(Montreal) Why do Quebec companies invest less in innovation? This is the question that obsesses the province’s chief innovator, Luc Sirois, who has given himself the mission of arousing the desire to innovate among Quebecers.
Posted at 12:57 p.m.
Sitting in a pared-down office where a whiteboard wall displays the remnants of a brainstorming session, Mr. Sirois says he is troubled by the fact that business spending on research and development (R&D) is declining in Quebec.
“I was in a state of shock [lorsque j’ai constaté ce déclin], he says in an interview with The Canadian Press. In Quebec, we are creative, we are entrepreneurs, we develop. Yes, I go to bed and I get up in the morning thinking about that, asking myself: what are we going to have to do so that, structurally, things change course. »
The Conseil de l’innovation du Québec, of which he is the executive director, has received a mandate from the Ministry of Economy and Innovation to help it achieve this change of direction. The organization, created in December 2020, is at the heart of the Quebec Strategy for Research and Investment in Innovation 2022-2027 (SQRI), unveiled last week.
Numerous statistics demonstrate the lag that Quebec businesses are falling behind in terms of innovation, in particular: the decline in R&D spending, the low number of businesses developing new products and services or the proportion of businesses that have undertaken their digital transformation.
In Quebec, we are particularly good at academic research, but business innovation is in decline.
Luc Sirois, Chief Innovator of Quebec
The decline in business investment in intellectual property products worries the chief economist of Desjardins Group, Jimmy Jean. In the fourth quarter of 2021, this type of investment was down 2.8% compared to its level in 2019, i.e. before the pandemic. In Ontario and the United States, these increased by 10.7% and 14.0%, respectively.
Beyond the figures, these statistics are of real importance for Quebecers, because innovation is a necessary “ingredient” for increasing the gross domestic product (GDP) per capita, explains Mr. Jean during an interview. “It comes down to a population’s standard of living and its ability to provide effective public services. »
Outstanding questions
Mr. Sirois admits that he does not know what are the reasons that slow down innovation in Quebec. This is a mystery that the Conseil’s team, made up of a dozen employees, will attempt to unravel. He could also count on the support of the “wise men” of his advisory committee, chaired by the rector of Laval University, Sophie D’Amours, whose mission is to advise the government.
The Council is working on the launch of an “innovation barometer” which will attempt to paint a granular portrait of research and innovation in Quebec by region and by sector. A first version of the barometer will be published this fall, but the chief innovator stresses that the tool will be enriched in its subsequent versions. “The barometer is the economy, social innovation, the fight against climate change and the question of talent. »
The Council should also lead a study on R&D funding to see if public money is being used effectively to stimulate innovation. The mandate will be entrusted to external experts. “In refundable tax credit for R & D, it is 2.5 billion that is given to companies. Despite this, business spending is going down. [Est-ce que] It works well ? The question must be asked. »
The project does not start with a preconceived idea, however, assures Mr. Sirois. The intention is not necessarily to reduce public funding for R&D. “Where it works, you don’t want to undo it. It’s delicate. Maybe the answer is going to be to increase it. »
The Council will also play a role in the field by directing entrepreneurs to the right resources among the multitude of government, regional, sectoral and university stakeholders, explains Mr. Sirois. “There are plenty of resources. Businesses are mixed up. We make them breathe. We explain things to them calmly and we are able to direct them to these organizations. »
Mr. Sirois also wants to create an informal network of 300 economic development professionals working in different organizations. A first cohort of about forty professionals should receive training this fall. “We want to equip them with training, with directories, with computer tools. He will have “a red telephone” to reach us. »
The taste of failure
Beyond economic policies, the chief innovator of Quebec hopes for a change in mentalities that will encourage innovation. He believes that the collective psyche is too “afraid” of the idea of suffering failure. He says he observes this reluctance on the part of entrepreneurs when the time comes to consider changes within their company. “There is discomfort with the risk that is present here. »
Failure is inevitable when you want to change the way things are done. Mr. Sirois draws an analogy to a hockey player trying to score a goal. “If you just do a shot, when you’re sure it’s going to work, well, let’s see. We know that in hockey you have to shoot several times to get a goal. This is how it works. »
We can accept failure while being cautious, nuance Mr. Sirois. The best approach is to go with small, focused trials and put the rubber on the tests that give the best results. “You want to fail quickly to know which project to stop and you overinvest [dans] the one that works. »