6th Annual Summer Kickoff Mixer July 14 at SPACES, Toronto

2022 Federal Budget: We don’t need another growth fund to address innovation and productivity

FP | Robert Asselin | Apr 13, 2022

wrong solution to problem - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivityLast week’s federal budget could be seen as a pivotal one, at least directionally for the emphasis it put on economic growth. “Now is the time to focus — with smart investments and a clarity of purpose — on growing the economy,” it boldly pronounced in the foreword. To the surprise of many, the words “productivity” and “innovation” even made their way into the budget plan several times. The first step to solve any problem is acknowledging one exists and, as such, the government deserves ample credit.

Where it disappointed was on the two flagship measures proclaimed as solutions to the problem: a $15-billion growth fund and a yet-to-be defined Innovation and Investment Agency that will provide “advice.” The issue with these instruments and structures is they already exist in various forms — or have been tried before — and for the most part, their track records on boosting innovation and productivity are very questionable.

See:  Alberta, The untold history of innovation from Canada’s badlands – Part 1

How will these two flagship initiatives be different from the Strategic Innovation Fund and the Net-Zero Accelerator Fund that were presented in previous budgets as growth funds? And how will they accomplish anything different from the multiple layers of existing programs and funding at the National Research Council, the Canadian Infrastructure Bank, the Business Development Bank of Canada, Export Development Canada, Sustainable Development Technology Canada, the Venture Capital Catalyst Initiative, etc? Crowding out is an outdated — and wrong — way to think about industrial policy.

No matter what financial instrument is deployed, public “investments” won’t produce better outcomes if we don’t change the way we think, incentivize, and produce innovation. Being content with incremental innovation and technological adoption means Canada is leaving a considerable amount of economic wealth on the table to other countries.

Innovation economics is about amassing and leveraging intellectual capital into commercial assets. To only “adopt technology” means we will always be rentiers. This idea that Canada is great at invention but only needs reinforcement at the commercialization phase is false and misguided.

See:  Can Silicon Valley still dominate or are global innovators redrawing the map?

Just look at our record on patents creation over the last decade. Take artificial intelligence as an example: how can we be so good at R&D and so ordinary at reaping the commercial benefits at scale at a time when venture capital (VC) investing in Canada has reached historic levels? How will a new growth fund solve this?

Science and technology form the modern frontier of competitiveness and we need a capacity to better compete for new ideas and technologies. But Canada has an organizational structure for science that has not adapted to the 21st century. Our capacity to do industrial research at scale is almost nonexistent and our technology transfer mechanisms have not kept pace with developments in the creation of knowledge. There is still an overreliance on incremental innovation or safe bets. Ask yourself where we would be without mRNA vaccines or how we will reduce emissions to reach our climate targets.

Continue to the full article --> here


NCFA Jan 2018 resize - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivityThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivityFF Logo 400 v3 - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivitycommunity social impact - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivity

Support NCFA by Following us on Twitter!






NCFA Sign up for our newsletter - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivity



Not to be missed! Registration NOW OPEN!

Help us kickoff the Summer in style


NCFA Summer Kickoff Jul 14 2022 800 - 2022 Federal Budget:  We don't need another growth fund to address innovation and productivity




 

Leave a Reply

Your email address will not be published. Required fields are marked *