I can address it.
When we are doing public sector research, we start with a bright idea. We write a proposal describing that idea. It's evaluated by a public body. Typically it is also evaluated by other scientists to see whether it's a sensible idea. Then we get the funding, or we don't.
A private corporation, a private company, may know our expertise and ask us to answer a question for them, or they may ask us to work with them to develop an answer for a problem they have. In those cases, you work with them to decide the budget and how much work you can do. You tell them what you want to do and what it would cost, and they tell you whether they can afford to fund the research.
Let me give you an example from my own research. I deal with a firm for artificial insemination. I started looking at molecules in the sperm membrane to see how they would affect the sperm's recognition of the egg. That's basic, fundamental, discovery-level research. There are companies that sell semen for dairy bulls or for pigs or chickens. They thought they would like to be able to protect their sperm so that they could freeze that semen and use it for inseminating their females. I worked with the companies to look at ways to adapt the information I had from my basic research to better protect the sperm for freezing and thawing and to develop freezing and thawing methods for them.
That's the difference. If I hadn't done the basic research, I couldn't have developed the application, and the corporations wouldn't have been interested, and sometimes companies aren't interested anyhow. Sometimes they want to pay you just to answer a specific question for them, such as whether a machine works or not.
You can go to corporations, and the best operations we have in Canada are those partnerships through which we work with a company in partnership with a federal agency and get extra money into the private sector that will enable them to develop new products, make them more profitable, and benefit the overall Canadian industry. In these federal-public partnerships Canada does exceptionally well--much better than the U.S., according to my U.S. colleagues.