Canada's Science, Technology and Innovation System: State of the Nation 2008

The Science, Technology and Innovation Council report identifies a fact that is key to Canada's poor innovation performance:

“ … the study found Canada spends more public money on university-based research than most other nations … “

This is true as recent OECD data places Canada 4th for the largest percentage of academic R&D at 38%.  The US, normally rated well for their innovaion performance, is at 14% and is ranked 32nd in academic R&D spend.  See: http://www.nsf.gov/statistics/seind08/c4/c4s5.htm However it is erroneous to use this information to join the crusade in  blaming Canadian business for Canada’s poor innovation performance.

"but the Council of Canadian Academies report points the finger of blame squarely at Canadian business." From:
http://www.theglobeandmail.com/news/opinions/urgent-more-creativity-from...

Our universities are under intense pressure to produce commercial successes from the billions invested in research at these institutions.  While I can understand their defensiveness in pointing the finger of blame at business, finger pointing is not going to improve Canada’s innovation performance.   In fact it is unfair to put so much pressure on universities to commercialize technology when it is not their mandate.  Their number one priority is to provide excellent education and a second priority is to improve knowledge, normally through research.

There is widespread agreement that it is industry’s job to commercialize technology.  So what are we doing to support them with this challenge?  Canada’s record $5.1 billion science budget contains one major program targeted at business; IRAP.  IRAP’s budget was doubled to $200 million this year, about 4% of the total budget.   Despite accusations that Canadian business is not interested in innovation, IRAP’s budget was fully allocated before the end of the first quarter indicating there is lots of demand for business or market-led research.   Is it fair to be pointing the finger of blame at the group that is allocated 4% of Federal resources for science and innovation?

Innovation originates from two primary sources; technology push and market pull.  A healthy innovation strategy promotes both but virtually all of Canada’s innovation efforts are designed to support technology push.  In a 2008 report from the Institute of Public Policy Research, they declared “ Science-Push Approach to Addressing Canada's Innovation Gap Not Only Wrong, but Backward”.  The report, “Innovation and the Productivity Problem,  Any Solutions? “ was prepared by professor Donald G. McFetridge and is available from: http://www.irpp.org/indexe.htm

Incentives to advocate market pull innovation will have business seeking innovative solutions for market opportunities.  These solutions may come from a variety of sources including internal to the business, from existing knowledge or through demands for new knowledge from our research infrastructure.  So, instead of universities pleading with industry to partner with them and to utilize knowledge they have generated, there will be more businesses coming to them for their help.  That would be a refreshing, and effective, change.

A balanced innovation strategy that supports both push and pull innovation will make enormous improvements in Canada’s innovation performance.   To achieve this balance, there needs to be funding and support for market-led research to complement the existing technology push programs.