Innovation Canada: A Call to Action

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Innovation Canada: A Call to ActionMake business innovation one of the coreobjectives of procurement, with thesupporting initiatives to achieve this objective.Transform the institutes of the NationalResearch Council (NRC) into a constellation oflarge-scale, sectoral collaborative R&D centresinvolving business, the university sector andthe provinces, while transferring NRC publicpolicy-related research activity to theappropriate federal agencies.Help high-growth innovative firms access therisk capital they need through theestablishment of new funds where gaps exist.What a federal government business innovationstrategy now needs is the leadership to be thefocal point of Canada’s innovation system. Todate, innovation has been regarded within thefederal government primarily as one more“silo,” which has in turn been fragmentedwithin many sub-silos in various departmentsand agencies. While the Minister of Industry andthe Minister of State for Science and Technologyare regarded as having the lead responsibility forinnovation, many others in government alsohave roles to play (Figure 8.1).Figure 8.1 The Government of Canada’s Innovation MachineryOther Ministries with responsibilitiesParliamentAgriculture and Agri-Food Portfolio• Agriculture and Agri-food Canada• Canadian Food Inspection AgencyUnder the Department of Industry Act,Parliament vests powers with theMinister of Industry over the followingareas: technology, science, competition,corporations and investmentMinister of Industry$Canadian Heritage Portfolio• Canadian S&T Museum Corporation• Library and Archives Canada• Canadian Museum of Nature• Canadian Museum of CivilizationMinister of State for S&TMinister of State forSmall BusinessEnvironment Portfolio• Environment Canada• Parks CanadaDepartment,Statutoryand OtherAgenciesIndustry Canada (IC)Communications ResearchCentre (CRC)FedDev ONFedNorCanadian SpaceAgency (CSA)Statistics Canada(StatCan)DepartmentalCorporationsNational ResearchCouncil (NRC)Natural Sciencesand EngineeringResearch Council(NSERC)Social Sciences andHumanities ResearchCouncil (SSHRC)Advisory Bodiesto the Ministerof IndustryScience, Technologyand InnovationCouncil (STIC)Crown Corporationswithin IC portfolioBusinessDevelopmentBank of Canada(BDC)Canada Foundationfor Innovation (CFI)Genome Canada(Genome)Council of CanadianAcademies (CCA)Pierre Elliott TrudeauFoundationIC Manages FundingAgreementsPerimeter Institutefor Theoretical PhysicsInstitute forQuantum ComputingIvey Centre forHealth Innovationand LeadershipSeven centres ofexcellence announcedin Budget 2007Fisheries and Oceans Canada• Canadian Coast GuardHealth Portfolio• Health Canada• Public Health Agency of Canada• Canadian Institutes of Health ResearchNational Defence Portfolio• Department of National Defence• Defence R&D CanadaNatural Resources Portfolio• Natural Resources Canada• Atomic Energy of Canada LimitedPublic Safety Portfolio• Royal Canadian Mounted Police• Canadian Border Services AgencyDepartment of Finance CanadaForeign Affairs and International Trade CanadaCanadian Institutefor AdvancedResearch (CIFAR)Etc.Human Resources and SkillsDevelopment CanadaPublic Works and GovernmentServices CanadaRegional Development AgenciesTransport, Infrastructure andCommunities PortfolioSource: Based on information provided by Industry Canada.8-2
Leadership for InnovationThe appropriate concept of innovation, as thePanel has emphasized in Chapter 2, fartranscends science and technology and R&D.Business innovation is the principal source ofproductivity growth in the long run and thus liesat the heart of Canada’s economic prosperity.The responsibility to foster innovation cutsacross many functions of government andrequires a system-wide perspective. In fact, theplethora of government programs to promoteinnovation, many of which are subscale andpartly overlapping, is in large part due to agrowing awareness of the importance ofbusiness innovation, but without adequatelymandated leadership to develop and oversee abroad strategy. This contrasts with the directionbeing taken by a number of other jurisdictions,including other federal countries like Australiaand some provinces (Box 8.1).International PerspectivesBox 8.1 Innovation Policy Advisory BodiesIn 2007, Australia established Innovation Australia, an independent statutory body thattook over the administration of business innovation and venture capital programs. Theorganization’s board is drawn from business and academic communities and is accountableto the Minister of Innovation, Industry, Science and Research for the programs and theirfunding. In addition to its role in program delivery, Innovation Australia reviews andprovides advice on innovation programs and proposals being developed in thegovernment — for example, on commercialization and tax credits. It also performs acoordinating role among players in the Australian innovation system.The United Kingdom also in 2007 established the Technology Strategy Board as an executivenon-departmental body sponsored by the Department for Business, Innovation and Skillsand funded by various departments and agencies. As in Australia, the board’s seniormanagement is drawn from business and academia, and it delivers a range of innovationprograms.Views from CanadaAt the provincial level in Canada, there are several instances where innovation strategiesare being delivered by semi-autonomous, business-led entities. Although governmentsprovide funding and policy direction and oversight, they are not directly involved incase-by-case decision making.Previous expert panels in Canada have made recommendations concerning the need forincreased system coordination at the federal level, suggesting it can be done through thecreation of a body mandated to oversee and provide advice from a whole-of-governmentperspective. For example, the Expert Panel on Commercialization (2006a) recommendedthe creation of a Commercialization Partnerships Board reporting to the Minister ofIndustry to make recommendations and serve an oversight role for federalcommercialization initiatives. A few years later, the Competition Policy Review Panel (2008)recommended that the federal government establish an independent CanadianCompetitiveness Council under the Minister of Industry. Mandated to examine, report onand advocate for measures to improve Canadian competitiveness, the council’s board ofdirectors would include a majority of non-governmental members. To date, theserecommendations have not been acted upon.8-3
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Vision and PrinciplesChapterVision
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Program EffectivenessChapterProgram
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Innovation Canada: A Call to Action

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