Canadian Public Sector Innovation

As the digital economy grows, it is critical that Canada shifts from a resource-intensive market to a tech-based network of learning, business, and government. By measures such as IT investment per full-time employees in the workforce, university IT graduation rates and number of patents registered, Canada is behind and at a disadvantage to other countries. Various technologies such as cloud and analytics are following this pattern. Yet there are times when Canada matches the global curve. This includes the rise of Line of Business (LOB) spending, the use of innovation centres and the proportion of spend on digital vs. traditional or legacy technology.

The 2017 federal budget addressed the continued strengthening of innovation and education in Canada. It was part of the strategy to reverse the late adoption trend and set the roadmap for Canada to become a destination for talent and innovation. The federal government is investing in infrastructure, career training, university accelerators and smart cities. In the first half of 2017 alone, various federal ministries will have committed over a quarter billion dollars in hubs for Georgian College, the University of Windsor and Vancouver’s Wood Innovation Centre. Provincial and local governments are following suite with examples in Cape Breton, Montreal, Cornwall and Niagara Falls.

Public sector programs provide some of the answers to how Canada can be more innovative and progressive in the use of technology. Government programs will create jobs through funds for education and subsidies provided to employers. Federal initiatives will also provide a route, through venture capital, to move startups to increase revenue and reach profitability.

There is a lot of the government can do, but it cannot be expected to drive innovation on its own. The government cannot create the scale or concentration of tech-based firms that the U.S., U.K., and certain AsiaPac countries enjoy. The government can help, but cannot be the primary channel to commercialize innovation. Ideas need to lift off the drawing board and be quickly integrated into existing product lines. This is not a Canada-only issue – there are tons of great concepts that never see the light of day.

The support the government is providing startups and funding programs to increase the technical skills of Canadians will help build our country’s digital economy. The government could do more in terms of innovation in public sector services. Like any organization, the public sector should look at ways of doing things better. There is room for improvement by driving efficiencies, delivering citizen services how, where, and when they are needed, and identify digital technologies to improve infrastructure systems and protect the safety of Canadians.

The public sector can take a page from the same startups they are helping to fund. Government should look to be customer #1 for advances being driven by Canadian-based startups that align with improved service delivery and public policy goals. There are lessons and value in the principals that are shaping innovation such as problem identification, customer/user feedback, experimentation, rapid prototyping, and pivoting or quickly adjusting direction.