Innovation Canada: A Call to Action

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