Innovation Canada: A Call to Action

Program Effectivenessassessment of Canada’s strengths andweaknesses in science and technology. A surveyconducted as part of that assessment foundthat IRAP was considered to be the federalgovernment’s strongest program of directsupport for the commercialization or translationof research into applications that benefit theeconomy or society (CCA 2006).The Panel’s consultations further revealed thatmany stakeholders believe the federal portfolioof business innovation support places anemphasis on R&D and that there is an ensuingneed to provide complementary assistance fornon-R&D activities along the path from idea tomarket success, particularly those related tocommercialization. The Panel was alsofrequently told that many companies, especiallySMEs, lack awareness of the range of postsecondaryeducation, government, non-profitand other commercialization facilities, assetsand skilled personnel available across thecountry. It was suggested that such issues couldbe addressed through the introduction of a“vouchers” program — that is, governmentfunding support would be delivered viavouchers provided to qualifying businesses andused to defray part of the cost of acquiringapproved commercialization services fromapproved providers. A vouchers approach hasalready been adopted by other jurisdictions(e.g., the Netherlands, Hungary, the UK andIreland) as well as by provincial governments,including Alberta, Newfoundland and Labrador,and Nova Scotia. Vouchers are a relatively newform of delivering direct assistance to firms.Their underlying objective is to help buildrelationships between SMEs and innovationpartners by eliminating obstacles that havetraditionally been barriers to such relationships— for example, the relatively high fixed costsrequired for SMEs to identify a suitable partner.Recognizing that IRAP plays a central role inenabling SMEs to conduct R&D and to innovate,and that vouchers would help SMEs betterconnect to commercialization partners, thePanel recommends the following.1.2 Resources for IRAP andcommercialization vouchers —Increase IRAP’s budget to enable it to buildon its proven track record of facilitatinginnovation by SMEs throughout Canada,and create a national commercializationvouchers pilot program, delivered withinthe suite of existing support mechanismsoffered through IRAP, to help SMEsconnect with approved providers ofcommercialization services in postsecondary,government, non-profit andprivate organizations.Funded IRAP projects must have strongcommercialization potential and representsignificant contributions to the developmentand use of leading-edge technologies. In viewof IRAP’s well-known and respected “brand,” itis also important for the program to retain itsidentity under the IRIC umbrella.The national commercialization vouchersprogram should be established as a five-yearpilot initiative and delivered collaboratively withprovinces in cases where there is provincialinterest. Clear principles, common definitionsand consistent outcome indicators should beput in place for this pilot program. The businessbeneficiary of a voucher-related project shouldbe required to contribute as well in order todemonstrate commitment to the project.Concierge ServiceCanada’s landscape of programs that supportbusiness innovation is densely populated byinitiatives spanning many departments andagencies at both the federal and provinciallevels. This leaves many businesses bewilderedby the array of choices. A corollary is that manyprograms are not as well known to businessesas they should be. The Panel thereforerecommends the following.5-13