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Do you miss your BlackBerry? Canada’s innovation sector does too

by The Novum Times
7 May 2023
in Canada
Reading Time: 8 mins read
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The brand new film BlackBerry is a celebration of the a lot beloved telephone. It stars Hollywood actors and provides a behind-the-scenes sense of the rise and fall of the Waterloo, Ont.-based firm RIM.

However below all that, it is a love letter to innovation. The BlackBerry modified how we work, how we stay and the way we talk.

“How profoundly essential the innovation that these nerds above a diner in Waterloo in 1996 got here up with,” the film’s star, Jay Baruchel, informed CBC Information at a current crimson carpet occasion.

It is easy to look again on the spectacular rise and fall of BlackBerry and deal with the autumn. However Baruchel wished to make a film that celebrated the rise — and the way in which one small Canadian firm modified the world.

“The best way that we take part on this planet, the way in which that we relate to 1 one other, all of it stands on the shoulders of what they created, for higher or worse,” Baruchel stated. 

“They’ve toiled in anonymity for lengthy sufficient. And I would like individuals to know that we innovate and hustle and make as a lot shit as anyone else.” 

A man with grey hair and a striped dress shirt slouches and hugs his body while holding a Blackberry phone, in a crowded room.
The movie BlackBerry, starring actor Jay Baruchel (pictured) tells the story of how an organization from Waterloo, Ont., turned a frontrunner in know-how innovation. (Elevation Photos)

Shortfalls in Canada’s innovation ecosystem

The rise of BlackBerry confirmed Canada is as nicely positioned as any nation on earth to construct and engineer new applied sciences. These engineers above a diner in Waterloo created a wholly new product class. On the similar time, simply exterior Ottawa, engineers at Nortel have been breaking equally essential floor.

After they finally failed, there was no system in place to assist the concepts, and the work that was nonetheless being achieved.

“In a system the place you might have the proper type of innovation coverage and actual innovation atmosphere, the demise of each (RIM and Nortel) would have instantly created a large quantity of small corporations which may shortly scale up,” stated Dan Breznitz.

He is the chair of Innovation Research on the Munk College of International Affairs and Public Coverage. He is additionally the co-director of the Innovation Coverage Lab and a fellow of the Canadian Institute for Superior Analysis (CIFAR).

He factors to Silicon Valley within the U.S. When Solar Microsystems collapsed within the wake of the dot-com bubble, dozens of smaller corporations have been positioned to fill the void. 

“Look the place Apple and Google headquarters at the moment are. They sit on the previous Solar campus,” he stated. 

However as Canada’s tech giants toppled, there was nothing to emerge from the wreckage.

“In Canada, they simply disappeared. When you really take a look at lots of the finest sources that used to belong to Nortel, and BlackBerry, they belong now to Huawei,” Breznitz informed CBC Information. “That is a transparent indication of a horrific failure of innovation coverage and a extremely horrific atmosphere for the creation of innovation.”

‘We have to return to fundamentals’

The co-CEO of RIM and the person who helped construct the BlackBerry into a worldwide must-have, stated there’s an pressing have to want to repair Canada’s innovation drawback.

“I’ve by no means been extra satisfied that we have to return to fundamentals – construct capability for the knowledge-based financial system inside our coverage group,” stated Jim Balsillie, the chair of the Council of Canadian Innovators and founding father of the Centre for Worldwide Governance Innovation and the Centre for Digital Rights. 

A look at a laptop screen with a question and an AI-generated answer.
Here is a take a look at the AI-generated reply from ChatGPT for the query ‘What can AI provide to humanity?’ seen on a laptop computer display screen earlier this yr in London. (Leon Neal/Getty Photos)

He’s a long-standing advocate for higher innovation insurance policies in Canada. 

“Canada has no probability of getting an innovation-economy till we get our policymakers to grasp which manner is up,” he wrote in an e-mail to CBC Information. 

If something, the worldwide atmosphere has develop into more difficult than it was when Balsillie was constructing BlackBerry.  Economists like Royce Mendes, managing director on the monetary providers firm Desjardins, stated the strain on Canada is even larger now.

