LINKAGES AND NETWORKS
One of the critical elements of Canada's innovation system is the various linkages and networks that promote interaction between the different parts of the system. The Committee heard how networking is important since, for innovation, time is of the essence and collaboration is critical. The sharing of ideas creates many new ideas which accelerates the rate of progress. University scientists and business people need to link together to provide university graduates who are ready for the market. Some of the main examples of networking presented to the Committee were the Networks of Centres of Excellence, the Industrial Research Assistance Program, as well as new information technologies and tools such as the Information Highway, Strategis and CANARIE.
A wise man told me one time that if you keep your ideas to yourself, you have one idea, but if you share it with ten people who have ten ideas, you have ten ideas.
A. Networks of Centres of Excellence
Canada's Networks of Centres of Excellence bring together scientists from university, government, and industrial laboratories to work at the leading edge of scientific and technological research. Since 1990, the Networks have investigated questions in fields as diverse as space research, respiratory health, protein engineering and telecommunications. In 1993, the House of Commons Standing Committee on Industry, Science and Technology, Regional and Northern Development undertook a review of the Networks of Centres of Excellence. The Committee report confirmed the excellent work and value of the Networks of Centres of Excellence, recommending that the government renew the funding for Phase II.To evaluate the proposals made for Phase II of the NCE program, an International Peer Review Committee was appointed, with members chosen from the research community both in Canada and abroad. This was done in an effort to ensure an international standard of evaluation and in order to avoid potential conflicts of interest within the Canadian scientific community. The five equally weighted criteria used when judging the proposals for the NCE program were: research excellence; training in key technologies; partnership building and networking; knowledge/technology transfer and exploitation; and management of R&D.
The Networks of Centres of Excellence program has encouraged the formation of contacts across Canada and across disciplines. In doing so, many witnesses testified it has introduced a new approach to research which will profoundly affect science in Canada.
They've been particularly successful in connecting the best researchers in the country. I would make the case that we have researchers across the country that are very capable. We are not going to have them all in one location because of our geography, and focusing the research of these folks in areas of importance to Canada and linking this research to private and government sectors is very important.
During the roundtables, the Committee heard strong praise for the success of the Networks of Centres of Excellence program.
These 14 Centres of Excellence are universities without walls. They link up the best researchers in every single one of our 86, 87 universities across this country, including the very smallest of them and, say each of you participate in excellence. . . [B]y putting those together, we can establish critical mass, where we are taking on the best in the world in the quality of our discovery science and in building the businesses out of these Centres of Excellence to enhance the prosperity of Canada.
The Committee was informed that to safeguard these Networks, the ongoing funding for this program should be guaranteed.
Given the success of these Centres, I would like to make the case that funding should be stabilized. By stabilized I mean that this funding should become part of the S&T funding we provide for the country and be placed as an A budget in an appropriate place so that we don't go through the process every four years of, do we continue to do this or not?
[T]o renew the very successful Network of Centres of Excellence program which is going to run out of funds in 1998-99. The government will be called upon to make a decision shortly with respect to this program.
B. Industrial Research Assistance Program
Another government program which received high praise during the roundtables was the National Research Council's Industrial Research Assistance Program (IRAP). This program has played a vital role in promoting the development and exploitation of technology in small- and medium-sized enterprises (SMEs) since its inception in 1947. IRAP uses a unique approach to assist SMEs. The program helps Canadian businesses by providing timely and direct technical assistance, critical information, and financial support. Its aim is to give a competitive edge to Canadian industry. IRAP helps firms to acquire new technologies which enables them to compete more effectively with other companies. The new Canadian Technology Network (CTN) is built on IRAP.
[E]verybody wants to make money and not take any risk. That's where I think IRAP is filling a very important gap. IRAP is more than a program. It is a network of people across the country - industrial technology adviser. It is a value-added service.
We just don't give money. We work with the company in structuring their project and finding the right help they need, and basically we share the risk with the companies. . .
