1

Date 2001 01 26

INNOVATION IN CANADA

The role of university research in thenatural sciences and engineering

2

HQP and tacitknowledge

codified new knowledgearising from research

96% 4%

CANADA

WORLD

investmentby MNE’sbringing tacitknowledge

commodities(price-taking)

innovations(price-setting)

traded goods and services

INNOVATION IN CANADA - the big picture

3

WORLD

CANADA

marketindustry

codified new knowledgefrom the other 96%4%

universityresearch

governmentresearch

mipi

investments by MNEs and tacitknowledge

commodities

innovations

immigration

emigration

HQP

INNOVATION IN CANADA - The actors in the economy

marketintelligence& productinformation

4

universityresearch

governmentresearch

industry

discoveries andinventions + IP

problem solutions(contract or grant)

“in kind”

researchsupport

discoveries andinventions + IP

problemsolutions(contract)

R&Dassistance

INNOVATION IN CANADA - knowledge and investment flows in the UIG triangle

standards andcertification

5

firms withno R&D

firms that door buy R&D

start-ups

investment byMNEs and tacitknowledge

commodities

innovations

immigrating,emigrating

from universities

results fromCanadian andworld researchHQ

Pdiscoveries,inventions,and IP

innovations

Investment byMNEs and tacitknowledge

marketintelligenceand productinformation

gov’t R&D assistance

INNOVATION IN CANADA - a closer look at interactions among industry, government labs, and universities

marketintelligenceand productinformation

marketintelligenceand productinformation

results fromCanadian andworld research

HQP

HQPIP$

gov’t R&D assistance

university research in NSE

from universities

6

world research

codified new knowledge

students

HQP

start-ups

new codifiedknowledge -the Canadian 4%

basic research project researchHQP

all sectors

HQP with skillsof particular interest to research partner firm

licencesfirms that do or buy R&D

university research inscience and engineering

operating costsdirect from NSERCindirect from university

researchinfrastructure provinces CFIprivate funds

discoveries orinventions withinnovationpotential

share ofproject costs:$ and in kind

solutions

problems

first stages ofcommercialization

INNOVATION IN CANADA - an even closer look at the impacts of university research in science and engineering

7

market

new value-addedeconomic activity

successfulinnovation

failure in themarket

failure to reach the market

IP

recognition

demonstration

of innovationpotential

new codifiedknowledge

discoveries and inventions

public funds

taxes

researchsupport

privatefunds

benefits to society

INNOVATION IN CANADA - the connection between university basic research and the market

basic research

commercialization process

return oninvestment

8

market

successfulinnovation

failure in themarket

failure to reach the market

IP

new codifiedknowledge

results, discoveries and inventions

partialresearch

support

privatefunds

INNOVATION IN CANADA - the connection between university project research and the market

project research

commercialization process

potential IP

internalcommercializationprocess

solutions

problems

$ “in kind”

start up

purchase of marketable product

or the whole start-up company

publicfunds

taxes

new value-addedeconomic activity

successfulinnovation

return on investmenttaxes

benefits to society

return on investment

partner company