Minutes - TRIPS Council - View details of the intervention/statement

H.E. Ambassador Dr. Walter Werner
11   INTELLECTUAL PROPERTY AND INNOVATION: SUMMARY OF THE 2018 THEME – THE SOCIETAL VALUE OF IP IN THE NEW ECONOMY, AND 2019 IP AND INNOVATION THEME: PUBLIC-PRIVATE COLLABORATIONS IN INNOVATION

323.   Canada is pleased to co-sponsor the "IP and Innovation" theme of "Public-Private Collaborations in Innovation", and the accompanying communication on this topic. We would like to thank Singapore for drafting the paper for discussion under document IP/C/W/652, as well as the co-sponsors of this discussion and other Members that have shared their national experiences and insights on public-private collaborations in innovation so far. 324.   Before sharing some of our own recent experiences on this topic, Canada would also like to thank the United States and the co-sponsors of the summary paper on our recent discussions under the theme "The Societal Value of IP in the New Economy" (document IP/C/W/650). Canada was pleased to participate in the wide-ranging discussions under this theme during the three TRIPS Council meetings in 2018 and benefited from the constructive and insightful sharing of experiences by Members on issues such as IP-intensive industries, IP improving lives, and IP and new business. 325.   On the Public-Private Collaborations in Innovation topic, Canada would like to take the opportunity to present an overview of Canada's recently-launched "Innovation Superclusters Initiative", a new funding initiative by the Government of Canada that has been designed to help strengthen Canada's most promising clusters and accelerate economic growth in highly innovative industries.8 326.   In the Government of Canada's Budget 2017, the Government put forward the "Innovation and Skills Plan", an agenda to spark growth and help Canada realize its potential as a global leader in innovation. As part of this agenda, in May 2017, the Government launched the "Innovation Superclusters Initiative" to accelerate innovation through superclusters. Budget 2017 proposed to invest up to CAD 950 million (or approximately USD 725.51 million), to be provided over five years on a competitive basis in support of a small number of business-led innovation superclusters that have the greatest potential to accelerate economic growth. Under this initiative, industry partners match the Government of Canada's programme contributions dollar-for-dollar. 327.   This initiative is a first of its kind for Canada, fostering connections between participants, from start-ups, small and medium-sized enterprises (SMEs) and large anchor firms, to post-secondary institutions, research and government partners. Through a small number of high-value, strategic investments, this initiative is co-investing with industry to strengthen Canada's most promising clusters and build superclusters at scale. The initiative is a "made in Canada" approach. Working through a business-led partnership model, the initiative works to align the efforts of diverse industries, researchers, and intermediary institutions, and build ecosystem-level advantages in regions across Canada. 328.   Supercluster strategies under the initiative are structured around five themes of activity, which are eligible for co-investment. These activities include:  Technology leadership, such as by way of collaborative projects that directly enhance Member firm productivity, performance and competitiveness (for instance, through collaborative R&D projects and private-sector-led commercialization projects).  Partnerships for scale, which refers to activities serving a target group of cluster firms, such as linking start-ups with strategic partners, and supply chain development to cluster SMEs with anchor firms;  Diverse and skilled talent pools, such as by way of activities that enhance regional labour force skills and capabilities;  Access to innovation, which refers to investment in and providing access to assets, services or resources that benefit a range of cluster firms, such as the acquisition and assertion of jointly-held IP; and finally  Global advantage, which refers to activities that position the cluster as world-leading, enabling firms to seize market opportunities, and attract international investments and partnerships. 329.   One of the key objectives of Canada's Innovation Superclusters Initiative is to deepen existing strengths where Canada is already globally-competitive. This includes strategies to enhance Canada's capabilities, competitive advantage and leadership in commercialization. As well, the initiative is aimed at supporting industry-led collaborative R&D, particularly with respect to platform technologies, and to strengthen public-private collaboration, including with academia, to align innovative ecosystems. 330.   In fostering a critical mass of growth-oriented firms, the initiative aims to develop five "superclusters", namely innovation hotbeds that benefit from strong connections between firms and research talent, competitive advantage, global brand recognition, and a contribution to job creation and economic growth. 331.   The Minister of Innovation, Science and Economic Development announced Canada's five selected superclusters in February 2018. Following the national announcement, the negotiation of contribution agreements began between the Government of Canada and the five industry-led consortia selected to execute Canada's superclusters. Contribution agreements between the Government of Canada and all five Superclusters have been signed as of December 2018, and the superclusters are currently finalizing their five-year strategies, with project funding expected to begin before the end of the fiscal year (31 March 2019). 332.   