Departmental Performance Report for the period ending March 31, 2008

Results Information for Program Activities by Strategic Outcome

Results Information for Sub-Program and Sub-Sub-Program Activities by Strategic Outcome


Program Activity: Policy Sector — Marketplace

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Policy Sector – Marketplace
  • Marketplace Framework Policy Branch
  • Strategic Policy Branch
  • Microeconomic Policy Analysis Branch (MEPA)
  • Small Business Policy Branch
  • International and Intergovernmental Affairs Branch

Program Activity Summary:

This program activity is delivered through five sub-program activities:

  • Marketplace Framework Policy Branch
  • Strategic Policy Branch
  • Microeconomic Policy Analysis Branch (MEPA)
  • Small Business Policy Branch
  • International and Intergovernmental Affairs Branch
Description: Development of marketplace framework policy
Expected Result: Development and coordination of policy frameworks that support a fair, efficient and competitive marketplace
Indicator Results Trend
Legislative initiatives tabled and approved, aimed at improving Canada's broad marketplace framework (e.g. copyright, insolvency, intellectual property, competition policy) As of March 31, 2008, two bills were tabled and adopted, one bill came into force, Footnote 1 and one set of guidelines on existing legislation was published.Footnote 2 A report and a government response were tabled in Parliament. Not applicable*

* The tabling and adoption of legislative initiatives are the prerogatives of Parliament.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
9.1 12.1 10.7   87 74 13

The Telecommunications Policy Branch was moved from the Spectrum, Information Technologies and Telecommunications Sector to the Strategic Policy Branch.

Despite this, in 2007–08, actual usage of Full-Time Equivalents was less than planned, due to high staff turnover and lengthy staffing processes. The Sector is considering and/or implementing new initiatives to improve the recruitment and retention of staff.

Industry Canada committed to the following for 2007–08:

  • Examine protection of the Olympic marks and symbols for the 2010 Winter Games
  • Review the provisions in the Patent Act relating to Canada's Access to Medicines Regime
  • Provide support for the Advisory Committee on Paperwork Burden Reduction and implement recommendations from its March 2006 report
  • Report on findings from the Statistics Canada Survey of Regulatory Compliance costs
  • Coordinate efforts to establish a baseline measure of the regulatory compliance burden and identify initiatives to reduce it

Performance Analysis:

Forecasting and achieving results in a policy sector can often be challenging. For example, the timing of legislative initiatives is determined by broad governmental priorities, which may shift throughout the course of a year. In this context, Industry Canada was successful in achieving results on a number of initiatives which will contribute to a fair, efficient and competitive marketplace.

Industry Canada has taken action to help Canadian industries take advantage of the marketplace opportunities provided by the Vancouver 2010 Winter Games and to contribute to the financial success of the Games. Specifically, the Department brought forward recommendations that led to Bill C-47, The Olympic and Paralympic Marks Act. Bill C-47 received Royal Assent on June 22, 2007 and came into force on December 17 of the same year. The legislationFootnote 3 and related regulationsFootnote 4 provide special, time-limited intellectual property protection for Olympic and Paralympic words and symbols. The Act also prohibits "ambush marketing," which is marketing that seeks to capitalize on the goodwill of the Olympic Movement by creating a false, unauthorized association with the Games without making the financial investment required to secure official sponsorship rights.

A fair and efficient bankruptcy and insolvency regime helps to improve investment and confidence in the Canadian marketplace. Industry Canada developed reform recommendations to:

  • Facilitate the restructuring of viable but financially troubled companies
  • Improve the protection of wage earners
  • Make the insolvency system fairer and reduce abuse
  • Improve the administration of the system

The recommendations resulted in the tabling of Bill C-12,Footnote 5 an Act to Amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005. The bill was developed in consultation with a panel of leading insolvency law experts to address technical flaws contained in chapter 47 of the Statutes of Canada, 2005 (former Bill C-55), which were recognized as preventing it from operating as intended. Bill C-12 received Royal Assent on December 14, 2007, and is now referred to as chapter 36 of the Statutes of Canada, 2007.

In Advantage Canada,Footnote 6 the Government of Canada committed to adopt a principle-based approach to address the concern that there may be rare occasions when foreign investments by state-owned enterprises (SOEs) might not benefit Canada. On December 7, 2007 the Minister of Industry issued guidelines clarifying that sound principles of corporate governance and commercial orientation are considered when reviewing investments by foreign SOEs under the Investment Canada Act. The guidelines were published on the Industry Canada website.Footnote 7

To create a stronger and more flexible internal Canadian marketplace, the Minister of Industry moved forward on an action plan to strengthen the Agreement on Internal Trade (AIT).Footnote 8 With the support of the Minister of Industry, provincial and territorial ministers responsible for internal trade requested that labour market ministers consider a proposal to strengthen labour mobility in Canada, with a view to meeting the April 2009 target of allowing Canadians to work and have their occupational qualifications recognized anywhere in Canada.

To create an entrepreneurial advantage, the federal government committed in Advantage Canada to reducing the paperwork burden. The goal is a reduction of 20 percent by November 2008, which was one of the key recommendations contained in the Advisory Committee on Paperwork Burden Reduction's (ACPBR) March 2006 report. In particular, Industry Canada conducted analysis on findings of the Statistics Canada Survey of Regulatory Compliance Costs and released a second survey briefing in November 2007.Footnote 9

Best Practices:
The February 2007 BudgetFootnote 10 committed those involved in the Paperwork Reduction Burden Initiative (PBRI)Footnote 11 to establish a baseline count of administrative and information obligations by September 2007. Industry Canada faced the challenge of quickly developing a methodology to ensure that the counting process in each of the 13 departments and agenciesFootnote 12 was approached in a consistent manner and of providing advice to the participating departments in cases of ambiguity.

The Department successfully developed a set of instructions and Questions and Answers, which were distributed to departments, detailing the counting methodology and clarifying the roles and responsibilities of all involved. Throughout the counting process, Industry Canada held regular interdepartmental meetings, which proved very useful in helping departments and agencies complete their count in the time prescribed.

This collaborative interdepartmental network continued to work together following the counting phase. Industry Canada successfully used the network to facilitate the development of action plans, which outlined how each department and agency would identify and implement reductions to their administrative and information obligations' count.

To further enhance competition in Canada and the competitiveness of the Canadian economy,Footnote 13 the Minister of Industry launched the Competition Policy Review Panel on July 12, 2007. The Panel's core mandate was to review two key market frameworks, the Competition Act and the Investment Canada Act. The Panel reported to the Minister of Industry, on behalf of the Government of Canada in June 2008 with concrete recommendations.

Industry Canada also led the completion of the government's statutorily mandated review of Canada's Access to Medicines Regime (CAMR) and developed, with other departments, the report tabled in Parliament by the Minister of Industry on October 17, 2007.Footnote 14 The report takes into consideration the extensive public input received on how the CAMR can facilitate access to less expensive, generic versions of patented medicines in developing and least-developed countries, while respecting international trade obligations and maintaining the integrity of the domestic patent system.

Program Activity: Operations Sector — Marketplace

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Operations Sector – Marketplace
  • Regional Operations – Spectrum
  • Measurement Canada (Special Operating Agency)
  • Office of the Superintendent of Bankruptcy
  • Corporations Canada

Program Activity Summary:

This program activity is delivered through four sub-program activities:

  • Regional Operations – Spectrum
  • Measurement Canada (Special Operating Agency)
  • Office of the Superintendent of Bankruptcy
  • Corporations Canada
Description: Development of instruments and compliance with the marketplace framework
Expected Result: Marketplace fairness, integrity and efficiency is protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management
Indicator Results Trend
Public confidence in the insolvency system (expressed in the level of trustee compliance)
  • 92 percent of summary estate files are not older than three years
  • 65 percent of ordinary estates are not older than three years

No change

Improving

Renewal and continuous improvement of rules and requirements governing trade measurement Introduction of requirements for electronic electricity meters to address advances in technology and to reduce the burden on industry while providing continued consumer protection Improving
Public confidence in federal incorporation regime Satisfaction with overall quality of online service met 86.6 percent Improving
Year-over-year number of radiocommunications investigations conducted/resolved by the regions 717 radiocommunications investigations conducted/resolved by the regions
(Note: Investigations are complaint-driven and are not instigated by the Department without cause)
Declining

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Variance
91.7 90.9 82.4   1332 1308 24

Commitments for 2007–08:

  • Contribute to a new modern approach to Smart Regulation and to the reduction of the administrative and paperwork burden for Canadian businesses.
  • Office of the Superintendent of Bankruptcy:
    • Implement mandatory e-filing by trustees.
  • Measurement Canada:
    • Consult with key stakeholders to identify broad themes and key areas to be addressed in the Weights and Measures Act and the Electricity and Gas Inspection Act.
    • Survey international government jurisdictions to ensure that proposed amendments to Canada's legislative framework facilitate trade, etc.
    • Establish regulations that emulate international standards governing trade measurement.
  • Corporations Canada:
    • Develop an integrated information technology system to process transactions internally and to encourage online filing (includes considering issues identified by stakeholders and providing a status report on the operations of the Canada Business Corporations Act).
    • Launch pre-approved Articles.

Performance Analysis:

Industry Canada, as part of Advantage Canada,Footnote 15 is working towards a 20 percent reduction in the administrative and paperwork burden on Canadian businesses by November 2008.

Lessons Learned:
With the introduction of mandatory e-filing, it was recognized that there is a need to maintain manual process capabilities in the event that e-filing technology experienced an extended outage.

E-filing, a service provided by the Office of the Superintendent of Bankruptcy (OSB), is a quick, easy and secure method for trustees and proposal administrators to file prescribed documents. With Directive No. 9R3 coming into force, all new summary administration bankruptcies and Division II proposals, and all new ordinary administration bankruptcies and Division I proposals, must be filed electronically since January 8, 2007 and June 4, 2007, respectively. All documents required through the administration of those estates are also submitted and responded to electronically.Footnote 16

Corporations Canada continued the development of the one integrated information technology (IT) system. In the construction phase of the project, the development of the CBCA Online Incorporations has been completed. The new design will offer more guidance to electronic filers, with a more user-friendly system including online step-by-step instructions on how to incorporate, a more exhaustive help feature and a new detailed glossary. Over 150 activities were identified, defined and business rules documented.

Pre-Approved Schedules Service (PASS),Footnote 17 which allows the registration of pre-approved documents, was used by seven major clients, intermediaries and law firms with a total of 42 schedulesFootnote 18 pre-approved. Corporations Canada received a total of 1,300 certificates of incorporation through this new initiative in 2007–08. This new service improved productivity and increased the turnaround time for incorporations by giving service providers the opportunity to have their standard schedules approved by Corporations Canada. Once approved, the standard schedules can be used repeatedly through the Online Filing Centre. Where standard schedules are submitted with a pre-approved corporate name or a numbered name, a certificate of incorporation will be issued automatically without the need for human intervention.

As part of its legislative review to modernize the Weights and Measures Act and Electricity and Gas Inspection Act, the statutes governing trade measurement in Canada, Measurement Canada consulted with over 1,200 stakeholders via email and contacted 50 companies and associations directly in 2007–08.

As part of this review, Measurement Canada performed an environmental scan of other international government jurisdictions to inform proposed amendments to Canada's legislative framework (e.g., mandatory inspection periods, measuring device owner responsibilities, etc).

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Spectrum, Information Technologies and Telecommunications Sector – Marketplace
  • Spectrum / Telecom Program
  • Electronic Commerce Branch

Program Activity Summary:

This program activity is delivered through two sub-program activities:

  • Spectrum / Telecom Program
  • Electronic Commerce Branch
Description: Development of regulations, policies, procedures and standards governing Canada's spectrum and telecommunications industries and the digital economy
Expected Result: A policy and regulatory framework to govern Canada's radiocommunications and telecommunications infrastructure in support of Canadian marketplace requirements and shape the digital economy
Indicator Results Trend
Degree of client satisfaction in the Canadian marketplace with the current policy and regulatory framework Not available* Not available*

* A client satisfaction survey is being developed and will be conducted in 2008–09 fiscal year.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
50.1 61.4 58.7   367 333 34

Industry Canada committed to the following in 2007–08:

  • Update legislative and regulatory frameworks and monitor the impacts of actions already undertaken to assess their effectiveness in:
    • Reducing the regulatory burden on businesses
    • Promoting competition in the telecommunications industry
    • Making regulation more efficient
  • Review industry and regulatory developments to assist in the successful introduction of Wireless Number Portability (WNP) for Canadians
  • Issue a consultation paper to establish a policy framework for the auction of spectrum for Advanced Wireless Services (AWS)
  • Release a consultation paper that will lead to the auction of spectrum in the 2500 MHz range
  • Complete consultations for the licensing of public Air–Ground radio service for use on board aircraft, and to facilitate the introduction of new wireless technologies
  • Provide a recommendation to the Minister of Industry on the assignment of licences in satellite communications
  • Negotiate Canadian positions and proposals at the World Radiocommunication Conference (WRC) 2007
  • Negotiate Mutual Recognition Agreements (MRAs) with APEC, Israel and Japan
  • Negotiate 15 Canada–U.S. Arrangements to allow the introduction of new services
  • Negotiate and finalize the DTV (Digital Television) Final Allotment Plan with the U.S.
  • Develop national standards for the introduction of new equipment for ultra-wideband technology and broadband over power lines
  • Continue activities related to emergency telecommunications planning, preparedness and response, and support R&D on network security
  • Continue to promote the growth of the online marketplace in Canada and the conduct of e-commerce and e-business across all sectors of the economy
  • Work with partners to improve confidence in the marketplace by protecting individual privacy and curbing harmful Internet content

Performance Analysis:

Telecommunications Modernization

In 2007–08, Industry Canada continued to advance the government's agenda for telecommunications policy reform. Key activities included:

  • The Governor-in-Council (GIC) issuance of a final Order changing the CRTC local telephone “forbearance” framework to accelerate deregulation in areas where there is competition for the benefit of Canadian businesses and consumers. As a result of this initiative, over two-thirds of Canadian households now receive local telephone service from competing telecommunications service providers that are not subject to economic regulation.
  • The creation of an independent telecommunications consumer agency. In July 2007, 10 telecommunications service providers (TSPs) formed the Commissioner for Complaints for Telecommunications Services Inc. (CCTS).Footnote 19

Spectrum Management and Engineering

There is a growing demand for mobile services and, consequently, for spectrum, which is a finite resource. In 2007–08, Industry Canada undertook several priority actions to foster a robust telecommunications infrastructure and offer consumers more choices.

Work continued on consultations regarding licensing in the 2500 MHz range and the Air–Ground radio service. Although the papers were not released during 2007–08 as planned, a consultation on each is expected to be released in 2008–09.

In late 2007, the Department issued the Policy Framework as well as the licensing framework for the Auction for Spectrum Licences for AWS and other Spectrum in the 2 GHz Range.Footnote 20

In June 2007, Industry Canada announced the results of its 2006 satellite licensing initiative.21 Ciel Satellite and Telesat Canada were selected to provide 12 satellite licences in order to develop as many as 10 new Canadian satellites capable of being used by Canadian broadcasters and telecommunications service providers to introduce new, and improve existing, services for Canadians. The process represented the largest spectrum licensing initiative ever undertaken in Canada and will lead to Canadian consumers and businesses gaining access to emerging satellite broadcasting and telecommunication services such as high-definition TV, Internet Protocol Television (IPTV), satellite broadband and multimedia consumer services.

Lessons Learned:
Issues arose over the announcement of the results of the 2006 satellite licensing initiative, resulting in delays in the issuance of approvals needed by both companies to commence their satellite projects. Industry Canada is exploring the use of a more transparent licensing process for satellites, such as auctions, where assignments of licences would be made to those entities who value the spectrum the most.

The Department also issued new antenna siting and approval procedures in January 2008.  These new procedures aim at ensuring greater community consultation and continued deployment of radiocommunications systems across Canada.

The CRTC has announced that August 31, 2011 is the shutdown date for analog over-the-air television. In 2007–08, Industry Canada continued to work on the introduction of DTV. Efforts included:

  • Development of TV receiver standards (BETS-7)
  • Development of a new allotment plan for post-transition DTV
  • Development of technical regulations for post-transition
  • Continued negotiations with the U.S. FCC (Federal Communications Commission) on the post-transition spectrum sharing agreement
  • Development of consumer information

At the International Telecommunication Union (ITU) World Radiocommunication Conference (WRC) 2007, Industry Canada successfully negotiated Canadian and CITEL (Inter-American Telecommunication Commission) proposals on all WRC agenda items resulting in:

  • Additional spectrum identified for advanced mobile
  • Protection of terrestrial systems from satellite interference
  • Safeguarding DND interest in HF bands from broadcasting interference
  • Allocation of new spectrum for scientific satellites and weather prediction
  • Allocations to aeronautical services for safer flights and aircraft testing
  • Adoption of favourable conditions for Canadian satellites
  • Provisions for disaster relief and mitigation

Best Practice:
Canada's success at the WRC 2007 highlighted the importance of a well-organized preparatory process. The delegation to the WRC included seven young professionals who participated in this process. This is a key element of succession planning and of Canada's continued success at future conferences.

In 2007–08, Canada and the U.S. initiated or concluded the negotiations on approximately 15 treaty-binding arrangements covering a number of frequency bands.Footnote 22 These arrangements ensure that rapidly evolving wireless services and technologies can be deployed in a timely manner in border regions.

Industry Canada continued to implement five Mutual Recognition Agreements (MRAs).Footnote 23 MRAs allow Canada and its MRA partners to mutually recognize conformance assessment results (i.e., testing and certification) for telecom and radio apparatus. In 2007–08, Industry Canada also worked with APEC member economies to develop a new MRA on the equivalency of technical requirements for radio and telecom terminal equipment.

Security and Infrastructure Protection

Industry Canada has continued its activities related to emergency telecommunications planning, preparedness and response. The Department has supported the necessary R&D within government, industry and academia to sustain the knowledge base required to ensure that Canada's telecommunications networks continue to be secure. In particular, the Department established partnerships to investigate network vulnerability with the goal to help secure the telecom networks infrastructure as well as to better position Canadian security products in the global marketplace.

During the past year the Department participated in the Cyber Storm II exercise, which tested Canada's cyber readiness and conducted exercises to test Industry Canada's operational readiness. Through these exercises, Industry Canada was able to confirm that the availability and continuity of the networks were maintained in the specific scenarios tested.

Lessons Learned:
Cyber Storm II highlighted the importance of having a sufficient number of trained emergency management personnel to respond to this type of event, and of having suitable facilities and equipment to coordinate the response.

Industry Canada also provided much-needed coordination of international security standards efforts. The Department was instrumental in creating and promoting a database of international security standardization activities. This is seen by stakeholders as the preferred vehicle to capture regional and international security standards activities. The Department also provided technical expertise to promote and advance the development of new high-quality cyber security technical standards and influenced telecommunications security standards to advance Canadian telecommunication industry interests.

E-Commerce and the Online Economy

According to recent Statistics Canada data (Survey of Electronic Commerce in Canada, 2007,Footnote 24 released April 2008), e-commerce in Canada continued its double-digit growth at 26 percent in 2006–07. The value of the Canadian online market in 2007 was approximately $62.7 billion, up $12.7 billion from 2006. Industry Canada analyzes these surveys in terms of progress and identification of barriers. The results are distributed through papers and presentations.

To help shape the online economy, Industry Canada works with its partners to improve confidence in the marketplace by protecting individual privacy and curbing threats to the Internet and online markets. Key actions led by the Department in 2007–08 included:

  • Continuing the mandatory review of the Personal Information Protection and Electronic Documents Act (PIPEDA). Areas for legislative change have been identified.
  • Developing options for introducing new initiatives to combat spam and other related online threats and to strengthen enforcement.

Program Activity: Office of Consumer Affairs — Marketplace

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Office of Consumer Affairs
  • Consumer Policy
  • Consumer Information and Coordination

Program Activity Summary:

This program activity is delivered through two sub-program activities:

  • Consumer Policy
  • Consumer Information and Coordination
Description: Promotion of consumer interests
Expected Result: Strengthened responses to consumer issues
Indicator Results Trend
Number of initiatives responding to consumer issues with active engagement of OCA 33 initiatives responding to consumer issues with active engagement of the OCA Improving

 

Financial Resources ($ millions) 2007–08   Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Variance
5.3 6.6 6.4   23 23

Commitments for 2007–2008:

  • Support harmonization of federal/provincial/territorial consumer policies through the Consumer Measures Committee
  • Work with partners on pressing consumer issues such as payday lending industry, identity theft and consumer redress
  • Continue research regarding issues of consumer vulnerability, sustainable consumption, and consumer issues in the virtual marketplace
  • Develop cost-effective non-regulatory approaches, including increased consumer awareness to address consumer marketplace issues
  • Enhance the Consumer Information website
  • Address the recommendations made in the 2004–05 evaluation study on the management of the Contributions Program for Non-Profit Consumer and Voluntary Organizations

Performance Analysis:

In 2007–08, Industry Canada continued to work in a collaborative effort with provincial and territorial partners by:

  • Co-chairing the Consumers Measures Committee (CMC), Footnote 25 a federal-provincial-territorial committee of consumer protection officials and participating in each of its working groups.
  • Representing the CMC before the House Standing Committee on Access to Information, Privacy and Ethics in May 2007, to discuss federal and provincial initiatives to prevent and combat identity theft.Footnote 26 CMC identity theft information kits Footnote 27 were included in targeted media outreach events, including cultural and Aboriginal news outlets and National Fraud Prevention Month, helping consumers to protect themselves against identity theft.
  • Leading a CMC research group to survey consumer protection agencies on best enforcement practices. Results from this survey will be used in 2008–09 and subsequently reported upon in the 2008–09 DPR to explore opportunities for improving compliance and inter-jurisdictional cooperation in consumer law enforcement.
  • Continuing to actively assist and support provinces as they seek Order-in-Council designations to regulate payday lending, under the provisions of section 347.1 of the Criminal Code of Canada, thus providing greater protection for consumers of these high-cost loans.
  • Participating in the development of the Government of Canada's Food and Consumer Safety Action Plan, which ultimately led to the creation of proposed legislation to improve consumer health and safety protection.Footnote 28

Lessons Learned:
For the past several years, the Office of Consumer Affairs (OCA) has been leading an initiative to amend the Criminal Code of Canada to pave the way for provinces and territories to regulate limits on the cost of borrowing, and certain other business practices of payday lenders. OCA learned to take into account the diverse needs and interests of provinces while providing a national framework for dealing with an important consumer issue.

Additionally, OCA continued to seek opportunities to develop cost-effective, non-regulatory approaches with other stakeholders to address consumer marketplace issues. The OECD Committee on Consumer Policy,Footnote 29 which OCA currently chairs, developed research recommendations and policy guidance on consumer dispute resolution and redress, mobile commerce, online identity theft, and demand-side economics. OCA completed its chair responsibilities of three international standard (ISO) working groups that finalized guidance standards to help organizations improve customer satisfaction (customer dispute resolution, complaint handling, and codes of conduct).Footnote 30

Industry Canada also worked with private sector partners by initiating discussions with the Canadian apparel industry on the use of values-based labelling (e.g., organic fibres, natural fibres) on textiles and apparel, which resulted in the development and delivery of a series of education seminars for Canadian apparel manufacturers in various Canadian cities.

