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Bridging Canadian Technology SMEs Over the Valley of Death

  • Jorge Niosi

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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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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  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.
  2. Niosi, Jorge, 2003. "Alliances are not enough explaining rapid growth in biotechnology firms," Research Policy, Elsevier, vol. 32(5), pages 737-750, May.
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