Tag Archives: Industry Canada

Industry Canada, Vanessa Clive, nanotechnology, and assessing economic impacts

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I have long (one year) wanted to feature an interview with Vanessa Clive, Nanotechnology Policy Advisor; Industry Sector, at Industry Canada but have been distracted from sending interview questions until about several weeks ago.  (Sometimes, I lose track *of time.)

Here then are the interview questions  I asked and the answers Vanessa very kindly provided,

1.      Could you describe your role? 

Industry Canada’s mandate is to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians.  As an emerging/nascent technology, nanotechnology can help contribute towards this objective.  Our role vis a vis nanotechology is to:

  • better understand Canadian capabilities, strengths and expertise
  • contribute to effective policy development
  • contribute to the development of a supportive business environment for innovation and commercialization

2.       Recently, you helped organize an event in Washington, DC (International Symposium on Assessing the Economic Impact of Nanotechnology, March 27-28, 2012). Could you give a brief overview of why this was needed, who attended, & what happened? 

The Symposium was organized jointly by the OECD Working Party on Nanotechnology (WPN) and the National Nanotechnology Coordinating Office for the U.S. National Nanotechnology Initiative (NNI), and hosted by the American Association for the Advancement of Science (AAAS). I was a member of the OECD WPN Steering Committee which worked with the NNI to organize the event.

Some 200 people participated from OECD and non-OECD countries, representing a broad spectrum of sectors, industries, and areas of expertise. In addition to plenary sessions, industry break-out discussions were organized on advanced materials, food packaging, transportation, nanomedicine, energy, and electronics.

The decision to hold the event recognized the important potential contribution of nanotechnology to innovation, as reflected in rising R&D investments over the past decade. OECD member countries wish to explore ways to assess returns to these investments and the broader economic impacts of nanotechnology more generally, as well as the challenges for effective innovation policy development in this area.

The agenda and presentations can be viewed at http://nano.gov/node/729. Four background papers on related topics were also commissioned for the Symposium and can be found at the same site.

3.      What can be said about nanotechnology’s economic impacts and what information (e.g. bibliometric measures, no. of patents, etc.) is being used to arrive at that conclusion? 

Given the still relatively early stage of developments, the range of potential applications, and other factors, there are major challenges to estimating potential impacts. Holding this Symposium was intended to provide a start to develop useful indicators and other assessment tools.

4.      So, how is Canada doing relative to the international scene?

As discussed above, given the lack of measures, it is difficult to assess our relative position. However, Canadian federal and provincial governments have invested increasing amounts in nanotechnology R&D over the past decade or so. These investments have supported an array of government funding programs and contributed to the establishment of a world-class R&D infrastructure and research community and a growing number of companies involved in nanotechnology across industry sectors in Canada.

5.      Is there anything that stands out from the symposium?

It was clear from the level of attendance, presentations, and discussions which took place, that there is widespread interest in the symposium topics. To learn more about the event, I would encourage interested people to visit the website where presentations and background papers are posted – http://nano.gov/node/729.

6.      Are there any Industry Canada plans in the works for developing new assessment tools given that, unlike many countries, Canada does not have a national nanotechnology funding hub? 

We are working with the OECD to develop useful tools that would enable us to estimate or measure the economic impacts of nanotechnology.

7.      Are there any plans for a nanotechnology ‘road map’ similar to the digital media road map? Or perhaps there’s something else in the works?

Industry Canada is focused on assisting Canadian industry to grow, compete in the global economy, and create jobs. In order to do so we are building the department’s knowledge base about Canadian activities and capabilities, contributing to sound policy development in domestic and international for a, and contributing to building a supportive business environment for responsible innovation and commercialization in this field.

Thank you for the insight into the Canadian nanotechnology situation and the issues around economic impacts as per Industry Canada and tor taking the time to do this . Also, I am very happy to see the link to the presentations and background papers for the March 2012 nanotechnology and economic impacts event in Washington, DC (first mentioned in my Jan. 27, 2012 posting).

