Key Takeaways
- The Council of Canadian Academies has released a report on the state of science, technology, and innovation in Canada, highlighting the need for improvement.
- NSERC President Alejandro Adem has signed a memorandum of understanding with Axelys to align research funding with commercialization and economic prosperity.
- The concept of "valorisation" is being employed in Quebec, which implies more than novelty, discovery, or invention, and is shaping the province’s academic landscape and policy debates.
- Intellectual property is a key factor in the valorisation model, with a focus on retaining IP in Canada and ensuring it benefits society.
- The valorisation model is not yet existent on a Canada-wide level, but Axelys is working to expand its approach to the rest of the country.
Introduction to the Valorisation Model
The day after the Council of Canadian Academies released its report on the state of science, technology, and innovation in Canada, NSERC President Alejandro Adem signed a memorandum of understanding aimed at aligning research funding with commercialization and, ultimately, Canadian economic prosperity. This move is seen as a step towards addressing the country’s lack of ability to hold on to intellectual property (IP) generated by innovative research. The memorandum of understanding was signed with Axelys, an agency dedicated to transforming the way research in Quebec is managed, and ensuring it benefits society by keeping the resulting IP in the province.
The Concept of Valorisation
The concept of "valorisation" is being employed in Quebec, which implies more than novelty, discovery, or invention. This concept has been shaping the province’s academic landscape and policy debates since the launch of the ambitious policy initiative Savoir changer le monde (Knowledge to change the world) almost 25 years ago. Axelys emerged in 2021 as the brainchild of this evolving strategy, linking the province’s dozens of college and university technology transfer offices through a single administrative office. The Fonds de recherche du Quebec (FRQ) supports research upstream to the point of scientific discovery, while the specialized teams at Axelys work downstream to assess the prospects of any IP and ensure it remains in Canadian hands.
The Importance of Intellectual Property
Intellectual property is a key factor in the valorisation model, with a focus on retaining IP in Canada and ensuring it benefits society. The fate of IP distinguishes "valorisation" from "innovation," which was at the heart of the discussion with the Standing Committee. As speakers argued, the past several decades have seen a dramatic shift in the global definition of wealth, no longer rooted in tangible assets such as gold or manufacturing facilities, but instead taking intangible, digital forms — the patents and proprietary ideas generated by innovative research. Canada rightly celebrates its global standing in research, the ability to generate those ideas with commercial potential. However, the country’s ability to hold on to those ideas is another story.
Tying IP Strings to Research Funding
For Axelys CEO Jesse Vincent-Herscovici, research funds should come with IP strings, so that even the most unpromising IP candidates can be retained and regularly assessed, a safeguard against the possibility that they could become more valuable at some point in the future. This approach is not yet existent on a Canada-wide level, but Axelys is working to expand its approach to the rest of the country. The commercial potential of research insights can take years, even decades, to become apparent, as technology or markets change to create opportunities for new products. Cultivating the necessary legal and technical expertise to determine the value of IP, along with maintaining a substantial database for tracking it, is an expensive, long game.
Cultivating a Culture of Valorisation
The difficulty of embracing this counter-intuitive notion is what has prevented Canada from enjoying the same innovative success seen elsewhere. Those Quebec SMEs get a bargain, since the IP might have earned a higher price if it went to a foreign buyer. Axelys covers that immediate loss, in exchange for the longer-term assurance IP will remain where it could benefit the same public that paid for it in the first place. The good news, according to Mr. Vincent-Herscovici, is this difficulty is not written into our national genes. It is a structural problem, based on how research funding is provided — a bureaucratic problem to be solved, not an inherent cultural trait to be tackled. Now, it’s time for NSERC to help expand Quebec’s valorisation model to the rest of Canada, says Dr. Adem. "We can be instrumental in culture change among the research community."
Expanding the Valorisation Model
The expansion of the valorisation model to the rest of Canada is a key step towards addressing the country’s lack of ability to hold on to IP generated by innovative research. Axelys has already demonstrated the virtues of valorisation, with a transfer rate of IP to Canadian small- and medium-enterprises (SMEs) of 89.5% in Quebec, compared to 33-50% in other provinces. By monitoring how this IP is handled, Axelys can ensure that it remains in Canadian hands and benefits society. This approach is not only beneficial for the economy but also for the research community, as it provides a new way of thinking about innovation and commercialization. As Dr. Adem notes, "We want to be hard-nosed about it. That’s a great value Axelys is bringing. I think we can learn from that kind of methodology."