1Statistics Canada Statistique Canada23/04/2009 If it ain’t broke… DON’T FIX IT! Monia Bergeron, SIEID Statistics Canada, Ottawa April 23, 2009

2 Statistics Canada Statistique Canada 23/04/2009 Government’s commitment  Why innovation matters  Definitions  Measures  Government’s commitment  The international stage  Data availability  Coming up the pipeline: General Business Panel Survey

3 Statistics Canada Statistique Canada 23/04/2009 Why innovation matters  Essential to help economy recover quickly, create jobs for the future and improve the quality of life for Canadians.  Innovative economies typically exhibit the following characteristics:  higher rates of economic growth  greater job growth  higher productivity  greater investment in people and capital  greater capacity for the economy to attract and retain highly qualified people.

4 Statistics Canada Statistique Canada 23/04/2009 Why innovation matters 1.Insulin, Treatment for Diabetes [1921, Frederick Banting, Charles Best]Insulin, Treatment for Diabetes [1921, Frederick Banting, Charles Best] 2.Telephone [1876, Alexander Graham Bell]Telephone [1876, Alexander Graham Bell] 3.Light Bulb [1874, Henry Woodward, Mathew Evans]Light Bulb [1874, Henry Woodward, Mathew Evans] 4.Five Pin Bowling [1908, Thomas F. Ryan]Five Pin Bowling [1908, Thomas F. Ryan] 5.Wonderbra [1964, Louise Poirier]Wonderbra [1964, Louise Poirier] 6.Pacemaker [1950, John Hopps, Wilfred Bigelow, John Callaghan]Pacemaker [1950, John Hopps, Wilfred Bigelow, John Callaghan] 7.Robertson Screw, 1908 [Peter Robertson]Robertson Screw, 1908 [Peter Robertson] 8.Zipper [1913, Gideon Sundback]Zipper [1913, Gideon Sundback] 9.Electric Wheelchair [1952, George Klein]Electric Wheelchair [1952, George Klein] 10.Poutine [1957, Fernand Lachance]Poutine [1957, Fernand Lachance] 11.Cobalt-60 “Bomb” Cancer Treatment [1951, Harold Johns]Cobalt-60 “Bomb” Cancer Treatment [1951, Harold Johns] 12.Java Programming Language [1994, James Arthur Gosling]Java Programming Language [1994, James Arthur Gosling] 13.Bloody Caesar [1969, Walter Chell]Bloody Caesar [1969, Walter Chell] 14.Canadarm [1975, Spar Aerospace/NRC]Canadarm [1975, Spar Aerospace/NRC] 15.Standard time [1878, Sir Sandford Fleming]Standard time [1878, Sir Sandford Fleming] 16.Electron Microscope [1939, James Hillier, Albert Prebus]Electron Microscope [1939, James Hillier, Albert Prebus] 17.Ski-Doo [1922, Armand Bombardier]Ski-Doo [1922, Armand Bombardier] 18.BlackBerry [1999, Mike Lazaridis]BlackBerry [1999, Mike Lazaridis] 19.Radio Voice Transmission [1900, Reginald Fessenden]Radio Voice Transmission [1900, Reginald Fessenden] 20.Birchbark Canoe [First Peoples]Birchbark Canoe [First Peoples] 21.Basketball [1892, James Naismith]Basketball [1892, James Naismith] 22.Retractable Beer Carton Handle [1957, Steve Pasjack]Retractable Beer Carton Handle [1957, Steve Pasjack] 23.UV Degradable Plastics [1971, James Guillet]UV Degradable Plastics [1971, James Guillet] 24.Instant Replay [1955, CBC’s Hockey Night in Canada]Instant Replay [1955, CBC’s Hockey Night in Canada] 25.Goalie Mask [1959, Jacques Plante]Goalie Mask [1959, Jacques Plante] 26.Marquis Wheat [1908, Sir Charles Saunders]Marquis Wheat [1908, Sir Charles Saunders] 27.Pablum [1930, Alan Brown, Theodore Drake, Frederick Tisdall]Pablum [1930, Alan Brown, Theodore Drake, Frederick Tisdall] 28.Lacrosse [First Peoples]Lacrosse [First Peoples] 29.Electric Oven [1892, Thomas Ahearn]Electric Oven [1892, Thomas Ahearn] 30.Steam Fog Horn [1853, Robert Foulis]Steam Fog Horn [1853, Robert Foulis] 31.Walkie-Talkie [1942, Donald L. Hings]Walkie-Talkie [1942, Donald L. Hings] 32.Alkaline Long-Lasting Battery [1959, Lewis Urry]Alkaline Long-Lasting Battery [1959, Lewis Urry] 33.Paint roller [1940, Norman Breakey]Paint roller [1940, Norman Breakey] 34.Electronic Music Synthesizer [1945, Hugh Le Caine]Electronic Music Synthesizer [1945, Hugh Le Caine] 35.WeeVac 6 [1990, Wendy Murphy]WeeVac 6 [1990, Wendy Murphy] 36.Green Garbage Bag [1950, Harry Wasylyk, Larry Hansen, Frank Plomp]Green Garbage Bag [1950, Harry Wasylyk, Larry Hansen, Frank Plomp] 37.Snowblower [1925, Arthur Sicard]Snowblower [1925, Arthur Sicard] 38.Self-propelled Combine Harvester [1937, Thomas Carroll]Self-propelled Combine Harvester [1937, Thomas Carroll] 39.Instant Mashed Potatoes [1962, Edward Asselbergs]Instant Mashed Potatoes [1962, Edward Asselbergs] 40.Explosives Vapour Detector [1985, Lorne Elias]Explosives Vapour Detector [1985, Lorne Elias] 41.Marine Screw Propeller [1833, John Patch]Marine Screw Propeller [1833, John Patch] 42.Plexiglas [1931, William Chalmers]Plexiglas [1931, William Chalmers] 43.Key Frame Animation [1969, Nestor Burtnyk, Marcelli Wein]Key Frame Animation [1969, Nestor Burtnyk, Marcelli Wein] 44.CPR Mannequin: “ACTAR 911” [1989, Dianne Croteau, Richard Brault]CPR Mannequin: “ACTAR 911” [1989, Dianne Croteau, Richard Brault] 45.G-Suit [1941, Wilbur Rounding Franks]G-Suit [1941, Wilbur Rounding Franks] 46.Ardox Spiral Nail [1954, Allan Dove]Ardox Spiral Nail [1954, Allan Dove] 47.Automatic Lubricating Cup [1872, Elijah McCoy]Automatic Lubricating Cup [1872, Elijah McCoy] 48.Crash-Position Indicator-CPI [1957, Harry Stevinson]Crash-Position Indicator-CPI [1957, Harry Stevinson] 49.Caulking Gun [1894, Theodore Witte]Caulking Gun [1894, Theodore Witte] 50.Separable Baggage Check [1882, John Mitchell Lyons]Separable Baggage Check [1882, John Mitchell Lyons] Examples of Canadian innovations?