As a follow-up to the Consumer Trends ReportFootnote 31 published in July 2005, Industry Canada continued its research efforts, including:

  • Two studies on the marketplace challenges of immigrants and low-income consumers, which will ultimately contribute to the development of a vulnerable consumer discussion document in 2008–09 and will be reported upon in future DPRs
  • A study on methodologies for assessing the impact of new regulations on consumers, in support of broader, longer-term government initiatives to develop an economic and market impact analysis package for regulators
  • Research and exploration of technology and its impact on consumers, leading to the publication of a Consumer Trends Update on Radio-Frequency IdentificationFootnote 32

Finally, OCA improved the application process for its contributions program through the use of online guidance products and applications,Footnote 33 and continued to enhance its consumer information websiteFootnote 34 by better integrating the portal and the websites of the Office of Consumer AffairsFootnote 35 and Consumers Measures Committee.Footnote 36 Website visits to Consumer Information, the Office of Consumer Affairs, and the Consumer Measures Committee combined averaged 98,000 per month. New information products developed during the fiscal year included a cellphone choice checklist and guideFootnote 37 and an information guide on the upcoming analog-to-digital television transition.38

Program Activity: Competition Bureau — Marketplace

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Competition Bureau – Marketplace
  • Enforcement with Respect to Competition
  • Framework Policy and Advocacy with Respect to Competition
  • Services with Respect to Competition

Program Activity Summary:

This program activity is delivered through three sub-program activities:

  • Enforcement with Respect to Competition
  • Framework Policy and Advocacy with Respect to Competition
  • Services with Respect to Competition
Description: Development of and compliance with marketplace frameworks with respect to competition
Expected Result: Increased compliance with legislation under the Competition Bureau's jurisdiction
Indicator Results Trend
Volume of commerce affected by Competition Bureau criminal enforcement activity $330 Million New indicator
Victim-to-complainant ratio (mass-marketing fraud) Of the total number of victims of mass marketing fraud scams resolved through Bureau enforcement activity, only 2 percent complained to a relevant authority New indicator

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
45.7 47.5 50.5   446 400 46

Industry Canada committed to the following for 2007–08:

  • Ensure the enforcement of the Competition ActFootnote 39 by the Competition Bureau
  • Advocate the position, in several matters over the fiscal year, that reliance on competitive, free markets — and not government regulation — is the best way to efficiently allocate resources
  • Build capacity in regional offices
  • Complete an evaluation of the Bureau's results and activities in combatting cartels
  • Achieve significant inroads in eliminating bogus product claims from appearing in marketing materials and in removing such products entirely from the Canadian marketplace
  • Reduce fraudulent representations
  • Focus competition advocacy efforts on the health care sector
  • Examine potential causes for high pharmaceutical retail prices and how to make related markets work better
  • Publish a draft paper for public consultation followed by a final report that will inform the public and policy-makers of the Bureau's findings on self-regulating health care professions and, if applicable, the costs to consumers and the economy in terms of reduced competition
  • Undertake further modernization of the intellectual property regime

Performance Analysis:

Competition Enforcement

The Bureau strengthened the enforcement capacity of its regional offices by increasing the responsibility of investigating local cartels, with a strong emphasis on bid rigging. This regional strategy is based on investigators being close to the action. With the location of regional offices across the county, the Bureau is able to develop a better understanding of what is occurring in local markets, and where intervention by the Bureau is warranted.

The total volume of commerce affected by the Bureau's criminal enforcement actions exceeds $330 million.

The Bureau also underwent a mid-term evaluation of its anti-bid-rigging activities. The evaluation focused on initiatives and activities carried out by the Bureau across the country to combat bid rigging. The report will be made available in the fall of 2008.

The Community of Federal RegulatorsFootnote 40 recognized the Bureau with an Innovation award for its work on Project FairWeb.Footnote 41 This project enabled the Bureau to redesign work processes involved in intelligence gathering and Internet sweep exercises in a more systematic manner, yielding positive results of exponential proportions in marketplace compliance. Both domestic and international departments and agencies have benefited from Project FairWeb from an intelligence, compliance and coordinated enforcement perspective. The Bureau's intelligence report, supported by KayviumFootnote 42 technology, is now key to setting priorities of the North American health fraud compliance and enforcement agenda.

Competition Advocacy

The Competition Bureau completed a study on Canada's self-regulated professionsFootnote 43 in December 2007, which found that rules that limit advertising, set prices for services and restrict who can offer professional services may go further than necessary to protect the public interest. These rules can lead to higher prices, limit consumer choice and restrict access to the type of information consumers need to make decisions.

The Bureau's report focused on five professions: accountants, lawyers, optometrists, pharmacists and real estate agents. While the examples contained within the study are based on these five professions, the principles and findings can be applied to any self-regulated profession.

Since its completion, several professional groups have contacted the Bureau to discuss the study. While some are still in the process of studying the recommendations, others have indicated that they are in the process of revising their regulations and some have already instituted new regulations as a result of the study. Note the example here in Best Practices.

Best Practices:
The College of Registered Dental Hygienists of Alberta reports that it was careful to follow the recommendations and principles of good regulation from the Competition Bureau's study on Canada's self-regulated professions when it drafted its new advertising regulations.

In two years, the Bureau plans to assess how the five professions examined in the study have done in implementing the recommendations.

The Bureau also completed its Generic Drug Sector Study.Footnote 44 The Bureau found that to compete for space on pharmacies' shelves, generic manufacturers offer rebates or other payments to pharmacies in most provinces. Public sources and information provided by parties interviewed for this study indicate that these are on average 40 percent of the price the pharmacy is invoiced. Under the present system, in most provinces, pharmacies have limited incentive to pass on these cost savings to public and private plans, and consumers are paying out of pocket.

The Generic Drug Sector Study attracted significant media attention (both broadcast and print coverage) in all of Canada's major markets. Coverage of this magnitude increases the reach of the Bureau's messages and leads to greater results.

Sector contacts made since the report was released and developments in the marketplace indicate that the study is providing important benefits. The impact of the report on the Canadian generic drug sector is the subject of an upcoming session at a Canadian institute conference on drug pricing and reimbursement. Market contacts indicate that the report has brought clarity to the issues needing to be addressed in the sector and has provided an important impetus for the development of measures to provide the benefits of generic drug competition to consumers. The Bureau study was also cited in the May 21, 2008, B.C. Pharmaceutical Task Force Report calling for major reforms to the manner in which the province obtains and reimburses generic drugs.

The Competition Bureau will be continuing its work in the generic drug sector by examining possible options for obtaining the benefits from competition and the impediments to their adoption.

Fraud Prevention and Awareness

In March of 2008, the Bureau launched Project False Hope,Footnote 45 an education and enforcement initiative aimed at targeting cancer-related health fraud online. Project False Hope has already uncovered dozens of Canadian-operated websites offering cancer-related products that raise concerns under the false and misleading provisions of the Competition Act. As part of this initiative, the Bureau has designed two web tools to educate consumers on how to recognize scams: Anatomy of an Online Health ScamFootnote 46 and Health Fraud Awareness Quiz.Footnote 47

In March of 2008, the Bureau also launched the FACT (Fraud Awareness for Commercial Targets) campaign,Footnote 48 an outreach and education initiative that provides business and not-for-profit organizations with the tools necessary to avoid becoming victims of fraud. The campaign provides practical web-based tools to businesses so they can recognize fraud and stop it before they are scammed.

Program Activity: Canadian Intellectual Property Office — Revolving Fund

Strategic
Outcomes
Program
Activities
Program Sub-Activities
A Fair, Efficient and Competitive Marketplace Canadian Intellectual Property Office – Revolving Fund
  • None

Program Activity Summary:

No sub-program activities or sub-sub-program activities exist for this program activity.

Description: Granting of intellectual property rights and the dissemination of intellectual property information in order to accelerate Canada's economic development
Expected Result: Deliver quality and timely intellectual property products and services
Indicator Results Trend
Turnaround times for:    
Patents
07–08 Target: 80 percent
Longer term: 18 months instead
of 24
  • 72 percent of applications with a request for examination are processed in less than 24 months
Improving
Trademarks
07–08 Target: 6 months
Longer term: 6 months
  • Processed within 6.8 months of filing date
Declining
Copyrights
07–08 Target: 3 working days
Longer term: 5 working days to allow focus on industrial design target
  • Processed within 1.8 working days of receipt of application
Improving
Industrial design
07–08 Target: 13 months
Longer term: 9 months instead of 10
  • Processed within 10 months of the receipt of application
Improving
Expected Result: Increase awareness and use of intellectual property
Indicator Results Trend
Percentage of increased awareness and use of intellectual property 36 percent are familiar with intellectual property (baseline) No change

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
1.0 117.9 (21.3)*   1,037 945 92

* As a Special Operating Agency within Industry Canada, with a revolving fund authority, the Canadian Intellectual Property Office (CIPO) finances its operations entirely from revenues generated by fees received from the provision of IP services.

Industry Canada committed to the following for 2007–08:

Modernization of the intellectual property regime to encourage creativity and innovation and to promote affordable access to new knowledge for Canadians.

Performance Analysis:

In 2007–08, CIPO proposed changes to the Industrial Design Regulations to modernize, simplify and clarify administrative processes and to reduce the administrative burden on business. These amendments were published in Part I of the Canada GazetteFootnote 49 on June 7, 2008. On October 1, 2007, regulatory amendments to the prescribed time limits in trademarks opposition proceedings and a new practice with respect to the procedure before the Trademarks Opposition Board came into force. These amendments, along with previous changes to the Patent Rules and the Regulations for Industrial Design, Integrated Circuit Topography and Copyright that came into force June 2, 2007 aim to improve Canada's regulatory IP administrative framework.Footnote 50

In 2007–08, CIPO improved communications with its clients by creating a new Client Service home page on its website. In addition, CIPO launched the Canadian Industrial Designs Database containing a complete collection of Canadian industrial design registrations — over 110,000 entries going back to December 1861. Canadians can now search the database and determine whether a design already exists before filing a new design, study a trend by gathering information on the evolution of Canadian designs over 150 years or look for new opportunities to improve old designs.

CIPO has strived to deliver quality IP products and services to its clients and stakeholders in a timely fashion and has worked to foster greater awareness and more effective use of IP by Canadians. CIPO strongly supports the government in its efforts to increase innovation by Canadians. To this end, CIPO has developed a Five-Year Strategic Plan entitled Moving Forward to Canada's Advantage.Footnote 51 The plan identifies five strategic directions: client services, outreach, the IP framework, international activities and our people.

To help CIPO deliver its Five-Year Strategic Plan and achieve its vision to become a leading IPO, a multi-year business transformation initiative called Enterprise-Business Renewal (EBR) was launched. The EBR initiative is a portfolio of projects designed to transform the way CIPO does business by improving business processes, renewing systems and expanding the range of electronic services.

CIPO continues to improve in carrying out its mandate while contributing to its vision of becoming a leading IPO office. Progress was made in industrial design, copyright and patents in reducing the turnaround times and inventory levels.

Higher first-examination turnaround time for trademarks was the result of additional effort placed on reducing the secondary examination backlog, which was beneficial to clients. In addition, employee attrition in the Trademarks Branch was slightly higher than expected. While higher this year, Trademarks Branch has — in the past five years — improved its average application turnaround time from 17 months to 6 months. Corrective measures have been put in place and full production capacity is expected in the next fiscal year.

Lessons Learned:
72 percent versus 80 percent of the service standard was achieved in patents due in part to insufficient capacity in examination and the reallocation of resources to key initiatives, which will generate service improvements in the longer term. More realistic forecast turnaround times were put in place in regard to examination capacity for next fiscal year.

On January 28, 2008 a Patent Prosecution Highway (PPH) Pilot Program was launched between CIPO and the United States Patent and Trademark Office. PPH provided a means of significantly accelerating the examination of patent applications and of improving the patent quality.

The PPH is an initiative currently being used by leading IPOs globally, such as the United States Patent and Trademark Office (U.S.PTO), the Japan Patent Office (JPO), the United Kingdom Intellectual Property Office (UK IPO), and the Korean Intellectual Property Office (KIPO). This initiative contributes to the improvement of the worldwide IP system and benefits Canadians by influencing international IP administrative policies and practices, as well as sharing and acquiring best practices.Footnote 52

Additional information on CIPO's achievements is chronicled in our annual report.Footnote 53

Program Activity: Policy Sector — Science and Technology (S&T) and Innovation

Strategic
Outcomes
Program
Activities
Program Sub-Activities
An Innovative Economy Policy Sector – S&T and Innovation
  • Advisory Council on Science and Technology (ACST) Secretariat
  • Strategic Policy Branch
  • Microeconomic Policy Analysis Branch (MEPA)
  • Innovation Policy Branch
    • Canadian Institute for Advanced Research (CIAR)
    • Pierre Elliott Trudeau Foundation
    • Canada Foundation for Innovation (CFI)
    • Canada–Israel Industrial Research and Development Foundation (CIIRDF)
    • Council of Canadian Academies

Program Activity Summary:

This program activity is delivered through four sub-program activities and five sub-sub-program activities:

  • Advisory Council on Science and Technology (ACST) Secretariat
  • Strategic Policy Branch
  • Microeconomic Policy Analysis Branch (MEPA)
  • Innovation Policy Branch
    • Canadian Institute for Advanced Research (CIAR)
    • Pierre Elliott Trudeau Foundation
    • Canada Foundation for Innovation (CFI)
    • Canada–Israel Industrial Research and Development Foundation (CIIRDF)
    • Council of Canadian Academies
Description: Development of economic and scientific policy
Expected Result: Development and coordination of policy frameworks in support of an innovative economy
Indicator Results Trend
Policy proposals that are brought forward reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector. The Government of Canada's Science and Technology (S&T) Strategy Mobilizing Science and Technology to Canada's Advantage, championed by Industry Canada to guide Canada's investments in S&T was released in May 2007.Footnote 54 Not applicable
  The Department developed several proposals to enhance innovation and champion their inclusion in the Budget. As a result, Budget 2008Footnote 55 increased support to the following programs:
 
  • $140 million for Genome Canada to ensure Canada remains at the forefront of genomics research.
Not applicable
 
  • $80 million per year to Canada's three university research granting councils in support of industrial innovation, health priorities, and social and economic development in the North.
 
  • $25 million over two years to support 500 prestigious Vanier Scholarships per year for PhD students studying in Canada.Footnote 56
 
  • $21 million over two years to fund 20 Canada Global Excellence Research Chairs to strengthen the ability of Canadian institutions to attract and retain top science leaders.
 
  • $10 million over two years to support the Canadian Light Source Research Synchrotron.Footnote 57

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
52.6 148.9 148.8   114 184* 70

* This number pertains to the Industrials Technology Office (ITO), policy branch, portfolio coordination branch, Science Technology Innovation Council (STIC), and Full-Time Equivalents (FTEs) covering S&T activities of the Microeconomic Policy Analysis Branch (MEPA) and Strategic Policy Branch.

Industry Canada committed to the following in 2007–08:

  • Develop an S&T Strategy
  • Review the accountability and value for money of the granting councils' activities and implement the recommendations that emerge from this review
  • Foster collaborative relationships with the provincial and territorial ministries to promote innovation
  • Research and analyze characteristics of high growth and innovative small businesses, the barriers faced by small business in the development and adoption of innovation, and the commercialization of research

Performance Analysis:

To ensure Canada is a world leader in science and technology, Industry Canada championed the development and implementation of the Government of Canada's S&T Strategy "Mobilizing Science and Technology to Canada's Advantage," released by the Prime Minister in May 2007. Science and technology (S&T) are key drivers to make Canada more productive and competitive and address social priorities. To attain these goals, the strategy focuses on advancing four core principles (promoting world-class excellence, focusing on priorities, fostering partnerships and enhancing accountability) and fostering three advantages (entrepreneurial, knowledge and people). The accountability and value for money review of the granting councils' activities was completed and the review's findings and recommendations were incorporated into the S&T Strategy.

  • The committee responsible for the strategy was co-chaired by Industry Canada. The committee developed an overall approach to implementation focused on ensuring effective, coherent, coordinated implementation of the 36 commitments and 60 action items in the strategy, by achieving results, establishing clear accountabilities and demonstrating progress on a regular basis. Progress was achieved on all strategy commitments and action items by the end of the year, and some commitments were fully implemented. Key highlights include:
    1. Launching the Science Technology and Innovation Council (STIC); this included the consolidation of the roles and responsibilities of the Advisory Council on Science and Technology, the Council of Science and Technology Advisors, and the Canadian Biotechnology Advisory Committee.
    2. Renewal of three Networks of Centres of Excellence (AUTO21, Canadian Water Network, and the Stem Cell Network) to help turn Canadian research and entrepreneurial talent into economic and social benefits for all Canadians.
    3. Creation of a Competition Policy Review Panel to review key elements of Canada's competition and investment policies to ensure that they are working effectively.

Best Practices:
Following the release of the Science and Technology (S&T) Strategy, Industry Canada organized a series of regional round tables with a select group of influential stakeholders aimed at exploring ways to move Canada's S&T Strategy forward. These round tables provided business people with the opportunity to share their views on the government's S&T Strategy. Participants welcomed the strategy, encouraging the government to take rapid action to implement its commitments. They offered private sector perspectives on how the government could foster entrepreneurial, knowledge and people advantages through a more competitive business environment that encourages business investment in R&D, advanced technologies and skilled workers.

To guide the intelligent and strategic investment of public funds for government S&T investment, Industry Canada supports horizontal S&T policy coordination and coherence within the Industry Portfolio, the wider federal S&T community, and with other levels of government. The Department established a committee to strengthen coordination with the National Research Council, the Social Sciences and Humanities Research Council and the Natural Sciences and Engineering Research Council, policy work, programs, federal-provincial relations and appointments. As well, the Department supported horizontal S&T policy development with other government departments. Industry Canada also worked with provincial and territorial partners in a dialogue on S&T and innovation-related issues. The Federal–Provincial–Territorial Working Group on Innovation meetings informed the design and facilitated the implementation of the Centres of Excellence for Commercialization and Research (CECR)Footnote 58 program announced in Budget 2007.Footnote 59

To promote the creation and growth of innovative Canadian enterprises and their ability to commercialize research, Industry Canada actively monitors and disseminates information concerning venture financing. For example, the Department held a Venture Capital Seed-Stage Seminar in July 2007, attended by researchers and entrepreneurs alike. It also published a quarterly report entitled the Venture Capital MonitorFootnote 60 and helped fund and organize the first annual Venture Capital Public Policy Forum held in Québec City in association with the North American Venture Capital SummitFootnote 61. Advocacy by the Department influenced two Federal 2008 BudgetFootnote 62 announcements: earmarking $75 million for the Business Development Bank of Canada for the creation of a new private Canadian Venture Capital fund;Footnote 63 and changes to streamline processes related to eligible cross-border venture capital investment flows.Footnote 64

Program Activity: Industry Sector — Science and Technology (S&T) and Innovation

Strategic
Outcomes
Program
Activities
Program Sub-Activities
An Innovative Economy Industry Sector – S&T and Innovation
  • Aerospace, Defence and Marine Branch
  • Automotive and Transportation Industries Branch
  • Life Sciences Branch
  • Resource Processing Industries Branch
  • Service Industries and Consumer Products Branch
  • Policy and Sector Services Branch
  • Canadian Biotechnology Secretariat

Program Activity Summary:

This program activity is delivered through seven sub-program activities and one sub-sub-program activity:

  • Aerospace, Defence and Marine Branch
  • Automotive and Transportation Industries Branch
  • Life Sciences Branch
    • Genome Canada
  • Resource Processing Industries Branch
  • Service Industries and Consumer Products Branch
  • Policy and Sector Services Branch
  • Canadian Biotechnology Secretariat
Description: Development of initiatives that stimulate research and development in order to accelerate commercialization in emerging technologies and priority sectors
Expected Result: A stronger knowledge-based economy in all industrial sectors
Indicator Results Trend Explanation of Results
Innovation gap (R&D expenditures as a percentage of Canadian industrial expenditures – trend and international comparisons). R&D IntensityFootnote 65
Canada
2005 = 1.98 percent 2006 = 1.95 percent
U.S.
2005 = 2.59 percent 2006 = 2.6 percent
Declining R&D Intensity (R&D/GDP) is a commonly accepted measure of innovation. It basically illustrates the share of output that is allocated to R&D. The data demonstrate that Canada has been trending downward slightly while the U.S. has held steady.
Overall assessment of climate, programs, decisions and other major factors supporting innovation in Canadian industries, such as:    
  • Intellectual property protection
Patents Granted:
USPTOFootnote 66
US origin, 93,691
(-8.39 percent)
Canadian, 3,970  
(-3.03 percent)

CIPOFootnote 67
U.S. Origin, 7,560 (3.7 percent), Canadian 1,687 (12.8 percent)

Declining

 

 

Improving

Patents granted in the U.S. declined for both Canadian and U.S. companies. However, the losses to U.S. companies were double those of Canadian firms. In Canada, the growth in patents granted favoured Canadian companies by more than three times relative to U.S. firms.
  • Highly qualified personnel supply (scientists and engineers)
Scientists & engineers as a share of total employment
Canada: 10 percentFootnote 68
U.S.: 14.4 percentFootnote 69
Improving In both 2004 and 2005, Canadian degree-granting institutions granted 0.25 degrees (bachelors, masters, and doctorates) per capita, while the U.S. figure was around 0.21.

While these figures are comparable, it is interesting to note that, over that time, more than 47 percent of the degrees granted in Canada were in the fields of science and engineering compared to just 30 percent in the United States.Footnote 70

  • Tax incentives for R&D
  • Regulatory   environment*
  • Impact of other government department programs (subsidies, demonstrations)*
  • Industry structure (concentration, profitability and ownership)*
R&D Expenditures $9.271 billion, an increase of 3 percent over the previous year's expenditures of $8.952 billion.Footnote 71 Improving

In 2007, the Scientific Research and Experimental Development (SR&ED) Tax Credit provided over $4 billion in tax assistance, making it the single largest program that supports business R&D in Canada.

Industries for which Industry Canada is responsible account for 56.8 percent of total Canadian R&D expenditures. The three percent growth rates follow an increase of 13 percent in 2006, which followed two years of decline in R&D expenditures. The increasing R&D expenditures may be a sign of Canadian companies moving up the value chain in order to remain competitive in the face of competition from emerging economies.

* Decision was taken that these indicators are of less value to measure the success of Industry Canada and have been revised for 2008–09.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
11.8 24.1 19.4   123 79 44

In line with the gradual shift to a more policy-oriented role for the Department and to strengthen management oversight of the positions remaining in the regions, a reassessment and realignment in the regional offices was considered timely and essential. As a result of the reassessment, several regional officers were placed on surplus status in November 2007.

Industry Canada committed to the following for 2007–08:

  • Industry Canada will develop seven more Technology Roadmaps for low-cost aerospace, composites manufacturing, processing and repair, diagnostics, prognostics and health management, aerospace protective coatings, computational fluid dynamics, textiles, wireless and contact centres.
  • Industry Canada will co-lead the Manufacturing Goods and Sectoral and Regional Competitiveness Working Group within the Security and Prosperity Partnership of North America.
  • The Department will lead the Public Service of Canada Nanotechnology Network.
  • Industry Canada will ensure the federal government's efforts to improve commercialization outcomes reflect the needs and interests of Canadian industries.
  • Industry Canada will work closely with renewable and alternative energy stakeholders to examine advances in Canadian technology capabilities, identify commercialization and industrial development opportunities presented by the Department's rapid growth, and explore domestic and international partnerships for business development.

Lessons Learned:
The Department has a strong capacity for analysis from a domestic perspective, but analyses of issues facing Canadian industrial sectors are most appropriately examined in a global context. However, there are gaps in the availability of data needed to consistently situate issues on a global level. The same is true with respect to the Department's relative strength in assessing individual issues or sectors versus its capacity to effectively conduct analysis of horizontal issues that cut across more than one sector (e.g., Global Value Chains, low-cost country sourcing). By addressing these gaps in the future, Industry Canada should be able to provide higher quality analysis that better informs policy and program decisions.

Performance Analysis:

Private sector investment in R&D is a key driver of innovation. Canadian private sector R&D intensity has declined slightly from 1.98 percent in 2005 to 1.95 percent in 2006;Footnote 72 Canada remains behind other OECD countries in this regard.

Advantage Canada, the Government's long-term economic plan, is aimed at creating advantages to help improve our quality of life and international competitiveness. In addition, the Government's Science and Technology (S&T) Strategy, Mobilizing Science and Technology to Canada's Advantage, will support Canadian researchers and innovators in developing new ideas and bringing them to the marketplace. To further support these broad government objectives, Industry Canada is engaging industry in priority sectors, and government, to create conditions that will stimulate R&D, innovation and commercialization.

