Brain-Aide

The Government of Ontario recently introduced the Ideas for the Future Act, 2008 that will allow for a 10 year income tax refund for businesses commercializing “home grown” ideas. The commercialization projects have to involve ideas and technologies developed at “qualifying” Ontario universities and colleges. Targeted technology groups include “advanced health, bio-economy/clean technologies; and, telecommunications, computer or digital technologies”. Only foreign venture capital with at least 59 percent of it’s invests in Ontario will be eligible for the tax refund.

http://www.fin.gov.on.ca/english/media/2008/nr09-otec.html

Reading between the lines:

Just because a Bill has been introduced does not necessarily mean that it will pass and become law. That depends on the government’s legislative agenda and exactly where the Bill falls in terms of importance. However, given that the government has recently created a Ministry of Innovation, it would stand that bill ranks fairly high on the legislative agenda will pass in the days to come.

If it does pass, the Act will not have a significant impact on the technological sector, especially keeping in mind the tax refund applies only to technologies emerging from the Canadian post-secondary sector and research houses. Despite the rosy talk, Canadian universities are not hard-wired for commercially applicable research. This requires two key components; a) putting more money into basic research and b) realigning program streams for an applied or commercial output.

• Basic research is the research that is not commercially viable but becomes the backbone from which commercial ideas are built. Given that the commercial entities will generally not engage in basic research, it is often left as a government sponsored function through universities. However, without it, commercializable research would not be possible. Increasing basic research will conversely allow commercial grade technologies and ideas to be developed.

• Realigning program streams for an applied or commercial output is a much more difficult task and gets to the core of why some companies are innovative and some are not. Using the word “innovation” does not make you innovative. Adopting it as a core organizational principle, creating organizational structures that can recognize, support and develop new ideas/technologies and working in closely knit, inter-disciplinary teams are most conducive to being commercial grade output and ideas. The philosophical mantra behind most Canadian university academics is rooted in research for researches’ sake (basic research) but not for applied or commercial output, which in certain circles can be viewed with considerable distaste. However, this is slowly changing.

By restricting the refund to the commercialization of Ontario held/developed intellectual property, the government is missing the boat on a much more lucrative market. It shuts out equally viable “foreign” technologies that could be used to develop an industrial base, job creation, knowledge spillover and building a mastery of technologies from all over the world.

Tax incentives are competitive incentive tools in building for businesses and setting up centers of excellence and growth. By limiting the refund to ideas from Ontario universities, the government is sending a message to the world that outside ideas and technologies are not welcome. If the government is truly serious about stimulating R&D, setting up a manufacturing base and increasing employment prospects for its population, it must recognize the utility of all ideas and technologies, regardless of who holds its IPR, where it was developed and bring them to Ontario.

Salt Lake City looks to improve their infrastructure and make it more green friendly.

http://www.sltrib.com/ci_9260272

Look for more information on green energy at http://brain-aide.com

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Brain-Aide.com

If you have made it here, you are among those who are looking to improve this world. We know there are bright people out there with good ideas and there are groups out there that need these bright people to help their country men and the world in general. Here, we can highlight these people to better help them to get aquainted to the world who need them.