Goodyear says feds' top priority is economy, boosting innovation Science Minister Gary Goodyear says the federal government knows Canada is No. 1 in many areas, but not in competitiveness and has made it a priority to reverse the trend. By THE HILL TIMES Published November 16, 2009

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The federal government is trying to stop Canada's innovation decline through its science and technology strategy and by investing more than $5-billion in new S&T initiatives, says Science and Technology Minister of State Gary Goodyear (Cambridge, Ont.) in an email interview with The Hill Times for this week's "Innovation Policy Briefing."

You were at the 2009 Canadian Science Policy Conference (CPSC) conference in Toronto (Oct. 28-30). How did it go and what was your main message?

"The conference was an overwhelming success. It brought together scientists, researchers and policy-makers from across Canada and gave me, as minister, another opportunity to exchange ideas with those who work on the front lines of research in our country. I heard their ideas on how we can continue to build on Canada's rich history of discovery and how we can support researchers as they bring their innovations from the lab to the marketplace so that Canadians and people around the world can benefit. My main message was two-fold.

"First, it was to acknowledge that since Confederation, science has been important to Canada and that we've contributed to the world through science—from Banting's discovery of insulin, Abraham Gesner's discovery of kerosene as a precursor to the modern petroleum industry, to Research in Motion's current smart phone expertise with the BlackBerry. Secondly, I wanted to make the point that excellence in science and technology is something from which we can't divert our eyes. Since the inception of our federal S&T strategy, Mobilizing Science and Technology to Canada's Advantage, in 2007, the federal government has made substantial investments in science and technology across the country, most recently investing over $5-billion through Canada's Economic Action Plan."

What was the most important thing you learned during your participation at the CSPC?

"What I saw and heard was that researchers are extremely proud of our country's success in bringing new ideas to market that have helped make Canada a prosperous country and in making scientific discoveries that have changed the lives of people all over the world.

They are also very excited for the future of research. Canada has become a magnet for international research talent such as renowned physicist Stephen Hawking, who will be visiting the Perimeter Institute in Waterloo as a distinguished research chair. We have become very good at developing and holding onto world-class scientists here at home.

"We are also seeing a lot more partnerships between scientists based at universities and colleges with the private sector so that they can commercialize their discoveries. Researchers want governments at all levels to be a partner with them and to continue to support this success. I was very encouraged to hear that and I am pleased that our government has made supporting research such a high priority."

What's your No. 1 priority as the country's leading political figure on innovation?

"Our government's priority and Canadians' No. 1 priority is the economy. We support science, discovery, research, technology and innovation at all levels because we understand that they create jobs, strengthen the economy and they give Canadians a better quality of life. We want to foster an environment where innovation will increasingly help drive the Canadian economy and improve our quality of life. We are also continuing to promote science and technology as important and exciting fields for our youth to pursue in education. We stated these commitments in our 2007 S&T Strategy and continue to focus on them.

"A strong S&T culture will encourage the next generation of Canadians to pursue knowledge-based careers and business opportunities, and enable us to make contributions to the world in such areas as environmental technologies, health and life sciences, natural resources and energy, and information and communications.

"Some examples of things we've done recently to encourage youth in S&T and to foster an innovative culture, include: in budget 2007, the creation of the Industrial Research and Development Internship program to match graduate students and post-doctoral fellows with research internships in private sector organizations; increased support for scholarships in science and engineering; and the introduction of Networks of Centers of Excellence and Centers of Excellence for Research and Commercialization;

in budget 2008, supporting the Vanier Graduate Scholarships Program and Canada Research Chairs, and the Canada Gairdner Awards in medical research, to attract and retain the world's very best minds and have world class doctoral students come to Canada; in the 2009 Economic Action Plan, we introduced the $2 -billion Knowledge Infrastructure Program to improve the infrastructure at Canadian post secondary educational institutions and funded key organizations such as the Canada Foundation for Innovation and the Industrial Research Assistance Program.

"So you can see that our investments in science and technology are multi-year and very strategic. They include buildings, equipment and people to do the worlds leading research. Our plan is for now and for the future."

What are the government's plans and vision in innovation strategy and investments?

