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2016–17 Estimates—Report on Plans and Priorities

This publication is available online at http://www.ic.gc.ca/eic/site/017.nsf/eng/h_07557.html.

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© Her Majesty the Queen in Right of Canada,
represented by the Minister of Industry, 2016

Cat. No. Iu1-16E-PDF
ISSN 2292-499X

Aussi offert en français sous le titre Rapport sur les plans et les priorités 2016-2017

Table of contents

© Her Majesty the Queen in Right of Canada,
represented by the Minister of Industry, 2016
ISSN 2292-499X

Ministers' Message

As Canada begins a new chapter in 2016–17, creating a culture of innovation is more important than ever in driving economic growth.

The recent name change of our Innovation, Science and Economic Development Portfolio recognizes this, placing a deliberate emphasis both on innovation and scientific discovery, and their equal importance for economic development nationally and throughout all of Canada's diverse regions.

We have promised Canadians a government that will bring real change—in both what we do and how we do it. We will invest in growing our economy, increase transparency and use the best evidence available to inform decision making.

Through the programs of the Innovation, Science and Economic Development Portfolio, we will work to develop and deliver an innovation agenda for Canada that will help improve our productivity performance, grow the economy and enhance our prosperity and well-being.

This 2016-17 Report on Plans and Priorities of Innovation, Science and Economic Development Canada provides information on how the department will support the Government on achieving our agenda in the coming year and we are fully confident that Innovation, Science and Economic Development Canada is prepared to successfully support us and work with our partners inside and outside government to deliver for Canadians. However, given our commitment to more effective reporting, this year's report will be the final submission using the existing reporting framework.

The Prime Minister and the President of the Treasury Board are working to develop new, simplified and more effective reporting processes that will better allow Parliament and Canadians to monitor our Government's progress on delivering real change to Canadians. In the future, Innovation, Science and Economic Development Canada's reports to Parliament will focus more transparently on how we are using our resources to fulfill our commitments and achieve results for Canadians.

These new reporting mechanisms will allow Canadians to more easily follow our Department's progress towards delivering on our priorities, which were outlined in the Prime Minister's mandate letters to us.

It is our pleasure to present the Report on Plans and Priorities for Innovation, Science and Economic Development Canada for 2016–17, which sets out how the department's work will contribute to attaining these shared objectives.

Photo of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

The Honourable
Navdeep Bains

Minister of Innovation, Science and Economic Development
Mandate Letter

Photo of the Honourable Kirsty Duncan, Minister of Science

The Honourable
Kirsty Duncan

Minister of Science
Mandate Letter

Photo of the Honourable Bardish Chagger, Minister of Small Business and Tourism

The Honourable
Bardish Chagger

Minister of Small Business and Tourism
Mandate Letter

Section I: Organizational Expenditure Overview

Organizational Profile

Minister of Innovation, Science and Economic Development:
The Honourable Navdeep Bains, P.C., M.P.

Minister of Science:
The Honourable Kirsty Duncan, P.C., M.P.

Minister of Small Business and Tourism:
The Honourable Bardish Chagger, P.C., M.P.

Institutional Head:
John Knubley

Ministerial portfolio:
Innovation, Science and Economic Development

Year established:
Incorporated in 1892

Main legislative authorities:
Innovation, Science and Economic Development Canada's founding legislation is the Department of Industry Act, S.C. 1995, c.1.

Organizational Context

Raison d'être

On , the Government of Canada announced that the Department of Industry would be known as Department of Innovation, Science and Economic Development Canada. The Department helps Canadian businesses grow, innovate and export so that they can create good quality jobs and wealth for Canadians. The Department works with provinces, territories, municipalities, the post-secondary education system, employers and labour to improve the quality and impact of its programs that support innovation, scientific research and entrepreneurship, in order to build a prosperous and innovative Canada. The Minister of Innovation, Science and Economic Development is responsible for this organization.

Responsibilities

Innovation, Science and Economic Development Canada works with Canadians in all areas of the economy and in all parts of the country to improve conditions for investment, to enhance Canada's innovation performance, and to make Canadian firms more productive and competitive in the knowledge-based economy. The Department works on a broad range of matters related to industry and technology, trade and commerce, science, consumer affairs, corporations and corporate securities, competition and restraint of trade, weights and measures, bankruptcy and insolvency, intellectual property, investment, small business, and tourism.

Strategic Outcomes and Program Alignment Architecture (PAA)

Innovation, Science and Economic Development Canada's Program Alignment Architecture (PAA) is an inventory of all of its programs. The programs are depicted in a logical and hierarchical relationship to each other and to the strategic outcome to which they contribute. The PAA also provides a framework that links financial and non-financial resources and results to each program.

Organizational Priorities

Priority: Develop an Innovation Agenda

Description
Work with stakeholders, governments, and Canadians in developing an Innovation Agenda to create a world-leading culture of innovation that supports Canada's economic, environmental and social goals. This will help large and small businesses become more competitive and successful, contributing to growth, the creation of quality jobs and Canada's long-term transition to a clean economy.

Priority Type
New

Key Supporting Initiatives
Planned Initiatives Start Date End Date Link to Department's Program Alignment Architecture
Engage with a diverse group of stakeholders to generate an inclusive Innovation Agenda that is a shared plan of action for building a sustainable culture of innovation, by providing effective support for Canada's innovative businesses, researchers and entrepreneurs. March 2016 Ongoing
  • Science, Technology and Innovation Capacity
  • Industrial Research and Development Financing
  • Industrial Competitiveness and Capacity
Develop a coordinated approach with Regional Development Agencies to identify and support competitive regional advantages and areas for diversification, including in clean technology and high-growth firms. December 2015 To be determined
  • Northern Ontario Economic Development
  • Industry-Specific Policy and Analysis
Support key sectors in the economy that have the potential to grow, attract investments, and create jobs, including value-added manufacturing and services, platform technologies (e.g., ICTs, clean tech) and tourism. March 2016 To be determined
  • Industrial Competitiveness and Capacity
  • Industrial Research and Development Financing
Develop strategies to attract transformative, long-term investments in the automotive sector to maintain and grow its economic footprint. December 2015 To be determined.
  • Industry-Specific Policy and Analysis
  • Market Access
  • Industrial Research and Development Financing
Support the development and performance of Canada's innovation incubators and accelerators to nurture the next generation of entrepreneurial start-ups and help them grow to scale more quickly. March 2016 To be determined.
  • Small Business, Research, Financing and Services
Support world-class excellence in fundamental research to facilitate new discoveries that lead to business growth, build human capital, and support environmental and social goals for the well-being of Canadians. 2016–17 To be determined.
  • Science, Technology and Innovation Capacity
  • Science and Technology Partnerships

For more information on organizational priorities, see the Ministers' mandate letters on the Prime Minister of Canada's website.

Risk Analysis

Key Risks
Risk Risk Response Strategy Link to Program Alignment Architecture
There is a risk of not meeting the expectations of stakeholders and Canadians, should a broad and inclusive innovation agenda fail to yield tangible results. Develop and implement an inclusive and comprehensive Innovation Agenda for Canada that responds to stakeholders' main issues, ensures dynamic partnerships, provides meaningful support to key economic sectors, targets incubators and accelerators, and focusses on SMEs. Key elements include collaboration with ISED Portfolio partners, and competitive investments in sectors including manufacturing, automotive, and clean technologies.
  • Science, Technology and Innovation Capacity
  • Industrial Research and Development Financing
  • Industrial Competitiveness and Capacity

Innovation, Science and Economic Development Canada's risk environment is shaped by the Department's mandate and objectives, government policies and priorities, as well as broad economic, social and technological trends.

ISED's 2016–17 Corporate Plan includes the Department's Corporate Risk Profile, part of a tailored, integrated approach to addressing risks that may impede the Department's ability to deliver on its mandate. This approach allows the Department to manage risk proactively. It guides employees in implementing a comprehensive integrated risk management regime to ensure key risks pertaining to the Department's policy, regulatory, program, investment and management activities are identified, assessed, mitigated and communicated.

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Planned Expenditures

Budgetary Financial Resources (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
1,297,074,670 1,297,074,670 1,259,460,285 1,216,675,594
Human Resources (Full-Time Equivalents—FTEs)
2016–17 2017–18 2018–19
4,710 4,728 4,747
Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)Note (1)
Strategic Outcomes, Programs and Internal Services 2013–14
Expenditures
2014–15
Expenditures
2015–16
Forecast Spending
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
Strategic Outcome: The Canadian marketplace is efficient and competitive
Marketplace Frameworks and RegulationsNote (2) 51,872,092 50,785,898 53,067,815 66,943,246 66,943,246 73,864,441 63,042,223
Marketplace Competition and Investments 47,114,308 48,628,660 47,681,166 46,563,535 46,563,535 46,563,535 46,563,535
Spectrum, Telecommunications and the Digital EconomyNote (3) 142,157,667 123,580,592 119,388,434 106,285,898 106,285,898 104,512,606 104,439,314
Strategic Outcome Subtotal 241,144,067 222,995,150 220,137,415 219,792,679 219,792,679 224,940,582 214,045,072
Strategic Outcome: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy
Science, Technology and Innovation CapacityNote (4) 210,195,969 313,406,525 311,771,415 342,834,370 342,834,370 322,354,369 381,854,369
Industrial Research and Development FinancingNote (5) 330,580,008 220,998,346 307,534,745 326,898,852 326,898,852 316,601,914 254,630,990
Strategic Outcome Subtotal 540,775,977 534,404,871 619,306,160 669,733,221 669,733,221 638,956,283 636,485,359
Strategic Outcome: Canadian businesses and communities are competitive
Small Business Research, Financing and ServicesNote (6) 85,577,041 91,428,836 93,755,478 97,653,629 97,653,629 86,902,629 83,495,629
Industrial Competitiveness and Capacity 37,132,066 31,303,194 34,314,555 34,316,964 34,316,964 34,316,964 34,316,964
Community Economic DevelopmentNote (7) 72,366,822 83,737,927 166,543,370 142,379,294 142,379,294 140,853,439 114,978,268
Strategic Outcome Subtotal 195,075,929 206,469,957 294,613,403 274,349,887 274,349,887 262,073,033 232,790,862
Internal Services Subtotal 138,479,491 133,544,518 127,921,015 133,198,881 133,198,881 133,490,387 133,354,301
Total 1,115,475,464 1,097,414,496 1,261,977,994 1,297,074,670 1,297,074,670 1,259,460,285 1,216,675,594

Budgetary Planning Summary Explanation

In the tables above, Planned Spending reflects funds already brought into the Department's reference levels as well as funds authorized up to February 1, 2016; it does not reflect future budget decisions. More information will be provided in the 2016–17 Supplementary Estimates, as applicable. Forecast Spending reflects anticipated expenditures at the end of the fiscal year, and Expenditures represent the total authorities used for the fiscal year, as reported in the Public Accounts of Canada.

