By Sarah Watts-Rynard
and Denise Amyot
Developing new prototypes, adopting new technologies and designing new processes takes time, money and human resources. As Canada’s economic engines, small and mid-sized enterprises represent the greatest potential source of innovation and productivity gains.
But where do they turn for help?
Polytechnics and colleges are their natural allies, supporting new product development, identifying process improvements and sketching out new strategies. Given the economic impact of this work, it’s more important than ever to ramp up institutional capacity to help businesses meet their innovation goals. This is where government has an opportunity to make impactful investments in innovation.
Two-thirds of Canadians work in companies with fewer than 100 employees, and though these employers are fundamental to Canada’s economy, the reality is that small businesses are often so focused on staying afloat that strategies to grow are secondary. In order to stay competitive, our economy demands that we find ways to encourage and support innovation behaviour among small and mid-sized Canadian firms.
The first step is to recognize where the most innovative of these already go to find the facilities, equipment and talent to boost their businesses. Canada’s colleges and polytechnics tend to fly under the radar as hubs of innovation and research and development. Yet their campuses host some of the most cutting-edge applied research facilities in Canada, servicing sectors as diverse as aerospace, construction, high tech, film and television, advanced manufacturing, oil and gas and agriculture.
Polytechnics and colleges are the institutions where businesses experiment with new technology, processes and software, often putting students to work on real-world business challenges. And employers who work with students are creating more than business innovation – they’re building their own talent pipeline.
If the Canadian government wants to boost innovation outputs, there’s no better place to focus new dollars. Polytechnic and college research partnerships are almost exclusively funded through federal grants under the College and Community Innovation Program (CCIP). But this program accounts for less than three per cent of the government’s spending on research conducted at post-secondary institutions.
Canada can do better.
Even with relatively limited dollars, the economic impact of this program has been impressive. In 2017, colleges and polytechnics across Canada developed nearly 7,000 research partnerships with private, public and non-profit sector organizations. These partnerships delivered more than 1,400 prototypes, 700 new products, 500 processes and 350 service improvements. More than 27,000 students were involved.
Frankly, this is the tip of an innovation iceberg.
Exposing more of this iceberg requires a stable, ongoing investment in the capacity of institutions to grow their research operations while maintaining the highest standards of research excellence. It means providing resources to reach out to organizations and firms that don’t come knocking of their own accord.
While Canada has a Research Support Fund to “maintain modern labs and equipment, provide access to up-to-date knowledge resources, provide research management and administrative support, and aid in knowledge transfer,” universities are the primary beneficiaries.
Colleges and polytechnics deserve similar support in recognition of their role in the innovation economy.
With greater investment in polytechnic and college applied research, institutions could enhance their capacity for business development, needs assessment, partnership support and student engagement. Predictable support would serve to streamline project initiation, increase national and international collaborations, and ensure ongoing access to dynamic, client-centred services.
Such an investment would boost business innovation and growth, with beneficiaries in small towns and urban centres in every corner of Canada.
Canadian businesses focused on innovation are businesses that grow, hire and thrive in a constantly shifting business environment. The federal government could do more to foster this development.
Sarah Watts-Rynard is CEO of Polytechnics Canada, a national association of the country’s leading polytechnic institutions. Polytechnic education is industry-driven and hands-on, actively preparing graduates for the world of work. Denise Amyot is the president and CEO of Colleges and Institutes Canada (CICan), the voice of Canada’s publicly-supported colleges, institutes, cegeps and polytechnics, and an international leader in education for employment with ongoing programs in over 25 countries.