Creating Value In Canada Through Innovation

Submission

Xerox Canada appreciates the Government of Canada's effort to obtain public policy input on Canada's Digital Economy Strategy. We believe sound business strategy matters, but values matter more. Values inform leadership, leadership shapes culture and culture quite often determines the success or failure of strategy. We are inspired by customer focussed innovation, diversity, sustainability and responsible corporate citizenship. More than three decades ago we promised we would make strategic investments in Canada's knowledge infrastructure by establishing a world–class research centre in Canada. Today Xerox Corporation is the only multi–national, business process and document management technology company conducting value–added, advanced materials research in Canada. As a leading ICT company and one of the Top 100 R&D Spenders in Canada, we have become a magnet for talent and one of Canada's most socially responsible companies. We made a promise to Canada and we intend to keep it.

Innovation is a critical success factor for Canada's Digital Economy Strategy. Innovation is the difference between good ideas and great outcomes. Given its inviting corporate taxation framework, highly educated workforce and numerous post–secondary institutions with internationally recognized competencies in materials science, physics, chemistry, engineering and related research, we see Canada as a natural platform for innovation. We continue to leverage the Canadian advantage through the global materials mandate assigned to the Xerox Research Centre of Canada (XRCC) which funds collaborative research at over a dozen leading universities across Canada. As a result, every digital device we offer throughout the world contains technology that was either invented or developed in Canada at the Xerox Research Centre of Canada (XRCC. This has helped establish Xerox Canada as one of the highest performing operating entities among the 160+ countries within which Xerox operates. Canada creates value through innovation but together we can and must do more.

In addition to contributing to the Digital Economy Strategy consultation through the Information Technology Association of Canada, we offer the following additional comments:

Innovation using Digital technologies

• While it is important to pursue the long–term goal of establishing an overall platform for innovation across all sectors in the economy, methodically leveraging targeted investments in strategic sectors of strength and gradually broadening scope is more likely to achieve sustainable results within a shorter timeframe than attempting to be all things to all sectors at once. In the process of developing its digital economy policy framework the Government of Canada may want to take stock of the current state of readiness of the various sectors. This would help identify areas of strength to be leveraged on a priority basis, at potentially lower input cost than initiating a one size fits all approach across the entire economic landscape in the first instance. As strategic measures take hold and yield measurable results the effort could be gradually expanded with appropriate adjustments in application to a broader range of sectors.
• The Government of Canada has been deliberate in providing tax incentives for productivity enhancing technology investments as reflected in such measures as the recently adjusted CCA rates for select ICT acquisition. However, strategic investments in technology are necessary but not sufficient to encourage firms to adopt forward thinking approaches to modernizing their business processes and associated infrastructure. Businesses decision makers (particularly in smaller enterprises) need access to trusted advice that can help improve their capacity to harness ICT as a business enabler with respect to enhanced workflow and process optimization. In addition to helping illustrate practical opportunities for productivity improvement, this would help strengthen confidence and ultimately stimulate value–added ICT adoption. Rather than merely encouraging increased investment in hardware, ICT vendors should demonstrate the capacity and willingness to develop a genuine understanding of the real business needs of enterprises operating in Canada. ICT adoption should serve the virtue of the business rather than the reverse.

Growing the ICT Industry

• Various Canadian thought leaders have suggested that it is necessary to enhance our culture of ambition in order to successfully develop and implement a Digital Economy Strategy. The Government of Canada may want to consider developing a national recognition program. A merit–based, pride building, validation effort in the form of a highly prestigious national award for companies that make compelling contributions to Canada's economic prosperity, specifically through ICT driven innovation. The award should entail criteria that speak to the art, science and commerce of innovation with particular emphasis on recognizing companies that have exemplified ICT value creation, successful commercialization of research and/or ICT adoption that have generated remarkable economic, environmental and social outcomes. The award could be subject to scrutiny by a highly respected and highly diverse panel of established thought leaders and presented by the Prime Minister annually.
• As outlined above, Canada's inviting corporate taxation framework, highly educated workforce and numerous post–secondary institutions with internationally recognized competencies in materials science, physics, chemistry, engineering and related research make Canada and attractive platform for innovation. This is why over time we have invested in advanced R&D through the Xerox Research Centre of Canada (XRCC. Among other things the willingness of Canadian governments (federal and provincial) to invest in world–class research infrastructure and research operations has enabled win–win scenarios such as the Xerox initiated, public–private, nanotechnology "open innovation" partnership project with the National Institute for Nanotechnology, the Government of Alberta and the University of Alberta. One of the first of its kind in Canada. In addition to increasing Canada's competency in the area of advanced nanotechnology research, the project is advancing the frontier of human knowledge with respect to the fundamental nature and behaviour of nanomaterials.
• In terms of talent, foreign credentials recognition, enhanced immigrant settlement and integration services, greater levels of meaningful inclusion and authentic efforts to leverage diversity are all critical success factors for attracting talent to Canada from around the world. With an employee base composed of some of the most gifted scientists from over 35 countries around the world, generating over 150 patentable ideas per year, the Xerox Research Centre of Canada (XRCC is a wonderful example of the measurable economic and social benefits of leveraging diversity in pursuit of innovation.

Building Digital Skills

• An increased focus on science, technology engineering and math (STEM) related programs, coop programs and additional private sector engagement with, and support for, secondary and elementary school STEM efforts and mentoring opportunities.
• ICT enabled distance learning for remote regions, and additional ESL programs in rapidly growing urban centres will go a long way toward improving "digital skills" and building the future pipeline of knowledge workers.
• Continue to invest in specialized, high–end advanced research infrastructure in Canada, co–located near leading research intensive universities with world class capacity in areas of unique Canadian strength: materials science, chemistry, physics, nano–technology etc. Authentic effort to help build knowledge capital in Canada and advance the cause of moving great ideas from mind to the market through successful commercialization of research.
• Utilize integrated teams of highly collaborative researchers taking practical "problem–based" approaches to their work. Chemists working alongside, physicists, mechanical engineers, electrical engineers and even ethnographers who understand workflow, and the human behavioral interface with technology in the workplace. Strategic partnerships with leading Canadian institutions using the "open innovation model" as exemplified in the Xerox initiated public–private sector partnership with the National Institute for Nanotechnology, the Government of Alberta and the University of Alberta.
• Our efforts have attracted some of the best minds from all over the world. We continue to actively recruit highly skilled international talent to Canada. We also have a senior researcher recruitment network with Canadian universities and offer 35 advanced coop placements at our research facility each year drawn from various universities across the country. These efforts are combined with ongoing funding partnerships with leading researchers at academic institutions across Canada.