Launch of Research and Development Review Panel

Speaking Points

The Honourable Gary Goodyear, PC, MP
Minister of State (Science and Technology)

MaRS Centre, Toronto
October 14, 2010

Check Against Delivery

Thank you for being here today.

Canada is a place where business people and researchers can achieve excellence on a global scale.

Canadians understand the extraordinary potential of their country. We are aware of the major changes that have taken place in the global economy over the past decade, and we have shared the burdens of the world's economic challenges over the past two years.

Even during these difficult times, companies have continued to innovate, researchers have continued to make new discoveries, and new markets have emerged.

To respond to the economic downturn, our government introduced Canada's Economic Action Plan, a plan to renew and build Canada's infrastructure, to attract and retain top talent, to create jobs for Canadians, and to build the foundations of a stronger economy.

In 2007, the Prime Minister announced the Government of Canada's Science and Technology Strategy. In every budget since then, the government has increased its support for S&T in recognition of its importance in building a prosperous and vibrant society.

In fact, in the past four budgets, the government has invested an additional $8 billion to strengthen Canada's advantages in S&T, attracting and retaining talent, supporting excellence in science, bringing discoveries and innovation to the marketplace, and building S&T infrastructure. In fiscal year 2010–11, federal expenditures on S&T are expected to reach a historic high of $11.7 billion — of which $5.9 billion will be spent within federal departments and agencies and $5.8 billion will be directed to other sectors, such as higher education, business and non-profit, to support their S&T activities.

As a result of this strategy and the actions we have taken, Canada's scientists perform at world-class levels. Canada attracts the best and brightest minds in many scientific fields and has an enviable capacity to develop the talent and produce the discoveries that are the raw materials, if you will, of Canada's innovation system.

In spite of these achievements, it is widely acknowledged that challenges remain. Canada's underperformance in productivity and innovation are well documented.

The Science, Technology and Innovation Council drew attention to both Canada's productivity growth and its innovation performance challenges as risks to Canada's long-term global competitiveness.

Last year, in its report card on the state of innovation, the Conference Board of Canada gave Canada a "D" on innovation and commercialization.

The facts are clear. Canadian businesses can do better in terms of investments in research and development.

Compared to other industrialized countries, Canada ranks 16th in the Organisation for Economic Co-operation and Development in business investments in R&D as a percentage of GDP.

This is a serious matter. Canadian companies innovate less than our competitors.

When business invests in research, develops new products and services, and works to bring new ideas to the marketplace, this improves the quality of life of Canadian families. It allows the economy to grow and create the high-quality jobs of the future.

This is why the present situation needs to change.

While governments in Canada have provided world-leading support for private sector R&D, this has not resulted in the desired increases in business R&D, productivity or prosperity for Canadians. It is for this reason that, our government, in year two of Canada's Economic Action Plan, called for a comprehensive review of federal R&D to support its contribution to innovation and to economic opportunities for business.

Today, I am pleased to announce the creation of an independent panel of experts to review federal R&D investments. Our government has secured the participation of six distinguished Canadians, reflecting a diversity of private sector and public sector backgrounds and expertise, who have agreed to serve as members of the panel.

I am pleased that Tom Jenkins, Executive Chairman and Chief Strategy Officer of Open Text Corporation, has agreed to chair the panel. Tom understands what is required to grow a business in Canada that is focused on innovation and how to meet the challenges and seize the opportunities of global markets.

I am equally pleased to announce that Dr. David Naylor, Monique Leroux, Dr. Arvind Gupta, Dr. Bev Dahlby and Nobina Robinson will serve as members of the panel. The six members of the panel have outstanding experience and extensive knowledge of the Canadian economy and the many players in Canada's innovation system.

Dr. Naylor is president of the University of Toronto and a former senior scientist at the Medical Research Council of Canada.

Monique Leroux is Chair of the Board, President and Chief Executive Officer of Desjardins Group.

Dr. Gupta is a professor of computing science at the University of British Columbia and Scientific Director of the Mathematics of Information Technology and Complex Systems group (MITACS), an organization for the development, application and commercialization of mathematical tools.

Dr. Dahlby, professor of economics at the University of Alberta, has published extensively on tax policy and advised federal and provincial governments in Canada on business taxation reform.

Nobina Robinson is CEO of Polytechnics Canada and has held progressively senior appointments in the federal government and non-profit sector for the last 20 years.

The focus of the R&D review will be on federal programs and activities that are aimed at promoting and supporting private sector innovation. The panel has been asked to report back to the government in one year. It will offer analysis and recommendations to improve our system of support to enhance business innovation. This review will help provide recommendations on how the government can bolster Canadian businesses, create jobs and bring new ideas into the market place for the benefit of all Canadians.

We have framed the panel's challenge deliberately so that the exercise is not about shifting the balance of government support from curiosity or discovery-focused science to commercially oriented research. The case for public research and world-class excellence in science is strong, and we are committed to maintaining Canada's position at the top of the G7 in the amount of research performed by Canada's higher education sector.

The panel will conduct its own research and develop an informed view through broad consultations with the private sector, academic leaders, provinces and territories, and subject matter experts. The panel will also seek views from stakeholders on how the investments we make in R&D can work more effectively to build the knowledge-based economy and create skilled jobs.

This is a very important review, taking place at a critical time. We need to unlock the potential of this nation to be an innovation leader.

We must build on our solid foundation of strong finances, low taxes, a welcoming environment for business growth, and a ready supply of talent working at the leading edge of S&T. On behalf of the Government of Canada, I want to thank the members of the panel for taking on this work.

You have my full support and that of the entire government. We wish you the best of luck in your deliberations, and we eagerly anticipate your report in one year's time. Thank you very much.