Agri-Food Innovation & Competitiveness Workshop

by Ken Hough, OCPA Director of Research & Market Development

Innovation is a key element for success if Canada’s agriculture and agri-food sector is to secure a profitable future. This was the message from the Honourable Lyle Vanclief, Minister of Agriculture and Agri-Food, who provided opening remarks for “Innovation and Competitiveness of the Canadian Economy with Special Focus on the Agri-Food Sector,” a two-day workshop held in Guelph late in September. In his address, the Minister highlighted the Agriculture Policy Framework (APF), which emphasizes the need for innovation to achieve maximum return on investments in the key areas of food safety, the environment and innovative production. This theme was echoed in a later presentation by Dr. Doug Hedley, ADM of the Farm Income and Adaptation Policy Branch of AAFC.

Other key speakers provided various perspectives on ways in which opportunities for innovation can be enhanced; they included:

• Don Morrison, COO of Research in Motion (RIM), Ltd:
- Make sure that the value of what you do (what your industry does or produces) is relevant to your customers. You need to talk to your customers to find out what they really need/want.
- The key to innovation is ‘intuitive incrementalism’, i.e., make something, market it, then improve it incrementally and continuously.

• Dr. Peter Hackett, VP, National Research Council:
- Making reference to the fledgling bioeconomy, Dr. Hackett cited Geoffrey Ballard of Ballard Power Systems (a Canadian leader in fuel cell technology), who stated: “The Stone Age did not end because the world ran out of stones.” The bioeconomy is a tremendous opportunity for innovation and improved competitiveness, but it must be driven by its own potential rewards, not by challenges in the petroleum supply.

• Dr. Hackett outlined the need for Canada to build a ‘culture of innovation’ (Canada’s share of patents is 4 times below what would be expected on the basis of our population size); to foster growth of small and medium sized enterprises (SMEs) into large, internationally competitive firms; and to integrate efforts on this across Canada.

• Professor Adam Holbrook, Center for Policy Research on Science and Technology, and Head, Innovation and Competitiveness Network, Simon Fraser University:
- “Knowledge is unique. It can be created but cannot be destroyed. It flows, but it also stays behind.”
- How can government help stimulate innovation? Put more effort into research (including more dollars) and attract more talent in order to foster an atmosphere of innovation. Also, increase innovation-oriented education, especially at post-secondary levels, but also at primary and secondary levels.

• Dr. Jayson Myers, Senior VP and Chief Economist, Canadian Manufacturers and Exporters:
- 75% of products manufactured in Canada are exported, primarily to the U.S.; 28% of all goods sold in Canada are manufactured here.
- Governments can foster innovation by: tax treatment conducive to research and innovation; reducing regulatory compliance costs; encouraging cooperation and more funding for research and technology transfer.
- Universities can foster innovation by providing opportunities for the practical focus of research, appropriate intellectual property protection rules, and education more reflective of the business climate.

• Michael Detlefson, Exec. VP, Maple Leaf Foods:
- Need to identify your customers’ needs and address them better than your competitors.
- Current top consumer issues are food quality, food safety, protection against animal health epidemics (such as mad cow disease, in Britain), and appropriate animal husbandry.
- Maple Leaf allocates 5% of their R&D dollars to basic research, 10% to applied research and 85% to commercialization.

• Dr. Craig Pearson, Dean, Ontario Agricultural College, Guelph:
- Universities need to:
1. give researchers time to ‘experiment’ on new ideas, technologies
2. provide education in regulatory aspects, industry structure, etc.
3. encourage co-op placements for students in industries
4. promote staff exchange between industry and university
5. foster joint ventures with industry and other universities, encourage the coupling and convergence of technologies
6. inform the public about innovations being developed
7. work to develop government and university strategies for competitiveness in international research & development.

• Dr. Murray McLaughlin, President and CEO, Foragen Technology Ventures, Inc.:
- A 30-40% return on venture investment is not unrealistic, even in agri-food sector innovation.
- Venture capital firms will give consideration to companies that have developed solid business plans, covering all contingencies.

• David Muir, 3M Canada:
- Use the ‘15% Rule’ – 15% of your time is to be spent on ‘bootlegging,’ i.e., exploration of whatever ideas you think might lead somewhere.
- Reward innovation, innovators.
- Recognize and accept that failure is part of research.
- Encourage communication, both formal (cross-functional teams) and informal.

• Peter Hannam, President, First Line Seeds:
- Innovation is an attitude, an opportunity (there are 100 million consumers in the New York, Chicago, Toronto triangle) and is necessary -- if you are not moving ahead, you are falling behind.
- In order to foster innovation, governments should:
1. permit it
2. encourage it – teach, promote, expose, support – need to excite and inspire
3. assist it – don’t compete with it; access non-agrifood sector support (i.e., Kyoto, medical and life sciences opportunities).

• Ray Price, President, Trochu Meat Processors, Sunterra Farms Ltd.:
- There is a very different level of commitment to agriculture between the U.S. and Canada.
- It is essential to separate the science from the politics from the marketing.
- The regulatory system often impedes innovation – e.g., food irradiation as a means to ensure much greater food safety.

• Yves Potvin, President, Yves Veggie Cuisine:
- Our education system needs to instill and encourage innovation.
- The cost of entering the marketplace needs to be reduced, and guidance is needed through the process.
- We must recognize and reward those who innovate.

• Gary Fread, President, Fread & Associate (Consultants):
- Focus on adding value, not exporting commodities; also, need greater linkage between the ‘agri’ and the ‘food’ sectors.
- Current market-oriented drivers are safe, convenient, affordable and ‘healthy’ foods.
- In future, increasing focus on food-related issues of international trade, environment, developing nations as well as on new technologies.
- Changing demographics will have an impact as well – increasing wealth; aging/seniors; emigration from developing countries.

As a result of the diversity of viewpoints shared by the various speakers and the workshop audience, the workshop was an excellent forum for the exchange of ideas and discussion on ways to move innovation and competitiveness issues forward. Further efforts in this regard are expected in the coming months.

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