Industry Canada completed a range of analyses, allowing government and industry to better identify and understand the challenges and opportunities surrounding emerging technology value chains in Canada. Examples of activities carried out in 2007–08 include:

  • Analysis of opportunities for development of new value chains that link the bio-resource, chemicals and manufacturing sectors.
  • Facilitation of a strategic plan by the chemical cluster in Sarnia, Ontario, to advance the adoption of underutilized agricultural and forest residues as renewable feedstock for production of chemicals, plastics and fuels.
  • Completion of two needs assessments on the California market, in coordination with the Canadian Consulate General in Los Angeles and San Francisco, to evaluate opportunities for Canadian clean energy technologies. The project was successful in identifying and assessing opportunities for Canadian firms in hydrogen and fuel cells, waste-to-energy, and solar power, and in identifying opportunities for follow-up activities in 2008–09.
  • Organization of a Canada–U.S. Ocean Energy Bilateral Partnership Program in cooperation with DFAIT, NRCan and the Ocean Renewable Energy Group. The outcomes were a fully developed Canada–U.S. statutory document in the showcasing of Canadian capabilities in the ocean energy sector via participation in the Global Marine Renewable Energy Conference in New York City.
  • Commissioning of a study entitled: Opportunities for Canadian Stakeholders in the North American Large Wind Turbine Supply Chain. The study identified specific opportunities for manufacturing, service provision and technological innovation along the large wind turbine supply chain. The study applied not only to those already engaged in the wind energy industry, but other Canadian industries that have the materials, processes, skills and technology to respond to opportunities in order to help build a sustainable and competitive Canadian wind energy industry.

In addition, Industry Canada engaged key stakeholders in creating tools and participating in forums that facilitate private sector R&D. For example, Industry Canada is facilitating assessment of the use of nanotechnology by supporting cooperation activities between Canada, the U.S. and Mexico. A workshop co-chaired by Industry Canada was held on February 6, 2008. The workshop focused on topics related to recent discussions of ISO TC229 Working Groups on Measurement and Characterization, and Health Safety and Environment. Researchers from Mexico, the U.S. and Canada who are active in exploratory and applied areas of nanotechnology R&D lectured on recent work, reference materials, toxicological studies and knowledge gaps which impede development and commercialization. The Department also successfully transferred the information-sharing component for the Public Service of Canada Nanotechnology Network to a Health Canada-developed electronic technology platform ("NanoNetwork"), which better allows for information archiving and for setting up communications between the new sub-groups of the NanoNetwork.

In conjunction NRCan, Industry Canada assumed the role of co-Chair and Secretariat of the International Partnership for the Hydrogen Economy (IPHE). The IPHE organizes international research and development, demonstration and commercial activities related to hydrogen and fuel cell technologies among 16 countries and the European Commission. As a member of the IPHE, Canada has joined 10 international R&D projects with IPHE member nations, has increased its contribution to global demonstration projects, and has enhanced its collaborative efforts related to key international policy issues such as the harmonization of codes, standards, and safety protocols through IPHE working groups.

The Department also completed six of seven Technology Roadmaps (TRM) it had planned for 2007–08. To date, Industry Canada has developed or been involved in the development of 26 TRMs. TRMs are used to determine those technologies and skills that companies within a sector require to meet identified future market demands. Deliverables for 2007–08 include the identification of 21 joint projects for the Low Cost Aerospace TRM; the participation of 220 members (industry, academia, and OGDs) in the Diagnostics, Prognostics & Health Management TRM; and the identification of two collaborative projects for the Aerospace Protective Coatings TRM. The Wireless, and Contact Centres TRMs, have both been completed. These two roadmaps were the first joint projects done with HRSDC's Sector Council program. The Textiles TRM, developed in collaboration with the Quebec and Ontario governments, has also been completed, with the implementation stage planned for 2008–09. The National Research Council is leading the TRM on Computational Fluid Dynamics, which is still under development.

Through Industry Canada's activities, the Canadian private sector continues to benefit from information, tools, and forums that encourage and promote the adoption and adaptation of technology, and that help companies focus their R&D investments.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Science and Technology (S&T) and Innovation

Strategic Outcomes Program
Activities
Program Sub-Activities
An Innovative Economy Spectrum, Information Technologies and Telecommunications Sector – S&T and Innovation
  • Information and Communication Technologies Branch
    • CANARIE Inc.
    • Precarn Inc.

Program Activity Summary:

This program activity is delivered through one sub-program activity and two sub-sub-program activities:

  • Information and Communication Technologies Branch
    • CANARIE Inc.
    • Precarn Inc.
Description: Support advanced and applied research within the Canadian ICT Sector for the development of innovative technologies
Expected Result: Improved research capacity and commercialization of ICTs
Indicator Results Trend
Access to advanced research networks across Canada and the application of ICTs to industrial sectors CANARIE Inc.Footnote 73 improved access to advanced research networks across Canada by connecting 375 institutions. This is a 25 percent increase over the number of institutions connected in 2006–07. Improving
  Precarn Inc.Footnote 74 supported 12 market-driven ICT project innovations in the areas of intelligent systems technologies and robotics. Declining

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
27 18.2 15.1   4 4 0

Industry Canada committed to the following for 2007–08:

  • Oversee the execution and management of 4th pillar organization funding agreements, including securing funding for the five-year renewal of CANARIE Inc., the execution of audits, and review and analysis of future program options for CANARIE Inc. and Precarn Inc. not-for-profit organizations.

Performance Analysis:

Advanced Research – CANARIE Inc.

Lessons Learned:
The five-year funding cycle for Canada's advanced research network does not encourage long-term commitments of Canadian researchers and scientists to collaborate on large, e-science projects in a systematic way. It also hinders Canada's ability to remain at the forefront of advanced networks, networking technologies and their utilization. Industry Canada, in collaboration with the CANARIE Board of Directors, has commissioned a study to review the key issues and possible options.

In 2007–08, Industry Canada continued its support of the CANARIE Inc. network through an investment of $15 million representing the second instalment of the current $120 million five-year conditional grant.

Achievements included the transition to a new backbone network and the launch of the Infrastructure Extension ProgramFootnote 75 and the Network-Enabled Platforms Program.Footnote 76 These programs support CANARIE Inc. objectives to expand and upgrade the advanced research network and to develop, demonstrate and implement next-generation technologies. CANARIE continued to work with partners such as provincial networks, federal labs, academia, the private sector, and international peer networks. The goal is to promote network development and innovation, identify technology and policy issues, and facilitate collaboration. The following Canadian institutions have access to the CANARIE Inc. advanced research network: 95 universities, 77 colleges, 58 research institutions, 34 hospitals/health services/health institutions (excluding Quebec), 56 federal government labs, and 11 cultural institutions.

Intelligent Systems and Robotics – Precarn Inc.

In 2007–08, Precarn Inc. funded 12 new pre-competitive R&D projects in the fields of intelligent systems and advanced robotics across the country, for a total of $4.4 million. In 2007, over 400 private sector researchers and staff were actively engaged in Precarn Inc. projects.

Best Practices:
Precarn Inc.'s successful partnering model is now being emulated by other government initiatives such as the Centres of Excellence for Commercialization and Research.

Since 2004–05, Precarn Inc. has invested in 83 technology development projects. From April 2005 to December 2007, Precarn Inc. had invested $11.23 million, which levered a total investment of $31.1 million into the commercialization of R&D. As of December 31, 2007, Precarn Inc.'s community of interest included 4,700 researchers, including over 700 experts in intelligent systems and robotics. A majority of assisted companies are small to medium-sized Canadian companies.

Program Activity: Communications Research Centre Canada (CRC)

Strategic
Outcomes
Program
Activities
Program Sub-Activities
An Innovative Economy Communications Research Centre Canada (CRC)
  • CRC – Wireless and Photonics Research
  • CRC – Defence R&D
  • CRC – Research Support

Program Activity Summary:

This program activity is delivered through three sub-program activities:

  • CRC – Wireless and Photonics Research
  • CRC – Defence R&D
  • CRC – Research Support
Description: Conducts research on advanced telecommunications and information technologies to ensure an independent source of advice for public policy and to support the development of new products and services for the ICT Sector
Expected Result: Telecommunications policies, regulations and standards are developed using Communications Research Centre Canada (CRC) technical input
Indicator Results Trend
Number of CRC technical inputs (trends and assessments) to groups developing policies and regulations related to the telecommunications sector, including the Spectrum, Information Technologies and Telecommunications Sector (SITT) of Industry Canada, the International Telecommunication Union (ITU), the Institute of Electrical and Electronics Engineers (IEEE), and the Canadian Radio-television and Telecommunications Commission (CRTC). 10 major technology-related inputs to Industry Canada, SITT, CRTC, ITU and IEEE. New indicator
Expected Result: Canadian companies in the telecommunications sector use CRC-developed technology to improve their product lines and their competitiveness
Indicator Results Trend
Number of intellectual property (IP) licences issued to Canadian companies. 11 new IP licences have been issued to Canadian companies in FY 2007–08 and an additional 23 internationally.

CRC ended the FY with a total of 207 active IP agreements in Canada and an additional 206 worldwide.
Improving *
Sales revenue of Canadian companies in the telecommunications sector that were formed as a result of CRC involvement or are spinoffs from these companies. $1.6 billion annual sales (data for 2005)

$520 million cumulative sales revenue from CRC IP licensing (to 2005)

Not available **

* The numbers are very similar to those of last fiscal year, with only a very small upward trend.

** An economic impact study of company sales revenues resulting from CRC technologies and IP licences is conducted every five years. The next study is scheduled for 2010.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
41.5 45 42.9   411 388 23

Industry Canada committed to the following for 2007–08:

  • Perform R&D on communications technologies of importance to Canada
  • Provide independent technical advice to the SITT sector
  • Develop standards to facilitate efficient delivery of telecommunications and broadcasting applications for ITU and IEEE
  • Address challenges such as network security, emergency communications and spectrum research
  • Develop innovative and affordable solutions for bringing broadband services to all regions of Canada
  • Through partnership activities or licensing, transfer new technologies to SMEs for commercialization and sales to a worldwide market
  • Create an integrated CRC Laboratory for Photonic Components and Systems Research
  • Complete a laboratory for antenna systems testing
  • Assist or partner with other departments and agencies on communications issues

Performance Analysis:

Research and Development

During 2007–08, CRCFootnote 77 continued to conduct R&D on communications technologies of significant importance to Canada, including radio, satellite, broadcasting and fibre optics. This resulted in:

  • 274 external scientific papersFootnote 78 and conference presentations published
  • 38 technical reports and memoranda
  • 16 new patent applications
  • 11 new licences issued for Canadian companies to use CRC technology (with an additional 23 licences worldwide)
  • 39 new research partnership and contract agreements with industry and academia

Contracting-in and IP revenues of $3.37 million are 46 percent higher than 2006–07 due to the sale of some patent rights and also partially as a result of more activity and interest within the sector.

Some of the R&D topics addressed during the year include:

  • Development of production beta software that allows users to collaborate over optical networks
  • Development of cognitive radio standards for incorporation into WiMax systems as well as technology prototypes based on these standards
  • Improvements to CRC-developed attack detection software for network security applications
  • Improvements to algorithms that enhance viewing of three-dimensional television
  • Release of a new version of CRC's software-defined radio suite with better performance, particularly for public safety applications
  • Evaluations of digital television receivers for terrestrial broadcasting

Two new CRC laboratories for photonics and antenna research were officially opened during the year. The photonics laboratory will enable CRC to conduct leading-edge research in photonics components and optical networking. The antenna research lab will support higher-frequency wireless research. Both are now in partial operation.

Update:
The photonics laboratory project began in 2001. Although on budget, the project was completed several years late. The resolution of post-commissioning operational issues continues to be a challenge.

Technology Advice – Policy, Standards and Regulations

CRC conducted research activities in support of spectrum policy and regulations for Industry Canada. CRC also works with organizations such as the ITU and the IEEE in the development of standards to facilitate the efficient delivery of telecommunications and broadcasting applications. Key activities included:

  • Studies and papers on future advanced wireless services; spectrum property rights; the impact of emerging standards on licensing of rural broadband delivery systems; and technological aspects of regulating the Internet
  • Work at the ITUFootnote 79 in areas of propagation, video and audio quality assessment, and serving as chair of the satellite services group
  • Contributing to the development and enhancements of two IEEEFootnote 80 standards: for cognitive radio and on the use of white spaces for rural and remote broadband delivery
  • Chairing the NATO broadband over power line task group. The task group studied two types of issues: noise interference caused by using this technology to deliver broadband services, and the potential need to set radiation limits on such systems. Since companies in the U.S. and Canada may be interested in using power lines for broadband distribution, the CRCNATO report was copied to Industry Canada. The Department will have to consider these issues before allowing large-scale use of this technology
  • Working on the integration of the CRC Spectrum Explorer software with Industry Canada infrastructures and on constructing three evaluation direction-finding units for the Vancouver 2010 Winter Games

Support to Other Government Departments

As the federal government's primary telecommunications research laboratory, the CRC also assists or partners with other departments and agencies on communications issues.

In support of the Department of National Defence, CRC carried out research projects in 2007–08 valued at $7.38 million on a cost-recovery basis. Funding levels for defence projects have increased over the previous year by 38 percent and several new DND client-partnerships have been established. Key activities included:

  • The demonstration of a proof-of-concept system that manages communications services over the multiple wired and wireless strategic communications links used by DND
  • Research into adaptive wireless systems for tactical mobile communications that has influenced both the development of a new military radio interoperability standard and future directions in radio spectrum management enabled by such technology
  • Technical analysis and planning at the international level for the new constellation of search and rescue satellites

CRC also carried out work on behalf of the Canadian Space Agency:

  • A preliminary study of the feasibility of using micro-satellites to provide northern broadband communications has been completed
  • Support was provided to the definition of the Canadian Space Agency (CSA)Footnote 81 satellite communications roadmap

Program Activity: Technology Partnerships Canada

Strategic
Outcomes
Program
Activities
Program Sub-Activities
An Innovative Economy Technology Partnerships Canada (renamed Industrial Technologies Office) – S&T and Innovation
  • TPCR&D Support Program
  • h2 Early Adopters Program
  • Program for Strategic Industrial Projects

Program Activity Summary:

This program activity is delivered through three sub-program activities:

  • TPCR&D Support Program
  • h2 Early Adopters Program
  • Program for Strategic Industrial Projects
Description: Encouragement of commercialization through strategic investments in innovative research and development
Expected Result: Commercialization encouraged through strategic partnering in innovative research and development
Indicator Results Trend
Total number of projects (which represents the number of strategic partnerships)
  • 1 SADI project
  • 303 TPC R&D projects
  • 4 h2EA demonstration projects
  • 3 PSIP projects
No trend*

*Trend information is unavailable as the SADI program was launched in April 2007. TPC's terms and conditions expired on December 31, 2006 and no new projects were contracted. The h2EA program ended on March 31, 2008.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
397.3 475.5 431.8   118 99 19

Performance Analysis:

In February 2007, Technology Partnerships Canada (TPC) was renamed the Industrial Technologies Office (ITO,)Footnote 82 within Industry Canada as the Special Operating Agency to manage both the Strategic Aerospace and Defence Initiative (SADI)Footnote 83 and projects previously contracted through the TPC program. In 2007–08, the agency also continued to manage projects previously contracted under the Hydrogen Early Adopters (h2EA) program, and continued the role as administrator of the Program for Strategic Industrial Projects (PSIP).

ITO's programs contribute to the heart of Canada's innovation-based economy because innovation is essential to research and development (R&D). In today's knowledge-based global economy, Canadian companies must constantly invent better ways of doing things. Innovative companies are the ones more likely to grow. Canadian companies must turn change to their advantage and specialize in higher value-added parts of the global supply chain.

Lessons Learned:
In moving forward with the implementation of the SADI program, ITO benefits from lessons learned under the TPC Program, which was created to invest in R&D activities in the aerospace, defence, environmental and enabling technology industries.

Measures of the TPC program were limited to quantitative indicators focused on repayment levels and job creation. This limits the recognition of the investment benefits to Canada and Canadians — the social, economic and environmental benefits of the project results. With the development of the SADI program, it was recognized that qualitative measurements are important to gauge the value of the investments in the long term. As a result, SADI's performance includes quantitative and qualitative measures to assess the overall benefits of the investments: the results of collaborative partnerships and the technological, economic, environmental and social benefits to Canadians.

In 2007–08, ITO developed a performance management plan to help record the performance of approved programs and projects as they progress. ITO developed an Integrated Risk Management (IRM) approach in line with Industry Canada's risk management approach. This approach was developed to help the agency manage risk in a proactive manner. ITO's risk management is linked to the Results-Based Management Accountability Frameworks (RMAFs) and Risk-Based Audit Frameworks (RBAFs)Footnote 84 developed for each of its programs.

In February 2008, the first SADIFootnote 85 project was announced. Diamond D-JET Corporation (Diamond) in London, Ontario, received a $19.6 million SADI repayable investment towards its $95.2-million D-JET program.Footnote 86 This SADI investment will facilitate Diamond's development of an all-composite, single engine for use in its new class of small business jets. It will also help to develop the company's expertise in products for general aviation. Additional benefits of the D-JET program include attracting foreign investment to Canada and leveraging private sector investment in R&D, both of which will create significant economic benefits, particularly in the London region.

TPC's terms and conditions expired on December 31, 2006; therefore, no new projects were contracted. In 2007–08, ITO managed the TPC portfolio of 303 R&D projects. ITO provided $254 million in disbursements to 56 TPC projects based on costs incurred. The program also collected over $168 million in repayments in 2007–08. The total cumulative repayments for the program are close to $427 million. 

ITO successfully managed the wind-down of the Hydrogen Early Adopters (h2EA) program,Footnote 87 which ended on March 31, 2008. In total, $14.7 million was committed to four h2EA projects, which continue to be managed by ITO.

Industry Canada also acted as the administrator of the Program for Strategic Industrial Projects (PSIP).Footnote 88 PSIP provides the mechanism to fund larger strategic projects within the automotive sector (in whole or in part) from the fiscal framework. ITO administers three PSIP projects, one of which was signed in fiscal year 2007–08.



Program Activity: Policy Sector — Economic Development

Strategic
Outcomes
Program
Activities
Program Sub-Activities
Competitive Industry and Sustainable Communities Policy Sector – Economic Development
  • International and Intergovernmental Affairs
  • Strategic Policy Branch
    • Sustainable Development Strategy
    • Microeconomic Policy Analysis Branch (MEPA)
    • Small Business Policy Branch
    • Security and Prosperity Partnership (SPP) Branch

Program Activity Summary:

This program activity is delivered through five sub-program activities and one sub-sub-program activity:

  • International and Intergovernmental Affairs
  • Strategic Policy Branch
    • Sustainable Development Strategy
  • Microeconomic Policy Analysis Branch
  • Small Business Policy Branch
  • Security and Prosperity Partnership (SPP) Branch
Description: Development of industry and international business policy
Expected Result: Development and coordination of policy frameworks that support competitive industry and sustainable communities
Indicator Results Trend
Ongoing policy and program oversight and development is advanced with a view to enhancing industry competitiveness
  • 2 reports per year on 26 action itemsFootnote 89
  • 15 Strategic Environmental Assessments (SEAs)
Not applicable

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
11.2 12.1 11.7   89 68 21

In 2007–08, actual usage of Full-Time Equivalents was less than planned due to high staff turnover and lengthy staffing processes. The Sector is considering and/or implementing new initiatives to improve on the recruitment and retention of staff.

Industry Canada committed to the following in 2007–08:

  • Advance sustainable development by delivering on 26 action plan items under the fourth Sustainable Development Strategy (SDS) (2006-09).
  • Articulate and advance departmental interests in Canada’s trade initiatives.
  • Advance regulatory amendments that reduce the administrative burden on program lenders by bringing Canada Small Business Financing Program policies in line with conventional lending practices.
  • Report results from research and analysis program on SME financing issues. Results are used to help advance understanding of the adequacy of financial products and services available to SMEs.
  • Lead the prosperity agenda of the Security and Prosperity Partnership of North America.
  • Collaborate with other federal departments, provinces and territories to develop a work plan to reduce internal trade barriers.*

* Information regarding the Agreement on Internal Trade (AIT) is under the section “Policy Sector – MarketplaceFootnote 90

Performance Analysis:

Industry Canada works closely with other departments to support or develop broad economic framework policies in assisting competitive industry and sustainable communities. As the focus of this program activity is on research, analysis and advocacy, direct or specific effects on industry or community are often difficult to attribute solely to Industry Canada’s policy activities.

Lessons Learned — Sustainable Development Strategy (SDS)
Industry Canada commissioned an independent evaluation of the Results of SDS III in 2007–08. From this evaluation, the following points will be included in subsequent versions of the SDS, for example:

  • Ensuring that the major programs funded by the Department are assessed from the sustainable development (SD) point of view. SD should be a criterion of program design and funding allocation.
  • Linking the Department’s overall function to SD.
  • Overhauling the reporting system to ensure that results are achieved.

Advantage Canada indicates that environmentally sustainable business practices are increasingly important competitive advantages for Canadian businesses.Footnote 91

Industry Canada promotes sustainable development (SD) and has made efforts to increase awareness of corporate social responsibility (CSR) and sustainability practices in Canada to ensure competitive current and future Canadian industries, institutions and communities. Internally, Industry Canada has worked to integrate sustainability principles into the decision-making of the Department by providing SD seminars, workshops and training on Strategic Environmental Assessment (SEA) for departmental policies, plans and programs. Click here for more fourth Sustainable Development Strategy information.Footnote 92

Externally, Industry Canada executed activities to improve the knowledge of Canadian industry and promote innovative sustainability tools and practices. The Department worked to broaden CSR and SD information and awareness by:

  • Supporting panel discussions at Globe 2008Footnote 93 on the integration of sustainability into business processes
  • Participating in studies and knowledge fora on the business case for sustainability and stakeholder engagement
  • Supporting a study on the sustainability and CSR platforms of industry associations and a roadmap tool for industry associations for integrating sustainability effectively into their organizations

These practices can help firms become more responsive to the social, environmental and economic needs of the communities in which they operate and can eventually lead to more competitive companies. These practices can also help firms reduce business risks and enhance their access to financing, brand value, reputation and performance. For more information click here.Footnote 94

To secure or maintain access to export markets for Canadian products and services, improve the rules that govern international trade and to reflect Industry Canada’s domestic industrial agenda in Canada’s trade agenda, the Department contributed to, and participated in, Canada's trade negotiations. Of particular note, Industry Canada provided advice to and worked with the Department of Foreign Affairs and International Trade on the impact of tariff and non-tariff liberalization for key domestic industries. Industry Canada provided advice to the Department of Finance on the impact of proposals from World Trade Organization Members to revise the Agreement on Subsidies and Countervailing Measures given the significance of the Department's industrial assistance programs. Industry Canada also worked to ensure that the Department's interests regarding the Investment Canada Act, foreign ownership, and Canadian foreign investment abroad were fully reflected in Canada's positions for the negotiation of an investment chapter in a potential free trade agreement with South Korea and in the various bilateral investment agreement negotiations.

To meet shared objectives and public policy goals in filling gaps in the financial services offered to SMEs and to improve their competitiveness, Industry Canada provided strategic direction to and worked in partnership with the Business Development Bank of Canada. The Department also undertook two major research projects regarding SMEs engaged in exporting in collaboration with the University of Ottawa. Both projects were completed and reports were published on Industry Canada’s website (Canadian SME ExportersFootnote 95 and Financing Canadian SME ExportersFootnote 96).

To support the Prosperity Agenda of the Security and Prosperity Partnership (SPP) of North America, Industry Canada worked from April to August 2007 with federal departments, the U.S. and Mexico to develop and implement priorities to improve North American competitiveness, improve food and product safety, and to promote sustainable energy and the environment. Following the North American Leaders' Summit hosted by Canada in Montebello, Quebec, in August 2007, Industry Canada supported the Minister of Industry in his new role as lead Minister for advancing Canada's interests under the SPP. This included leading preparations for a meeting of trilateral lead Ministers in February 2008 to review progress and identify next steps on the five priorities established by Leaders in Montebello (Enhancing the Global Competitiveness of North America, Safe Food and Products, Sustainable Energy and the Environment, Smart and Secure Borders, and Emergency Management and Preparedness) as well as SPP-related preparations for the North American Leaders Summit in spring 2008 in New Orleans.

