Innovation and Sustainable Development
Gilbert Parent, P.C.
This article is based on a speech delivered on behalf of the Honourable Gilbert Parent, P.C., Ambassador for the Environment by the Honourable Lucienne Robillard, Minister of Industry and Minister responsible for the Economic Development Agency of Canada for the regions of Quebec at GLOBE 2004 Opening Plenary, Vancouver, BC, on March 31, 2004.
I WELCOME THIS OPPORTUNITY To speak about sustainable development and innovation. There was a time, not too long ago, that it would have been uncomfortable for an Industry Minister to stand up in a room full of business professionals and advocate for eco-friendly business practices. It would have been a "hard sell" for many people. Fortunately, attitudes have changed over the past two decades.
Almost 80% of CEOs polled in a recent global survey agreed that sustainability is vital to profitability. Leading companies are already integrating sustainable development into corporate strategy and operations. To me, this shows that the debate over the need for sustainable development is now largely over. People recognize the clear and compelling environmental and health imperative. Equally important, they understand the increasing competitive advantage offered by eco-friendly technologies and practices. Your presence here today -- and the success of your respective companies testifies to this fact.
The question that we now must confront - together - is how do we move forward most effectively and build on the successes of the past decade? How do we continue to reinforce the link between economic success, environmental health, and a better world? How do our countries and firms realize the enormous economic potential linked to green practices and eco-friendly technologies?
In the aim of addressing these questions, Industry Canada - like other government departments -recently tabled its third Sustainable Development Strategy. Our two earlier strategies focussed on making the business case for sustainable development and enabling firms to develop and implement tools, practices and technologies. They were based around the themes "Learning and Discovery" and "Leadership and Partnership". I am pleased to say that we have made significant achievement in these areas.
Not surprisingly, our new strategy is based around the key theme - of "innovation and results". As the Prime Minister himself frequently notes, innovation will be the key to success in the new economy. Ideas and discoveries will be the currency of the 21st century.
We believe that new technologies hold one of the keys to building a greener and more prosperous future for Canadians and for the world as a whole. But new technologies and new ways of doing business don't just happen by themselves. We must create a climate conducive to innovation. We must nurture new ideas. And we must create mechanisms to bring new technologies out of the laboratory and into the marketplace.
Building the future requires a conscious investment in time and resources. It requires patience. And in some cases, it requires faith. It also requires a clear and strategic vision - one that incorporates business, academics and governments working together. The Industry Canada strategy has such a vision. It sets out three key objectives for Industry Canada for the coming years.
First, we want to improve Industry Canada's own sustainable development practices. We want to lead by example by reducing resource consumption in our operations and integrating sustainable development into our decision making processes.
Second we want to raise awareness and help industries, institutions and communities embrace corporate responsibility and sustainability practices.
Finally, we want to encourage the development and commercialization of innovative practices and new technologies.
Given the theme of this plenary, I would like to focus attention this morning on the final point - on innovation and commercialization and on how we intend to see that Canadian firms continue to be world leaders in the "business of the environment."
Canadian Businesses: At the Forefront of Innovation
Technological progress has always driven societal change and human development. From the discovery of the printing press to the creation of the steam engine to the development of the Internet - new technologies have a profound transformative power.
They make our business processes more effective and efficient. They increase our productivity. They help bridge the distance between people. On a more profound level they shape our perception of the world around us and the world's perception of us. Ultimately, they contribute to a better quality of life for the next generation.
Fortunately for Canada, our country has always been a nation of inventors and innovators. Canadian firms rank among the world's best in developing and applying new ideas and new ways of doing business. And nowhere is this more apparent that right here in British Columbia. Such a skill is critical in a competitive global marketplace where success is increasingly contingent on the ability to identify new products, new niche markets and more effective and efficient business processes.
And, I am proud to say, that success stories abound here in Canada particularly in areas related to environmental technologies and sustainable development.
Here in Vancouver we have Ballard, which has become virtually synonymous with fuel cells worldwide. There are numerous other examples as well, such as Novex couriers, DynaMotive and Westport Innovations, all of whom have proven to be innovators in their respective fields.
In Ottawa, Iogen is increasingly recognized as a world leader in the development of biomass to ethanol technology. This process offers twice the greenhouse gas reduction benefits of conventional ethanol, makes ''use of low-value agricultural residues, and enhances rural economic development.
Of course, we need look no further for examples of leadership than right here on this panel. Alcan has long identified sustainability and environmental concerns as central to their growth and ability to compete.
Each of these firms has embraced innovation. Each, in their own way, has made a contribution to a greener Canada. And each concretely demonstrates that environmental responsibility and bottom-line performance are not mutually exclusive. More, they are proving to investors and to the business community at large that green practices and products are a competitive advantage.
We need to build more of these success stories here in Canada. And while it is largely up to businesses themselves to develop the ideas and strategies for success, governments do have a critical support role to play. We all have a stake in seeing improvements in economic success and environmental health.
A Commitment to Innovation
In this context, the Government of Canada has developed an ambitious and comprehensive approach to supporting research and development, across the country - particularly in areas such as environmental technologies. Over the past several years, the Government has made significant investments in renewing its research base. In fact, since 1997, it has invested over $13 billion in research taking place in universities and other institutions across Canada.
