Submission on the Government of Canada s design and implementation of the Canada First Research Excellence Fund

Transcription

1 Submission on the Government of Canada s design and implementation of the Canada First Research Excellence Fund

2 On behalf of our 150 members, the (the Council) is pleased to submit our comments on the design and implementation of the Canada First Research Excellence Fund. The Council s member CEOs and entrepreneurs represent all sectors of the Canadian economy. The companies they lead are collectively responsible for C$ 7.3 billion in annual research and development (R&D) investments and make up the majority of the top 30 R&D spenders in Canada. The Council welcomes the creation of the Canada First Research Excellence Fund (The Fund). 1 With the proper design and clear strategic objectives, The Fund has the potential to meet its ambitious goal of positioning Canada s post-secondary institutions to compete with the best in the world for talent and breakthrough discoveries and to excel globally in research areas that create long-term economic advantages for Canada. We believe The Fund also has the potential to encourage greater private sector involvement in research partnerships with postsecondary institutions, and to attract global product mandates that will bolster the Canadian economy for years to come. What opportunities would you see for the private sector to participate as a partner with post-secondary institutions in creating world-leading research programs that deliver economic benefits for Canadians? The Council s member companies have a long history of working with Canadian post-secondary institutions. However, the great majority of their R&D investments continue to be made in-house. There is significant scope to improve and strengthen the relationship between Canadian institutions and large companies, but key barriers must be overcome, relationships must be brokered and current partnerships must be scaled. Amongst our member companies, several research areas are considered to offer particular potential for global excellence. They include: agriculture, agri-food and agri-products; nanotechnology; 1 In responding to questions provided by Industry Canada, we surveyed some of the largest R&D spenders in our membership to better reflect their views. 2

3 new extraction and recovery schemes for the energy, oil and gas sector, including in-situ upgrading and the use of graphene; applied sub-surface geological mapping; mining, metals and materials engineering and mineral processing; material sciences, including 3D printing; big data and analytics; quantum computing; cloud computing and software applications; and health care products, services and applications. The Importance of Direct Funding Programs The aerospace and automotive industries are sectors where Canada has, or is approaching, a level of research excellence, buoyed by strong research partnerships between companies and institutions. A key contributor to this success is the existence of well-funded, re-payable contribution programs for strategic R&D projects (i.e. the Strategic Aerospace and Defence Initiative and the Automotive Innovation Fund). The Government of Canada is urged to consider additional sector-specific direct funding programs to strengthen research excellence and to offset the impact on large-scale R&D spenders of recent changes to the Scientific Research and Experimental Development (SR&ED) tax credit. Are there barriers or impediments to industry-academic collaboration in Canada that CFREF might help overcome? Speed of Execution A frequently mentioned barrier is the amount of time it takes for institutions to approve research partnerships and establish and/or scale up project teams. There are many instances of red tape, delays and institutional inertia. In one example, cited by a member company, it took a partner institution nearly six months to establish a research team after a particular project was approved. This inability to execute and meet deadlines is an incredible disincentive to forming businessacademic partnerships. It also limits most partnerships to long-term, experimental projects, while short- to medium-term ( solution-oriented ) research is done in-house. 3

4 The Fund could help overcome the speed of execution barrier by setting standards to ensure that institutions awarded funding have the capacity to execute in a timely manner. This includes streamlined and efficient legal and contracting processes and adequate human, financial and infrastructure supports. It is also essential for the Government of Canada to streamline, standardize and stabilize their application and approval process for The Fund. Adequacy of Facilities and Equipment Large research-intensive companies clearly prefer to work with institutions that have world-class facilities and equipment. To encourage more business-academic research partnerships, The Fund should focus on awarding institutions that have made, and continue to make, significant investments in world-class facilities and equipment, particularly those that surpass industry standards. Intellectual Property Policy Intellectual property (IP) is a challenging, contentious subject for both institutions and large companies. We recognize that universities are, by their very nature, expected to disseminate and share new knowledge and information and that by doing so they enhance Canada s reputation. We also appreciate the need for academics to publish their research regularly, in order to gain tenure and status. However, it is important to recognize that large companies, working in a highly competitive global economy, do not want to be put in a position where published information erodes their competitive advantage. Similarly, if the product being researched is to be embedded in a company s technology platform, it makes no sense to allow another entity or individual to fully own the IP. In many instances, it is the company who carries the biggest risk when forming a research partnership, with an R&D failure resulting in potentially significant bottom line consequences. A flexible and negotiable intellectual property policy is necessary for companies to enter into research partnerships with institutions. How The Fund can address the issue of IP policy is beyond the scope of this submission. 4

5 What design elements could CFREF include to be most effective in encouraging private sector enterprises to enter into mutually beneficial research partnerships with post-secondary institutions? Building on Competitive Advantages and Encouraging New Engagement Models The Fund should avoid duplication at all costs and focus on highly strategic investments. In particular, it should build upon existing institutional competitive advantages (or new high risk/reward opportunities) and encourage the establishment of coalitions between Canadian and/or international institutions to strengthen proposals and bridge gaps in research excellence. As such, leveraging partnerships should be a key (but not mandatory) metric when judging applications. Attracting the Best People Large companies go to where the best people are. The reputations of individual project leaders (e.g. research chairs) and research teams play a significant role in determining whether a company chooses to form a research partnership. Large companies most often look to develop direct relationships with established research teams, led by reputable individuals who are flexible, open-minded and willing to collaborate. They also prefer cohesive and team-oriented departments or faculties over those that are a collection of individuals. To encourage more business-academic partnerships, it is important that Canadian institutions are equipped with the tools and resources (e.g. human, financial and infrastructure supports) necessary to attract, develop and retain top talent and grow world-class research teams. And, because relationships matter so much to companies, brokering or facilitating these relationships must become a focus for both the federal government and institutions. Incenting Deeper Working-Level Partnerships Research partnerships work best when collaboration is meaningful and routine. This requires regular engagement between institutional research teams and company representatives. Our member companies have been clear that the pay and walk away approach, built around quarterly, semi-annual or annual check-ins, is outdated and, often, counter-productive. 5

6 Large companies are interested in being active investors in their research partnerships. Active partnerships provide enhanced accountability, focus and direction. They also result in better research and commercialization outcomes and build trust between the company and institution, leading to additional projects and expanded research agendas. To successfully encourage business-academic partnerships, The Fund should emphasize and support active partnerships. Emphasizing Recruitment Opportunities and Skills Development An important driver for companies when developing research partnerships is access to a recruitment pipeline for top-tier talent. In particular, the experiential learning component of most research projects gives companies the opportunity to see students in action, plying their trade alongside potential future colleagues. This removes an element of risk from the recruitment process. Working with student researchers also creates an ecosystem of people who become experts in a company s products or services. When these researchers move on to other jobs or research projects, they transfer their expertise with them and indirectly promote it to others, becoming an important business development application for companies. Considering the importance companies place on knowledge transfer and talent development, The Fund should emphasize the recruitment of top Canadian and international graduate students, and post-doctoral fellows (and undergraduate students, when applicable). As well, it should consider experiential learning opportunities, including funded internships and co-op placements, as a key metric when judging applications. Conclusion We commend the Government of Canada for launching the Canada First Research Excellence Fund. We look forward to further developments that can serve the interests of Canadian post-secondary institutions, their students, teachers and researchers, firms and the Canadian economy, as a whole. 6