Program Activity: Operations Sector — Economic Development

Strategic
Outcomes
Program
Activities
Program Sub-Activities
Competitive Industry and Sustainable Communities Operations Sector – Economic Development
  • Canada Small Business Financing Program
  • FedNor
    • Community Futures Program
    • Northern Ontario Development Program
    • Eastern Ontario Development Program
  • Sectorial Strategies and Services Branch / Canada–Ontario Infrastructure Program (COIP)
  • Service to Business: Strategy and Innovation
  • Regional Delivery
  • Section 41 – Official Languages Act
  • Aboriginal Business Canada
  • Canada Business – National Secretariat
  • Student Connections

Program Activity Summary:

This program activity is delivered through nine sub-program activities and three sub-sub-program activities:

  • Canada Small Business Financing (CSBF) Program
  • FedNor
    • Community Futures Program
    • Northern Ontario Development Program (NODP)
    • Eastern Ontario Development Program (EODP)
  • Sectorial Strategies and Services Branch / Canada–Ontario Infrastructure Program (COIP)
  • Service to Business: Strategy and Innovation
  • Regional Delivery
  • Section 41, Official Languages Act
  • Aboriginal Business Canada
  • Canada Business – National Secretariat
  • Student Connections
Description: Delivery of programs, information and intelligence on investment and technology opportunities to the business community. Provision of a multi-channel, common entry point for business on behalf of the Government of Canada, and encouragement of client-centred service delivery and design
Expected Result: Improved access to capital and information for SMEs and communities targeted by Operations Sector programs
Indicator Results Trend
Number of loans — year over year — registered through the CSBF Program 9,015 loans totalling $1 billion Declining
(a) loan number decline from last year: 6 percent
(b) loan value decline from last year: 1.8 percent
Number of SMEs — year over year — created or strengthened through FedNor 3,835 SME’s created or strengthened by FedNor through the Community Futures Development Corporation investment fund Improving
Percentage of Ontario population that has benefited from investments made under the Canada–Ontario Infrastructure Program 83 percent No change
Level of funding that official-language minority communities have received from Industry Canada $30 million – selected Industry Canada programs and FedNor Improving
Increase in number of SMEs served through Canada Business Service Centres (service usage) Online Channel: 7,037,462
Officer-assisted channels: 234,191
Improving
Declining

 

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Variance
282.7 333.6 292.2   323 245 78

Industry Canada committed to the following for 2007–08:

  • Northern Ontario Development Program (NODP): Invest to promote economic growth in Northern Ontario, focusing on SME growth support with particular attention to mining, forestry and tourism sectors
  • Community Futures Development Corporations (CFDCs): Provided repayable financing for local small businesses for strategic community planning and socio-economic development
  • Eastern Ontario Development Program (EODP): Promote rural socio-economic development through 15 CFDCs in eastern Ontario to fund community economic development initiatives, including business development, skills development, access to capital, retention and attraction of youth and technological enhancements
  • Recommend new infrastructure projects to the responsible minister for approval, and provide oversight to existing projects
  • Review and approve funding-request claims and fulfill responsibilities under the Environmental Assessment Act
  • Network of Women Entrepreneurs (NWE): Undertake extensive outreach activities to build awareness of its resources and delivered skill development workshops throughout the Province of Ontario
  • Canada Business: Conduct a comprehensive review of its content and information products; enhance its key business applications (Multi-Channel Service Delivery Assistant and the Content Management System); enhance its website; maintain the level of awareness of its programs; and evolution of content syndication projects through an increase of partners
  • BizPaL: Expand service to cover more types of Canadian business sectors; include other business regulation information beyond permits and licences; make improvements to the technology infrastructure
  • Student Connections: Build new partnerships with business and industry associations and the private sector to effectively serve the ICT interests of SMEs

Performance Analysis:

The FTE variance is attributable to the departure of Aboriginal Business Canada from Industry Canada in December 2006, shortly after the 2007–08 RPP was written.

Lessons Learned:
From the initial implementation of the Canada–Ontario Infrastructure Program (COIP), from April to August 2007, lessons were learned about the need for extensive consultation and joint development of the program terms and conditions. These were applied to the Canada–Ontario Municipal Rural Infrastructure Program (COMRIF), and as a result, all aspects of the COMRIF program were jointly developed by Industry Canada and the Province of Ontario.

Key results include:

  • Consistent terms and conditions, eligibility criteria, application guides, forms and assessment tools.
  • The joint federal–provincial training of program staff — ensuring quality and consistency in the review and approval of applications and claims.

Strong collaboration in the COMRIF program has provided more efficient and effective delivery of infrastructure programming in Ontario.

Infrastructure

During 2007–08, Industry Canada continued building community infrastructure, in conjunction with Infrastructure Canada,Footnote 97 by helping municipalities in Ontario improve the quality of life of their residents through essential infrastructure projects totalling $120.7 million. These projects were delivered through the following programs:

For example, in 2007–08 Industry Canada released the final $2.7 million of the $27 million federal contribution under CSIF in support of the Toronto Soccer Stadium. The stadium was the site of the FIFA (Federation Internationale de Football Association) Men’s Under-20 World Cup in the summer of 2007. The stadium promotes Canada as an international destination for tourists and sport enthusiasts, providing ongoing community economic and social benefits.

Regional Development

In 2007–08 FedNor,Footnote 101 as a regional development organization in Ontario, continued to work with partners to help create an environment in which communities can thrive, businesses can grow and people can prosper.

Through the Northern Ontario Development Program,Footnote 102 FedNor invested $44.2 million in 217 projects in 2007–08. This investment was able to leverage $154.1 million in additional funds from other sources in a large and diverse geographic area — stretching from the Muskoka Lakes to James Bay, and from the Manitoba border to western Quebec.

For example, FedNor invested $14.7 million in the Thunder Bay Regional Health Sciences Centre (TBRHSC) for the establishment of a Molecular Medicine Research Centre. The new centre will bring together top researchers with state-of-the-art facilities, provide high-quality training, and develop leading-edge research programs in support of cancer, cardiac and neurological research. FedNor funding leveraged $64.3 million from other sources for this project.

FedNor continued its efforts to promote socio-economic development in Eastern Ontario through the Eastern Ontario Development Program.Footnote 103 Through this program, $9.4 million was invested in over 800 projects, which leveraged over $52 million from other sources.

FedNor provided greater access to financing for SMEs in Northern and rural Ontario through the Community Futures Program and its support for Community Futures Development Corporations (CFDCs). Through the CFDC lending activities, over $50 million was invested in local businesses, which leveraged over $86.3 million from other sources.

For example, through the EODP, the CFDCs from Eastern Ontario displayed the unique agri-food products and services the region offers at the 2007 Royal Agricultural Winter Fair in Toronto for the first time. Various agriculture and food enterprises reported that exposure at the fair helped enhance business opportunities by building linkages to tap into external markets.

Knowledge and Networking

Industry Canada also continued assisting Canadian business and knowledge through networking activities in 2007–08 through the Network for Women Entrepreneurs (NWE),Footnote 104 delivered through the Canada–Ontario Business Service Centre (COBSC),Footnote 105 a three-year Industry Canada program, to support women entrepreneurs in Ontario. This program provided Ontario businesswomen with access to networking, training, and information to help them start, operate and grow their own businesses. In particular, NWE client outreach activity had increased by 53 percent to serve 2,864 clients in 2007–08 over the previous fiscal year through 22 learning events and 36 trade shows and networking/speaking events.

During 2007–08, Student Connections,Footnote 106 an initiative that delivers affordable Internet and e-business training to Canadian SMEs through 14 colleges and universities across Canada, provided short-term work experience to 391 students and assisted more than 15,000 SMEs to gain skills related to Internet and e-commerce applications.

Improving Government Service Delivery

In support of improving Canadian business competitiveness, Industry Canada continued to refine its service delivery programs targeted at small business including:

  • Canada Business,Footnote 107 a multi-channel government information service for businesses and start-up entrepreneurs in Canada, completed a comprehensive review of its content and information products. The review identified overlaps and gaps, which are being used to guide incremental improvements to our information services. Canada Business also enhanced its key business applications: Multi-Channel Service Delivery Assistant and the Content Management System. The Multi-Channel Service Delivery Assistant benefited from added automated functionality in a number of areas that will allow staff to assist clients more rapidly. The Content Management System was upgraded to current standards to allow new content to be published and made available to clients more quickly. Canada Business also improved the navigational features on its website, continued to market its services to stakeholders and business clients, and evaluated its content syndication pilot projects for possible inclusion in its regular operations.

and

  • BizPaL>,Footnote 108 an online service that simplifies the permit and licence process for small businesses, is federally funded at $3 million per year until March 31, 2011 to accelerate service expansion across Canada. As of March 31, 2008, the BizPaL service is available in six provinces and one territory and in over 90 municipalities (an additional province signed an agreement to launch the service in 2008–09). In addition to the expansion of BizPaL service, several other enhancements were made to BizPaL in 2007–08 including:
    • The number of business sectors represented in BizPaL was increased
    • Improvements were made to the administration module to reduce the time and effort required by partners to enter data on permits and licences
    • A new client application was developed that improved website usability
    • Increased the capacity of the BizPaL system to store, process and render results of additional permit and licence information in a timely fashion in order to meet the demands of the growing number of new partners

Lessons Learned:
BizPaL is an online tool that saves business users time and effort by providing them with a single source for cross-jurisdictional permit and licence information to open or to grow a business in Canada.

What makes the BizPaL service unique among government service providers is its effective partnership with other levels of governments (federal, provincial and local). For the business user, the benefits of the partnership provide a simplified process to access multi-jurisdictional permit and licence information. For governments, the partnership results in an innovative, efficient and cost-effective way to deliver government programs and services to Canadians.

The various government partners manage and share responsibilities for BizPaL through a governance structure that includes a steering committee, several working groups and technical support. The governance structure allows partners to work collaboratively to establish priorities, to address operational needs, to monitor performance and to ensure BizPaL continues to meet user needs.

Program Activity: Industry Sector – Economic Development

Strategic
Outcomes
Program
Activities
Program Sub-Activities
Competitive Industry and Sustainable Communities Industry Sector – Economic Development
  • Aerospace, Defence and Marine Branch
  • Automotive and Transportation Industries Branch
  • Life Sciences Branch
  • Resource Processing Industries Branch
  • Service Industries and Consumer Products Branch
  • Policy and Sector Services Branch
  • Language Industry Program and Canadian Apparel and Textile Industries Program
  • Industrial and Regional Benefits Program, Structured Financing Facility

Program Activity Summary:

This program activity is delivered through eight sub-program activities:

  • Aerospace, Defence and Marine Branch
  • Industrial and Regional Benefits Program, Structured Financing Facility
  • Automotive and Transportation Industries Branch
  • Life Sciences Branch
  • Resource Processing Industries Branch
  • Service Industries and Consumer Products Branch
  • Language Industry Program and Canadian Apparel and Textile Industries Program
  • Policy and Sector Services Branch
Description: Development of initiatives that support global competitiveness and sustainable economic growth in priority sectors and emerging technologies
Expected Result: Competitive and sustainable Canadian industries
Indicator Results Trend Explanation of Results
Sales, trade and employment statistics GDP
$527.6 billion, a
+2.4 percent change versus previous yearFootnote 109
Improving Industry Sector covers over 51 percent of total private sector economy. The 2.4 percent growth rate is being held back by the manufacturing sector, which experienced a GDP decline of 1.8 percent from 2006 to 2007. The service industries offset this with a growth rate of 4.1 percent over that time.
Exports
$259.2 billion
(+0.5 percent change versus previous year)Footnote 110
No change These industries are responsible for more than 57 percent of total merchandise exports.  Exports managed to increase slightly despite significant pressures such as the appreciated Canadian dollar, competition from emerging economies, and the U.S. economic slowdown.
Employment
7,540,019 (+2.8 percent change versus previous year)Footnote 111
Improving Industries for which the Industry Sector is responsible account for 72 percent of total private sector employment in Canada. As with GDP, the 2.8 percent growth rate is the result of growth in service sector employment (3.8 percent) offsetting losses in the manufacturing sector
(-1.2 percent).
Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as:
  • Labour market (not just highly qualified personnel)
  • Corporate taxation*
  • Regulatory compliance burden*
  • Impact of other government department programs*
  • Industry structure*
  • Trade conditions*
Skilled workers in workforce: 58.9 percent (+2.8 percent change versus previous year)Footnote 112

 

 

Improving Workers classified as “skilled” accounted for
58.9 percent of the workforce in 2007. The number of skilled workers increased by 2.8 percent over the previous year. In 2007, the manufacturing sector posted declines in both skilled (-2.7 percent) and unskilled (-4.1 percent) workers, while services sector employment increased by 3 percent for both skilled and unskilled workers.
Canadian exporters as a share of total firms: -4.3 percent (-6.7 percent change versus previous year)Footnote 113 Declining The number of exporting firms decreased significantly while the total number of Canadian firms increased slightly. This may be due to the higher value of the Canadian dollar relative to that of the U.S. dollar.

* Decision was taken that these indicators are of less value to measure the success of Industry Canada and have been revised for 2008–09.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
68.6 180.2 168.6   234 247 13

Industry Canada committed to the following for 2007–2008:

  • Industry Canada will deepen its understanding of Global Value Chains (GVCs) and their policy implications.
  • Industry Canada will provide support to selected major trade shows and trade missions to showcase and broaden understanding of Canadian capabilities. Industry Canada will lead the Canadian delegation at BIO 2007. Industry Canada will support the aerospace industry’s participation in the biennial Paris Air Show.
  • Industry Canada will also analyze and advocate for regulatory effectiveness, efficiencies and technological foresight on health industries that enhance the ability of firms to commercialize innovative products without undue delays or costs.
  • As co-chair for the Federal–Provincial–Territorial (FPT) Tourism Working Group, Industry Canada will develop an action plan to address key issues facing the tourism industry. Initially, the focus will be on developing an FPT approach to mitigate the effects of the implementation of the Western Hemisphere Travel Initiative on tourism.

Lessons Learned:
Efforts have been made to address the challenge of optimizing the allocation of resources necessary to meet current priorities while simultaneously maintaining sufficient breadth and depth of capability to address future requirements. These include:

  • Reassessment and realignment of some regionally-based positions in line with the gradual shift to a more policy-oriented role for the Department and to strengthen management oversight of the positions remaining in the regions.
  • Placing greater focus on international business development activities on a smaller number of signature events, such as BIO and GLOBE, where Canada can have the greatest impact.
  • Addressing gaps between anecdotal industry information and that available from Statistics Canada by partnering with Canadian Manufacturers and Exporters to deliver specialized industrial analyses.

Performance Analysis:

Changes in the marketplace affect industrial sectors in different ways. Through research and analysis, and by engaging its stakeholders, Industry Canada is able to use its value-added knowledge and expertise about Canadian industry to better inform government decision making and industrial development. The Department encourages competitive and sustainable Canadian industries through the support of Global Value Chains (GVCs), advocacy for Canadian industries, delivery of targeted programs, and promotion of Canadian capabilities at key trade-and-investment related events.

To assess and promote the success of Canadian firms as key links in GVCs, Industry Canada has completed key activities to deepen its understanding of GVCs and their policy implications for Canada and to clarify the role of governments in facilitating competitiveness for Canadian firms. The Department:

  • Hosted a GVC Conference, attracting 275 participants from governments, academia, think tanks and the private sector.
  • Completed GVC case studies for the automotive sector and the Canadian apparel industry.
  • Published research papers for Low Cost Country Sourcing and the Apparel Global Value Chain.
  • Continued to work with the Department of Foreign Affairs and International Trade (DFAIT) and Statistics Canada to develop relevant indicators to help measure the extent to which Canadian firms are integrated into GVC activities.
  • Collaborated with Canadian and international experts, including the OECD, to identify policy implications of GVCs and presented on the GVC Conference findings at the November 2007 meeting of the OECD Committee on Industry, Innovation and Entrepreneurship and the Working Party on Globalization of Industry.
  • Increased opportunities for Canadian industry through the Joint Strike Fighter (JSF) program, a U.S.-led multinational effort producing fifth-generation fighter aircraft by participating in the final Production Sustainment and Follow-on Development phase (PSFD). Industrial participation is enabling Canadian industry to advance capabilities to the next level, and innovative Canadian companies are making substantial contributions to the program’s success.

Lessons Learned:
Through program evaluation, Industry Canada was able to improve the Structured Financing Facility Program, which aims to ensure that there is Canadian shipyard capability to meet federal procurement and maintenance needs in 2009 and beyond. The program’s initial Terms and Conditions and some program elements were not structured to optimally benefit the Canadian shipbuilding industry. For example, an internal evaluation and an audit completed in early 2008 recognized that the corrective measures implemented by the Department improved the effectiveness of the program.

The Industrial and Regional Benefits (IRB) Policy, managed by Industry Canada, has allowed the federal government to secure over $1.6 billion in commitments from Lockheed Martin and Boeing. This will result in Canadian firms entering or moving up the GSCs of these multinationals, as well as generating innovative R&D within the academic community.

Based on its sectoral and industrial expertise, the Department has participated in the development of policy and regulatory decisions and processes in key areas. These activities include:

  • Negotiation of the Canada–Korea Free Trade Agreement. Industry Canada focused on ensuring that industry interests were taken into account, particularly with respect to the automotive and building products sectors.
  • Collaboration with other government departments (OGDs) on the Asia–Pacific Gateway and Corridor Initiative, formerly known as the Pacific Gateway Strategy. Representatives participated in Interdepartmental Steering Committee meetings, providing value-added research, industry perspectives and policy recommendations on low-cost country sourcing and exports.
  • Implementation of the National Tourism Strategy. The Department commissioned an analysis of the U.S. tourism market and worked with provinces, particularly Alberta, on an air access study to examine how Canada can establish itself as a destination of choice for North American and international travellers.
  • Participation in the Manufactured Goods and Sectoral and Regional Competitiveness Working Group of the Security and Prosperity Partnership of North America. The group, with Industry Canada as a co-lead, continued to focus on developing initiatives to enhance the competitiveness of firms in North America.
  • Creation of an Automotive Action Plan, which strives for compatibility of Canadian and U.S. vehicle safety regulations and other changes in the automotive industry that would enhance automotive innovation and competitiveness in Canada.
  • Support for a variety of environmental initiatives, such as the Clean Air Act and the Canadian Environmental Protection Act. The Department worked with OGDs and industry representatives to develop new fuel consumption regulations, establish a framework for the Canadian Nuclear Industry Capabilities guide, and encourage new technologies that reduce emissions in the oil and gas industry.

As a result of these activities, the competitiveness and sustainability of Canadian industries have been factored into the development of key acts, regulations, policies, and other government decisions.

In spring 2007, the Department completed a major study identifying industry sectors with regulatory differences between Canada and the U.S. that have an impact on trade and investment. To further increase the government's understanding of the sectoral impacts of regulation, Industry Canada co-sponsored, with Treasury Board Secretariat, a project to develop an architecture and methodology for business impact assessment. This framework was developed to assist regulators in complying with the Cabinet Directive on Streamlining Regulation by facilitating the identification of the effects of regulation on the performance of firms, industry sectors and the economy. The Department also arranged dialogue with Transport Canada and pressed for an ambitious domestic agenda to enhance the compatibility of Canadian vehicle safety regulations with those of the U.S. Progress made in 2007–08 includes the identification of possible safety regulations.

The Department built upon the government-wide Manufacturing 20/20 Network, bringing together roughly 20 organizations across the federal government, to strengthen the Government of Canada's capacity to review and improve public policy on manufacturing issues, and also led the government's response to the recommendations of the Report of the House of Commons Standing Committee on Industry, Science and Technology entitled Manufacturing: Moving Forward — Rising to the Challenge. Work continued with industry stakeholders entitled to identify and address key competitiveness issues important for manufacturers. In partnership with Canadian Manufacturers and Exporters, Industry Canada conducted an analysis of manufacturers' lean benchmarking performance. Following this, manufacturers and other analysts were provided with data on best-in-class and average performance by sub-sector, across operational metrics. The Department also hosted a trilateral Canada–U.S.–Japan technical committee meeting to address market access and codes and standards issues applicable to North American wood products imported to Japan. It also hosted, with the Canada Mortgage and Housing Corporation, a Canada–Japan Housing Committee policy meeting with Japanese government officials responsible for regulations impacting exports of Canadian wood products.

The Structured Financial Facility (SFF) program and the Canadian Apparel and Textiles Industries Program have been delivered to help priority industrial sectors (see financial tables for details on each program). In addition, the Department has provided support to selected major trade shows and trade missions to showcase and broaden understanding of Canadian capabilities. These include:

  • BIO2007, the world's premier biotechnology event. The Department organized the largest country pavilion, with over 90 exhibitors. It was the third-most attended international session in the program.
  • The 2007 Tokyo Motor Show. The program comprised a national exhibit stand, an auto parts trade mission, an R&D mission, several networking and media relations events and featured roughly 120 representatives from more than 20 auto industry organizations in Canada.
  • The 2007 Paris Air Show. Departmental representatives assisted Canadian companies in maximizing the opportunities associated with major defence procurements to encourage investment, attraction, and retention. Members of Canada’s aerospace industry were promoted as suppliers of choice. More than 100 companies attended and were very satisfied with the support they received.
  • GLOBE 2008, a bi-annual international environmental conference and trade show. Consultations with the provincial environmental industry associations resulted in an initiative to develop collaborative regional workshops. Industry Canada also supported the Environmental Student Ambassador Program, demonstrating commitment to environmental education and skill development.

Delegates from the Sector also provided a Canadian presence at several other conferences and trade shows including three major international plastics trade shows, two major building product trade shows, a major U.S. apparel show and Defence Systems & Equipment International.

Engagement in these trade-related events helps firms to strengthen global partnerships and positions Canada as an ideal environment for foreign direct investment.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Economic Development

Strategic
Outcomes
Program
Activities
Program Sub-Activities
Competitive Industry and Sustainable Communities Spectrum, Information Technologies and Telecommunications Sector – Economic Development
  • Information and Communications Technologies Branch
  • Information Highway Applications Branch

Program Activity Summary:

This program activity is delivered through two sub-program activities and two sub-sub-program activities:

  • Information and Communications Technologies Branch
  • Information Highway Applications Branch
    • Francommunautés virtuelles
    • National Satellite Initiative (NSI)
Description: Promotes economic development by ensuring that Canadians, communities and businesses have access to reliable, modern ICT infrastructure and the skills to fully participate in the digital economy. Enhances entrepreneurship and lifelong learning by fostering the creation of advanced, enabling applications and technologies. Supports the development of a competitive ICT industry in Canada.
Expected Result: Canadians and communities overcoming barriers to, and gaining access to, modern Information Communication Technologies (ICT) infrastructure
Indicator Results Trend
Number of Canadians and communities accessing and using ICTs

Community Access Program (CAP): Approximately 3,800 public Internet sites supported.

Approximately 1,400 Canadian youth were provided hands-on training in ICT related work.

Improving*

Computers for Schools (CFS): 78,102 computers were refurbished and distributed in fiscal year 2007–08. 

Approximately 360 Canadian youth were provided hands-on training in ICT related work.

* Almost three-quarters (73 percent) or 19.2 million Canadians aged 16 and older went online for personal reasons during the 12 months prior to the most recent survey in 2007. This was up from just over two-thirds (68 percent) in 2005 when the survey was previously conducted in 2005.
(Statistics Canada, Canadian Internet Use Survey – CIUS 2007)


Expected Result: Canadian ICT companies positioned for growth in the global marketplace
Indicator Results Trend
Level of awareness of opportunities, gaps and barriers affecting ICT sector growth Continually improving awareness of the opportunities, gaps and barriers affecting ICT growth through ongoing analysis of the ICT sector, including: statistical reports on ICT sector performance and briefs on other critical issues and emerging trends, including: highly qualified people (HQP), R&D, intellectual property (IP) transfer, SR&ED, science & technology, as well as investment and trade. Improving*

*Due to expanded knowledge and value-added analysis.

