If it ain’t broke… DON’T FIX IT!

1. If it ain’t broke… DON’T FIX IT! April 23, 2009 Monia Bergeron, SIEID Statistics Canada, Ottawa Statistics Canada • Statistique Canada

2. Why innovation matters Definitions Measures Government’s commitment The international stage Data availability Coming up the pipeline: General Business Panel Survey Government’s commitment Statistics Canada • Statistique Canada

3. Essential to help economy recover quickly, create jobs for the future and improve the quality of life for Canadians. Innovative economies typically exhibit the following characteristics: higher rates of economic growth greater job growth higher productivity greater investment in people and capital greater capacity for the economy to attract and retain highly qualified people. Why innovation matters Statistics Canada • Statistique Canada

4. Insulin, Treatment for Diabetes [1921, Frederick Banting, Charles Best] Telephone [1876, Alexander Graham Bell] Light Bulb [1874, Henry Woodward, Mathew Evans] Five Pin Bowling [1908, Thomas F. Ryan] Wonderbra [1964, Louise Poirier] Pacemaker [1950, John Hopps, Wilfred Bigelow, John Callaghan] Robertson Screw, 1908 [Peter Robertson] Zipper [1913, Gideon Sundback] Electric Wheelchair [1952, George Klein] Poutine [1957, Fernand Lachance] Cobalt-60 “Bomb” Cancer Treatment [1951, Harold Johns] Java Programming Language [1994, James Arthur Gosling] Bloody Caesar [1969, Walter Chell] Canadarm [1975, Spar Aerospace/NRC] Standard time [1878, Sir Sandford Fleming] Electron Microscope [1939, James Hillier, Albert Prebus] Ski-Doo [1922, Armand Bombardier] BlackBerry [1999, Mike Lazaridis] Radio Voice Transmission [1900, Reginald Fessenden] Birchbark Canoe [First Peoples] Basketball [1892, James Naismith] Retractable Beer Carton Handle [1957, Steve Pasjack] UV Degradable Plastics [1971, James Guillet] Instant Replay [1955, CBC’s Hockey Night in Canada] Why innovation matters Examples of Canadian innovations? http://www.cbc.ca/inventions/ • Goalie Mask [1959, Jacques Plante] • Marquis Wheat [1908, Sir Charles Saunders] • Pablum [1930, Alan Brown, Theodore Drake, Frederick Tisdall] • Lacrosse [First Peoples] • Electric Oven [1892, Thomas Ahearn] • Steam Fog Horn [1853, Robert Foulis] • Walkie-Talkie [1942, Donald L. Hings] • Alkaline Long-Lasting Battery [1959, Lewis Urry] • Paint roller [1940, Norman Breakey] • Electronic Music Synthesizer [1945, Hugh Le Caine] • WeeVac 6 [1990, Wendy Murphy] • Green Garbage Bag [1950, Harry Wasylyk, Larry Hansen, Frank Plomp] • Snowblower [1925, Arthur Sicard] • Self-propelled Combine Harvester [1937, Thomas Carroll] • Instant Mashed Potatoes [1962, Edward Asselbergs] • Explosives Vapour Detector [1985, Lorne Elias] • Marine Screw Propeller [1833, John Patch] • Plexiglas [1931, William Chalmers] • Key Frame Animation [1969, Nestor Burtnyk, Marcelli Wein] • CPR Mannequin: “ACTAR 911” [1989, Dianne Croteau, Richard Brault] • G-Suit [1941, Wilbur Rounding Franks] • Ardox Spiral Nail [1954, Allan Dove] • Automatic Lubricating Cup [1872, Elijah McCoy] • Crash-Position Indicator-CPI [1957, Harry Stevinson] • Caulking Gun [1894, Theodore Witte] • Separable Baggage Check [1882, John Mitchell Lyons] Statistics Canada • Statistique Canada

5. Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications (Frascati Manual, p. 30 and Respondent Guide, p. 3) Related scientific activities (RSA) complement and extend R&D by contributing to the generation, dissemination and application of scientific and technological knowledge (Frascati Manual, p. 31 and Respondent Guide, p.5) Definitions - concepts Statistics Canada • Statistique Canada

6. Definitions - concepts • Three types of R&D: • Basic R&D • With no expectations of an end result • Applied research • With expectations of an end result • Experimental development • Using existing technology to create new technology with expectations of an end result Statistics Canada • Statistique Canada

7. Performers and funders of R&D: Business Higher Education Government Non-profit organizations **Collaborative arrangements between sectors While activities overlap, their roles are distinct: Higher education: inspired by the spirit of enquiry; Government and private non-profit organizations: perform and support research for the public good. Business: integrates research findings into applications to create new products and processes; Definitions - players Statistics Canada • Statistique Canada

8. Business Main R&D performing sector of the economy Targeted at proprietary product development Partnerships with universities – specialize in knowledge creation, offer economies of scale and multidisciplinary teams Permits licensing of technologies Definitions - players Statistics Canada • Statistique Canada

9. Canada’s top 25 corporate R&D spenders - FY 07 (extraction) 1. Nortel Networks Corporation 2. BCE Inc. 5. IBM Canada Ltd. 7. Research in Motion Limited 13. Bombardier Inc. 17. Pfizer Canada Inc. 22. Imperial Oil Limited (Source: Re$earch Money, Vol. 22, No. 16) Definitions - players Statistics Canada • Statistique Canada

10. Higher education Becoming increasingly more important in R&D performance Advance knowledge and generate highly qualified people – open nature of work Free dissemination of new findings Increases the stock of a country’s knowledge Helps guide applied research Create intellectual property and commercialize it by licensing it to business or creating spin-off companies Definitions - players Statistics Canada • Statistique Canada