Now for a bit of a geography lesson, from West to East in Canada, the superclusters are:  The Digital Technology Supercluster (based in British Columbia, with a key focus on technologies such as augmented reality; cloud computing and machine learning; data collection and analytics; and quantum computing);  The Protein Industries Supercluster (based in Canada's Prairie provinces, this supercluster will use plant genomics and novel processing technologies to increase the value of key Canadian crops, such as canola, wheat and pulses, as well as plant-based meat alternatives and new food products);  The Advanced Manufacturing Supercluster (based in Ontario, this supercluster is focused on building next-generation manufacturing capabilities, for instance, through the development of technologies like advanced robotics and 3D printing);  The SCALE.AI Supercluster (based in the Québec-Windsor corridor, this supercluster focuses on artificial intelligence and robotics, with a view to helping Canadian SMEs scale up and become a globally competitive export leader), and  The Ocean Supercluster (based in Atlantic Canada, this supercluster focuses on industries like marine renewable energy, fisheries, aquaculture, oil and gas, shipbuilding, and transportation, through the development of technologies such as digital sensors and monitoring, autonomous marine vehicles, energy generation, and marine biotechnology and engineering technologies). 333.   Together, these five superclusters represent more than 450 businesses, 60 academic institutions, and 180 partners in Canada's five key regions. 334.   Under Innovation Supercluster Initiative, funding is provided to industry-led consortia (which include large firms, as well as SMEs, and other organizations such as academic and research institutions). Under these arrangements, funding is provided to Entities with strategic plans to: build a shared competitive advantage for their cluster and attract research, investment, and talent; increase business expenditures on R&D and advance business led-innovation and technology leadership; generate new companies and commercialize new products, processes and services; and foster a critical mass of growth-oriented firms and strengthen public-private-academic collaboration. 335.   These strategic plans are built on a shared private sector commitment, demonstrated through matched, dollar-for-dollar industry funding, to leverage strengths, address gaps, and bring innovation ecosystem players together to work more strategically. In doing so, it is expected that superclusters will engage in collaborative projects and activities that advance their respective goals, and develop innovative new technologies that address ecosystem gaps. 336.   As part of its strategic plan, each Entity also submits an IP Strategy, which sets out its role in achieving programme objectives through IP-related activities. In particular, each Entity's IP strategy sets out how protection for Entity-supported IP will be obtained, how rights will be owned and managed, and by whom. This also includes how background IP will be treated; if and how nonEntitysupported IP will be acquired; and how royalties on Entity-supported IP will be managed. The IP Strategy also sets out how the IP ownership and management structures furthers each Entity's objectives. 337.   In addition, the IP Strategy sets out the policies for Members' access to Entity-supported IP, and how Members will be supported and mentored in respect of their IP needs. One of the key objectives in this regard is to provide that Entities proactively engage their Members and provide access to independent expertise and mentorship concerning IP-related issues, particularly in respect of start-ups and SMEs. This includes assistance with IP development, registration, acquisition, management, ownership, royalties, and assertion of legal rights. 338.   In developing the Innovation Superclusters Initiative, the five superclusters are not only expected to contribute to economic growth in Canada, but also represent strong links in global value chains, which deliver high-quality Canadian products and solutions. Multinational enterprises that are incorporated and active in Canada are eligible to collaborate and partner with existing supercluster organizations, with a view to accessing Canadian innovation and technical expertise, with a number of global firms already involved. 339.   With that in mind, we would be pleased to provide further information regarding the Innovation Superclusters Initiative upon request, as well as by directing questions to our experts at Canada's Department of Innovation, Science and Economic Development. 340.   To conclude, Canada would like to once again thank Members for sharing their national experiences in respect of public-private collaborations on innovation with TRIPS Council, and for the opportunity to present an overview of this initiative.

The Council took note of the statements made.
34.   The Chair said that the item had been put on the agenda at the request of Australia; Canada, Chile; the European Union; Hong Kong, China; Japan; the Republic of Korea; Singapore; Switzerland; Chinese Taipei; and the United States of America. It covered two aspects of the broader topic of IP and innovation:
a. "The societal value of IP in the New Economy", a topic that the Council had discussed at its meetings last year. A relevant communication has been submitted to facilitate discussion (IP/C/W/650); and
b. "Public-Private Collaborations in Innovation", a theme proposed by the co-sponsors for 2019. A relevant communication had been submitted to facilitate discussion (IP/C/W/652 and Add.1).
35.   The representatives of the United States of America; Singapore; Australia; Switzerland; New Zealand; Chinese Taipei; Chile; South Africa; Hong Kong; China; Canada; Japan; Mexico; the European Union; the Republic of Korea; Brazil; China; India and the Dominican Republic took the floor.
36.   The Council took note of the statements made.
IP/C/M/91, IP/C/M/91/Add.1, IP/C/M/91/Corr.1

8 The PowerPoint presentation is available in Room Document RD/IP/32.