Canada’s innovation edge held back by fragmented IP ownership\” />
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Canada is inventing in the right places, but struggling to turn those ideas into market advantage.
A new Conference Board of Canada report warns that structural gaps in intellectual property ownership are holding back the country’s innovation edge.
The study looked at patent activity across 35 technology areas and compared Canada’s position to global peers. Patents act as markers of where inventive advantage exists, and the results show both promising strengths and serious weaknesses.
“Intellectual property is a key driver of innovation, freedom to operate and economic growth,” says Alain Francq, director of innovation and technology at the Conference Board of Canada.
“Patents provide clues to where we have unique Canadian inventive strengths and protected global advantage. To keep pace with global innovation leaders, we need to create innovation strategies in areas where we are strong and can succeed globally. This report maps out that advantage.”
High-value areas showing global advantage
The report identifies Canada’s strongest areas of specialization as civil engineering, pharmaceuticals, and biotechnology. Here, Canada holds 1.5 times more patents than the global average.
Competitiveness is especially strong in engines and turbines, nanotechnology, and thermal processes, where patent growth between 2012 and 2022 far outpaced the global average.
These signals point to fields where Canadian firms and researchers have the raw ingredients for global advantage. For leaders in these industries, it’s clear that there is already momentum to build on, and aligning strategy with patent strength can sharpen competitiveness.
Why scaling remains a challenge
The study also highlights the risks of a fragmented intellectual property landscape. Patent ownership in Canada is spread thin, with fewer patents per owner among all technology areas.
In addition, fewer firms are holding large patent portfolios. This makes it harder for companies to scale, since fragmented ownership can limit freedom to operate and bring obstacles to commercialization into the mix.
The issue is about what comes next.
Without the ability to consolidate and defend intellectual property, Canadian firms risk losing ground when scaling products globally.
Where opportunity and IP don’t align
While Canada’s priorities are well aligned with strengths in clean technology, life sciences, and resource-based industries, other high-value sectors are out of sync.
The report points to advanced manufacturing, agri-food, and digital technology/AI as areas where Canada has strong market opportunities but weaker patent positioning.
This misalignment represents missed opportunities. For companies operating in these sectors, the insight is to look beyond product development and ask whether patent strategies are keeping pace with business goals.
Why this matters for business leaders
For executives and entrepreneurs, the report reinforces the importance of treating intellectual property not as an afterthought but as part of strategy.
Understanding where Canada’s patent strengths lie can help firms position themselves for partnerships, global competition, and investment. Recognizing gaps can prompt businesses to be more deliberate about building and defending portfolios, particularly in fast-moving fields like AI and advanced manufacturing.
Without action, the Conference Board warns, Canada risks losing further ground in the global innovation economy. The message for business leaders is that IP is a signal of where competitive advantage can be found, and where it may be slipping.
Final shots
Patent data shows where Canadian firms can lean into global advantage, but also where opportunities are being missed.
Fragmented ownership is a critical barrier, suggesting businesses may need to rethink how they build and defend IP.
Leaders should connect innovation priorities with patent strength to avoid falling behind in high-value sectors like AI and advanced manufacturing.