Financial Resources ($ millions)
2007–08
  Human Resources (Full-Time Equivalents) 2007–08
Planned Spending Total Authorities Actual Spending   Planned Actual Difference
44.8 50.7 50.1   139 110 29

Industry Canada committed to the following for 2007–08:

  • Review the future of the Community Access Program and make a decision about future spending
  • Undertake economic analyses and monitor industry trends and emerging sectors that are critical to priority setting and decision making for the ICT Sector
  • Provide advice to senior management and the Minister
  • Provide business development services to exploit commercial opportunities for the ICT Sector
  • Continue to support the growth of the assistive technology industry in Canada

Performance Analysis:

Access to Information Communication Technologies (ICTs)

In 2007–08, additional funding was secured to continue supporting such programs as Community Access Program (CAP) and Computers for Schools (CFS), which play a key role in supplementing Canadians’ access to ICTs and modern ICT infrastructure. CAP supported approximately 3,800 public Internet access sites located in every province and territory. CFS has refurbished and distributed 896,726 computers since its inception in 1993, of which 78,102 were refurbished in 2007–08.

Access to high-capacity Internet and content in the official language of choice is key to ensuring sustainable communities. As of June 2007, the National Satellite Initiative (NSI) had helped bring high-capacity Internet to 52 remote and rural communities, including First Nations reserves. In June 2007, NSI was transferred to Infrastructure Canada.

Francommunautés virtuelles helped francophone and Acadian communities to access high-quality Internet content in their own language, as well as enhance their skills in the development and use of ICTs through a total of 26 projects funded across Canada in 2007–08.

Canadian ICT Sector Profile (2007):
Number of Firms: 30,000
Revenues: $140 billion/year
GDP: $57 billion (constant 2002 dollars*)
Employment: More than 572,000
Largest performer of R&D in Canada (38 percent of all business R&D)
* For an explanation of constant dollars, see Statistics Canada.

ICT Sector Analysis

In 2007–08, Industry Canada continued to support the development of a competitive ICT industry in Canada. The Department published several analytical reports on the ICT Sector, including: the Canadian ICT Statistical Overview,Footnote 114 the Quarterly Monitor of the Canadian ICT Sector,Footnote 115 the Canadian ICT Sector Profile,Footnote 116 and the Canadian ICT Sector Regional Report.Footnote 117 It prepared and shared a detailed analysis of international trade of ICT products with stakeholders such as DFAIT and Export Development Canada (EDC). It also undertook research on key issues for ICT subsectors, e.g., eHealth and IT Security in Canada to provide strategies and programming to help sector growth in these areas. Industry Canada released the Telecommunications Equipment Value Chain Study, which provided insight into how Canadian equipment firms operate and compete in global supply chains.

Industry Canada also addressed key policy issues related to Highly Qualified People, Innovation, Scientific Research and Experimental Development, Taxes, Procurement, Commercialization, and ICT-related Trade Policy in policy forums, and secured intelligence in these areas. Key briefings included support to the Minister for his engagement with the ICT sector’s two principal industry associations.

Best Practices:
The European Union adopted the Accessible Procurement Toolkit as a best practice. This web-based application was developed by Industry Canada and delivers accessibility requirements and standards to apply to the purchase of mainstream products and services.

Additional Achievements

In 2007–08, Industry Canada supported increased international business opportunities for the Canadian ICT Sector by generating 718 sales leads. This was achieved through the support of Canadian pavilions at three key international trade shows in Singapore (CommunicAsia), China (PT ExpoComm) and Spain (Mobile World Congress).

Industry Canada also supported the growth of the ICT Sector in Canada by encouraging expansion and investment by undertaking over 25 corporate calls on Canadian and foreign multinational enterprises where issues were identified and fed into the policy process, contributing to changes of Scientific Research and Experimental Development credits announced in the last budget.

In addition, promotional activities also secured a global multimedia mandate for one firm with a total value of $5 million to $7 million and encouraged a U.S.-based communications company to set up an R&D facility in Canada.

Canada was represented by Industry Canada in the development of accessible procurement standards for the U.S. government to ensure that Canadian industry would be able to benefit from any ongoing procurement. Industry Canada chaired the committee that developed CSA standard B651-2 Accessible Design for Interactive Devices, which is now being referenced in the policies of other government bodies (e.g., Canadian Transportation Agency).


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Appendix

This appendix provides information on each of the sub-program and sub-sub-program activities identified in Industry Canada's Program Activity Architecture. Activities are listed by the program activity and strategic outcome to which they contribute. Information on these program activities and the departmental strategic outcomes is provided in sections 1 and 2 of this document. By working to achieve the expected results for these activities, Industry Canada makes progress toward achieving results at the program activity and strategic outcome levels, and therefore towards fulfilling its mandate. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance.

Strategic Outcome A fair, efficient and competitive marketplace
Strategic Outcome

A fair, efficient and competitive marketplace

Program Activity: Policy Sector — Marketplace

Sub-Program Activity: Marketplace Framework Policy Branch

Development of legislative and/or regulatory policies pertaining to corporate insolvency and intellectual property to ensure that the marketplace framework laws are responsive to market needs

Expected Result: Development of policy to support legislative and regulatory initiatives

Performance Indicators

Results

Trend

  • Reports and consultation papers published
  • Tabling in Parliament of Minister's report on the statutory review of Canadian Access to Medicines Regime (CAMR). The tabling satisfied the requirement in section 21.1 of the Patent Act.1
  • Not applicable. The decision to table reports and government responses in Parliament is the prerogative of the Minister.
  • Not applicable. The decision to table reports and government responses in Parliament is the prerogative of the Minister.

1 Report on the Statutory of Sections 21.01 to 21.19 of the Patent Act.

Sub-Program Activity: Strategic Policy Branch

Sub-Program Activity: Strategic Policy Branch

Development of strategic policy frameworks for the marketplace

Expected Result: Integration of departmental and governmental objectives into the development of marketplace policies

Performance Indicators

Results

Trend

  • Number of unique marketplace items reviewed by the Director General Policy Committee (DGPC)
  • The DGPC met throughout 2007–08 and reviewed 17 marketplace items.
  • Not applicable. It is not useful to measure trends in results due to the nature of the work of the Policy Sector, where actual results vary from year to year depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

 

Sub-Program Activity: Microeconomic Policy Analysis Branch (MEPA)

Sub-Program Activity: Microeconomic Policy Analysis Branch (MEPA)

Microeconomic analysis in support of marketplace policy development

Expected Result: High-quality microeconomic research and analysis of significant policy issues as input to policy development

Performance Indicators

Results

Trend

  • Number of:
  • Papers presented at conferences, seminars and round tables
  • Five papers presented at conferences, workshops and round tables
  • Not applicable*
  • Conferences, round tables and seminars organized (and number of attendees)
  • 13 seminars with 350 attendees in total
  • Not applicable*
  • Research publications and reports
  • Two reports prepared for internal use
  • Not applicable*
  • Current analysis publications and reports
  • None
  • Not applicable*
  • Citations of MEPA's publications
  • Citation performance indicator not measured. Reliable data are not available.**
  • Not applicable
  • Presentations at the Director General Policy Committee and the Economic Research Advisory Committee
  • None
  • Not applicable*
  • Total hits (views) on economic analysis and statistics page on Industry Canada website: 200,587 (Note that this total is not disaggregated by strategic outcome.)
  • Declining. The decline can be attributed to decreases in the numbers and types of research publications MEPA published online and the frequency with which the products were published.

* It is not useful to measure trends in results due to the nature of the work of the Policy Sector, where actual results vary from year to year depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

** Traditional citation measurement indexes focus on citations of articles published in academic journals. The main publishing venue for MEPA's research papers is a departmental working papers series; papers published under this series are therefore not captured in the traditional scholarly-based indexes. Other citation measurement indexes, such as those available through Internet-based Google Scholar and RePEc, cover a scope of research material wider than that of academic journals. The number of citations captured by these indicators may be attributed not only to factors such as the quality of the research published, but also to factors such as the increased visibility and accessibility of the research, which these sources also offer. Citation counts are not included in MEPA's performance indicator in the 2008–09 Report on Plans and Priorities.

Sub-Program Activity: - Small Business Policy Branch

Sub-Program Activity: Small Business Policy Branch

Research, analysis and action on regulatory compliance issues affecting SMEs

Expected Results: Immediate:

  • Established benchmark for tracking progress in paperwork burden reduction
  • Identification of practical solutions for implementation to reduce paperwork burden for small business

Performance Indicators

Results

Trend

  • Immediate:
  • Established measure for the dollar cost of paperwork burden for small and medium-sized businesses by employment size of firm
  • Final cost estimates released by Statistics Canada (December 2006). Total estimated costs for sampled business: $1.53 billion.
  • No change
  • Dedicated resources to implement identified paperwork burden for small and medium-sized businesses and the number of businesses affected by implemented paperwork burden reduction solutions
  • Results to be reported in the 2008–09 Departmental Performance Report (DPR).
  • No change

Expected Result: Long-term:

  • Reductions in the cost of regulatory compliance facing small businesses

Performance Indicators

Results

Trend

  • Long-term:
  • Dollar cost of paperwork burden for small and medium-sized businesses and the number of businesses affected by implemented paperwork reduction solutions
  • Final cost estimates released by Statistics Canada (December 2006). Total estimated costs for sampled business: $1.53 billion.
  • No change

 

Sub-Program Activity: International and Intergovernmental Affairs

Sub-Program Activity: International and Intergovernmental Affairs

Intergovernmental negotiation to reduce or eliminate barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market

Expected Result: Engaging with the provinces/territories to remove internal trade barriers

Performance Indicators

Results

Trend

  • Results of annual ministerial meeting and number of meetings of federal/provincial/territorial officials
  • Annual ministerial meeting of the Ministers responsible for internal trade. The committee met on June 7, 2007 and discussed options for strengthening enforcement of the Agreement on Internal Trade panel rulings and a strategy to achieve labour mobility by April 2009.
  • Not applicable. The number of meetings held each year is the prerogative of ministers.

 

Program Activity: Operations Sector — Marketplace

Program Activity: Operations Sector - Marketplace

Sub-Program Activity: Regional Operations — Spectrum*

Compliance with spectrum regulations through licensing and enforcement

Expected Result: Access to radio frequency spectrum and timely response to client requests

Performance Indicators

Results

Trend

  • Applications processed and performance against client service standards
  • 14,516 land fixed and mobile applications processed
  • New indicator
  • 3,159 microwave applications processed
  • New indicator
  • 2,052 earth licensing applications processed
  • New indicator
  • 4,802 fixed parameters applications processed
  • New indicator
  • Degree of client satisfaction
  • The last survey (2004) revealed that 79 percent of clients were satisfied with our services. Client surveys are conducted every 3–5 years; the next is planned for 2008–09.
  • No change

*Note: Work is being done which will likely change some of the Regional Operations – Spectrum indicators.

Sub-Program Activity: Measurement Canada (Special Operating Agency)

Sub-Program Activity: Measurement Canada (Special Operating Agency)

Integrity and accuracy of measurement in Canada

Expected Result: Integrity and accuracy of measurement in Canada

Performance Indicators

Results

Trend

  • Year-over-year growth in number of service providers authorized by Measurement Canada to certify measurement systems
  • A 25-percent increase in the number of authorized service providers
  • Declining
  • Year-over-year growth in the proportion of measurement system inspections performed by authorized service providers
  • A 15-percent growth in the proportion of inspections performed by authorized service providers
  • No change

 

Sub-Program Activity: Office of the Superintendent of Bankruptcy Canada

Sub-Program Activity: Office of the Superintendent of Bankruptcy Canada

Integrity of the insolvency system through supervision of the administration of all estates to which the Bankruptcy and Insolvency Act applies

Expected Result: The integrity of the bankruptcy and insolvency system is protected

Performance Indicators

Results

Trend

  • Level of trustee compliance
  • 92 percent of summary estates not older than three years
  • No change
  • 65 percent of ordinary estates not older than three years
  • Improving

Expected Result: Efficiency of the insolvency process

Performance Indicators

Results

Trend

  • Percentage of consumer bankruptcies and proposals filed electronically
  • 99 percent of consumer bankruptcies filed electronically
  • Improving
  • 97 percent of proposals filed electronically
  • Improving
  • Percentage of trustees using the e-filing system
  • 99.25 percent of trustees using the e-filing system
  • Improving

 

Sub-Program Activity: Corporations Canada

Sub-Program Activity: Corporations Canada

Administration of corporate laws and related acts, and duties of the Office of the Registrar General of Canada

Expected Result: Improved compliance with corporate laws and regulations

Performance Indicators

Results

Trend

  • Percentage of corporations that comply with statutory requirements
  • 82 percent corporation compliance for annual return filings
  • Improving

Expected Result: Improved ease of use and timeliness of access to incorporation services and information

Performance Indicators

Results

Trend

  • Level of Corporations Canada's service standards achieved
  • Service standards met
    95 percent of the time
  • Slightly improving

Expected Result: High level of key services delivered electronically

Performance Indicators

Results

Trend

  • Percentage of transactions completed online for key services
  • 89 percent of new incorporations completed online
  • Improving
  • 78 percent of annual returns received online
  • Improving

 

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Program Activity: Spectrum, Information Technologies and Telecommunications Sector - Marketplace

Sub-Program Activity: Spectrum/Telecom Program

Facilitation of the development and use of world-class information and telecommunications technologies and services, while maintaining and promoting a fair, efficient and competitive communications marketplace

Expected Result: Canadian interests and requirements pertaining to radiocommunications and telecommunications are reflected in international agreements and standards

Performance Indicators

Results

Trend

  • Degree of client satisfaction with the way Canadian interests and requirements are reflected in international agreements and standards
  • A high level of client satisfaction with the way Canadian interests and requirements are reflected in international agreements and standards. This included work of Mutual Recognition Agreements and successfully meeting Canadian Objectives at the World Radio Conference (WRC) 2007.
  • Not applicable
  • Signing of agreements and establishment of standards
  • World Radio Conference (WRC-07) Final Acts signed as authorized by an Order-in-Council November 17, 2007.
  • Two exchanges of letters with Chinese Taipei and Hong Kong China, indicating the commencement of the implementation of Phase II of the APEC TEL MRA. Mutual Recognition Agreements (MRAs) with Israel and Japan — negotiations were interrupted as it was necessary for us to learn and understand the new process for handling international treaties instituted by PCO/DFAIT.
  • Two new cross-border sharing arrangements negotiated and concluded with the U.S. on air-ground broadband services in the 800 MHz band and mobile services in the 2,500 MHz band.
  • Several new arrangements with the U.S., including four dealing with the 700 MHz band and two dealing with 800 MHz advanced considerably in 2007–08.
  • Negotiations with the U.S. on a number of other frequency bands, including 220 MHz, 3,650 MHz and 70/80/90 GHz have begun and are in the "working document" stage.
  • Commitment from the U.S. addressing interference protection for critical Public Safety systems that will be in operation during the Vancouver 2010 Winter Games.
  • New indicator

Expected Result: Policies, regulations, standards and procedures are in place to enable the introduction of new radiocommunications/telecommunications technologies and services and promote the competitive development of the industry

Performance Indicators

Results

Trend

  • Development of policies, regulations, standards procedures
  • Acceleration of Local Telephone Deregulation — The Governor-in-Council (GIC) issued a final Order changing the CRTC local telephone “forbearance” framework to accelerate deregulation in areas where there is competition to the benefit of Canadian businesses and consumers.
  • Continued to monitor the activities of industry working groups and a CRTC regulatory proceeding to extend the rollout of Wireless Number Portability (WNP) to new communities.
  • 10 telecommunications service providers (TSPs) formed a telecommunications consumer agency, the Commissioner for Complaints for Telecommunications Services Inc. (CCTS).
  • Issued the Policy Framework as well as the licensing framework for the Auction for Spectrum Licences for Advanced Wireless Services and other Spectrum in the 2 GHz Range.
  • Announced the results of the 2006 satellite licensing initiative (June 2007).
  • Issued new antenna siting and approval procedures (January 2008). The key changes include: clearer processes for public notification and consultation, added community involvement and clear time frames.
  • Publication of a number of Gazette notices announcing amendments to Industry Canada conformity assessment procedures and 15 new or revised technical standards, including four Standard Radio System Plans and 11 Radio Standards Specifications.
  • Responded to over 1,200 public requests on technical standards and RF exposure.
  • Published one consultation on “Proposed Revisions to the Frequency Plan for Public Safety in the Band 700 MHz.”
  • Thoroughly consulted with Canadian stakeholders through active participation in the Radio Advisory Board of Canada (RABC) and by presenting at industry events, such as the Canadian Wireless Telecommunication Association (CWTA) and the Canadian Interoperability Technology Interest Group (CITIG).
  • New indicator
  • New services introduced in the marketplace
  • Introduction of Digital Television (DTV):
    • Developed TV receiver standards (BETS-7).
    • Developed a new allotment plan for DTV.
  • Made progress in the negotiations with the U.S. FCC on the post-transition spectrum sharing agreement.
  • Developed consumer information on the impact of the transition on the Canadian TV viewer.
  • The Promulgation of the New Fee Order. DGSE's e-filing service was also updated with a new fee structure for efficient filing and registration of telecommunication equipment by manufacturers.
  • Presented a draft standard on Ultra Wide Band (UWB) technologies to the Radio Advisory Board of Canada (RABC) and a detailed technical report on their impact on radiocommunication services. The RABC membership was not able to provide a unified view on the proposed technical requirements, and many radiocommunication users and licensees opposed them. Industry Canada is working towards the development of a national standard to be released in 2008 based on recent market information and international regulatory developments.
  • New services based on UWB technology were introduced on an experimental basis.
  • Regarding broadband over power line systems, there appears to be an increased interest in deploying this technology for power grid management. Contact has been established with Canadian manufacturers with a view to determining the necessary regulations and standards. However, Industry Canada is cognizant that this technology has raised significant issues in the U.S. and is thus proceeding cautiously.
  • New indicator
  • Assessments of the status of competition in the Canadian telecommunications markets
  • The CRTC Telecommunications Monitoring Report provides information on the Canadian telecommunications industry. One area monitored is the status of competition in the Canadian market. In 2006, the competitors to incumbent telephone companies, where competitors include incumbent telephone companies when operating outside of their traditional territories, continued to gain market share:

    • Competitors' market share of total revenues: 38 percent
    • Competitors' market share of long distance minutes: 48 percent
    • Competitors' market share of local telephone lines: 15 percent
    • Competitors' market share of data services: 37 percent
    • Incumbent telecommunications companies' market share of broadband subscribers: 42 percent
    • Market share of largest wireless services provider: 37 percent
  • New indicator

Expected Result: Availability of communications and information technologies infrastructure to Canadians during times of emergency

Performance Indicators

Results

Trend

  • Readiness of telecommunications services during emergency exercises
  • Undertook exercises to test Canada's readiness; in particular, to test our cyber readiness (Cyber Storm II) and Industry Canada operational readiness. Cyber Storm reviews will be undertaken in 2008–09 to identify gaps and implement solutions to the gaps.
  • New indicator

 

Sub-Program Activity: Electronic Commerce Branch

Sub-Program Activity: Electronic Commerce Branch

Development of regulations and policies to promote e-business development and growth in Canada and strategies to encourage e-business adoption and use among Canadian businesses through analysis and measurement

Expected Result: Increased awareness and use of e-commerce and e-business tools by Canadian industry

Performance Indicators

Results

Trend

  • Assessment of Canada's
    e-business and
    e-commerce performance through surveys and formal economic analysis and reports
  • E-commerce in Canada continued its double-digit growth at 26 percent in
    2006–07.
  • Declining
  • Value of the Canadian online market in 2007 was approximately $62.7 billion, up from $12.7 billion in 2006.

(Source: Statistics Canada, Survey of Electronic Commerce in Canada, 2007, released April 2008)

  • Improving

Expected Result: Up-to-date policies, legislation and regulations, enabling the development and growth of Canadian industries in e-business/e-economy, both domestically and abroad

Performance Indicators

Results

Trend

  • New or updated legislation, policies, regulations shaping the Canadian e-economy and supporting the development of international frameworks consistent with Canadian interests
  • Continued the mandatory review of the Personal Information Protection and Electronic Documents Act (PIPEDA). Areas for legislative change have been identified.
  • Developed options for introducing new initiatives to combat spam and other related online threats and to strengthen enforcement.
  • Not applicable

 

Program Activity: Office of Consumer Affairs (OCA)

Program Activity: Office of Consumer Affairs (OCA)

Sub-Program Activity: Consumer Policy

Policy development, intergovernmental collaboration and the development of non-regulatory instruments for consumer protection

Expected Result: Strengthened consumer research

Performance Indicators

Results

Trend

  • Consumer policy research projects developed with the active engagement of the OCA
  • Seven consumer research projects addressing issues such as radio-frequency identification, vulnerable consumers, sustainable consumption and U.S.–Canada automotive price differentials.
  • Declining

Expected Result: Strengthened intergovernmental collaboration

Performance Indicators

Results

Trend

  • Intergovernmental collaborative projects developed with the active engagement of the OCA
  • Seven collaborative projects targeting issues such as consumer credit reporting, consumer law enforcement, best practices, payday lending, and low literacy populations.
  • No change

Expected Result: Developed or strengthened non-regulatory instruments

Performance Indicators

Results

Trend

  • Codes, guides, guidelines, standards and other non-regulatory instruments
  • Two key initiatives: contribution to OECD's consumer policy tool kit, and providing input into policies on pre-authorized debt transactions with the Canadian Payments Association.
  • Declining
  • Indications of usage of such non-regulatory instruments (where available)
  • Four initiatives, including direct involvement in the development of two ISO standards, initiating dialogue between the federal government and the Canadian apparel industry concerning values-based labelling, and marketing consumer protection information products such as the identity theft kit.
  • Improving

 

Program Activity: Competition Bureau - Marketplace

Sub-Program Activity: Consumer Information and Coordination

Dissemination of consumer information products and services, and strengthened capacity building for the consumer voluntary sector

Expected Result: Improved access to consumer information provided by government

Performance Indicators

Results

Trend

  • Take-up of OCA online consumer information products and services
  • Three results: implementation of a new strategic communications plan, a suite of new consumer information products, and a 12-percent increase in visitors to the Consumer Information website.
  • Improving
  • Client satisfaction
  • Due to budgetary restraints, a client feedback survey was not undertaken in 2007–08.
  • No change

Expected Result: Improved capacity of consumer groups

Performance Indicators

Results

Trend

  • Research project proposals funded under the Contributions Program for Non-Profit Consumer and Voluntary Organizations, and project report distribution (where available)
  • 33 research project proposals funded.
  • Improving
  • Number of development project proposals funded under the Contributions Program for Non-Profit Consumer and Voluntary Organizations, and project follow-up (where available)
  • Six development project proposals funded.
  • Improving

 

Program Activity: Competition Bureau — Marketplace

Program Activity: Competition Bureau - Marketplace

Sub-Program Activity: Enforcement with Respect to Competition

Expected Result: Companies/individuals cease their anti-competitive conduct following enforcement interventions (specific deterrence)

Performance Indicators

Results

Trend

  • Level of recidivism or relapse into anti-competitive behaviour
  • 10 percent recidivism or relapse into anti-competitive behaviour
  • New indicator

 

Sub-Program Activity: Services With Respect to Competition

Sub-Program Activity: Framework Policy and Advocacy with Respect to Competition

Expected Result: Increased stakeholder awareness of rights and obligations as set out in legislation under the Competition Bureau's jurisdiction

Performance Indicators

Results

Trend

  • Level of awareness of rights and obligations as set out in legislation under the Competition Bureau's jurisdiction (as measured by a survey)
  • Nine out of 10 (91 percent) Canadians are aware of at least one of the 12 consumer mass marketing frauds (MMFs) that were subject to the Bureau's study on MMF, which include: high-pressure sales pitch vacation fraud, prize lottery sweepstakes fraud, bogus health product or cure fraud, and investment fraud.2
  • New indicator

 

Sub-Program Activity: Services With Respect to Competition

Sub-Program Activity: Services with Respect to Competition

Expected Result: Businesses and consumers are provided with timely services

Performance Indicators

Results

Trend

  • Percentage of service standards met
  • 95.7 percent of all non-complex Merger Review filings completed within the service standards time frame.
  • 91.3 percent of all complex Merger Review filings completed within the service standards time frame.
  • 84 percent of all very complex Merger Review filings completed within the service standards time frame.
  • On average, the Bureau meets its service standard 93 percent of the time, with the exception of very complex merger review filings where the Bureau meets the service standard an average of 84 percent of the time. Trend based on statistics from 2006, 2007, 2008.

