I’m in beautiful Prince Edward Islands (PEI) today. This is a smaller province of Canada that offers much more than tourism and seafood. This is a place that has the potential to become a player in knowledge based industries. More to come on PEI later.

Yesterday I heard a story on CBC about a report from a bank forecasting decades of slow growth for Canada. According to the network’s commentators, the report suggested that Canadians should make investments abroad because the future is with other emerging countries.

Later in the day I read another headline about how venture capital investment is the is has been in 14 years. For a country like Canada, with its excellent infrastructure for innovation, less than $1 billion of venture capital investment is extremely low. Since the industrial revolution, OECD countries have excelled in left brain education. Now all emerging countries have replicated this success. The shear number of people in emerging countries will allow them to scale their economies on the back of left brain oriented business functions. Countries like Canada should focus on right brain education and support creative talent. Today, innovation is not restricted to only developing new technology and products, but also innovating new business models.

The government can provide two resources to accelerate innovation. One is to provide funds to the venture capital industry, which basically means become funds of the fund and let the private sector focus on funding new ventures. Just imagine, if part of the stimulus money invested in the last year went to funding new ventures, thousands of new companies could have sprung up of which a few might become the next Google or Amazons.

The second would be to establish Canada as a magnet for entrepreneurs from countries where the infrastructure, market access, and ecosystem do not exist. Such a program will only make Canada a hotbed for innovation, but will also create the right environment for the next generation of Canadians to invest their future in right brain oriented education and creative talent.