A Private Sector View of Canada’s Research System Ottawa April 9, 2013 Tom Jenkins Executive Chairman & Chief Strategy Officer OpenText Corporation Chair,

A Private Sector View of Canada’s Research System

OttawaApril 9, 2013

Tom Jenkins

Executive Chairman & Chief Strategy Officer

OpenText Corporation

Chair, Canadian Digital Media Network

Advisor to PWGSC, Canadian Defence Procurement

Chair, Review of Federal R&D Spending

Key Messages:

Innovation is a global game – do not be fooled by lower Canadian competitive intensity

Take advantage of the small size of Canada and build collaboration better than others

Change Management must be a distinctive competence of your organization

The Three(1/2) Pillars in Canada

©2012 OpenText

My Background on this topic:

Canada’s largest software company

Built the Original “Google” in the mid 90s

Jerry Yang CEO of Yahoo and Tom Jenkins CEO of Open Text launch in 1995.

based on university research

Built Archives Which Became the “Deep Web” Inside Corporations

Copyright © Open Text Corporation 2008 - 2009. All rights reserved.

Slide 7

With Significant Global Reach

1 in 3 global Internet users use applications using content enabled by this technology.

Defined Enterprise Content Management and Authored Trilogy

Wrote a Book on Content in the Cloud

Available on Amazon or Apple or www.opentext.com

Wrote a new book on Big Data and the Hidden Web inside the Firewall

Tom Jenkins

A guide book on building Enterprise Applications inside the firewall

Available on Amazon or Apple or www.opentext.com

Innovation Strategy Reports

Innovation: What Needs To Change?

Be A Customer

Go with the Flow:Commercialization

Go Global

Be A Customer

Enlightened Self Interest is needed!

A Foundation Principle of the Reports

Competition

Innovation

Productivity

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Competition: The Elephant in the Room

14

Global Competitiveness Report

15

Chair: Red Wilson –telcom

Murray Edwards – oil sands

Isabelle Hudon – trade policy

Tom Jenkins, high tech

Brian Levitt, M&A

Poor Relative Productivity Performance

16

Impact on Standard of Living

18

CCA Innovation Architecture

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Federal Review of R&D Support To Business

Chair: Mr. Thomas Jenkins Executive Chairman and Chief Strategy Officer, Open Text

Dr. Bev Dahlby Professor and Fellow, University of Alberta

Dr. Arvind Gupta CEO, MITACS and Professor, University of British Columbia

• Ms. Monique Leroux CEO, Desjardins

• Dr. David Naylor President, University of Toronto

• Mrs. Nobina Robinson CEO, Polytechnics Canada

Sources of Innovation

Customers & Employees (speaking with Customers) dominate (62% of all responses)

Canadian Based Global Leaders

From 1985 to 2011, Canada has gone from 15 to 42 corporations which are considered global leaders.

Less than 10% of these global leaders are from sectors with protection regimes.

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• Transport

• Uranium

• Telecommunications

• Broadcast

• Financial Services

• Culture

Sectoral Regimes

23

The World has Changed Dramatically

Internet Mobile Global Value Chains

24

Canadian Firms Enjoy Higher Profits some may have flexibility to set prices to meet profit goals

25

Logical Flow:

Competition

Innovation

Productivity

26

sub-optimal

sub-optimal

sub-optimal

leads to

leads to

A Balanced Model for Innovation

27

Canada First: Leveraging Military Procurement Using Key Industrial Capabilities

DPS Panel Members

Tom Jenkins, Special Adviser (Chair) - Innovation

Peter Nicholson - Policy and Economics of Innovation

David Fraser - Retired CF General

Christyn Cianfarani - Canadian Defence R&D Executive

Ray Castelli - Canadian Defence Executive


1950 1960 1970 1980 1990 2000 2010 20200

5

10

15

20

25

30

Canadian Defence Expenditures, Historical and CFDS Forecast

(Adjusted to FY 2000 $ Billion)

CFDS: Largest Expenditure in 60 years

DRAFT


Potential Impact on Canada’s Economy CFDS: potentially largest

economic impact driven by government procurement in this generation.

A KICs-centric strategy can:

Create substantial economic benefits for Canada;

Drive innovation/productivity for the next generation;

Foster a world class defence capability in Canada.



Criteria for Selecting KICs Specific needs identified by the Canadian Forces—the

operational requirements perspective;

Success in penetrating global markets—the market

opportunity perspective; and

Potential for new or improved (i.e., innovative) products—

the innovation perspective.

Review every 4 years


Recommend Six KICs

• Arctic & Maritime Security

• Protecting the Soldier

• Command & Support

• Cyber-Security

• Training Systems

• In-Service Support


Innovation Example: CDMNA Digital Public Private Partnership

Canada 3.0 Participation – 6,000 Participants

Canada 3.0 - 500 Secondary School Students- Workshops, Keynotes, Showcase Tours -

Canada 3.0 - Industry Showcase & Venture Capital

G20 Research Demonstration Project

Expanding the Canada 3.0 Reach

Innovation Policy Challenge: Getting the Balance Right

Slide 42

Society AspirationsEconomic Reality

Global Competition National Control

Innovation: What Needs To Change?

Be A Customer

Go with the Flow:Commercialization

Go Global

Be A Customer

Enlightened Self Interest is needed!

Closing Thought

Our competitiveness as a country and as a society will depend on our ability to make strategic policy decisions.

1. To remain competitive and maintain our particular concept of society we must strike a balance between the open market and sector regimes.

2. We have to drive innovation by Government taking the risk and being a demanding customer.

3. We need Academia to permit oxygen in the room for commercialization programs to take hold.

We cannot expect to have it both ways. We must have a comprehensive debate in Canada about this.

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Thank You

OttawaApril 9, 2013

Tom Jenkins

Executive Chairman & Chief Strategy Officer

OpenText Corporation

Chair, Canadian Digital Media Network

Advisor to PWGSC, Canadian Defence Procurement

Chair, Review of Federal R&D Spending

Documents

A Private Sector View of Canada’s Research System Ottawa April 9, 2013 Tom Jenkins Executive Chairman & Chief Strategy Officer OpenText Corporation Chair,