Departmental Performance Report — For the period ending March 31, 2009

3.4 Additional Information for Program Activities by Strategic Outcome

Strategic Outcome: An Innovative Economy

Science and Innovation Sector — Science and Technology (S&T) and Innovation

Expected Result: Development and coordination of policy frameworks in support of an innovative economy

Performance Indicator	Results	Trend
Policy proposals that are brought forward to reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector	Policy proposals were brought forward aimed at advancing an innovative economy and were championed for inclusion in the budget. Budget 2009, tabled on January 27, 2009, included initiatives that will result in cumulative S&T funding of over $5 billion, of which $3.8 billion will be spent by next fiscal year	Improving
The Science and Innovation Sector (SIS) is coordinating the entire government S&T Strategy, released by the Prime Minister on May 17, 2007. It contained 37 policy commitments. SIS is tracking advances against these commitments	Industry Canada is coordinating and tracking implementation of the federal S&T Strategy. Industry Canada worked with the Assistant Deputy Minister Committee on S&T (DMCST), the Director General Committee on Strategy Implementation (DGSI) and corporate communications to prepare a public report outlining progress made in implementing the S&T Strategy. The report described the strong progress that has been made implementing the Strategy. Through a whole-of- government effort, federal departments and agencies have designed and implemented innovative programs to encourage private sector engagement in S&T, build Canada’s knowledge base and brand Canada as a destination of choice for talented, highly qualified S&T workers and students. These include tax measures to attract investment and new programs to attract top researchers and PhD students	New indicator
Innovation indicators prepared by Statistics Canada and others, such as the OECD	Government Expenditures on R&D (GOVERD) have remained steady at 18% of Gross Expenditures on R&D (GERD)1	No change
	Gross domestic expenditures on R&D amounted to 1.8% of GDP in 2008, slightly below the 1.9% witnessed in 20072	Declining
	In 2008–09, the business sector funded over $800 million/year of higher education R&D, accounting for more than 8% of total R&D performed by universities3	No change

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
101.1	100.0	99.7		74	70	-4

Meeting our commitments:

To foster innovation, Industry Canada supported granting councils in providing funding for research in priority areas and in enhancing their accountability and responsiveness. The Department bolstered the Canada Graduate Scholarships Program to offer an additional 1,000 scholarships, as announced in Budget 2007. These awards provided incremental federal support for top Canadian graduate students pursuing advanced training and research at Canadian universities. Opened to students from all disciplines, the Industrial R&D Internship program (IRDI), coordinated through the Natural Sciences and Engineering Research Council of Canada, provided interns with the opportunity to apply their research skills to real-world challenges while connecting firms with intellectual capital and potential future employees. The program placed 468 graduate student and post-doctoral interns in firms across Canada last year.

In support of an innovative economy, Industry Canada, with its partners, the Business Development Bank of Canada (BDC), the National Research Council Canada (NRC), and the Natural Sciences and Engineering Research Council (NSERC), took immediate action, aligned with the federal S&T Strategy to collaborate more closely and to share resources and expertise with the intent of accelerating the commercialization of publicly funded research that capitalizes on the individual strengths of these organizations. A steering committee was established to track the project’s progress, accelerate critical initiatives and identify fresh opportunities to work together effectively.

Industry Canada monitored progress in 5 priority areas and ensured that it was reported to ministers at the North American Leaders’ Summit in Montebello, Quebec, in August 2007. The 5 areas are Enhancing the Global Competitiveness of North America, Safe Food and Products, Sustainable Energy and Environment, Smart and Secure Borders, and Emergency Management and Preparedness.

To strengthen collaboration between federal departments and agencies, Industry Canada has worked through the Assistant Deputy Minister Committee on S&T to coordinate implementation of the S&T Strategy. The DMCST has created a platform to assist in coordination efforts between departments and agencies, and this approach has been successful, as described in the S&T Strategy progress report 2009.

Lessons Learned:

There are challenges in coordinating the activities of 20 federal science-based departments and agencies to implement the S&T Strategy. Industry Canada found that holding regular meetings and creating work plans with clear deliverables, timelines and milestones were crucial to keeping the work on track.

