1Statistics Canada Statistique Canada23/04/2009 If it ain’t broke… DON’T FIX IT! Monia Bergeron, SIEID Statistics Canada, Ottawa April 23, 2009

1 Statistics Canada • Statistique Canada 23/04/2009

If it ain’t broke… If it ain’t broke…

DON’T FIX IT!DON’T FIX IT!

Monia Bergeron, SIEID

Statistics Canada, Ottawa

April 23, 2009


Government’s commitmentGovernment’s commitment

Why innovation matters Definitions Measures Government’s commitment The international stage Data availability Coming up the pipeline: General Business

Panel Survey


Why innovation mattersWhy innovation matters

Essential to help economy recover quickly, create jobs for the future and improve the quality of life for Canadians.

Innovative economies typically exhibit the following characteristics:

higher rates of economic growth greater job growth higher productivity greater investment in people and capital greater capacity for the economy to attract and retain highly

qualified people.


Why innovation mattersWhy innovation matters

1. Insulin, Treatment for Diabetes [1921, Frederick Banting, Charles Best]

2. Telephone [1876, Alexander Graham Bell] 3. Light Bulb [1874, Henry Woodward, Mathew Evans] 4. Five Pin Bowling [1908, Thomas F. Ryan] 5. Wonderbra [1964, Louise Poirier] 6. Pacemaker [1950, John Hopps, Wilfred Bigelow, John Calla

ghan]

7. Robertson Screw, 1908 [Peter Robertson] 8. Zipper [1913, Gideon Sundback] 9. Electric Wheelchair [1952, George Klein] 10. Poutine [1957, Fernand Lachance] 11. Cobalt-60 “Bomb” Cancer Treatment [1951, Harold Johns] 12. Java Programming Language [1994, James Arthur Gosling] 13. Bloody Caesar [1969, Walter Chell] 14. Canadarm [1975, Spar Aerospace/NRC] 15. Standard time [1878, Sir Sandford Fleming] 16. Electron Microscope [1939, James Hillier, Albert Prebus] 17. Ski-Doo [1922, Armand Bombardier] 18. BlackBerry [1999, Mike Lazaridis] 19. Radio Voice Transmission [1900, Reginald Fessenden] 20. Birchbark Canoe [First Peoples] 21. Basketball [1892, James Naismith] 22. Retractable Beer Carton Handle [1957, Steve Pasjack]23. UV Degradable Plastics [1971, James Guillet] 24. Instant Replay [1955, CBC’s Hockey Night in Canada]

25. Goalie Mask [1959, Jacques Plante] 26. Marquis Wheat [1908, Sir Charles Saunders] 27. Pablum [1930, Alan Brown, Theodore Drake, Frederick Tisdall] 28. Lacrosse [First Peoples] 29. Electric Oven [1892, Thomas Ahearn] 30. Steam Fog Horn [1853, Robert Foulis] 31. Walkie-Talkie [1942, Donald L. Hings] 32. Alkaline Long-Lasting Battery [1959, Lewis Urry] 33. Paint roller [1940, Norman Breakey] 34. Electronic Music Synthesizer [1945, Hugh Le Caine] 35. WeeVac 6 [1990, Wendy Murphy] 36. Green Garbage Bag [1950, Harry Wasylyk, Larry Hansen, Fran

k Plomp]

37. Snowblower [1925, Arthur Sicard] 38. Self-propelled Combine Harvester [1937, Thomas Carroll] 39. Instant Mashed Potatoes [1962, Edward Asselbergs] 40. Explosives Vapour Detector [1985, Lorne Elias] 41. Marine Screw Propeller [1833, John Patch] 42. Plexiglas [1931, William Chalmers] 43. Key Frame Animation [1969, Nestor Burtnyk, Marcelli Wein] 44. CPR Mannequin: “ACTAR 911” [1989, Dianne Croteau,

Richard Brault] 45. G-Suit [1941, Wilbur Rounding Franks] 46. Ardox Spiral Nail [1954, Allan Dove] 47. Automatic Lubricating Cup [1872, Elijah McCoy] 48. Crash-Position Indicator-CPI [1957, Harry Stevinson] 49. Caulking Gun [1894, Theodore Witte] 50. Separable Baggage Check [1882, John Mitchell Lyons]

