Innovation Council Calls for Healthcare System to Support Domestic Tech Startups
A prominent innovation advocacy group is urging the Canadian government to leverage the country's publicly funded healthcare system as a strategic platform to nurture and scale homegrown technology companies. The Council of Canadian Innovators (CCI) released a report this week highlighting systemic barriers that prevent domestic innovators from accessing their own market, using the case of an Ottawa-based robotic disinfection unit as a prime example.
The Ray Robot: Canadian Innovation Struggling at Home
The report points to HygenX Ai, an Ottawa startup that has developed "Ray," a robotic unit designed to disinfect operating rooms using high-energy UV light. Standing just over five feet tall and weighing under 100 pounds, Ray can complete disinfection tasks significantly faster than human workers while costing approximately half the price of existing hospital technology that requires manual operation.
Despite this technological advantage, the company has encountered substantial difficulties selling its innovation within Canada. While more than 20 hospitals internationally have adopted Ray technology, only one Canadian facility—Woodstock Hospital in Ontario—has successfully implemented the system. This was achieved through an unconventional procurement approach using outsourced housekeeping services to bypass traditional hospital budgeting processes.
"We've tried, and we're continuing to try in Canada, our own backyard," said Arash Mahin, co-founder and chief executive of HygenX Ai. "They say, OK... let's run a pilot. Great. You see success. You've seen reductions in infections. You've seen reduced turnaround times. Okay, now, how do we budget for this? And it seems like that becomes a roadblock."
Systemic Barriers to Domestic Innovation
The CCI report identifies numerous systemic challenges within Canada's healthcare procurement landscape that hinder domestic technology adoption. These include fragmented purchasing processes across provinces and health authorities, lack of coordinated pathways from pilot programs to full-scale implementation, and budgeting mechanisms that fail to prioritize long-term innovation value.
Patrick Searle, chief executive of CCI, emphasized the need for strategic change in the report. "Where strong domestic solutions exist, governments should prioritize building and scaling them at home," Searle stated. "Our publicly funded healthcare system should function as a platform where Canadian innovators can prove their solutions, scale them nationally and build the credibility to compete globally."
Six Recommendations for Reform
The report outlines six major recommendations to transform healthcare procurement into an innovation catalyst:
- Establish predictable pathways from pilot testing to full-scale implementation
- Improve coordination across provincial and territorial health authorities
- Prioritize procurement decisions that deliver better health outcomes and long-term public value
- Create secure data-sharing frameworks that support innovation while protecting patient privacy
- Develop budgeting mechanisms that recognize the value of innovative technologies
- Adopt a strategic approach similar to defense procurement that prioritizes domestic capabilities
The innovation council argues that Canada should learn from its defense capabilities buildup playbook, where strategic procurement has been used to develop domestic industrial capacity. By applying similar principles to healthcare, the country could create a virtuous cycle where domestic innovators gain validation in their home market before expanding globally.
Mahin noted that while his company has found some success with long-term care facilities and retirement homes in Canada, the broader hospital market remains largely inaccessible despite proven results in American facilities including San Gorgonio Memorial Hospital in California. "Unfortunately, we have not been able to replicate this model with any other hospitals," he acknowledged.
The report comes as Canada continues to grapple with healthcare system challenges while simultaneously seeking to position itself as a leader in technology innovation. The CCI argues that aligning these two priorities could create significant economic and healthcare benefits for the country.