I did briefly visit the website which is a US National Nanotechnology Initiative website. The event page for which Vanessa provided a link hosts the background papers and links to other pages hosting the presentations and the agenda providing a rich resource for anyone interested in the issue of nanotechnology and its possible economic impacts.

* Changed preposition from ‘to’ to ‘of’ on Sept. 19, 2013.

Nanotechnology’s economic impacts and full lifecycle assessments

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A paper presented at the International Symposium on Assessing the Economic Impact of Nanotechnology, held March 27 – 28, 2012 in Washington, D.C advises that assessments of the economic impacts of nanotechnology need to be more inclusive. From the March 28, 2012 news item on Nanowerk,

“Nanotechnology promises to foster green and sustainable growth in many product and process areas,” said Shapira [Philip Shapira], a professor with Georgia Tech’s [US]  School of Public Policy and the Manchester Institute of Innovation Research at the Manchester Business School in the United Kingdom. “Although nanotechnology commercialization is still in its early phases, we need now to get a better sense of what markets will grow and how new nanotechnology products will impact sustainability. This includes balancing gains in efficiency and performance against the net energy, environmental, carbon and other costs associated with the production, use and end-of-life disposal or recycling of nanotechnology products.”

But because nanotechnology underlies many different industries, assessing and forecasting its impact won’t be easy. “Compared to information technology and biotechnology, for example, nanotechnology has more of the characteristics of a general technology such as the development of electric power,” said Youtie [Jan Youtie], director of policy research services at Georgia Tech’s Enterprise Innovation Institute. “That makes it difficult to analyze the value of products and processes that are enabled by the technology. We hope that our paper will provide background information and help frame the discussion about making those assessments.”

From the March 27, 2012 Georgia Institute of Technology news release,

For their paper, co-authors Shapira and Youtie examined a subset of green nanotechnologies that aim to enable sustainable energy, improve environmental quality, and provide healthy drinking water for areas of the world that now lack it. They argue that the lifecycle of nanotechnology products must be included in the assessment.

I was hoping for a bit more detail about how one would go about including nanotechnology-enabled products in this type of economic impact assessment but this is all I could find (from the news release),

In their paper, Youtie and Shapira cite several examples of green nanotechnology, discuss the potential impacts of the technology, and review forecasts that have been made. Examples of green nanotechnology they cite include:

  • Nano-enabled solar cells that use lower-cost organic materials, as opposed to current photovoltaic technologies that require rare materials such as platinum;
  • Nanogenerators that use piezoelectric materials such as zinc oxide nanowires to convert human movement into energy;
  • Energy storage applications in which nanotechnology materials improve existing batteries and nano-enabled fuel cells;
  • Thermal energy applications, such as nano-enabled insulation;
  • Fuel catalysis in which nanoparticles improve the production and refining of fuels and reduce emissions from automobiles;
  • Technologies used to provide safe drinking water through improved water treatment, desalination and reuse.

I checked both Philip Shapira‘s webpage and Jan Youtie‘s at Georgia Tech to find that neither lists this latest work, which hopefully includes additional detail. I’m hopeful there’ll be a document published in the proceedings for this symposium and access will be possible.

On another note, I did mention this symposium in my Jan. 27, 2012 posting where I speculated about the Canadian participation. I did get a response (March 5, 2012)  from Vanessa Clive, Nanotechnology File, Industry Sector, Industry Canada who kindly cleared up my confusion,

A colleague forwarded the extract from your blog below. Thank you for your interest in the OECD Working Party on Nanotechnology (WPN) work, and giving some additional public profile to its work is welcome. However, some correction is needed, please, to keep the record straight.

“It’s a lot to infer from a list of speakers but I’m going to do it anyway. Given that the only Canadian listed as an invited speaker for a prestigious (OECD/AAAS/NNI as hosts) symposium about nanotechnology’s economic impacts, is someone strongly associated with NCC, it would seem to confirm that Canadians do have an important R&D (research and development) lead in an area of international interest.