2 2007 Canadian Consumer Mass Marketing Fraud Survey

Program Activity: Canadian Intellectual Property Office — Revolving Fund

No sub-program activities or sub-sub-program activities have been identified. Therefore, the lowest reporting level is the program activity level.

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Appendix

This appendix provides information on each of the sub-program and sub-sub-program activities identified in Industry Canada's Program Activity Architecture. Activities are listed by the program activity and strategic outcome to which they contribute. Information on these program activities and the departmental strategic outcomes is provided in sections 1 and 2 of this document. By working to achieve the expected results for these activities, Industry Canada makes progress toward achieving results at the program activity and strategic outcome levels, and therefore towards fulfilling its mandate. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance.

Strategic Outcome - An innovative economy
Strategic Outcome

An innovative economy

Program Activity: Policy Sector — S&T and Innovation

Sub-Program Activity: Advisory Council on Science and Technology (ACST) Secretariat

Provision of secretariat services to the Advisory Council on Science and Technology

Expected Result: Provide the government's Advisory Council on Science and Technology with quality research and support services

Performance Indicators

Results

Trend

  • Number of recommendations made to the Minister of Industry and to the Prime Minister on issues related to science, technology, innovation and commercialization policies
  • In May 2007, the government consolidated its external S&T advice into the new Science, Technology and Innovation Council (STIC). This replaces the Advisory Council on Science and Technology (ACST), the Council of Science and Technology Advisors (CSTA), the Canadian Biotechnology Advisory Committee (CBAC) and the Office of the National Science Advisor (ONSA).
  • Not applicable
  • Number of ACST meetings and consultation events (round tables, meetings, focus groups)
  • Following its inception in October 2007, STIC held two full meetings of the Council on November 18–19, 2007 and January 14–15, 2008 at which it advanced work on S&T policy advice as requested by the Minister.
  • Not applicable
  • Number of web-based requests for reports and background papers
  • The Council's only paper to be released publicly is a report benchmarking Canada's S&T performance against international standards, slated for release in 2008–09.
  • Not applicable

 

Sub-Program Activity: Strategic Policy Branch
Development of strategic policy frameworks to improve Canada's science and technology, and commercialization environment

Expected Result: Integration of departmental and governmental objectives into the development of innovation policies

Performance Indicators

Results

Trend

  • Number of unique innovation items reviewed by the Director General Policy Committee (DGPC)
  • The DGPC met through
    2007–08 and reviewed three innovation items.
  • Not applicable. It is not useful to measure trends in results due to the nature of the work of the Policy Sector, where actual results vary from year to year depending on the current agenda and government priorities. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

 

Sub-Program Activity: Microeconomic Policy Analysis Branch (MEPA)
Microeconomic analysis in support of science and technology policy development

Expected Result: High quality microeconomic research and analysis on significant policy issues as input to policy development

Performance Indicators

Results

Trend

Number of:

  • Papers presented at conferences, seminars and round tables
  • 20 papers presented at conferences, seminars and round tables.
  • Not applicable*
  • Conferences, round tables and seminars organized (and number of attendees)
  • One conference that included 15 seminars organized, and 427 attendees in total.
  • Not applicable*
  • Research publications and reports
  • Seven research publications and reports.
  • Not applicable*
  • Current analysis publications and reports
  • Five current analysis publications and reports prepared for internal use.
  • Not applicable*
  • Citations of MEPA's publications
  • Citation performance indicator not measured. Reliable data are not available.**
  • Not applicable
  • Presentations at the Director General Policy Committee and the Economic Research Advisory Committee
  • Two presentations at the Director General Policy Committee and one presentation at the Economic Research Advisory Committee.
  • Not applicable*
  • Total hits (views) on economic analysis and statistics on Industry Canada website: 200,587 (Note that this total is not disaggregated by strategic outcome.)
  • Declining. The decline can be attributed to decreases in the numbers and types of research publications MEPA published online and the frequency with which the products were published.

* It is not useful to measure trends in results due to the nature of the work of the Policy Sector, where actual results vary from year to year depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

**Traditional citation measurement indexes focus on citations of articles published in academic journals. The main publishing venue for MEPA's research papers is a departmental working papers series. Papers published under this series are therefore not captured in the traditional scholarly-based indexes. Other citation measurement indexes, such as those available through Internet-based Google Scholar and RePEc, cover a scope of research material wider than that of academic journals. However, the number of citations captured by these indicators may be attributed not only to factors such as the quality of the research published but also to factors such as increased visibility and accessibility of the research, which these sources also offer. Citation counts are not included in MEPA's performance indicator in the 2008–09 Report on Plans and Priorities.

Sub-Program Activity: Innovation Policy Branch
Development of science, technology and innovation policies that enhance Canada's innovation capacity through promotion of investments in R&D infrastructure and skills development, and by ensuring the technology adoption capacity of the marketplace

Expected Result: Promotion of investment in R&D infrastructure and skills development, and promotion of the development of policies and programs supporting R&D, innovation and commercialization in the private sector

Performance Indicators

Results

Trend

  • Reports and consultation papers published, and Memoranda to Cabinet, policy documents, statistical reports, consultation papers and Treasury Board submissions
  • Prepared several policy documents that formed the basis for announcements in Budget 2008, such as announcements on:
    • Canada Global Excellence Research chairs
    • Vanier Scholarships
    • Increased funding to the three granting councils to perform research in diverse areas
    • Additional funding to Genome Canada
  • Organized six round tables across the country, which provided private sector observations on how the federal government could foster entrepreneurial, knowledge and people advantages through a more competitive business environment that encourages private sector investment in research and development, advanced technologies and skilled workers (this is a one-time event).
  • Meetings of the Federal/Provincial/Territorial Working Group on Innovation. These meetings informed the design and facilitated the implementation of the Centres of Excellence for Commercialization and Research (CECR) program announced in Budget 2007.
  • Led the preparation and approval of the following Treasury Board Submissions:
    • Seven centres of excellence for commercialization and research listed in Budget 2007
    • Additional funding to the Canada Foundation for Innovation
    • Extension of funding to the Canadian Institute for Advanced research.
  • Not applicable. It is not useful to measure trends in results due to the nature of the work of the Innovation Policy Branch, where actual results vary from year to year depending on the current agenda and priorities of the government.

Sub-Sub-Program Activity: Canadian Institute for Advanced Research (CIFAR)

To bring together world-class researchers to tackle significant issues confronting Canadian society and challenging our understanding of the natural world

Expected Result: Multidisciplinary teams of researchers are able to collaborate to push forward the frontiers of knowledge

Performance Indicators

Results

Trend

  • Amount of national and international recognition and number of awards provided to those researchers involved with CIAR

(Note: CIAR's acronym has changed to CIFAR)

  • In 2007–08, CIFAR supported 12 research programs that included 266 individual researchers.
  • Not applicable. The trend remains stable with respect to the number of research programs supported by the Institute in 2006–07.
  • During the year ending June 30, 2007, CIFAR researchers received 46 major awards and honours for which researchers from a broad range of disciplines are eligible, as well as 21 important field-specific prizes.
  • Based on Essential Science Indicators (ESI) data, in 2006–07 the following percentages of CIFAR researchers were in the top one percent in their field worldwide: senior program members, 42 percent; Canadian-based senior program members, 35.8 percent; advisory committee members, 47.5 percent.
  • Not applicable. Please note that CIFAR's fiscal year ends in June 2008, so final data for 2007–08 are not yet available.  Further, CIFAR's Funding Agreement with Industry Canada was being renegotiated during 2007–08.

Sub-Sub-Program Activity: Pierre Elliott Trudeau Foundation (now Trudeau Foundation)

To support research and the dissemination of research findings in the following fields of study in the humanities and human sciences: Canadian studies, history, international relations, journalism, law, peace and conflict studies, philosophy, political economy, political science, sociology, and urban and community studies

Expected Result: Expanded knowledge base in the social sciences and humanities and in public policy

Performance Indicators

Results

Trend

  • Volume of research performed by awards recipients
  • The following knowledge-transfer activities were organized in 2007–08:
    • Trudeau Conference on Public Policy, A Climate of Reconciliation: Economy, Social Justice and the Environment — Calgary.
    • Discussion on knowledge transfer, Dalhousie University: A symposium on Knowledge Transfer — Dalhousie University, Halifax.
    • Mentors Scholars Retreat — Massey College, Toronto.
    • Reflecting on the Second Wave, Canadian Feminism between 1960 and 2010 — University of Ottawa. Symposium hosted by Constance Backhouse, Trudeau Fellow, and Monique Bégin, Trudeau Mentor.
  • Not applicable. The trend remains stable with respect to the volume of knowledge dissemination activities supported by the Foundation.

Sub-Sub-Program Activity: Canada Foundation for Innovation (CFI)

Funds targeted to strengthen the capability of Canadian universities, colleges, research hospitals and other not-for-profit institutions to carry out world-class research and technology development

Expected Result: The strengthening of research capability at Canadian research institutions

Performance Indicators

Results

Trend

  • Percentage of Innovation Fund recipients that rate the quality of their new infrastructure as near world-class or better, as a result of CFI awards
  • Of those project leaders reporting on the Innovation Fund and with infrastructure sufficiently developed to permit comparison, 49 percent (142 of 290) reported that their infrastructure was comparable to the best in the world.
  • Declining. The percentage of project leaders that have considered their infrastructure comparable to the best in the world has averaged 48 percent  over the last four reporting periods (i.e. 2004 to 2007). This number has remained relatively constant since 2004.
  • 2007: 49 percent
  • 2006: 51 percent
  • 2005: 46 percent
  • 2004: 48 percent
  • Note: In the future, this indicator will include data for the Leading Edge Fund and the New Initiatives Fund.

Expected Result: Attracting and retaining researchers at Canadian research institutions

Performance Indicators

Results

Trend

  • Percentage of New Opportunities Fund (NOF) and Canada Research Chairs fund recipients whose recruitment to Canada and/or retention in Canada was influenced by CFI awards
  • 71 percent (1,891 of 2,665) of NOF and Canada Research Chairs (CRC) Infrastructure, Career Award, and Leaders Opportunity Fund (LOF) recipients report that the availability of the infrastructure was an important factor in recruitment and retention at the institution(s).
  • No change. The percentage of project leaders who report that the availability of the infrastructure was an important factor has remained at around 70 percent for the past three reporting periods (i.e. 2005 to 2007).
  • 2007: 71 percent
  • 2006: 72 percent
  • 2005: 71 percent
  • Note: In 2005–06, the NOF, the CRCIF, and the Career Awards merged into the LOF.

Sub-Sub-Program Activity: Canada–Israel Industrial Research and Development Foundation (CIIRDF)

Co-funding of a private sector foundation (50 percent contribution from Canada, 50 percent from Israel), which supports research and development collaboration between Canadian and Israeli firms

Expected Result: Strengthened Canadian business through global R&D cooperation

Performance Indicators

Results

Trend

  • Increase of employment at firms that have CIIRDF-funded projects
  • This program is no longer the responsibility of the Investment Partnerships Branch; therefore, no results information is available (currently managed by Foreign Affairs and International Trade Canada).
  • Not applicable

Sub-Sub-Program Activity: Council of Canadian Academies (CCA)

Expected Result: More informed public debate and government decision making on public policy issues that have scientific and/or technological underpinnings

Performance Indicators

Results

Trend

  • References to CCA assessments in public policy discussions and Memoranda to Cabinet
  • The CCA released its assessment report Influenza Transmission and the Role of Personal Protective Respiratory Equipment: An Assessment of the Evidence in December 2007. This assessment will be used to update the Canadian Pandemic Influenza Plan for the Health Sector. The report has been noted by provincial health care organizations (notably in British Columbia and Ontario) and received media coverage in specialized publications, in Canada and Europe.
  • Not applicable

Program Activity: Industry Sector — S&T and Innovation

Sub-Program Activity: Aerospace, Defence and Marine Branch
Communications, analysis and policy supporting innovation in aerospace, defence and marine industries

Expected Result: Suitable climate, initiatives and decisions supporting innovation in aerospace, defence and marine industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting innovation in aerospace, defence and marine industries, such as:
  • Aerospace R&D Expenditures: $986 million3
  • Improving

The amount of money the Canadian aerospace industry is spending on R&D has increased slightly, but the industry is concerned that R&D intensity (R&D as a percentage of sales) has decreased considerably, from 12 percent to 6 percent, over the last decade. This is significant because a lack of R&D will impact the industry's ability to compete on work packages for new aircraft platforms, which will be designed around new, leading-edge technologies.

R&D financing opportunities are available to defence, space, security and marine firms through Industry Canada's new Strategic Aerospace and Defence Initiative program. Canadian companies undertaking R&D can often benefit from the SR&ED tax credits program as well, making innovation more affordable. Canadian defence firms undertake around $250 million in R&D/year. It is especially important that R&D support the next-generation Joint Strike Fighter program, which is pushing the state of the art in Canada.

In the more mature shipbuilding industry, R&D expenditures are low, at about 1 percent of revenues.

  • Defence R&D Expenditures:  $250 million
  • Improving
  • Shipbuilding R&D Expenditures: 1 percent of revenue
  • No change
  • Intellectual property protection
  • No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • No data*
  • New indicator
  • Tax incentives for R&D
  • No data*
  • New indicator
  • Regulatory environment
  • No data*
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • No data*
  • New indicator

 

Sub-Program Activity: Automotive and Transportation Industries Branch
Communications, analysis and policy supporting innovation in automotive and transportation industries

Expected Result: Suitable climate, initiatives and decisions supporting innovation in automotive and transportation industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting innovation in automotive and transportation industries, such as:

The auto industry is a major driver of innovation in many fields and industries. Canadian assemblers are branch operations of foreign vehicle manufacturers whose global R&D activities are mainly concentrated in the headquarters of the companies. Canadian R&D expenditure may be understated as some technologies developed by company headquarters are applied to Canadian operations. In addition, in-house R&D expenditures are not captured by StatsCan data. Due to joint efforts between governments and the industry, Canada captured significant niche R&D opportunities from global vehicle and parts manufacturers.

The recently announced Government of Canada S&T policy provides a solid foundation for facilitating enhanced R&D cooperation between the private sector, universities and government in Canada.

  • Intellectual property protection
  • No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • No data*
  • New indicator
  • Tax incentives for R&D
  • Auto Industry Intramural R&D expenditures 2007: $524
  • New indicator
  • Regulatory environment
  • No data*
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • No data*
  • New indicator

 

Sub-Program Activity: Life Sciences Branch
Communications, analysis and policy supporting innovation in life sciences industries

Expected Result: Suitable climate, initiatives and decisions supporting innovation in life sciences industries

Performance Indicators

Results

Trend

Explanation of Results

Overall assessment of climate, programs, decisions and other major factors supporting innovation in life sciences industries, such as:

  • Intellectual property protection
  • No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • Biotech: 6,797 employees, or 50 percent of the workforce, of biotech industry in scientific direction or research and technicians.
  • New indicator
  • The Canadian biotech industry is one of the most innovative industries in Canada, employing a high proportion of scientific personnel. The pharmaceutical industry is also highly innovative and demands scientists and laboratory technicians for product development and manufacturing.
  • Pharmaceutical: Total R&D personnel in 2005 was
    5,806.
  • New indicator
  • Improving from 2004 figure of
    5,681 employees.
  • Medical Devices: Depends on scientists, engineers and HQP for product R&D and manufacturing.
  • New indicator
  • Shortages of some fields predicted by the association.
  • Tax incentives for R&D
  • The SR&ED program is the largest federal incentive program for R&D, providing $3.1 billion in tax assistance in 2006.
  • New indicator
  • Canadian biotechnology firms account for an estimated
    25 percent of the program.
  • Regulatory environment
  • In 2007, the Medical Devices Bureau indicated that overall medical device application performance ranged from 80–95 percent between January and August, dropping to 60–69 percent in October to December.4
  • New indicator
  • Health Canada accountability in cost recovery is an issue for industry and increasing inefficiencies in Canadian regulatory approvals can impact negatively on innovation. Health Canada's performance concerning medical device applications currently ranks as number three in the industry's top five issues, up from number four in 2007.
  • Six-month waiting times for primary pharmaceuticals, 12 months for standard.
  • New indicator
  • Waiting times for chemical pharmaceutical Health Canada approvals are internationally comparable. Times for biotech pharmaceutical Health Canada approvals, on average, are comparable (with delays for certain complex products).
  • Impact of other government department programs (subsidies, demonstrations)
  • No data*
  • New indicator
  • See comments concerning Health Canada under Regulatory Environment above. Domestic medical device sales are largely influenced by provincial/territorial health ministries' reimbursement policies and funding of health care institutions within their jurisdictions. BDC and NRCIRAP provide support for commercialization, while several federally-funded research programs and councils support health research in Canada, including CIHR, NCEs, NRC, and NSERC.
  • Industry structure (concentration, profitability, ownership)
  • Biotechnology: 530 firms in 2005 with 524 products in development at March 2008; 87 public biopharma firms with a market capitalization of $2 billion; 75 percent of firms are Canadian-owned; 75 percent are small, 15 percent are medium-sized and 10 percent are large companies.
  • New indicator
  • The industry is mainly Canadian owned. Significant shortages of early-stage financing sources. Two-thirds of firms have less than two years cash on hand at current burn rates, slowing the rate of R&D and innovation.
  • Profitability: Revenues in 2005 — $4.2 billion. For the 87 public biopharma companies in 2007, eight have positive net pre-tax profit margins.

Cash reserves: Financing for product development remains a problem, with 40 percent of biopharma firms having less than one year of cash for operations.

  • New indicator

Sub-Sub-Program Activity: Genome Canada

The primary funding and information resource relating to genomics and proteomics in Canada, to enable Canada to become a world leader in key areas such as agriculture, environment, fisheries, forestry, health and new technology development, as well as ethical, environmental, economic, legal and social issues related to genomics (GE3LS)

Expected Result: Effective management of the government's funding agreement with Genome Canada

Performance Indicators

Results

Trend

Explanation of Results

  • Submissions for funding appropriations
  • Treasury Board submission for $140 million.
  • Not applicable
  • The $140-million submission was approved by Treasury Board on March 11, 2008. These funds will be provided to Genome Canada over five years to support the continued operations of Genome Canada and the regional centres. A new domestic competition in a priority area and S&T platforms; and participation of Canadian researchers in a major international genomics project.
  • Negotiations with TBS and the Department of Finance Canada
  • Development of proposal for Budget 2007: Included negotiations with TBS and Finance Canada and resulted in increased funding of $140 million for Genome Canada.
  • Not applicable
  • The $140-million submission was approved by Treasury Board on March 11, 2008. These funds will be provided to Genome Canada over five years to support the continued operations of Genome Canada and the regional centres. A new domestic competition in a priority area and S&T platforms; and participation of Canadian researchers in a major international genomics project.
  • Renewal of Genome Canada's mandate and funding
  • Development of proposal for Budget 2007: Included negotiations with TBS and Finance Canada and resulted in increased funding of $140 million for Genome Canada.
  • Not applicable
Sub-Program Activity: Resource Processing Industries Branch
Communications, analysis, policy, programs, initiatives and services supporting innovation in resource processing industries

Expected Result: Suitable climate, initiatives and decisions supporting innovation in resource processing industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting innovation in the resource processing industries, such as:
  • Chemical industry5
  • The industry is dominated by multinational enterprises that have their R&D function outside Canada. NOVA Chemicals is the main exception. Technology developed anywhere within the MNE becomes available for implementation at subsidiary operations in Canada, provided the investment climate is viewed as attractive. Spending on innovation will be required in order to meet medium and longer-term government targets for GHG reductions.
  • Intellectual property protection
  • No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • High knowledge intensity, highly paid.
  • No change
  • Tax incentives for R&D
  • $1.3 billion spent on R&D.
  • No change
  • Regulatory environment
  • Regulatory environment has strong impact on competitiveness.
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • Top four firms responsible for 25 percent of industry output, top 50 firms for
    66 percent.
  • New indicator
  • Publications by and consultations with the resource processing industries
  • No data*
  • New indicator

Expected Result: Incremental innovation in resource processing industries

Performance Indicators

Results

Trend

Explanation of Results

Overall assessment of climate, programs, decisions and other major factors supporting innovation in the resource processing industries, such as:

 

Plastics: The industry is dominated by SMEs that have modest resources to dedicate to R&D. Much of the industry innovation comes from supplier industries (raw materials and machinery suppliers).

The government program to offer accelerated capital cost allowances is well-suited to this industry because machinery purchases usually occur with short lead times. A limiting factor has been that industry profitability is currently low, so cash flow necessary to make new investments is a constraint.

Steel: The industry continues to enjoy strong demand, high prices and good profitability. These factors affect the steel industry globally. In North America, higher prices in some offshore markets have led to reduced imports and supported price levels even as demand slowed in late 2007. However, rising energy costs (for gas and electricity) and raw materials (coal, coke and iron ore) are pushing up costs.

Adjusting to climate change and industry concerns about the cost of compliance as well as fear about production moving to jurisdictions with lower costs and/or environmental standards are issues for the industry. The industry is now 100 percent foreign owned and controlled, a dramatic change from two or three years ago when most of the industry was Canadian owned and controlled. Global consolidation in the steel industry coupled with the industry's return to profitability since 2004 have been responsible for the consolidation globally and the ownership changes in Canada.

 

Refined Petroleum Products: From a technology standpoint, the petroleum refining sector is mature.  However, spending on innovation will be required to meet government targets for air pollutants and GHG reductions.

Forest: During this period of consolidation and rationalization, the industry is moving towards more innovative products, processes and technologies.  Accelerating technology transfer and adoption will improve the industry's competitiveness.6

Wind and Photovoltaics: These are high growth industries. Wind has grown rapidly with installed wind capacity in Canada growing, on average, 52 percent per year for the past five years.7 PV power has grown as well, with installed capacity increasing 31 percent since 2006.

RPIB works with industry associations, industry, and OGDs in these emerging energy sectors to increase awareness of Canadian capabilities and opportunities for Canadian companies in Canada and abroad. These include both export development and investment attraction, thereby indirectly affecting industrial growth. In 2007, Industry Canada was involved in the Canadian presence at several international and domestic initiatives, including FC Expo where over 165 contacts were identified, Grove 2007 where over 40 one-on-one meetings were established for Canadian stakeholders, the CanWEA Annual Conference, and the APP. Sector studies, analyses, and Technology Roadmaps were completed to identify the areas with greatest growth potential. In 2007 RPIB completed seven significant analyses, studies and reports in energy sectors, and began two Technology Roadmaps with industry.

