The Canadian Chamber of Commerce Canada’s Opportunities and Barriers for Success May 12, 2011 Toronto, Ontario Chris Gray Director, Innovation Policy

The Canadian Chamber of Commerce Our Members –Corporate Members –420 Chambers –Associations Representing businesses of every size, from every sector and every region in Canada Mandate = Canadian Competitiveness Priority Files Canadian IP Council

2011Federal Election Majority government should make lobbying more stable for four years. Harper’s mandate will develop over the next few months. Responsibility to deliver for business. “Orange Crush” in Quebec. Chamber calling for a pro-growth strategy. Government will set cabinet posts in the coming days, most likely return to work on May 30 th or June 6 th – Throne Speech, Budget. CONSERVATIVE MAJORITY

Canada’s Business Game Plan Canada is an economic leader among the G8 nations. Decent growth due to global demand for commodities and better than expected expansion in United States. More than 300,000 jobs added to the Canadian economy in the last twelve months. With the loonie trading at or above par for the balance of 2011, Canadian businesses will be under more pressure to improve productivity to compete. Corporate tax reductions.

Conference Board of Canada Report Still lagging in productivity and living standards, loonie’s rise has helped somewhat. Canada continues to invest less in machinery and equipment than other major industrialized nations. Remain at the back of the pack on labour productivity, a key economic challenge for Canada. Income gap between Canada-U.S. has narrowed, but it and productivity gap forecast to grow again. Lagging investment ranks Canada 12 th out of 17 countries.

Intellectual Property in Canada Effective criminal and civil enforcement requires policy and legislation. In 2007, two Parliamentary Committees (Industry and Public Safety) issued unanimous reports that called on the government to take action. Canada continues to lag in digital business innovation and investors are unwilling to embrace new business models built on a shaky IPR legal framework. Launched the Canadian IP Council in 2008.

Canada & IP Most Innovative Economy R&D funding in 2010 In 2007, Canadian culture and creative sector estimated at in the culture and creative sector

IP for Innovation and Economic Growth Over 15,000 people are directly employment by the more than 50 research-based pharmaceutical companies in Canada. These companies contribute an annual $4 billion to the Canadian economy. In the Kitchener-Waterloo region, 400 high-tech companies (whose strengths are in software, microelectronics and telecommunications) generate revenues of $4.6 billion annually and employ 15,000 people. In BC, approximately 6,000 companies, active in the information and communications technologies sector, generate revenues of $9 billion and employ about 46,000 people.

IP for Innovation and Economic Growth International Chamber report – February 2011 IPR: –benefit the economy; –promotes innovation; –helps firms monetize their innovations and grow; and –helps SMEs grow. IP represents 4-11% of GDP in G8 countries

R & D panel – CCC priority issues Government has a definite role to play, but businesses must also continue to evolve their business models with a greater focus on innovation. Government programs, like the Science Research and Experimental Development (SR&ED) program, are key to the early success for many Canadian companies. Venture capital is also a key element. Ownership of intellectual property is of principal importance to a successful business/post-secondary partnership. There should be one model that is used across the board. Adoption of smart technologies.

Economic Impact of IP theft in Canada

Barriers to Increasing Competitiveness Weak intellectual property rights laws Inter-provincial trade barriers Lack of start-up capital Immigration policies Lack of skilled workers

CCC’s Economic Edge Conference What can government do to better position Canada for future growth in ICT e-business adoption? How can we work together to better make the link between technology companies and venture capital? Can universities and colleges finally come up with one good model for the commercialization of research? Bridging the gap between universities/business/incubators. What conclusions will come from the government’s federal review of R&D in Canada? Is Canada a leader or laggard in green/smart innovation?

The Path Forward for Canada Competitive business agenda Encourage growth and innovation for businesses of all sizes Promote Canada’s advantages