More Private R&D Crucial for Canada's Atlantic Region, Report Warns

Whether it's oil, gas, mining, lumber, fishing or farming, economies dominated by natural resource exploitation are subject to periods of boom and bust. In order for the four provinces of Canada's Atlantic region to shield themselves from such market swings and scarcity problems, it is necessary to build R&D partnerships and to collaborate more than ever, concludes a report released by Dr. Alan Cornford of GPT Management Ltd., Marin Consultants, Inc. and Gardner Pinfold Consultants Ltd.

Innovation and Commercialization in Atlantic Canada, released in March, aims to assist the Atlantic Provinces in identifying ways to improve the area's economy through R&D, innovation and  commercialization programs. The key for the region, the authors say, is to encourage more private R&D investment and activity.

The report notes in 2001 the federal government of Canada stressed the importance of improving the nation’s R&D performance to foster an innovative economy. There are specific challenges, the authors caution, that arise for the Atlantic region in this regard: while the region represents 7.7 percent of the nation’s population, only 1 percent of the nation’s total industry investment in R&D is spent there.

Increasing industrial R&D activity in the region is of special concern, the paper notes, because of the ratio of industrial R&D to academic R&D investments seen in the most innovative economies. Cornford et al. explain that in those countries with the strongest economic performance, applied R&D within industry is "at least three to four times that of universities, and twice that of universities and governments combined." For Canada's Atlantic region, the report states the ratio is reversed; university R&D investment is three times that of industry.

Innovation and Commercialization in Atlantic Canada calls for an aggressive two-pronged program to facilitate investment in industry-driven applied R&D in these provinces. Firstly, help industries with their capability of undertaking applied R&D and, secondly, aid industry’s use of innovations developed by universities and other institutes.

The report states the Atlantic region must significantly invest in physical and intellectual infrastructure and leverage investment and activity in R&D to help boost innovation and commercialization activity. The region should capitalize on existing physical and intellectual assets and build upon strengths in people, universities and research centers, and key industries. University expertise, assets, capabilities and partnerships are essential to the area and may well hold the key to the region’s future, the authors assert.

After conducting a SWOT analysis of the region — reviewing the investment and structure of the $410 million five-year Atlantic Innovation Fund launched in 2001 by the federal government and identifying several best practices in knowledge/technology transfer — the authors conclude the imperative challenge facing the Atlantic region is to advance a universal vision for the area. They encourage the four provinces to put forth a collective action to foster an environment conducive to innovation and to develop a competitive strategy for the development of the region’s economy.

Innovation and Commercialization in Atlantic Canada can be found at: http://www.acoa.ca/e/library/reports/icac.shtml