Chris Henderson. (Darren Brown, OBJ)

Closer collaboration between Ottawa's public- and private-sector research facilities is needed if the city is to resurrect the innovation-based growth that drives the economy, says the head of a local economic committee.

The Ottawa Partnership (TOP) chair Chris Henderson says there are currently gaps in Ottawa's "innovation synapses."

"We spend over $3 billion per year for innovation in Ottawa. But is it leveraging results? The short answer is no," says Mr. Henderson, a former chair of OCRI (the Ottawa Centre for Research and Innovation).

He says the shortage of venture capital flowing into Ottawa, combined with the large amount of R&D taking place overseas, should motivate business and political leaders to draft an innovation agenda that will create new advanced industrial clusters in sectors such as life sciences or clean tech.

"Our companies that we have now are going to do fine, but we're not going to have many more if we don't make some course corrections," says Mr. Henderson, noting Waterloo and Markham were home to more fast-growing companies than Ottawa in a recent Deloitte survey.

Mr. Henderson has been active in trying to create an 'Innovation Hub' akin to Toronto's MaRS Discovery District. Estimated in 2007 to cost between $100 million and $120 million, the Innovation Hub would bring entrepreneurs, researchers, public officials and professional service providers together in a single downtown location.

Mr. Henderson declined to provide an update on the progress of forming the Innovation Hub. Officials were said to be finalizing a business plan with Ontario's Ministry of Research and Innovation in July.

Arguing Ottawa heavyweights such as Cognos have hit a plateau, Mr. Henderson says new companies need to cultivate in an environment that combines entrepreneurs, capital and mentors.

In addition to working more closely with the private sector, the federal government can focus on improving the nation's productivity and recalibrate its economic development efforts to be more urban-focused, rather than regional-centric.

"It's important to recognize that innovation has driven wealth creation in Ottawa, no matter how you cut it. It's fine when people have a job in the public service, but that's income, and not wealth. Wealth can be used to create more jobs."

Mr. Henderson will speak about the future of innovation in Ottawa at the next OBJ Mayor's Breakfast Series, this Thursday, Oct. 9 at 7:30 a.m. at Ottawa City Hall.