SPEECH
June 24, 2009
Remarks for Minister Wilkinson
ONE Vision Speech/Economic Club
Check against delivery.
INTRODUCTION
Thank you Mark.
It’s great to be back here today.
A little over a year ago, I addressed the Economic Club to outline Ontario’s Innovation Agenda ... the McGuinty government’s plan to help make innovation the driving force of Ontario’s economy.
Today, I’m here to do two things:
First, I want to quickly review how far we’ve come, and what we’ve accomplished over the past year.
Second, and, more importantly, I want to talk about what comes next.
Let me start by setting the context upfront.
Ontario is shifting to an economy built on ideas. And we are working to make Ontario the best place in the world to innovate.
Everything we’ve been working towards…as a province…has been to bring us to this point…
The point where we can say we are focused and ready to take the next steps to compete and win in the new global economy…
Where we can be confident and certain that Ontario is prepared to take on and win against the Boston’s, San Diego’s and Singapore’s of the world… and lead the world when it comes to turning our world-class research and ideas into economic wealth and prosperity.
Today, I’m here to say that your government is committed to work with you to take the next important steps.
Which is why change is coming.
The McGuinty government has said from day one that we believe our role as your government is to be a catalyst.
I want to be clear that when I talk about change, I’m not talking about change for change’s sake.
Continuity is important.
The kind of change we envision for Ontario, is change for the better.
The kind of change that fuels innovative people and innovative companies.
After all, innovation is not about standing still...
It’s about always looking for new and more effective ways of doing things.
To be effective, a government that claims to be dedicated to innovation has to be prepared to do the same… to walk the talk.
PUTTING THE PIECES IN PLACE
I believe, we are.
Four years ago Premier McGuinty had the vision to create the first ministry in Canada dedicated to research and innovation. And today, innovation is a key point in our five point economic plan.
The Ontario Innovation Agenda outlined our formula for success in today’s economy.
Because we know that generating local solutions for the pressing global challenges that confront humanity -- like conquering disease; connecting the global village; and learning to live more sustainably on our planet -- is the only economic path that will reliably generate new businesses ... and new jobs.
TALENT
The Premier often notes that we live in a world where companies anywhere can borrow capital ... can copy technology ... and can buy natural resources.
When all these other things become commodities, there’s only one solid foundation upon which to build a high-wage, economy with a high quality of life: talent.
That’s it.
That philosophy guides everything we do, and everything we’ve done to get to this point.
It’s why the McGuinty government has made education such a priority… And why we continue to build upon the advantage of having the most highly skilled workforce in the G7…
It’s why, since 2003, we’ve committed $3.2-billion to support innovation… and brought Ontario’s investments in science and discovery to an historic high.
It’s why we offer tax credits to businesses that engage in research in Ontario …
Why we have grants that support R&D in high-growth, high-tech sectors like biopharma…
And why we are helping businesses access capital, through initiatives like the $205-million dollar Ontario Venture Capital Fund, and the $250-million dollar Emerging Technologies Fund.
Finally, it’s why our recent Budget included significant tax reforms designed to make it easier for innovators and entrepreneurs to realize their vision of starting and growing innovative companies in Ontario...
The McGuinty government’s tax reform package will reduce the cost of doing business by eliminating antiquated tax on tax, eliminating tax on business inputs, reducing the administrative burden involved in processing both a federal and provincial sales tax, and lowering taxes on income.
In total, these comprehensive tax reforms will cut Ontario’s marginal effective tax rate on new business investment in half – making this province one of the most competitive jurisdictions in the industrialized world for new investments in R&D and advanced manufacturing.
At the core ... all of this is about creating an encouraging and supportive environment so talented people in this province ... can strive ... achieve ... innovate ... and succeed.
TALENTED PEOPLE
As your Minister of Research and Innovation, every day I had the privilege of interacting with some of the most talented people in Ontario.
People like ... Dr. Tom Hudson, Dr. Lincoln Stein and Dr. John McPherson and others at the Ontario Institute for Cancer Research, whose research excellence means that Ontario is now leading the world in the global fight against cancer.
