A Private Sector View of
Canada’s Research
System
Ottawa
April 9, 2013
Tom Jenkins
Executive Chairman & Chief Strategy Officer
OpenText Corporation
Chair, Canadian Digital Media Network
Advisor to PWGSC, Canadian Defence Procurement
Chair, Review of Federal R&D Spending
Key Messages:
 Innovation is a global game – do not be
fooled by lower Canadian competitive
intensity
 Take advantage of the small size of Canada
and build collaboration better than others
 Change Management must be a distinctive
competence of your organization
The Three(1/2) Pillars in Canada
My Background on this topic:
Canada’s largest software company
©2012 OpenText
Built the Original “Google” in the mid 90s
based on
university
research
Jerry Yang CEO of Yahoo and Tom Jenkins CEO of Open
Text launch in 1995.
Built Archives Which Became the
“Deep Web” Inside Corporations
With Significant Global Reach
1 in 3 global Internet users use applications using
content enabled by this technology.
Slide 7
Copyright © Open Text Corporation 2008 - 2009. All rights reserved.
Defined Enterprise Content
Management and Authored Trilogy
Wrote a Book on Content in the Cloud
Available on Amazon or
Apple or
www.opentext.com
Wrote a new book on Big Data and the
Hidden Web inside the Firewall
Tom Jenkins
Available on
Amazon or Apple or
www.opentext.com
A guide book
on building
Enterprise
Applications
inside the
firewall
Innovation Strategy Reports
Innovation: What Needs To Change?
Be A Customer
Go Global
Go with the Flow:
Commercialization
Enlightened
Self Interest
is needed!
Be A Customer
A Foundation Principle of the Reports
Competition
Innovation
Productivity
Competition: The Elephant in the Room
14
Global Competitiveness Report
 Chair: Red Wilson –telcom
 Murray Edwards – oil sands
 Isabelle Hudon – trade policy
 Tom Jenkins, high tech
 Brian Levitt, M&A
15
Poor Relative Productivity Performance
16
Impact on Standard of Living
18
CCA Innovation Architecture
19
Federal Review of R&D Support To Business
 Chair: Mr. Thomas Jenkins
Executive Chairman and Chief
Strategy Officer, Open Text
 Dr. Bev Dahlby
Professor and Fellow, University
of Alberta
 Dr. Arvind Gupta
CEO, MITACS and Professor,
University of British Columbia
• Ms. Monique Leroux
CEO, Desjardins
• Dr. David Naylor
President, University of Toronto
• Mrs. Nobina Robinson
CEO, Polytechnics Canada
Sources of Innovation
 Customers & Employees (speaking with Customers)
dominate (62% of all responses)
Canadian Based Global Leaders
 From 1985 to 2011,
Canada has gone
from 15 to 42
corporations which
are considered
global leaders.
 Less than 10% of
these global leaders
are from sectors
with protection
regimes.
22
Sectoral Regimes
• Transport
• Uranium
• Telecommunications
• Broadcast
• Financial Services
• Culture
23
The World has Changed Dramatically
 Internet
 Mobile
 Global Value Chains
24
Canadian Firms Enjoy Higher Profits
some may have flexibility to set prices to meet profit goals
25
Logical Flow:
sub-optimal
Competition
leads to
Innovation
sub-optimal
leads to
sub-optimal
Productivity
A Balanced Model for Innovation
27
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
DPS Panel Members
Tom Jenkins, Special Adviser (Chair) - Innovation
Peter Nicholson - Policy and Economics of Innovation
David Fraser - Retired CF General
Christyn Cianfarani - Canadian Defence R&D Executive
Ray Castelli - Canadian Defence Executive
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
CFDS: Largest Expenditure in 60 years
30
Canadian Defence Expenditures, Historical and CFDS
Forecast
(Adjusted to FY 2000 $ Billion)
25
20
15
10
5
0
1950
1960
1970
1980
1990
DRAFT
2000
2010
2020
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
Potential Impact on Canada’s Economy
 CFDS: potentially largest
economic impact driven by
government procurement in this
generation.
 A KICs-centric strategy can:
 Create substantial economic
benefits for Canada;
 Drive innovation/productivity for the
next generation;
 Foster a world class defence
capability in Canada.
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
Criteria for Selecting KICs
 Specific needs identified by the Canadian Forces—the
operational requirements perspective;
 Success in penetrating global markets—the market
opportunity perspective; and
 Potential for new or improved (i.e., innovative) products—
the innovation perspective.
 Review every 4 years
Canada First: Leveraging Military Procurement Using Key Industrial Capabilities
Recommend Six KICs
• Arctic & Maritime Security
• Protecting the Soldier
• Command & Support
• Cyber-Security
• Training Systems
• In-Service Support
Innovation Example: CDMN
A Digital Public Private Partnership
Canada 3.0 Participation – 6,000 Participants
Canada 3.0 - 500 Secondary School Students
- Workshops, Keynotes, Showcase Tours -
Canada 3.0 - Industry Showcase &
Venture Capital
G20 Research Demonstration Project
Expanding the Canada 3.0 Reach
Innovation Policy Challenge:
Getting the Balance Right
Economic Reality
Global Competition
Society Aspirations
National Control
Slide 42
Innovation: What Needs To Change?
Be A Customer
Go Global
Go with the Flow:
Commercialization
Enlightened
Self Interest
is needed!
Be A Customer
Closing Thought
 Our competitiveness as a country and as a society will
depend on our ability to make strategic policy decisions.
1. To remain competitive and maintain our particular
concept of society we must strike a balance between the
open market and sector regimes.
2. We have to drive innovation by Government taking the
risk and being a demanding customer.
3. We need Academia to permit oxygen in the room for
commercialization programs to take hold.
 We cannot expect to have it both ways. We must have a
comprehensive debate in Canada about this.
44
Thank You
Ottawa
April 9, 2013
Tom Jenkins
Executive Chairman & Chief Strategy Officer
OpenText Corporation
Chair, Canadian Digital Media Network
Advisor to PWGSC, Canadian Defence Procurement
Chair, Review of Federal R&D Spending