The Jenkins report looms large over the federal government’s investment decisions in R&D and innovation and to date the results are decidedly mixed. With a stay-the-course Budget likely to make little difference in enhancing the outcomes in private sector R&D that Canada desperately needs to compete, all eyes are on money already invested in the system.
Recent announcements suggest the government’s work creating a series of support and assistance mechanisms may be bearing fruit. In 2013, venture capital investment jumped 31% year-over-year to $2 billion, largely the result of new public funds making their way into the financial ecosystem (see page 3). It’s the best year for VC since 2007 and the situation could improve further once the remainder of the government’s $400-million Venture Capital Action Plan is mobilized.
CAE Inc — one of Canada’s bedrock technology companies — has tapped the Strategic Aerospace and Defence Initiative (SADI) for a $250-million loan, leveraging at least $450 million of its own funds. Too bad SADI isn’t more adequately resourced and focused on a large suite of tech sectors like its predecessor — Technology Partnerships Canada.
In Ontario, an even more impressive leveraging of public funds is underway with a new investment by Cisco in a global innovation hub in Toronto. It’s part of a $4-billion commitment Cisco made in return for $220 million from the province.
With all sectors working in tandem, industry R&D enhancements can be realized. What’s needed now is greater investment in the mechanisms that are delivering the goods.
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