People like Ray Novokowsky and Dr. Bryan Hollebone at Ottawa-based EcoVu. Their aim is not only to build a successful company, but also to leave a legacy for their grandchildren and for the generations that will follow: clean water.
The United Nations estimates that by 2028, half of the world’s population may be struggling to find enough water for drinking and irrigation... And Ontario companies like EcoVu are determined to be part of the solution.
There’s Michael Sefton at Rimon Therapeutics a company that is creating materials that actually help wounds heal better and faster.
Their “smart” dressing is made from advanced medical polymers that remove tissue-destroying enzymes in chronic wounds… and kick-start the body’s natural healing process.
There’s John Paul Morgan and his team at Morgan Solar, who are working towards making solar energy the most widely used and affordable energy source in the world.
They’re joined by people like Scott Nichol and Paolo Maccario at 6N Silicon, who are also taking aim at the global market for clean technology solutions.... which is now estimated at $1 trillion U.S. annually, and growing.
Recently, Mississauga-based 6N opened a new manufacturing facility in Vaughan... A facility where many workers who used to be employed by the auto sector are now producing the material needed to make solar panels more efficiently and at a better price than their global competitors.
And just last week I visited with Cameron Piron and his team at Sentinelle Medical, a Toronto-based company that offers breakthrough technology for improved performance in diagnosing or ruling out breast cancer. This company employed 25 people just two years ago. Today, it has more than 100 on staff and is growing fast.
Sentinelle’s future looks very bright… and they are spreading their success all the way to Windsor, where many workers who used to be employed by the auto sector are now manufacturing their new product.
We have a lot of innovators like these people ... right across the province.
They are an inspiring bunch.
They’re smart, dedicated people.
They work really, really hard.
And, they have a vision...
For building a product or service they can sell to the world...
And for building forward-looking companies and jobs, right here in Ontario.
We’re privileged to have people like this in our province, and it’s our job to make sure they have every chance to succeed.
I’m proud to say that Ontario has done a lot... we’ve got a solid plan.
We’ve committed significant funding.
We’ve got programs up and running to support innovators from the lab to the marketplace.
And we’ve got tremendous examples of success.
That fact is… we’ve got a good system… the pieces are in place.
But there is more to do.
GETTING THE PIECES TO WORK TOGETHER
Pierre Trudeau once observed that, “The essential ingredient of politics is timing.”
In terms of Ontario’s commitment to innovation, for the past four years, timing and politics have been on our side.
Just as we were making significant investments in science and technology, the U.S. lost its focus.
It was a golden moment for Ontario…
An opportunity to attract leading talent… develop a strategy… and build our capacity.
It was, perhaps, a once-in-a-generation opportunity.
We were prepared.
Fast forward to today…
The world continues to turn. We are faced with new challenges… and new opportunities.
The economy is changing… rapidly.
The Obama administration has signalled – clearly – that innovation will once again be a significant priority in the U.S.
So, what does that mean for Ontario?
It means, now is not the time to take our foot off the gas when it comes to our commitment to research and innovation.
Now is the time to continue building upon our strengths ... and building upon the strong foundation that we have built together.
You know, as Minister of Research and Innovation, I consistently said to researchers and entrepreneurs alike… “If you are, or plan to be Top Three in the world… come see me. If you aren’t or you don’t plan to be, step aside and make room for those that do.”
Let’s be honest.
When it comes to research, Ontario is world class… and in our areas of focus, we are, or plan to be, Top Three.
Now, let’s be brutally honest when it comes to commercialization: we aren’t.
Ontario is not yet ranked globally with the likes of Boston, Cambridge, San Diego and Singapore.
But we will be.
As I’m sure many of you know the famous phrase – “good to great” – is the premise and title of an insightful book by Jim Collins.
In his writings, Collins notes that “Luck favours the persistent.”
The McGuinty government agrees.
We strongly believe that it isn’t enough to put the pieces in place to support innovators in Ontario.
We’ve also got to make sure the pieces work together in a strategic, coordinated way.
We’ve got to break down silos between, and within, the research community, entrepreneurs, venture capital and government.
In short, we’ve all got to find – and keep finding – new and better ways to work together as a team.
Basketball great Michael Jordan said that “Talent wins games, but teamwork and intelligence wins championships.”
