Investment Continuum

When we use the words "investment in R&D" there is a tendency to look at the investment funding available through universities, grants from NRC/IRAP or SR&ED tax credits to somehow create the innovation or novel application of technology, or advance in knowledge. Funding is funding, it is the people who create the new ideas or see the potential of applying a technology for a commercial purpose. If Canada is to succeed over a long term (50 years), then the strategies have to be longer term too. I think that we need to consider attracting the future innovators, engineers and scientists that will create the technological potential. I think we need to seriously consider the size of the Canadian enterprise that will work (i.e. before it gets bought out by a foreign interest). Smaller companies are far more flexible and innovative that large one so let's not get stuck on targeting companies with more than 1000 employees but rather companies with less than a 1000 and particularly companies with less than 50 employees. Small companies that are spinoffs from the University/private sector approach are prime examples. The new graduates from sciences, engineering, medicine often have the start of the knowledge that will fuel Canada's R&D but lack the business knowledge. This is where paring technology with business knowledge and experience is needed. Programs like IRAP do an excellent job of requiring the applicant companies to demonstrate not just their idea but their business model as well. We need more of this and we need the analysis of success and failures to continuously refine this program. So, we can work on the supply of the raw material, provide the environment to encourage, recognize and reward those who participate. How do we get the ideas, the business, and the venture capital together in a long term relationship. Do we supplement the funding through additional government funding, or through more attractive tax breaks for the Angel investor? Again, we need the analysis to be done and be open to considering alternatives such as composite member boards (industry, financial and academic) for grant funding. We have the SR&ED tax incentive program that has requirements for technological advance before the tax exemption is allowed, this excludes many "innovation" business concepts and excludes many R&D activities. Should we change this or supplement it through other processes. Should any new processes be grant based or after the fact benefits (pay first and then receive the benefit). Lastly we need to consider how to grow a startup company of 2–5 employees to the next stage of 50–100. This is a point where many companies fear to tread. Red tape through reporting requirements, HR overheads, unionization, etc. all come into play. What can be done to grow these companies or do we really want to? The ICT industry to my mind is one of the sectors that Canadians need to embrace, nurture and develop. It is one where intellectual talent can shine and we can regain our productivity position internationally through collaborative on line activity. This needs teamwork and it needs a common language. We need to consider international work for foreign companies as a plus. We are known around the world for our consulting expertise in many fields, lets not forget ICT. We have many federal studies on innovation, on where Canada sits internationally (16^th in terms of R&D spending versus GDP — or close see Stats Canada R&D reports), what sectors are hot etc. I think the future area of sustainable growth for Canada is in the complex technology area. This would be joint technology areas that combine 3–5 technologies to create niche products. ICT plays an integral role in this type of technology. For example: artificial limbs, vision and hearing involving biomedical systems; nanotechnology delivery systems, Solar power materials and energy storage systems that combine organic chemistry physics and ICT control; ore extraction and bioremediation that involves chemistry, organic organism and engineering. Make ICT a partner in this type of activity and see that the supply side of new talent is continuously grown. Last thought, what about personal income tax breaks for specific sector/activity workers? Food for thought.