Standards - Powering Innovation

2002-10-14

Innovation is a term we hear a lot about in the news, and the launch of Canada's Innovation Strategy in February 2002 has brought the concept even more to the forefront. But what does innovation mean? Simply put, innovation is about coming up with new ideas to create value, and putting these ideas to work in our businesses and everyday lives. Innovation can be found not only in research and development departments and high technology industries but also on farms where new tools are being used to increase crop yields, and within organizations that are applying new methods to improve production and increase their competitiveness.

The Standards Council of Canada (SCC) may not be the first place you think to look for innovation. In many ways, though, the work of the SCC and its' partners in the National Standards System (NSS) fuels innovation and contributes to the progress and advancement of Canadian products and services. Not only do standards-related activities help foster quality, performance and technological innovation in Canadian goods and services, but standardization also enables Canadian products to compete in global markets and preserve the standard of living that Canadians enjoy.

Standardization touches every aspect of our lives, from the simplest screw to the most complex information technology. As a result, standardization is powering innovation-led growth in Canada's knowledge-based economy and around the world. Take biometric technology for example. Biometric technology-the identification through the automated recognition of faces, finger imaging or the pattern of blood vessels in the eye-has gained momentum as a solution to security issues. Canada is playing an important role in the development of international standards for this new technology, which could eventually be utilized in passports and travel documents.

Standardization is necessary to, and often forms the basis for successful innovation. A report by the German Institute for Standardization (DIN) noted the following economic benefits:

• Standards contribute more to economic growth than patents and licenses;
• Transaction costs are lower when standards are used;
• Companies that participate actively in standards work have a head start on their competitors in adapting to market demands and new technologies; and
• Research risks and development costs can be reduced for companies contributing to the standardization process. [1]

Standardization is an important and attractive policy tool for regulation and trade and in improving Canada's access to global markets. The SCC and its partners work closely with federal, provincial and territorial government departments in promoting standards as an alternative to regulation. Since standards are an efficient means of achieving regulatory objectives and are often referenced in legislation, standardization processes offer greater flexibility than regulation in responding to not only innovative and technological changes, but also to health and safety concerns.

Canada's Innovation Strategy

The Government of Canada has put forward an Innovation Strategy to drive economic growth and social development over the next decade. This is a long-term commitment that encourages partnerships among government, business, academia and citizens to make Canada's future economic potential and performance in the global economy even better.

The strategy is presented in two publications. One paper by Industry Canada, Achieving Excellence: Investing in People, Knowledge and Opportunity, examines the role of innovation in the Canadian economy and proposes goals, targets and federal priorities in the key areas of:

• Knowledge performance - creating knowledge and bringing ideas to market more quickly, as well as increasing investment by all sectors in research and development.
• Skills - ensuring that Canada has enough highly qualified people to compete in a knowledge based economy.
• The innovation environment - modernizing our business and regulatory policies to support and recognize innovation excellence while protecting our quality of life.
• Strengthening communities - supporting innovation at the local level so our communities continue to be magnets for investment and opportunity.

The second paper by Human Resources Development Canada (HRDC), Knowledge Matters: Skills and Learning for Canadians calls for a collaborative approach between all sectors of society to ensure Canadians have the tools they need to participate in Canada's workplace.

Since the launch of the strategy in February 2002, the Government of Canada has been involved in extensive consultation with Canadians. Regional summits have been held across Canada to allow Canadians an opportunity to contribute their voice to the national strategy. In addition, representatives from various sectors of the economy were invited to develop action plans for their sectors containing concrete commitments for improving their innovation performance.

The SCC and the NSS - Partners in Innovation

To make Canada a leader in innovation, the SCC, as coordinator of the National Standards System (NSS) – Canada's network of people and organizations involved in the development, promotion and implementation of standards – will continue to incorporate the interests of industry, consumers, regulators and the Canadian public. The NSS is a model for standards coordination that instills business and consumer confidence and encourages innovation. With balanced representation, decisions based on consensus and a single voice in international issues, the NSS model brings consistency and coordination to a complex field. According to a recent study on the Economics of Standardization, one important aim of standardization is to help create a strong, open and well organized technological infrastructure that will serve as a foundation for innovation-led growth [2]. The SCC administers the NSS to do just that - allow for the provision of a standardization infrastructure which accommodates innovation and promotes competitiveness in Canada. The SCC will continue to offer a variety of programs and services that supports Canadian firms. The challenge is to ensure that Canada's marketplace framework policies continue to encourage and support innovation.

Innovative Stories, Innovative Ideas

A Special Edition of CONSENSUS magazine published in the autumn of 2002 includes additional examples of standards development, conformity assessment and cooperative initiatives that serve to fuel Canadian innovation.

 

[1] German Institute for Standardization, Economic Benefits of Standardization, 2000.
[2] Manchester Business School, Economics of Standardization, 2002 (p.2).

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This article first appeared in Volume 29 of CONSENSUS Magazine, 2002.  The information it contains was accurate at the time of publication but has not been updated or revised since, and may not reflect the latest updates on the topic.  If you have specific questions or concerns about the content, please contact the Standards Council of Canada.

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