The Innovation System is Critical to Development of Alberta's Knowledge Resource
The imaginative, creative people who create and apply knowledge in new ways to improve the quality of Alberta's economy, communities, and environment are the heart of the innovation system, which is composed of thousands of people working in hundreds of institutions and businesses across the province.
The Innovation System includes not only Research and Development (R&D), but also the dissemination, commercialization, and application of knowledge and technology. Although government and the universities are major players in the Innovation System, the largest role is played by enterprises in the private sector that convert technology into products and services that produce socio-economic benefits for Albertans.
The Innovation System consists of four elements:
- World Knowledge Reservoir
- Research
- Technology Linking
- Commercialization or Application

Figure 1. Graphic representation of the Innovation System showing linkages between elements and flow of people and ideas.
The World Knowledge Reservoir consists of the accumulated store of global knowledge. It represents a combination of recorded knowledge and knowledge held in the heads of people.
Research involves creation of new knowledge. The R&D activities occur primarily in universities, R&D groups in businesses, and R&D institutes. Researchers develop new knowledge by combining ideas from the World Knowledge Reservoir with their own ideas and testing them through experimentation.
Through its world class research capability in strategically important areas Alberta can:
- Access new knowledge prior to publication through world-wide research networks
- Evaluate emerging knowledge to identify strategically important developments
- Develop the pool of world-class people necessary to attract and retain businesses that use the emerging knowledge.
Technology Linking occurs through organizations established to increase the flow of new knowledge from the Research Component to the Commercialization / Application Component. Organizations such as the Alberta Research Council, TRLabs, the Alberta Microelectronics Centre, the Industrial Liaison Office (ILO) of the University of Alberta, and UTI in Calgary are examples of the Technology Linking organizations in Alberta.
New knowledge is transmitted in four primary ways:
- People -- The most important way that new knowledge is transmitted is in the heads of people, the researchers, who leave the research institution and enter the workforce. This mechanism is extremely important because the people carry not only the knowledge but also the ability to further modify existing knowledge to generate new knowledge.
- Publication in the open literature -- The majority of new knowledge is passed into the World Knowledge Reservoir through publication.
- Patenting and licensing -- Where the emerging knowledge has the potential to be commercially important, patent protection is commonly obtained. Business enterprises are permitted to use the new knowledge through a license issued by the patent holder.
- New company start-up -- The new knowledge may be applied directly by the inventor through a new company.
Commercialization or Application involves 1) businesses that market technology-based products and services based on new knowledge and technologies; 2) businesses that increase operating efficiencies by using new technology to reduce production costs; and 3) government and not-for profit organizations that apply new knowledge and technology to enhance social, cultural, and environmental quality of life.
The successful operation of the innovation system results in
- growing companies that are internationally competitive,
- increasing, high quality employment for Albertans,
- increasing tax revenues for the Alberta government, and
- enhanced quality of life for Albertans.