The Good, the Bad, and the Ugly: A (Brief) Analysis of Our State of Technological Advancement and Innovation in the Public Sector

A Rapidly Changing Technological Landscape 

Technology is widely thought to advance the human race. To simplify life. To enable interconnectedness. To drive equity. Several vital industries are currently missing out (or decades behind) on the advantages of rapidly-advancing technology, and our economic system, combined with a society-wide individualistic mindset, might be to blame. On the flip side, the high rates of innovation in particular industries can exacerbate the socio-economic divide that has plagued our world—and will likely continue to do so. 

Technology companies are revolutionizing the world in which we live, changing the way we think and the way we operate. Apple's iPhone has set the standard for smartphone interactivity and connectivity. Tesla's electric vehicles have shifted the whole auto-vehicle industry. Amazon has given new meaning and platform to the world of e-commerce. The trend in each of these cases, however, is the consumer-centric focus—creating new options primarily for those that can afford them. In a society fuelled by capitalism and driven by profit, how many industries are lacking the benefits of modern technology—decades behind the large waves of advancement—due to little to no profit potential and low demand? Acknowledging the various incentives, capabilities, and barriers, that form the source of innovation inequity is the first step in working towards more holistic (and conscious) innovation. 

As some industries outpace others with continuous advancements, the carry-over to society also materializes in the form of a greater wealth divide. Increases in autonomous capabilities and efficiency, as a result of new and improved technologies, are translating to the demolition of low-wage, low-skilled labour roles; the incremental jump in profits that businesses realize serve to enhance their financial position—or line the pockets of higher-level employees. A 2021 study by the University of California, Los Angeles, that analyzed the wage impacts of Brazilian firms adopting broadband, found substantial variance in the wage increases. While average employees saw wages increase by 2.3%, those in managerial roles benefitted from a rise of 9% and the board of directors enjoyed a 19% jump in income. With an increasing need for employees who possess skills and abilities in the digital space rather than manual effort, the opportunities for many low-skilled workers are dwindling. This ultimately raises an important question: do the widespread positive benefits to the public of new technology implementation outweigh the socio-economic divide and/or job displacement that many workers must face?

Lagging Rates of Innovation and Modernization Across Public Sector Institutions  

Education  & Learning 

While technology has advanced drastically in the realm of personal electronics and devices, those changes have not been replicated in classrooms. Despite a meta-analysis of 225 studies of undergraduate STEM teaching methods finding that students are able to more effectively learn through stimulating ‘active learning’ techniques rather than lectures, teachers and professors still often resort to the default: standing and talking at students for extended periods of time (whether virtually or not).   

Although a wide range of technologies that have potential for educational use exist, from virtual reality headsets to artificial intelligence, the issue at hand will not change—and this is the case for reasons that go beyond the profit motive. While institutions may not want to bear the substantial financial costs of adopting new and risky technologies, educators are also often resistant to change. They can be more comfortable sticking to methods they were taught with, lack incentive to change their approach, or fear being replaced by innovations such as teacherless education platforms. These factors combined create an unattractive market for developers, increasing reluctance towards processes such as R&D, which ultimately, negatively affects the intended end-users: students. The unprecedented circumstances that arose in the form of the pandemic were a forceful push towards virtual learning and untested alternatives; however, alignment between the groups only truly materialized out of necessity. With Gen Zers being deemed the “first digital natives” and exhibiting openness to and proficiency with technology, now is the time for trialling and testing new educational resources, platforms, and devices, but it should be a phased approach, rather than a sudden shift when there are no alternatives remaining. 

Public Transit 

The personal automobile landscape has significantly changed over the last decade, with electric vehicles becoming increasingly common amongst commuters. The shift has been rapid, with car manufacturers quickly joining the competition, iterating and improving upon the capabilities of their vehicles, to meet consumers’ green demands. On the side of public transportation in Ontario, efforts to transition to wide use of cleaner fuel and a more efficient transit system have been sluggish—in planning and execution. According to the Government of Canada, transportation currently represents 23 percent of Canada’s greenhouse gas emissions. Reducing this figure will undoubtedly require adopting a fresh thinking lens and prioritizing technological advancement. 

Although the Canada-Germany hydrogen pact—a recently signed deal to establish a supply chain of hydrogen from Canada to Germany—offers a glimmer of hope into the potential for innovation that resides within our nation, the status of smaller innovative projects within Canada is a cause of concern. An effort to ship hydrogen roughly 100km from Markham to Mississauga (two major Ontario cities) is still incomplete after 5 years. This largely is the result of a lack of alignment across levels of government and the high costs of operationalizing projects. Currently, the price of hydrogen buses compared to diesel buses and hydrogen compared to diesel are about three times greater and four times greater, respectively. While the cost barrier is a significant factor in the sector’s rate of innovation, intentional collaboration between provinces and projects can accelerate the process towards more efficient fuel technology and economies of scale to set a standard for modern public transit systems. 

Government 

Interestingly, the governing body of our nation, responsible for millions of Canadians’ personal information, has yet to keep up with the times. According to the Government of Canada, “it’s estimated that nearly 80% of the GC’s roughly 8,000 IT services are housed in aging data centres that are at risk of service outages that could affect millions of Canadians.” Initial systems that were set up almost 60 years ago to manage data and processes, such as the one utilized by Employment and Social Development Canada to manage child, parental, senior and employment insurance benefits, have remained in place for similar reasons, ranging from hefty transition costs to fear of the unfamiliar.  

 With cloud technologies quickly becoming the new large-scale organizational standard, the Federal Government is now playing catch-up, allocating “$300 million of additional investments over 3 years” to modernize major IT systems. This public sector example is just one of many indicators that until change becomes critical, modernization and innovation will take a backseat for other priorities. As determining how to spend taxpayer dollars is a time-consuming and controversial topic in Parliament, resulting in decisions that have great impact on the public, it can often be difficult to justify adoption of new technology if deemed non-essential; however, this also leads to a lack of action to incite change due to a reactive rather than proactive mindset, and the result is the foregoing of potential savings from earlier, dedicated technological planning and innovation.  

From Words to Action: What Might Be Required 

Looking at how technology has changed businesses and lives, there is no doubt that the possibilities are endless. If talent and efforts can be distributed more equitably across industries, and a forward-thinking mindset consistently adopted in diverse leadership positions, societies will be able to advance holistically and collectively. Although this vision is unlikely for the short-term future, mounting pressures towards social consciousness and sustainable impact may have the power to enable growth and opportunity across industries that would never have been traditionally considered. Additionally, as industries progress towards advanced states of technology amidst the rise of globalization, the surge in the need for large-scale integration and cross-functionality may be the jumpstart required for lagging industries. While the path towards more collaborative and collective technological advancement is still quite uncertain, one thing remains clear: proactivity and communication will be crucial to creating transparency and understanding for each stakeholder, ultimately enabling healthier responses and acceptance to change.