By Keith Belinko

 Dr. Keith Belinko, PhD, has over 40 years of experience working on intellectual property management and technology commercialization both in the public and private sectors.

Canada is recognized worldwide for its strong scientific research and technological innovation.

However, while Canadian businesses and public sector institutions come up with scientific breakthroughs that lead to world-class inventions, many of them fail to be commercialized domestically, often benefiting foreign companies instead.

This trend has long-term consequences for Canada’s economic growth, job creation and global competitiveness. The question every Canadian taxpayer and government official should be asking is: “Why are we supporting the development of technologies that ultimately benefit foreign competitors?”

This trend has persisted for decades, with one of the earliest examples being the discovery of the light bulb. Few people know that Torontonians Henry Woodward and Mathew Evans patented an early incandescent light bulb design in both Canada and the U.S. in 1874.

However, lacking the financial resources to commercialize their invention, they ultimately sold their patents to Thomas Edison. Edison went on to refine and successfully commercialize the light bulb, while Woodward and Evans faded into obscurity.

Many other technologies can be cited where Canada led in their development but missed out on lucrative commercial opportunities. Some notable examples include the electron microscope, insulin, the telephone and the cardiac pacemaker.

Similarly, while Research In Motion pioneered the smartphone revolution with its BlackBerry – a major Canadian success story in its time – many of its innovations were later adopted and integrated into foreign smartphone technology, benefiting competitors abroad.

There is no doubt that one key reason for Canada’s commercialization gap is insufficient investment in scaling up new technologies. Many Canadian startups and innovators lack access to the funding needed to bring their products and services to market.

Another challenge is the difficulty in retaining intellectual property (IP) rights within Canada. Many Canadian inventors and startups sell their patents to international firms due to a lack of an adequate domestic commercialization infrastructure. This means that while Canada may excel in innovation, the economic benefits – such as high-paying jobs and corporate profits – are often realized elsewhere.

Many organizations, including small and medium-sized enterprises, place excessive emphasis on patenting their inventions, assuming that "if you build it, they will come." However, the vast majority of patents never translate into successful commercialization.

Market intelligence empowers companies and organizations

The focus should be on identifying inventions with strong commercial potential by gathering market intelligence. Determining which inventions have strong market potential helps prioritize investments in R&D.

Understanding an invention’s commercial viability allows companies or institutions to make informed decisions on securing patents, developing go-to-market strategies, and preventing foreign exploitation.

Most importantly, investors and funding agencies seek technologies with strong market demand. Demonstrating market potential can help secure financing and strategic partnerships.

Finally, market intelligence plays a crucial role in shaping an effective IP strategy, offering a clear roadmap for both protection and commercialization.

Market intelligence involves the systematic collection, analysis, and interpretation of data about the market for a particular technology. Conducting a thorough market assessment involves numerous factors that often exceed the reach and capabilities of many startups and public sector organizations, such as universities and government laboratories. 

Market intelligence goes far beyond analyzing the competitive landscape. At a minimum, it requires gaining deeper insights into direct and indirect competitors to sharpen the unique value proposition and enhance product-market fit; understanding adoption barriers; identifying early adopters and emerging use cases; recognizing industry-specific purchasing norms and switching costs; anticipating regulatory challenges; and quantifying market size and revenue potential.

These factors collectively inform the optimal approach to protecting the technology and crafting a successful commercialization strategy. Market intelligence empowers organizations to make informed decisions that align with their strategic goals.

Funding organizations like the National Research Council-Industrial Research Assistance Program (IRAP) have begun to recognize the critical role of market intelligence in commercialization through their IP Assist program, ensuring that their clients have access to the necessary resources for conducting such studies.

As a technology consultant, I have worked closely with multiple IRAP clients and government labs, gaining firsthand insight into the critical role of market intelligence in shaping informed commercialization strategies. Other funding organizations should follow IRAP’s lead in integrating market intelligence support into their programs.

Government policies play a crucial role in fostering innovation and commercialization. While Canada offers generous research and development grants, there is less emphasis on ensuring that these innovations are commercialized domestically.

In contrast, other countries actively support companies in transforming research into globally competitive products through strong industrial policies and industry partnerships. To maximize the economic benefits of homegrown innovations, Canada must take similar steps.

Building on IRAP’s example, both federal and provincial governments should compel grant recipients to conduct market research by allocating a portion of funding to market intelligence.

Additionally, they should provide access to service providers who specialize in this field.  

In conclusion, market intelligence should be regarded as the backbone of innovation, enabling organizations to turn data into actionable strategies. By understanding market conditions, customer needs, competitive dynamics and the regulatory landscape, organizations can create transformative solutions.

As markets evolve, the ability to harness intelligence effectively will determine which organizations lead and which fall behind. By gathering market intelligence, organizations can unlock new opportunities, sustain long-term success and shape the future of their industries.  

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