"This government recognizes the role science and technology plays in providing solutions to our economic, social and environmental challenges. That is why the Government of Canada is well advanced in implementing the 2007 Science and Technology Strategy, to continue building entrepreneurial, knowledge and people advantages that will ensure Canada has a sustainable national competitive advantage based on S&T. Budget 2009, Canada's Economic Action Plan, provided over $5-billion in new S&T investments, one of the most substantial budget investments in S&T in Canadian history. This builds over $2-billion in new S&T funding in the previous three budgets, budgets 2006, 2007, and 2008.

"The Action Plan, with a strong emphasis on measures that promote economic stimulus, made new investments in university and college research infrastructure, increased the number of graduate scholarships and included new support to business innovation.

"The Action Plan provided new funding of up to $2-billion over two years to support deferred maintenance and repair projects at universities and colleges. This initiative is providing substantial economic stimulus across Canada while enhancing the long-term research capacity of these institutions. In addition, the Action Plan allocated $750-million to the Canada Foundation for Innovation (CFI) to build leading-edge research infrastructure, and $50-million for the world-class Institute for Quantum Computing, at the University of Waterloo.

"Our research granting councils received an increase of $87.5-million over three years to expand the Canada Graduate Scholarships—enough funding to support an additional 500 doctoral scholarships and 1,000 master's scholarships per year. The Natural Sciences and Engineering Research Council received $3.5-million over two years for graduate internships in science and business through the Industrial Research and Development Internship program. In addition, $200-million over two years was invested in the National Research Council's Industrial Research Assistance Program to further stimulate business innovation and technologies to ensure Canadian firms are leading innovators. Our government's record to date clearly indicates our continuing commitment to S&T."

What is the government doing to ensure the best and brightest remain in Canada?

"Canada has a wealth of talent; however, there is intense competition for the skilled workers that will drive our economy in the future. That is why the government is working to attract and retain the skilled workers we need, by making the necessary investments to position Canada as their location of choice. To create a world-class research environment that will attract top researchers, we have made major investments in the granting councils and university research and development over the past three years, putting Canada first in the G7 in terms of R&D expenditures in the higher-education sector as a percentage of GDP.

"We have also put in place programs to both attract and retain the researchers of tomorrow. On April 23, 2009, we announced the winners of Phase I of the inaugural competition for the Canada Excellence Research Chairs program.

"This program will award up to 20 world-class researchers, and their research teams, with up to $10-million over seven years to establish ambitious research programs in Canadian universities.

"Moreover, last April, we announced the first group of 166 Vanier Canada Graduate Scholarship, Canada's most important, prestigious, internationally-competitive, and sought-after scholarships, to attract and retain the best doctoral students for Canadian universities. Each winner will receive up to $50,000 per year for up to three years.

"This government knows that attracting, training and retaining the best and brightest means we need a world-class research environment. In the past few budgets we have invested in the Canada Foundation for Innovation and the Knowledge Infrastructure Program to give our researchers the tools they need to compete against the world's best."

Is Canada actively courting, developing and retaining flagship innovators?

"Through the Strategic Aerospace and Defence Initiative we have announced repayable investments totalling more than $424-million in 12 innovative R&D projects across the country in the aerospace, defence, space and security industries, leveraging an additional $790-million in private sector R&D investments.

"Budget 2009 provided $200-million over two years to the National Research Council's Industrial Research Assistance Program to temporarily expand its initiatives for small and medium-sized enterprises: $170-million over two years for contributions to companies and $30-million over two years to help companies hire 1,000 new post-secondary graduates in business and science under its Youth Employment Program.

"We are providing tax relief for business that will total more than $7-billion in 2009-2010, and have committed $75-million to the Business Development Bank of Canada for a new privately run venture capital fund aimed at later-stage Canadian technology firms. In addition, the government is supporting innovators through programs to strengthen partnerships between the private and public sectors to help bring Canadian research strengths to bear on market-driven challenges and opportunities. Examples of these partnerships include $11-million for the Business-Led Networks of Centres of Excellence; $350-million for the Centres of Excellence in Commercialization and Research program; and $48-million to support the College and Community Innovation Program. This is a substantial investment to put in place all the necessary pieces for industry and others to innovate and create."

What is the government doing to help stop Canada's innovation decline?