FROM GOOD TO GREAT
In Ontario, we’ve got a great team of partners across the province ... together they form the Ontario Commercialization Network, or ‘OCN’.
From Windsor to Ottawa and from Thunder Bay to Toronto… these organizations help their clients – researchers, entrepreneurs and innovative business people – move new innovations to market.
Across Ontario, the combined efforts of the organizations that make up the OCN have connected with thousands of innovators ... and helped create over 200 new companies... and over 1500 jobs.
In other words, they do good work.
But, if we’re going to realize Ontario’s vision of being world-class and one of the top three jurisdictions in the world at commercialization ... ‘good’ ... or even ‘really good’ ... isn’t good enough.
That’s why the McGuinty government is proposing changes that will help transform Ontario’s capacity to turn great ideas into great businesses… from good to great.
But how do we get where we need to go? How do we decide what should stay the same, and what needs to change?
For starters, we didn’t ask ourselves.
The Ontario government undertook a review of the network last fall… and we turned to experts… leaders in business, investment and research communities here in Ontario and around the world, to independently review our existing network of programs and partnerships…
And advise us on how to best move forward.
What did they tell us?
They confirmed what I already know to be true: there is good work being done across the province.
Then they said, “Minister, if Ontario really wants to challenge the status quo…” and if we are serious about competing and winning against the Boston’s, Cambridge’s, San Diego’s and Singapore’s of the world… we need to do two things:
Make the OCN more coordinated and more client-focused; and,
Make it easier for innovators across the province to find the support they need to move their ideas to the global market.
Today, we intend to move forward with that advice.
CLIENT-FOCUSED
Now, “client-focused” seems like pretty obvious advice...
Who else would we focus on?
I’m sure if you asked the organizations in the network ... and some of them are here today ... they’d tell you that their clients are their focus.
No one doubts that for a moment.
The challenge lies in how the network evolved.
We didn’t build it all at once.
It happened over nearly two decades… and multiple governments… responding to specific needs with targeted partnerships and programs… at different times.
If we were starting from scratch today, we wouldn’t create a bunch of different, overlapping programs.
We wouldn’t build all kinds of different partnerships with 20 or so organizations ... with different governance, different metrics and different funding mechanisms.
We wouldn’t build a network with little built-in incentive for all the partners to work together.
And, most importantly, we wouldn’t put politicians and civil servants at the centre.
Unfortunately, that’s the kind of network that evolved – unintentionally.
That said ... it is certainly not without its strengths. It’s accomplished good things across the province.
But the clients of these networks, many of you here today, told us that we can ... and must ... do better in the future.
We understand that the current network isn’t easy for clients across the province to navigate.
There are too many programs ... and too many different organizations.
Despite our collective best intentions – to help innovators across the province – we’ve created yet another puzzle for them to solve in getting their idea to market.
So, the advice to put – and keep – the needs of innovators front and centre isn’t just welcome...
The guiding principle of client focus will be at the foundation of everything we do moving forward.
ONTARIO NETWORK OF EXCELLENCE: O.N.E
We aren’t planning on rebuilding the network from scratch.
We’re planning a transformation… a ‘reboot’, so to speak.
We’re determined to keep what works well ... while addressing some of the things that don’t.
And that’s why we’re proposing a network with a renewed vision ... an Ontario Network of Excellence, O.N.E… or ONE.
Here’s how we propose it will work.
A new, single, coordinated, and better-connected innovation Network would give Ontario’s home team a strong ‘coaching staff’ ... an advisory board of successful innovators and leaders from Ontario’s business, investment and research communities.
After all, these are the folks that know first-hand what it takes to move an innovation into the marketplace – they’ve done it.
An advisory board would make sure that the focus of ONE remains on the people that it is designed to serve: the clients.
And, ONE would be far more strategic.
Programs would be streamlined and developed centrally, making it easier for innovators – and service providers alike – to access, understand, navigate and collaborate.
The idea is that there would now be one network and one place to go for information… but with multiple points of entry.
And from a client’s perspective, what we are proposing means that there will now be four core programs – instead of twelve.
First, there would be a program to support industry-academic collaborations across the province ... bringing together this province’s research and entrepreneurial talent to generate new business and new products.
