AbstractCanada has only recently recognized the economic importance of cooperation between industry, universities and government in developing new technologies. Currently Canada's industrial structure is weak, the universities are in financial crisis and government support for R&D has lagged behind other countries in some areas.As a country with a well-educated population, excellent universities and an extensive network of government laboratories, Canada has the opportunity to revitalize its economy through technological innovation — she is already a world leader in some applications such as telecommunications. If industry, universities and government can succeed in strengthening and broadening their cooperative efforts in technology and marketing, Canada could maintain and expand her international competitiveness.