Thank you, Nobina.
The first fix is to invest in the sole program in the granting council suite that solves industry-identified problems and addresses the market pull. This is the college and community innovation program administered by NSERC, and it is bursting at the seams. The very modestly funded program offering a number of funding initiatives cannot keep up with demand from industry for applied research solutions that colleges can provide.
Unfortunately, this backlog in demand is forcing SMEs to put innovation on hold. Before CCIP launched in 2008, there were only 13 NSERC-eligible colleges. There are now almost 100 eligible colleges competing for only $35 million in annual funding. A modest $15 million increase in CCIP's budget would enable the program to meet the backlog of demand from their local industry partners.
A second fix is a national SME voucher program for late-stage commercialization support at approved R and D service providers, such as universities, colleges, and public and private R and D labs. SMEs are cash strapped. The SR and ED tax credit doesn't cover late-stage applied research. Investors won't open their wallets unless there is a guaranteed return.
Commercialization vouchers require companies to put skin in the game, leverage that contribution to get the R and D project done on an accelerated timeline, and get the innovations to market where customers with cash in hand are waiting. It works in Alberta and other provinces; it is used by the Dutch and the Australians. A national version with national definitions, but delivered regionally, would help Canada bridge the commercialization gap.
In closing, in our view, Canadians might be very good at cooperating, but there is plenty of room for improving our outcomes when it comes to collaborating for commercialization.
Thank you.