Innovation Canada: A Call to Action

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Innovation Canada: A Call to ActionRecommendation 6Establish a clear federal voice forinnovation, and engage in adialogue with the provinces toimprove coordination and impact.The Vision of the PanelThe Government of Canada must assume aleadership role by establishing businessinnovation as a whole-of-government priorityand consequently restructuring the governanceof its business innovation agenda, whiledeveloping a shared and cooperative approachwith provincial and business leaders.Getting ThereTo realize this vision, the Panel recommendsthe following.National LeadershipA comprehensive innovation policy mustencompass a suite of policies that addressresearch and invention, technology, servicesector strategy, financial capital and talent,among other domains. A narrow science andtechnology policy will not adequately promoteinnovation by Canadian businesses. Canadaneeds a whole-of-government innovation policythat encompasses research, development,commercialization and business supportstrategies. This principle implies thefollowing need.6.1 Assign responsibility — Identify a leadminister responsible for innovation in theGovernment of Canada together with astated mandate to put business innovationat the centre of the government’s strategyfor improving Canada’s economicperformance.The Prime Minister might assign responsibilityand accountability to a single minister to leadthe challenge function in government forbusiness innovation and to work with provincialand territorial governments to undertake anational innovation dialogue focussed onobjectives and guiding principles. The same leadminister should be charged with developingoutcome-oriented performance objectives toenable comparisons of program effectivenessacross all federal departments. This might befacilitated via a Cabinet committee oninnovation, chaired by the lead minister.In addition, the designated minister couldprovide leadership in helping clarify mandatesfor existing and new entities, including the threegranting councils — Natural Sciences andEngineering Research Council (NSERC), SocialSciences and Humanities Research Council(SSHRC) and Canadian Institutes of HealthResearch (CIHR) — and the many related thirdpartyorganizations currently being funded bythe government to support business innovation.The granting councils have played a pivotal rolein developing both talent and ideas for Canada’sinnovation agenda. Their core raison d’être hasbeen and remains investigator-initiated researchof both a basic and applied nature, and eachneeds to continue to be generously supported.However, there has been mission drift for thegranting councils, as they have responded topressure from government to be more businessfacing. While some business-facing programsmight appropriately be under the aegis of thegranting councils going forward, there is a needto clarify their mandates, taking into accountthe other changes being recommended by thePanel, such as the creation of the IRIC and theevolution of the NRC. In this regard, thedesignated minister will need to play aleadership role in establishing the IRIC andseeing the NRC through to its recommendedend state. Recall that the IRIC, under thepurview of the minister responsible for8-4
Leadership for Innovationinnovation, would have financial authority overthe federal contributions to the evolved NRCinstitutes through management of relatedfunding agreements (Recommendation 4.3 inChapter 7).OversightThe innovation support system implemented bythe Government of Canada should have clearobjectives, with measurable outcomes andresults. Regular whole-of-governmentevaluation is needed to ensure an outcomedrivenapproach. This evaluation should ensurethat the federal program funding is always ableto shift resources from programs that are nolonger effective to those that serve newpriorities and needs in the innovation system.There should be regular public reports on theoutcomes of individual programs and on thesystem-wide performance of the innovationpolicies.To give effect to these principles, the Panelrecommends the following.6.2 Whole-of-government advice —Transform the Science, Technology andInnovation Council (STIC) to become thegovernment’s external Innovation AdvisoryCommittee (IAC), with a mandate toprovide whole-of-government advice onkey goals, measurement and evaluation ofpolicy and program effectiveness, therequirement for new initiatives respondingto evolving needs and priorities goingforward, and all other matters requiring afocussed external perspective on thegovernment’s innovation agenda. The IACshould act though through two standingsubcommittees: a Business InnovationCommittee (BIC) and a Science andResearch Committee (SRC).At present, the STIC, reporting to the Ministerof Industry, provides policy advice to thegovernment on issues related to science,technology and innovation. The Panel proposesto transform and broaden that mandate toencompass whole-of-government advice oninnovation goals related to business, scienceand social innovation, as well as all aspects ofbusiness innovation policy and programming —for example, benchmarking, measurement andcomparative evaluation of existing policies andprograms across federal departments, as well asadvice on the need for new programs and newareas of focus for Canadian innovation. Unlikethe STIC, whose policy advice is confidential, thenew IAC’s advice should be made public.In taking on this broadened mandate, the IACwould be assisted by two standingsubcommittees — the SRC, focussed on“supply-push,” and the BIC, focussed on“demand-pull.” The BIC membership wouldinclude a cross-section of business leaders, thegranting councils and representatives of theinstitutes formerly of the NRC, and would drawon the advice of Canadian and internationalexperts on innovation policies. The BIC couldplay an important role in advising the proposedIRIC on appropriate metrics, indicators andmethodologies to guide the IRIC’s role as abusiness-facing, demand-driven nationalprogram delivery agency (recallRecommendation 1.1 in Chapter 5). To ensureefficient use of resources, the IAC’ssubcommittees could co-include existingmembers of the governing councils of SSHRC,NSERC and CIHR, as well as IRIC, once it isestablished. Over time, all relevant advisoryfunctions across the government should also beconsolidated into the IAC and its twosubcommittees to the greatest extent possible.8-5
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Vision and PrinciplesChapterVision
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Vision and Principlesout in Chapter
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Program EffectivenessChapterProgram
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Program Effectivenessand processes.
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Innovation Canada: A Call to Action

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