Here is look at R&D spending by sector.

1. Has Canada lost its
way in terms of
innovation
PAUL YOUNG CPA, CGA
AUGUST 26, 2019

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Financial Planning and Analysis
• SME – Cloud Base Solution
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• What is innovation?
• Why do businesses failed to innovate
• Why does govt failed to support innovation
• Innovation Ranking
• Blog #1 – Innovation
• Blog #2 – 2015 Election Promise
• Innovation / Spending
• Brain Drain
• Solutions
• Summary

4. 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.
Source -
http://www.businessdictionary.com/definition/innovation.html

5. Why do businesses failed to innovate
• Businesses are driven by cash flow and their profits.
• Poor business culture
• Lack of leadership
• Misunderstanding current and future market trends
• Taking your customers for grants (we always done it this way)

6. Why does govt failed to support
innovation
• Government role is not to pick winners and losers
• Government fiscal management cycle (Deficits and Debt)
• Government choosing bad policies (carbon taxes, hikes to payroll
taxes, more regulations, etc.
• Government focus tends to be short-term (How can we get re-
elected)

7. Innovation World Ranking
Source - http://www.wipo.int/publications/en/details.jsp?id=4330
• Canada has fallen two spots since Justin Trudeau took office in 2015
• Canada is less competitive today due to many fail policies of the Liberal Government -
https://www.slideshare.net/paulyoungcga/2019-election-canada-and-global-
competitiveness-may-2019

8. Blog #1 – Innovation
• Liberals give the impression that previous govts did nothing and that is wrong!
https://www.slideshare.net/paulyoungcga/federal-goverment-canada-innovation-
investment
• https://globalnews.ca/news/2888159/canada-ranks-15th-on-global-innovation-
index-heres-where-we-fall-behind/
• Canada was ranked #15 on innovation in 2015 as compare to 2018 where Canada is
now ranked 18th
• Trudeau made the statement that Canada was both back and that his government
would be different, right? Canada is struggling to attract FDI due to more
regulations and higher taxes -
https://business.financialpost.com/news/economy/foreign-direct-investment-in-
canada-plunges-on-oil-exodus-1

9. 2015 – Liberal Election Platform
• 2015 Election Platform:
• https://beta.theglobeandmail.com/report-on-business/small-business/starting-out/liberals-innovation-pledge-gets-mixed-response-from-startups/article26644360/
• https://www.itworldcanada.com/article/ottawa-announces-1-2-billion-strategic-innovation-fund/394681
• Liberals said Harper did nothing on innovation which is not entirely correct. Harper programs
• SDTC - http://www.sdtc.ca/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=333&cntnt01origid=341&cntnt01detailtemplate=news-
details&cntnt01returnid=143&hl=en_CA (This was started by Martin, but continue under Harper)
• Next Generation of Fuels - http://www.nrcan.gc.ca/energy/alternative-fuels/programs/3643
• R&D Program http://www.kpmg.com/ca/en/services/tax/r-d-incentives-and-services/pages/canada.aspx
• CME - http://www.parl.gc.ca/Content/HOC/Committee/412/FINA/WebDoc/WD6615327/412_FINA_PBC2014_Briefs%5CCanadianManufacturersAndExporters-e.pdf
• http://www.researchinfosource.com/pdf/2013Top100List.pdf
• http://www.conferenceboard.ca/press/newsrelease/14-03-26/canada_s_pharmaceutical_sector_could_get_r_d_boost_from_free_trade_agreement_with_europe.aspx
• http://www.canadapharma.org/News.asp?a=view&id=96
• https://techcrunch.com/2017/04/20/canada-is-north-americas-up-and-coming-startup-center/
• https://beta.theglobeandmail.com/news/politics/ottawa-reveals-details-of-15-billion-fund-for-science-
strategy/article21957502/?ref=http://www.theglobeandmail.com&
• http://www.plant.ca/general/canada-remains-competitive-business-tax-environment-worldwide-kpmg-infographic-137272/
• http://www.pwc.com/en_CA/ca/energy-utilities/publications/pwc-technology-oil-sands-report-2013-11-en.pdf
• http://www.workingforest.com/canadian-forest-products-research-and-innovation-receives-global-recognition/

10. Blog #2 - Innovation
Who is better for innovation?
@justintrudeau who call small business tax cheats -
https://globalnews.ca/news/3741638/canadian-tech-ottawa-trudeau-small-
business-taxes/
@andrewscheer whose former government introduced many policies to better
support the tech sector like tax cuts - https://globalnews.ca/news/1356467/tax-
cuts-since-2005-net-canadians-30b-pbo/
Source - https://www.slideshare.net/paulyoungcga/2019-election-technology-
sector-canada-may-2019

11. Innovation / Spending
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190826/dq190826a-eng.htm

12. Brain Drain
I cannot believe the rhetoric going around about the vibrant IT sector –
• https://www.cbc.ca/news/canada/kitchener-waterloo/prime-minister-trudeau-kitchener-tech-hub-
announcement-
1.5099705?fbclid=IwAR1tGzcvzzdu0ywPk9Qv2XS59At4aMGafy91XAq2xZn_FIq_VQeUAtU4LMw
• Brain Drain - https://www.theglobeandmail.com/business/technology/article-canada-facing-brain-drain-as-young-
tech-talent-leaves-for-silicon/
• Canadian Technology community not happy with small business tax reforms -
https://globalnews.ca/news/3741638/canadian-tech-ottawa-trudeau-small-business-taxes/
• There needs to be better alignment of education with jobs of today and tomorrow -
https://www.slideshare.net/paulyoungcga/skills-gap-education-and-training-canada-march-2019
• Canada continues to see a brain drain - https://thelogic.co/news/silicon-valleys-ties-to-canada-are-growing-despite-
tensions-between-ottawa-and-washington-report-says/
• High cost of living in cities like Toronto and Vancouver could see people moving to cheaper locations -
https://www.newinhomes.com/blog/is-toronto-at-risk-of-a-brain-drain-to-montreal
• Source - https://www.slideshare.net/paulyoungcga/2019-election-issues-technology-sector-canada-april-
2019

13. What needs to happen for Canada
• All levels of government and the private sector need to create
incubation centers at all colleges and universities across Canada
• Government needs to revisit tax policies to ensure those policies
are both fair and competitive with other jurisdictions
• Government needs to re-think its regulation. More regulations are
not the answer
• Government needs to do better job when it comes to measuring
grants and loans when it comes to success of business
• Government needs to stop pushing the climate agenda at all cost.

14. Summary
• Programs need to be accessible by everyone
• Government role is not to pick winners and losers
• Incubation centers could be leverage, but that should also include
investment from all levels government and the private sector
• Clean Tech companies continue to lose money
• Private sector continues to struggle in Canada when it comes to
investing in R&D
• SDTC was set up in early 2000s as way to support new clean technology