Abstract:
In a rapidly shifting global economy, Canada’s ability to compete, protect its sovereignty, and ensure long-term prosperity depends on the strength of its science, technology, and innovation ecosystem. This plenary will introduce the findings of the Council of Canadian Academies’ upcoming assessment – the latest installment in a series of expert panel reports that represents the most comprehensive and independent analysis of Canada’s STI performance. It will present key insights on strengths, persistent challenges, and emerging opportunities, while exploring the implications for Canada’s economic resilience, competitive positioning, and strategic decision-making in an era of accelerating change.

Summary of Conversations

The session opened with an introduction of the CCA’s latest report on science, technology, and innovation (STI) in Canada, described as the most comprehensive assessment since 2018.

• Report Findings: Presenters summarized the report’s main findings, noting that while Canada’s research performance remains strong, many STI indicators are trending negatively, threatening the country’s standard of living.
• Research Performance: Canada’s higher education sector and research output are internationally competitive, with strong talent and impactful publications. However, there is concern about the loss of top talent to other countries and the sustainability of funding models, especially with pressures on international student enrollment.
• Innovation Performance: The panel highlighted a decline in innovation among Canadian firms, low and decreasing business R&D expenditures, and slow technology adoption. Obstacles include uncertainty, risk, and lack of skills. While patenting activity is growing, much intellectual property is not retained in Canada.
• Financing Startups and Scale-ups: Canada has a robust startup ecosystem, but struggles to scale firms due to limited domestic financing, leading to foreign ownership of promising companies. Venture capital is concentrated in major cities and sectors like ICT, with gaps in life sciences and deep tech.
• Policy Context: Government representatives discussed recent budget investments in research and talent, the impact of international trade disruptions, and the need to diversify and attract talent. The importance of both investigator-led and mission-driven research was emphasized, along with the value of diversity, equity, and inclusion.
• Sector Collaboration: The discussion included the role of colleges and polytechnics in supporting SMEs and local economies, and the need for better alignment and advocacy across the post-secondary sector.
• Audience Engagement: Questions from the audience focused on funding for colleges, the fragmentation of the innovation system, and the urgency of addressing Canada’s productivity challenges.

Take Away Messages/Current Status of Challenges

• Canada’s Research Strengths: The country’s talent and research output are foundational to its STI ecosystem, but cannot be taken for granted. Maintaining competitiveness requires ongoing investment and adaptation.
• Innovation Challenges: Canada faces persistent and worsening challenges in business innovation, R\&D investment, and technology adoption. The gap between research excellence and economic impact is widening.
• Urgency and Context: The current context—marked by global trade disruptions, rapid technological change, and shifting international dynamics—demands immediate and coordinated action. Waiting years for new data or interventions is not viable.
• Collaboration is Essential: Addressing these challenges requires an “all hands on deck” approach, involving government, academia, business, and civil society. Fragmentation within the innovation system must be overcome.
• Celebrate and Communicate Successes: Stakeholders are encouraged to share stories of success and impact to build momentum and attract talent.
• National Priority: Building Canada’s innovation economy must become a national priority, with a focus on sovereignty, resilience, and future generations.

Next Steps

• Strengthen Collaboration: Foster greater alignment and collective advocacy across universities, colleges, government, and industry to address fragmentation and maximize impact.
• Monitor and Adapt: Develop better real-time analytical tools and data collection to track progress and respond quickly to emerging challenges.
• Policy Action: Continue to invest in research, talent, and innovation, with targeted support for SMEs, scale-ups, and underfunded sectors.
• Engage Communities: Increase outreach and communication to local communities, MPs, and the public to build support and understanding of STI’s importance.
• Ongoing Dialogue: Maintain momentum by continuing conversations, sharing best practices, and collectively shaping Canada’s STI future.