The Function of Applied Research in Ontario Colleges and Communities: An Economic Imperative September 30, 2015 Dr. MaryLynn West-Moynes

Economic imperative According to the Conference Board of Canada’s How Canada Performs: Innovation (September 2015): Canada has moved from a D to a C in innovation Gaps still exist in innovation capacity, innovation activity and innovation results Ontario received a B in innovation Though gaps exist in business enterprise research and development, patents, and labour productivity 2

Why colleges? “For many small and medium-sized businesses (SMEs), partnerships with colleges often provide the best opportunity to conduct applied research that helps businesses become more effective and create new jobs.” Linda Franklin, CEO, Colleges Ontario,

Mandate MTCU Binding Policy Framework To offer a comprehensive program of career-oriented, postsecondary education and training to assist individuals in finding and keeping employment; to meet the needs of employers and the changing work environment; and to support the economic and social needs of their local and diverse communities. In carrying out its objectives, a college may undertake a range of education and training-related activities including, but not limited to: a) Entering into partnerships with business, industry and other educational institutions b) Offering its courses in the French language where the college is authorized to do so by regulation c) Adult vocational education and training d) Basic skills and literacy training e) Apprenticeship in-school training f) Applied research (MTCU, CAAT, Binding Policy Framework, 2003) 4

Benefits for the labour market Graduates/employees who are doers, thinkers and leaders with the knowledge to solve practical problems Graduates have experience in broad research, big data, and commercialization Use of the resources available at the local college – e.g. equipment and people Available skills and expertise at the local community level Colleges can facilitate partnerships bringing business and community partners together Colleges are eligible for research funding 5

Job creation A recent report written by Colleges Ontario – Investing in prosperity: Helping small business innovate and create jobs (2012) stated the following: Ontario needs more researchers, especially technicians and colleges are the source of research and development technicians For Ontario to compete in the global economy, many more firms must become innovation leaders College graduates also play a critical role in implementing public priorities such as energy (47% of sector employment), healthcare (also 47% of sector employment), transportation, infrastructure, and regional and local development 6

Industry response In the report, Innovation Catalysts and Accelerators: The Impact of Ontario Colleges’ Applied Research (2010), the Conference Board of Canada stated: Ontario colleges have demonstrated that their applied research services can stimulate and accelerate the innovation activities of Ontario-based firms – especially SMEs, and By offering students and employees opportunities to improve their innovation skills, and by stimulating entrepreneurial ambition, college-business applied research collaborations are helping to develop a highly skilled, innovation-ready workforce 7

A snapshot In Ontario, in , there were: 750 companies working with Ontario colleges (Colleges Ontario, 2015) Over 600 Ontario college faculty engaged in applied research (Colleges and Institutes Canada, 2015) Nationally: 2,491 faculty and staff (e.g. industrial experts and technicians) engaged in applied research in , up by 8% from (Colleges and Institutes Canada, 2015) Across Canada, 32,093 students were engaged in applied research (Colleges and Institutes Canada, 2015) In Canada, colleges and institutes allocate $52 million to applied research – up 6% from (Colleges and Institutes Canada, 2015) 8

Research funding – a fraction Nationally, in , colleges and institutes received $207 million in external funding from the following sources, with a 12% increase over : Government of Canada: $85.1 million, increase of 19% Private sector: $78.3 million, increase of 9% Provincial and territorial governments: $40 million, up 11% International partners: $866,000, roughly ¼ of previous year Community service organizations: $792,000, almost double Foundations: $2.1 million, up from $587,000 in Municipal governments: $181,555, decrease of 42% (Colleges and Institutes Canada, 2015) 9

Issues and Opportunities Different approach/models among colleges – one size does not fit all Address government’s evolving mandate for applied research and innovation across the postsecondary sector to augment the traditional research model Insufficient sustainable research funding – advocate for more Labour relations – formalize involvement Quality criteria for degrees – demonstration of scholarly activity through research Demand by employers for labour market ready graduates – providing students with a research skill set to address industry needs 10

Final thoughts 1.Mandate 2.Value 3.Job creation 4. Economic imperative 11