IRAP works with businesses that have a broader technical capability. The manufacturing sector accounts for 75 per cent of our clientele whereas the services area makes up the remaining 25 per cent. This proportion has increased by 6 per cent since 1991, and more and more businesses are coming for funding. Following the disappearance of several government programs, IRAP is one of the few remaining programs providing sizeable grants.
It is worthwhile noting, regarding IRAP's contributions, that we invest in people and not in infrastructures. In this way, when a project is not successful, the people remain and they will create new businesses.
In fact, we have compared IRAP's performance with the manufacturing sector. Fifty-five percent of our clients consider competition as a key ingredient of their business plan. . . versus 16 per cent in Canada. They consider themselves more technically advanced than the competitor - 50 per cent versus 25 per cent. They have considered developing their technology for improving their position in the marketplace. Sixty-six per cent believe it's more important, versus 33 per cent. . .
The fundamental difference between the CTN and other information systems is that you find a person at the other end who will give you the service. I try to refer to the combination of IRAP and CTN as my virtual multinational. Fundamentally, when a SME goes into the IRAP-CTN network it will find all of the services a multinational would find at its fingertips within the corporation. In fact, the mission of the Canadian Technology Network is to provide electronic access to information and services. I would emphasize the services aspect for the small- and medium-sized enterprises using technology. . .
I would like to give you some statistics relating to the program. In 1995, we did a study of the IRAP projects carried out in 1991-1992, given that we had to wait long enough for the various products to come onto the market. Every dollar invested in an IRAP project leads to $20 in retail sales.
In 1995-96, for every dollar the government invested in IRAP, the firm invested two dollars.
In 1991, when we looked at the leverage effect of the IRAP program, each direct job created cost the government $8,111, and that's after a few adjustments. It also doesn't include indirect jobs. Finally, in 1991-92 we had created 9,388 jobs.
At the early stage, clearly the focus should be on R&D. At the "Is it inventable?" stage, the essence of success is R&D. I agree that the support for R&D is absolutely the single most crucial element, through support programs such as IRAP, which were terribly useful to companies like us in our early stages and still are. We've used IRAP extensively and very successfully.
I'd like to say a good word about IRAP. I think it's doing a great job, and I think we should have more of such funding.
We as a company incubated in the NRC and we had IRAP funding to get us going, but I believe we have given back many times more than what we have had invested in us. We have to provide the excess and the availability to those technological entrepreneurs who would like to have a go at this new economy.
C. The Information Highway
The Committee was informed of the growing importance of the Information Highway to Canada's S&T efforts. The government goal that Canada should be the world leader in the Information Highway by the year 2000 with a high quality, accessible, low cost network was supported by witnesses. The Information Highway carries the information traffic that is part of the dissemination of knowledge, and its speed allows immediate interaction in text, voice and image that is almost as good as being there. By setting a course to promote the Canadian Information Highway, market opportunities are opened up for Canadian companies that produce the sophisticated hardware that is the Highway's backbone, and the software that makes the Highway easily usable.
i. Strategis
Strategis is an Industry Canada initiative that was launched on the Internet in March 1996 to provide information for on-line business research. It offers over 50 information products grouped in 8 categories ranging from company information to human resources and training. The Committee heard that by 1 October 1996 Strategis was receiving over 130,000 hits (or accesses) per day.
ii. CANARIE
The Committee heard how new developments with CANARIE should further help promote S&T.
[A]n advanced networking infrastructure supporting Canadian science and technology research would involve providing very broadband networking capacity to link universities, government labs, research libraries, and industrial R&D facilities to each other and to their counterparts around the globe, together with related services and distributed computing services. . .
CANARIE is working with the universities and others across the country to define a similar initiative that we are calling CA*net II. . .
It is our belief that in the years ahead advanced networking infrastructure of the CA*net II type will have a profound impact on all S&T activities, perhaps as profound as the invention of the computer itself. S&T research is an inherently global activity. It's inherently collaborative, interactive, and information-intensive. These are the hallmarks of activities that are ripe to be transformed by advanced networks.
Funds like [Technology Partnerships Canada] and CANARIE help small- and medium-sized enterprises share the risk of their projects. . . [A] program like CANARIE has smaller funds, but moves much more quickly and is working very well in the technology field.