Dan Herman GKWCC On innovation we're falling behind 1.20.2016
We’re falling behind.
Canada’s place in the Global
DEEP Centre Inc.
The DEEP Centre: an entrepreneurial think tank
The DEEP Centre’s research informs action on
the two following axis:
1) Understanding the changing nature of
entrepreneurship and innovation-enabled
growth in the global economy
2) Assessing how governments and firms can
adapt and foster innovation, economic
growth and employment
Three key questions:
• How to do you build competitive companies?
• What are the investments in technology,
capital and people that enable that success?
• How do different levels of government
facilitate that success?
Our work – 250 interviews + a year with executives
WIPO Global Innovation Index 2015:
• 16th down from 8th in 2011
World Economic Forum Global Competitiveness Report 2015:
• 13th down from 10th in 2011
• 26th in business innovation
OECD Productivity Report 2015:
• Growth in Canada’s labour productivity over period 1995-2013 28th
out of 35
Conference Board Innovation Report Card:
• 13th of 17 countries, “D” grade
Canada’s Relative Performance
SMEs who export ?
Less than 10% of SMEs export.
In Germany >40%.
Of 30 OECD countries, the share BERD
undertaken by large Canadian companies is the
Less than 20% of firms have worked with a
college or university.
Training & Development
Employers spend on T&D has declined by about
40 per cent, from a peak of $1,207 per
employee in 1993 to $705 in 2013 (U.S.
employer spending significantly higher $1,071
Canadian Firms – leaders or laggards?
• New entrants in the billion-dollar category
were predominantly in the energy sector,
with a net addition of 17 energy companies
• The consumer retail and wholesale sectors
added 7 new entrants to the billion-dollar
• The engineering and construction sectors
added 4 new entrants to the billion-dollar
• The transportation sector added 3 billion-
dollar revenue firms.
Canada’s Billion Dollar Firms: Oil & Gas …
• In knowledge-intensive sectors of the
economy, a high degree of churn sees no
change in the number of billion-dollar
firms but wholesale changes in who those
• Sectors such as healthcare and
technology, for example, saw no net
increase in the number of billion dollar
• The IT sector, however, features a large
number of SMEs that are contributing to
significant growth and employment.
Canada’s Billion Dollar Firms: Knowledge Intensive Sectors
The Good News….
• 146 business accelerators & incubators
• 2nd most entrepreneurial ecosystem
in the world
High-growth enterprises, as
measured by employment (or
turnover), are enterprises with
average annualised growth in
employees (or turnover) greater than
20% a year, over a three-year period,
and with ten or more employees at
the beginning of the observation
Contribute approximately 50% of net
What Actually Matters: High Growth Firms
• Talent across sectors and disciplines enabled by strong links with
world-class post-secondary institutions;
• Enabling infrastructure and financing environment;
• Government leadership in both policy and regulation;
• Business culture that embraces risk and experimentation;
• Anchor industry firms who absorb and circulate talent, dollars and
ideas into their local ecosystems;
• Universities that remain on the cutting edge of research, teaching
and experiential learning.
Growth Ecosystems: What’s Necessary
Need to focus on scaling up growth
Tax policy and incentives needs to
reward growth not size.
Immigration reform to ease flow of
Firms need to step up and compete.
We have to decide if we’re going to play to win
Executive Director, DEEP Centre