COVID-19 ‘exacerbating’ Canadian startups’ means to innovate: report – Enterprise Information

COVID-19 ‘exacerbating’ Canadian startups’ ability to innovate: report - Business News

Virus pushing innovation?

Tyler Orton, Enterprise in Vancouver – Oct 16, 2020 / 3:16 pm | Story: 313612

Because the COVID-19 disaster applies additional stress on Canadian startups, a brand new report warns the nation’s innovation sector dangers everlasting middling standing behind different international locations.

An October 15 report from the Data and Communications Know-how Council (ICTC) is urging governments on all ranges to step up with incentives that might increase analysis and commercialization of expertise and different improvements from small and medium-sized enterprises (SMEs).

One such risk floated by the not-for-profit nationwide centre of experience is a instrument acquainted to some B.C. companies: a patent field.

It features as a tax coverage permitting regional companies to obtain lowered efficient tax charges on earnings from qualifying mental property (IP), resembling patents and software program copyrights.

B.C. was the one province to have such a instrument earlier than it was scrapped in 2017 after 11 years.

“COVID-19 is exacerbating the boundaries and challenges confronted by SMEs in search of to create new IP and acquire formal IP protections,” the council said within the report written in partnership with Ontario-based ventureLAB.

“COVID-19 has created a scenario the place SMEs need to refocus their priorities—typically towards fundamental parts of survivability resembling sustaining staffing and buyer bases. This incurs exterior prices, resembling these related to IP protections, which can be seen as superfluous.”

The council discovered that Canada is already routinely underperforming in contrast with different international locations when it comes to IP.

Canada ranked 17 general out of 129 nations on the World Mental Property Group’s 2019 International Innovation Index (No. 9 in innovation enter and No. 22 in output).

“Canada’s problem of IP commercialization shouldn’t be new — it’s a downside that has plagued us as a nation for years,” the council said.

The ICTC can also be calling for corporations to prioritize extra various founding groups when it comes to experience to keep away from pitfalls dealing with founders who’re each “overconfident about their thought” and naïve in regards to the roadblocks to commercialization.

Extra various groups will even be that rather more interesting to enterprise capitalists that may fund these startups, the report said.

The council desires extra efforts made in increasing merchandise to new markets, leveraging the comparatively new commerce settlement with the European Union: the Complete Financial Commerce Settlement (CETA).

“With proof suggesting that companies who maintain formal IP are 4 occasions extra prone to develop internationally than these that don’t, Canada can’t afford to focus solely on the downstream income in search of actions and must domesticate internally aggressive scale-ups, and increase innovation output,” the report said.

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