One thing about this symposium does surprise and that’s the absence of Vanessa Clive from Industry Canada. She co-authored the OECD’s 2010 report, The Impacts of Nanotechnology on Companies: Policy Insights from Case Studies and would seem a natural choice as one of the speakers on the economic impacts that nanotechnology might have in the future.”

I am a member of the organizing committee, on the OECD WPN side, for the Washington Symposium in March which will focus on the need and, in turn, options for development of metrics for evaluation of the economic impacts of nano. As committee member, I was actively involved in identifying potential Canadian speakers for agenda slots. Apart from the co-sponsors whose generosity made the event possible, countries were limited to one or two speakers in order to bring in experts from as many interested countries as possible. The second Canadian expert which we had invited to participate had to pull out, unfortunately.

Also, the OECD project on nano impacts on business was co-designed and co-led by me, another colleague here at the time, and our Swiss colleague, but the report itself was written by OECD staff.

I did send (March 5, 2012)  a followup email with more questions but I gather time was tight as I’ve not heard back.

In any event, I’m looking forward to hearing more about this symposium, however that occurs, in the coming weeks and months.

ArboraNano in Washington, DC for a two-day shindig on nanotechnology and economic impacts

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The Organization for Economic Cooperation and Development (OECD), the American Association for the Advancement of Science (AAAS), and the US National Nanotechnology Initiative (NNI) are hosting an  International Symposium on Assessing the Economic Impact of Nanotechnology, March 27 – 28, 2012 in Washington, D.C. Registration for the event opens Feb. 10, 2012 (first come, first served) and it appears to be a free event.

From the NNI’s event page, here’s some information about their objectives and who they’re inviting to attend,

The objective of the symposium is to systematically explore the need for and development of a methodology to assess the economic impact of nanotechnology across whole economies, factoring in many sectors and types of impact, including new and replacement products and materials, markets for raw materials, intermediate and final goods, and employment and other economic impacts.

Attendees are being invited from a broad spectrum of backgrounds and expertise, including technology leaders, key decision makers, economists, investors, policy analysts, scientists and engineers from industry, business, government, academia, and the general public.

They have close to 40 confirmed speakers for this event and, interestingly (for a Canadian and/or someone interested in nanocrystalline cellulose), one of them is Reinhold (Ron) Crotogino of ArboraNano.

Crotogino, network director, president and chief executive officer (CEO) of ArboraNano, the Canadian Forest NanoProducts Network, has extensive experience and education in the forest products industry. From a Feb. 10, 2011 news item in Pulp & Paper Canada,

Crotogino is a graduate of the University of British Columbia (B.A.Sc. 1966) and McGill University (Ph.D. 1971), both in chemical engineering. He worked with Voith for a few years after graduating, but spent much of his career as a researcher and research manager with Paprican (now FPInnovations). [emphasis mine]

For anyone not familiar with the nanocrystalline cellulose (NCC) story in Canada, FPInnovations initiated and has been heavily involved in the development of NCC. (My Dec. 15, 2011 posting features one of my more recent stories about NCC in Canada.)

It’s a lot to infer from a list of speakers but I’m going to do it anyway. Given that the only Canadian listed as an invited speaker for a prestigious (OECD/AAAS/NNI as hosts) symposium about nanotechnology’s economic impacts, is someone strongly associated with NCC, it would seem to confirm that Canadians do have an important R&D (research and development) lead in an area of international interest.

One thing about this symposium does surprise and that’s the absence of Vanessa Clive from Industry Canada. She co-authored the OECD’s 2010 report, The Impacts of Nanotechnology on Companies: Policy Insights from Case Studies and would seem a natural choice as one of the speakers on the economic impacts that nanotechnology might have in the future.

ETA March 29, 2012: Vanessa Clive did contact me to clarify the situation and her response has been included in my March 29, 2012 follow up posting. (scroll down approximately 1/2 way)

For anyone who wants to see the agenda before committing, here’s the link. I did take a look,

Session One: Setting the Scene

This plenary session will introduce the conference themes, objectives and expected outputs. The session will provide an overview of the technologies and challenges that impact the assessment of the economic impact of nanotechnology and some indications of metrics being used

[break]

Session One con’t: Government Panel Discussion

This panel session will consider the issues raised in Session One, with a focus on the particularities of each country in addressing the challenges in assessing the economic impact of nanotechnology [emphasis mine]

I would have appreciated a little more detail such as which speakers will be leading which session and when they say “each country” exactly which countries do they mean? Oddly, no one involved with this event thought about phoning me to ask my opinion.

