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Integran Technologies Inc.

Submission — Integran Technologies Inc.

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Submitter(s): Emrich, Rich

Summary: If commercial success of innovation is important, and the related economic benefits that brings, every aspect of Canada's R&D investment needs to recognize the role of SME's in leading commercially important innovation. We believe commercial R&D (unlike institutional R&D) in Canada is chronically underfunded at the SME level as a result in the heavy reliance on loan/grant against expense programs which only fund a small portion of R&D effort long after the cash has been found, and spent. We believe that Canada could be more competitive and innovative with a few fundamental, but simple changes that recognize that SME's are the ones that drive commercially important innovation in any economy:

  1. SR&ED:
    1. Skew SR&ED funding towards smaller companies as this is where the best innovation/$ will be found
    2. Increase eligible expenses for SR&ED so that small companies can take greater advantage
  2. Structure "direct investment programs" (SADI, SDTC, etc) with the following principles:
    1. Allow the market, not civil servants, to pick innovation worthy of support (SDTC does this)
    2. Allow small companies to leverage in-kind support of the market (SDTC does this)
    3. Pay up front instead of cash back (SDTC does this)
    4. Pay in grants, instead of loans (SDTC does this)
  3. Allow universities and national labs to focus on innovation NOT commercial R&D efforts
  4. Allow "Flow through shares" for R&D losses

Full submission: PDF Version