Finance department releases strategy to increase productivity and commercialization

In what is described as its first major economic strategy in 11 years, the Liberal government has released a new plan aimed at raising Canada’s stubbornly low productivity and accelerate the commercialization of new technologies. Entitled A Plan for Growth and Prosperity, the economic blueprint places innovation at the forefront of the drive to succeed in the global economy and addresses the challenges and opportunities posed by the emerging nations of India and China.

Released in tandem with the Economic Update, the Plan reflects much of the current thinking on now to stimulate Canada’s knowledge-based economy, from maintaining the research base built up since 1997 to ensuring the Canadian firms benefit from the global pool of knowledge and technology.

The report notes that Canada now has the highest rate of investment in university-based R&D among G-7 nations, measured as a share of GDP. It reaffirms the government’s commitment to maintain that leadership position. It also says major ongoing investments in equipment will be made and the monitoring and reporting of investments and research outcomes will be improved.

International R&D networks will also be strengthened so that university graduates will be able to disseminate global knowledge when they graduate.

The Plan also outlines a series of measures to stimulate private sector R&D and technology adoption by building a receptive investment environment, enhancing innovation through the taxation system and creating new programs.

Policy direction in the area of commercialization is largely absent, as from the report Industry Canada’s Expert Panel on Commercialization has not been released. The Plan states, however, that it will be encouraging clusters, cross-sectoral collaboration and strengthening the managerial and commercial capabilities of scientists and engineers. It also commits to implementing new models for managing government laboratories to strengthen clusters of university and business excellence.

The Plan can be found at www.fin.gc.ca.

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