Canada’s innovation shortcomings will not improve until small- and mid-sized businesses are active contributors
A recent report on small business indicates 97.9 per cent of Canadian businesses have fewer than 99 employees and employ almost 70 per cent of the private sector labour force. Between 2012 and 2016, small businesses contributed more than 51 per cent of GDP.
Simply put, policies that do not address the unique challenges associated with small business innovation will fail to catalyze improvements on the scale required to move the needle.
Precisely because small businesses have unique needs based on their sector and region, they are a hard audience for one-size-fits-all government policy. Here, government needs to leverage existing systems, spaces, equipment and expertise. This is where Canada’s polytechnics — the country’s largest institutes of applied and technical learning — offer a valuable lever.
At Canada’s polytechnics, more than 80 per cent of applied research responds to the needs of small- and mid-sized firms. In partnership with the institution, businesses can address a persistent obstacle, explore new technologies or streamline operations, all with the outcome of propelling growth, improving productivity and entering new markets.
Polytechnic applied research departments offer state-of-the-art facilities, faculty expertise and student ingenuity. They are on the front line of efforts to solve some of Canada’s biggest challenges, from human health to climate change to the pragmatic implementation of robotics on production lines. At the end of the project, intellectual property remains with the business partner, who is often best positioned to sow that value back into the Canadian economy.
Take for example Frontier North Adventures, which in partnership with Red River College successfully created a zero-emission Tundra Buggy. Leveraging RRC’s Vehicle Technology and Energy Centre, the project contributes to Manitoba’s northern tourism sector, while reducing environmental impact and protecting the province’s sub-Arctic landscape.
But, applied research is more than a technical service to partners. It also enables direct links between faculty and industry, building new knowledge and understanding within the education system. Further, applied research is a valuable source of work-integrated learning, ensuring learners are exposed to real-world challenges and generating an innovation-enabled talent pipeline.
At Conestoga College’s Institute for Seniors Care, researchers are finding innovative solutions to improve the quality of care for seniors. One recent project bridges the gap between unregulated care workers and patients with dementia — a complex issue for which workers are provided no formal training. By developing brief, interactive online modules, the project is expected to transform dementia care across the country.
Applied research clearly has impact — but why is this so important right now?
Consider the federal government’s recent commitment to a life sciences and biomanufacturing strategy. If Canada wants to recreate its vaccine production capacity, we’ll need more than viable vaccine candidates. Polytechnic applied research stands to offer critical support related to commercialization and technology application. Its expertise is across the value-chain, be it in creating advanced manufacturing capacity or embedding Internet of Things and data analytics, will be crucial to success.
Equally important is the economic bounce-back required post-pandemic. While a great many small- and mid-sized businesses have struggled, we know the impact was greatest among underrepresented business owners and entrepreneurs.
One-third of businesses owned or operated by women, Indigenous or racially diverse people say they expect demand to decrease in the second quarter of 2021. One in six businesses owned by visible minorities expect to decrease the prices of goods and services they offer, compared to one in ten private sector businesses overall.
A recent survey found that Indigenous business owners were far less likely to find the help they needed during the pandemic. Yet, these same individuals and organizations have ideas, products and processes of immense value to Canada’s economy and society. Again, applied research has solutions and support to offer.
With the election now in the rearview mirror, we can turn our full attention to recovery. For the Liberals, the message must be clear; applied research stands to be an important part of the solution if harnessed and adequately supported.
Photo courtesy of iStock