Nanomaterials, nanomedicines and nanodefinitions

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I was chatting earlier this week, in the most general way possible, with someone in Ottawa about nanotechnology and regulations.  The individual noted that nanotechnology initiatives in various countries and regions are attaining traction and I think the evidence is in the increased (and heated) discussion/debate about defining nanomaterials. The latest twist in the discussion comes from Alok Jha, a science writer for The Guardian. In his Sept. 6, 2011 article, Nanotechnoglogy world: Nanomedicine offers new cures, he tackles the topic from the nanomedicine perspective.

The EU ObservatoryNano organisation, which supports European policy makers through scientific and economic analysis of nanoscience and nanotechnology developments, produced a report on the ethics of nanotechnology written by Ineke Malsch, director of Malsch TechnoValuation. She says the problem with regulating medical nanotechnology can be how to define a product’s area of application. “The distinction between a medical device and a pharmaceutical is quite fuzzy. …”

How do you regulate a drug-releasing implant, for example? Is Cuschieri’s nano-carrier a pharmaceutical or a medical device? One of [the] key issues, says Malsch, is that there is the lack of common agreement or definition, at the international level, of what a nanoparticle is and what constitutes nanomedicines. “There is continuing discussion about these definitions which will hopefully be resolved before the end of the year.”

Current regulations are more than enough for current technologies, says Malsch, but she adds that this will need to be kept under review. But over-regulating now would also be a mistake. Pre-empting (and trying to pre-regulate) technology that does not yet exist is not a good idea, she says.

This view was backed up by Professor Andrew Maynard, the director of the Risk Science Centre, who says: “With policy-makers looking for clear definitions on which to build ‘nano-regulations’, there is a growing danger of science being pushed aside.”

This (the fuzzy distinction between a pharamaceutical and a medical device) certainly adds a new twist to the debate for me.

Also, I should note that this article’s banner says: Nanotechnology world, in association with Nano Channels.Tim Harper (Cientifica and TNTlog) noticed in an earlier Guardian article on nanotechnology (from his July 7, 2011 posting),

My delight at seeing a sensible piece about “nanotechnology in everyday life” by Colin Stuart (@skyponderer) published in the Guardian Newspaper turned to puzzlement when I noticed that the article was “Paid for by NanoChannels.”

There seems to be some distinction between “paid for” and “in association with,” but I can’t confirm that at this time. Now back to the topic.

In my August 31, 2011 posting, I noted the latest salvo from Hermann Stamm, of the European Commission Joint Research Centre, Institute for Health and Consumer Protection where he reiterated that a hard and fast definition based on size is the best choice. In his Sept. 6, 2011 posting, Andrew where he expands on a concern (i. e. policymakers will formulate a definition not based on scientific data but based on political pressures and/or public relations worries) that I’ve given short shrift. From his Sept. 6, 2011 posting,

And despite policy makers repeatedly stating that any form of nanomaterial regulation should be science-based, I have the sense that they are scrambling to use science to justify a predetermined conclusion – that engineered nanomaterials should be regulated on the basis of a hard and fast definition – rather than using science to guide their actions.Instead, I would suggest that we need to put aside preconceptions of what is important and what is not here, and start by asking how new generations of sophisticated (or advanced) materials interact with biological systems; where these interactions have the potential to cause harm in ways not captured within current regulatory frameworks; and how these frameworks can be adapted or altered to ensure that an increasing number of unusual substances are developed and used as safely as possible – no matter what label or “brand” is applied to them.

He was a little more explicit about what he thinks are the reasons behind this preference for a “hard and fast definition” in his April 15, 2011 posting,

Sadly, it now looks like we are heading toward a situation where the definitions of nanomaterials underpinning regulations will themselves be based on policy, not science.

