House committee hearings on Canada's intellectual property regime yield extensive insight into national innovation system

The main issue was intellectual property but witnesses appearing before the House of Commons Standing Committee on Industry, Science and Technology (INDU) had a lot more to say on the state of Canada's innovation system and the effectiveness of current programs and policies. In recent weeks, a who's who of Canada's top S&T experts and practitioners have appeared before the INDU as it addresses the adequacy of Canada's existing IP regime.

They also revealed many noteworthy perspectives and aspects of research and innovation activity. RE$EARCH MONEY has compiled some of the most revealing insights from testimony provided by the committee's witnesses:

The Xerox Research Centre of Canada (XRCC) is arguably one of the most productive IP machines on the planet. It generates an average of three patentable ideas weekly and many are technological breakthroughs in areas of fundamental research. Emechete Onuoha, Xerox Canada's VP Citizenship and Government Affairs, said that while Canada remains a good place to conduct corporate R&D, there are challenges in the attitudes of Canadian universities with regard to IP as well as recent reductions in the level of tax incentives provided by the Scientific Research and Experimental Development (SR&ED) program.

"Universities may … need to adjust expectations to reflect the real value of the(ir) role in the value chain; otherwise, businesses that can undertake their own R&D will continue to limit their post-secondary research collaborations to basic research unless win-win intellectual property policies are in place," said Onuoha. "The recently announced reduction of the SR&ED tax credit significantly weakens the business case for foreign direct R&D investment in Canada."

Xerox joins new NRC flagship program

Onuoha also revealed that it is a partner in the National Research Council's (NRC) new flagship program for printable electronics, the basis of which was co-developed by XRCC and Xerox's Palo Alto Research Centre. Printable electronics is one of four flagships programs that have been developed as part of the NRC's transformation. Details have yet to be announced.

Genome Canada president and CEO, Dr Pierre Meulien, noted that his not-for-profit corporation has helped generate scores of patents and more than 20 start-ups and that Canada "must work harder to encourage more homegrown intellectual property development and exploitation". He added that innovation has become a complex, increasingly collaborative venture in which open innovation and pre-competitive research figure prominently.

"The result is a new approach to intellectual property rights that allows drug makers and university scientists to share risks and reduce costs at a stage of research deemed precompetitive by the stakeholders," said Meulien.

Genome Canada seeking multi-year funding

As part of its efforts to increase Genome Canada's impact on translating research results into economic and social benefits, Meulien revealed that the organization is once again requesting that the government provide stable, long-term funding as opposed to annual increments.

"We have been in ongoing discussions with the Government of Canada seeking financial support for multi-year programming," he said "Specifically, we are seeking up front a federal commitment of $440 million to support four years of genomics-based research and development ...This would lead to a net investment for Canada of $1.2 billion in genomics research and development over the next four years."

co-op tax credit

Canadian corporate R&D leader Research In Motion Ltd (RIM) also appeared before the INDU, arguing that a strong Canadian IP regime was only part of the puzzle of building strong, globally competitive homegrown companies.

Morgan Elliott, RIM's director of government relations, said RIM filed more than 1,000 mobile patents with the US patent office in 2012 alone. He added that other factors are at play, namely easier access to technology created in government labs and universities and the training of skilled personnel through co-op programs like the one pioneered by the Univ of Waterloo, RIM's home base.

"We believe that a federal tax credit that is offered to companies who employ co-op students could further accelerate commercialization models and an understanding of how business innovates," said Morgan.

In a different take on the IP discussion, Polytechnics Canada CEO Nobina Robinson framed the discussion by focusing on the differing roles of universities and colleges. Unlike universities, she said colleges and polytechnics have no interest in owning IP.

"We should acknowledge that universities are motivated by publishing and patenting, but that colleges are motivated by teaching and allowing students to make and break prototypes, and that Canadian companies are motivated by commercializing innovations and making money," said Robinson.

voucher program

Polytechnics policy director Ken Doyle said the ability of colleges to contribute to innovation would be enhanced by two measures: an increase in the annual budget of the College and Community Innovation program by $15 million to $50 million, and "a national SME voucher program for late-stage commercialization support at approved R&D service providers, such as universities, colleges, and public and private R&D labs".

NRC president John McDougall also appeared before the committee and said IP ownership at the agency is determined on a "program-by-program basis" and by who is paying for the R&D.

McDougall also outlined some of the changes now underway at the NRC and on the best way to create and protect Canadian-owned IP.

"One of the ways you do it is that you actually work on issues and problems that matter to Canada, and you do that very explicitly," said McDougall. "You do it by designing your approach with complete understanding of the value chain that you're trying to plug into, so that you understand actually the way in which deployment will be successful right from the beginning. If you wait until the end, it's too late, and you end up trying to stuff it down people's throats as opposed to having them very receptive and willing to take it up."

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