Strategic Outcome: The Canadian marketplace is efficient and competitive

Strategic Outcome: Advancements in science and technology, knowledge and innovation strengthen the Canadian economy

Strategic Outcome: Canadian businesses and communities are competitive

Further information is available in the Analysis of Programs and Sub-Programs by Strategic Outcome section of this report.

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Alignment of Spending With the Whole-of-Government Framework

Alignment of 2016–17 Planned Spending With the Whole-of-Government Framework (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2016-17
Planned Spending
The Canadian marketplace is efficient and competitive Marketplace Frameworks and Regulation Economic Affairs A fair and secure marketplace 66,943,246
Marketplace Competition and Investments Economic Affairs A fair and secure marketplace 46,563,535
Spectrum, Telecommunications and the Digital Economy Economic Affairs A fair and secure marketplace 106,285,898
Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy Science, Technology and Innovation Capacity Economic Affairs An innovative and knowledge-based economy 342,834,370
Industrial Research and Development Financing Economic Affairs An innovative and knowledge-based economy 326,898,852
Canadian businesses and communities are competitive Small Business Research, Financing and Services Economic Affairs Strong economic growth 97,653,629
Industrial Competitiveness and Capacity Economic Affairs Strong economic growth 34,316,964
Community Economic Development Economic Affairs Strong economic growth 142,379,294
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending
Economic Affairs 1,163,875,788
Social Affairs 0
International Affairs 0
Government Affairs 0

Departmental Spending Trend

Figure 1: Departmental Spending Trend Graph

Bar chart of Departmental Spending Trend (the long description is located below the image)
Description of Figure 1
Departmental Spending Trend
2013–14 2014–15 2015–16 2016–17 2017–18 2018–19
Sunset Programs – Anticipated 0 0 0 7,000,000 7,000,000 7,000,000
Statutory 161,001,195 176,180,055 189,100,307 222,388,605 185,652,234 159,648,457
Voted 954,474,269 921,234,441 1,072,877,687 1,074,686,605 1,073,807,751 1,057,027,137
Total 1,115,475,464 1,097,414,496 1,261,977,994 1,297,075,210 1,259,459,985 1,216,675,594

The increases in Planned Spending beginning in 2015–16 reflect new funding for the Connecting Canadians Program, the Technology Demonstration Program, the Automotive Innovation Program and the Automotive Supplier Innovation Program. The decrease in Planned Spending beginning in 2017–18 reflects the trend in the currently approved funding for the Automotive Innovation Fund as well as for various grants and contributions programs under the Community Economic Development and Science, Technology and Innovation Capacity programs, and the end of temporary funding from royalties to support new investments under the Strategic Aerospace Defence Initiative.

Other changes in spending are explained in the Budgetary Planning Summary Explanation and in Section II of this report.

Estimates by Vote

For information on Innovation, Science and Economic Development Canada's organizational appropriations, consult the 2016–17 Main Estimates.

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome: The Canadian marketplace is efficient and competitive

Innovation, Science and Economic Development Canada fosters competitiveness by developing and administering economic framework policies that promote competition and innovation, support investment and entrepreneurial activity, and instil consumer, investor and business confidence in the marketplace.

Program: Marketplace Frameworks and Regulation

Description

This program regulates and provides oversight over a number of aspects of the Canadian marketplace, including trade measurement, insolvency, corporate governance including federal incorporation, intellectual property, market access and consumer affairs. The program develops and administers framework statutes, regulations, policies and procedures; develops, sets and assures compliance with related regulatory reforms and standards; and consults with a variety of stakeholders and portfolio organizations. Overall, the program benefits Canadian businesses and consumers by ensuring the integrity of the marketplace and providing a competitive environment that contributes to Canada's innovation performance.

Budgetary Financial Resources: Marketplace Frameworks and Regulations (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
66,943,246 66,943,246 73,864,441 63,042,223
Human Resources (Full-Time Equivalents—FTEs)
2016–17 2017–18 2018–19
1,778 1,797 1,817
Performance Measurement
Expected Result Performance Indicator Target Date to be Achieved
Service standards are met Average percentage of service standards met 90% March 31, 2017

Planning Highlights: Marketplace Frameworks and Regulation

In 2016–17, Innovation, Science and Economic Development Canada will continue to oversee, regulate and ensure the effectiveness of a number of Canadian marketplace frameworks, including those for trade measurement, insolvency, federal incorporations, intellectual property, market access and consumer affairs.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

The changes in Planned Spending for the Marketplace Frameworks and Regulations program are mainly related to the Intellectual Property sub-program, which is mostly funded from the revenues it generates and where actual and planned revenues can fluctuate. Further information is provided under the sub-program section of this report.

Certain sub-programs under Marketplace Frameworks and Regulation are funded by user fees, which are not shown in the financial information in this report. Only the amounts funded by appropriations are shown.

Sub-Program: Trade Measurement

Description

This program ensures the integrity and accuracy of measurement-based financial transactions and has sole federal jurisdiction for the administration and enforcement of the laws governing trade measurement in Canada: the Weights and Measures Act and Regulations and the Electricity and Gas Inspection Act and Regulations. It protects Canadians against loss due to inaccurate measurement at all levels of trade and maintains domestic and international consumer and business confidence in the accurate measurement of goods and services bought and sold on the basis of measure, by ensuring scales, gas pumps, electricity and natural gas meters and other measuring devices used in Canada meet legislative standards for accuracy and performance. This program develops trade measurement requirements, approves prototype measuring devices for use in Canada, assesses measurement accuracy in the marketplace, investigates business and consumer complaints of suspected inaccurate measurement, and compels corrective actions when unfair or improper practices are found. The program also accredits qualified private sector organizations to perform measuring device inspections.

Budgetary Financial Resources: Trade Measurement (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
30,571,466 30,571,466 30,571,466
Human Resources (FTEs)
2016–17 2017–18 2018–19
284 284 284
Performance Measurement
Expected Result Performance Indicators Targets Date to be Achieved
Accurate trade measurement in Canada Percentage of devices in compliance with new mandatory inspection frequencies for gas pumps, scales and other measuring devices 80% March 31, 2017
Percentage of Measurement Canada product and surveillance audits which confirm authorized service providers' competencies to retain authorities to conduct inspections 94% March 31, 2017

Planning Highlights: Trade Measurement

In 2016–17, Innovation, Science and Economic Development Canada will continue to implement recent amendments to the Weights and Measures Regulations. These include the ongoing introduction of mandatory inspection frequencies in the retail petroleum, retail food, dairy, mining, forestry, fishing, field and grain crops, and wholesale petroleum sectors. The Department will also continue its information and awareness activities to increase device owners' understanding of their legal obligations under the amended regulations and the consequences of non-compliance.

Innovation, Science and Economic Development Canada will continue to implement a graduated compliance improvement approach. This includes applying administrative monetary penalties and increased court-imposed fines to resolve measurement inaccuracy and other non-compliance under the Acts and regulations governing trade measurement.

Sub-Program: Insolvency

Description

This program supervises the administration of estates and matters under the Bankruptcy and Insolvency Act and carries out duties under the Companies' Creditors Arrangement Act through the Office of the Superintendent of Bankruptcy, which operates as a vote net revenue organization whose activities are supported in part by user fees. It protects the integrity of the insolvency system by maintaining an efficient and effective insolvency regulatory framework; promoting awareness of the rights and responsibilities of stakeholders; ensuring compliance with the regulatory framework; by being an integral source of information on Canadian insolvency matters; and by developing policy.

Budgetary Financial Resources: Insolvency (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
5,757,361 5,757,361 5,757,361
Human Resources (FTEs)
2016–17 2017–18 2018–19
391 390 390
Performance Measurement
Expected Result Performance Indicators Targets Date to be Achieved
Estates and matters are administered in accordance with insolvency legislation Percentage of trustees with a satisfactory level of compliance 90% March 31, 2017
Percentage of enquiries and complaints responded to within service standards 90% March 31, 2017

Planning Highlights: Insolvency

In 2016–17, new trustee designation and advertising requirements, which come into force on April 1, 2016, will be established pursuant to the Bankruptcy and Insolvency Act to make it easier for Canadians to identify licensed insolvency professionals.

The availability of insolvency statistics will be expanded through the Open Data Portal. Supervision of the insolvency system will be improved through the implementation of a modernized compliance program and the introduction of a trustee license administration portal to enhance the integrity and efficiency of licence administration and renewal.

Administration of insolvency legislation is supported, in part, by user fees, not included in the figures above. The Planned Spending above reflects only the portion of funding approved by appropriations.

Sub-Program: Federal Incorporation

Description

This program allows Canadians and businesses (with the exception of financial institutions) to incorporate at the federal level in accordance with the Canada Business Corporations Act, the Boards of Trade Act, the Canada Cooperatives Act and the Canada Not-for-profit Corporations Act or to carry out transactions under the Canada Corporations Act. It also issues and registers official documents under the Great Seal of Canada. The program's main lines of business include incorporation and related services (such as amalgamation or corporate charter amendments), dissolution of corporations, rulings on the use of corporate names, the name search service Nuans, collection and dissemination of information on federal companies, compliance and enforcement activities related to the statutes it administers and development of incorporation policy and regulations. The activities of this program are supported by user fees. The program's activities directly affect Canadian businesses, not-for-profit organizations and other corporate entities.