He factors to current developments round AI and options like ChatGPT. 

“Innovation is working at a breakneck velocity, we have to sustain. We can not use insurance policies or mannequin the financial system in the identical manner we have been within the final century; issues are very totally different immediately,” Mendes informed CBC Information.

Step one in getting an innovation plan is ensuring coverage makers know what innovation means. Which will sound simplistic, however most consultants agree politicians do not all the time have a superb deal with on the distinction between invention and innovation.

An invention, stated Breznitz, is a brand new thought whereas innovation is about constructing a market and a system of assist to assist foster extra innovations.

‘Innovation is unsure and dangerous’

As soon as that’s settled, the subsequent problem is convincing Canadian companies to innovate. And Breznitz stated that is more durable than you might suppose.

“Enterprise leaders will not be silly,” he stated. “The revenue margins of Canadian companies are literally extraordinarily excessive; innovation is unsure and dangerous.” 

An atmosphere the place companies could make revenue with out a lot danger is certain to battle with innovation, he stated. When you look on the greatest corporations in Canada, from mining to forestry, from telecommunications corporations to banks, there is not numerous competitors and the regulatory hurdles are important, he added.

Companies like Shopify have proven how innovation can drive progress and revenue. Monetary providers corporations like WealthSimple have modified the way in which Canadians take into consideration the banking sector.

Shopify headquarters in Ottawa in May 2022.
Shopify’s headquarters in Ottawa is pictured in Could 2022. (Sean Kilpatrick/The Canadian Press)

However that stage of innovation stays uncommon in Canada’s elite enterprise circles.

And regulatory obstacles make entrepreneurs suppose twice earlier than attempting to construct one thing in Canada.

Breznitz stated an entrepreneur has to think about whether or not they can construct a product. Then that entrepreneur has to consider whether or not clients will purchase the product. However even when you handle to do each, you continue to do not know when you’ll be allowed to promote that product in Canada.

“So a number of entrepreneurs and firms simply both do not trouble to attempt, as a result of the uncertainties are so excessive, together with regulatory uncertainty. Or we simply transfer to the U.S. to try this. And so they say, excuse my language ‘f–k it,'” stated Brenitz. He factors to rules in the whole lot from new inexperienced know-how, to monetary providers that forestall companies from even attempting to launch in Canada.

Mendes agrees an excessive amount of regulation might be an impediment. However he stated the true trick is discovering a stability, pointing to the banking disaster which clobbered the U.S. monetary system.

“A heavy hand on rules typically can shield the Canadian financial system: 2008-2009 is a main instance of that,” stated Mendes. “There is a cautious stability that we have to strike between regulation, competitiveness and innovation.”

For all the issues, everybody interviewed for this text expressed a eager sense of optimism in regards to the future. They are saying Canada has superb universities which have churned out a extremely educated workforce. And slowly, they are saying, politicians are taking motion.

In February, the federal authorities unveiled the Canada Innovation Company, with a hefty $2.6 billion price range over 4 years.

The CIC will present funding ranging from $50,000 to $5 million per mission. Bigger-scale R&D initiatives may land as a lot as $20 million per mission.

A woman in front of Canadian flags looks up.
Deputy Prime Minister and Finance Minister Chrystia Freeland ponders a response as she speaks throughout a information convention earlier than delivering the federal price range earlier this yr. (Adrian Wyld/The Canadian Press)

Breznitz is being heralded because the architect of the CIC. He sounds cautiously optimistic about its prospects for fulfillment.

“In two or three years, we must always already begin to see some change,” he stated. “After which 15 years from now we’ll say, ‘Wow, we really did it.’ Nevertheless it’s a really huge if.”

Probably the greatest components of the BlackBerry film is watching entrepreneurs Mike Lazaridis and Jim Balsillie hustle to develop and construct. Their crew is flourishing. And the world fell in love with their product.

Coverage alone cannot replicate that. However authorities coverage completely can put in methods that assist entrepreneurs thrive and mitigate failures after they occur.



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