"Canada's long-term economic competitiveness depends on ideas, innovation and inventiveness. To encourage and support innovation in Canada, the Prime Minister launched in 2007 the Science and Technology Strategy.

"The government is implementing the S&T Strategy to cultivate three distinct advantages in Canada: an entrepreneurial advantage that encourages firms to be innovators; a knowledge advantage that keeps Canadians at the forefront of research and discovery; and a people advantage that helps Canadians acquire the skills they need to lead in the knowledge economy.

"Through Canada's Economic Action Plan, the government has provided action by investing more than $5-billion in new S&T initiatives. This builds on investments of over $2-billion in the previous three budgets.

"These investments are helping develop the best-educated, most skilled workforce in the world. Canada's strengths in the long-term are reflected in the world-class knowledge and abilities of its workforce.

"Furthermore, our government charged the Council of Canadian Academies with looking at this issue. The CCA issued its report in June 2009 entitled, 'Innovation and Business Strategy: Why Canada Falls Short?' My officials are reviewing and analysing the findings and conclusions of this report to identify S&T policy implications and seize related opportunities as we move forward.

"While Canada is No. 1 in many areas, we are not No. 1 in competitiveness. Our government has identified this subject as a priority on which to focus. We are confident that we are on track to reverse this trend."

Is the government investing enough in research councils?

"The Government of Canada recognizes that investments in science and technology are key to fostering the innovation, talent, and ideas that enable modern economies to improve their competitiveness and productivity. These investments are a central component of our ongoing efforts to address Canada's economic and social challenges. Federal spending on S&T surpassed an historic $10-billion in 2007-2008, including $2.7-billion in spending on higher-education research and development.

"As a proportion of gross domestic product, Canada's higher-education sector performs more R&D than any other G-7 country.

The research granting councils are a key element of our government's Science and Technology Strategy. That is why we've increased our investments in the granting councils by over 20 per cent in the last three years. These increases are cumulative and represent ongoing, permanent support for the councils.

"Recent federal budgets have also invested in a number of other organizations and programs that are benefiting Canada's higher-education sector. These include Genome Canada, the Canada Foundation for Innovation, the Institute of Quantum Computing, and the major, $2-billion Knowledge Infrastructure Program, which is supporting infrastructure renewal projects at Canadian universities and colleges."

What innovation investments has the government taken to invest in research and development to improve the lives of Canadians?

"R&D is fundamental to strengthen our long-term competitiveness and improve our quality of life. Some examples of our recent R&D investments and activities include:

$250-million over five years to support strategic, large-scale research and development projects in the automotive sector to develop innovative, greener and more fuel-efficient vehicles;

$200-million over two years to the National Research Council's Industrial Research Assistance Program to increase support for business innovation and technologies;

$225-million to develop and implement a strategy to extend and improve broadband coverage;

$80-million to NRCan's Transformative Technologies Program (delivered by FPInnovations) for the development of emerging and breakthrough technologies related to the forestry industry; and; $110-million to the Canadian Space Agency to spur development of new technologies and space robotics.

"In terms of encouraging greater investment in new technologies, the government is working to achieve the lowest tax rate in the G7 on new business investment; provided $3.7-billion in tax assistance to Canadian business for research and development that will lead to new technologies and innovations; and extend the accelerated write-down of the Capital Cost Allowance to enable further investments by the private sector in productivity enhancing machinery and equipment. Again we see the connectivity and strategic aspects of our goal of strengthening the economy."

The federal government's "state of the nation report" on Canada's science, technology and innovation, released in May on how the country is doing in world-leading research and development, says Canada could do better. What's the problem? Why isn't Canada doing better? Why hasn't Canada moved forward?

"The Science, Technology and Innovation Council's State of the Nation 2008 report states that although Canada has made progress in the area of innovation over the past few years, other countries are improving faster and Canada remains a mid-level performer amongst the countries included in the council's study.

"The report identifies several areas where collective actions would strengthen performance. The report noted a need to focus on science, technology and innovation in sub-priority areas announced by the minister of Industry in 2008, based on the council's advice, to accelerate development in areas where Canada should be a global leader. It also indicated steps were needed to markedly enhance business R&D investment levels and that efforts need to be renewed to better educate and cultivate the highly skilled people Canada needs to thrive in today's global economy.