5 Statistics Canada Statistique Canada 23/04/2009 Definitions - concepts  Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications (Frascati Manual, p. 30 and Respondent Guide, p. 3)  Related scientific activities (RSA) complement and extend R&D by contributing to the generation, dissemination and application of scientific and technological knowledge (Frascati Manual, p. 31 and Respondent Guide, p.5)

6 Statistics Canada Statistique Canada 23/04/2009 Definitions - concepts Three types of R&D: Basic R&D With no expectations of an end result Applied research With expectations of an end result Experimental development Using existing technology to create new technology with expectations of an end result

7 Statistics Canada Statistique Canada 23/04/2009 Performers and funders of R&D: Business Higher Education Government Non-profit organizations **Collaborative arrangements between sectors  While activities overlap, their roles are distinct: Higher education: inspired by the spirit of enquiry; Government and private non-profit organizations: perform and support research for the public good. Business: integrates research findings into applications to create new products and processes; Definitions - players

8 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Business Main R&D performing sector of the economy Targeted at proprietary product development Partnerships with universities – specialize in knowledge creation, offer economies of scale and multidisciplinary teams Permits licensing of technologies

9 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Canada’s top 25 corporate R&D spenders - FY 07 (extraction) 1. Nortel Networks Corporation 2. BCE Inc. 5. IBM Canada Ltd. 7. Research in Motion Limited 13. Bombardier Inc. 17. Pfizer Canada Inc. 22. Imperial Oil Limited (Source: Re$earch Money, Vol. 22, No. 16)

10 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Higher education Becoming increasingly more important in R&D performance Advance knowledge and generate highly qualified people – open nature of work Free dissemination of new findings  Increases the stock of a country’s knowledge  Helps guide applied research Create intellectual property and commercialize it by licensing it to business or creating spin-off companies

11 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Canada’s top research universities – FY Univeristy of Toronto* 2. University of Alberta* 3. Université de Montréal* 4. University of British Columbia* 5. McGill University* … 16. Dalhousie University* 21. Memorial University* 25. University of New Brunswick *Has a medical school Source: Re$earch Money, Vol. 22, No. 16)

12 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Government One of the smaller performers Performs some research to meet its needs and those of its citizens Mainly supports work in other sectors to correct market failures (fill the gap between private investment in basic research and the level that would maximise benefits to society) Highest investment in higher education sector of Group of Seven

13 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Top government R&D performers and funders (FY 07/08 estimates - (in thousands of dollars) Performers –National Research Council Canada ($544) –Agriculture and Agri-food Canada ($307) –Natural Resources Canada ($229) Funders –Canadian Institutes of Health Research ($784) –Natural Sciences and Engineering Research Council ($725) –Social Sciences and Humanities Research Council ($489) (Source: Federal Scientific Activities 2007/2008, catalogue number xwe, Statistics Canada)

14 Statistics Canada Statistique Canada 23/04/2009 Definitions - players Non-profit organizations  Similar to government Performs little R&D Supports research of higher education through philanthropic activities.