Budgetary Financial Resources: Federal Incorporation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
1,029,845 1,029,845 1,029,845
Human Resources (FTEs)
2016–17 2017–18 2018–19
82 83 83
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Federally incorporated companies are compliant with corporate laws and regulations Percentage of federally incorporated corporations that comply with statutory annual filing requirements 80% March 31, 2017
Businesses have timely access to incorporations and information services Percentage of published Corporations Canada service standards that are met or exceeded 90% March 31, 2017
Services are delivered to businesses electronically Percentage of transactions that are completed online 90% March 31, 2017

Planning Highlights: Federal Incorporation

In 2016–17, Innovation, Science and Economic Development Canada will continue to engage provinces and territories to connect Canada's business registries as a first step toward streamlining extra-provincial corporate registration, as well as to strengthen internal trade. This initiative will improve access to business registry information and increase corporate transparency, facilitate improvement of service delivery to businesses and promote open government.

The Department will continue to improve its digital offerings and enhance client experience by implementing new online services relating to incorporation, in support of the objectives of the Policy on Service.

The Department will implement the new information technology system for Nuans, the corporate name search tool that is used by the federal government and several provinces and territories when granting a company name. This new system will result in a more user-friendly web interface and greater accuracy in French-language searches.

This sub-program's activities are supported in part by user fees, not included in the figures above. The Planned Spending above reflects only the portion of funding approved by appropriations.

Sub-Program: Intellectual Property

Description

This program develops Canada's intellectual property policy and administers its system of intellectual property (IP) rights, namely patents, trademarks, copyrights, industrial designs and integrated circuit topographies. The Canadian Intellectual Property Office (CIPO), which operates under a revolving fund supported by user fees, assigns, grants and registers IP rights, legally recognizing certain endeavours of originality and creativity. It also disseminates information related to these rights to businesses, international IP offices, educational institutions, and Canadians. This program represents Canada's IP interests internationally and ensures that IP policy supports innovation, competitiveness and economic growth and that the benefits of the IP system accrue to Canadians and enable IP owners to protect their innovation investments. Its clients include Canadian and foreign applicants for IP protection, users of IP information and the Canadian business community.

Budgetary Financial Resources: Intellectual Property (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
21,462,046 29,552,687 18,974,464
Human Resources (FTEs)
2016–17 2017–18 2018–19
991 1,010 1,029
Performance Measurement
Expected Result Performance Indicator Targets Date to be Achieved
Timely administration of intellectual property rights Average number of months taken from the submission date to the registration / grant of intellectual property rights
  • Design: 10.6 months
  • Patent: 45.4 months
  • Trademark: 27.3 months
March 31, 2017

Planning Highlights: Intellectual Property

For 2016–17, Innovation, Science and Economic Development Canada will continue to implement amendments to intellectual property laws and their related regulations, including the Patent Act and Patent Rules, the Industrial Design Act and Regulations, and the Trade-marks Regulations. These amendments enable Canada's accession to various international IP treaties, within the existing Canadian IP framework. The Department will also work to reduce red tape by continuing to improve its operations and decreasing the overall turnaround time for issuing IP rights.

In 2016–17, CIPO will continue to develop new business tools and services and expand its outreach activities to increase awareness of the importance of IP for innovation and economic development. These activities will include IP information sessions and one-on-one meetings with small- and medium-sized enterprises to educate businesses and other key stakeholders about IP and available government support.

The Department will advance work related to the pharmaceutical intellectual property provisions of the Canada and European Union Comprehensive Economic and Trade Agreement (CETA).

The Department will provide advice and analysis of the copyright, trade-marks, geographic indications and patent provisions of the Trans-Pacific Partnership Agreement.

The increase in Planned Spending for 2017–18 reflects planned investments in information management and information technology projects to modernize CIPO's operations. The decrease in Planned Spending for 2018–19 reflects a decrease in information technology spending as projects near completion. This sub-program's activities are funded by revenues for services provided to those seeking intellectual property rights, to meet the operating expenditures of CIPO. The Planned Spending above reflects only the portion of funding approved by appropriations.

The increase in FTEs for 2017–18 and 2018–19 reflects planned staffing as CIPO continues to develop new business tools and services to meet the needs of small and medium-sized enterprises and innovators.

Sub-Program: Market Access

Description

This program provides policy, administrative and operational support and advice to the Minister of IndustryFootnote *, the Committee on Internal Trade, its Chair, and other committees or working groups established under the Agreement on Internal Trade (AIT) or by the committee across the federal, provincial and territorial governments. The purpose of the AIT is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investment within Canada and to establish an open, efficient and stable domestic market. This program also provides policy advice on bilateral, regional, plurilateral and multilateral initiatives, including regulations and standards, impacting Canadian companies' access to global markets and the development of international marketplace framework policies. This program uses funding from the following transfer payment: Internal Trade Secretariat Corporation.

Budgetary Financial Resources: Market Access (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
3,517,384 2,354,023 2,354,023
Human Resources (FTEs)
2016–17 2017–18 2018–19
16 16 16
Performance Measurement
Expected Result Performance Indicator Target Date to be Achieved
Decision makers have access to informed analysis on domestic and international trade matters affecting the competitiveness of Canadian industries Number of collaborative research or policy initiatives started or maintained 3 March 31, 2017

Planning Highlights: Market Access

In 2016–17, Innovation, Science and Economic Development Canada will work with the provinces and territories to comprehensively renew Canada's Agreement on Internal Trade. Following the negotiations, the Department will begin the legal review and implementation phases of internal trade renewal.

Working with Global Affairs Canada, Innovation, Science and Economic Development Canada will develop a new international trade strategy that supports small- and medium-sized enterprises, making it easier for them to take advantage of government financing and export-oriented support.

The Department will provide advice to the Minister and other government departments on several international trade negotiations, including the Canada-Japan Economic Partnership Agreement, a Canada-India Free Trade Agreement, as well as plurilateral agreements on environmental goods and a Trade in Services Agreement. It will also provide advice on matters related to the ratification and implementation of the Canada-EU Comprehensive Economic and Trade Agreement, and consultations with stakeholders regarding the Trans-Pacific Partnership Agreement.

The decrease in Planned Spending beginning in 2017–18 reflects the end of temporary funding provided to reduce barriers to internal trade.

Sub-Program: Consumer Affairs

Description

This program promotes the interests and protection of Canadian consumers, to enable them to be effective marketplace participants. It supports policy development, and contributes to intergovernmental harmonization of consumer protection rules, both nationally (under Chapter 8 of the Agreement on Internal Trade) and internationally (through the Organisation for Economic Co-operation and Development and International Organization for Standardization). It identifies important consumer issues and develops and disseminates consumer information and awareness tools. The program encourages consumer organizations to reach financial self-sufficiency, which assists them in providing meaningful, evidence-based input to public policy in the consumer interest. This program uses funding from the following transfer payment: Program for Non-profit Consumer and Voluntary Organizations.

Budgetary Financial Resources: Consumer Affairs (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
4,605,144 4,599,059 4,355,064
Human Resources (FTEs)
2016–17 2017–18 2018–19
15 15 15
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Citizens are aware of consumer issues in the Canadian marketplace Number of visitors accessing consumer information from Innovation, Science and Economic Development Canada 1.2 million March 31, 2017
Decision makers have access to informed analysis on issues affecting Canadian consumers Number of collaborative research or policy initiatives started or maintained 3 March 31, 2017
Number of times Innovation, Science and Economic Development Canada-supported analysis conducted by consumer organizations contributes to public policy discussions or media coverage 12 March 31, 2017

Planning Highlights: Consumer Affairs

In 2016–17, Innovation, Science and Economic Development Canada will continue to provide consumers with tools to make informed purchasing decisions and will work to ensure consumer interests are considered in policy development. These efforts will include a particular focus on consumer protection in the digital economy.

The Department will continue to represent Canada's interests and contribute to the modernization of international consumer protections in electronic commerce through the revision of the Organisation for Economic Cooperation and Development's 1999 Guidelines for Consumer Protection in the Context of Electronic Commerce.

The Department will support the development of international standards, including on the administration and monitoring of online consumer review forums, and a framework for a unit pricing system, through the International Organization for Standardization.

The Department will continue to collaborate with the Federal-Provincial-Territorial Consumer Measures Committee to explore opportunities of common concern to better protect consumers' interests, including in the online marketplace.

The Department will continue to coordinate the Government of Canada's Facebook channel, Your Money Matters, to promote consumer and personal financial information to help Canadians manage their money.

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Program: Marketplace Competition and Investments

Description

This program administers federal laws relating to the investigation of anti-competitive behaviour and the general regulation of trade and commerce in respect of business practices, including the review of mergers and significant foreign investments. It protects, promotes and advocates for efficient markets in a manner that encourages ongoing economic growth and innovation, providing consumers and businesses with competitive prices and increased product choices.

Budgetary Financial Resources: Marketplace Competition and Investments (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
46,563,535 46,563,535 46,563,535 46,563,535
Human Resources (FTEs)
2016–17 2017–18 2018–19
384 380 380
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Consumers benefit from a competitive marketplace Dollar value estimate of annual consumer savings from Bureau actions that stop anti-competitive activity $2.37 billion March 31, 2017
Anticipated total consumer savings for the duration of the remedy from Bureau actions that stop anti-competitive activity $12.3 billion March 31, 2017
Timely and accurate reviews lead to marketplace certainty Percentage of mergers and foreign investments reviewed within service standards 85% for complex matters and 90% for non-complex matters March 31, 2017

Planning Highlights: Marketplace Competition and Investments

In 2016–17, Innovation, Science and Economic Development Canada will continue to ensure that Canadians and Canadian firms benefit from open and competitive markets through an effective and efficient regulatory framework and, through the Competition Bureau, focused competition law enforcement. The Department will continue to analyze foreign investments and their consequences for the Canadian marketplace.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub- Program: Competition Law Enforcement

Description

This program is responsible for the administration and enforcement of the Competition Act, including provisions enacted by Canada's Anti-Spam Legislation, as well as the Consumer Packaging and Labelling Act, the Precious Metals Marking Act and the Textile Labelling Act. The Competition Bureau (the Bureau) is an independent law enforcement agency whose activities are supported in part by user fees. It seeks to promote and increase compliance with the acts to ensure that anti-competitive conduct does not hinder growth and innovation in the Canadian economy. The Bureau protects and promotes competitive markets by preventing and deterring anti-competitive conduct and deceptive marketing practices. It also reviews merger transactions to ensure their compliance with the Competition Act. This program is also responsible for providing advice to legislators and policy-makers and intervening or making representations before federal and provincial boards, commissions and tribunals, to promote and advocate for the incorporation of competition considerations to achieve policy or regulatory objectives.

