1

2 HQP and tacit knowledge codified new knowledge arising from research 96%4% CANADA WORLD investment by MNE’s bringing tacit knowledge commodities (price-taking) innovations (price-setting) traded goods and services INNOVATION IN CANADA - the big picture

3 WORLD CANADA market industry codified new knowledge from the other 96%4% university research government research mipi investments by MNEs and tacit knowledge commodities innovations immigration emigration HQP INNOVATION IN CANADA - The actors in the economy market intelligence & product information

4 university research government research industry discoveries and inventions + IP problem solutions (contract or grant) “in kind” research support discoveries and inventions + IP problem solutions (contract) R&D assistance INNOVATION IN CANADA - knowledge and investment flows in the UIG triangle standards and certification

5 firms with no R&D firms that do or buy R&D start-ups investment by MNEs and tacit knowledge commodities innovations immigrating, emigrating from universities results from Canadian and world research HQ P discoveries, inventions, and IP innovations Investment by MNEs and tacit knowledge market intelligence and product information gov’t R&D assistance INNOVATION IN CANADA - a closer look at interactions among industry, government labs, and universities market intelligence and product information market intelligence and product information results from Canadian and world research HQP IP $ gov’t R&D assistance university research in NSE from universities

6 world research codified new knowledge students HQP start-ups new codified knowledge - the Canadian 4% basic research project research HQP all sectors HQP with skills of particular interest to research partner firm licences firms that do or buy R&D university research in science and engineering operating costs direct from NSERC indirect from university research infrastructure provinces CFI private funds discoveries or inventions with innovation potential share of project costs: $ and in kind solutions problems first stages of commercialization INNOVATION IN CANADA - an even closer look at the impacts of university research in science and engineering

7 market new value-added economic activity successful innovation failure in the market failure to reach the market IP recognition demonstration of innovation potential new codified knowledge discoveries and inventions public funds taxes research support private funds benefits to society INNOVATION IN CANADA - the connection between university basic research and the market basic research commercialization process return on investment

8 market successful innovation failure in the market failure to reach the market IP new codified knowledge results, discoveries and inventions partial research support private funds INNOVATION IN CANADA - the connection between university project research and the market project research commercialization process potential IP internal commercialization process solutions problems $“in kind” start up purchase of marketable product or the whole start-up company public funds taxes new value-added economic activity successful innovation return on investmenttaxes benefits to society return on investment partner company