<strong>Conference</strong> <strong>Report</strong>: <strong><strong>In</strong>novation</strong> <strong>In</strong> Canada’s <strong>Resource</strong> <strong>Sectors</strong>Key Themes8Measuring <strong><strong>In</strong>novation</strong><strong>In</strong> order to understand the unique characteristics ofinnovation in the resource sector, we must broadlydefine it as more than invention – innovation includesnew processes, new organizational structures, and newoperating methods. As Cooper Langford, Director ofthe Science, Technology and Society Program at theUniversity of Calgary, defines it, innovation is“bringing novelty into productive use.” 1While this is commonly understood across sectors,relevant metrics need to be established. The narrowapplicability of tax benefits such as the ScientificResearch and Experimental Development (SR&ED)credits, which have become a common reference tomeasure innovation in Canada, points to the exclusionof many innovative activities from being captured.Further, while typically applied metrics of innovation,such as R&D effort, educational attainment of theworkforce, and intellectual property in the formof patents, copyrights and trademarks, are usefulmeasurements, they do not fully capture the fullsuite of innovation occurring in the resource sector.Many of the innovations in resource industries have comeabout as a result of a “tweaking in the field” model ratherthan through research generated in labs and universities.As a result, typical indicators of innovation do not tell thewhole story. Furthermore, innovation is often outsourcedthrough service, supply and technology enterprises ona discrete basis. An effort to truly capture all resourcesector innovation by using traditional metrics as well asthrough defining new and more relevant metrics such asexploration technology or process improvements needsto be considered.Creating a Culture of <strong><strong>In</strong>novation</strong><strong>In</strong> order to advance innovation, our resource industriesmust strive to build a culture of innovation thatpermeates across different sectors and in the multitudeof organizations involved. Linking resource companies,research institutions and governments through ashared commitment to innovation (via collaboration,connectivity, and best practices) is critical to buildingan environment that recognizes, promotes and rewardsinnovation. The importance of taking an ecosystemapproach to innovation has been demonstrated in manyother sectors. The Canadian Mining <strong><strong>In</strong>novation</strong> Council(CMIC), which is dedicated to research, commercializationand innovation, is an example of the type ofnetwork that needs to be established across the resourcesector. For example, the CMIC brings together industry,government and academics to work collectively tostrengthen the mining sector.One panelist at the conference provided a brief storyabout a plant he had visited which had tripled its output.The reason for this dramatic increase in output wasunknown to even the plant managers, until eventuallyit was revealed that two of the plant’s process engineershad spent the last few years making small tweaks tovarious processes and production tools, which hadhad the cumulative effect of radically improving theplant’s productivity. This example leads to some simplequestions about the ways in which corporate culturecan encourage innovation. Does the culture allow foremployees to innovate? Are employees given the trustand freedom to suggest and implement change?It’s also important to consider what the overarchingcorporate strategy is, and what role innovation can playwithin that strategy.1Cooper H. Langford “Outcomes of University Research in Canada: <strong><strong>In</strong>novation</strong> Policyand <strong>In</strong>dicators of Triple Helix Relationships” The Centre for <strong><strong>In</strong>novation</strong> Studies
People<strong><strong>In</strong>novation</strong> is driven by people, and it’s clear thatresource industries have been able to attract exceptionalindividuals who work hard to make sure these businessesthrive. A continued emphasis needs to be placed notonly on attracting the best and the brightest, but alsoon letting people know that a career in the resourcesector is one in which they will have the ability to pursuecreative new ideas. Employees must be entrusted withopportunities and capacity to effect change, whetherthat be incremental or radical.<strong>In</strong> addition, there is a broad community that resourceindustries can draw from to improve their capacity forresearch and innovation. For example, graduate students,employed through co-operative education programs,internships, and scholarships can contribute significantly.Similarly, there is a growing strength found in theincreasing number of new Canadians and foreign studentswho come to study in Canadian universities, who in somecases come from countries with strong resource industriesof their own. Finding ways to engage these new andemerging leaders, who often possess significant skillsand a creative outlook, offers an important opportunityfor advancing innovation. <strong>In</strong>deed, many organizationsrepresented at the conference acknowledged theimportance of this type of engagement, even in engagingstudents in the K-12 education system to promote thevalue of science and technology.Leaders and ChampionsIf innovation is about people, a commitment toinnovation must be demonstrated at the top.Strong leaders and champions who are committedto innovation, and to recognizing and rewarding itamong all levels of an organization, form the foundationfor success. Leaders must demonstrate that there is ashared commitment to innovation.<strong>In</strong> addition to motivating and encouraging staff,leaders who champion innovation are needed to ensurethat goals and objectives are clearly defined and includedin corporate strategy. This could be in the form of anannual evaluation of innovation, a strategic plan, or anemployee recognition program that highlights exceptionalcontributions from employees. Further, includinginnovation in leadership training courses offers theopportunity to develop the capacity of new leaders tobalance innovation and risk.9