Budgetary Financial Resources: Competition Law Enforcement (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
44,642,263 44,642,263 44,642,263
Human Resources (FTEs)
2016–17 2017–18 2018–19
370 366 366
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Deterrence of conduct contrary to the Competition Act Dollar value estimate of annual consumer savings from Bureau deterrence related actions $1.13 billion March 31, 2017
Anticipated total consumer savings for the duration of the remedy from Bureau deterrence related actions $4.36 billion March 31, 2017
Consumers benefit from information enabling them to make informed choices Competition Bureau information products accessed
  • Webpages visited: 650,000
  • Files downloaded: 35,000
  • Video views: 21,500
  • Twitter engagement: 800
March 31, 2017

Planning Highlights: Competition Law Enforcement

In 2016–17, ISED will continue to improve the tools to deter anti-competitive and deceptive conduct and promote competition.

Through the Competition Bureau, the Department will continue to promote compliance supported by strong, focused enforcement to enhance economic prosperity and consumer welfare. The Bureau will also maximize its competition promotion efforts by diversifying and increasing its collaboration with domestic and international partners and by participating in international forums.

The Bureau will implement and promote its Corporate Compliance Programs Bulletin, which will assist businesses in adopting credible and effective competition compliance programs.

The Bureau will promote awareness through outreach activities, including the use of social media, to help empower Canadian consumers and other target groups to make informed decisions and to help businesses comply with the Bureau's legislation.

In 2016–17, the Bureau will finalize the Intellectual Property Enforcement Guidelines. These guidelines will help IP and competition law practitioners understand how the Bureau will determine whether conduct involving IP raises an issue under the Competition Act.

The Bureau will continue to maintain strong working relationships on enforcement matters with key partners by holding bilateral meetings with counterparts from the United States and Mexico in Spring 2016 and the European Union in Fall 2016. The Bureau will also continue developing relationships with competition authorities in emerging markets, including China, by signing memoranda of understanding that establish a framework for future enforcement cooperation.

Sub-Program: Investment Review

Description

This program implements the provisions of the Investment Canada Act by ensuring that the Minister of IndustryFootnote * has the information needed to determine whether a significant foreign investment is likely to be of net benefit to Canada and/or whether there are reasonable grounds to believe that an investment could be injurious to national security. This is accomplished by developing investment policy, processing notifications filed by investors, and reviewing transactions within the scope of the Act.

Budgetary Financial Resources: Investment Review (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
1,921,272 1,921,272 1,921,272
Human Resources (FTEs)
2016–17 2017–18 2018–19
14 14 14
Performance Measurement
Expected Result Performance Indicators Targets Date to be Achieved
Timely processing of foreign investment notifications and applications for review filed by foreign investors under the Investment Canada Act Median time required to certify notifications 5 calendar days March 31, 2017
Median time required to process applications 70 calendar days March 31, 2017

Planning Highlights: Investment Review

In 2016–17, the Department will continue the timely processing of foreign investment notifications and applications for review filed by foreign investors under the Investment Canada Act.

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Program: Spectrum, Telecommunications and the Digital Economy

Description

This program enables Canadians to benefit from a globally competitive digital economy that drives innovation, productivity and future prosperity. This includes developing and administering domestic regulations, procedures and standards that govern Canada's radiocommunication and telecommunications industries. The program sets legislative and policy frameworks to encourage competition, innovation, private sector investment in digital infrastructure, confidence in the online marketplace, and greater adoption of information and communications technologies by business. The program maximizes the public benefits of spectrum by managing it efficiently and effectively, through spectrum and radio licensing including auctions, compliance and enforcement. The program protects Canadian interests in the radiocommunications and telecommunications industry globally and facilitates international online trade and commerce by negotiating international treaties and agreements. This program also performs research in advanced telecommunication and information technologies to promote innovation and assist in the development of policies, regulations and program delivery.

Budgetary Financial Resources: Spectrum, Telecommunications and the Digital Economy (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
106,285,898 106,285,898 104,512,606 104,439,314
Human Resources (FTEs)
2016–17 2017–18 2018–19
801 801 801
Performance Measurement
Expected Result Performance Indicators Targets Date to be Achieved
Canada has a growing digital economy Investment in dollars by telecommunications providers $8 billion March 31, 2017
Percentage of population with broadband subscriptions 80% March 31, 2017

Planning Highlights: Spectrum, Telecommunications and the Digital Economy

In 2016–17, Innovation, Science and Economic Development Canada will continue to ensure Canadians benefit from the digital economy, in part through the administration of the policies and regulations governing the radiocommunication and telecommunications industries. The Department will continue to manage spectrum and radio licensing to the benefit of all Canadians. Innovation, Science and Economic Development Canada will continue conducting research on advanced communication systems and technologies to inform public policy and further innovation in this area.

The decrease in Planned Spending from 2016–17 to 2017–18 reflects the completion of the health and safety improvements at the Communications Research Centre Canada campus and the retrofit of existing laboratory facilities to create the Spectrum Analytics Centre. Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Spectrum and Telecommunications Policy and Legislation

Description

This program develops legal and policy frameworks in the areas of spectrum, telecommunications, privacy protection and cyber resilience, including cyber security. It promotes the efficiency and adaptability of the Canadian digital economy by regulating commercial conduct and discouraging misconduct in the use of electronic means to carry out commercial activities and by working with the private sector to remove barriers to the use of e-commerce. The program works with international organizations to promote and protect Canadian interests in international discussions, agreements and treaties and to negotiate standards. The program works to update or create legislation as information and communications technologies and their use evolve. It develops policy in support of the Personal Information Protection and Electronic Documents Act, Canada's Anti-Spam Legislation, the Telecommunications Act and the Radiocommunication Act. This program uses funding from the following transfer payment: International Telecommunication Union, Geneva, Switzerland.

Budgetary Financial Resources: Spectrum and Telecommunications Policy and Legislation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
14,560,864 14,560,863 14,560,863
Human Resources (FTEs)
2016–17 2017–18 2018–19
66 66 66
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
International treaties and agreements reflect Canada’s spectrum and telecommunications interests Percentage of Canadian objectives achieved at ITU meetings or through other international agreements 90% March 31, 2017
Decision makers have access to informed analysis on legal and policy frameworks in the areas of spectrum, telecommunications, privacy protection and online security Number of consultations on the development and implementation of the Government of Canada’s spectrum and telecommunications priorities 3 March 31, 2017

Planning Highlights: Spectrum and Telecommunications Policy and Legislation

In 2016–17, Innovation, Science and Economic Development Canada will continue to implement strategies to support competition, choice and availability of services, and foster a strong investment environment for telecommunications services, to keep Canada at the leading edge of the digital economy. This will include supporting other government departments in reviewing measures to protect Canadians and critical infrastructure from cyber-threats.

The Department will develop regulations on data breach reporting requirements in support of amendments made to the Personal Information Protection and Electronic Documents Act (PIPEDA) in 2015.

The Department will continue to engage with Canadians and like-minded partners, and in international forums such as the Governmental Advisory Committee to the Internet Corporation for Assigned Names and Numbers (ICANN), to reinforce the multistakeholder model that keeps the internet open.

The Department will work with spectrum and telecommunication regulators of other countries to ensure that globally harmonized standards and international radio regulations continue to fully reflect Canadian interests with respect to the development of new radio and telecommunications networks, services and technologies, including mobile broadband, satellite networks, maritime communications, as well as civil and military aviation. This will be accomplished by leading technical standards development discussions as well as spectrum management and satellite orbit negotiations within the Inter-American Telecommunication Commission (CITEL) as well as the International Telecommunication Union (ITU). This work will lead to the 2016 World Telecommunication Standardization Assembly, 2018 Plenipotentiary Conference and 2019 World Radiocommunication Conference.

Sub-Program: Spectrum Management and Regulation

Description

This program leads the orderly and secure evolution of Canada's radio spectrum and telecommunications infrastructure and promotes competition through the development of a coherent and effective regulatory framework, the enforcement of domestic and international requirements and the implementation of internationally negotiated standards and treaties. This provides telecommunication manufacturers and service providers with the favourable conditions they need to develop, introduce and market leading technologies and services. This program issues licences to use specific frequencies of the spectrum to businesses, organizations, and individuals, including on a first-come, first-served basis and through auctions. The program also provides authorizations for the use of spectrum and orbital resources for satellite systems. The program monitors and enforces compliance with licence conditions and regulations. To avoid interference and protect health and safety, this program verifies and monitors compliance with Canadian radiocommunications and telecommunications equipment regulations and legislation. The program also plays a role in protecting critical infrastructure, in making spectrum available for first responders, in supporting the telecommunications industry in times of emergency, in leading cyber resilience initiatives and supporting cyber security. This program uses funding from the following transfer payment: Radio Advisory Board of Canada.

Budgetary Financial Resources: Spectrum Management and Regulation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
59,529,925 59,456,633 59,383,341
Human Resources (FTEs)
2016–17 2017–18 2018–19
530 530 530
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Canada has a modern spectrum management and telecommunications framework Amount of spectrum available for commercial use 750 MHz December 31, 2018
Canadians have timely access to radio frequency spectrum Percentage of licence applications completed within service standards 90% March 31, 2017
Percentage of radiocommunication interference investigations completed within service standards 90% March 31, 2017

Planning Highlights: Spectrum Management and Regulation

In 2016–17, Innovation, Science and Economic Development Canada will continue to work jointly with the United States Federal Communications Commission (FCC) to repurpose the 600 MHz spectrum band from broadcasting to commercial mobile services. This will maximize the amount of mobile spectrum available in both countries and minimize interference issues caused by the shared border. As part of this work, the Department will develop a joint transition plan for primary users with the FCC. The Department will also independently develop a transition plan for Canadian secondary users of the 600 MHz band. Following the U.S. Incentive Auction, which will determine the amount of commercial mobile spectrum to be made available, the Department will publish a Canadian consultation on the licensing framework for commercial mobile spectrum in the 600 MHz band.

The Department will continue developing and implementing technical rules, regulatory standards and regulations—such as radiofrequency emission standards for radio equipment (RSS) and non-radio systems capable of causing interference (ICES)—to enable the efficient operation of Canadian radiocommunication services and foster harmonized use of spectrum, harmonize international telecommunications and streamline market access for Canadian manufacturers.

