President’s MessageThe Topography <strong>of</strong> InnovationAre Canadians ready to compete inthe new knowledge economy?PHOTOGRAPHY: LAURA ARSIÈTHESE ARE SUNNY DAYS IN CANADA. OUR DOLLAR IS AT PARITYwith the American greenback, our economy is strong and ourinclusive society draws talented immigrants from around theworld. But clouds are appearing on the horizon. Recently, theConference Board <strong>of</strong> Canada ranked Canada’s performance ininnovation a lowly 14 th out <strong>of</strong> 17 comparator countries in theOrganisation for Economic Co-operation and Development(OECD). Our rate <strong>of</strong> private-sector investment in research anddevelopment has been declining since <strong>20</strong>01. The latest datashow that Canada files patents at just 58 per cent <strong>of</strong> theOECD average rate.We also fare poorly on comparisons <strong>of</strong> how we prepare ourcitizens for the global knowledge economy. Although Canadiansare more likely than citizens <strong>of</strong> other OECD countries toattend community college, we are strikingly less likely to attendgraduate school. Twenty years ago, Canadian universitiesreceived $2,000 per student more from governments than theirAmerican peers. Today, they receive, on average, $5,000 less. Inpublications per pr<strong>of</strong>essor, one measure <strong>of</strong> research productivity,Canada ranks fourth in the OECD, ahead <strong>of</strong> the U.S. andJapan. But among individual North American institutions, Harvard<strong>University</strong> still leads the way by a big margin; California’spublic universities – UCLA, UC Berkeley – also fare very well.How do the Californians do it? By deliberately and strategicallyconcentrating graduate education at the 10 <strong>University</strong> <strong>of</strong>California campuses. Pr<strong>of</strong>essors at these institutions have won50 Nobel prizes – 18 since 1995. Canada, in contrast, exportsmany potential Nobel Prize winners and sometimes importswinners from elsewhere, but rarely grows and keeps its ownNobel laureates. The last three were U <strong>of</strong> T’s John Polanyi in1986, UBC’s Michael Smith in 1993 and, in 1994, BertramBrockhouse – a scientist affiliated with McMaster <strong>University</strong>.There are no quick fixes for our current malaise, but five policyshifts might boost our innovation capacity. First, governmentsshould fund basic research more generously. From lasersto Teflon, countless economically important advances have piggybackedon basic research. And in regions where Nobel Prizewinners congregate in great universities, knowledge-basedindustries flourish in a wonderfully synergistic relationship.Second, governments need to simplify the mandates <strong>of</strong>research agencies. Today’s research agencies – especially ourthree national granting councils – are too <strong>of</strong>ten asked to promotecommercialization or oversee networks with industry.These expansive mandatesdilute scarce resources anddistract top talent.Third, Canadians areefficient at turning dollarsinto research but inefficientat turning researchinto dollars. Commercializationis not the enemy <strong>of</strong> fundamental research; nor is theconverse true. However, it is wrong-headed to insist thatgranting councils and research agencies constantly look downstreamto the marketplace when their sights are justifiably setupstream on knowledge generation. Instead, we need dedicatedcommercialization agencies and infrastructure.Fourth, Canada’s research universities actually lose money withmost grants their pr<strong>of</strong>essors receive. With each grant, the institutiontakes on new costs for maintaining labs, heating and lightingbuildings and providing support services to researchers. That’swhy the British government pays an extra 48 cents per dollar <strong>of</strong>grant payment, while American coverage averages 60 cents onthe dollar. In Canada, federal grants cover these critical costs at arate that is inversely proportional to the total research activity atan institution. Think <strong>of</strong> it as Orwell without the irony.Finally, we urgently need more master’s and PhD graduatesto spur growth in our knowledge-based industries. But we can’tachieve the necessary expansion in