15 Statistics Canada Statistique Canada 23/04/2009 Gross Domestic Expenditure on Research and Development (GERD)  Provides a statistical picture of the Canadian system of research Measures

16 Statistics Canada Statistique Canada 23/04/2009 Measures Table 1: Gross Domestic Expenditures on Research and Development, Canada, 2008 Funding sectorPerforming sector millions of dollars GovernmentBusinessHigher education Sector Private non-profit organizations Total R&D Government2, ,558526,686 Business8413, ,386 Higher education sector004,5320 Private non-profit organizations Foreign sector02, ,616 Total R&D2,78616,3169, ,071

17 Statistics Canada Statistique Canada 23/04/2009 Measures Trends in R&D performance, by sector, Canada,

18 Statistics Canada Statistique Canada 23/04/2009  Difficulty in measuring outcomes Benefits not necessarily immediately apparent No “one” breakthrough – culmination of sources Patents, licensing, commercialization, etc. Measures

19 Statistics Canada Statistique Canada 23/04/2009 Government’s commitment  Electoral debates  Clean energy  Water management  Regenerative medicine  CANARIE, Canadian Light Source, Institute for Quantum Computing  Centres of Excellence for Commercialization  Budget $5.1 billion in new investments for science and technology $2 billion – higher education infrastructure (KIP – knowledge infrastructure program)  Most advanced nations invest in S&T infrastructure during the economic downturn… Brain drain? Soviet Union in the 1990s NRC – CISTI reduced, IRAP increased

20 Statistics Canada Statistique Canada 23/04/2009 The international stage OECD, Main Science and Technology Indicators

21 Statistics Canada Statistique Canada 23/04/2009 The international stage OECD, Main Science and Technology Indicators

22 Statistics Canada Statistique Canada 23/04/2009 The international stage

23 Statistics Canada Statistique Canada 23/04/2009 Data availability Selected data sources for international comparisons of science and technology activities Canada Statistics Canada, Science Statistics, Catalogue no This series, which consists of eight issues a year, presents a variety of science and technology statistics. Each issue concerns a different topic. Statistics Canada, Gross Domestic Expenditures on Research and Development in Canada (GERD), and the Provinces, Catalogue no XWE Annual data on GERD by science type and by funding and performing sector are also available in CANSIM table OECD Organisation for Economic Co-operation and Development, Main Science and Technology Indicators, Paris. Organisation for Economic Co-operation and Development, OECD Science, Technology and Industry Scoreboard, Paris.

24 Statistics Canada Statistique Canada 23/04/2009 The GSS of business! General Business Panel Survey

25 Statistics Canada Statistique Canada 23/04/2009 Background  STC’s present business statistics system: designed to produce SNA indicators (GDP, trade figures, CPI)  STC’s Census and social surveys provide: population distribution (needed for federal-provincial transfer payments, electoral reform, employment levels)  A new statistical opportunity exists : to better understand firm behaviour & firm strategy. to inform a wide range of policy questions to monitor impacts of policy interventions (& over time) to meet increasing need for qualitative information obligation to efficiently complement existing quantitative data  Offers STC a new component of the business statistical system enhance existing statistical system better understand specific behaviours of Canadian businesses

26 Statistics Canada Statistique Canada 23/04/2009 Dual Project Response To New Opportunity  General Business Panel Survey (GBPS) Survey Content Phase (Core & Modular Design) Engagement of Academic & Business Communities International indicators coherence Research Laboratory Data Access Model Horizontality assured by ‘Core’/’Module’ conceptual design  Integrated Business Database (IBD) clean linked longitudinal micro data (survey and administrative) Small and Medium Sized Enterprise (SME) Statistics Program Economic Globalization Indicators Project (EGI) (GVC) General Business Panel Survey (GBPS) – linkage component achieve efficiencies and avoid possible inconsistent results

27 Statistics Canada Statistique Canada 23/04/2009 Core + Module opens up to horizontality Firm characteristics and outcomes Operational tactical activities Value tactical activities Innovation tactical activities Operational strategies Value strategies Innovation strategies GVC Module + X + GVC Survey of Changing Business Practices in the Global Economy GPBS Themes (CORE) (MODULE) Module Y +

28 Statistics Canada Statistique Canada 23/04/2009 For more information on science and technology statistics: Monia Bergeron Subject Matter Officer Science, Innovation and Electronic Information Division For more information on the GBPS: Paula Thomson (Project Manager, GBPS) Director - Science, Innovation and Electronic Information Division