Igniting Innovation

There has been much discussed lately about what makes good innovation policy – and, more specifically, what Canada needs to do ensure we are competitive in the innovation space.

While it is true that Canadian investment into innovation lags behind other OECD nations, we are not starting at ground zero. When the Innovation Supercluster Initiative was announced in 2018, it was viewed as an important catalyst within Canada’s innovation ecosystem. Much more established in Europe, cluster theory — the marriage of industry, academic and government — has proven to be a successful model for growing innovation ecosystems. One of the most referenced in North America is Silicon Valley. But around the world you will see cluster theory at the heart of many important sectors of the global economy – forestry, agriculture, manufacturing and more.

And while much has been written, and speculated on, about Canada’s own journey down the Supercluster path – the fact remains that regardless of their name, at their roots, they are good innovation policy. And more over, they have been successful.

What makes the Innovation Supercluster Theory good innovation policy? First and foremost – its industry led. The innovations coming from Supercluster projects are led, and invested in, by Canadian companies working to take advantage of a market opportunity. The Innovation Supercluster Initiative was created through a competitive process – where industry was asked to identify sectors where Canada could be a global leader. Plant-based foods is proving to be just that – with a global market expected to exceed $250 billion by 2035, there is opportunity to be had. In just four years, Canada, and our growing ecosystem, has already made our mark.

Which brings me to my second point – Protein Industries Canada, under the Innovation Supercluster, Initiative has been successful. While I recognize it may not be very Canadian to boast of our success, I think it is important that we acknowledge when something has achieved what it was created to do. When Protein Industries Canada was created, we were entrusted with $153 million from the federal government to co-invest with Canadian businesses to help de-risk innovative R&D. We were given the goals of leveraging $1 of private investment for every $1 of government-invested funds. In return, our investments were to create new IP, 5,000 jobs and contribute $4.5 billion to GDP.

With one year left in our initial tranche of funding, Protein Industries Canada has leveraged almost $300 million in industry funds. Meaning we’ve leveraged $3 from private companies for every $1 invested by government. Our member companies have created 162 new IP assets and 500 new products, processes and services. And we are projected to surpass both the job creation and GDP goals. In addition, our members have attracted a further $200 million in follow-on investment from private investors. This shows the strength investing in R&D while also in building a competitive ecosystem – a cornerstone of cluster theory.

Going forward, we need to continue to focus on building Canada’s innovation ecosystem. It will take time and it will take a consistent, well-designed approach to bring innovations to commercial reality. The Innovation Supercluster Initiative is one program contributing to Canada’s innovation agenda – and it is proving to be a successful prototype. Like with most new things, there are probably some tweaks to be made to improve upon it, but, really, isn’t that what innovation is all about? More so, we will never advance our innovation agenda if we keep cycling through programs – businesses need stability, and they need time to reach commercialization. The Innovation Supercluster Initiative has created that runway, but we need to keep working to realize our full potential.

At Protein Industries Canada we are proud to work alongside trailblazing companies to advance Canada’s agrifood sector. Already, you will see the result of this innovation at your local grocery store. What you might not see are the new businesses created, existing businesses expanding, jobs being created, money being invested and new partnerships being formed. And yet, all of that is happening with every project co-invested in by Protein Industries Canada.

The Innovation Supercluster Initiative is good innovation policy for Canada. The plant-protein food, feed and ingredient ecosystem is a high-growth sector. Together, the two can help propel Canada’s economic recovery. The Supercluster program has been a game changer for companies across Canada. Now we just need to keep building on our momentum.