As the owner of a small software company for almost 30 years, I agree with the conclusion but not how it was derived.  Beyond determining 'how to innovate' we need to know 'what to innovate'.  The conception that works for me is that Silicon Valley is the central hub of the cyber-universe, but that hub works in concert with many satellites.  It's essential that we have knowledge migration, shared labour pools, and open commerce and trade with Silicon Valley in order to succeed.  The opening for a Canadian hub is in the area of applications of technology, more than developing core technology.  We don't have the capital or labour pool to build the next killer app.  Blackberry was the exception, but ultimately could not compete with the giant Apple.  That being said, there are many challenges and obstacles that impede our potential success, but I'm out of room.