Ron Freedman

Leveraging creative destruction

Turning recession to Canada's S&T advantage

By Ron Freedman

Canada's economy has entered its greatest period of "creative destruction". Whether the process is entirely destructive, or whether it sows the seeds for future wealth creation is at least partially in our hands. The writing is on the wall. For the foreseeable future the economy will contract. Otherwise viable science and technology companies will fail. Inevitably, many talented scientists and engineers will lose their jobs before the worst is over, through no fault of their own.

The downturn represents a personal tragedy for those affected. It also means a loss of productive capacity and future potential for the economy. But with the right supports in place, our universities, government labs and even many surviving companies can lay the foundation for an accelerated post-recession economic recovery, and help to mitigate the misfortune of the unemployed.

History Repeated

There is a useful lesson from the collapse of the Soviet Union in 1991. At that time a large number of senior Soviet scientists emigrated to Canada. They had no job prospects but immense talent and experience. Some were taken in by Dr Rod Tennyson, then head of the University of Toronto Institute for Aerospace Studies (UTIAS). Although Rod had no resources to pay them, he was able to supply them with lab space and research partnerships with UTIAS staff and students and some companies. He cobbled together small sums for materials and supplies. Over the next few years they worked on high-level science and engineering projects.

During their time at UTIAS, the scientists' superior experience and skills enriched the organization; there was a substantial transfer of technology and "brain gain" to the Institute. Some exciting new technologies were also developed and transferred to industry. Over the next few years the scientists became integrated into the larger workforce. Some found jobs in industry, some created their own companies, and some found employment in universities. All this was achieved at little direct cost to UTIAS.

Today, the UTIAS experience is about to repeat itself, but on a much larger scale. Instead of a few hundred immigrant Soviet scientists, the new itinerant labour pool will consist of thousands of laid-off Canadian scientists and engineers. But the opportunities are comparable, if we play our cards right. We have an unparalleled opportunity to convert the economic downturn into a new age of creative destruction. We can build on the un-planned but successful UTIAS experience, but in a more focussed and better-organized way.

The opportunity is to provide newly unemployed scientists and engineers with a chance to work in our universities, federal labs, and surviving S&T companies, alongside some of our best established academic researchers and up-and-coming students. The result would be a two-way flow of knowledge that would enrich both parties. Some of the activity would inevitably lead to direct economic outputs and impacts: new companies, new products and processes, new exports and jobs. The partnership would enrich the host lab or company. It would provide the unemployed scientist or engineer with dignified employment and enhance their future economic prospects.

Partnership for Future Prosperity

What is called for is a program that will quickly open the doors of our university, hospital and government labs to laid-off scientists and engineers who have a bright idea they want to exploit or skills they want to enhance, and who need access to expertise, facilities and equipment to do so. We might designate these individuals "Adjunct Researchers" — people who have completed their university training, have real-world experience, and who want to develop their product, process or service ideas in a lab setting ... or simply hone their skills to enhance their job prospects. (Incidentally, we should expand our notion of the host "lab" to include non-traditional S&T facilities such as social science and humanities and art and design-oriented research centres.)

We can also extend the Adjunct concept from publicly funded labs to the many private research-oriented companies that will survive the downturn — not only SMEs but large companies as well. Why not place some of the Adjunct Researchers with Canadian companies that could benefit from having additional S&T hands and the new ideas they would bring with them?

The resources and delivery channels are mostly in place. The labs and equipment are already up and running. While they may need modest funds to pay for the operating expenses associated with additional non-salaried researchers, these could be paid for through a special appropriation from the three granting councils. NRC's IRAP might be able to use some of its new resources to create a special program that would mirror its Youth Employment Strategy program; to, in effect, extend the YES model to unemployed mid-career scientists and engineers.

The Adjunct Researcher's "salary" could come from a combination of EI payments, personal resources (e.g. severance pay) or an expanded YES-style IRAP program. Fortunately, IRAP is already empowered to provide additional salary support to the Adjuncts if they have a viable product/service idea, and provided they incorporate a company to do so. Provincial governments could also chip in. Undoubtedly, it would help if EI regulations were re-formulated to allow the Adjunct to continue to receive payments for a longer period of time (e.g. 18 months) until they find their footing. While they are important, the details of an Adjunct program can be quickly worked out.

Let's Get Moving

Our country faces an unprecedented economic challenge. But this challenge also represents an extraordinary opportunity, if we play our cards right. We need to move at the speed of light (or its bureaucratic equivalent) to establish a coordinated Adjunct Researcher program that will put our talented unemployed and soon-to-be-unemployed scientists and engineers to work in our publicly funded labs. The challenge and the opportunity are here today. We need all of our public and private institutions and the tenured individuals working in them to step up to the plate. Let's get moving. Now.

Ron Freedman is a partner with The Impact Group and co-publisher of RE$EARCH MONEY.