by Mary Scianna
Innovation. Productivity. Competitive Edge. These three concepts have become somewhat of a mantra in manufacturing. Some may roll their eyes when they hear or read these words for the umpteenth time, but manufacturers cannot ignore them.
If manufacturing in Canada is to survive, manufacturers must embrace the right technologies to produce cost-competitive high quality goods.
Innovation investment among small and medium sized enterprises (SMEs) in Canada is not high. Canadian manufacturers are not typically known as early adopters of new technologies. To be fair, it is difficult to invest in innovative technologies, be it machinery, software or machining and fabricating processes, when financial resources are tight and when a return on investment may be a long way off. Despite the obstacles, some are finding ways to invest in innovative technologies. In our “Manufacturing On The Move” feature (pages 49-64) we profile four companies that stand out for their approaches to manufacturing competitiveness.
One incentive to encourage innovation is to rework tax credits and reward companies taking R&D innovation to market, suggests a report by C.D. Howe Institute.
“Canada should adopt a new incentive model, known as an innovation or patent box, to lower tax rates that would encourage businesses to develop, apply for and hold patents in Canada,” note the authors of “Improving the Tax Treatment of Intellectual Property Income in Canada.”
In other words, investment in research and development is not enough; businesses must take that R&D and commercialize it.
“Canada has put a lot of emphasis on research and not nearly enough on product development, and commercialization is where you get the biggest economic benefit from R&D,” says Jayson Myers, president and CEO of Canadian Manufacturers & Exporters, and chair of the Canadian Manufacturing Coalition, a coalition of more than 40 industry associations that speaks as one voice on issues facing Canada’s manufacturing sector.
Improving productivity through innovative strategies will help Canadian companies compete better against other nations such as Brazil, China and India, cited in the C.D. Howe report as having more patent registrations for new products than Canada.
It is one reason why Shop Metalworking Technology Magazine, in partnership with industry suppliers, Mazak Canada, Mitutoyo Canada, Sandvik Coromant and Enable Capital, has introduced The Innovation Challenge. The contest is designed to help a manufacturer improve productivity through innovative ideas and technology with support from industry suppliers. To enter The Innovation Challenge contest, submit your entry online at www.shopmtevent.ca.