Sub-Program: Communications Technologies Research and Innovation

Description

This program conducts research on advanced communications systems and technologies primarily to support the development of public policy and services for Industry Canada.Footnote * Research projects involve a combination of in-house activities and partnerships with other government departments, industry and academic organizations. The research performed provides insight into communications technologies, which assists in the development of communications policies, regulations and program delivery, provides support to critical government operations, and establishes ties with industry and academia to facilitate future collaboration and promote innovation in this area.

Budgetary Financial Resources: Communications Technologies Research and Innovation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
32,195,109 30,495,110 30,495,110
Human Resources (FTEs)
2016–17 2017–18 2018–19
205 205 205
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Innovation, Science and Economic Development Canada policymaking and program development sectors are provided with the scientific information they need to make well-informed decisions on communications technologies Number of research, development and/or testing projects on communications technologies for which the Communications Research Centre Canada has provided advice/input to Innovation, Science and Economic Development Canada for policy, standard and regulation development, and for contributions to international fora (i.e., International Telecommunication Union) 10 March 31, 2017
CRC intellectual property and technology are shared between Communications Research Centre Canada and industry/academia Number of research, development and/or testing projects with industry and/or academia 5 March 31, 2017
Canadian government departments and agencies (e.g. Department of National Defence, Canadian Radio-television and Telecommunications Commission, Canadian Space Agency) are provided with the information they need to make well-informed decisions to meet their communication needs Number of research, development and/or testing projects on communications technologies for other government departments in support of their communication needs 5 March 31, 2017

Planning Highlights: Communications Technologies Research and Innovation

Innovation, Science and Economic Development Canada will continue to analyze emerging technology trends, potentially disruptive technologies, and innovative developments that could impact the management of wireless radio spectrum.

The Department will address policy, program and operational challenges in spectrum management through research and development that advances the efficient use of radio spectrum. This includes implementing the Communications Research Centre's Grand Challenge research programs, which will deliver strategic technology demonstrations and innovative proofs-of-concept, in support of the government's capacity to manage Canada's radio spectrum resource.

As well, Innovation, Science and Economic Development Canada will assist and support other government organizations in addressing their critical wireless communications requirements.

The Department will build a Spectrum Analytics Centre, a laboratory space that will be used to monitor, analyze and interpret radio spectrum data with the aid of visualization tools. The research insights will help to enable access to spectrum necessary to fuel Canada's increasingly wireless society and economy.

The decrease in Planned Spending from 2016–17 to 2017–18 reflects the completion of the health and safety improvements at the Communications Research Centre Canada campus and the retrofit of existing laboratory facilities into the Spectrum Analytics Centre.

Section II: Analysis of Programs by Strategic Outcome (continued)

Strategic Outcome: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy

Innovation, Science and Economic Development Canada invests in science and technology to generate knowledge and equip Canadians with the skills and training they need to compete and prosper in the global knowledge-based economy. These investments help ensure that discoveries and breakthroughs happen here in Canada and that Canadians can realize the resulting social and economic benefits.

Program: Science, Technology and Innovation Capacity

Description

This program sets the strategic direction for policies and programs that support and stimulate research, development and innovation in Canada. In collaboration with Industry Portfolio partners,Footnote * other government departments and external stakeholders from the private and public sectors, the program fosters an environment that is conducive to innovation and promotes scientific excellence.

Budgetary Financial Resources: Science, Technology and Innovation Capacity (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
342,834,370 342,834,370 322,354,369 381,854,369

Note: Planned Spending does not reflect future budget decisions.

Human Resources (FTEs)
2016–17 2017–18 2018–19
65 65 65
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Canada's scientific research excellence is maintained Canada's Average Relative Citation index 1.31 March 31, 2017
Researchers are attracted to Canada, and retained Total full-time equivalent researchers in Canada per thousand total employment 8.8 March 31, 2017

Planning Highlights: Science, Technology and Innovation Capacity

In 2016–17, Innovation, Science and Economic Development Canada will work with stakeholders, governments, and Canadians in developing an Innovation Agenda to create a world-leading culture of innovation that supports Canada's economic, environmental and social goals. This will help large and small businesses become more competitive and successful, contributing to growth, the creation of quality jobs and Canada's long-term transition to a clean economy.

In this process, a broad engagement approach will be created to mobilize support and commitment, and identify areas for action with multiple stakeholders. ISED will continue to support science and technology by setting the strategic direction for the policies and programs that support and stimulate scientific research, development and innovation in Canada. Through its work with portfolio partners and other private and public partnerships, the Department will promote research and support new discoveries.

Innovation, Science and Economic Development Canada's science and technology initiatives are part of the broader science and technology portfolio. Further information can be found on the portfolio partners' websites.

The changes in Planned Spending are normal fluctuations due to changes in the approved funding of grants and contributions programs. Further information is provided under the sub-program section of this report.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Science and Technology Policy and Analysis

Description

This program supports science, technology and innovation (ST&I) by providing analysis and advice and developing policies and programs to improve Canada's research and development capacity and excellence in Canada's innovation system. This is accomplished through partnerships, consultation and collaboration with various stakeholders including the private sector, universities and colleges and their associations, provincial/territorial governments, foreign governments and international organizations. This program also works closely with Innovation, Science and Economic Development Portfolio partners such as the National Research Council and the federal granting councils (the Natural Sciences and Engineering Research Council of Canada and the Social Sciences and Humanities Research Council of Canada) as well as other science-based departments and agencies to promote horizontal coordination of ST&I policies. This program also supports the activities of the Science, Technology and Innovation Council, an external advisory body that provides Ministers with confidential advice on ST&I policy issues and publicly reports on Canada's ST&I performance against international standards of excellence. This program uses funding from the following transfer payment: Council of Canadian Academies.

Budgetary Financial Resources: Science and Technology Policy and Analysis (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
9,515,733 9,485,732 9,485,732
Human Resources (FTEs)
2016–17 2017–18 2018–19
38 38 38
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Engagement with key stakeholders in the development and implementation of the Government of Canada's science, technology, and innovation priorities Number of ongoing consultations with the federal science and technology community, provincial governments, and national stakeholder organizations in the development and implementation of the Government of Canada's science, technology, and innovation priorities 15 March 31, 2017
A broader understanding of science underpins science and technology policy Number of Council of Canadian Academies (CCA), Science, Technology and Innovation Council (STIC) and Organization for Economic Cooperation and Development (OECD) reports underway with Innovation, Science and Economic Development Canada involvement that provide a basis for science and technology policy 8 March 31, 2017

Planning Highlights: Science and Technology Policy and Analysis

In 2016–17, Innovation, Science and Economic Development Canada will support the Minister of Science in the creation of a Chief Science Officer position to ensure that government science is available to the public, that scientists are able to speak freely about their work and that scientific analyses are considered when the government makes decisions.

The Department will examine the use of direct support to encourage clusters, networks and innovation by business as part of the Innovation Agenda. The Department will work with colleagues at Finance Canada to ensure that tax measures are efficient and encourage innovation, trade and the growth of Canadian firms.

The Department will examine options to strengthen the recognition of, and support for, fundamental research to support new discoveries. It will continue to engage with stakeholders and conduct research and statistical analysis that enhances understanding of Canada's national and provincial/territorial, as well as international, systems of innovation.

Sub-Program: Science and Technology Partnerships

Description

This program oversees implementation of science and technology programs delivered by the Department's Industry Portfolio partners.Footnote * It manages federal funding agreements with arm's length organizations that support Canada's science, technology and innovation capacity. The program also conducts research and analysis in support of its oversight, governance and management responsibilities. It supports research, education and innovation in post-secondary institutions. It promotes a science and entrepreneurial culture and the development of a pool of talent in the science and technology industry. This program uses funding from the following transfer payments: Canada Foundation for Innovation, CANARIE Inc, Genome Canada, Perimeter Institute for Theoretical Physics, Mitacs Inc., Canadian Institute for Advanced Research and the Institute for Quantum Computing.

Budgetary Financial Resources: Science and Technology Partnerships (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
333,318,637 312,868,637 372,368,637

Note: Planned Spending does not reflect future budget decisions.

Human Resources (FTEs)
2016–17 2017–18 2018–19
27 27 27
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Science and technology partnerships exist between industry and academia Dollars of cash and in-kind industrial and other contributions leveraged per dollar investment from granting councils' science and technology industry partnership programs for which Innovation, Science and Economic Development Canada sits on governance bodies $2.50 March 31, 2017
Number of companies involved in granting councils' science and technology industry partnership programs for which Innovation, Science and Economic Development Canada sits on governance bodies 300 March 31, 2017
Federal programs are in place to support highly qualified researchers Number of researchers including students supported by granting councils' science and technology "people advantage" programs for which Innovation, Science and Economic Development Canada sits on governance bodies or manages a contribution agreement 3,260 March 31, 2017

Planning Highlights: Science and Technology Partnerships

The Department will support world-class excellence in fundamental research to facilitate new discoveries that lead to business growth, build human capital, and support environmental and social goals for the well-being of Canadians. In collaboration with the granting councils and Health Canada, Innovation, Science and Economic Development Canada will prepare to introduce new research chairs in sustainable technologies, as well as launch the next competition for Canada Excellence Research Chairs to attract and retain some of the world's most accomplished and promising minds. The second round of the Canada First Research Excellence Fund Competition will also come to a conclusion.

In 2016–17 the Department will work to develop a Digital Research Infrastructure strategy for the academic sector that enables researchers in a range of disciplines to effectively adapt to, and benefit from, the increasingly computationally intensive and data-driven nature of research. The Digital Research Infrastructure strategy will set out an overarching and long-term approach toward supporting high-speed data networks, advanced research computing, data storage, data management standards, and access to highly-qualified personnel.

The Canada Foundation for Innovation (CFI) received new funding of $1.33 billion, starting in 2017–18. The Department will work with the CFI to implement this investment to support advanced research infrastructure at universities, colleges and research hospitals.

Innovation, Science and Economic Development Canada will continue to work with federal granting councils and other federal departments to promote Open Science within the academic research community.

The Department will continue to oversee the renewal of funding to arm's-length recipient organizations, and monitor recipients for performance and compliance with funding agreements, including undertaking compliance audits.

