ONTARIO COLLEGES STIMULATE INNOVATION

OTTAWA, Nov. 2 /CNW/ - Colleges in Ontario are making positive contributions to the economy, businesses and individuals by stimulating applied research and development (R&D) and accelerating much-needed innovation, according to a Conference Board of Canada study released today at the Ontario Economic Summit.

The report, Innovation Catalysts and Accelerators: The Impact of Ontario Colleges' Applied Research, found that, in many instances, the applied research services provided by Ontario colleges' stimulate new R&D activity and spending in businesses—which would otherwise not have occurred had the college expertise and applied research funding not been available.

"Innovation is essential to productivity growth, which is a key factor in long-term economic prosperity. As long as Canadian businesses lag on innovation, our standard of living will be at risk, and the funds to afford health, education and other services will be stretched. Stimulating innovation - especially among Ontario small and medium-sized enterprises - will be critical to future success, and Ontario's colleges are providing a boost through their applied research services," said Glen Hodgson, Senior Vice-President and Chief Economist, The Conference Board of Canada.

Of the 29 business-college collaborations studied, nearly all have led to the development of a new or improved good, service or process. And according to businesses, collaborating with colleges also reduced delays in their projects, lowered costs, increased quality, and provided ideas and opportunities for additional collaborations.

For students, participation in applied research projects provides industry-relevant experience, improved technical and employability skills, and entrepreneurship skills - more than a dozen students involved in collaborations were hired after working on a project.

The study found that there is an opportunity to achieve much more by investing more in Ontario's colleges. Funding for applied research at colleges has been modest, the scale is limited and many institutions are new to applied research. Nevertheless, colleges' applied research services—such as assistance with design and prototyping, proof of concept, and testing—not only serve as catalysts for new R&D spending and activities; they also accelerate innovation.

An economic impact model undertaken by the Conference Board found that boosting federal and provincial spending on R&D and directing it to colleges ($93 million) would boost the Ontario economy by almost $150 million (constant dollars) and create 2,600 jobs between 2011 and 2014. A second scenario, in which SR&ED tax credits are extended to cover R&D performed at colleges, would add an additional $19.3 million to the Ontario economy.

The report provides recommendations for government and colleges to increase the contribution that Ontario colleges can make to small-and-medium enterprise innovation performance. Federal and provincial governments can: increase funding for infrastructure, capacity and research projects with business; revise funding criteria to focus on innovation outcomes; create an Applied Research Leaders program; and allow college faculty more time to pursue research.

Colleges should: ensure that research fits with its core mandate of student education and training; enhance networks, staffing and procedures to improve relationships with businesses; and increase mentoring, sharing and learning among colleges.

"This report confirms that colleges can play a significant role in strengthening small business innovation across the province," said Len Crispino, the President and CEO of the Ontario Chamber of Commerce, which organizes the Ontario Economic Summit. "This will be important to Ontario's efforts to promote economic growth and create new jobs."

The report is based on: literature and data reviews; an economic impact model; an online survey of 181 Ontario-based businesses; and interviews with over 150 key stakeholders in business, government, colleges and universities.

An executive summary of the report is available at www.e-library.ca. A copy of the report is available at www.collegesontario.org.

For further information:

Brent Dowdall, Media Relations, Tel.: [phone] ext. 448
E-mail: [email protected]