1. The trouble with innovation: Why cleaning up the environment is going to be a lot more challenging than we think Richard Hawkins PhD, Professor, Science, Technology and Society Program, University of Calgary, THECIS Senior Fellow, and Fellow of the Institute for Science, Society and Policy (ISSP), University of Ottawa rhawkins@ucalgary.ca Big Ideas for Sustainable Prosperity University of Ottawa 28 April 2014

2. Two conceptual challenges for enhancing sustainability through innovation Duality – innovation creates as many problems as it solves – Oilsands development is the single most significant Canadian innovation in 100 years Systems – innovation is not just disruption, it comes from organization, coordination and rule making – Predictability of process – Unpredictability of outcomes

3. What is innovation as a theory of welfare? A socio-economic outcome, not an input or artifact A heterodox phenomenon: non-routine – breakouts and breakthroughs A qualitative change: not in how much is produced, but in what is produced and how Generates growth by displacing existing sources of value – “creative destruction”

4. Some mental arithmetic Try thinking about innovation by eliminating the following concepts: – R&D – Commercialization – Start-ups – Venture capital – Intellectual property No theory of how innovation affects welfare is contingent on any of them

5. COMBINATION DISRUPTION TRANSFORMATION STANDARDIZATION New ideas New structures INSTABILITY New investment New industries STABILITY CONSOLIDATION DIVERSIFICATION ENTREPRENEURSHIP ? APPLICATION EXISTING PARADIGM NEW PARADIGM New risk The “Innovation System” and how it works

6. Current focus of “innovation” policy COMBINATION DISRUPTION TRANSFORMATION STANDARDIZATION New ideas Highest value INSTABILITY New investment New industries STABILITY CONSOLIDATION DIVERSIFICATION ENTREPRENEURSHIP APPLICATION New risk

7. Natural habitat for public policy COMBINATION DISRUPTION TRANSFORMATION STANDARDIZATION New ideas New structures INSTABILITY New investment New industries STABILITY CONSOLIDATION DIVERSIFICATION ENTREPRENEURSHIP APPLICATION New risk

8. The critical link is industrial policy: “State entrepreneurship” COMBINATION DISRUPTION TRANSFORMATION STANDARDIZATION New ideas New structures INSTABILITY New investment New industries STABILITY CONSOLIDATION DIVERSIFICATION ENTREPRENEURSHIP Industrial policy APPLICATION New risk

9. The function of innovation policy New ideas, technologies and paradigms Established structural industries Social, economic and industrial policy

10. What do virtually all major paradigm shifting innovations have in common? Intense public-private sector interaction Long-term strategic planning Large-scale transformative projects Large enterprise focus from inception Massive public investments and/or risk guarantees New rules to induce, mitigate and enforce change

11. Democracy is a conversation about innovation Innovation is all about heterodoxy Current perceptions of innovation have become a new orthodoxy A healthy open democracy looks to “The next orthodoxy but one”?