Examples of Canadian innovations? http://www.cbc.ca/inventions/

http://www.cbc.ca/inventions/inventions.html?inventionID=25


































































Definitions - conceptsDefinitions - concepts

Research and experimental development (R&D) • comprise creative work undertaken on a systematic basis in

order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications (Frascati Manual, p. 30 and Respondent Guide, p. 3)

Related scientific activities (RSA)• complement and extend R&D by contributing to the generation,

dissemination and application of scientific and technological knowledge (Frascati Manual, p. 31 and Respondent Guide, p.5)


Definitions - conceptsDefinitions - concepts

Three types of R&D:

Basic R&DWith no

expectations of an end result

Applied researchWith expectations of an end result

Experimental developmentUsing existing technology to create new technology with expectations of an end result


Performers and funders of R&D:

• Business• Higher Education • Government• Non-profit organizations

**Collaborative arrangements between sectors

While activities overlap, their roles are distinct:

• Higher education: inspired by the spirit of enquiry;

• Government and private non-profit organizations: perform and support research for the public good.

• Business: integrates research findings into applications to create new products and processes;

Definitions - playersDefinitions - players



Business

• Main R&D performing sector of the economy• Targeted at proprietary product development• Partnerships with universities – specialize in

knowledge creation, offer economies of scale and multidisciplinary teams

• Permits licensing of technologies



Canada’s top 25 corporate R&D spenders - FY 07(extraction)

1. Nortel Networks Corporation2. BCE Inc.5. IBM Canada Ltd.7. Research in Motion Limited13. Bombardier Inc.17. Pfizer Canada Inc.22. Imperial Oil Limited

(Source: Re$earch Money, Vol. 22, No. 16)



Higher education

• Becoming increasingly more important in R&D performance• Advance knowledge and generate highly qualified people – open

nature of work• Free dissemination of new findings

Increases the stock of a country’s knowledge Helps guide applied research

• Create intellectual property and commercialize it by licensing it to business or creating spin-off companies



Canada’s top research universities – FY 08

1. Univeristy of Toronto*

2. University of Alberta*

3. Université de Montréal*

4. University of British Columbia*

5. McGill University*

…

16. Dalhousie University*

21. Memorial University*

25. University of New Brunswick

*Has a medical school Source: Re$earch Money, Vol. 22, No. 16)



Government

• One of the smaller performers• Performs some research to meet its needs and those

of its citizens• Mainly supports work in other sectors to correct

market failures (fill the gap between private investment in basic research and the level that would maximise benefits to society)

• Highest investment in higher education sector of Group of Seven



Top government R&D performers and funders (FY 07/08 estimates - (in thousands of dollars)

• Performers – National Research Council Canada ($544)– Agriculture and Agri-food Canada ($307)– Natural Resources Canada ($229)

• Funders– Canadian Institutes of Health Research ($784)– Natural Sciences and Engineering Research Council ($725)– Social Sciences and Humanities Research Council ($489)

(Source: Federal Scientific Activities 2007/2008, catalogue number 88-204-xwe, Statistics Canada)



Non-profit organizations

Similar to government• Performs little R&D• Supports research of higher education through

philanthropic activities.


Gross Domestic Expenditure on Research and Development (GERD)

Provides a statistical picture of the Canadian system of research

MeasuresMeasures


MeasuresMeasures

Table 1: Gross Domestic Expenditures on Research and Development, Canada, 2008

Funding sector Performing sectormillions of dollars

Government Business Higher educationSector

Private non-profit organizations

Total R&D

Government 2,702 376 3,558 52 6,686

Business 84 13,461 826 15 14,386

Higher education sector 0 0 4,532 0 4,532

Private non-profit organizations

0 0 793 58 850

Foreign sector 0 2,479 128 7 2,616

Total R&D 2,786 16,316 9,837 132 29,071


MeasuresMeasures

0.0

50.0

100.0

150.0

200.0

250.0

300.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Ind

ex

19

96

=1

00

Government

Business

Higher education

Non-profit org.

