for the world's brightest young people. To do that, we must encourage and reward risk-taking, provide long-term support for research and innovation, and ensure that our cities are liveable and dynamic. In this new world of ideas, innovation and global networks, it is the country with the best-educated and most innovative young people that will ultimately be the most successful.

Dr Alan Bernstein is president & CEO of the Canadian Institute for Advanced Research.