The Department will work with other government departments to support the objectives of Sustainable Development Technologies Canada. The description of this sub-program will be amended to reflect the planned alignment of Sustainable Development Technologies Canada with the ISED Portfolio science and technology partnership programs.

The decrease in Planned Spending from 2016–17 to 2017–18 is due in part to the end of the currently approved contribution funding for the Perimeter Institute for Theoretical Physics, the Institute for Quantum Computing and the Canadian Institute for Advanced Research, as well as fluctuations in approved funding for the Canada Foundation for Innovation, Genome Canada and Mitacs Inc. The increase in Planned Spending for 2018–19 reflects increased funding for the Canada Foundation for Innovation, offset by reduced cash flow for Genome Canada, Canarie Inc. and the end of currently approved funding for Mitacs Inc.

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Program: Industrial Research and Development Financing

Description

This program helps Canadian businesses increase research and development (R&D) activities by investing in innovative projects and collaborations through repayable and non-repayable contributions. Projects supported under this program are expected to produce benefits to Canada, including generating strategic R&D investment, developing new technologies and enhancing Canadian innovation capacity and expertise.

Budgetary Financial Resources: Industrial Research and Development Financing (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
326,898,852 326,898,852 316,601,914 254,630,990
Human Resources (FTEs)
2016–17 2017–18 2018–19
77 77 77
Performance Measurement
Expected Result Performance Indicators TargetsFootnote * Date to be Achieved
Investment in leading-edge R&D in targeted Canadian industries Dollar value to date of disbursements to firms for R&D activities
  • AIF (2008): $363 million
  • ASIP (2015): $24.1 million
  • SADI (2007): $1.23 billion
  • TDP (2013): $67.4 million
  • TPC (1996): $3.16 billion
March 31, 2017
Dollars to date of investment leveraged per dollar of Innovation, Science and Economic Development Canada disbursements in R&D projects
  • AIF (2008): $7.25
  • ASIP (2015): $1.00
  • SADI (2007): $1.74
  • TDP (2013): $1.00
  • TPC (1996): $2.33
March 31, 2017

Planning Highlights: Industrial Research and Development Financing

In 2016–17 Innovation, Science and Economic Development Canada will continue investing in R&D activities to encourage the development of new technologies in targeted industries in order to enhance Canadian innovative products and processes.

ISED will support Environment and Climate Change Canada and Natural Resources Canada in making strategic investments in the country's clean technology sector. ISED will also support the Government of Canada's priorities in making investments that will make Canada's resource sectors world leaders in the use and development of clean and sustainable technology and processes.

The Department will work with Regional Development Agencies to pursue strategic investments that build on regional advantages and support transition and diversification where appropriate.

Variances in Planned Spending are normal fluctuations due to changes in approved funding for various grants and contributions programs. Further information is provided under the sub-program section of this report.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Automotive Innovation

Description

This program supports small- and large-scale initiatives across the automotive supply chain through repayable and non-repayable contributions. The Automotive Innovation Fund supports the production of innovative, greener and more fuel-efficient vehicles through repayable contributions for strategic, large-scale research and development projects in the automotive sector. The Automotive Supplier Innovation Program provides non-repayable contributions to help Canadian-based suppliers gain a competitive edge through new innovative products and processes. The program supports product development and technology demonstration on a cost-shared basis with participating firms to help innovations become commercially viable. This program uses funding from the following transfer payments: Automotive Innovation Fund and Automotive Supplier Innovation Program.

Budgetary Financial Resources: Automotive Innovation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
82,763,557 80,686,360 29,992,036
Human Resources (FTEs)
2016–17 2017–18 2018–19
6 6 6
Performance Measurement
Expected Results Performance Indicators TargetsFootnote * Date to be Achieved
Enhanced capacity for the development of innovative technologies in the Canadian automotive industry Number of projects to date focusing on innovative technologies and processes 20
(from 2008)
March 31, 2017
Investment in leading-edge R&D in the Canadian automotive sector Dollars to date of investment leveraged per dollar of Innovation, Science and Economic Development Canada disbursements in automotive R&D projects
  • AIF (2008): $7.25
  • ASIP (2015): $1.00
March 31, 2017
Collaboration between the private sector and universities, colleges and affiliated research institutes Number of instances to date where the recipients have established a collaborative relationship with other private sector companies, universities, colleges, and/or affiliated research institutes 45 March 31, 2017

Planning Highlights: Automotive Innovation

In 2016–17, Innovation, Science and Economic Development Canada will continue to administer the Automotive Innovation Fund (AIF)—which supports the development and implementation of innovative, fuel-efficient technologies and processes—as well as the Automotive Supplier Investment Program (ASIP). In particular, the Department will work with the Department of Finance and Global Affairs Canada to develop appropriate investments and strategies to help the automotive sector adjust to Canada's potential participation in the Trans-Pacific Partnership.

The decrease in Planned Spending for 2018–19 reflects the end of currently approved funding for the AIF, partially offset by funding for the ASIP.

Sub-Program: Aerospace and Defence Innovation

Description

This program supports research and development in the Canadian aerospace, defence, space and security industries through repayable and non-repayable contributions. It fosters innovation and competitiveness by encouraging and leveraging investment in the research and development of new technologies, products, processes and services. The program also stimulates collaboration among research institutes, universities, colleges and the private sector to further refine new and existing products and processes through research and development, learning-by-doing, and innovation. This program uses funding from the following transfer payments: Strategic Aerospace and Defence Initiative and the Technology Demonstration Program.

Budgetary Financial Resources: Aerospace and Defence Innovation (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
244,135,294 235,915,554 224,638,954
Human Resources (FTEs)
2016–17 2017–18 2018–19
71 71 71
Performance Measurement
Expected Results Performance Indicators TargetsFootnote * Date to be Achieved
New and innovative products, services and processes are commercialized by Canadian businesses Number of projects to date in which the recipient has commercialized a new product, service or process as a result of Innovation, Science and Economic Development Canada financing 206
(from 1996)
March 31, 2017
Investment in leading-edge R&D in the Canadian aerospace and defence sector Dollars to date of investment leveraged per dollar of Innovation, Science and Economic Development Canada disbursements in aerospace and defence R&D projects
  • SADI (2007): $1.74
  • TDP (2013): $1.00
  • TPC (1996): $2.33
March 31, 2017
Collaboration between private sector and universities, colleges and affiliated research institutes Number of projects to date for which the recipient has established a collaborative relationship with universities, colleges and/or affiliated research institutes 35
(from 1996)
March 31, 2017

Planning Highlights: Aerospace and Defence Innovation

In 2016–17 the Department will continue to foster business innovation by supporting the research and development activities of Canadian companies through delivery of the Strategic Aerospace and Defence Initiative (SADI) and the Technology Demonstration Program (TDP).

Round Three of the TDP will be launched in 2016–17, continuing to support large-scale demonstration projects in areas that have significant potential for broad-based and long-term economic benefits. The Department will also consider enhancements to the program's design and procedures from lessons learned and the advice and feedback of external stakeholders (e.g., TDP Advisory Committee).

SADI will continue to contribute to the development of partnerships between private companies and academia through the requirement to collaborate with post-secondary institutions.

The decrease in Planned Spending reflects unused SADI and TDP contributions from previous years that were reprofiled to 2016–17 and the end of temporary funding from royalties to support new investments under SADI. These changes are partially offset by increased TDP funding.

Section II: Analysis of Programs by Strategic Outcome (continued)

Strategic Outcome: Canadian businesses and communities are competitive

Innovation, Science and Economic Development Canada encourages competition and productivity because businesses generate jobs and create wealth. Promoting economic development in communities encourages the development of skills, ideas and opportunities across the country.

Program: Small Business Research, Financing and Services

Description

This program enhances the growth and competitiveness of small business and encourages entrepreneurial activity across Canada. It raises awareness across government of the challenges facing small businesses and provides knowledge and expertise on small and medium-sized enterprises (SMEs) in a number of areas, including entrepreneurship, financing, innovation, and growth firms. It also addresses obstacles to growth such as paperwork burden and delivers programs that help support SMEs.

Budgetary Financial Resources: Small Business Research, Financing and Services (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
97,653,629 97,653,629 86,902,629 83,495,629
Human Resources (FTEs)
2016–17 2017–18 2018–19
95 95 95
Performance Measurement
Expected Result Performance Indicator Target Date to be Achieved
Canadian small and medium sized-enterprises grow and become more internationally competitive The percentage of businesses expecting to grow their total revenues over the next three years 50% March 31, 2018

Planning Highlights: Small Business Research, Financing and Services

In 2016–17, Innovation, Science and Economic Development Canada will continue to support SMEs across the country, help them grow and become more internationally competitive. The Department will support the development and performance of Canada's innovation incubators and accelerators to nurture the next generation of entrepreneurial start-ups and help them grow to scale more quickly.

The decrease in Planned Spending reflects expected fluctuations in claims under the Canada Small Business Financing Act and the end of currently approved contribution funding to Futurpreneur Canada.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Small Business Financing and Growth

Description

This program helps Canadian small and medium-sized enterprises (SMEs) and entrepreneurs access financing that would not otherwise be available or would only be available under less favourable terms. Futurpreneur Canada also assists young entrepreneurs through mentoring, where the entrepreneur is matched with an experienced business professional. This program also provides advice and support to the Business Development Bank of Canada and promotes understanding of the challenges small businesses face in adopting business practices that help them to grow and innovate. This program uses funding from the following transfer payments: Canada Small Business Financing Program and Futurpreneur Canada.

Budgetary Financial Resources: Small Business Financing and Growth (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
92,230,448 81,479,448 78,072,448
Human Resources (FTEs)
2016–17 2017–18 2018–19
47 47 47
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Small and medium-sized enterprises that would not otherwise be able to access financing can do so with government support Number of loans registered with the program 5,300 March 31, 2017
Value of loans registered with the program $880 million March 31, 2017
Young entrepreneurs are able to obtain advice from experienced individuals Number of mentorships established 1,075 March 31, 2017

Planning Highlights: Small Business Financing and Growth

In 2016–17, Innovation, Science and Economic Development Canada will engage provincial, territorial, and municipal governments to create alignment with complementary programs delivered by other governments to support SMEs.

