The Canadian Chamber of Commerce Canada’s Opportunities and Barriers for Success May 12, 2011 Toronto, Ontario Chris Gray Director, Innovation Policy [email protected].

The Canadian Chamber of Commerce

Canada’s Opportunities and Barriers for Success

May 12, 2011Toronto, Ontario

Chris GrayDirector, Innovation Policy

[email protected]

The Canadian Chamber of Commerce

• Our Members– Corporate Members– 420 Chambers– Associations

• Representing businesses of every size, from every sector and every region in Canada

• Mandate = Canadian Competitiveness

• Priority Files• Canadian IP Council

2011Federal Election

• Majority government should make lobbying more stable for four years.

• Harper’s mandate will develop over the next few months.

• Responsibility to deliver for business.

• “Orange Crush” in Quebec.• Chamber calling for a pro-growth

strategy. • Government will set cabinet posts

in the coming days, most likely return to work on May 30th or June 6th – Throne Speech, Budget.

CONSERVATIVE MAJORITY

Canada’s Business Game Plan

• Canada is an economic leader among the G8 nations.

• Decent growth due to global demand for commodities and better than expected expansion in United States.

• More than 300,000 jobs added to the Canadian economy in the last twelve months.

• With the loonie trading at or above par for the balance of 2011, Canadian businesses will be under more pressure to improve productivity to compete.

• Corporate tax reductions.

Conference Board of Canada Report

• Still lagging in productivity and living standards, loonie’s rise has helped somewhat.

• Canada continues to invest less in machinery and equipment than other major industrialized nations.

• Remain at the back of the pack on labour productivity, a key economic challenge for Canada.

• Income gap between Canada-U.S. has narrowed, but it and productivity gap forecast to grow again.

• Lagging investment ranks Canada 12th out of 17 countries.

Intellectual Property in Canada

• Effective criminal and civil enforcement requires policy and legislation.

• In 2007, two Parliamentary Committees (Industry and Public Safety) issued unanimous reports that called on the government to take action.

• Canada continues to lag in digital business innovation and investors are unwilling to embrace new business models built on a shaky IPR legal framework.

• Launched the Canadian IP Council in 2008.

Canada & IP

11th Most Innovative Economy

$29 CDN billion R&D funding in 2010

In 2007, Canadian culture and creative sector estimated at $84.6 billion

$1 million jobs in the culture and creative sector

IP for Innovation and Economic Growth

• Over 15,000 people are directly employment by the more than 50 research-based pharmaceutical companies in Canada. These companies contribute an annual $4 billion to the Canadian economy.

• In the Kitchener-Waterloo region, 400 high-tech companies (whose strengths are in software, microelectronics and telecommunications) generate revenues of $4.6 billion annually and employ 15,000 people.

• In BC, approximately 6,000 companies, active in the information and communications technologies sector, generate revenues of $9 billion and employ about 46,000 people.

IP for Innovation and Economic Growth

• International Chamber report – February 2011IPR:– benefit the economy; – promotes innovation;– helps firms monetize their

innovations and grow; and– helps SMEs grow.

• IP represents 4-11% of

GDP in G8 countries

R & D panel – CCC priority issues

• Government has a definite role to play, but businesses must also continue to evolve their business models with a greater focus on innovation.

• Government programs, like the Science Research and Experimental Development (SR&ED) program, are key to the early success for many Canadian companies.

• Venture capital is also a key element.• Ownership of intellectual property is of principal

importance to a successful business/post-secondary partnership. There should be one model that is used across the board.

• Adoption of smart technologies.

Economic Impact of IP theft in Canada

$30 billion

Barriers to Increasing Competitiveness

• Weak intellectual property rights laws• Inter-provincial trade barriers• Lack of start-up capital• Immigration policies• Lack of skilled workers

CCC’s Economic Edge Conference

• What can government do to better position Canada for future growth in ICT e-business adoption?

• How can we work together to better make the link between technology companies and venture capital?

• Can universities and colleges finally come up with one good model for the commercialization of research? Bridging the gap between universities/business/incubators.

• What conclusions will come from the government’s federal review of R&D in Canada?

• Is Canada a leader or laggard in green/smart innovation?

The Path Forward for Canada

Competitive business agenda

Encourage growth and

innovation for businesses of all

sizes

Promote Canada’s

advantages