Innovation Canada: A Call to Action

Innovation Canada: A Call to Actionforthcoming defence purchases, especially bySMEs. (The commercialization model developedby Sustainable Technology Development Canadamight be emulated.) There is urgency in thissince, if Canadian capabilities were to remainunderdeveloped at the time of contracting, IRBoffsets would be directed more towardtraditional “build to print” work, rather thanleading-edge technology development andcommercialization. In order to achieve criticalmass quickly, the government could considersome form of matching formula with the primecontractors. It is emphasized that taking fulladvantage of Crown procurements depends ongovernment and business investments early on,in order to get the desired innovation capacitybuildingleverage from an IRB, whose costs areborne by prime contractors. This might involvesharper focus of existing programs, rather thanadditional resources.3.5 Working collaboratively — Exploreavenues of collaboration with provincialand municipal governments regarding theuse of procurement to support innovationby Canadian suppliers and to fostergovernments’ adoption of innovativeproducts that will help reduce the cost andimprove the quality of public services.Annual procurement by provinces andmunicipalities across Canada substantiallyexceeds federal procurement because of theirresponsibilities for health care, education andtransportation infrastructure, among otherpublic services. All orders of government shouldcollaborate to develop and share best practicesin the use of procurement to foster innovativeCanadian companies and, where feasible, todevelop joint strategies to enhance the leverageof public procurement in certain sectors.The Large-Scale ResearchCollaboration GapThe basic research performed by universities andother laboratories generates disruptivetechnologies that open up whole newindustries. At colleges, polytechnics anduniversities, there is also a broad range ofapplied research relevant to both the businessand non-profit sectors. This applied research caninclude business-oriented areas such as finance,regulation/legislation and organizationalbehaviour, and also covers the domains ofapplied science and technology — for example,forestry and geosciences, engineering,computer science and information systems,nanotechnology, chemistry, life sciences, andhealth research. Much of this research, evenwhen investigator initiated and funded bygovernment or non-profit agencies, is relevantto industry and is taken up in various ways.Reflecting the benefit of this system to industry,business-sponsored research in Canada’suniversities currently totals more than$785 million a year (Canadian Association ofUniversity Business Officers 2010). Across thecountry, there is an array of ad hoc small-scale,needs-based collaborations under way betweenthe business and post-secondary sectors,assisted by the network and collaborationprograms discussed in Chapter 5.In recognition of the vital role that postsecondaryeducation institutions play in oursystem of innovation — foremost, as theprimary source of highly qualified and skilledpersonnel and, secondly, as a source of leadingedgeideas and knowledge — the Governmentof Canada has substantially increased itssupport for higher education R&D over the past15 years. Given the foundational role that astrong post-secondary education sector plays inthe Canadian system of innovation, this Panel(like the Expert Panel on Commercializationbefore it) urges the government to commit toinvesting in basic research at internationally7-6