<strong>Innovation</strong> <strong>Canada</strong>: A <strong>Call</strong> <strong>to</strong> <strong>Action</strong>In ConclusionGuided by strong leadership and soundprinciples, and through concerted action, theend result of our recommendations will be arebalanced system of federal assistance forbusiness innovation that provides more effectivesupport <strong>to</strong> innovative firms, especially SMEs, <strong>to</strong>help them grow and become large competitiveCanadian enterprises. Federal support forbusiness innovation will be outcome oriented,collaborative and innovative in itsimplementation. It will be held <strong>to</strong> account bystate-of-the-art procedures for evaluation acrossthe suite of programs. The Government of<strong>Canada</strong> will have assumed a leadership role byestablishing innovation as a whole-ofgovernmentpriority and by engaging theprovinces, businesses and post-secondaryinstitutions in a national dialogue on innovation.Going forward, the Panel welcomes theopportunity <strong>to</strong> meet with government officials,business leaders and post-secondary institutions<strong>to</strong> discuss our recommendations. The agenda isambitious, but so <strong>to</strong>o is our vision — aCanadian business sec<strong>to</strong>r that stands shoulder<strong>to</strong>-shoulderwith the world’s innovation leaders.While this is a long-term goal, governmentaction must be swift and decisive, because theimpact of the initiatives begun <strong>to</strong>day may takeyears, even decades, <strong>to</strong> be fully realized.The longest journey begins with the first step,so the time <strong>to</strong> act is now.E-14
Motivation and MandateChapterMotivation andMandate1Canadians enjoy an enviable standard of living,but sustaining our prosperity depends onmaintaining economic competitiveness in aglobal context both filled with opportunities andfraught with challenges. Among these isincreased competition due <strong>to</strong> a convergence offac<strong>to</strong>rs, including vastly more powerfulcommunications technologies that have shrunk“economic space” and virtually overnighttransformed the scope and intensity ofcompetition. The emerging competi<strong>to</strong>rs —China, India, Brazil and many others in thewings or already on stage — are no longermerely the low-cost suppliers of services andmanufactured goods. They are using education,research and development (R&D), and thecommitment of their governments <strong>to</strong> innovateand rapidly ascend the value chain. Thechallenge for highly developed countries like<strong>Canada</strong>, accus<strong>to</strong>med <strong>to</strong> generations a<strong>to</strong>p theglobal economic league tables, is clear.Equally clear is the prospect that the emergenteconomies, already home <strong>to</strong> more than half theworld’s population, will convert theirburgeoning prosperity in<strong>to</strong> the greatest marke<strong>to</strong>pportunities ever. But these are not availablesimply for the asking. The winners will be thecompanies that can provide products matched<strong>to</strong> the culture, priorities and state ofdevelopment of the new cus<strong>to</strong>mers — forexample, medical devices that perform at close<strong>to</strong> state-of-the-art but for a small fraction of thecost. The fact is that the emerging marketsalready include large and rapidly growingpopulations of middle and upper incomeconsumers equipped with both spending powerand new generations of infrastructure such asadvanced wireless networks. In short, <strong>to</strong> seizethe opportunities and <strong>to</strong> meet the challenges of<strong>to</strong>day’s economy, Canadian businesses need <strong>to</strong>adopt a thoroughly global outlook coupled witha focus on innovation. This will require, formany, a significant shift in habit, perspectiveand strategy.Perhaps the greatest risk is complacency.Canadians can be justly proud of the way thecountry has fared during the recent crisis years.A sound banking system, buoyant demand formany of our natural resources, ready access <strong>to</strong>the world’s greatest market on our southernborder, and years of prudent fiscal managementhave served <strong>Canada</strong> well and will continue <strong>to</strong>do so. But a strong Canadian currency andstubborn economic weakness in the UnitedStates, our dominant export market, challengeCanadian businesses <strong>to</strong> become much moreinnovative.Being more innovative is also what is needed <strong>to</strong>take advantage of leading-edge technologieslike biotechnology, nanotechnology andinformation technology. These are giving rise <strong>to</strong>entirely new markets and are providing novelapproaches <strong>to</strong> the pressing challenges of our era— such as how economies can continue <strong>to</strong>grow in ways that are environmentallysustainable, or how health care expectationscan be met in ways that are fiscally sustainable.1-1