This scares the life out of me, because it ends up taking evidence off the table when it comes to oversight, and replacing it with assumptions and speculation on what people think is relevant, rather than what actually is – not good for safety, and certainly not good for business.

 

All this got me to thinking about the Interim Policy Statement on Health Canada’s Working Definition for Nanomaterials and the public consultation which ended August 31, 2010.  According to the website, we will be learning the results of the consultation,

Reporting to Canadians

Health Canada will make the results of this consultation available on this Web site.  Health Canada will take further steps to illustrate how the policy statement will be applied in specific contexts.  These steps could include guidance documents for specific products or substances, targeted workshops and postings of answers to frequently asked questions.  The Interim Policy Statement on Health Canada’s Working Definition for Nanomaterials will be updated as comments are received, as the body of scientific evidence increases, and as international norms progress.

If you have any questions, contact nanotechnologies@hc-sc.gc.ca.

Strangely, there’s no mention of the 29 submissions that were made (my May 27, 2011 posting)  or a listing of who made the submissions as was done for Canada’s ‘innovation consultation’ or, more formally, the Review of Federal Support to Research and Development (which started in Oct. 2010 and ended in Feb. 2011 and received some 250 submissions).

Tony Clement announces Canadian government nano investment in two Alberta firms

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Tony Clement, Canada’s Minister of Industry, announced investments totaling over $500,000 to two Alberta-based firms associated with nanotechnology. From the news release on Marketwire [ETA Aug.18.10: there’s also this link to the item on Nanowerk],

The Honourable Tony Clement, Minister of Industry, today announced contributions of $285,268 to Sonoro Energy Limited and $257,000 to IntelligentNano Incorporated from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP). The funding supports innovative research and development projects that will assist both firms in developing high-tech solutions for global markets.

“Our government is investing in science and technology to create good jobs, strengthen the economy and improve the quality of life of Canadians,” said Minister Clement. “This government is supporting Canadian firms that successfully develop and apply innovative technologies. Canada’s Economic Action Plan is bolstering scientific research and commercialization, while creating good jobs and economic growth.”

Edmonton boasts Canada’s largest and most technologically advanced nanotechnology research infrastructure, centred around the National Institute of Nanotechnology (NINT). NINT is a joint initiative between the National Research Council of Canada, the University of Alberta, and the Government of Alberta.

So there you have it, the follow up to yesterday’s news flash. If you’re curious about the two companies, Sonoro is using the money to,

[support] a project that will seek to accelerate the commercial upgrading of heavy oil into synthetic crude, by small and medium- sized producers in remote areas. As the technology is both scalable and repeatable, Sonoro is actively pursuing heavy oil resource opportunities, particularly in remote global regions where there is heavy oil that could benefit from low-cost upgrading technology. Sonoro Energy has developed and patented a proprietary sonic reactor technology platform that transfers sonic energy on an industrial scale to physical, chemical or biological processes.

IntelligentNano will apply its funds towards,

further development of the “Sonacell,” a device for amplifying and accelerating the growth of therapeutic stem cells. Stem cells have an ability to self-renew and the potential to replace diseased and damaged tissues in the body, without the risk of rejection and side effects. Adults have a very small number of such cells; IntelligentNano has developed the “Sonacell,” which will make it possible to harvest and grow a sufficient quantity of a patient’s own stem cells for use in medical therapies. The “Sonacell” opens the door to the possibility of treatments for diseases like diabetes, arthritis, Parkinson’s and spinal cord injuries.

Canada goes on a science spending spree (of sorts)

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The Canada Excellence Research Chairs (CERC) programme (part of the 2008 Canadian federal budget) has announced 19 new researchers are coming to Canada. According to the CERC FAQs (frequently asked questions) page, each researcher in this programme will receive,

$1.4 million annual award paid to the chairholders for seven years [which] will allow researchers to build the teams and acquire the tools they need to conduct world-class research.

