Summary:
Justin Trudeau told the world in 2015 that Canada should be know for its resourcefulness not its resources - https://www.macleans.ca/news/canada/what-justin-trudeau-plans-to-tell-davos/
Trudeau and his government focus has been setting up more and more agencies to manage innovation funds. Many of these agencies have liberal running them - https://financialpost.com/technology/liberals-supercluster-program-falling-short-of-promised-jobs-economic-growth
The goods-producing sector since Trudeau took office or about 6% of all the net new jobs. https://torontosun.com/opinion/columnists/gunter-the-public-sector-fared-very-well-during-lockdown or https://www.slideshare.net/paulyoungcga/employment-and-labour-market-canada-january-2022
I have also been saying for years that all colleges and universities should be innovation. The role of government is support innovation through proper policies and not throw money at the symptoms!
1. Canada was ranked 15th on the world innovation list in 2021 as compared to 16th in 2015
2. Other countries continue to pass Canada when it comes to R&D spending - https://www.ptk-gb.com/about/news/latest-news/South-Korea-the-most-innovative-country-in-the-world/
3. Liberals lack a plan when it comes to developing critical metals - https://www.nationalobserver.com/2022/02/25/news/us-congress-canada-permitting-sale-neo-lithium-chinese-company
4. Liberals fail to address issues that help attract invested capital to Canada including tax reforms, regulatory reforms, and other policies - https://www.cnbc.com/2021/07/13/americas-top-states-for-business.html
5. Canada has a very good educational system as a few higher education institutes are rank globally when it comes to innovation - https://www.timeshighereducation.com/rankings/impact/2021/industry-innovation-and-infrastructure#!/page/0/length/25/sort_by/rank/sort_order/asc/cols/stats
6. Access to capital has plague startups for years in Canada - https://financialpost.com/news/economy/a-wake-up-call-for-startup-funding-in-canada
7. Mining sector - https://www.fraserinstitute.org/article/policy-uncertainty-continues-to-hurt-canadas-mining-industry
8. More needs to be done to address issues with critical metals - https://www.tbnewswatch.com/local-news/greener-way-to-process-minerals-in-northwestern-ontario-highlighted-in-new-report-5110177
9. More needs to be done to support the manufacturing sector including the skill trades - https://www.reuters.com/article/canada-economy-pmi-idCAKBN2KY4RI or Blog - 4 Advantages of 3D Printing, According to an Expert - https://www.linkedin.com/pulse/blog-4-advantages-3d-printing-according-expert-paul-young/?published=t
10. Canada continues trail many countries when it comes to eCommerce - https://www.coredna.com/blogs/ecommerce-trends or Blog – Stats of the Week - Diagnosing the Consumer - https://www.linkedin.com/pulse/blog-stats-week-diagnosing-consumer-paul-young/?published=t
Chapter 2.ppt of macroeconomics by mankiw 9th edition
Policy Review| Innovation and Scientific Research (R&D)| Canada
1. Is Canada on the path to
innovation success?
Paul Young CPA, CGA
March 2, 2022
2. Paul Young CPA CGA -
Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos
3. Paul Young – Bio
• CPA, CGA
− 26+ years of Corporate Finance and Business
Solutions
− 17+ years in corporate finance and reporting
− 11+ years of analyzing government policies
− Blogger – Financial, Economic and Business Trends
− 8+ years in academia
• Advance Accounting
• Advance Management Information System
• Public Finance
• Advance Finance
• Audit Risk and Controls
4. Agenda
• What is innovation?
• Defining innovation
• Accounting for innovation
• Tax Treatment / Canada
• Tax Treatment / USA
• How to handle R&D?
• R&D / Canada – Trends
• Wafer Production
5. What is innovation?
• The process of translating an idea or invention into a good or
service that creates value or for which customers will pay.
To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need. Innovation
involves deliberate application of information, imagination
and initiative in deriving greater or different values from
resources, and includes all processes by which new ideas are
generated and converted into useful products. In business,
innovation often results when ideas are applied by the
company in order to further satisfy the needs and
expectations of the customers. Source -
http://www.businessdictionary.com/definition/innovation.ht
ml
6. Defining Innovation
• Innovation can mean different things to
different people
− Productivity improvements
− New product
− New product enhancements
11. How to handle R&D
• It is best to reach out to large firms like
PWC, Deloitte, Ernst & Young, BDO and
KPMG as part of your R&D filings
• You many also want to reach out to all
levels of government as part of accessing
research grants
• You may also want to build reporting
model/solution using analytics -
http://www-
03.ibm.com/software/products/en/plann
ing-analytics
12. Fast growing Companies/Canada
Source - http://www.profitguide.com/manage-grow/success-stories/2016-profit-500-facts-
about-canadas-fastest-growing-companies-107201
• Many new companies start either via University/College students or people
working in a particular industry
• Initial startups have to raise capital to fund their business, i.e. investors
• The fast pace of development, especially in areas like IT have allow
companies move ideas from incubation to market.
• There are many research hubs across Canada that were spawn by work
done at either university or colleges
14. Federal Government / Canada
• Main focus is clean technology
− Clean technology is $50B business in
Canada
• SDTC -
https://www.sdtc.ca/en/portfolio/project
s
• Many innovation funds available for
companies -
https://www.slideshare.net/paulyoungcga
/federal-government-programs-to-support-
innovation-and-business
15. Comment / IT World
• Source -
http://www.itworldcanada.com/article/budget-2017-a-
big-miss-on-innovation-opportunity/391737
IT World – March 24, 2017
16. Natural Resources/Canada
Source - http://samssa.ca/key-federal-
budget-2017-highlights-mining-innovation-
supply-service-support-perspective/ or
• Government put little emphasis on natural resources
• Natural resources are key component of finished goods for clean technology,
food, aerospace and automotive
• There are limited reserves in areas like vanadium, lithium and rare metals
17. Blog - Innovation
Innovation continues to move around as more and more companies are
creating innovation hubs. I have always supported hubs as a better way to take
ideas from innovation to market
Kirsty, you do realize that your policies have done little to support R&D, right?
@JustinTrudeau policies have been a disaster for innovation.
Innovation / 2017 https://www.slideshare.net/paulyoungcga/is-canada-on-
the-path-to-innovation-success
Clusters (see slide#70) https://www.slideshare.net/paulyoungcga/governance-
model-are-the-liberals-open-and-transparent
My latest work - https://www.slideshare.net/paulyoungcga/how-best-to-
support-business-startups or https://www.slideshare.net/paulyoungcga/2019-
election-innovation-and-rd-canada-2014-to-2017
20. Summary
• Innovation is key for Canada, especially
as part of growing/expanding the
economy
• Picking winners and losers is not the role
of government
• There needs to be clear map on how
moneys will flow from government as part
of maximizing the funds
• The government needs to focus all on
sectors not just a few sectors.