Socio-economic Impacts of Innovation Investments

The Ontario Ministry of Economic Development and Innovation has asked the Council of Canadian Academies to assess best practices in measuring socio-economic outcomes and impacts of government spending on research and innovation activities that could be applied in the Ontario context.

Background

In many developed and developing nations, innovation policy has become central to the efforts of governments at all levels to maintain their competitiveness in a global economy, which is increasingly becoming knowledge-based. The Government of Ontario has also made substantial investments in innovation, with the explicit aim of strengthening Ontario as a leading innovation-based economy.

However, the question remains: what are the best practices for policy-makers to evaluate and measure the impact of their investments in innovation in terms of socio-economic effects such as output, employment, tax, creation of new ventures, development of entrepreneurship and social impacts? The Council’s assessment will attempt to answer this question by drawing on experiences from other provinces and countries and adapting them to the Ontario context.

Question

How can the actual and potential outcomes and impacts of Ontario government spending on innovation and scientific activities be measured, including but not limited to the effects on GDP in Ontario, generation and transfer of knowledge; creation of new ventures; and access to seed, development and growth capital?    
 
Sub-questions:

1. Based on the rigorous review of current studies and the identification of the most appropriate evaluation methods, is it feasible to build a model to quantify the returns on innovation investment of the government of Ontario in terms of socio-economic effects such as output, employment, tax, creation of new ventures, development of entrepreneurship and social impacts?
2. How can the returns (socio-economic impacts) on innovation investments by the government of Ontario be defined and evaluated?
   • What methods for assessing and quantifying the actual and potential returns on innovation investments are used by other jurisdictions?
   • How can these methods be applied to Ontario?
3. Identify Ontario’s areas of strength in innovation and innovation support.    

Expert Panel

The Expert Panel on the Socio-economic Impact of Innovation Investments is chaired by Mr. Esko Aho, Executive Vice President, Corporate Relations and Responsibility, Nokia; and Former Prime Minister of Finland. For a complete list of panel members visit the Expert Panel on the Socio-economic Impact of Innovation Investments page.

For further information, please contact:

Christina Stachulak, Senior Program Director, at 613-567-5000 ext. 259 or christina.stachulak@scienceadvice.ca