Research behind the third Annual Innovation Report of the Conference Board of Canada (CBoC) shows that Canadian companies score poorly in most tests for innovation and that the private sector currently lacks the capacity to absorb and utilize research emanating from the nation’s universities.

Canadian businesses are found wanting in a surprisingly large number of areas, not the least of which is an innovation performance “in dire need of improvement.” The CBoC states that “most CEOs and corporate top management teams are not committed to highly intensive innovation”, and warns that inter-firm collaboration may actually stifle innovation rather than allow it to spread.

Entitled Investing in Innovation, the report was presented the CBoC’s 2001 Innovation Conference earlier this month in Montreal, and builds on research presented in two previous report. The latest edition presents five urgent calls to action to reverse the trends it see in business: corporate leadership and a corporate culture of innovation; invest in skills and learning; increase investment in R&D; ensure a competitive tax system and rationalize incentive programs; and, enhance commercialization support and mechanisms.

For government, the report is more kind, noting that Canada ranks highly in terms of budget outlays for economic development and is the only country where financial support is the leading policy tool for supporting industrial R&D. It also identifies eight “non-fiscal innovation programs” which are particularly effective, including the Networks of Centres of Excellence program, Technology Partnerships Canada and the Industrial Research Assistance Program.

The report suggests, however, that the federal government should establish a “long-term or next-age national technol-ogy goal” which is clearly articulated and communicated.

The university sector is also deemed to be a strong innovation player with increasing spin-off activity. But it questions the high level of private sector support for university research and questions whether it could be undermining its natural emphasis on basic research.

FMI: www.conferenceboard.ca

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