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Bridging Canadian Technology SMEs Over the Valley of Death

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Author Info
Jorge Niosi

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Abstract

This comment analyses the Panel report and finds that its main diagnosis is correct: Canada's BERD is low. The Panel report is fairly silent about the necessary improvements to Canada's innovation system. This comment suggests that while Canada's tax credit for R&D and Industrial Research Assistance Program (IRAP) are useful programs, they need to be complemented by other direct incentives that may help small technology firms to cross the "valley of death", complete proof of concept and become eligible to venture capital. The US Small Business Innovation Research (SBIR) program, imitated by Japan, is the best model for such an incentive and Canada should consider its adoption.

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File URL: http://www.csls.ca/ipm/18/IPM-18-Niosi.pdf
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Publisher Info
Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 18 (2009)
Issue (Month): (Spring)
Pages: 80-84
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Handle: RePEc:sls:ipmsls:v:18:y:2009:6

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Related research
Keywords: Review; innovation; productivity; Industrial Research Assistance Program; Small Business Innovation Research program; public policy;

Find related papers by JEL classification:
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

References listed on IDEAS
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  1. Niosi, Jorge, 2002. "National systems of innovations are "x-efficient" (and x-effective): Why some are slow learners," Research Policy, Elsevier, vol. 31(2), pages 291-302, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-2.

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