To tackle Canada's well-known challenges in commercializing R&D, Finance Minister Jim Flaherty met with officials responsible for Israel's R&D policies. Israel's approach to government funding for R&D is highly respected and has achieved outstanding results. In recent years, this funding model has helped Israel become the world leader in startups per capita.
"They've certainly achieved remarkable results, and there are aspects of Israel's approach that we should study closely—and maybe even adopt ourselves," Flaherty told reporters during a conference call.
The government hasn't yet specified what changes will be made to the current $7 billion in innovation funding (which includes direct support like the Industrial Research Assistance Program (IRAP) and indirect support like the Scientific Research and Experimental Development (SR&ED) program). However, Prime Minister Harper has said he will consult the Tom Jenkins report, submitted last November. The Jenkins report recommends several changes, including more direct funding—such as grants targeted at specific industries and companies. At the same time, it calls for major reforms to the broad-based, indirect SR&ED program.
"We'd be missing an opportunity if we didn't take a close look at what they're doing and see which of their strategies could work here in Canada," Flaherty said.