11. Canada’s top research universities – FY 08 1. Univeristy of Toronto* 2. University of Alberta* 3. Université de Montréal* 4. University of British Columbia* 5. McGill University* … 16. Dalhousie University* 21. Memorial University* 25. University of New Brunswick *Has a medical school Source: Re$earch Money, Vol. 22, No. 16) Definitions - players Statistics Canada • Statistique Canada

12. Government One of the smaller performers Performs some research to meet its needs and those of its citizens Mainly supports work in other sectors to correct market failures (fill the gap between private investment in basic research and the level that would maximise benefits to society) Highest investment in higher education sector of Group of Seven Definitions - players Statistics Canada • Statistique Canada

13. Top government R&D performers and funders (FY 07/08 estimates - (in thousands of dollars) Performers National Research Council Canada ($544) Agriculture and Agri-food Canada ($307) Natural Resources Canada ($229) Funders Canadian Institutes of Health Research ($784) Natural Sciences and Engineering Research Council ($725) Social Sciences and Humanities Research Council ($489) (Source: Federal Scientific Activities 2007/2008, catalogue number 88-204-xwe, Statistics Canada) Definitions - players Statistics Canada • Statistique Canada

14. Non-profit organizations Similar to government Performs little R&D Supports research of higher education through philanthropic activities. Definitions - players Statistics Canada • Statistique Canada

15. Gross Domestic Expenditure on Research and Development (GERD) Provides a statistical picture of the Canadian system of research Measures Statistics Canada • Statistique Canada

16. Measures Statistics Canada • Statistique Canada

17. Measures Trends in R&D performance, by sector, Canada, 1996-2008 Statistics Canada • Statistique Canada

18. Difficulty in measuring outcomes Benefits not necessarily immediately apparent No “one” breakthrough – culmination of sources Patents, licensing, commercialization, etc. Measures Statistics Canada • Statistique Canada

19. Electoral debates Clean energy Water management Regenerative medicine CANARIE, Canadian Light Source, Institute for Quantum Computing Centres of Excellence for Commercialization Budget $5.1 billion in new investments for science and technology $2 billion – higher education infrastructure(KIP – knowledge infrastructure program) Most advanced nations invest in S&T infrastructure during the economic downturn… Brain drain? Soviet Union in the 1990s NRC – CISTI reduced, IRAP increased Government’s commitment Statistics Canada • Statistique Canada

20. The international stage OECD, Main Science and Technology Indicators Statistics Canada • Statistique Canada

21. The international stage OECD, Main Science and Technology Indicators Statistics Canada • Statistique Canada

22. The international stage Statistics Canada • Statistique Canada

23. Selected data sources for international comparisons of science and technology activities Canada Statistics Canada, Science Statistics, Catalogue no. 88-001 This series, which consists of eight issues a year, presents a variety of science and technology statistics. Each issue concerns a different topic. Statistics Canada, Gross Domestic Expenditures on Research and Development in Canada (GERD), and the Provinces, Catalogue no. 88-221-XWE Annual data on GERD by science type and by funding and performing sector are also available in CANSIM table 358-0001 OECD Organisation for Economic Co-operation and Development, Main Science and Technology Indicators, Paris. Organisation for Economic Co-operation and Development, OECD Science, Technology and Industry Scoreboard, Paris. Data availability Statistics Canada • Statistique Canada

24. The GSS of business! General Business Panel Survey Statistics Canada • Statistique Canada

25. Background • STC’s present business statistics system: • designed to produce SNA indicators (GDP, trade figures, CPI) • STC’s Census and social surveys provide: • population distribution (needed for federal-provincial transfer payments, electoral reform, employment levels) • A new statistical opportunity exists : • to better understand firm behaviour & firm strategy. • to inform a wide range of policy questions • to monitor impacts of policy interventions (& over time) • to meet increasing need for qualitative information • obligation to efficiently complement existing quantitative data • Offers STC a new component of the business statistical system • enhance existing statistical system • better understand specific behaviours of Canadian businesses Statistics Canada • Statistique Canada

26. General Business Panel Survey (GBPS) Survey Content Phase (Core & Modular Design) Engagement of Academic & Business Communities International indicators coherence Research Laboratory Data Access Model Horizontality assured by ‘Core’/’Module’ conceptual design Integrated Business Database (IBD) clean linked longitudinal micro data (survey and administrative) Small and Medium Sized Enterprise (SME) Statistics Program Economic Globalization Indicators Project (EGI) (GVC) General Business Panel Survey (GBPS) – linkage component achieve efficiencies and avoid possible inconsistent results Dual Project ResponseTo New Opportunity Statistics Canada • Statistique Canada

27. Innovation strategies GPBS Themes (CORE) Value strategies Operational tactical activities Firm characteristics and outcomes Operational strategies Value tactical activities + GVC Module Innovation tactical activities + + Module Y Module X GVC Survey of Changing Business Practices in the Global Economy (MODULE) Core + Module opens up to horizontality Statistics Canada • Statistique Canada

28. For more information on science and technology statistics:Monia BergeronSubject Matter OfficerScience, Innovation and Electronic Information Divisionmonia.bergeron@statcan.gc.ca613-951-6423For more information on the GBPS:Paula Thomson(Project Manager, GBPS)Director - Science, Innovation and Electronic Information Divisionpaula.thomson@statcan.gc.cawww.statcan.gc.ca Statistics Canada • Statistique Canada