The Importance of SMEs to the Canadian Economy Presenter: Peter Cashmore A/Executive Director,...
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Transcript of The Importance of SMEs to the Canadian Economy Presenter: Peter Cashmore A/Executive Director,...
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
Identification of business opportunity
Technical feasibility
IRAP funding
Proof of concept
Development
Network Member Support
Cluster Activities
IRAP Advice
ITA Advantage
• 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 small-
sized 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.
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.
Share of population aged 25-34 with at least tertiary education, 2002
0
10
20
30
40
50
60
Source: Education at a Glance, 2004
Venture capital investment flows as a percentage of GDP
Average over 1995-20021
0.0
0.1
0.2
0.3
0.4
0.5
0.6
JPN
SVKAUT
NZLGRC
HUNAUS
PRTIT
ACHE
DNKCZE
POLESP
DEUFRA
IRL
KORNOR
FINBEL
SWE
GBRNLD
CAN ISL
USA
Early stage Expansion Buy-outs and othersPer cent
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
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SVK
NOR
BEL
CAN
ISL
CHE
PRT
KOR
POL
JPN
GRC
IRL
SWE
FRA
ESP
HUN
NLD
DEU
DNK
ITA
USA
GBR
CZE
AUT
FIN
NZL
AUS
Banks and insurance companies Pension funds Corporate investors Other
Countries ranked according to sum of bank, insurance and pension funds
Source: OECD Venture Capital Database, 2003.