"Furthermore, the report outlined that Canada should encourage, recognize, and reward the science and business innovators of tomorrow as well as aggressively pursue strategic international science, technology and innovation partnerships to advance Canadian interests.

"It is important to note that no one sector is responsible for performance or can achieve results alone. Ambitious outcomes require a collective effort by Canadian business, universities, colleges, non-profit institutions, communities and governments at all levels. With all sectors working together we can become a world innovation leader, increasing our standard of living and improving the quality of life of all Canadians. I mentioned this in my speech at the forum to point out that we must continue to innovate and work with partners to maintain our overall competitiveness."

Canada received a C+ measured against other international competitors. Why is that?

"Due to the large number and variety of indicators reviewed, the Science, Technology and Innovation Council's State of the Nation 2008 report does not provide one single ranking of where Canada stands globally. But it is clear that Canada does some things well and lags in other areas, putting us overall in the middle of the pack of the 30 OECD countries. For example, Canada has consistently produced high-quality research, and young Canadians continue to excel in science, math, and reading compared to their international counterparts. That being said, Canada must improve in collaboration between private, higher-education and government sectors while also increasing business R&D investment levels.

"The State of the Nation 2008 report was the Science, Technology and Innovation Council's first public report. The council will be tracking performance and expects to issue a report on the state of Canada's science, technology and innovation system every two years.

"In my entire term as minister of State for Science and Technology, I have been encouraging greater collaboration between universities, colleges and industry. Our Industrial Research Assistance Program and our industrial internships are part of our plan to assist in this area."

Heather Munroe-Blum, principal and vice-chancellor of McGill University, says in The Mark News and this week's issue of The Hill Times, that science, technology and innovation, Canada lags behind much of the developed world and we must start placing good policy above partisan politics. What do you think of that?

"We have the federal S&T Strategy that provides a long-term plan to help guide our future S&T investments. In addition, the Government of Canada is also active in getting the very best independent, expert assessments of the science underlying pressing issues through the Council of Canadian Academies.

"The CCA's June 2009 report, Innovation and Business Strategy: Why Canada Falls Short remarks that if Canada is to remain competitive on the world business stage, we—in particular our businesses—must become more productive and more innovative by using S&T as a competitive business strategy. The government welcomes this advice on areas where Canada can improve its S&T performance and we look forward to continuing this dialogue with S&T stakeholders to ensure Canada can achieve world class excellence in science and technology.

"However, Canada has excelled in some areas of science, technology and innovation. No country in the G-7, including the United States, is better at supporting basic, discovery-oriented research at universities than Canada, as a percentage of GDP. This bodes well for our future prosperity and is a tremendous platform from which to address business innovation issues.

"I have had many splendid and productive conversations with Dr. Munroe-Blum and am pleased that she is supportive our Knowledge Infrastructure Program and our approach to science and technology. Her input and that of other stakeholders is very important to our government as we move ahead with our Science and Technology Strategy."

She also says what's missing is a national commitment to depoliticize innovation, research and scholarship and says "no other modern jurisdiction subjects its development of sustained and effective investment in research and scholarship to the vicissitudes of politics and government transition that Canada and its provinces seem to thrive on. This brings about shuttering uncertainty." How do you respond?

"In 2007, the Prime Minister released the federal S&T Strategy, which sets out the government's multi-faceted, long-term plan to achieve our vision of building a national competitive advantage based on S&T. As outlined in the S&T Strategy Progress Report, that I released on June 5, 2009, considerable progress has been made in developing the three advantages envisioned by the Strategy: an Entrepreneurial Advantage, a Knowledge Advantage, and a People Advantage. A succession of recent federal budgets have made major investments in S&T to deliver on the Strategy's objectives and commitments, including: substantial funding for the Canada Foundation for Innovation, Genome Canada, and other organizations; significant and ongoing increases in funding for the federal granting councils; new initiatives to support public-private research partnerships; expanded funding for student scholarships and industrial internships; new initiatives to attract and retain top research talent; and major investments in infrastructure renewal at Canadian universities and colleges."

Ms. Blum also says "no community, institution, corporation, or nation can thrive in this day and age without a clear commitment to harness benefits through strategic collaboration, to benchmark performance at national and international levels and commit to lead by world standards in key areas of education, science, technology, and innovation. In these and other ways, the federal government is and has been of considerable help, but, as the report indicates, it is really time to raise our game." How do you respond to this?

