Peter Josty, the Centre for <strong><strong>In</strong>novation</strong> Studies (THECIS);Annette Trimbee, Advanced <strong><strong>In</strong>novation</strong>and Education, Government of Alberta;Stephen Lucas, Natural <strong>Resource</strong>s Canada;Dave Collyer, Canadian Associationof Petroleum Producers
OverviewOn October 22, 2010, the Public Policy Forumconvened a one-day conference in partnership withNatural <strong>Resource</strong>s Canada: <strong><strong>In</strong>novation</strong> in Canada’s<strong>Resource</strong> <strong>Sectors</strong>. The purpose of the conference wasto uncover the current state of innovation in the resourcesectors, as well as to discuss opportunities and strategiesfor advancing innovation.The conference was chaired by University of CalgaryPresident Dr. Elizabeth Cannon. The panelists includedmembers of the private, academic, and federal andprovincial public sectors, representing a variety ofdifferent resource sectors. Three panels were convened:“Drivers of and Barriers to <strong><strong>In</strong>novation</strong>”; “Research andKnowledge Generation in the <strong>Resource</strong> <strong>Sectors</strong>; and“The Future of <strong><strong>In</strong>novation</strong> in Canada’s <strong>Resource</strong><strong>Sectors</strong>.” A luncheon keynote was provided by AvrimLazar, President and CEO of the Forest ProductsAssociation of Canada on the subject of innovation inpublic engagement. A summary discussion at the closeof the conference was delivered by Dr. Cannon andGlen Schmidt, CEO of Laricina Energy.Participants and panelists were asked to reflect on thecurrent understanding of innovation in our resourceindustries. A short paper was prepared in advance ofthe conference by Natural <strong>Resource</strong>s Canada thatcaptured the economic importance of these industries,their innovation performance, and provided an overviewof the relationship between innovation and productivityin Canada’s resource sectors.Assessing the UrgencyThere are a number of imperatives driving the needfor innovation in Canada’s resource sectors. First andforemost is the business case for innovation – thatour industries should continuously be striving for newand better ways to improve their business. <strong><strong>In</strong>novation</strong>is readily identifiable across the resource sectors;indeed, innovations such as the development of SteamAssisted Gravity Drainage (SAGD) technology in theoil sands have propelled the sector forward. However,there are a number of new imperatives driving theneed for innovation.The first such challenge is found in the characteristicsof the resources themselves, many of which are stillbeing discovered. While the Canadian landscape isblessed with an abundant resource base, many of theseresources are increasingly unconventional, making themmore difficult to extract and more costly to produce.This also means that relative to other producers, Canadiancompanies often find themselves on the hard part of thecost curve. Relatively more expensive resources thusmake competing at a global level more challenging forCanadian companies.Secondly, the need for more value-added activity inCanada is an issue that is recognized by many as aserious issue for the resource sectors. Researchers andcompanies must continue to seek ways to process andupgrade materials in a cost-efficient manner in Canada,thus creating more jobs and increasing the value ofeconomic activity.7“<strong>In</strong> the words of one panelist, the need to“act urgently, but be patient” is a centralmessage that must reverberate throughboth the industry and the public.”Finally, in order to maintain the social license necessaryto continue operating, resource industries must do abetter job of communicating with Canadians, improvingperformance, maximizing social benefits and ensuringthat the environmental impacts of these activities areof minimal consequence. <strong>In</strong>creasing public attention tothe environmental impacts of resource extraction requiresmore effective communication as companies operatingwithin the sector intensify their efforts to offset theenvironmental impacts of extraction. <strong>In</strong> the words of onepanelist, the need to, “act urgently, but be patient” is acentral message that must reverberate through both theindustry and the public.