The Role of End User Innovation in Canada's Digital Future

Summary

Canada's digital future should not rely on industry alone. Recent research and industry best practices show that end user innovation is invaluable for providing the revolutionary change required for a healthy market of innovation.

Submission

Introduction

My interest in Canada's digital economy is that of a citizen, creator, and participant. My professional background is in electrical engineering, computer science, and intellectual property. This paper is written to urge the Canadian government to not forget the value of user innovation when formulating a digital strategy.

Too often, I hear politicians, public servants, and the media equating investment by industry with innovation. While there are no doubt strong correlations between the two, an important part of the equation is that of the end user or consumer. In fact, for long–term gain, we must focus on enabling this aspect of the innovation cycle.

Digital technologies provide unprecedented opportunities for end user innovation. It has never been easier for an individual or small team to implement a new idea that has the power to change the world. The inventor has moved from the garage to the computer in the bedroom.

Market Problem Identification

The disconnect between producers and consumers is well understood. The consumers, either people or companies, are those with a particular problem. The producers are those with the skills necessary to solve the problem. Unfortunately, it is often difficult for producers to fully understand the problem, or for consumers to adequately express it.

Consumers have been devising their own solutions to their problems for centuries. Often, it is only once a particular solution has been defined that industry takes the lead in improving the solution.

When Sir Tim Berners–Lee created the world's first web server, he was not working for a software company. He was working for CERN, and had a specific problem he was trying to solve. He was an end user, building on technologies available to him at the time. When he chose to share his solution freely with the world, the World Wide Web was born.

Disruptive Innovation

Industry is very good at evolutional improvements to technology, but disruptive innovation provides the revolutional change healthy markets require. These disruptive innovations often come from those with a unique outlook on the problem. The solutions are often inferior to the incumbent technology, suitable only for a niche market, but eventually improve until they disrupt the marketplace.

This phenomenon has repeated itself throughout history many times, and has been well–documented by Clayton Christenson in his book, The Innovator's Dilemma. To take just one famous example, Western Union declined in 1877 to purchase Alexander Bell's telephone technology, because it was only suitable for short–distance communications at the time.

Potential Barriers — Educational

The first potential barrier to end user innovation that I will discuss is that of education. Technically speaking, Canada is well–served by our professional organizations. As a graduate of Applied Science from Queen's University, I can testify that my technical education has well prepared me for my current career.

However, inventors with a great idea, but who lack the knowledge or resources to turn it into a profitable, sustainable business, are not likely to change the world. To take a concept through to a business takes not just technical know–how, but real–world understanding.

To ensure that tomorrow's great idea doesn't die on the shelf, we should ensure that students have a greater understanding of general business concepts, including marketing and finance. Further, we should provide greater resources for would–be innovators to find the assistance they need to learn how to attract investment, build a business case, and grow their business.

Potential Barriers — Legislative

The recent inclusion of legal protection for technological protection measures has significant potential to hinder end user innovation.

End users often begin by modifying off–the–shelf equipment or software to suit some new purpose. For example, end users discovered how to modify their $50–$100 wireless routers to include functionality present only in commercial grade routers. Others completely repurposed their devices, creating everything from email servers to remote weather stations. No copyrights were violated in this process.

Some may argue that this undermined the value of the original equipment. We must keep in mind, however, the goal is not to maximize profits for any particular market participants, but to further our innovative capacity. Many manufacturers are already seizing on this new market opportunity to provide devices that are more easily end user modifiable.

Innovations like these are often the result of those commonly called "hackers". I have heard many disturbing characterizations or opinions of these individuals, equating them with common criminals. Innovators such as these should be encouraged, not prosecuted. They are part of the innovation cycle, not working against it.

If the legislation introduced in C–32 banned the circumvention of technological protection measures, this could serve as a large disincentive to these innovators. Their efforts to collaborate could be stopped by the mere threat of legal action. Any solution they ultimately choose to bring to market could be opposed.

Conclusion

The role of the end user innovator must not be overlooked when formulating Canada's digital strategy. It may be easier to encourage existing market participants directly, though funding and tax incentives, but end user innovation requires encouragement through more indirect means.

This approach may not be popular with some, particularly with the aforementioned incumbents. However, if the goal is to further Canada's innovation potential, we must not allow short–term promises to compromise our long–term prospects.