The report, released Monday by the Institute for Research on Public Policy (IRPP), looks at Canada’s Innovation and Skills Plan. The initiative was created to amend the country’s main innovation issues: shrinking productivity growth, an expanding R&D investment gap and the need to use innovation to improve society. According to the report, innovation policy cannot be successful without addressing demand—for which the study has three recommendations: increase the public sector’s ability to absorb innovation; call for innovative solutions to societal issues and encourage consumers and institutions to purchase them; and foster user-driven innovation that responds to market needs on both the production and consumption sides. (The Logic)

Talking point: The report was authored by German researcher Jakob Edler, whose research focuses on demand-driven innovation policy. His main argument is that, while Canada has been successful in developing technology, focusing on R&D alone isn’t enough. From the report: “If businesses do not use the latest technologies they fall behind in productivity; if businesses do not sense the market is ready to absorb their innovations, they are reluctant to innovate.”