<strong>Innovation</strong> <strong>Canada</strong>: A <strong>Call</strong> <strong>to</strong> <strong>Action</strong>Getting ThereTo realize this vision, the Panel recommendsthe following.1.1 Industrial Research and <strong>Innovation</strong>Council (IRIC) — Create an arm’s-lengthfunding and delivery agency — IRIC —with a clear and sharply focussed mission <strong>to</strong>support 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 <strong>to</strong> the regional developmentagencies and (iii) oversight of federal supportfor business-oriented collaborative researchinstitutes (see Recommendation 4, Chapter 7).Industrial Research and <strong>Innovation</strong> 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 <strong>to</strong> the Department for Business,<strong>Innovation</strong> and Skills. The TSB operates at arm’slength from government, sets national priorities,and invests in programs and projects. TheConfederation of British Industry <strong>to</strong>ld the Panelthat British businesses are pleased with the ones<strong>to</strong>p-shopapproach. It is also notable thatprevious expert panels in <strong>Canada</strong> — 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 <strong>to</strong>oversee 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 <strong>to</strong> 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 <strong>to</strong>foster 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-ofgovernmen<strong>to</strong>rientation and a strong ethos ofpartnership with the provinces and terri<strong>to</strong>ries 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, subject<strong>to</strong> a performance review every five years,should also be expected <strong>to</strong> operate according<strong>to</strong> a number of fundamental principles ensuringa commitment <strong>to</strong> quality, cooperation andtransparency in program design and delivery(Box 5.1).5-10
Program EffectivenessBox 5.1 Operating Principles of the Proposed IndustrialResearch and <strong>Innovation</strong> Council1. Be mandated <strong>to</strong> stimulate Canadian economic growth and <strong>to</strong> foster a culture ofinnovation by encouraging and supporting business innovation in <strong>Canada</strong> through anoptimal mix of programs.2. Provide a single point of contact for Canadian businesses seeking <strong>to</strong> undertakeR&D/innovation activities, and guide business “clients” <strong>to</strong> 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 sec<strong>to</strong>r agnostic and emphasize that innovation occurs in all sec<strong>to</strong>rs 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 <strong>to</strong> design new programs and remove existingbarriers and impediments in order <strong>to</strong> improve <strong>Canada</strong>’s commercialization outputs,competitiveness and productivity. Encourage, as appropriate, cross-sec<strong>to</strong>r,cross-platform, cross-disciplinary collaboration.5. Use common definitions, a common program/project application form, and offer clearand consistent advice <strong>to</strong> Canadian business from coast <strong>to</strong> coast.6. Enable and encourage novel program design and delivery. Where appropriate, solici<strong>to</strong>utside program delivery agents through a competitive process designed <strong>to</strong> maximizeprogram outcomes. In such cases, IRIC must ensure clear lines of accountability withthese delivery agents, allowing them <strong>to</strong> 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 <strong>to</strong> the partner. Generally, as projects are further downstream<strong>to</strong>ward the market in the innovation chain, businesses must be required <strong>to</strong> increase theproportion of their own investment.8. Maintain an uncompromising focus on quality. Where appropriate, peer review shouldbe used <strong>to</strong> determine research funding <strong>to</strong> 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 <strong>to</strong> ensure against protracted delays in either starting projects orreleasing business contributions.10. Track, measure and report <strong>to</strong> the proposed <strong>Innovation</strong> Advisory Committee (IAC,described in Chapter 8) and the public on outcomes and indica<strong>to</strong>rs for all businessfacingR&D programs offered by the Government of <strong>Canada</strong>. Where needed, developnew metrics, approved by the IAC, and keep a scorecard of performance. Create linesof accountability <strong>to</strong> the IAC for program outcomes and delivery.5-11