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Based on the arguments outlined above, a case can be made that there should be a
rebalancing of the relative efforts that governments in Canada devote to support for
private sector R&D activities versus the support given for the adoption of best practice
technologies. To foster technological innovation and productivity growth, it is proposed
that additional resources be allocated to programs that assist SMEs in the identification
and adoption/adaptation of new technologies.
As noted by Richard Lipsey et al., the National Research Council’s Industrial
Research Assistance Program (NRC-IRAP) is an example of a successful technology
transfer program. This program provides a range of both technical and business oriented
advisory services along with potential financial support to growth-oriented Canadian
small- and medium-sized enterprises. The program is delivered by an extensive integrated
network of 260 professionals in 90 communities across the country and serves over
12,000 firms annually. Working directly with these clients, NRC-IRAP supports
innovative research and development and commercialization of new products and
services. The IRAP portfolio of services has four main components: technology expertise
and advisory services; financial assistance for R&D activities; networking; and
partnerships.20 All Canadian small and medium-sized enterprises (SME's) with under 500
employees and industrial associations desiring to enhance their technological capability
are eligible for support. In 2005-06, the budget of IRAP was $216 million, up from $214
million in 2004-05, and $208 million in 2003-04 (Treasury Board of Canada, 2006).
In a evaluation of the IRAP in 2002 (NRC, 2002), the NRC’s Policy, Planning
and Assessment Directorate found that, based on interviews with program participants,
sales linked to IRAP-assisted innovations were equivalent to 11 times IRAP’s total
contributions to clients. It concluded that IRAP had been successful in its mission of
stimulating wealth for Canadians through technological innovation. However, it should
be noted that no rigorous, independent evaluation of IRAP activities has been undertaken
in recent years so definitive evidence on IRAP’s cost-benefit ratio is absent.
Productivity advance in Canada can be fostered in a cost effective manner through
expansion of existing technology transfer programs such as IRAP, and the creation of
new programs with similar objectives. Specific initiatives to develop these types of
program merit serious attention as a means to improve productivity.
20 The key elements of the four components are summarized below, based on information from the IRAP
website (http://irap-pari.nrc-cnrc.gc.ca). First, the NRC-IRAP Industrial Technology Advisors (ITAs) help
to identify and address the technical and research needs of SMEs at each stage of the R&D development
process and the innovation cycle. Second, NRC-IRAP provides non-repayable contributions to Canadian
SMEs interested in growing by using technology to commercialize services, products and processes in
Canadian and international markets. NRC-IRAP also provides mentoring support and invests on a cost-
shared basis for research and pre-competitive development technical projects. Third, the NRC-IRAP
Network brings together the key players in the Canadian Innovation System for the benefit of SMEs. This
extensive network links entrepreneurs, research and development (R&D) institutions, technology brokers
and technology transfer centres to those with knowledge and information about local sources of financing.
Fourth, NRC-IRAP maintains strong partner relationships with organizations at the regional, national and
international level whose capabilities extend and complement NRC's contributions to the Canadian
Innovation System.