The Department will work with colleagues in Global Affairs Canada to prepare and execute a new Canadian international trade strategy that will make it easier for SMEs to take advantage of government financing and export-oriented supports. It will work with colleagues at Finance Canada to help ensure that the small business tax rate reduction supports small business.

The Department will continue to strengthen relationships with financial institutions and small business support organizations to increase their knowledge of, and familiarity with, the Canada Small Business Financing Program (CSBFP). To facilitate the lending process, the Department will provide tailored, webinar-based training sessions to lenders.

The Department will continue to roll out the CSBFP online registration application, which permits lenders to transfer loan registrations and fees electronically. It is projected that, by March 2017, more than 80 percent of all loan applications and fees will be received and processed electronically.

The Department will continue to work with financial institutions to encourage the Direct Deposit Initiative. By March 2017, it is anticipated that over 90 percent of the claim and refund payments will be sent through direct deposit.

Through Futurpreneur Canada, the Department will continue to provide financing and mentoring support to young entrepreneurs.

The decrease in Planned Spending is mainly due to the end of currently approved funding for Futurpreneur Canada in 2016–17, as well as adjustments in the Canada Small Business Financing Program to more accurately reflect anticipated future claim payments.

Sub-Program: Service for Business

Description

This program develops strategies and operates programs that are focussed on improving access to relevant government information and services for Canadian businesses, in particular entrepreneurs and small and medium-sized enterprises (SMEs), including cooperatives. This includes, among other initiatives, the Canada Business Network (CBN) and BizPaL, which, in collaboration with other federal departments and agencies, provincial, territorial and municipal governments and other entities, provide one-stop access to specific government information on programs, services, permits, licences and regulations along with other business-related tools. CBN and BizPaL services are offered through the Internet and toll-free telephone. CBN officer-assisted services are also provided across Canada. The program is responsible for the development and implementation of Innovation, Science and Economic Development Canada's Service Strategy and reports on strategies for reducing paperwork burden on SMEs when complying with government requirements and obligations.

Budgetary Financial Resources: Service for Business (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
5,423,181 5,423,181 5,423,181
Human Resources (FTEs)
2016–17 2017–18 2018–19
48 48 48
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Small business and potential entrepreneurs access government information on business-related programs, tools, and services Number of client interactions on all Canada Business Network content delivered through the national web channel 2.8 million March 31, 2017
Cooperatives have access to relevant business related information, statistics, programs and services, and actions to increase awareness Number of policy and data initiatives started or maintained 25 March 31, 2017
The BizPaL Service becomes available to more Canadians through expansion Number of participating municipalities 790 March 31, 2017

Planning Highlights: Service for Business

In 2016–17, Innovation, Science and Economic Development Canada will support the Treasury Board Secretariat and work with other government departments, including Regional Development Agencies, to develop a new service strategy that aims to create a single online window for all government services, with new performance standards. This will include enhancing co-operative content on the CBN and working collaboratively with provincial, territorial and municipal partners to evolve the BizPaL service, including customization, bundling related information, providing online forms and transactional services.

ISED will continue to lead, with the Canada Revenue Agency, the implementation of the Business Number as the common business identifier across all federal departments and programs. The Business Number will make it simpler for businesses to interact with the government.

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Program: Industrial Competitiveness and Capacity

Description

This program helps Canadian industries increase their competitiveness in global markets and improve their capacity for developing and marketing innovative products and services. The program develops expertise on Canadian firms and sectors through research and analysis and engagement with associations, governments and leading firms. It applies this expertise to develop and contribute to policy, legislation and regulations aimed at strengthening the contribution of industry to Canada's innovation performance and economic well-being. This program collaborates with the private sector on industry development; attracts investment and promotes Canadian expertise; and advances initiatives for increasing productivity and supporting growth.

Budgetary Financial Resources: Industrial Competitiveness and Capacity (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
34,316,964 34,316,964 34,316,964 34,316,964
Human Resources (FTEs)
2016–17 2017–18 2018–19
225 226 226
Performance Measurement
Expected Result Performance Indicators Targets Date to be Achieved
Canadian industries have the capacity to prepare for and respond to risks and opportunities in domestic and global markets Canada's ranking among G7 countries for "value chain breadth" 6th March 31, 2017
Canada's ranking among G7 countries for "firm-level technology absorption" 6th March 31, 2017

Planning Highlights: Industrial Competitiveness and Capacity

In 2016–17, Innovation, Science and Economic Development Canada will continue to strengthen the manufacturing sector to foster globally competitive industries, while creating jobs and economic growth. The Department will collaborate with other departments, provinces, territories and municipalities to prioritize and support the development and adoption of emerging technologies crucial to manufacturing competitiveness.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Industry-Specific Policy and Analysis

Description

This program supports the creation of a business environment that is conducive to innovation and growth. It provides intelligence, analysis and advice on the challenges and opportunities facing industry as it seeks to be competitive in global markets. Industry-specific analysis is used to inform stakeholders on key issues and policies that are relevant to the competitiveness of targeted industries and their positions within globalized markets and value chains. In collaboration with partners such as industry associations and other government departments, the program develops and disseminates studies, research papers and statistical reports to create an evidence base for informed decision making. Targeted outreach assists industry in better understanding government policy and programs. This program also promotes the adoption and adaptation of new and emerging technologies and skills for business processes, and promotes strategic research and development, marketing, investment and international business development activities.

Budgetary Financial Resources: Industry-Specific Policy Analysis (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
28,305,744 28,305,744 28,305,744
Human Resources (FTEs)
2016–17 2017–18 2018–19
177 179 179
Performance Measurement
Expected Result Performance Indicator Target Date to be Achieved
Decision makers have access to informed analysis on trends and issues affecting the competitiveness of Canadian industries Number of collaborative research or policy initiatives started or maintained 32 March 31, 2017

Planning Highlights: Industry-Specific Policy and Analysis

In 2016–17, Innovation, Science and Economic Development Canada will support key sectors in the economy that have the potential to grow, attract investments, and create jobs, including value-added manufacturing and services, platform technologies (e.g., ICTs, clean tech) and tourism. The Department will develop strategies to attract transformative, long-term investments in the automotive sector to maintain and grow its economic footprint.

The Department will collaborate with other government departments to prioritize and support the development and adoption of emerging technologies crucial to manufacturing competitiveness. This includes conducting stakeholder workshops on emerging technologies.

The Department will also support other government departments on an approach to strategic investments in clean technology, in order to promote its use and development to enhance the competitiveness of Canada's manufacturers and resource sector. Innovation, Science and Economic Development Canada will engage stakeholders and provide analysis of key industry strengths, challenges and opportunities.

The Department will work with provincial, territorial and municipal counterparts to promote Canadian tourism and strengthen the Canadian brand abroad for tourists. This includes helping to grow local eco-tourism industries, where possible.

The Canada–India Information and Communications Technology (ICT) Working Group is a bilateral initiative between ICT sector stakeholders in Canada and India (government, industry, associations, and the incubator/accelerator community). As the Canadian co-chair and the secretariat to the working group, Innovation, Science and Economic Development Canada will coordinate efforts that support Canadian firms entering the Indian market, assist Canadian firms to gain access to major India-based supply chains and support Canadian firms doing business in India.

ISED will work with other departments and agencies to develop an Open Data initiative that would consider big data and make more of the data paid for by Canadians available to the public. The Department will also facilitate the Government of Canada's efforts to explore the potential uses of Big Data and data analytics by encouraging adoption in the private sector and academia, fostering the growth of the Big Data industry and increasing the use of Big Data within government.

Sub-Program: Economic Outcomes from Procurement

Description

This program implements the Defence Procurement Strategy, which includes the Industrial and Technological Benefits policy and the weighted and rated value proposition (VP). This program also implements the National Shipbuilding Procurement Strategy VP and manages the monitoring and verification of the former Industrial and Regional Benefits obligations. These seek to improve the economic outcomes from certain defence and security procurements across the country.

Budgetary Financial Resources: Economic Outcomes from Procurement (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
6,011,220 6,011,220 6,011,220
Human Resources (FTEs)
2016–17 2017–18 2018–19
48 47 47
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Industrial and Technological Benefits (ITB) obligations will generate business activities that contribute positively to Canada's overall economic performance, including direct, indirect, induced, and spin-off benefits for Canadian industry The dollar value of ITB business activities in Canada, undertaken and claimed by contractors with ITB obligations $2 billion March 31, 2017
Industrial considerations that will contribute to Canada's overall economic performance are incorporated into the evaluation of defence and major Coast Guard procurements Number of defence and major Coast Guard procurements that include a Value Proposition 12 March 31, 2017
Commitments under the National Shipbuilding Procurement Strategy contribute to the health and sustainability of the Canadian shipbuilding and marine industry Total dollar value of National Shipbuilding Procurement Strategy (NSPS) Value Proposition investments (i.e. investments made by shipyards in the broader marine industry as a result of NSPS resultant contracts) $6.4 million March 31, 2017

Planning Highlights: Economic Outcomes from Procurement

In 2016–17, ISED will continue to work collaboratively with the Departments of Public Services and Procurement, National Defence, and Fisheries, Oceans and the Canadian Coast Guard. The Department will monitor the IRB policy and implement the ITB policy, including a Value Proposition to leverage industrial benefits from certain defence and major coast guard procurements. In addition, the Department will administer the National Shipbuilding Procurement Strategy Value Proposition in support of a vibrant and growing domestic marine industry over the long term. ISED will also develop the Canadian defence, aerospace and commercial and civil marine sectors.

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Program: Community Economic Development

Description

This program advances the economic development of Northern Ontario communities in the same manner that regional development agencies support similar activities in other regions of Canada. Its main goal is to strengthen the Northern Ontario economy by providing financial support through contribution agreements for economic and community development projects led by the private, not-for-profit and public sectors, including support for official language minority communities. This program also contributes to improving the availability of broadband Internet access across Canada and provides computers for schools and not-for-profit organizations.

Budgetary Financial Resources: Community Economic Development (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
142,379,294 142,379,294 140,853,439 114,978,268
Human Resources (FTEs)
2016–17 2017–18 2018–19
114 113 113
Performance Measurement
Expected Result Performance Indicator Target Date to be Achieved
Targeted businesses and organizations in Northern Ontario create economic growth Number of Northern Ontario businesses created, expanded or maintained with FedNor assistance 1,700 March 31, 2017

Planning Highlights: Community Economic Development

In 2016–17, Innovation, Science and Economic Development Canada will continue to administer programs to support economic and community development projects and job creation in Northern Ontario. The Department will also continue expanding and improving access to broadband services across the country.

