2. WORLD CANADA INNOVATION IN CANADA - the big picture 96% 4%
codified new knowledge
arising from research
96% 4%
WORLD
investment
by MNE’s
bringing tacit
knowledge
CANADA
HQP and tacit
knowledge
commodities
(price-taking)
innovations
(price-setting)
traded goods and services
INNOVATION IN CANADA - the big picture

3. WORLD CANADA INNOVATION IN CANADA - The actors in the economy market4%
from the other 96%
WORLD
codified new knowledge
immigration
emigration
investments by
MNEs and tacit
knowledge
government
research
university
research
HQP
market
intelligence
& product
information
mipi
market
industry
CANADA
commodities
innovations
INNOVATION IN CANADA - The actors in the economy

4. INNOVATION IN CANADA - knowledge and investment flows
government
research
university
research
research
support
problem solutions
(contract or grant)
standards and
certification
problem
solutions
(contract)
“in kind”
R&D
assistance
discoveries and
inventions + IP
discoveries and
inventions + IP
industry
INNOVATION IN CANADA - knowledge and investment flows
in the UIG triangle

5. INNOVATION IN CANADA - a closer look at interactions among
university research in NSE
market
intelligence
and product
information
gov’t R&D
assistance
results from
Canadian and
world research
HQP
gov’t R&D
assistance
discoveries,
inventions,
and IP
immigrating,
emigrating
start-ups
from universities
HQP IP $
from universities
HQP
innovations
results from
Canadian and
world research
market
intelligence
and product
information
firms that do
or buy R&D
market
intelligence
and product
information
firms with
no R&D
investment by
MNEs and tacit
knowledge
Investment by
MNEs and tacit
knowledge
innovations
commodities
INNOVATION IN CANADA - a closer look at interactions among
industry, government labs, and universities

6. INNOVATION IN CANADA - an even closer look at the
world research
operating costs
direct from NSERC
indirect from university
codified new knowledge
university research in
science and engineering
students
HQP
HQP
basic research
project research
all sectors
research
infrastructure
provinces
CFI
private funds
HQP with skills
of particular
interest to
research
partner firm
solutions
share of
project costs:
$ and in kind
new codified
knowledge -
the Canadian 4%
discoveries or
inventions with
innovation
potential
problems
licences
firms that do or buy R&D
first stages of
commercialization
start-ups
INNOVATION IN CANADA - an even closer look at the
impacts of university research in science and engineering

7. INNOVATION IN CANADA - the connection between
benefits to
society
new value-added
economic activity
successful
innovation
failure in the
market
market
return on
investment
failure to reach
the market
private
funds
commercialization process
taxes IP
demonstration
of innovation
potential
recognition
basic research
research
support
new codified
knowledge
public funds
discoveries and
inventions
INNOVATION IN CANADA - the connection between
university basic research and the market

8. INNOVATION IN CANADA - the connection between
benefits to society
successful
innovation
successful
innovation
new value-added
economic activity
market
failure in the
market
taxes
return on investment
failure to reach
the market
return on investment
purchase of marketable product
or the whole start-up company
partner company
private
funds
commercialization process
internal
commercialization
process IP
start up
problems
taxes
solutions $
“in kind”
potential IP
partial
research
support
public
funds
project
research
results, discoveries
and inventions
new codified
knowledge
INNOVATION IN CANADA - the connection between
university project research and the market