Canadian technology and R&D; infrastructure support innovation
Canada has built a strong network between industry and universities to foster research and development. In addition, Canada offers the most favourable tax treatment for R&D; among the G7 nations. For the medical devices industry, about 90 percent of the total industry R&D; spending was financed solely by the firms themselves, while about 9 percent was financed by government loans, grants and contributions.
The strengths of associated Canadian industries advance the competitive position of medical device companies in Canada.
Medical device manufacturing requires the application of diverse biomedical and engineering disciplines. Medical device companies operating in Canada benefit from the strengths of associated Canadian industries such as:
- Biotechnology
- Advanced materials
- Microelectronics
- Photonics
- Robotics
- Software and informatics
- Telecommunications
In addition, the industry has access to a world-class research base in Canadian universities, research institutes, and hospitals, as well as to excellent clinical trial capabilities.
- The Canadian medical device industry invested approximately $126 million in research and development in 2000, with the medical imaging/radiotherapy segment being the most R&D; intensive ( see Table 1).
- Nearly 10 per cent of Canadian medical device firms are spin-offs from universities, laboratories, or other firms.
- Strong partnership: A number of medical device firms work in collaboration with other organisations, including universities, hospitals, government departments, and other smaller or larger firms ( see Table 2).
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Table 1: Total Medical Device Industry R&D; Spending by Sector in 1999 and 2002 ($CDN Millions)
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Sector
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1999
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2002
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Medical Imaging / Radio Therapy (MI)
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19.3
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26.7
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Medical Surgical (MS)
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7.7
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9.1
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Other Hosptial Equipment / Medical Electronic (HEQ)
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12.5
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15.2
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Assistive Devices / Rehab (ADS)
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7.4
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8.5
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Diagnostic (DIA)
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2.8
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3.3
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Implants (IMP)
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5.7
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5.4
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Other
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13.0
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15.2
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Source: Health Canada
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Table 2: Activities in which medical devices firms have collobarative or cooperative arrangements with different partners (2000 )
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Activity
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%
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Prototype Development / Production Manufacturing
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27
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Research and Development / Access to specialized inputs
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25
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Access knowledge / skills / critical expertise
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20
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Access Markets / Distribution Channels
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14
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Intellectual Property Protection / Access to Capital / other
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7
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Regulatory Affairs
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7
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Source: Health Canada
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