Innovation Canada: A Call to Action

Executive SummaryRecommendation 5Help high-growth innovative firms accessthe risk capital they need through theestablishment of new funds wheregaps exist.5.1 Start-up stage — Direct the BusinessDevelopment Bank of Canada (BDC) toallocate a larger proportion of its portfolioto start-up stage financing, preferably inthe form of a “sidecar” fund with angelinvestor groups.5.2 Late stage — Provide the BDC with newcapital to support the development oflarger-scale, later-stage venture capitalfunds and growth equity funds in supportof the private venture capital and equityindustry. These funds would specialize indeal sizes of $10 million and above that aremanaged by the private sector and subjectto appropriate governance practices.Whole-of-Government LeadershipInnovation is the principal source of productivitygrowth in the long run, and thus lies at theheart of Canada’s future prosperity. Butinnovation far transcends just the applicationof science and technology and R&D. Aresponsibility to foster innovation cuts acrossmany functions of government and thereforerequires a system-wide perspective and wholeof-governmentpriority. This will requirerestructuring the governance of thegovernment’s business innovation agenda, whiledeveloping a shared and cooperative approachwith provincial and business leaders.Recommendation 6Establish a clear federal voice for innovation,and engage in a dialogue with the provincesto improve coordination and impact.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.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 on keygoals, 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).6.3 National dialogue on innovation —Through the minister responsible forinnovation, engage provincial and businessleaders in an ongoing national dialogueto promote better business innovationoutcomes through more effectivecollaboration and coordination in respectof program delivery, talent deployment,sectoral initiatives, public sectorprocurement, appropriate tax credit levelsand the availability of risk capital.E-13