Canada has a productivity problem. When compared with economies on a similar scale, our businesses spend less on research and development (R&D) and are slower to adopt new technology. Without a push to increase productivity and immediate action to directly support both largescale firms and small-to-medium sized enterprises (SMEs) the future of the Canadian economy is at risk.
Unpacking the productivity challenge
Low business expenditure on R&D is partially to blame. Among Canada’s largest firms, few spend on R&D. For Canada’s SMEs, risk can also be a barrier – some feel unready to invest, don’t have the time or capacity to explore R&D, or simply don’t know where to start. Building an innovation ecosystem that provides guidance, connections to talent, and can subsidize financial expenditure is key to overcoming barriers to adoption and solving the productivity problem. “Reclaiming productivity depends on Canadian companies being able to access the knowledge, expertise, talent, and capital they need to digitize, streamline, and innovate,” says John Hepburn, CEO, Mitacs.
Promoting access to talent
By simplifying how Canadian businesses connect to talent, R&D can be accessible and affordable. Through subsidized programs and with the benefit of a network and talent pool cultivated over the past 25 years, Mitacs can play an important role in driving industry participation in R&D. As a national leader in the innovation space, Mitacs is uniquely placed to connect industry and post-secondary researchers, creating effective partnerships critical to addressing Canada’s productivity problem. Mitacs also helps SMEs create the right environment for innovation – one where companies can feel safe to experiment and take risks.
Supporting Canadian industry
Mitacs is not only working to support the productivity challenge it’s also uniquely positioned to be a driving force in Canada’s economic future. “To date, we’ve made over 28,000 meaningful connections — unique partnerships that bring together Canadian companies with the talent and investment they need,” says Hepburn, “We are able to collaborate closely with business accelerators and incubators and, through the generous support of our government partners, we’ve invested over $1.3 Billion into R&D since 2010 – directly supporting over 11,000 small businesses across the country.” Mitacs sees firsthand what successful partnerships can do. In data collected over a three-year study, companies that sourced R&D talent and investment experienced significant growth, averaging an 11 percent increase in labour productivity, nine per cent increase in employment, and a further nine per cent increase in revenue. “We’ve helped thousands of Canadian SMEs de-risk innovation and growth, recruit much-needed talent, and go global,” says Hepburn. We work tirelessly to match startups with the skilled and specialized talent they need to help them identify, understand, and connect into new markets. We’re proud to be addressing the productivity problem head-on and helping build a brighter future for Canada.”
This article was originally published on innovatingcanada.ca (March 14, 2024).
