May 31 , 2017

In This Issue:


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GenomeGenome Canada considers awarding grants directly to companies

Genome Canada may expand its successful Genomic Applications Partnership Program (GAPP) and award funds directly to companies with the in-house capacity to develop potentially disruptive technologies. The current GAPP program - which announced the results of its latest competition May 26 - only funds university researchers with industry partners, usually small firms that lack the in-house expertise to undertake research projects....
BriefsNews Briefs

Agriculture and Agri-Food Canada (AAFC) has signed an agreement to boost agricultural research collaboration in four key areas...

The Univ of New Brunswick is capitalizing on innovation offset obligations of two major companies to establish Canada's first research centre for 3D metal printing for the defence and marine industries...

The Univ of Waterloo has secured $22.4 million cash and $5 million in in-kind support to establish a Multi-Scale Additive Manufacturing Lab...
PeoplePeople
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Read the Spring Issue of CIN
Newfoundland and Labrador represents a rare opportunity for genetics research. The province includes a high incidence of rare and complex diseases and multigenerational families whose clinical histories have been well-documented by provincial electronic health records. Sequence Bio, a data-driven biotechnology company in St. John's, hopes to take this information and turn it into better healthcare...

At over 16 metres, the Bay of Fundy has the highest tidal range in the world. This unique site also has the potential to supply thousands of homes with clean and renewable energy, if the unequalled power of the tides could be harnessed...

Researcher Spotlight: Dasha Atamanchuk
Postdoctoral fellows like Dasha Atamanchuk are a prime example of how the CERC program is attracting global talent to Canada. After completing her PhD studies in Sweden, she became a postdoctoral fellow with the group CERC.OCEAN group, which uses new technology to study biogeochemical and ecological changes in the global ocean...
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Canadian Innovation News (CIN) is R$'s new  free publication 
 dedicated to connecting the world to the latest and greatest 
 in Canadian innovation and technology.  
Archive- - - - - - - - - - - From the Archives - - - - - - - - - - -
A Decade of R&D

For this week, we dive into the RE$EARCH MONEY archives and look at the issue from exactly ten years ago: May 31st, 2007. 
 
One particular article might feel very familiar to modern readers: " Government asks CCA to examine reasons for low business R&D investment ".
 
The government of the day (Stephen Harper's newly elected Conservative government) was concerned about low spending by Canadian businesses on R&D, and asked the Council of Canadian Academies to investigate. The government had begun rolling out its "S&T Strategy" , highlighting Environmental Science, Natural Resources, Health Sciences, and Information/Communications Technology as key targets.
 
The report from the CCA on business innovation arrived two years later . In the report, the CCA highlighted the decline in Canadian productivity. As R$ reported:
 
Between 1984 and 2007, Canadian productivity slid from 90% of the US level to 76%. That has contributed to a decline in multifactor productivity (MFP) - factors that contribute to productivity outside of the influences of a firm's capital intensity and the quality of the workforce...
 
"Productivity is down 20% between 2001 and 2006. We've lagged behind in machinery and equipment and our use of ICT is 60% of the US level...Companies have to embrace innovation as a central focus of their business strategy ... Every business can be innovative whether it's in processes, distribution, manufacturing, design or development." [Said Robert Brown, then-president of CAE Inc .]
 
RE$EARCH MONEY's summary of the report's recommendation: 
 
While the report intimates that the primary responsibility of increasing innovative behaviour lies with the firms themselves, it addresses the issue of government policy, programs and incentives. The panel notes that Canada stands alone in its heavy reliance on tax incentives - the Scientific Research and Experimental Development (SR&ED) tax credit program. SR&ED costs more than $4 billion in foregone tax revenue and generates about $400 million in benefits to the economy each year. But the panel states that a fully refundable credit "would strengthen the incentive for larger firms to sustain the pace and continuity of R&D through downturns" and questions whether it should be used in a mix of other mechanisms.
 
