Science and Research Committee on Nov. 3rd, 2025

[Gay Yuyitung]

From a private equity perspective, it's probably a risk-and-reward sort of equation. I think that does exist here. I'd like to think it shouldn't be a problem. The other thing would be partly awareness of what colleges, universities and polytechnics can provide.

I would also say to go back to the whole idea of a coordinated strategy from the federal government to say that this is what is needed. We can only do so much from our perspective. We don't control the markets, but if there are policies that can encourage companies to stay in Canada, that would be what's needed.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Would you elaborate, please, on how Canadian start-ups emerging from research are currently attracting private sector investment? What works and what doesn't?

[Gay Yuyitung]

Having a good story and being able to pitch well may seem superficial, but it's about having the backup of data and a team behind you that can prove either you've done it before or you'll be able to do it and have a good pathway. I think that's what we're teaching them.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Can you please tell the committee about the major obstacles for research teams or institutions trying to move innovations from the lab into the private sector?

[Gay Yuyitung]

I'm sorry. I missed the first part of the question.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Can you please tell this committee about the major obstacles?

[Gay Yuyitung]

I'd go back to what I was recommending as actions. It's about senior leadership. There is some here, but it's about having the ability to pay quality leaders, whether they're already in Canada or we're attracting them to come to Canada.

One of the things we hear a lot from our start-ups and small businesses is that they need to go to the States at a much earlier stage to get financing. Whereas in the U.S. there are programs that give millions of dollars to de-risk something, our start-ups are getting hundreds of thousands, if that, and they're struggling to do that.

It's just apples to oranges. It's not a good comparison to say that you can do as much with much less.

[Aslam Rana, Liberal, Hamilton Centre, ON]

What strategies would you suggest for Canadian research-based start-ups to become investment-ready and attract global investments?

[Gay Yuyitung]

I think they're already doing it. They are tapping into a lot of the programs we have through Life Sciences Ontario or the colleges, universities and polytechnics. We have commercialization resources and supports for them. Ontario has a regional innovation centre network that supports them as well.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Thank you very much.

[The Chair, Liberal, Salma Zahid]

Thank you.

We will now proceed to MP Blanchette-Joncas for two and a half minutes.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Mr. Vincent‑Herscovici, I want to give you an opportunity to elaborate on your fourth recommendation.

I'm clear on the first three, developing an IP plan, funding technological readiness and introducing incentives to unlock the value of research.

Could you explain your fourth recommendation, please?

[Jesse Vincent-Herscovici]

I really appreciate your giving me this opportunity, because that recommendation deals with a crucial element.

The fourth recommendation is about making incentives available to researchers and the research community to unlock the value of their research results.

Right now, a young college or especially university researcher has to do three things for their dean: publish as soon as possible; do a good job teaching and be well regarded—getting students in seats is the business model, after all—and obtain funding from the three granting councils. Promoting research value is not one of those three things.

The third mission of graduate research and higher learning institutions is to have an impact on society by adding value. That requires incentives, because publications alone are no longer enough.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Earlier, I believe you said your transfer rate was 89%.

[Jesse Vincent-Herscovici]

Yes, it's 89.5%.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Very precise. I like that.

I'd like to understand what that rate means in terms of economic spinoff in Quebec, but also for the rest of the population.

[Jesse Vincent-Herscovici]

It's a very high rate. As the other witnesses told you themselves, the average rate for the transfer of Canadian inventions to businesses all over the country is between 33% and 50%. Bringing that up to almost 90% has a huge impact. It means that our small and medium-sized businesses are able to leverage those inventions.

We also know that inventing, while important, is not enough. Only when an invention meets a genuine societal need and brings added value does it become an innovation. To make that happen, we need to spend more time ensuring that the transfer happens here, with our businesses, before the technology is transferred out of the country.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

What I'm gathering is that your formula in Quebec is working. Is that correct?

[Jesse Vincent-Herscovici]

Our proof of concept holds a lot of potential. It just needs to be scaled up.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Thank you.

Do you have any other compelling information you'd like to share with us today?

[Jesse Vincent-Herscovici]

I suggest making IP more of a priority and looking at how heterogeneous the current environment is. The universities all have different collective agreements, so IP is managed differently. Best practices do exist, and some models appear to have more spinoff in the country than others.

I think it's important to look at that and find ways to have a more consistent approach in how IP is managed.

I got you in advance this time, Madam Chair.

[The Chair, Liberal, Salma Zahid]

Thank you. We have to keep track of time.

The last two rounds of questioning will be for MP Baldinelli and MP Jaczek for three minutes each, and then we will end this first panel.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Madam Chair, I want to thank the witnesses for being with us this morning.

I indicated at our last meeting that I was going to bring forward a motion for the study on AI. I want to do that during my time period. If I could, with the indulgence of committee members, I want to table this motion:

That, pursuant to Standing Order 108(3), the Standing Committee on Science and Research undertake a study of no fewer than four meetings on the federal government's approach to artificial intelligence, considering the committee's mandate to study matters related to science and research, which includes AI technology; that the committee invite:

(i) the Minister of Artificial Intelligence and Digital Innovation to appear for one meeting for no less than two hours,

(ii) federal officials from Innovation, Science, and Economic Development Canada, and

(iii) a range of AI industry representatives and experts; and

that the committee report its findings and recommendations to the House.

That is the motion before us.

[The Chair, Liberal, Salma Zahid]

Thank you, MP Baldinelli.

We have a motion on the floor. Is there any debate?

Go ahead, Monsieur Blanchette-Joncas.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Thank you, Madam Chair.

I would like to propose an amendment to Mr. Baldinelli's motion, to expand the study on AI. Basically, I want us to look at the relationship between AI and innovation and scientific research.

I printed out the amendment for my fellow members.