I’m trying to calm down but really!!!! Roger Martin, Dean of the Rotman School of Management at the University of Toronto gave the Globe & Mail an interview last week where he opined that Canadian business schools are not getting enough money which is, in turn, affecting innovation. I hope the interview is a form of performance art rather than a reflection of Martin’s thought processes.

(Please accept my apologies but I’m having trouble with my links today so I will have to give you the URLs.) From the March 16, 2011 article Canada will shrivel under business-school neglect, dean says (http://www.theglobeandmail.com/report-on-business/managing/business-education/canada-will-shrivel-under-business-school-neglect-dean-says/article1942997/page1/) by Gordon Pitts,

What makes a country prosperous is not investment in science and technology. [emphasis mine] It is businesses producing high paying jobs by having unique products and processes that a customer needs. Yet we have an economic development policy that focuses incredibly tightly on a very narrow part of the economy with no demonstration or proof that it is particularly helpful. Meanwhile, we complain about our companies not being innovative enough or globally competitive enough, and we send them off to battle with much less education than their competitors.

We hear people say, ‘Well, what we need are scientists and engineers running these companies because these are tech companies.’ But if we in Canada would like to have companies like Hewlett-Packard, IBM, Microsoft, Apple, Cisco and Intel, find out how many of their CEOs have science and tech degrees. The answer is there are a lot more MBAs than science and technology degrees.

All of the companies cited were founded by people with science and technology degrees as Nassif Ghoussoub in A business dean’s rant: Ignorance of the facts or pure “Chutzpah”? (http://ghoussoub.wordpress.com/2011/03/20/a-business-dean%E2%80%99s-rant-willful-ignorance-or-pure-%E2%80%9Cchutzpah%E2%80%9D/#more-3241), and James Colliander, Rotman Dean to Government: Give the Basic Research Funding to Business Schools not Scientists (http://blog.math.toronto.edu/colliand/2011/03/17/rotman-dean-wants-the-money-targeted-for-science-research-2/) note.

Martin never does explain how more business education money will actually translate into more innovation in Canada. In fact, he never explains how it has worked anywhere else. Strangely, he does not mention the latest economic meltdown due to business practices. If more education and research benefited business and the economy so much then why the meltdown that our US neighbours to the south have experienced so strongly? By Martin’s reckoning the US economy should be in much better condition than it is what with all that money going to support business students.

I was a little curious as to Martin’s own background and found this in an Aug. 1, 2006 article by Robert Berner for Bloomberg Business Week (from http://www.businessweek.com/magazine/content/05_31/b3945417.htm_),

A Canadian native and graduate of Harvard Business School, the 48-year-old Martin left a position as co-head of a consulting firm to take the Rotman post. He’s working with Patrick Whitney, director of the Institute of Design, and David Kelley, co-founder of design consultancy IDEO and head of the new Stanford Design School, to create a new design-based curriculum that can be used in business schools. Martin practices what he preaches: He advises Procter & Gamble Co. (PG ) chief A.G. Lafley, among other chief executives.

So let me get this. The dean of a business school whose own educational background appears to be largely business (according to the Wikipedia essay about him [http://en.wikipedia.org/wiki/Roger_Martin], he has a Bachelor of Arts in Economics from Harvard College in addition to his MBA from Harvard Business School) and who worked as a management consultant prior to becoming a dean thinks that Canadians need more business education. What’s that old saying? If you’re a hammer, everything looks like a nail.

As for the statistics he offers about the amount of research money going to business (from the Pitts article),

For example, of federal research money from the three major funding councils, business gets 1.7 per cent of the funding but it gets 17 per cent of the students. Health Sciences have 36 per cent of funding and 11.2 per cent of students – and that’s understandable with all that expensive R&D. Natural sciences and engineering have 39 per cent of funding and 28 per cent of students.

In all the social sciences and humanities, except business, there are 44 per cent of students and 24 per cent of research funding. So the social sciences get hit, but their hit is less than 2 to 1. In business – which is all about making our country competitive – it’s a 10 to one cut.

It does seem a pretty pitiful amount of research money is going to business research (Note: I would like to know how Martin has derived his statistics). Mind you a fair amount of the material produced by Statistics Canada is used for business research purposes while a lot of the quantitative social science research has to be gathered by the social scientists themselves. And, Nassif points out that a big chunk of the 2009 budget research money going for  social sciences and humanities research was in fact intended for business studies.

