Lunch Seminar: Challenges facing the Canadian innovation system in the context of the global financial crisis
Dr Camille Limoges, former Deputy Minister of Research, Science and Technology for Quebec, Canada presented a paper entitled “Challenges facing the Canadian innovation system in the context of the global financial crisis” at a NACI lunch seminar held on 10 September 2009 at the Department of Science and Technology. Dr Limoges is currently a member emeritus at the Interuniversity Research Centre for Science and Technology (CIRST), Universit’e du Qu’ebec in Montreal, Canada. The seminar was attended by NRF staff, DST officials, the members of the NACI Secretariat, and other key stakeholders.
Dr Limoges set the scene with an overview of Canadian National System of Innovation (NSI). The major actors of Canada’s NSI are the Federal Government, the Universities, the Science Councils and the Industry. The Federal Government is a major funder of R&D, while the industry is both a major funder and performer of R&D. Canada’s current Gross Domestic expenditure on R&D (GERD) amounts to less than 2% of GDP. The industrial sector accounts for about 50% of GERD. Although Canada has very strong academic institutions of an international standard, the country produces less than 1% of world publications. The Science, Technology and Innovation Council advises the government on matters pertaining to the NSI.
He stated that the Federal government has also created two agencies, namely the Canadian Institute for Health Research, which focuses on health research and the Canadian Foundation for Innovation (CFI), which funds university research, construction of new buildings and new equipment for research.
He mentioned that the majority of firms in Canada that are owned by foreigners do not invest heavily in R&D. He highlighted that the business environment is conducive for venture capital investment. He also pointed out that the R&D incentives provided by the Federal Government have not yet yielded desired results. He referred the audience to Canada’s 2007 Science and Technology (S&T) Strategy for more information on S&T priorities in Canada.
Dr Limoges highlighted that unlike in most developed countries (where recession resulted in massive job losses), Canada’s economy did create some jobs during the recession. However, there was a decline in exports in the automobile industry. He concluded by highlighting that the Canadian government has intensified infrastructure investment since the start of the recession and also supported the development of new innovations.
