Transcript The Importance of SMEs to Canada

The Importance of SMEs
to the Canadian Economy
Presenter:
Peter Cashmore
A/Executive Director, Ontario Region
What we don't do well enough is to bridge between the
researcher and the marketplace. We don't do a good enough
job in commercializing research. We haven't yet developed
what they call a 'receptor capacity' in business to take the new
idea from the lab and bring it to the market place to the point of
sale. And that involves a bundle of things from the availability of
venture capital, putting investors together with researchers to
create a culture of commercialization in our universities, and
again, we're taking steps to address that.
Minister of Industry, Alan Rock, March 17, 2003
The Importance of SMEs to
the Canadian Economy
• Introduction
• NRC-IRAP Overview
• SMEs in Canada
• The Importance of SMEs to Canada
• Challenges Facing SMEs in Canada
• Key Activities to Promote Success
• Commercialization
• Conclusion
• Questions?
NRC-IRAP Overview
• Federal Initiative for SMEs
• IRAP Services:
– Technical Expertise and Advisory Services
– Research Assistance Contributions for R&D Activities
• IRAP Non-Repayable Contributions
• IRAP Youth Employment Strategy (YES) programs
Types of NRC-IRAP
Projects
Cluster Activities
Network Member Support
IRAP Advice
IRAP funding
Technical
feasibility
Identification
of business
opportunity
Development
Proof of
concept
ITA Advantage
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232 ITAs
More than 147 locations across Canada
11 funded clients per ITA
31 non-funded clients per ITA
On average make about 100 client on-site visits
per year per ITA
• 75% have a Masters or Doctorate
• Experience in Private or Industrial Research & Development
• Actively engaged in 100 communities
SMEs in Canada
• Definition of SME
• Majority of companies in
Canada are classified as smallsized enterprises
• Significant potential for
economic growth.
• Over 1.5M companies were
registered in Canada
The Importance of
SMEs to Canada
• Job creation
• Revenue for Canada – boosts
wealth
• Aids in making Canada a player in
the world market
Key Activities to
Promote Success
• Networking
• Partnering
• Extending global reach
• Establishing strong customer
relationships
• Commercialization
Commercialization
• Commercialization a priority for
Canada
• Dependent upon:
– Technological Innovation
– Business Development
• Time-to-market factor
– Ensuring fresh business concept
– Ensuring solid economic viability
Casebank Technologies
Commercialization
• Over 160 commercialization programs in Canada
• IRAP commercialization partners:
– Western economic Development (WD)
– Canada Economic Development (CED)
– Atlantic Canada Opportunities Agency (ACOA)
• Programs provide:
– Funding
– Consulting
– Networking Services
Example:
SME-University-IRAP
Players:
• Company: Found Aircraft Development Inc. Parry Sound ON.
• University of Toronto
• IRAP – 2 ITAs
Opportunity:
• Re- introduction of popular bush plane (FBA-2C)
• One of original designers from the 60s came out of retirement
to “take advantage of new material development and design
techniques”.
• New plane called Bush Hawk-XP
ROLES:
IRAP:
• ITA make connections with U of T (UTIS) and client
• IRAP adds financial support for project
• Literature/patent searches.
U of T:
• Introduces firm to cutting-edge CAD technology
Results:
• Greater load capacity through new slotted wing flap.
• Landing gear streamlined.
• Size of rear doors increased and open 180 degrees.
Benefits:
• 75 production jobs
• New technology
• Sales!
• Innovation Leader Award (2002)
Sideline:
• IRAP ITA at U of T
• IRAP introduces lean Manufacturing
• Found’s Chief Engineer – U of T graduate.
Conditions for Successful
National Innovation Systems
• A solid science base anchored in higher education and/or research
organizations that nurture cutting-edge research while developing
human resources with high level qualifications in science,
technology and engineering.
• A culture of entrepreneurship underpinned by market incentives
and conditions to undertake risky activities.
• A significant portion of firms actively engaged in cross-border trade
and investment, given that for most countries the bulk of genuinely
new products or processes will come from abroad.
• Strong industry-science linkages, allowing firms to better exploit the
output from public research and helping researchers to better
respond to industry needs.
Conclusion
• Questions?
Share of population aged 25-34 with at least tertiary
education, 2002
60
50
40
30
20
10
Source: Education at a Glance, 2004
R
R
JP
N
CA
N
O
K
SA
O
N
U
FI
N
BE
L
SW
E
ES
P
IR
E
S
FR
A
U
K
BR
A
G
ZL
N
D
N
IS
L
L
EU
LU
X
G
RC
CH
E
N
LD
O
EC
D
D
PO
N
PR
T
T
U
U
H
A
IT
A
K
CZ
E
EX
SV
M
TU
R
0
Venture capital investment flows as a
percentage of GDP
Average over 1995-20021
Per cent
Early stage
Expansion
Buy-outs and others
0.6
0.5
0.4
0.3
0.2
0.1
IS
L
U
SA
L
E
G
BR
N
LD
CA
N
SW
BE
R
R
FI
N
N
O
IR
L
K
O
ES
P
D
EU
FR
A
CH
E
D
N
K
CZ
E
PO
L
IT
A
JP
N
SV
K
A
U
T
N
ZL
G
RC
H
U
N
A
U
S
PR
T
0.0
1. 1995-2001 for Australia, Japan, Korea and New Zealand. Countries are
ranked according to the sum of early stage and expansion.
Source: OECD Venture Capital Database, 2003
Banks and insurance companies
Pension funds
Corporate investors
Other
AUS
NZL
FIN
AUT
Countries ranked according
to sum of bank, insurance
and pension funds
CZE
GBR
USA
ITA
DNK
DEU
NLD
HUN
ESP
FRA
SWE
IRL
GRC
JPN
POL
KOR
PRT
CHE
ISL
CAN
BEL
NOR
SVK
Source: OECD Venture Capital Database, 2003.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Business and Public spending on R&D as a
percentage of GDP, 2003
Private R&D
Public R&D
Per cent
5
4
3
2
1
E
SW
FI
N
JP
N
R
O
K
H
E
C
SA
U
IS
L
K
N
D
EU
D
T
EL
B
A
R
U
A
FR
D
B
G
S
U
EC
O
A
N
R
LD
N
A
C
L
ZE
O
N
C
IR
ES
P
IT
A
N
ZL
N
T
K
U
H
SV
PR
R
L
C
R
G
TU
PO
M
EX
0
2003 or latest available year (from 2001 to 2003, except for Austria 1998 and Switzerland 2000).
Source: Main Science and Technology Indicators Database.