graduate education withouta serious rethinking <strong>of</strong> how we organize and fund our institutions<strong>of</strong> higher education. Canada needs graduate-intensiveuniversities with the research resources to compete internationally.At the same time we need well-funded undergraduateintensiveuniversities educating a talented global citizenry.Other jurisdictions such as California have long since recognizedthat distinct institutions perform these roles best.Everyone knows that India and China are rising fast. ButEuropeans, too, are forging new economic and educationalalliances with each other. And our giant neighbour to thesouth will almost certainly reinvent itself to remain a globalforce. Canada cannot simply do more – or less – <strong>of</strong> the samein this changing context. We must embrace the spiky topography<strong>of</strong> excellence and innovation if future generations <strong>of</strong>Canadians are to thrive.Sincerely,DAVID NAYLOR6 UNIVERSITY OF TORONTO MAGAZINE / SPRING <strong>20</strong>08
EXPLORE THE WORLDD E T A C HUNIVERSITY OF TORONTO ALUMNI TRAVEL PROGRAM <strong>20</strong>08We are pleased to introduce our exciting tours for <strong>20</strong>08. Each year, about 400 U<strong>of</strong> T alumni and friends explore the cultures andhistory <strong>of</strong> great communities around the world. Join us as we take in the wonders <strong>of</strong> the Dalmatian Coast, cruise the Baltic Sea, andclimb the Great Wall <strong>of</strong> China.Prices quoted are in Canadian dollars, per person and based on double occupancy. Dates and prices are subject to change. Individual tourbrochures are available approximately 4 - 6 months prior to departure. To request a brochure, please call 416-978-2367 or 1-800-463-6048or e-mail alumnitravel@utoronto.ca or visit us online at www.alumnitravel.utoronto.ca or mail this coupon to: <strong>University</strong> <strong>of</strong> <strong>Toronto</strong>Alumni Travel, 21 King’s College Circle, <strong>Toronto</strong>, ON M5S 3J3Name: _______________________________________________________________ Grad Year: ____________________Address: ______________________________________________________________ City: ________________________Province: __________________ Postal Code: ______________________ Tel: __________________________________E-mail: _______________________________________ Alumni ID number ___________________________________Please send me additional information about individual trips: Yes No Please check <strong>of</strong>f the trips for which you would like to receive information:printed on mailing address <strong>of</strong> U <strong>of</strong> T <strong>Magazine</strong>Great JourneysSOLD OUTApril <strong>20</strong> - 28 SOLD OUTWaterways <strong>of</strong> Holland& BelgiumFrom $2545 + airJune 23 - July 1Alpine Mountains & Lakes(Germany to Liechtenstein)$2795 + airSept 23 - Oct 1Island Life in AncientGreece & TurkeyFrom $3395 + airApril 23 – May 1Cruising the CanaryIslandsFrom $26<strong>20</strong> + airJune 25 - July 3Alumni College in Italy’sMountains & Lakes$2745 + airSept 23 – Oct 1Village Life along theDalmatian CoastFrom $3195 + airSOLD OUTApril 29 - May 12 SOLD OUTAlumni College inUkraineFrom $2195 + airJuly 2 -1 0Alumni College in theSwiss Alps (Switzerland)$2745 + airOct 12 - Nov 2China Splendour$8899 including airApril 30 – May 8Voyage <strong>of</strong> the WesternMediterraneanFrom $3025 + airAugust 3 - 11Cruise the Baltic Sea(Sweden to Denmark)From $3345 US + airOct 14 - 25Alumni College in Italy(Sorrento & Orvieto)$3145 + airMay 9 - 17Saxony Cruise(Germany, Czech Republic)From $2995 + airAug 31 - Sept 12Passage <strong>of</strong> Peter theGreat (Russia)From $2945 + airNov 16 - 30South India$9899 including airMay 13 - <strong>20</strong>Ireland Escapade$1650 + airMay 23 - 31Village Life along theSeine River (France)From $3630 + airSept 2 - 11Alumni College in theFrench Riviera (France)$2945 + airSept 9 - 25Cruise the Face <strong>of</strong>Europe (Holland to Hungary)From $4895 + airGreat CauseOct 2 - 14, <strong>20</strong>09Building an AlumniSchool in Kenya$4775 + airMay 30 - June 12Romance <strong>of</strong> the BlueDanube (Germany to Romania)From $4345 + airSept 22 - 30Dublin in an IrishCastle (Ireland)From $2845 + air