Innovation Is the Name of the Game

In “Romeo and Juliet” the Bard of Avon (a.k.a. Shakespeare, William) opined that a name, in and of itself, doesn’t carry much weight.

“What’s in a name?” he wrote. “That which we call a rose, by any other name would smell as sweet.”

He of course is implying that the name something carries is irrelevant compared to its substance.

An example of this exists far from Verona’s cobbled streets in the nation’s capital. New residents abound following the recent election, and some of those new residents have new titles.

The Minister of Industry, for instance, is now the Minister of Innovation, Science, and Economic Development. Navdeep Bains, an MP from Ontario’s Mississauga- Malton riding, now heads this important government agency.

In a letter to Bains outlining his plans for the post, Prime Minister Justin Trudeau stated that in his new role, Bains’ goal “will be to help Canadian businesses grow, innovate, and export so that they can create good-quality jobs and wealth for Canadians.”

It’s interesting to note that the word innovation has taken a prominent place in this old department’s new name.

It’s also interesting that innovation now is closely linked with economic development in name as well as in practice. Innovation isn’t easy. For every Elon Musk there are many more anonymous failures. For every iPod® there is a LaserDisc®.

Economic development isn’t easy, either. The new government must walk a fine line between encouraging export growth with a low loonie and stemming inflation, which also can be caused by a weakened dollar. So what will this mean for manufacturers? In the short term, at least, it will mean that things will cost a little more. Machine tools and raw materials ordered from abroad will be more expensive to buy. A longer-term view likely will see an increase in exports to our largest trading partner—the good ol’ U.S. of A.—as well as to other countries with which we have trade partnerships.

Minister Bains will need to work with the country’s regional development agencies to make strategic investments in communities and give aid to industry segments that innovate and create wealth.

For those communities that traditionally have relied heavily on one sector for economic opportunities, investments that help diversification will be necessary. After all, we recently have seen what tumbling oil prices have done to economic development in northern Alberta and southern Saskatchewan.

“Communities that have relied on traditional manufacturing are likely to require specific strategies to support economic growth,” wrote Trudeau.

Innovation supported by all levels of government, as well as the private sector, will lead to economic development.

Let’s hope we have a happier ending than a certain Montague and Capulet did.