The impact of government programs varies. In wind, it is expected that the ecoENERGY for Renewable Power will positively impact the growth of the industry and the program has been highly subscribed.8

Hydrogen and Fuel Cells: RPIB works with industry associations, industry, and OGDs in these emerging energy sectors to increase awareness of Canadian capabilities and opportunities for Canadian companies in Canada and abroad, including both export development and investment attraction, thereby indirectly affecting industrial growth. The ability of emerging sectors to engage in the R&D that could help them to lower costs and improve technologically is limited (government programming is not generally tailored towards this sector).9

  • Intellectual property protection
  • Steel Industry: No data*
  • New indicator
  • Plastics Industry: No data*
  • New indicator
  • Refined Petroleum Products Industry: No data*
  • New indicator
  • Forest Sector: No data*
  • New indicator
  • Wind and Photovoltaics (PV) Industries: No data*
  • New indicator
  • Hydrogen and Fuel Cells: 84 newly approved patents reported in 2006 up from 64 in 2005; 918 total held by Canadian industry.
  • Improving
  • Highly qualified personnel supply (scientists and engineers)
  • Plastics Industry: Relatively high proportion of low-skilled jobs.
  • No change
  • Steel Industry:
    19,700 employees.
  • No change
  • Refined Petroleum Products Industry: High knowledge intensity, highly-paid employees.
  • Declining
  • Forest Sector: No data*
  • No change
  • Wind Industries: 2,200 employed in 2006, up from 1,200 in 2005.
  • Photovoltaic (PV) Industries:
    1,080.
  • Improving
  • Hydrogen and Fuel Cells: 2,043 employed in 2006; 15 percent growth since 2001.
  • Improving
  • Tax incentives for R&D
  • Plastics Industry: $134 million spent on R&D.
  • No change
  • Steel Industry: No data*
  • New indicator
  • Refined Petroleum Products Industry: No data*
  • New indicator
  • Forest Sector: No data*
  • New indicator
  • Wind and Photovoltaics (PV) Industries: No data*
  • New indicator
  • Hydrogen and Fuel Cells: Total R&D expenditures, $193 million; 73 percent is corporate.
  • New indicator
  • Regulatory environment
  • Plastics Industry: Regulatory environment may have strong impact on future competitiveness.
  • New indicator
  • Steel Industry: No data*
  • New indicator
  • Refined Petroleum Products Industry: Regulatory environment has strong impact on competitiveness.
  • New indicator
  • Forest Sector: No data*
  • New indicator
  • Wind and Photovoltaics (PV) Industries: No data*
  • New indicator
  • Hydrogen and Fuel Cells: No data*
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • Plastics Industry: No data*
  • New indicator
  • Steel Industry: No data*
  • New indicator
  • Refined Petroleum Products Industry: No data*
  • New indicator
  • Forest Sector: No data*
  • New indicator
  • Wind and Photovoltaics (PV) Industries: No data*
  • New indicator
  • Hydrogen and Fuel Cells: No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • Plastics Industry: Top four firms responsible for 10 percent of industry output, top 50 firms for 40 percent.
  • No change
  • Steel Industry:
  • $12.6 billion in shipments
  • Improving
  • $6 billion in exports
  • Improving
  • $2 billion trade balance
  • Improving
  • Refined Petroleum Products Industry: No data*
  • No change
  • Forest Sector:
  • Capital and repair expenditures: $6.5 billion.
  • Declining
  • Use of renewable energy: 60 percent.
  • Improving
  • Wind and Photovoltaics (PV) Industries:
  • In wind, 74 percent private companies; economic impact of wind $1.49 billion in 2006, double that of 2005. No data
  • Improving
  • In PV, installed capacity increased 31 percent in 2006 to 20.5 MW installed.
  • Declining
  • Hydrogen and Fuel Cells: Over 50 percent clustered in western Canada; revenue of $133 million on par with 2005.
  • Improving
  • Publications by and consultations with the resource processing industries
  • Plastics Industry: No data*
  • New indicator
  • Steel Industry: No data*
  • New indicator
  • Refined Petroleum Products Industry: No data*
  • New indicator
  • Forest Sector: No data*
  • New indicator
  • Wind and Photovoltaics (PV) Industries: No data*
  • New indicator
  • Hydrogen and Fuel Cells: No data*
  • New indicator
Sub-Program Activity: Service Industries and Consumer Products Branch
Communications, analysis and policy supporting innovation in service industries and consumer products industries

Expected Result: Suitable climate, initiatives and decisions supporting innovation in service industries and consumer products

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting innovation in the resource processing industries, such as:

Apparel: The apparel industry is a mature industry with a number of well-established companies. To face market globalization, Canadian companies are creating value added through design and are actively promoting their products in Canada, and worldwide, including the United States. The apparel industry is shifting from integrated local manufacturing to a system of global disintegrated designers and manufacturers producing strong brands selling to local distributors.

Environment: Between 2001 and 2006 the industry's annual growth ranged from 3 percent to 5 percent.
The water industry has surpassed the growth of the overall market at a rate between 4 percent and 6 percent  per year.
U.S.: Chief Export Market, accounting for 78 percent  of all exports in 2004, grown 72 percent  from 1998.
Canadian water market: $7.8 billion industry, which is 44 percent of the total Canadian environmental industry.

Services: The industry accounted for 42 percent  of total Canadian R&D expenditure in 2007, up 10 percent since 2001. The three leading service industries performing R&D in 2007 continue to be: information and cultural industries ($1.7 billion); scientific research and development ($1.267 billion); and communications equipment ($1.265 billion).

Textiles: Despite a slight decrease in total intramural R&D expenditures, the textile industry increased R&D spending as a percentage of both GDP and shipments in 2007 over 2006. This may be due, in part, to a shift towards value-added textiles, which usually possess a higher R&D component than other types of textiles. Initiatives such as CANtex also support this shift.

  • Intellectual property protection
  • Apparel Industry: No data*
  • New indicator
  • Environment Industry: No data*
  • New indicator
  • Services Industry: No data*
  • New indicator
  • Textiles: No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • Apparel Industry: No data*
  • New indicator
  • Environment Industry: Employs more than 106 000 Canadians.
  • New indicator
  • Services Industry: No data*
  • New indicator
  • Textiles: No data*
  • New indicator
  • Tax incentives for R&D
  • Apparel Industry: 2002 — $7.7 million R&D expenditures.
  • New indicator
  • Environment Industry: No data*
  • New indicator
  • Services Industry: $6.6 billion R&D expenditures.
  • New indicator
  • Textiles: 2007 — $53 million R&D expenditures; 2006 — $54 million R&D expenditures, decrease of 1.9 percent.
  • Declining
  • Regulatory environment
  • Apparel Industry: No data*
  • New indicator
  • Environment Industry: No data*
  • New indicator
  • Services Industry: No data*
  • New indicator
  • Textiles: No data*
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • Apparel Industry: No data*
  • New indicator
  • Environment Industry: No data*
  • New indicator
  • Services Industry: No data*
  • New indicator
  • Textiles: No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • Apparel Industry: No data*
  • New indicator
  • Environment Industry: Revenue — $18.5 billion, an increase of almost 17 percent from 2 years previous; approximately 14,000 companies.
  • Annual growth rate improving
  • Water industry improving
  • Services Industry: No data available for Language Industries.
  • New indicator
  • Textiles: No data*
  • New indicator

 

Sub-Program Activity: Policy and Sector Services Branch
Communications, analysis and policy supporting innovation in policy and sector services

Expected Result: Suitable climate, initiatives and decisions supporting innovation in policy and sector services

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting an innovative economy, such as:
  • Intellectual property protection
  • No data*
  • New indicator
  • Highly qualified personnel supply (scientists and engineers)
  • No data*
  • New indicator
  • Tax incentives for R&D
  • No data*
  • New indicator
  • Regulatory environment
  • No data*
  • New indicator
  • Impact of other government department programs (subsidies, demonstrations)
  • No data*
  • New indicator
  • Industry structure (concentration, profitability, ownership)
  • No data*
  • New indicator

Sub-Program Activity: Canadian Biotechnology Secretariat
Horizontal policy advice and program management in support of Canadian Biotechnology Strategy partner departments and agencies, and secretariat services to the Canadian Biotechnology Advisory Committee

Expected Result: Interdepartmental coordination to advance biotechnology priorities

Performance Indicators

Results

Trend

Explanation of Results

  • Options and outcomes developed in the context of science and technology objectives
  • The CBSec was shut down further to the announcements in the S&T Strategy. Work was concentrated on developing a Treasury Board submission for the wind-down of CBSec and the Canadian Biotechnology Advisory Committee (CBAC).
  • Produced CBAC's Annual report for 2006–07.
  • Not applicable
  • Enhancements to the Bionetwork, the Government of Canada's biotechnology knowledge management tool
  • Successfully transferred Bionetwork to the departmental Biotechnology office at Health Canada.
  • Not applicable

Expected Result: Development of the Government of Canada's Public Information Program for Biotechnology

Performance Indicators

Results

Trend

Explanation of Results

  • Increase use of BioPortal and feedback on quality
  • Successfully transferred BioPortal to the Horizontal Co-ordination and Integration Unit at Canadian Food Inspection Agency.
  • Not applicable

* Results for this indicator are not provided, as the indicator chosen is too broad in scope and is not specific enough to the respective industrial sector. This indicator is currently under review.

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

Sub-Program Activity: Information and Communications Technologies Branch
Strengthening of Canada's science and technology capacity by addressing human resource requirements, international linkages and commercialization issues; delivery of CANARIE and Precarn on behalf of the Government of Canada

Expected Result: Ongoing investment in the R&D infrastructure

Performance Indicators

Results

Trend

  • Investment in research organizations

  • Links to over 375 institutions — Transition to a new backbone network and the launch of the Infrastructure Extension Program and the Network-Enabled Platforms Program.

    These programs support CANARIE Inc. objectives to expand and upgrade the advanced research network and to develop, demonstrate and implement next-generation technologies.

  • Funded 12 Precarn Inc. commercialization projects.

  • Improving

Sub-Sub-Program Activity: CANARIE Inc.

Collaborate with stakeholders to develop and use advanced networks, networking technologies and applications in order to deliver a range of benefits to Canadians and researchers

Expected Result: An advanced research network across Canada

Performance Indicators

Results

Trend

  • Number of institutions connected
  • Total number of institutions connected: 95 universities, 77 colleges, 58 research centres, 34 hospitals/health services/health institutions (excluding Quebec), 56 federal government labs, and 11 cultural institutions.
  • Improving

  • Amount of money invested annually
  • $15 million invested as part of a five-year conditional grant.
  • Increase of $10 million over the 2002–07 grant.

Sub-Sub-Program Activity: Precarn Inc.

Support collaborative research for the development of the Canadian intelligent systems industry and encourage the diffusion and commercial exploitation of new technologies

Expected Result: Increased development and use of intelligent systems technologies

Performance Indicators

Results

Trend

  • Number of projects funded and amount of funding involved

  • Three National Automotive Initiative Projects, $1.464 million.

  • Two National Program Projects, $1.2 million.

  • Seven Small Company Regional Alliance Projects, $1.97 million.

  • No Technology Gap Projects were approved as this program was completed in March 2007.

  • Declining — Unless new funds are approved, Phase 4 will sunset on March 31, 2010.

Program Activity: Communications Research Centre Canada (CRC)

Sub-Program Activity: CRC — Wireless and Photonics Research
Conducting of R&D on innovative concepts, systems and enabling technologies for the convergence of telecommunications systems and to improve the security, interoperability and reliability of communications networks in Canada

Expected Result: Policy makers, regulatory committees and standards organizations as well as program development sectors are well informed and advised of new technical developments and challenges that could impact the performance, security, interoperability and reliability of Canadian Communications networks

Performance Indicators

Results

Trend

  • Number of CRC technical inputs provided to groups developing programs related to the telecommunications sector, including the Spectrum, Information Technologies and Telecommunications Sector and Technology Partnerships Canada of Industry Canada, the Canadian Space Agency, and Public Safety and Emergency Preparedness Canada

  • 10 technical inputs provided to groups developing programs related to the telecommunications sector

  • New indicator

 

Sub-Program Activity: CRC — Defence R&D
Provision of scientific knowledge and expertise in wireless communications to National Defence in order to improve decision making and operation capability of the Canadian Forces

Expected Result: Improved decision-making by DND on new technologies related to future military communications

Performance Indicators

Results

Trend

  • Amount of annual funding received from DND to conduct research and testing on communications technologies that could be of use to the Canadian Forces

  • $7.38 million received from DND to conduct research and testing on communications technologies that could be of use to the Canadian Forces. 

  • New indicator

  • Number of DND technology development programs led by CRC

  • 13 DND technology development programs led by CRC.

  • New indicator

  • Number of NATO and the Technical Cooperation Program committees led by CRC

  • Three NATO and Technical Cooperation Program committees led by CRC.

  • New indicator

 

Sub-Program Activity: CRC — Research Support
To provide business development, technology transfer, and information networks and systems support of CRC R&D efforts, liaison and collaboration with the international science and technology community; and to increase opportunities for the commercialization of technologies

Expected Result: The Canadian telecommunications sector has knowledge of and access to CRC's intellectual property portfolio

Performance Indicators

Results

Trend

  • Number of research partnerships between CRC and private sector, academic and national/international research organizations

  • 39 new agreements and contracts created between CRC and private sector, academic and national/international research organizations.

  • New indicator

  • 2,850 electronic downloads for two issues (June and November 2007).

  • New indicator

Program Activity: Technology Partnerships Canada (TPC)

Sub-Program Activity: TPCR&D Support Program
Strategic investments in industrial research, pre-competitive development and related studies

Expected Result: Leverage of private sector R&D investment

Performance Indicators

Results

Trend

  • Weighted average (by value) TPC sharing ratio

  • Not applicable

  • No change

  • Dollars of total innovation spending leveraged per dollar of TPC investment

  • Not applicable

  • No change

Expected Result: Increased skills, knowledge and competencies of Canadian companies

Performance Indicators

Results

Trend

  • Actual number of new jobs created and/or maintained in the previous calendar year

  • Not applicable

  • No change

Expected Result: Repayments recycled into program funds

Performance Indicators

Results

Trend

  • Repayment amount collected

  • $168,864,128.59

  • Improving

 

Sub-Program Activity: TPC — h2 Early Adopters Program
Investments in new hydrogen technology demonstration projects that will bring Canada into the hydrogen economy

Expected Result: Accelerate the market adoption of hydrogen and hydrogen-compatible technologies

Performance Indicators

Results

Trend

  • Number of participants involved in demonstration projects

  • Not applicable

  • No change

Expected Result: Leverage of private sector R&D investment

Performance Indicators

Results

Trend

  • Weighted average (by value) TPC sharing ratio

  • Not applicable

  • No change

  • Dollars of total innovation spending expected, leveraged per dollar of TPC investment

  • Not applicable

  • No change

 

Sub-Program Activity: Program for Strategic Industrial Project
Strategic investments in the automotive sector through supporting industrial research, pre-competitive development and technology adaptation and adoption projects designed to encourage private sector investments

Expected Result: Leverage of private sector R&D investment

Performance Indicators

Results

Trend

  • Weighted average (by value) TPC sharing ratio

  • 30 percent

  • New indicator

  • Dollars of total investment spending expected

  • $1,445,000

  • New indicator

Expected Result: Projects funded

Performance Indicators

Results

Trend

  • Number of projects funded

  • One

  • New indicator

  • Dollar value of projects funded

  • $55 million funding towards an estimated $1.5 billion project

  • New indicator

 

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Appendix

This appendix provides information on each of the sub-program and sub-sub-program activities identified in Industry Canada's Program Activity Architecture. Activities are listed by the program activity and strategic outcome to which they contribute. Information on these program activities and the departmental strategic outcomes is provided in sections 1 and 2 of this document. By working to achieve the expected results for these activities, Industry Canada makes progress toward achieving results at the program activity and strategic outcome levels, and therefore towards fulfilling its mandate. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance.

Program Activity: Policy Sector — Economic Development

Program Activity: Policy Sector – Economic Development

Strategic Outcome

Competitive industry and sustainable communities

Sub-Program Activity: International and Intergovernmental Affairs — Economic Development

Impact of international trade, investment and services negotiations on industry interests identified and assessed

Expected Result: Alignment of federal and provincial/territorial innovation, industrial development and competitiveness policy

Performance Indicators

Results

Trend

  • Number of meetings with provinces/territories

  • Three meetings with provinces/territories

  • Not applicable*

Expected Result: Integration of departmental interests into the government's international policy positions

Performance Indicators

Results

Trend

Number of:

  • International trips and missions coordinated for the Minister



  • 18 international trips and missions coordinated for the Minister



  • Not applicable*

  • Cabinet briefings on international issues

  • Two Cabinet briefings on international issues

  • Not applicable*

  • Cabinet briefings on trade issues

  • Four Cabinet briefings on trade issues

  • New indicator. The government's trade agenda is intensifying.

Expected Result: Timely processing of notifications and applications for review filed by foreign investors under the Investment Canada Act

Performance Indicators

Results

Trend

  • Time required to process notifications and applications

  • Average time to process notifications was 17 days

  • Improving

  • Average time to process applications was 55 days

  • Improving

* It is not useful to measure trends in results due to the nature of the work of the Policy Sector, where actual results vary from year to year depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

Sub-Program Activity: Strategic Policy Branch — Economic Development

Development of strategic policy frameworks for economic and sustainable development

Expected Result: Integration of departmental and governmental objectives into the development of economic and sustainable development policies

Performance Indicators

Results

Trend

  • Number of unique economic development and sustainable development items reviewed by the Director General Policy Committee (DGPC)

  • The DGPC met through
    2007–08 and reviewed three economic development and sustainable development items.

  • Not applicable. It is not useful to measure trends in results due to the nature of work of the Policy Sector, where actual results vary from year to year, depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

Sub-Sub-Program Activity: Sustainable Development Strategy

Development and implementation of the Department's Sustainable Development Strategy

Expected Result: Increased development, commercialization, adoption and diffusion of environment, energy and bio-based technologies

Performance Indicators

Results

Trend

  • Number of new technologies commercialized/diffused

  • No results to report at this time as they are planned to occur within a three-year time period ending December 2009.

  • New indicator

  • Number of new manufacturing facilities in renewable energy sector

  • No results to report at this time as they are planned to occur within a three-year time period ending December 2009.

  • New indicator

  • Number of formal partnerships regarding the development of the hydrogen economy

  • Four projects; five partnerships; 37 other consortia applied for support; 42 total partnerships/consortia; more than 35 codes.

  • New indicator

Expected Result: Increased use by firms, industries and institutions of sustainability and corporate social responsibility practices, and increased consumer awareness of sustainability issues

Performance Indicators

Results

Trend

  • Number of Canadian companies that have:

   
  • Adopted ISO 14001
  • 1,679 in 2006

  • Not applicable **

  • Produced sustainability reports

  • 108

  • Declining*

Expected Result: Increase the competitiveness of Canadian companies by supporting their R&D of innovative market-relevant products, processes and technologies

Performance Indicators

Results

Trend

  • Number of technologies commercialized/diffused
  • Expected results are planned to occur within three-year time period ending December 2009.
  • New indicator

Expected Result: Maximized economic development opportunities in the renewable energy sector

Performance Indicators

Results

Trend

  • Number of new manufacturing facilities in the renewable energy sector
  • Industry Canada is currently working with Canadian industry to update the 2003 Fuel Cell Commercialization Roadmap. The objective is to provide progress in the industry as it works towards the manufacture and commercialization of near-term fuel cell applications, including materials handling, buses, residential and backup power and micro fuel cell products and services. It will also identify issues and challenges for firms to move to commercial manufacturing and become cash-flow positive.
  • New indicator
Expected Result: Enhanced partnerships with target stakeholders in domestic/international community

Performance Indicators

Results

Trend

  • (Note: Although the 2007–2008 RPP provides no performance indicator, the suggested wording for this indicator should be "Number and type of partnerships developed.")

  • Resource Processing Industries Branch organized a Canadian Pavilion including eight Canadian companies at a Hydrogen Fuel Cell Trade Show and Symposium in London, U.K. Results: 500 visitors, 40 one-on-one meetings with potential European partners; 56 valuable contacts made; and 26 business leads developed.

  • RPIB coordinated Canadian hydrogen fuel cell presence at three key international events:

    1. International Partnerships for the Hydrogen Economy SC meeting, Italy, November 2008.

    2. IPHE ILC Meeting, Essen, Germany, February 2008 (these enhanced partnerships with the U.S. and other member countries of the IPHE fuel cell industry).

    3. Fuel Cell Expo in Tokyo, February 2008 (RPIB organized a Canadian Pavilion and program for a delegation of 12 Canadian organizations in Tokyo, 20 Canadians attended, 6,000 visits to the Canadian Pavilion; 151 foreign representatives at seminar; four articles on Canadian expertise in Tokyo media, three more articles expected).

  • Life Sciences Industries Branch established partnerships with domestic stakeholders in British Columbia, Alberta, and Ontario in the chemical, forestry and agricultural sectors.
  • New indicator

Expected Result: Increased awareness and education, partnership and investment opportunities, and the potential of hydrogen and fuel cell technology

Performance Indicators

Results

Trend

  • Number of formal partnerships regarding the development of the hydrogen economy
  • Resource Processing Industries Branch organized a Canadian Pavilion including eight Canadian companies at a Hydrogen Fuel Cell Trade Show and Symposium in London, U.K.  Results: 500 visitors; 40 one-on-one meetings with potential European partners; 56 valuable contacts made; and 26 business leads developed. This served to enhance partnerships with members of IPHER and increase awareness of Canadian capability in this sector.
  • New indicator

Expected Result: Help improve implementation of corporate responsibility and sustainability as well as competitive advantage for Canadian companies by using the standards

Performance Indicators

Results

Trend

  • Number of Canadian companies that have adopted ISO 14001
  • 1,679 in 2006
  • Not applicable **

Expected Result: Expanded application of CSR business-oriented approaches within a competitive Canadian marketplace

Performance Indicators

Results

Trend

  • Number of Canadian companies that have produced sustainability reports
  • 108
  • Declining*

* According to the study conducted by Stratos Inc. on behalf of Industry Canada and others, the number of corporate sustainability reporters in Canada has increased from 57 to 108 since 2001. Over the same period, the percentage of TSX companies that produce sustainability reports increased from 10 percent to 18 percent. That said, since 2005, there has been a slight dip in Canadian corporate sustainability reporting with a five-percent decrease between 2005 and 2007 (from 114 to 108) and a decline in the number of TSX companies producing stand-alone sustainability reports from 25 percent in 2005 to 18 percent in 2007. This is set against the steady increase in the number of TSX companies including at least some sustainability information in their annual reports in a stand-alone report from 70 percent in 2005 to 80 percent in 2007.

** Numbers reported in 2006–07 DPR for the number of Canadian companies adopting ISO 14001 were incorrect. In 2005, 1,636 Canadian companies had adopted ISO 14001.

Program Activity: Policy Sector - Economic Development

Sub-Program Activity: Microeconomic Policy Analysis Branch (MEPA) — Economic Development

Microeconomic analysis in support of economic policy development

Expected Result: High-quality microeconomic research and analysis on significant policy issues as input to policy development

Performance Indicators

Results

Trend

  • Number of:

  • Papers presented at conferences, seminars and round tables conferences, round tables and seminars organized (and number of attendees)

  • Four papers presented at conferences.

  • Not applicable*

  • Conferences, round tables and seminars organized (and number of attendees)

  • Two seminars, with 58 attendees in total.

  • Not applicable*

  • Research publications and reports

  • Four papers and one internal report.

  • Not applicable*

  • Current analysis publications and reports

  • One current analysis publication and two internal reports

  • Not applicable*

  • Citations of MEPA's publications

  • Citation performance indicator not measured. Reliable data are not available.**

  • Not applicable*

  • Presentations at the Director General Policy Committee and the Economic Research Advisory Committee

  • One presentation at the Director General Policy Committee and the Economic Research Advisory Committee.
  • Not applicable*

  • Total hits (views) on Economic Analysis and Statistics page on the Industry Canada website: 200,587 (Note that this total is not disaggregated by strategic outcome).

  • Declining. The decline can be attributed to decreases in the numbers and types of research publications MEPA published online and the frequency with which the products were published.

* It is not useful to measure trends in results due to the nature of work of the Policy Sector, where actual results vary from year to year depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the Policy Sector, Public Policy Services will be moved under Internal Services in the Program Activity Architecture in 2009–10.

** Traditional citation measurement indexes focus on citations of articles published in academic journals. The main publishing venue for MEPA's research papers is a departmental working papers series; papers published under this series are therefore not captured in the traditional scholarly-based indexes. Other citation measurement indexes, such as those available through Internet-based Google Scholar and RePEc, cover a scope of research material beyond that of academic journals. However, the number of citations captured by these indicators may be attributed not only to factors such as the quality of the research published but also to factors such as the increased visibility and accessibility of the research, which these sources also offer. Citation counts are not included in MEPA's performance indicator in the 2008–09 Report on Plans and Priorities.