The Ontario Centres of Excellence has over two decades of success in building these kinds of collaborations ... and for that reason we’ve asked OCE to lead this program as part of the new, ONE network.
Second, there will be a program to support innovative Ontario-based companies dedicated to bringing new technologies to market.
That includes start-ups with a great idea... or larger firms with their sights set on conquering global markets.
MaRS has a track record of success delivering entrepreneurial advice across the province through programs like their “entrepreneurs-in-residence.”
And for that reason we’ve asked them to take this success to the next level by leading the new Business Acceleration Program across Ontario, as part of the ONE network.
Now, let me be clear: This does not mean that the network would be run from, and for, Toronto... it will not. Because…
Third, and equally as important, will be the regional organizations across the province that will deliver these core programs.
The expert panel was clear in their advice: the regional innovation network is a tremendous strength, and one that we need to strengthen even further.
They’re the folks who know who the innovators in their local communities are ... and what they need to succeed.
That’s critical for a client-focused network.
And, that’s why this principle – central co-ordination and regional delivery – will be the mantra of the new ONE.
The regional organizations would be the local face of ONE ... delivering the core programs, building connections, and contributing to regional economic development.
Working together, these organizations would form a ‘mesh network’ ...
Easily sharing knowledge and resources to ensure that ... no matter where an innovator is located ... from Windsor to Wawa to Ottawa ... they will have access to the best resources and expertise available in this province.
Fourth, and finally, the Ministry of Research and Innovation will continue to provide strategic funding through initiatives like our highly successful Innovation Demonstration Fund.
METRICS
Just as regional delivery will be key as we move forward… so will metrics.
Overarching everything, one of the first things we would ask the advisory board to do is to define the right metrics for success.
Metrics that will be consistent across the ONE network ... so that we all know what we are aiming for ... and whether or not we are succeeding…
Metrics that will be clear, transparent and accountable to taxpayers… that reward collaboration, and measure how well we are all delivering on the needs of clients.
Most importantly, they will be metrics that will ensure we can identify ... reward ... and communicate success.
The right metrics will help us to create a far more responsive, more effective, more collaborative, more adaptable network...
One that builds on what we’ve done ... and takes it to a whole new level.
WHAT’S NEXT
We are eager to move to ONE as quickly as possible.
Fortunately, we’ll be building on existing, successful partnerships.
A lot of our partners are in this room today.
To them I say, I understand that you’re eager ... and a little anxious.
Eager to get working on rolling out the ONE ... and a little anxious to know how you will fit into this new network and what changes you might need to make.
Let me be as clear as I can be: Ontario is committed ... we’re determined to get this done.
If you share our vision ...
If you are excited about being part of a world-class innovation network ...
If you are focused on results and delivering for your clients ...
If you believe in the power of collaboration…
You have nothing to worry about.
Together, we’ll find a way to make the shift to an Ontario Network of Excellence as smooth as possible...
For you ... and most importantly ... for your clients.
As a last order of business as Minister of Research and Innovation, I have directed the Ministry to work to ensure that every organization that signs up to be a part of ONE has what they need to continue serving and focusing on their clients.
VISION
Together, we can create a network that makes the best resources for innovators available ... everywhere in Ontario.
That means that when an innovator walks into whatever network organization is closest...
They’ll have access to expertise just around the block…
And right across the province.
They’ll have access to best practises from around the world…
Programs linking them to researchers and successful entrepreneurs...
Funding and advice to get their ideas into the marketplace...
As much as possible, this network will make geography irrelevant.
It will make shifts between government programs seamless.
It won’t matter where you are...
It won’t matter what stage your idea or business is at...
All that will matter is the quality of your idea... the depth of your commitment... and your drive to succeed.
Our goal is to unlock the tremendous potential ... and remarkable talent ... right across the province.
As Jim Collins wrote:
“Greatness is not a function of circumstance. Greatness is largely a matter of conscious choice, and discipline.”
It’s pretty rare that one person – alone – can come up with a great idea and bring it to market.
It takes lots of talented people ... conscious choice… and discipline ... to make that happen.
Together, we will move Ontario’s Commercialization Network from good to great… and from “many” to “O.N.E”.
Thank you.