Having your funding guaranteed for seven years is a highly attractive proposition, especially with the current economic situation. (Idle thought: I am curious as to the inside story about why only 19 of 20 grants were awarded.)

I understand we have achieved quite a coup and some extraordinary and accomplished scientists will be setting up shop in this country. Kudos to the government for the establishment of guaranteed funding for these scientific endeavours. Here’s Tony Clement (Minister for Industry Canada) offering an enthusiastic endorsement and back pat for his programme, first from the news release on the Industry website,

“The Government of Canada recognizes the importance of supporting leading-edge research and world-class researchers,” said Minister Clement. “The CERC program confirms Canada’s standing as a global centre of excellence in research and higher learning. [emphasis mine]This program supports our government’s commitment to ensuring Canada’s future economic growth by investing in innovation and research capacity in priority areas.”

then (from the article in Globe and Mail by Elizabeth Church and accessed through the Canadian Science Policy Research Centre),

“Canada has to become more than ever a magnet for talent,” said Industry Minister Tony Clement, in Toronto to name the successful applicants. The announcement, he said, builds on other federal initiatives, such investments in campus building projects as part of its stimulus spending and the Vanier scholarships for graduate students. All are central, he said, to the government’s innovation agenda.

“Talk is cheap. We are actually doing,” Mr. Clement said later in an interview, referring to critics in the science community who say the Harper government has not committed to research in the same way as U.S. President Barack Obama and other foreign leaders.

So let’s review, this programme has attracted 19 stellar scientists. That’s very nice but what about all the other scientists in Canada? Are they going to get guaranteed funding? Then there’s this, Where is the money for this CERC programme coming from? I found an answer of sorts in the UK’s Guardian Newspaper (Fears of brain drain as renowned British scientists move to Canada by Ian Sample),

Britain is to lose several of its foremost scientists next year following a recruitment drive to attract top brains to Canada.

The four researchers will leave their posts at UK universities for better-funded positions in institutions across the country.

The British researchers won four C$20m (£13m) awards created by the Canadian government, the most by any country outside the US, which is to lose nine scientists to the scheme. The C$20m is awarded over seven years and comprises C$10m from the scheme and $C10m from the university. [emphasis mine]

So, 19 x $20M = $180M/year x 7 years = $1.26B with 1/2 from the federal budget and the other 1/2 (or more?) from university budgets (much of it federal money).

ETA (May 21, 2010): Rob Annan (Don’t leave Canada behind) kindly corrected my arithmetic as per this (ps. quick note on the math re. funding. It’s 19 researchers x $1.7M annually ($3.4 accounting for matching funds). The $20M is the total commitment over seven years.) The rest of what Rob had to say is in the Comment section.

In another Globe and Mail article (accessed through the Canadian Science Policy Centre) by Steven Chase and Elizabeth Church,

For Ottawa, it was one of the biggest bets on scientific research in a generation. But for the man at the centre of Canada’s worldwide drive to recruit top scientists, it was a “ballsy” play that at times resembled a bidding war for NHL free agents.

Derek Burney said in some cases foreign universities and employers counter-bid furiously to keep star researchers during the just-completed global talent scout for Canada Excellence Research Chairs. The effort cost Ottawa $190-million in grants and netted 19 renowned scientists who are moving to Canada.

“It [was] almost like a hockey negotiation where you are trying to entice a player from another team. And the other team wants to hang on to them, and so they offer more money,” said Mr. Burney, who heads the selection board of the Canada Excellence Research Chair program set up by the Harper government.

During a global recession when deficit pressures would appear to demand restraint on all fronts, Canada instead travelled the world with a chequebook – looking to bulk up on the scientific innovation it hopes will strengthen economic foundations here at home. [emphases mine]

I’m glad to see that they are keeping tight control of the purse strings (where’s a sarcasm symbol when you need one?). Meanwhile in the UK, Sample goes on to note a possible reason for the British losses,

The moves come after several senior scientists in Britain warned that a brain drain was imminent as the new government prepares to make swingeing cuts in public spending that are likely to have a heavy impact on research funding.