Total

Trends in R&D performance, by sector, Canada, 1996-2008


Difficulty in measuring outcomes

• Benefits not necessarily immediately apparent• No “one” breakthrough – culmination of sources• Patents, licensing, commercialization, etc.

MeasuresMeasures


Government’s commitmentGovernment’s commitment

Electoral debates Clean energy Water management Regenerative medicine

CANARIE, Canadian Light Source, Institute for Quantum Computing Centres of Excellence for Commercialization

Budget• $5.1 billion in new investments for science and technology

• $2 billion – higher education infrastructure (KIP – knowledge infrastructure program)

Most advanced nations invest in S&T infrastructure during the economic downturn… Brain drain? Soviet Union in the 1990s

• NRC – CISTI reduced, IRAP increased


The international stageThe international stage

OECD, Main Science and Technology Indicators






Civil Government Budget Appropriations or Outlays for R&D by Socio-economic objective

2006

0% 20% 40% 60% 80% 100%

Economic development

Health and environment

Education and society

Space programs

Non-oriented research

General university funds


Canada

United Kingdom

United States

EU-27

OECD


Data availabilityData availability

Selected data sources for international comparisons of science and technology activities

Canada

Statistics Canada, Science Statistics, Catalogue no. 88-001

This series, which consists of eight issues a year, presents a variety of science and technology statistics. Each issue concerns a different topic.

Statistics Canada, Gross Domestic Expenditures on Research and Development in Canada (GERD), and the Provinces , Catalogue no. 88-221-XWE

Annual data on GERD by science type and by funding and performing sector are also available in CANSIM table 358-0001

OECD

Organisation for Economic Co-operation and Development, Main Science and Technology Indicators, Paris.

Organisation for Economic Co-operation and Development, OECD Science, Technology and Industry Scoreboard, Paris.


The GSS of business!

General Business General Business

Panel SurveyPanel Survey


BackgroundBackground

STC’s present business statistics system:• designed to produce SNA indicators (GDP, trade figures, CPI)

STC’s Census and social surveys provide:• population distribution (needed for federal-provincial transfer

payments, electoral reform, employment levels) A new statistical opportunity exists :

• to better understand firm behaviour & firm strategy.• to inform a wide range of policy questions• to monitor impacts of policy interventions (& over time)• to meet increasing need for qualitative information• obligation to efficiently complement existing quantitative data

Offers STC a new component of the business statistical system• enhance existing statistical system

• better understand specific behaviours of Canadian businesses


Dual Project ResponseDual Project ResponseTo New OpportunityTo New Opportunity

General Business Panel Survey (GBPS)• Survey Content Phase (Core & Modular Design)• Engagement of Academic & Business Communities• International indicators coherence• Research Laboratory Data Access Model• Horizontality assured by ‘Core’/’Module’ conceptual design

Integrated Business Database (IBD)• clean linked longitudinal micro data (survey and administrative) • Small and Medium Sized Enterprise (SME) Statistics Program• Economic Globalization Indicators Project (EGI) (GVC)• General Business Panel Survey (GBPS) – linkage component• achieve efficiencies and avoid possible inconsistent results


Core + Module opens up to horizontalityCore + Module opens up to horizontality

Firm characteristics

and outcomes

Operationaltactical

activities

Valuetactical

activitiesInnovationtactical

activities

Operationalstrategies

Valuestrategies

Innovation strategies

GVCModule+

Module

X

+

GVC Survey of Changing BusinessPractices in the Global Economy

GPBS Themes (CORE)

(MODULE) ModuleY

+


For more information on science and technology statistics:

Monia BergeronSubject Matter OfficerScience, Innovation and Electronic Information Division

[email protected]

For more information on the GBPS:

Paula Thomson(Project Manager, GBPS)Director - Science, Innovation and Electronic Information Division

[email protected]

Documents

1Statistics Canada Statistique Canada23/04/2009 If it ain’t broke… DON’T FIX IT! Monia Bergeron, SIEID Statistics Canada, Ottawa April 23, 2009