Industry Sector — S&T and Innovation

Expected Result: Innovative Canadian Industries

Performance Indicator	Results	Trend
Increase year-over-year in industrial R&D4 expenditures	2007P:  $16.2B 2008P:  $16.3B5 Change:  0.97% P: Preliminary estimate	No change
Increase year-over-year in output of high6 and medium7 technology industries relative to the total (for which the Industry Sector is responsible), subject to uncontrolled economic influence/impacts	2007: $B 62.6/524.7 = 11.9% 2008: $B 57.4/519.4 = 11.1%8 Change: -0.8%	Declining

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
9.5	101.0	90.4*		83	79	-4

* The variance is a result of Treasury Board submissions that were approved in 2008–09.

Meeting our commitments:

To support innovation in targeted Canadian industries, Industry Canada announced 2 funding programs: the Automotive Innovation Fund (AIF) and the CSeries Program. Under the AIF, Industry Canada signed one contribution agreement for up to $80 million to support strategic, large-scale R&D projects for the development of innovative, greener and more fuel-efficient vehicles. In addition, through the CSeries program, the Department announced its intention to make a repayable investment of up to $350 million for the research and development of new aerospace technologies that will lead to more fuel-efficient and safer commercial aircraft.

Furthermore, Industry Canada facilitated the completion of 10 industry-led Technology Roadmaps (TRM) enabling industries — from hydrogen fuel cells to textiles to health management — to focus more effectively on R&D investments. Industry Canada also supported the creation of the Green Aviation Research and Development Network (GARDN), a business-led centre of excellence for the aerospace industry.

Finally, strategic partnerships were forged with R&D institutions and Industry Canada collaborated with stakeholders to enhance Canada’s innovation capacity. For example, the Department collaborated with its federal partners to finalize the letter of intent and application process for the development of a facility to manufacture small lots of potential HIV vaccines for use in clinical trials.

Spectrum, Information Technologies and Telecommunications Sector — S&T and Innovation

Expected Result: Improved science and research capacity and commercialization of information and communications technologies

Performance Indicator	Results	Trend
Percentage of “big science” projects that utilize CANARIE’s advanced network	95% of Canada’s big science initiatives use the CANARIE Network	New indicator
Percentage of the top 50 Canadian R&D universities that utilize CANARIE’s advanced network	98% of the top 50 Canadian R&D universities are now connected to the CANARIE Network	New indicator
Number of new technologies and applications developed in the areas of intelligent systems and advanced robotics through Precarn’s collaborative model	Precarn developed 30 new technologies and applications	New indicator

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
18.4	30.2	29.5*		4	4	0

* The $28-million payment is the third instalment of the $120-million conditional grant for CANARIE’s Advanced Network. The amount paid is based on CANARIE’s cash flow requirements, reported annually to the Minister before an instalment is issued.

Meeting our commitments:

Network operations continue to be extended and optimized to deliver high-quality service to Canada’s research and education community. As a result, a total of more than 50 organizations now have access to, and use of, the CANARIE Network through the Infrastructure Extension Program. Additionally, and in support of an innovative economy, CANARIE encouraged the definition and implementation of collaborative projects that will accelerate the development of, and participation in, national and international cyber-infrastructure and e-research platforms.

Communications Research Centre Canada

Expected Result: Communications sector clients receive the required technical input to develop telecommunications policies, regulations, programs and standards

Performance Indicator	Results	Trend
Extent of client satisfaction (related to content, timeliness and usefulness) with Communications Research Centre technical inputs and assessments used to develop telecommunications policies, regulations, programs and standards	No formal client satisfaction survey was undertaken during the year. However, client feedback indicated that CRC contributes positively to policy, regulations and standards initiatives	Not applicable
Expected Result: Canadian companies use CRC-developed technology to enhance their product lines and competitiveness
Performance Indicator	Results	Trend
Sales revenue of Canadian communications companies with a technology link to Communications Research Centre	A study of CRC’s economic impact is undertaken every 5 years, with the next study due in 2010. The last study (2005–06) by an external consultant pointed to $1.6 billion in annual sales revenues from CRC spinoff companies, and cumulative industry sales resulting from CRC IP licences to the year 2005 of $520 million	Not applicable

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
43.1	60.3	57.4*		400	374	-26

* The variance is a result of increased salary costs from collective agreements, recapitalization of scientific equipment, increased respendable revenues from collaborative research agreements and campus operation activities, and spectrum monitoring support for the Vancouver 2010 Winter Games.

