Innovation Canada: A Call to Action

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Innovation Canada: A Call to Actionpublic research institutes and programs, suchas government labs, National ResearchCouncil Canada institutes and others that arediscussed in subsequent chaptersincubators, which offer technical expertise,mentorship and other services to helpaccelerate the development ofentrepreneurial firmsangels and venture capitalists, who providethe risk capital that innovative start-up firmsrequire to build a bridge between their newideas and commercial viability.In its overview of public–private collaborations,the STIC (2009, p. 34) explains:While the overall picture is mixed, thebalance of evidence suggests that manyCanadian universities are first-rate scientificinstitutions. But in the context of theknowledge-based economy, it is notconsidered sufficient for a country’suniversities to produce ground-breakingscientific research in isolation . . . effectivelinks between the three principal innovationfunding/performing sectors [business, postsecondaryeducation and government] arean important contributor to a successfulnational innovation system, especially as amechanism for transfer of S&T into thecommercial sphere.Canada ranks above the OECD average inrespect of the percentage of higher educationexpenditure on R&D financed by industry —more than 8 percent in 2008 (OECD 2011).This means that post-secondary institutions areplaying an important role as a resource forbusiness innovation for certain activities andsectors. But the extent of collaboration appearsto be relatively narrowly based, since Canadaranks near the bottom of OECD countries interms of the proportion of businessescollaborating with universities for R&D(STIC 2009, p. 36).Although commercialization of research-basedknowledge is a key activity of public–privatecollaborations, networks and linkages, there aremany other benefits stemming from suchpartnerships, including industry access tospecialized equipment and personnel(particularly, potential future employees), andstimulation of new research questions anddirections arising from problems faced byinnovative firms (Figure 2.6).Some have argued that concerns over thehandling of intellectual property rights (IPRs),as well as restrictions that may be placed bycorporate partners on the publication ofresearch, are inhibiting productive collaborationbetween business and academic researchers.While such concerns may be well justified incertain cases, the vast majority of universityresearch appears in the public domain in a timelyway, allowing full access across the spectrum ofpotential industry users. With regard to IPRs, thePanel is not persuaded that any one model ofownership is best for all circumstances. Rather,negotiations over IPRs seem to be impeded mostoften by divergent valuations of early-stageintellectual property (IP). What inventors andinstitutions often see as an invaluablebreakthrough, businesses may see as needingcostly downstream development.In addition to the above considerations relatedto IPRs, the Panel is concerned that Canada isnot benefiting as much as it should from thevaluable IP being generated in this country.While Canada produces IP in abundance, it isless adept at reaping the commercial benefits;too many of the big ideas it generates wind upgenerating wealth for others. The Panel believesthat the government needs to explore this issuefurther. In particular, there is a need to developthe skills and knowledge of Canadianentrepreneurs regarding the effectivemanagement of their IP.2-16
The Context of the ReviewFigure 2.6 The Innovation Ecosystem: Converting “Research” into “Innovation” aTrained People, Promising IdeasResearch Problem IdentificationProblem Solving,Mentoring, Financing...Degree of FocusPost-secondaryEducationInstitutionsPriority SettingUniversity TechnologyTransfer OfficesCollege Applied Research Officesand Cégep-based College Centres forthe Transfer of TechnologiesAngels and Venture CapitalistsIncubatorsPublic Research Institutionsand ProgramsCommercialBusinessesResearchKnowledge Translation and Mobilization(Collaboration and Partnerships)DevelopmentaThe horizontal axis represents the R&D continuum from curiosity-inspired fundamental research at the left to market-facingexperimental development at the right-hand end. The focus of many post-secondary education institutions declines as R&Dshifts from fundamental research toward development, although these institutions are active in applied areas, and collegesin particular are focussed in the mid-range of the spectrum. The R&D emphasis of business declines as the developmentaland market-facing content diminishes. This creates an inherent structural gap in the mid-range of the R&D spectrum andrequires a variety of intermediary institutions to complement the roles of post-secondary education and businessparticipants in the innovation ecosystem.Source: Adapted from Nicholson (2011).2-17
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Programs in the ReviewAnnexPrograms
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