Getting inventions to market: 'we have a big problem'; Canada needs strategy to put 'D' back in R & D: NORCAT boss.

Canada needs a national strategy to address the specifics of bringing products, ideas and technology to market.

This country is risk adverse. It lacks organized support for proof of concept and, many times, ignores small- and medium-sized enterprises (SMEs), says Darryl Lake, executive director of the Northern Centre for Advanced Technology (NORCAT).

Choose one. All are culprits thwarting the commercialization of intellectual property and inventions, he says.

Lake brings northern issues to the Conference Board of Canada's round table for commercialization.

"We have a big problem."

Canada spends millions on world-class research, but when it comes to competitiveness, it lacks taking that research through to commercialization. For every success story like Michael Lazaridis' Research in Motion, home of the Blackberry, there are five others that do not make it to their 10th birthday, according to Statistics Canada. Young firms are most at risk for failure, as data indicates over half of all new firms fail in the first two years of life. As a result, many of the discoveries are sold to United States or Europe, says Brian Guthrie, director, innovation knowledge management at the Conference Board of Canada.

The lack of coordination sets SMEs and research institutions up for failure. Experienced commercialization advisers say part of Canada's problem is that it "does not like taking risks.

"Commercialization is a risky business, so how are you going to address the commercialization problem?"

Well, Lake has a few ideas.

The idea of investing only in research is wrong, he says. One has to consider it an institutional activity, perhaps even a university activity. Even more, commercialization has to be all encompassing, which means including the private sector as the main driver. That is what the United States and Finland do, he says, and they are well ahead of Canada.

Canada lagging behind world scene

For example, General Motors Canada began a plan to inform suppliers of their needs. Administration said they would prefer to buy from folks down the street rather than companies in Korea, for example, but in the end they will by the best "widget" at the cheapest price. So the auto company is working with suppliers and research institutions to improve the production system.

"There is much more leverage there," Guthrie says, echoing Lake's sentiments. "It's the purchasing power. SMEs need that critical mass of revenue to get going."

The same ideology must be applied to resource industries. Mining companies can tell suppliers and research facilities what they need to become more profitable, competitive and secure.

"Many times, it's just taking something that is already on the shelf and adapting it for a new use. You would be amazed at how much adaptation and innovation comes very quickly," Lake says.

But for some, mining, forestry and agriculture are viewed as almost sunset industries.

Those views are not shared by organizations such as NORCAT, the Sudbury Area Mining Supply & Service Association (SAMSSA) or the Ontario Mining Industry Cluster Council.

When and if mining is depleted in the North, the expertise and knowledge base gained from over 100 years of experience remains, creating a mining excellence hub for international markets.

Research institutions, such as universities, cannot be all things to all people. They should stick with what they are good at, Lake says. Researchers should be expected to research, not become entrepreneurs.

Part of taking on innovation is proving a concept by developing a prototype.

"It is the D part of the R & D that I find is really missing in this country," Lake says.

By issuing tax credits such as the Science Research and Education Development rebate, governments can do their part to put the "D" back in R & D, he says.

"There are funds in Canada that have not even been used (yet) because it is not a coordinated effort. There is no national strategy. I can tell you in Finland there sure as hell is," Lake says. "If we do not have a national strategy, then we are batting our heads against the wall."

www.norcat.org

By KELLY LOUISEIZE

Northern Ontario Business