Innovation Canada: A Call to Action

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Innovation Canada: A Call to ActionRecommendationsOur headline advice has been summarized inthe Framework for Action and associatedGuiding Principles sections above. What followsare detailed statements of our recommendations,organized in response to the three specificquestions in the Panel’s mandate.Program EffectivenessThe first question in the Panel’s mandate asks:What federal initiatives are most effective inincreasing business R&D and facilitatingcommercially relevant R&D partnerships?The government regularly evaluates individualprograms against the stated objectives of eachprogram. But these objectives vary widelyamong programs in terms of the outcomesbeing targeted, and the evaluation datacollected for individual programs have generallynot been designed to enable assessment of thecomparative effectiveness of programs. Ouradvice in respect of program effectiveness istherefore based not only on available dataregarding the 60 programs we reviewed butalso, and more particularly, on our consultationsand related research.From what we heard and learned, there is aneed to improve the business expertise ofprogram delivery staff and to achieve greaterscale and efficiency in program implementation.We have concluded that SMEs need enhancedaccess to services and small grant or voucherbasedfunding to assist their innovationactivities. We found that the bewildering arrayof innovation support programs (at both thefederal and provincial levels) made it difficult forcompanies to navigate the landscape to locatethe right programs for their purposes.Our survey of R&D-performing firmsdemonstrated that client awareness of mostprograms is low (with the exception of theSR&ED program and IRAP). We also found thatthe current suite of programs to develop anddeploy the talent needed to meet the needs ofinnovative businesses is a patchwork of largelysubscale initiatives. More generally, we foundthat there are opportunities to improve programefficiency and flexibility by combining smallerinitiatives with similar objectives. Finally, weconcluded that adequate tools do not exist tocomparatively assess relative programeffectiveness. Therefore, the evidence base islacking for a regular and systematic reallocationof resources among programs to achieve themost cost-effective support for businessinnovation.Based on these findings, as detailed inChapter 5 of our main report, we make thefollowing recommendations.E-8
Executive SummaryRecommendation 1Create an Industrial Research andInnovation Council (IRIC), with a clearbusiness innovation mandate (includingdelivery of business-facing innovationprograms, development of a businessinnovation talent strategy, and other dutiesover time), and enhance the impact ofprograms through consolidation andimproved whole-of-governmentevaluation.1.1 Industrial Research and InnovationCouncil (IRIC) — Create an arm’s-lengthfunding and delivery agency — IRIC — witha clear and sharply focussed mission tosupport business innovation. IRIC shouldbecome the common service platform for allappropriate federal business innovationsupport programs. Over time, it should takeon at least the following industry-facingactivities, as further elaborated inRecommendations 1.2 through 1.4:delivery of the Industrial ResearchAssistance Program (IRAP) and acommercialization vouchers pilotprogram (1.2)delivery of a national concierge serviceand related web portal (1.3)development of a federal businessinnovation talent strategy (1.4).1.2 Resources for IRAP andcommercialization vouchers — IncreaseIRAP’s budget to enable it to build on itsproven track record of facilitatinginnovation by SMEs throughout Canada,and create a national commercializationvouchers pilot program, delivered within thesuite of existing support mechanismsoffered through IRAP, to help SMEs connectwith approved providers ofcommercialization services in postsecondary,government, non-profit andprivate organizations.1.3 Innovation concierge service —Establish a national “concierge” service andassociated comprehensive web portal toprovide companies with high-quality, timelyadvice to help identify and access the mostappropriate business innovation assistanceand programs for the individual firm.1.4 Talent — IRIC should lead the developmentof a federal business innovation talentstrategy, working closely with the provincesand relevant federal departmentsand agencies, focussed on increasingbusiness access to, and use of, highlyqualified and skilled personnel.1.5 Program consolidation — Over time,consolidate business innovation programsfocussed on similar outcome areas into asmaller number of larger, more flexibleprograms open to a broader range ofapplicants and approaches.1.6 Program evaluation — Build a federalcapacity to assess the effectiveness of newand existing business innovation programsto enable comparative performanceevaluation and to guide resource allocationgoing forward.Program Mix and DesignThe second question in the Panel’s mandateasks: Is the current mix and design of taxincentives and direct support for business R&Dand business-focussed R&D appropriate?The SR&ED tax credit — which currentlyprovides approximately $3.5 billion annuallytoward the cost of business R&D — is theflagship of federal support for businessinnovation. The program lowers the cost of R&Dfor firms, promotes greater investment in R&D,and makes Canada a more attractive place tolocate R&D activity. It allows almost 24 000firms across all economic sectors and regions ofthe country to make individual, market-drivendecisions about the R&D they need to competeE-9
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ConclusionChapterConclusion9We are
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Innovation Canada: A Call to Action

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