And the "bottom line message":
 
[T]he overriding message is both clear and concise: Canada's productivity problem is overwhelmingly an innovation problem, compounded by too many upstream industries with little contact with customers and a small fragmented market offering smaller rewards for innovation and attracting fewer competitors.
 
The policy environment has changed. The early-stage funding issues that once faced Canada have been addressed through renewed focus on programs like VCAP and angel groups like NACO, as seen below in Notables.  The government has announced hundreds of millions of dollars to support innovative Superclusters, and the business community has its own champions for both Canadian innovation and scaleup firms.
 
Can this decades-old slide finally be reversed? It's uncertain. One thing's for sure: you'll find the answers within the covers of RE$EARCH MONEY.
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notables- - - - - - - - - - - - - - - Notables - - - - - - - - - - - - - - -
A collection of interesting science, technology, investment and innovation reports, press releases and other news bytes from around the web.

Welcome to Notables for May 31st, 2017.

First this week: 

The National Angel Capital Organization (NACO) has released their annual report on the state of Angel Investment in Canada, based on a survey of 35 active Angel groups, representing some 418 investments attracting $157.2m in support.

Some of NACO's findings include that the majority (68) of Angel groups are not-for-profits. A solid majority of angel groups have existed for over five years, are of diverse (but growing) sizes, and vary considerably in their level of investment activity. 

Overall investment from the community is trending significantly upwards, though: a 48% increase in the number of investments, and a 15% increase in the amount being invested.  Angels are also becoming a more important part of the whole funding process, working with other investors as part of larger syndicated investments, working to finance early-stage growth, and making follow-on investments in investee businesses.




Second, an insightful article from GE Reports Canada, breaking down some strategies "for thriving in the era of rapid digital transformation". It points to the growth of the Internet of Things (IoT) as a means by which agile businesses can "disrupt longstanding business models" quickly and effectively.  This is a serious issue in Canada, where businesses are often reluctant to "join the 4th Industrial Revolution" compared to counterparts elsewhere.

GE suggests that the answer is a "strategy of collaboration", where established businesses partner with startups that are developing new technology quickly. GE pointed to their "FastWorks" strategy as a blueprint for helping corporations and startups collaborate, and cites their successful Zone Startups Calgary hub, which has developed innovative ideas using fiber-optic cabling to instantly detect pipeline leaks, as examples of the strategy's effectiveness. 


Finally, a press release from the Government of Canada, laying out their intention to develop a Zero-Emissions Vehicle (ZEV) Strategy by 2018. Pointing to the outsized role of transportation in Canadian emissions (almost one quarter of all emissions in Canada come from transportation), the GoC wants to increase the number of ZEV vehicles on Canada's roads. A national Advisory Group has been established to "contribute to developing options for addressing the key barriers for greater deployment of these technologies", focusing on five areas: vehicle supply, cost/benefits of ownership, infrastructure, public awareness, and clean growth/clean jobs. 

Transportation Minister Marc Garneau commented that "by putting more zero emission vehicles on the road, we are investing in the future of cleaner transportation for all Canadians". 


Have a report or press release you want to share? Let us know and we'll put it in next week's edition of  
Innovation This Week! We're also posting our weekly Notables in our LinkedIn Group, so check it out there!
events- - - - - - - - - - - Upcoming Events - - - - - - - - - - -


Attend the 2017 Fundica  Roadshow to:

- Have a chance to witness the $1,000,000 Investment Award pitch -
- Connect with entrepreneurs, funding experts and advisors -
- Learn about important funding trends and opportunities -
- Discover available resources to start and grow your business -


Upcoming Dates:



2017 Women's Entrepreneurship Forum
June 1, 2017
TORONTO, ON


APEX Symposium 2017
JUNE 7-8, 2017
OTTAWA, ON
 
CANHEIT 2017
JUNE 13-16, 2017
KINGSTON, ON



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Rebecca Melville | RE$EARCH MONEY | 416-481-7070 | [email protected]

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