"It's an indisputable assertion that for Canada to move forward, government, universities and the private sector need to work together. We simply could not hope to leverage S&T to enhance our collective quality of life by having these three groups working at cross purposes.

"Let's recognize however that while we have some work to do to become a more innovative country and compete in a changing world economy, we possess already the excellent basis of a world-class research infrastructure into which we're reinvesting through the current Economic Action Plan, and an economy that looks like we'll make it through this current recession in better shape than other countries. That's not to downplay challenges our citizens and businesses have had and continue to have; it is to say though that compared to other countries, we are building from positions of relative strength. I think our 2007 S&T Strategy has served us well thus far, and I can only reiterate that the government will continue to regard science and technology as fields for which we must foster an innovative environment, and work with our educational and private sector stakeholders to make stronger. Everyone must work together."

Paul Dufuour, a policy expert, says in The Mark News and in this week's Hill Times that Canada needs a branding makeover to better position itself in a global, knowledge-based economy and put science at the forefront. Do you agree?

"I believe Canada has done very well on the international stage. Successes such as the Canadarm, and more recently the BlackBerry, point to widely recognized Canadian leadership in a variety of fields. Can we do better as a nation? Of course we can. As the Science, Technology, and Innovation Council (STIC) stated in its 2008 State of the nation report, 'No country leads in everything.'

"And this is precisely why the government identified four key priorities in the federal S&T Strategy—ICT, energy; environment; and health—to provide a national focus of resources and efforts. In support of this, STIC further identified 16 sub-priorities.

"While the State of the Nation 2008 does discuss several areas where Canada could improve its international standing relating to science, technology, and innovation, the report also highlights several areas where Canada is a leader on the world stage. For example, Canada has a strong research base and Canadian university research is well-cited and published in a number of areas. These include earth and space sciences, clinical medicine, chemistry and biomedical research among others.

"The STIC report also shows that Canada's funding for R&D and higher education ranks near the top while students preparing for further education, Canadian 15-year-olds, excel in science, math and reading compared to their global counterparts. Canada also has many innovative small- and medium-sized enterprises, some who started as university spin-offs, and some flagship companies like RIM and CAE who have achieved global success.

"Furthermore, The London Times' Higher Education QS World Universities Rankings have shown consistent performance by Canada's top 5 research intensive universities and in fact two of these institutions improving in ranking each of the past several years. So indeed our reputation continues to grow, and continues to be strengthened on a number of important fronts."

He says Canada's track record in using science and innovation assets to help brand its global image has at times been uneven and says science can be influential in shaping foreign aid, national security, emergency preparedness, global health, and enhancing bilateral and multilateral relations. What do you think?

"The key message in this question, in my view, is the absolute importance of science, technology, and innovation to a nation and to the world community. S&T are in many respects omnipresent in our lives. Building from this, S&T policy holds just as much importance as fiscal and macroeconomic policies. And this is why we have developed a vision for S&T in Canada, and why we have stayed the course through our federal S&T Strategy. The granting councils, National Research Council, Canada Foundation for Innovation and other agencies also have a key role to play."

Kathleen Bloom, president and CEO, Knowledge Impact Strategies Consulting Ltd., says in The Mark News and in The Hill Times that the key to robust innovation in Canada lies in effective matchmaking between scientists and stakeholders. What do you think?

"One of the key underlying principles of the federal S&T Strategy is the absolute importance of strategic partnerships. That is why the government's Science and Technology Strategy is supporting these collaborations through a variety of programs to strengthen partnerships between the private and public sectors. For example, in budget 2007, $11-million was allocated to strengthen public-private partnerships through the creation of five new collaborative Business-Led Networks of Centres of Excellence, led by the private sector and focused on specific business research needs. Partnerships were further enhanced with $350-million for the creation of the Centres of Excellence for Commercialization and Research program, which to date has funded seventeen world-class centres to promote the commercialization of technologies, products and services.

"As well, $48-million has been allocated to support the College and Community Innovation Program. These investments increase the effective and innovative collaboration between Canada's S&T and business communities. Our government's record to date clearly indicates our continuing commitment to building these partnerships."

The Hill Times