Abstract:
This panel explores the critical role of research in the commercialization of emerging technologies within Canada’s key industries. The discussion will focus on how industrial policies can support the transition of scientific discoveries from research laboratories to market-ready products. Panelists will examine successful case studies where policy initiatives have effectively aligned with business needs to support commercialization of Canadian ideas. The session will also provide an opportunity for leaders to discuss challenges and opportunities to further Canada’s competitiveness, including how to better align research with industry needs in critical sectors.

Summary of Conversations

The panel explored Canada’s challenges in translating research into industrial development, despite a strong science community and initial policy groundwork. Discussions highlighted the need to move beyond ‘ingredient ISM’—simply having resources—to strategic, sector-specific approaches. Comparisons with countries like Israel emphasized the importance of a culture that embraces risk-taking and innovation, alongside supportive policies. Panellists discussed the need for increased investment in R&D, a shift in cultural mindset to promote tech adoption, better two-way information sharing between industry and government, and a focus on customer needs in policy and product development. The social contract between science and society, and the need for transparency and realistic communication about scientific advancements, were also key points.

Take Away Messages/ Current Status of Challenges

• Canada’s advanced industrial activity is significantly below the global average, signalling a competitiveness crisis.
• The lack of deep, sector-specific understanding hinders effective policy-making and resource allocation.
• Canada faces a cultural challenge in tech adoption, marked by a lack of urgency and risk aversion.
• Talent is leaving Canada due to global competition and financial incentives elsewhere.
• There’s a broken social contract between science and society, with a perception that the benefits of innovation are not widely shared.
• The science funding system may be risk-averse, limiting support for radical and potentially groundbreaking research.
• Scaling innovation faces challenges related to capital availability and infrastructure issues.
• Regional disparities and a complex federal-provincial government structure complicate the implementation of national innovation strategies.

Recommendations/Next Steps

• Increase investment in R&D by a substantial margin to compete globally, especially with countries like China.
• Adopt sector-specific strategies to leverage general-purpose technologies and compete effectively on the global stage.
• Cultivate a mindset that embraces risk-taking and fosters a sense of urgency in tech adoption and innovation.
• Improve two-way information sharing between industry and government to ensure policies are relevant and effective.
• Rebuild trust between science and society through transparent communication and engagement with community concerns.
• Encourage the science funding community to make more significant bets on radical research with the acceptance of potential failure.
• Explore new funding models, potentially led by the private sector and family offices, for patient, long-term investments in Canadian industrial development.
• Incentivize venture capital firms to make investments exclusively in Canada and promote retention strategies for Canadian talent.