This funding has gone to a wide range of projects and organizations. Right here in Vancouver, for example, the National Research Council of Canada (NRC) operates the Institute for Fuel Cell Innovation. The Institute is a research partnership of industry, university and government stakeholders and has been a catalyst in building Vancouver's prominence as a cluster of hydrogen and fuel cell expertise.
Another example is Genome Canada which is supporting innovative research on the properties and function of genes in a wide range of organisms. One research project is investigating the genetic makeup of microbes that play a role in bioremediation, a biologically driven process for breaking down toxic substances such as coal tar and PCBs.
Technology Partnerships Canada (TPC) is yet another important funding program, which has provided upwards of $400 million in strategic investments to help innovative firms directly involved in environmental technology develop their ideas and bring them to market.
We have enjoyed considerable success and we are determined to build on this. This was made clear in the recent federal Budget which dramatically increased research funding. It also placed a special emphasis on supporting "green technologies". All told, the Government will invest at least $l billion in environmental technologies over the next seven years. This is exceptionally good news for Canadian business and for all Canadians.
And while federally-funded research is an important part of the innovation equation, it is not and cannot be the sum total of the R&D taking place in the country. As I mentioned at the outset, companies must bear the bulk of the responsibility for creating and driving new ideas to market.
We do recognize, of course, that it is sometimes difficult for smaller businesses to get access to the capital that they need to innovate. There are many great ideas out there that will not make it from the drawing board to the factory floor for lack of financial support. As the Finance Minister noted in the Budget speech "Financing is the oxygen of entrepreneurship."
With this in mind, the Government has moved forward to enhance access to venture capital financing. To expand venture capital, the Government will provide $270 million in new financing for promising start-up companies. When combined with private sector investments, this is expected to yield a total of $1 billion in early-stage financing. This money will seed promising new enterprises, with priority given to enabling technologies, such as environmental technologies, bio-technology and nano-technology.
Challenges: Bridging the Commercialization Gap
I believe that the numbers I have just quoted demonstrate a clear commitment to innovation. But I do not harbour any illusions that money alone is going to assure that we get cleaner engines, or better sewage treatment products or better anti-pollution technologies. Good research alone will not automatically translate into a healthier bottom line or a cleaner environment.
Simply creating knowledge isn't enough. New technologies need to be implemented if they are to deliver on their promise. We need to take our products from the laboratory to the marketplace.
I spoke earlier of our vision for innovation. Commercialization is a cornerstone of that vision.
In many respects, what is required is a new way of thinking in our universities and research institutions. For too long the science faculties and the business schools have existed as two different worlds. In countries like the United States there are already long-standing and sophisticated relationships between the private and academic sectors. We need to forge similar linkages. We need to bring our brightest young minds together with our most savvy entrepreneurs and investors.
The example is being set right here in Vancouver. The University of British Columbia and Simon Fraser University rank number one and two in patents awarded per million dollars of research. Simon Fraser also creates the most spin-off companies as a result of research at the school. Through our investments in universities and research institutions, we hope to see this type of performance improve across Canada.
Bridging the commercialization gap will also require building capacity within the private sector itself. Canada's private sector firms need to become more effective receptors of new products and ideas. Building such capacity is one of the great challenges we are going to need to face together in the years ahead.
Fortunately, we are enjoying some success - and some international best practices are in fact Canadian practices. The National Research Council manages the very successful Industrial Research Assistance Program to help small and medium sized businesses in developing, using and commercializing new, innovative technologies and processes. IRAP is widely acknowledged as one of the best programs of its kind in the world.
I am confident that we can continue to build on this, and other successful initiatives, and ensure that when people think of green products they think of Canadian products first.
ABOUT THE AUTHOR
Gilbert Parent was first elected to Canada's House of Commons in 1974. He was subsequently re-elected five times. As a parliamentarian, Mr. Parent represented Canada at the United Nations and at several Congresses of the International Labour Organization. He served as Parliamentary Secretary to the Ministers of Veterans Affairs, Labour, Sports and was Opposition Critic for Labour and Youth. In 1994, Mr. Parent was elected Speaker of the House of Commons and re-elected to the position in 1997.
Mr. Parent was appointed Canada's Ambassador for the Environment and Sustainable Development in December, 2000. As Ambassador he participates in and speaks at national and international conferences and trade shows related to the environment, sustainable development and renewable energies. He often heads Canadian delegations to United Nations' meetings.
He meets with relevant Ministers, ENGOs, NGOs, and industry regarding environmental technologies, visits environmental sites such as wind farms, fuel-cell companies, water treatment facilities and mines. He reports to Cabinet, and other relevant bodies, on what he sees and hears.
Ambassador Parent chaired the Canadian National Secretariat Round Table Consultations and the Aboriginal and Industry Consultations in preparation for the World Summit on Sustainable Development. He was a member of Canada's delegation to the WSSD in Johannesburg and serves as a member of the International Advisory Board to the American Council on Renewable Energy.