With the Regional Development Agencies, Innovation, Science and Economic Development Canada will develop a coordinated approach to identify and support competitive regional advantages and areas for diversification, including in clean technology and high-growth firms. The Department will work with other departments to promote economic development and create jobs for Indigenous Peoples.

The decrease in Planned Spending reflects fluctuations in approved funding of various grants and contributions programs. Further information is provided under the sub-program section of this report.

Details of planned activities under this program are available in the sub-program Planning Highlights sections below.

Sub-Program: Northern Ontario Economic Development

Description

This program promotes economic development and diversification, job creation, and sustainable, self-reliant communities in Northern Ontario. This is achieved by providing transfer payments to small and medium-sized enterprises and not-for-profit organizations, including municipalities, municipal organizations, community development organizations and research institutions, in the following priority areas: community economic development, business growth and competitiveness and innovation. As part of the Roadmap for Canada's Official Languages 2013–2018, this program also provides support for business and economic development activities that enhance the economic vitality of francophone communities throughout Northern Ontario and encourage sustainable growth. This program uses funding from the following transfer payments: Northern Ontario Development Program, Economic Development Initiative, and Community Futures Program.

Budgetary Financial Resources: Northern Ontario Economic Development (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
54,043,384 54,118,384 51,258,384
Human Resources (FTEs)
2016–17 2017–18 2018–19
87 87 87
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Targeted Northern Ontario businesses and organizations attract investors Dollars of investment leveraged per program dollar disbursed $1.80 March 31, 2017
Targeted Northern Ontario businesses and organizations create and maintain jobs Number of jobs created and maintained in Northern Ontario through FedNor programming investments 3,100 March 31, 2017

Planning Highlights: Northern Ontario Economic Development

In 2016–17, Innovation, Science and Economic Development Canada will continue to deliver programs to support economic development in Northern Ontario while implementing targeted initiatives to improve services and gain efficiencies. These initiatives include the Community Investment Initiative for Northern Ontario, the Targeted Manufacturing Initiative for Northern Ontario, investments in broadband deployment and the Economic Development Initiative of the Roadmap for Canada's Official Languages 2013–2018.

The decrease in Planned Spending from 2017–18 to 2018–19 is mainly due to the completion of various community infrastructure projects under the Canada 150 Infrastructure Program.

Sub-Program: Computer and Internet Access

Description

This program supports enhanced access to computers and the Internet in communities across the country. Through the Connecting Canadians Program, it funds the extension and enhancement of broadband infrastructure to reach previously underserved communities bringing with it new opportunities for entrepreneurship as well as access to new services. It is also responsible for maintaining current maps of broadband coverage across Canada and for working with other government partners to leverage support for broadband infrastructure. The Computers for Schools Program refurbishes surplus computer equipment donated by the public and private sectors, and distributes it to schools, libraries, not-for-profit organizations and Indigenous communities, ensuring access to digital tools needed for the skills for tomorrow. It also provides youth internship opportunities where young Canadians can gain valuable experience in the field of information and communications technologies. This program uses funding from the following transfer payments: Youth Internships, Computers for Schools, Computers for Schools – Technical Work Experience Program, and Connecting Canadians Program.

Budgetary Financial Resources: Computer and Internet Access (dollars)
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
88,335,910 86,735,055 63,719,884
Human Resources (FTEs)
2016–17 2017–18 2018–19
27 26 26
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Broadband internet access to unserved and underserved households Number of additional households in Canada with broadband access at 5 Mbps from services funded by Innovation, Science and Economic Development Canada 280,000 March 31, 2019
Schools, libraries, not for profit learning organizations and Indigenous communities receive refurbished computers Number of refurbished computer units delivered annually 80,000 March 31, 2017
Youth interns gain work experience in the information and communication technologies field Number of youth interns hired 164 March 31, 2017

Planning Highlights: Computer and Internet Access

In 2016–17, Innovation, Science and Economic Development Canada will continue to implement the five-year, $305-million Connecting Canadians program to enhance broadband Internet access for 280,000 households in rural and northern communities across the country. Further program intake is planned for 2016.

ISED will continue to enhance access to computer equipment for Canadian learners. Starting in 2016–17, the Computers for Schools (CFS) program received an additional $2 million over two years to expand the program and to extend access to refurbished computer equipment to non-profit organizations such as those that support low-income Canadians, seniors, indigenous communities, and new Canadians. In addition, ISED has committed to support the Government of Canada's efforts to resettle up to 50,000 Syrian refugees by providing refurbished computers and computer training through CFS. An anticipated 7,500 computers will be channelled through the CFS distribution network to refugees and resettlement organizations. Funding for this initiative totals $1,250,000 over two years ($850,000 2015–16 and $400,000 2016–17).

The decrease in Planned Spending from 2017–18 to 2018–19 is mainly due to the end of currently approved funding for the Computers for Schools program and its youth component, as well as a change in the funding for the Connecting Canadians Program.

Section II: Analysis of Programs by Strategic Outcome (continued)

Internal Services

Description

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

Budgetary Financial Resources: Internal Services (dollars)
2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
133,198,881 133,198,881 133,490,387 133,354,301
Human Resources (FTEs)
2016–17 2017–18 2018–19
1,172 1,172 1,172

Planning Highlights: Internal Services

The Department's internal services delivery and the management initiatives noted below will continue to be grounded in sound financial management practices, and designed to improve the efficient and effective delivery of programs and operations.

Innovation 2020

Innovation, Science and Economic Development Canada will focus on the implementation of its Innovation 2020 agenda, which integrates the management initiatives that aim to modernize the culture of the Department as well as the departmental response to the 2014 Public Service Employee Survey and Blueprint 2020 activities. The agenda includes activities in the following three areas to create an agile workforce, ensure sound stewardship and instill a culture of openness and transparency by adopting an 'operating as one' work style.

Agile Workforce

The Department is continuing work to develop an agile workforce, which will allow it to rapidly respond to emerging challenges. In 2016–17, initiatives in support of an agile workforce will include the development of a new human resource service delivery model and full implementation of streamlined staffing processes. The first full year of a development program for policy analysts at all levels will be rolled out, with targeted learning and development opportunities. The Department will also deploy videoconferencing tools.

Sound Stewardship

In 2016–17, ISED will build on existing practices to manage its financial resources, meet its legal and policy requirements and support its workforce. Sound stewardship will be ensured not only through rigorous operational and financial controls, but through renewed emphasis on performance standards and measurement. In addition to those traditional areas of stewardship, ISED is planning a key focus on the human resources element of sound stewardship, for example, through ISED's Mental Health Strategy, which will include offering mental health first aid training to employees.

Operating as One

ISED will focus on activities to strengthen its approach to managing horizontal priorities in 2016–17. The Department will deploy tools including the Service Lab and GCDOCS – which will be open by default. The Department will also emphasize common employee objectives of serving Canadians through the ISED mandate.

Section III: Supplementary Information

Future-Oriented Condensed Statement of Operations

The Future Oriented Condensed Statement of Operations provides a general overview of Innovation, Science and Economic Development Canada's operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Report on Plans and Priorities are prepared on an expenditure basis, amounts may differ.

A more detailed Future-Oriented Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Innovation, Science and Economic Development Canada website.

Future-Oriented Condensed Statement of Operations
For the Year Ended March 31, 2016 (dollars)
Financial Information 2015–16
Forecast Results
2016–17
Planned Results
Difference
(2016–17 Planned Results minus 2015–16 Forecast Results)
Total expenses 62,088,963 1,426,894,680 1,364,805,717
Total revenues 231,260,739 253,807,000 22,546,261
Net cost of operations before government funding and transfers (169,171,776) 1,173,087,680 1,342,259,456

The forecasted expenses for 2015–16 are unusually low, largely due to recent negotiations with a recipient to amend its transfer payment agreements. The new agreement calls for the recipient to make four unconditional repayments to cover all future obligations. This amendment is treated as a reduction of Grants and Contributions expenses, hence the lower number for 2015–16. An equivalent account receivable has been recorded. Together with other variations attributable to planned increases in transfer payments for certain programs, a $1.364 billion difference from the 2016–17 Planned Results arises.

Total revenues (net of those earned on behalf of government) are projected to increase by approximately $22.5 million (9.7 percent). The change is mainly due to an increase in ISED's net revenue recovery from the Department's revolving fund (Canadian Intellectual Property Office) to cover Internal Support Services costs. Other net revenues are expected to remain consistent with this fiscal year.

Supplementary Information Tables

The supplementary information tables listed in the 2016–17 Report on Plans and Priorities are available on Innovation, Science and Economic Development Canada's website.

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Tax Expenditures and Evaluations publication. The tax measures presented in that publication are the responsibility of the Minister of Finance.

Section IV: Organizational Contact Information

Corporate Management Sector
Innovation, Science and Economic Development Canada
235 Queen Street
2nd Floor, East Tower
Ottawa ON K1A 0H5

Email: ic.info-info.ic@canada.ca
Fax: 613–954–2340

Appendix: Definitions

Appropriation:
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures:
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
Departmental Performance Report:
Reports on an appropriated organization’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.
full time equivalent:
A measure of the extent to which an employee represents a full person year charge against a departmental budget. Full time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.
Government of Canada outcomes:
A set of 16 high level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.
Management, Resources and Results Structure:
A comprehensive framework that consists of an organization’s inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.
non budgetary expenditures:
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance:
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.
performance indicator:
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.
performance reporting:
The process of communicating evidence based performance information. Performance reporting supports decision making, accountability and transparency.
planned spending:
For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.
plans:
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.
priorities:
Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).
program:
A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.
Program Alignment Architecture:
A structured inventory of an organization’s programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.
Report on Plans and Priorities:
Provides information on the plans and expected performance of appropriated organizations over a three year period. These reports are tabled in Parliament each spring.
results:
An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.
statutory expenditures:
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
Strategic Outcome:
A long term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.
sunset program:
A time limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.
target:
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
voted expenditures:
Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.
whole of government framework:
Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government wide, high level outcome areas, grouped under four spending areas.
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