One of Canada’s longstanding digital and economic policy concerns has involved innovation, with fears that the Canadian economy is failing to keep pace with other, more innovative economies. Some point to intellectual property as a critical part of policy equation, arguing that stronger IP laws would help incentivize greater innovation. Economists Nancy Gallini and Aidan Hollis recently released an interesting report for the Institute for Research on Public Policy examining the role of patents and patent policy in Canadian innovators’ decisions to sell their IP rather than continue to develop it in Canada, and the incentives driving this decision. Professor Hollis joins the podcast this week to discuss the report, its link to innovation policy, and what the government could consider to address ongoing concerns.
Post Tagged with: "innovation"
The LawBytes Podcast, Episode 33: “Canadian Patenting is Not Going to Drive Anything” – Aidan Hollis on New Research on Patents and Innovation
The release of Budget 2019 yesterday again placed the government’s innovation strategy in the spotlight as the government emphasized its significant spending record, including $950 million for the superclusters, $4 billion for science research, $795 million in 31 strategic innovation fund agreements and $2.3 billion for clean technology support. The investments were highlighted in a recently released an innovation scorecard, Building a Nation of Innovators, which takes stock of the government’s efforts over the past three years. My new CIGI policy brief argues that while the benefits from this spending will take years to realize, increased investments in strategic sectors are the easy part of innovation policy.
The NAFTA renegotiation gets underway today, days after Canadian Foreign Minister Chrystia Freeland outlined Canada’s NAFTA negotiating objectives. As her first core objective, Freeland identified modernizing NAFTA so that “all sectors of our economy can reap the full benefits of the digital revolution.” Those comments suggest that the IP chapter and a new e-commerce chapter will be top negotiating priorities. I’ll post on the e-commerce chapter tomorrow, but this post highlights my recent CIGI essay on how Canada can use the NAFTA intellectual property chapter to help level the innovation playing field.
The Centre for International Governance Innovation, the well-respected independent think tank based in Waterloo, has posted the first part of an exceptional new series on innovation. From the introduction from Rohinton Medhora to several pieces on innovation and trade (Kahin, Haggart, Ciuriak, and Van Harten), the series promises to provide politicians and policy makers with valuable insights to support the government’s focus on innovation. I was delighted to participate in the project with a piece titled How Trolls are Stifling Innovators, Gamers and Netflix Junkies.
The contribution, which is accompanied by a video on the impact of copyright and fair use on innovation, identifies several areas of copyright reform that are closely linked to innovation policy. These include copyright flexibilities such as fair use, the need to prevent IP and copyright misuse, and the harms associated with restrictive digital lock rules. The article starts by noting that the Supreme Court of Canada highlighted the link between copyright and innovation in the 2002 Theberge decision:
Yesterday’s federal budget included plans to amend the law to ensure that GST/HST is applicable to ride sharing services such as Uber. The budget states that the government will:
Amend the definition of a taxi business under the Excise Tax Act to level the playing field and ensure that ride-sharing businesses are subject to the same GST/HST rules as taxis.
This change should not be particularly controversial. No one likes paying taxes, but equal application of sales taxes ensures appropriate revenue collection and a level-playing field for all businesses in the sector. As I noted in an earlier post, I expect that this is a first step toward extending requirements to collect and remit sales taxes on foreign digital services such as Netflix and Spotify. Applying sales taxes to all foreign digital services is complicated – there needs to be thresholds implemented to ensure that administrative costs do not outweigh revenues collected – but Uber is well established in Canada with many local jurisdictions establishing a regulatory framework for the service.