Assessing Impacts of Innovation and Business Support Programs Brian Barge PhD The Evidence Network Waterloo, ON 26 February 2015

This Presentation What is innovation? “…When the tide goes out…” (Warren Buffet) How innovation is shaping our future How innovation is stimulated Are we getting good value for our money? The Evidence Network assesses impacts of innovation and business support programs 2

Innovation Definition Implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, work- place organization or external relations. Organization for Economic Co-operation and Development 3

“…When the tides goes out…” “When the tides goes out, you get to see whose swimming naked” (Warren Buffet) A Tale of Two Economies: Jim Balsille, Globe and Mail, February 23, 2015: “The sudden drop in oil and mineral prices along with the ensuing lowering the Canadian dollar exposes our economy and seriously threatens our high standard of living.” “The commercialization of innovation is where wealth is being generated in today’s global economy.” 4

How Innovation is Shaping our Future Some Examples: SO 2 Emission Reductions 5

How Innovation is Shaping our Future Some Examples: SO 2 Emission Reductions 6

How Innovation is Shaping our Future Some Examples: SO 2 Emission Reductions 7

How Innovation is Shaping our Future Some Examples: SO 2 Emission Reductions 8

Stimulating Innovation Innovation enablers, or innovation intermediaries have at least part of their mission to support business success. Science and technology parks; business parks Research and development institutes, networks, consortia Business accelerators, incubators University-industry technology transfer offices Economic development organizations Boards of trade, chambers of commerce Industry or trade organizations R&D tax credits Business support and financing programs (BDC) Government funding programs 9

Some Kitchener-Waterloo Innovation Enablers 10

Measuring Performance and Impact 11 Companies – Revenues – Profits – Valuation, etc. Universities, educators, etc. – Publications – Patents – Teaching evaluations, etc. Innovation enablers – ???????

The Evidence Network (TEN) 12 TEN is an independent third-party assessment firm We focus exclusively on impact assessments of organizations and programs that support business innovation Rigor of academics; practicality of industry Born Global

Our methodology is based upon an in-depth understanding of innovation and is systematically used in practice Recognized by Center for American Progress, Council of Canadian Academies, marquee customers, and others 13 Customers: Canada, US, Europe, China

Recognized by Center for American Progress, Council of Canadian Academies, marquee customers, and others Our impact assessment methodology is based upon an in-depth understanding of innovation and is systematically used in practice 14 Recognition

Example projects National Research Council of Canada - Human Health Therapeutics Innovacorp Zhejiang University Science Park University of California, U.S. – CITRIS (Center for Information Technology Research in the interests of Society) Finland – Tekes, several; Ministry of Employment and the Economy (all leading business support programs in Finland, with partner) Genome BC 15

How do intermediaries impact companies? 16 Innovation IntermediaryClient Company Mission Impact on company performance Services Impact on company capabilities See Dalziel, M. & Parjanen, S. (2012). Measuring the impact of innovation intermediaries: A case study of Tekes. In Melkas, H. & Harmaakorpi, V. (eds.) "Practice-based innovation: Insights, applications and policy implications", Springer.

17 Technical Institute 100% positive impact 100% 91% Impact on Company Capabilities

18 Technical Institute 74% positive impact 86% Impact on Company Performance

19 Large incubator/accelerator Impact on Company Capabilities - Tenure

Benchmarking Impact on Revenues 20 Average $100,000 $1 million $10 million $100 million Meaningful reliable data to feed into economic impact estimators.

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Thank You 22