Innovation Canada: A Call to Action

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Innovation Canada: A Call to ActionGetting ThereTo realize this vision, the Panel recommendsthe following.1.1 Industrial Research and InnovationCouncil (IRIC) — Create an arm’s-lengthfunding and delivery agency — IRIC —with a clear and sharply focussed mission tosupport business innovation. IRIC shouldbecome the common service platform forall appropriate 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).In addition, the IRIC could take on the followingactivities: (i) in partnership with the federalgranting agencies, joint oversight of appropriatebusiness-facing programs administered bythose agencies, (ii) technical assessment of theinnovation element of project proposalssubmitted to the regional developmentagencies and (iii) oversight of federal supportfor business-oriented collaborative researchinstitutes (see Recommendation 4, Chapter 7).Industrial Research and Innovation CouncilStakeholders consulted by the Panel complainedabout the fragmentation of the system offederal innovation programming and suggesteda streamlined approach whereby programs areoverseen and/or delivered by a single entity.Other jurisdictions, including the UK, Australiaand New Zealand, have benefited from usingcommon delivery agents for suites of businessfacingprograms. For example, the UK deliversits innovation programming through a centralpoint — the Technology Strategy Board (TSB) —which reports to the Department for Business,Innovation and Skills. The TSB operates at arm’slength from government, sets national priorities,and invests in programs and projects. TheConfederation of British Industry told the Panelthat British businesses are pleased with the onestop-shopapproach. It is also notable thatprevious expert panels in Canada — specifically,the Expert Panel on Commercialization and theCompetition Policy Review Panel — haverecommended increased coordination at thefederal level, suggesting it could be broughtabout through creation of a body mandated tooversee and provide advice from a whole-ofgovernmentperspective (see Annex B).In view of the foregoing, the Panel recommendsthe creation of the IRIC, an arm’s-length fundingand delivery agency reporting to Parliamentthrough the minister responsible for innovation(see Chapter 8). The IRIC would drive a changein the governance of industry-facing programs,providing an integrated and responsive entity tofoster business innovation and competitiveness.The Panel envisages IRIC as a national deliveryagency for federal business innovationprogramming. It would be demand driven,with clear performance metrics, a whole-ofgovernmentorientation and a strong ethos ofpartnership with the provinces and territories aswell as with the existing federal grantingagencies — namely, the Natural Sciences andEngineering Research Council (NSERC), theCanadian Institutes of Health Research (CIHR)and the Social Sciences and HumanitiesResearch Council (SSHRC). The IRIC, subjectto a performance review every five years,should also be expected to operate accordingto a number of fundamental principles ensuringa commitment to quality, cooperation andtransparency in program design and delivery(Box 5.1).5-10
Program EffectivenessBox 5.1 Operating Principles of the Proposed IndustrialResearch and Innovation Council1. Be mandated to stimulate Canadian economic growth and to foster a culture ofinnovation by encouraging and supporting business innovation in Canada through anoptimal mix of programs.2. Provide a single point of contact for Canadian businesses seeking to undertakeR&D/innovation activities, and guide business “clients” to the program and serviceproviders that best meet the timelines and supports that the industry client needs. Thiswill reduce the confusion of multiple points of entry.3. Be industry sector agnostic and emphasize that innovation occurs in all sectors of theeconomy, in urban and rural areas, and within micro, small, medium and largeCanadian companies, and that innovation can be enabled by talent from a range ofservice providers.4. Work collaboratively with businesses, the federal and provincial governments as wellas the Canadian research community to design new programs and remove existingbarriers and impediments in order to improve Canada’s commercialization outputs,competitiveness and productivity. Encourage, as appropriate, cross-sector,cross-platform, cross-disciplinary collaboration.5. Use common definitions, a common program/project application form, and offer clearand consistent advice to Canadian business from coast to coast.6. Enable and encourage novel program design and delivery. Where appropriate, solicitoutside program delivery agents through a competitive process designed to maximizeprogram outcomes. In such cases, IRIC must ensure clear lines of accountability withthese delivery agents, allowing them to compete and avoiding any conflict of interestin which IRIC competes with delivery agents for program funding.7. Require that businesses put “skin in the game” for programs/projects commensuratewith the level of return to the partner. Generally, as projects are further downstreamtoward the market in the innovation chain, businesses must be required to increase theproportion of their own investment.8. Maintain an uncompromising focus on quality. Where appropriate, peer review shouldbe used to determine research funding to ensure that the right problem and audienceare being targeted with the right methodology.9. Respect stakeholder timelines and commitments. For example, peer review processesmust be designed to ensure against protracted delays in either starting projects orreleasing business contributions.10. Track, measure and report to the proposed Innovation Advisory Committee (IAC,described in Chapter 8) and the public on outcomes and indicators for all businessfacingR&D programs offered by the Government of Canada. Where needed, developnew metrics, approved by the IAC, and keep a scorecard of performance. Create linesof accountability to the IAC for program outcomes and delivery.5-11
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Dear Minister,Please find attached
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Programs in the ReviewAnnexPrograms
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