… we should not forget that, as recently as 2009, business schools got a preferential treatment from the federal government. Indeed, after having cut the Tri-council by 5%, the 2009 stimulus federal budget proceeded to earmark the $17.5-million assigned to SSHRC for graduate scholarships towards students in business and finance.

Business is making inroads in many areas not just in social sciences and humanities funding. A March 20, 2011 article by Tom Spears for the Ottawa Citizen indicates that business and economic interests will be driving research in this country in a way that should warm Martin’s heart (from http://www.ottawacitizen.com/business/boss+orders+scientists+focus+market+drivers/4472949/story.html),

There’s radical change at the National Research Council, Canada’s biggest science institute, as the new president orders all staff to direct research toward boosting economic development and technology, with less time for pure science.

Starting this spring, 20 per cent of research money, and all the capital funds that buy expensive lab equipment, will be removed from existing budgets and directed where the president and vice-presidents choose.

Eventually, 80 per cent of research funds will be redirected this way.

NRC president John McDougall has announced to all staff that he wants research that is “successfully deployed and used to benefit our customers and partners in industry and government.”

His memo, dated March 2, warns that “history is an anchor that ties us to the past rather than a sail that catches the wind to power us forward.” [emphasis mine]

The new system, with most funding awarded by top management, will put existing staff in a position of having to apply to their employer to keep doing their own work. So far, they aren’t faring well: McDougall notes that his scientists have suggested more than 70 research areas. But most of these have no clear “market driver” or “purposeful direction,” he writes.

If business education is in as much trouble as Martin suggests, I’d like to see data that supports his thesis rather than a lot of numbers being thrown about and what amounts to performance art for the Globe and Mail.

By the way, Tom Jenkins, the head of the expert panel that convened the public consultation on innovation (it’s correct title is: A Review of Federal Support to Research and Development), is the Executive Chairman and Chief Strategy Officer for Open Text. From the Open Text webpage about the Board of Directors (http://www.opentext.com/2/global/company/company-directors.htm),

Mr. Jenkins is Executive Chairman and Chief Strategy Officer for OpenText. From 1994 to 2005, Mr.Jenkins was President, then Chief Executive Officer and then from 2005 to present, Chief Strategy Officer of OpenText. Mr. Jenkins has served as a Director of OpenText since 1994 and as its Chairman since 1998. In addition to his OpenText responsibilities, Mr.Jenkins is the Chair of the federal centre of excellence Canadian Digital Media Network (CDMN). He is also an appointed member of the Social Sciences and Humanities Research Council of Canada (SSHRC), past appointed member of the Government of Canada’s Competition Policy Review Panel and past appointed member of the Province of Ontario’s Ontario Commercialization Network Review Committee (OCN). Mr.Jenkins is also a member of the board of BMC Software, Inc. a software corporation based in Houston, Texas. He is also a member of the University of Waterloo Engineering Dean’s Advisory Council, GRAND, the federal research centre of excellence for digital media, a director of the C.D. Howe Institute, a director of the Canadian International Council (CIC) and a director of the Canadian Council of Chief Executives (CCCE). Mr.Jenkins received an M.B.A. in entrepreneurship & technology management from Schulich School of Business at York University, an M.A.Sc. in electrical engineering from the University of Toronto and a B.Eng.& Mgt. in Engineering Physics and Commerce from McMaster University. [emphases mine]

I gather Mr. Jenkins decided on an education that spans both engineering and business.  Perhaps innovation is better served by multidisciplinary interests over the single-minded pursuit of more money for the Rotman School of Management.

ETA April 20, 2011: Nature has weighed in about John McDougall and his National Research Council directives (from the April 19, 2011 news article by Hannah Hoag),

Canada’s largest research entity has a new focus — and some disaffected scientists. On 1 April, the National Research Council (NRC), made up of more than 20 institutes and programmes with a total annual budget larger than Can$1 billion (US$1 billion), switched to a funding strategy that downplays basic research in favour of programmes designed to attract industry partners and generate revenue. Some researchers suggest that the shift is politically driven, because it brings the agency into philosophical alignment with the governing Conservative Party of Canada, which is in the middle of an election campaign.

But the news has rekindled anxiety over how Canada’s government has been directing science funding — criticisms that have grown sharper as the federal election on 2 May [2011] approaches.