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

Assessing Impacts of Innovation and Business Support Programs

Brian Barge PhDThe Evidence NetworkWaterloo, ON26 February 2015

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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

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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

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“…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.”

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How Innovation is Shaping our Future

Some Examples:SO2 Emission Reductions

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How Innovation is Shaping our Future

Some Examples:SO2 Emission Reductions

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How Innovation is Shaping our Future

Some Examples:SO2 Emission Reductions

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How Innovation is Shaping our Future

Some Examples:SO2 Emission Reductions

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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

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Some Kitchener-Waterloo Innovation Enablers

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Measuring Performance and Impact• Companies– Revenues– Profits– Valuation, etc.

• Universities, educators, etc.– Publications– Patents– Teaching evaluations, etc.

• Innovation enablers– ???????

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The Evidence Network (TEN)

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

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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

Customers: Canada, US, Europe, China

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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

Recognition

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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

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How do intermediaries impact companies?

Innovation Intermediary Client Company

MissionImpact on company performance

ServicesImpact oncompanycapabilities

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.

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Technical Institute

Technology PlanningTechnology Expertise

Technology Development

Business Expertise

Funding

Hiring HQPPromotion Opportunities

Linkages to Companies

Go-to-market Expertise

Linkages to Networks or Governments

Linkages to Universities

Negative impactNo impactSome impact

Significant impactVery significant impact

100% positive impact

100%

91%

91%

Impact on Company Capabilities

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Time to Market

Ability to Innovate

Investments Received

Change in Annual RevenuesNew Customers

Applied R&D Investments

Change in Employment

Negative impactNo impactSome impact

Significant impactVery significant impact

Technical Institute

74% positive impact

86%

Impact on Company Performance

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Business Expertise

Business Linkages

Research Linkages

FinancingBusiness Information

Promotion and Influence

Technology Capability

<.5 years .5-1.5 years 1.5-2.5 years >2.5 years

Very sig-nificant impact

Significant impact

Some impact

Large incubator/accelerator

Impact on Company Capabilities - Tenure

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 234

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Intermediary or Program

Log

(Impa

ct o

n Re

venu

es)

Benchmarking Impact on Revenues

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Average

$100,000

$1 million

$10 million

$100 million

Meaningful reliable data to feed into economic impact estimators.

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Thank You