Fessenden elaborates on the need to distinguish science and innovation policies

"The firm – especially Canadian-owned firms – are key agents of innovation, Therefore, innovation policy needs to begin with a firm-centric concept. IR&D needs to be thought of as a response to innovation policy, not as a response to science policy. The key to increasing IR&D and hence productivity and competitiveness is through innovation policy and innovation policy is much more than science policy."

"Science policy can be delivered by relatively few departments and ministers of government. Innovation policy on the other hand requires an integrated whole government approach that needs to be owned by the prime minister, the premiers and their cabinets."

"Research excellence is essential to underpin the production of highly qualified people right at the leading edge so as to enhance innovative capacity of business. Research ensures that Canada has insider access to the latest global knowledge pools since the inclusion in the best international networks depends on the quality of its contribution. Research makes Canada a stronger magnet for business investment and knowledge-intensive activity and provides ready access to world class talent and facilities."

"Firms do not exist in isolation. They exist within an environment that includes their markets — both existing and potential on the demand side. On the supply side, there exists a whole ecosystem of providers, providers of knowledge workers, technical services and knowledge, business knowledge and services and financial knowledge and services. For a firm, innovation does not start on the supply side, it starts on the demand side."

"The new paradigm is that science policy and innovation policy are two quite different policy areas both in scope and drivers. Kevin Lynch, retired Clerk of the Privy Council, captured this in an article he wrote last year where he said, "Research is a process that translates money into knowledge. Innovation is a process that translates knowledge into money. "That's a pretty good differentiation."

* The above extracts were taken from Bob Fessenden's Nov21st presentation to the Canadian Science Policy Conference in Toronto.