Meeting our commitments:

Industry Canada, through the CRC, provided technical input and expertise to its various partners and clients on multiple occasions. The CRC is participating in a multi-partner CANARIE project called the Health Services Virtual Organization (HSVO) to create a sustainable platform for the experimental development of shared information and communications technology (ICT)-based health services. As its contribution, the CRC provided infrastructure support as well as specialized software. The CRC also provided support to the Department’s telecommunications policy making and spectrum regulation through a number of projects and studies, including interference studies from new technologies, such as white space and unlicensed devices on DTV reception; review of orbital licence allocation proposals; cognitive radio simulations and analysis to support technical inputs to the IEEE 802.16 standards; and development of new techniques for detecting and identifying malicious attacks on networks as part of a Canadian and global effort to improve security for business and other transactions.

The Department also contributed to the International Telecommunications Union (ITU) in the areas of HDTV and 3D-TV quality assessment, Audio Loudness measurement, and Software Defined Radio (SDR). The President of the CRC chaired the ITU-R Study Group responsible for spectrum and efficient use for all satellite services. These contributions will ensure Canada’s industry interests are taken into consideration in the development of international regulations and standards.

The CRC also completed a number of projects for the Department of National Defence, including:

• demonstrating a proof-of-concept system for network traffic management for naval communications
• developing a flexible wireless access scheme for tactical networked radios
• advancing network and radio waveform techniques
• investigating cognitive radio and dynamic spectrum access concepts
• demonstrating the first phase of a sensor network concept
• evaluating technology of commercial broadband wireless, aerostat-based range extension, interoperability with public safety and emergency response communications
• enhancing technology for communications signal monitoring
• influencing NATO standardization of radio interoperability

The CRC also collaborated with Canadian companies. For example, 4 new start-up companies were provided business incubation (space rented out, with access to CRC expertise and support) at CRC's Innovation Centre, and 21 Canadian SMEs were provided with technical assistance, either through licensing or research collaboration.

Industrial Technologies Office — Special Operating Agency

Expected Result: Leading-edge research and development in Canadian firms

Performance Indicator	Results	Trend
Dollar of private sector investment leveraged per dollar of Agency investment in ITO projects	$2	New indicator

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
311.8	333.5	294.6*		96	85	-11*

* The variance is due to a high staff turnover.

Meeting our commitments:

Industry Canada successfully wound down the h2 Early Adopters (h2EA) Program for the March 31, 2008, closing date. The 2008 h2EA final evaluation indicated that government and industry representatives saw the program as being in line with industry needs when established in 2003. The approved projects represented over 50 companies, including technology providers, funding partners and suppliers. Most companies experienced technical learning and general improvements in their capabilities in hydrogen technology.

The Department also invested in 9 new Strategic Aerospace and Defence Initiative (SADI) projects valued at $395.4 million, which leveraged upwards of $723 million in additional R&D investment commitments, thereby enhancing competitiveness in the aerospace and defence industry.

In addition, the Department disbursed $238 million towards the legacy Technology Partnerships Canada (TPC) and Program for Strategic Industrial Projects (PSIP) programs.

---

¹ Statscan -Science Statistics

² Statscan -Science Statistics

³ Table 5: National Gross Domestic Expenditures on Research and Development, in the Total Sciences, Canada, Statistics Canada, 2009.

⁴ Intramural expenditures: expenditures for R&D work performed within the reporting company, including work financed by others.

⁵ Table 1-1: Total Intramural Research and Development Expenditures - By Industry , Statistics Canada, 2009

⁶ Industries targeted by the Industry Sector that are classified as “high tech” by the OECD are:  pharmaceuticals, aerospace and parts, and computers and electronic products (excluding SITT’s components).

⁷ Industries targeted by the Industry Sector that are classified as “medium-to-high tech” are: chemicals (excluding pharmaceuticals), motor vehicles and parts, other transportation equipment (excludes ship and boat building), and machinery.

⁸ National Economic Accounts – CANSIM Table, Statistics Canada, 2009