At least one of the other researchers comes to us from California, a US state which is in such dire financial straits that there’s been talk of bankruptcy.

Two observations. First, I notice that none of these recruits are from Canada. I guess there’s an assumption that research excellence exists only outside of the country.

Second, “Talk is cheap” (Clement’s comment) is something that’s said when there has been too much talk and no (or not enough) action. I don’t think it fits a situation where there has been no talk.

In case it got missed, I have mixed feelings about this latest development. I hope it works out well and that the government doesn’t rest on this accomplishment but goes on to address Canada’s need for science policy, science education, science literacy, science communication, public engagement, encouragement for business support of science, and support for the academic science which is practiced in this country.

ETA (May 21, 2010): For another take on the matter, read Sumitra Rajagopalan’s opinion piece in the May 21, 2010 online edition of the Globe and Mail, When science gets political, long-term knowledge is lost. From the article,

Since Canada has lagged behind its Western counterparts in the manufacture and sale of high-tech products, this focus has been welcomed by industry. But this government’s interest isn’t really “applied science” but a more short-sighted “utilitarian science” – technologies that can quickly solve immediate, narrowly defined problems, rather than long-term investments in building knowledge. Worse, we are beginning to see an intertwining of scientific priorities with politics.

These trends are very apparent in some of the CERC choices. The biomedical and computing research chairs are beyond reproach, but some of the other choices reflect a narrow, utilitarian focus.

She goes on to thoughtfully support her point. I would highly recommend reading this, if you are interested in the issue.

Business research and development and Canada’s innovation gap (the last of this 4 part informal series)

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This is definitely the last in this informal series on Canadian innovation with an occasional foray in the nanotechnology scene. I have commented more frequently in my postings on government funding of R&D (research and development) but Canadian business should also be included in the equation.

Canadian businesses don’t tend to invest as much in R&D as their counterparts in other countries. From the Mobilizing Science and Technology to Canada’s Advantage report issued in 2007 by the Industry Canada,

Businesses in Canada need to do more to improve their productivity. Canada’s private-sector R&D as a proportion of GDP is below levels in Japan, the US, Germany, and France. Similarly, the number of patents produced in Canada is low compared with many other OECD countries. Canadian firms also invest less in new machinery and equipment, which embody the latest innovations, than do many of their competitors.

Whether you agree with current patenting laws and trends or not, it is a standard measurement for innovation. Konrad Yakabuski’s article in the Globe and Mail’s Report on Business, which kicked off this series, notes this Canadian business R&B investing,

Between 1981 and 2000, Canadian companies’ expenditures on R&D grew by almost 10 per cent annually. But since 2001, they have been flat in real, after-inflation terms and have declined by fully one-fifth when expressed as a percentage of gross domestic product.

Yakabuski’s article goes on to paint a bleaker picture of Canadian business investment in R&D.

There are many reasons for these problems as noted in the Industry Canada 2007 report. However there’s one reason that I didn’t see mentioned and it may be due to geography.

I live in British Columbia (Canada) and the Vancouver area has a very active technology community where I worked for some years as a technical writer. My observation (it’s not unique but I note it because I haven’t seen any analyses which mention it) is this: the business plan for most of these companies (over 90% and I think I’m being conservative) is simple.

  1. Get an idea for a technology.
  2. Start up a company.
  3. Get some R&D funding from the government.
  4. Get some interest from the media.
  5. Sell the product and grow the company to a few million dollars in revenue.
  6. Now, sell the company to another larger business (usually from the US) and retire.

The local branch of PricewaterhouseCoopers produced a BC TechMap (the version I saw was produced in either 2004 or 2005) that depicts visually the number of technology companies started in BC and the assimilations and mergers over the years. There were hundreds of companies and it was extraordinary to see that most had been acquired. (I think the map starts in the 1980s and the 2004/5 version gave viewers information valid to 2003.) To summarize brutally, the business plan is to sell the business not grow it or invest in it for longevity. I suspect that where BC and nanotechnology are concerned that the same business plan will apply.

Tomorrow, science’s exquisite corpse.