Four Ways to Nurture Innovation

If we want more headquarters in Canada, we need to nurture innovation. While there are unlimited ways to proceed, here are 4 ways that this can be undertaken.

1. Create tax incentives for research and development as well as bringing ideas to market. If there isn't a proper climate for innovation or investment, then new companies may look to other markets to establish their initial footholds.
2. Create stronger links between post–secondary institutions and business. Ensuring that the right skills are available require a stronger link between university programming and skill requirements.
3. Celebrate Canadian Firms. Governments at all levels should work to celebrate and promote Canadian businesses at home and abroad — through trade missions, advertising, and the actual purchase and use of Canadian innovation.
4. The digital strategy should look to include measurable targets in these areas and other elements of the strategy. Unless these targets are well defined, it will be hard to know what we have accomplished, if anything.

Comments

theabilityguy — 2010–05–10 13:01:20 EDT wrote

People with disabilities are the most underutilized resource in Canada. While we pride ourselves on diversity and multiculturalism, we ignore this potentially valuable component of the workforce. Many people with disabilities are pioneers when it comes to ICT, primarily because of necessity, and yet it is often impossible for them to get a job or share their knowledge with industry.

dsanden — 2010–05–11 17:52:07 EDT wrote

1. SR&ED tax credit program has been good but may need revisiting or awareness campaign.
2. Book "Finding Fertile Ground" p.30 "The innovations that are best for new firm formation are at the basic research end of the spectrum as well as among suppliers and customers." Basic ressearch is usually from universities, sometimes from NRC and private labs.

Sentinel — 2010–05–27 13:19:55 EDT wrote

You are hitting the major themes in your comment. As the owner of a maturing startup I have had some exposure to existing strategies/incentives at both the provincial and federal level that attempt to address your four points.

In your first point: "1. Create tax incentives for research and development as well as bringing ideas to market."

SR&ED has existed for several years as a Revenue Canada direct tax credit incentive. However, there seems to be a very large gap when it comes to articulating ITC based R&D. For small firms (where most of the emerging technology comes from) these are much to burdensome to go through. I am now just starting to file for SR&ED but need to hire consultants to guide through a vary ambiguous and labor intensive tax credit process. My vote is for a simplified new SR&ED process tailored to ICT product development. Baring that, strait corporate income tax brakes for nascent ICT products that are starting to generate revenue after launch.

On point 2: "2. Create stronger links between post–secondary institutions and business." Not sure about this one. It see technology cluster starting up all across the country. Allot of energy is being put into this already, however at the end of the day, researchers and business people make for difficult bedfellows. Perhaps a better more intelligent system to link technological advancements with entrepreneurs wanting to license. Perhaps a large IP data bank that you can flag your wants and receive warnings when some new thing fits your market objectives. Don't know…

On point 3: "3. Celebrate Canadian Firms. Governments at all levels should work to celebrate and promote Canadian businesses at home and abroad — through trade missions, advertising, and the actual purchase and use of Canadian innovation." this also happens alot. I've personally participated in many of these types of activities. But I do think you have hit the nail on the head when it comes to Government buying Canadian technology. This is getting better but it used to be that you first needed to prove yourself in that US market before getting the light of day at home. Modernize government, by creating budget incentives for government departments using Canadian technology and create tax incentives for ITC capital investments in the private sector.

Doug22 — 2010–06–06 14:33:09 EDT wrote

I like your 4 point concept. Not 13! In your lead statement of "If we want more headquarters in Canada" it seems this would assure our Canadian success. I think there are tax havens that have taken this strategy to the extreme. If we do the work in Canada, using Canadian workers, do we need to have the corporate headquarters in Canada to achieve success? Increasingly it is difficult to determine where work is being done especially in the ICT sector. All four of your points can still be made without Canadian headquarters but we definitely need the innovation to succeed. I appreciated Sentinel's comments and wish him success.