Program Activity: Policy Sector - Economic Development

Sub-Program Activity: Small Business Policy Branch

Policy advice on small business issues

Expected Result: Increased awareness and use of information relating to small business issues by policy-makers and other small business stakeholders

Performance Indicators Results Trend
  • Number of quality (i.e., accuracy, timeliness, responsiveness and clarity) references to small business issues in policy and program instruments (e.g., Memoranda to Cabinet, aide-mémoire, Treasury Board Submissions)
  • 38 references (research reports, analysis, briefing documents, consultations and outreach) related to small business policy and programs.
  • Provided accurate and timely responses to numerous requests for information (online and telephone inquiry).
  • Improving

 

Program Activity: Policy Sector - Economic Development

Sub-Program Activity: Security and Prosperity Partnership (SPP) Branch

Support key Security and Prosperity Partnership of North America priorities, aimed at enhancing collaboration within North America on issues related to prosperity, security and quality of life through interdepartmental/governmental efforts as well as through bilateral and trilateral discussions and initiatives with SPP partners in Canada, the United States and Mexico

Expected Result: Strengthen bilateral and trilateral cooperation with the United States and Mexico within the SPP framework through ongoing collaboration and discussions across areas of SPP working group activities, including security, transportation, e-commerce, manufactured goods, environment and public health, while ensuring that strong representation and progress on initiatives are in the best interest of Canadians

Performance Indicators Results Trend
  • Support SPP Ministers' Meeting and Leaders' Summit to be held in Canada aimed at moving forward on mutually agreed to key prosperity and competitiveness issues important to the North American context
  • Leaders' Summit successfully held in Montebello where leaders announced priorities to improve security, prosperity, and quality of life as follows: Enhancing the Global Competitiveness of North America; Safe Food and Products; Sustainable Energy and the Environment; Smart and Secure Borders; and Emergency Management and Preparedness.
  • Not applicable
  • Correlate and present a harmonized position among working groups to articulate a common federal position in ongoing discussions with SPP partners
  • Trilateral Ministers responsible for security and prosperity, including the Minister of Industry, met in Los Cabos, Mexico, February 27–28, 2008.  Ministers reviewed progress and set direction on priorities for the 4th North American Leaders' Summit, held in New Orleans.
  • Led preparations on the SPP for the 4th North American Leaders' Summit.
  • Not applicable

Program Activity: Operations Sector — Economic Development

Program Activity: Operations Sector - Economic Development
Sub-Program Activity: Canada Small Business Financing (CSBF) Program

Administration of the Canada Small Business Financing Act and the Small Business Loans Act

Expected Result: Access to debt financing for SMEs
Performance Indicators Results Trend
  • Number of loans registered
  • 9,015 loans registered
  • Declining
  • Value of loans registered
  • $1.0068 billion
  • Declining
  • Level of incrementality
  • 75.6 percent of CSBF borrowers surveyed obtained some degree of financial incrementality
  • Declining
Expected Result: Awareness of and satisfaction with the CSBF Program on the part of participating lenders
Performance Indicators Results Trend
  • Levels of awareness and satisfaction with the program and its parameters on the part of participating lenders
  • A Lender Awareness and Satisfaction Survey conducted by Circum Network Inc. in 2004 indicated 87 percent satisfied, and 85 percent are aware of the program, and its partners
  • No change

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: FedNor

Economic stability, growth, diversification, job creation and sustainable communities in Northern and rural Ontario

Expected Result: Improved competitiveness and/or sustainability of communities and key sectors in Northern and rural Ontario
Performance Indicators Results Trend
  • Number of community economic development plans developed or updated
  • 128 community economic development plans developed or updated
  • New indicator
  • Number of SMEs created, expanded or maintained
  • 4,289 SMEs created, expanded or maintained
  • New indicator
  • Funds leveraged from program investments
  • Funds leveraged from program investments ranged from 1 to 3.2 times the FedNor investment
  • New indicator

Sub-Sub-Program Activity: Community Futures Program

Community economic development in rural Ontario

Expected Result: Improved competitiveness and/or sustainability of communities and key sectors in rural Ontario
Performance Indicators Results Trend
  • Number of community economic development plans developed or updated
  • 28 community economic development plans developed or updated (all 61 CFDCs are engaged in community development planning but at different stages of implementation)
  • Improving
  • Number of SMEs created, expanded or maintained
  • 3,835 SMEs created, expanded or maintained
  • Improving
  • Funds leveraged from Community Futures Programs investments
  • Funds leveraged from Community Futures Programs investments ranged from 1 to 1.7 times the FedNor investment
  • The ratio declined from 1.8 in 2006–07 to 1.7 in 2007–08, possibly due to tighter commercial bank lending conditions

Sub-Sub-Program Activity: Northern Ontario Development Program (NODP)

Regional and community development in Northern Ontario

Expected Result: Improved competitiveness and/or sustainability of communities and key sectors in Northern Ontario
Performance Indicators Results Trend
  • Number of community economic development plans developed or updated
  • 54 community economic development plans developed or updated
  • New indicator
  • Number of SMEs created, expanded or maintained
  • 400 SMEs created, expanded or maintained
  • New indicator
  • Funds leveraged from NODP investments
  • Funds leveraged from NODP investments ranged from 1 to 2.3 times the NODP amount
  • Improving

Sub-Sub-Program Activity: Eastern Ontario Development Program (EODP)

Community economic development in rural Eastern Ontario

Expected Result: Improved competitiveness and/or sustainability of communities and key sectors in rural Eastern Ontario
Performance Indicators Results Trend
  • Number of community economic development plans developed or updated
  • 46 community economic development plans developed or updated
  • New indicator
  • Number of SMEs created, expanded or maintained
  • 54 SMEs created, expanded or maintained
  • New indicator
  • Funds leveraged from EODP investments
  • Funds leveraged from EODP investments ranged from 1 to 5.5 times the EODP amount
  • New indicator

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Sectorial Strategies and Services Branch / Canada-Ontario Infrastructure Program (COIP)

Improved community infrastructure through investments in rural and municipal infrastructure in Ontario, with an emphasis on green municipal infrastructure such as water and wastewater systems

Expected Result: Improved community infrastructure in Ontario
Performance Indicators Results Trend
  • Percentage of Ontario population that has benefited from investments made under COIP
  • 83 percent of Ontario's population have benefited from COIP investments
  • No change

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Regional Delivery

Delivery of programs and services across Canada

Expected Result: Increased awareness and access to government business-related information, programs and services, and facilitated compliance for business

Performance Indicators

Results

Trend

  • Service usage

Ontario:

  • 46,093 used assisted channels (i.e. telephone calls, in-person visits, email, mail and fax)

  • Improving

  • Improving

Yukon Territory:

  • 768 used assisted channels (i.e. telephone calls, in-person visits, email, mail and fax)

  • Declining

  • 118,727 Internet visits to Canada Business network websites

  • Declining

Northwest Territories:

  • 768 used assisted channels (i.e. telephone calls, in-person visits, email, mail and fax)

  • Declining

  • 118,727 Internet visits to Canada Business network websites

  • Declining

Nunavut:

  • 768 people used assisted channels (i.e. telephone calls, in-person visits, email, mail and fax)

  • Declining

  • 118,727 Internet visits to Canada Business network websites

  • No change

Expected Result: Increased use of self-service channels

Performance Indicators

Results

Trend

  • Channel usage trends

  • Ontario: 1,049,314 Internet visits

  • Improving

  • Yukon Territory: 118,727 Internet visits

  • Declining

  • Northwest Territories: 34,603 Internet visits

  • Declining

  • Nunavut: 24,608 Internet visits

  • No change

Expected Result: Improved departmental understanding of regional socio-economic environment, issues, and implications for policy, programs, implementation and other initiatives

Performance Indicators

Results

Trend

  • Feedback on regional support, advice and intelligence from the Minister's Office and senior management

  • Feedback from senior management specifically on enhanced regional strategic intelligence (e.g. increased specificity and regularity), as well as the dissemination of information and data itself, was both positive and constructive. Senior management sees value in the intelligence provided and has seen improvements in its relevance, timeliness and uniformity.

  • No change

  • Accurate and timely regional advice contributed to 37 formal requests for information from senior management.

  • Declining

  • Over 145 regional events and announcements were conducted by Industry Canada senior management, the Minister, Secretary of State, Parliamentary Secretary and federal ministers during the period covered. When feedback was given, the Minister's Office, the Secretary of State and senior management indicated a very high degree of satisfaction regarding the information, advice and intelligence prepared and provided by the regional offices for these events and announcements.

  • Improving

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Section 41, Official Languages Act

Improved participation by official-language minority communities (OLMCs) in existing federal economic development programs and services

Expected Result: Encourage participation of OLMCs in Industry Canada's programs
Performance Indicators Results Trend
  • The level of funding that OLMCs have received from Industry Canada
  • Industry Canada total investments, excluding initiatives under the Federal Action Plan for Official Languages was $30 million.
  • Not applicable. No trend is detectable.
  • The level of funding leveraged from Industry Canada partners
  • Funding of $400,000 from Industry Canada leveraged spending of $744,000 from ACOA, CED, and WED for their internship programs.
  • Improving. There appears to be an increasing trend.

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Service to Business: Strategy and Innovation

Advancement of the service-to-business vision and improve client-centred government services to business

Expected Result: Improved availability of multi-jurisdictional permit and licence information accessible to business
Performance Indicators Results Trend
  • Level of client satisfaction
  • Eight provinces and territories and over 90 municipalities are now using BizPaL services, increasing client access.
  • Improving

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Canada Business — National Secretariat

Increased awareness and access to government business-related information, programs and services and facilitated compliance with regulations for businesses

Expected Result: Increased awareness and access to government business-related information, programs and services and facilitated compliance for businesses

Performance Indicators

Results

Trend

  • Service usage

  • 234,191 clients using assisted channels (i.e. telephone calls, in-person visits, email, mail and fax), a decrease of 3.4 percent over 2006–07.

  • Declining

  • 7 million Internet visits to Canada Business network websites (not including British Columbia).

  • Improving

Expected Result: Increased use of self-service channels

Performance Indicators

Results

Trend

  • Channel usage trends

  • 7 million Internet visits to Canada Business network websites.

  • Improving

Expected Result: Reduced complexity in accessing programs and services and compliance requirements for SMEs

Performance Indicators

Results

Trend

  • Level of client satisfaction

  • In 2006–07, Canada Business conducted a client-satisfaction survey of its 13 service centres:

  • 83 percent expressed satisfaction with the overall quality of service.

  • 81 percent expressed satisfaction with service delivery.

  • 91 percent expressed no problems with service.

  • A public opinion research project was conducted in 2007–08 with results to be delivered in the first quarter of 2008–09 (results will be published in the 2008–09 DPR).

  • No change

Expected Result: Improved SME business planning and market research

Performance Indicators

Results

Trend

  • Level of client satisfaction

  • In 2006–07, Canada Business conducted a client-satisfaction survey of its 13 service centres:

  • 83 percent expressed satisfaction with the overall quality of service.

  • 81 percent expressed satisfaction with service delivery.

  • 91 percent expressed no problems with service.

  • A public opinion research project was conducted in 2007–08 with results to be delivered in the first quarter of 2008–09 (results will be published in the 2008–09 DPR).

  • Not applicable

  • Use of business support resources

  • 43,518 new business plans created.

  • Improving

 

Program Activity: Operations Sector - Economic Development

Sub-Program Activity: Student Connections

Increased knowledge and use of Internet and e-commerce by Canadian SMEs and seniors, and increased youth knowledge, skills and marketability for employment

Expected Result: Increased knowledge and skills related to the Internet and e-commerce applications and technologies on the part of SMEs and seniors
Performance Indicators Results Trend
  • Client perceptions of increased knowledge and skills
  • 75 percent reported that they received practical instruction that improved their use of information technology.
  • Declining
Expected Result: Practical, short-term work experience for students in post-secondary IT-related studies
Performance Indicators Results Trend
  • Number of youth hired
  • 400 youths hired.
  • Slightly improving

Program Activity: Industry Sector — Economic Development

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Aerospace, Defence and Marine Branch

Communications, analysis and policy supporting competitiveness and sustainability in aerospace, defence and marine industries

Expected Result: Competitive and sustainable Canadian industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as:

Aerospace: The Canadian aerospace industry is on the cusp of major growth opportunities, driven in large part by the launch (or impending launch) of new aircraft platforms. Canadian companies that successfully bid on work packages for these new aircraft platforms may benefit from 15 to 20 years of work. Strong Canadian participation in these platforms could have important economic benefits, including job creation, to the Canadian economy.

Space: Over the last five years, total revenues generated by the space sector have increased by 39 percent. The U.S. has continued to be the strongest performing export market for Canada's space firms, representing 45.2 percent of the total export revenues in 2006. Europe was the second strongest export market at 29 percent, followed by Asia.

Shipbuilding: It is difficult to find skilled workers for shipbuilding, especially in western Canada due to competition from energy projects and the Vancouver 2010 Winter Games construction. Three of the four major shipyards are now operating close to capacity due to domestic procurement and some export sales. Federal procurements by the Coast Guard and National Defence are vital to the health of the industry. Canadian shipowners continue to benefit from accelerated capital cost allowance when they build their ships in Canada, but this taxation benefit is lost if the shipowner receives Structured Financing Facility support. The shipbuilding industry structure is concentrated around a few dominant firms with activities distributed between 50 percent repair, 20 percent new-build and 30 percent refits. Trade conditions that cause challenges include protectionism and subsidies among other nations.

Defence: While several major defence companies are Canadian owned, the majority of the larger firms are subsidiaries of U.S. or European parents; and the major companies rely more on exports. The industry is comprised of several integrators and OEMs, with hundreds of smaller and specialized supplier firms, often Canadian-owned, providing products and services. Industry improvements for defence and security are due to the current global instability and the Canada First procurements. Growth opportunities include the Joint Strike Fighter (JSF) program, which is enabling more Canadian companies to participate in the supply chains of major defence contractors. Over 80 firms have won contracts from the $8 billion in JSF opportunities at this stage.

  • Labour market (not just highly qualified personnel)

  • Aerospace Industry: Employment 42,78110

  • No change

  • Space Industry: Employment 6,70011

  • Improving

  • Shipbuilding Industry: Employment 3,500

  • Improving

  • Defence Industry: Employment 20,000

  • Improving

  • Security Industry: No data

  • New indicator

  • Corporate taxation

  • Aerospace Industry: No data*

  • Space Industry: No data*

  • Shipbuilding Industry: No data*

  • Defence Industry: No data*

  • Security Industry: No data*

  • New indicator

  • Regulatory compliance burden

  • Aerospace Industry: No data*

  • Space Industry: No data*

  • Shipbuilding Industry: No data*

  • Defence Industry: No data*

  • Security Industry: No data*

  • New indicator

  • Impact of other government department programs

  • Aerospace Industry: No data*

  • Space Industry: No data*

  • Shipbuilding Industry: No data*

  • Defence Industry: No data*

  • Security Industry: No data*

  • New indicator

  • Industry structure

Aerospace Industry:

  • GDP: $10.7 billion

  • Improving

  • Exports: $12.5 billion

  • Improving

Space Industry:

  • GDP: $2.5 billion

  • Improving

  • Exports: $1.1 billion

  • Improving

Shipbuilding Industry:

  • Exports: $58 million

  • No change

  • Sales: $525 million

  • Improving

  • GDP: $255 million

  • Improving

Defence Industry:

  • Sales: $7 billion

  • Improving

  • Exports: $3 billion

  • Improving

Security Industry:

  • Sales: $1.2 billion

  • Improving

  • Trade conditions (including intellectual property)

  • Aerospace Industry: No data*

  • Space Industry: No data*

  • Shipbuilding Industry: No data*

  • Defence Industry: No data*

  • Security Industry: No data*

  • Not applicable

  • 10 Trade Data Online
  • 11 State of the Canadian Space Sector
Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Industrial and Regional Benefits Program, Structure Financing Facility

Programs, initiatives and services supporting competitiveness and sustainability in aerospace, defence and marine industries

Expected Result: Significant advances in competitiveness and sustainability in aerospace, defence and marine industries

Performance Indicators

Results

Trend

Explanation of Results

  • Publications by and consultations with the aerospace, defence and marine industries

  • IRBs

  • The Aerospace, Defence and Marine Branch met with over 100 companies in 2007–08.



  • Improving
  • SFF

  • Nil



  • Declining

Consultations with the marine industry association, SIMAC, declined in 2007–08 as SIMAC is no longer meeting.

 

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Automotive and Transportation Industries Branch

Communications, analysis and policy supporting competitiveness and sustainability in automotive and transportation industries

Expected Result: Suitable climate, initiatives and decisions supporting competitiveness and sustainability in automotive and transportation industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in automotive and transportation industries, such as:

  • Labour market (not just highly qualified personnel)

  • Employment: 152,607

  • Declining

As part of the fully integrated North American automotive industry, the Canadian auto industry is heavily dependent on the U.S. market. During 2007–08, weak U.S. demand, a surge in energy costs, and significant restructuring of U.S.-based automakers resulted in capacity reductions and decreases in production and employment. However, Canada fared better compared with the U.S. in these areas.

In the meantime, a stronger Canadian market led to increased imports to Canada.

  • Corporate taxation

  • No data*

  • New indicator

  • Regulatory compliance burden

  • No data*

  • New indicator

  • Impact of other government department programs

  • No data*

  • New indicator

  • Industry structure

  • GDP: $26.1 billion
  • Exports: $71.7 billion
  • Imports: $76.1 billion
  • Declining

  • Declining

  • Improving

  • Trade conditions (including intellectual property)

  • No data*

  • New indicator

 

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Life Sciences Branch

Communications, analysis and policy supporting competitiveness and sustainability in life sciences industries

Expected Result: Suitable climate, initiatives and decisions supporting competitiveness and sustainability in life sciences industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in life sciences industries, such as:

  • Labour market (not just highly qualified personnel)

  • Biotechnology: 13,433 employees

  • Improving

The labour market reflects a shift to newer products and biotechnology.

Globally and in Canada, the pharmaceutical industry has been restructuring and laying off personnel (1,700 in 2007). Layoffs have been minor compared with other global locations, in products facing generic or other competition. Continued growth in hiring by generics, in R&D and new products, especially biotechnology.

  • Pharmaceutical:  29,375 employees

  • Declining

  • Medical Devices: 26,000 employees

  • New indicator

  • Corporate taxation

  • Allow for the equal tax treatment of Limited Liability Corporations (LLC), a favoured vehicle for U.S. venture capital investors.12

  • New indicator

Risk capital, including foreign venture capital is particularly important to Canadian biotechnology companies.

Amended Treaty: Should positively affect the availability of U.S. venture capital funding flow into Canada.

  • Regulatory compliance burden

  • Six months for primary pharmaceuticals, 12 months for standard

  • Improving

Wait times resulted in a loss of profits, as firms cannot market in Canada without approval. Waiting times for chemical pharmaceutical Health Canada approvals are comparable internationally. Times for biotechnology pharmaceutical Health Canada approvals, on average, are comparable (with delays for certain complex products). Internationally comparable times mean a more attractive Canadian investment climate. Industry Canada's role is to advocate for industry and to support Health Canada's access to resources.

Canada's regulatory process for medical devices increasingly emphasizes harmonization and reciprocity. However, the industry is seeking further improvements in regulatory harmonization with highly regulated major markets. While Canadian medical device manufacturers can export products in accordance with the receiving country's laws, irrespective of domestic approval status, products that do have Canadian approval are not treated as favourably by regulators in some developing markets as products approved in the U.S. and Europe.

  • Impact of other government department programs

  • BDC's share of Canadian venture capital (VC) investments was $113.1 million or 5.5 percent of the total in 2007. BDC's 77 VC deals accounted for 17 percent  of the Canadian total in 2007. The largest portion of BDC's direct VC investments is in the life sciences, accounting for 32 percent ($172 million) of its portfolio.13

  • Improving

BDC is one of the key Canadian venture capital organizations capable of drawing upon both internal and external expertise in biotechnology.

Access to financing: BDC and NRCIRAP provide support for commercialization, while several federally-funded research programs and councils support health research in Canada, including CIHR, NCEs, NRC, and NSERC.

Canadian medical device industry associations are challenged in accessing support for international business activities under DFAIT's PEMD-Associations Program. The Export Development Corporation facilitates exporting by individual Canadian manufacturers by means of its financing, insurance and bonding services, as well as foreign market expertise.

  • Program for Export Market Development (PEMD) — Associations funding for the medical device industry:
    $148,690

  • Declining

  • Industry structure

  • Life Sciences: In 2007, Canada's VC investments totalled $2.1 billion. Biopharmaceutical and life sciences investments increased to $633 million (70 recipient firms) from $514 million in 200614.

  • Improving (by 23 percent)

Life Sciences: The Canadian life science industries, which are largely comprised of Canadian-owned SMEs, produce a wide range of products competing in global markets. The medical devices industry is characterized by technology convergence, shorter timelines for product development (on average, two to four years), lower regulatory barriers, lower developmental failure rates and quicker returns on investment than the biopharma/pharmaceutical industry.

Biotechnology: The Canadian biotech industry is mainly Canadian owned. Significant shortages of early stage financing sources. Two thirds of firms have less than two years cash on hand at current burn rates. Time to develop products in the biopharma sector is long (more than 12 years) and costly (at over $559 million per product). Consequently, biopharma firms undergo long periods without discernible profits. Finding sources of financing remains difficult for many firms due to the high costs and lengthy development times associated with development.

Pharmaceuticals: Profitability reflects a trend to more generics as major brands come off patent and a slowdown in the numbers of approved new patented drugs. Facing patent expiries for blockbuster medicines as well as competition from generics, the pharma industry is undergoing a period of lower profitability (yet still positive and reasonable), cost-containment and restructuring. There is an increasing threat to manufacturing from low cost developing countries, especially India and China.

Medical Devices: The Canadian medical device industry, largely comprised of Canadian-owned SMEs, produces a wide range of products competing in global markets. The industry is characterized by technology convergence, shorter timelines for product development (on average, two to four years), lower regulatory barriers, lower developmental failure rates and quicker returns on investment than the biopharma/ pharmaceutical industry.

  • Biotechnology:  530 firms in 2005 with 524 products in development by March 2008; 87 public biopharma firms with a market capitalization of $2 billion; 75 percent of firms are Canadian-owned; 75 percent of firms are small, 15 percent medium-sized and 10 percent large companies. 

  • No change

  • Profitability: Revenues in 2005 of $4.2 billion; for the 87 public biopharma companies in 2007, eight have positive net pre-tax profit margins. Cash reserves: Financing for product development remains a problem, with 40 percent of biopharma firms having less than one year of cash for operations.

  • New indicator

  • Pharmaceutical: 262 firms in 2006 with R&D and manufacturing activities; MNEs account for
    83 percent of innovative Canadian pharma sales with three firms accounting for 26.5 percent of sales, but of different products for different illnesses. Firms producing generic drugs account for 17 percent of sales and 43 percent of market volume with two firms accounting for 8 percent of sales.

  • Improving sales

  • Profitability: Canadian pharma industry sales revenues (i.e. shipments) were $9.6 billion in 2006 with employment at 29,375. Cost of development of innovative medical treatments is high. The industry spent $1.3 billion on R&D in 2006.

  • Declining profitability

  • The industry has laid off approximately
    1,700 employees in the past year, many in the sales area, but still some in R&D. Average profit margin was 9.4 percent for the year from Quarter 4 2006 to Quarter 3 2007.

  • No data for employment 2007

  • Medical Devices: 1,000 firms, 90 percent Canadian owned, mostly SMEs.  Generally low, but positive, profit margins in this industry.

  • New indicator

  • Trade conditions (including intellectual property)

  • Biotech: Exports: $0.8 billion; Imports: $0.47 billion

  • Improving

The biotechnology industry produces innovative medicines for Canadians and for global markets.

Canada has a negative trade balance for pharmaceutical products. Since 2002, the gap has remained relatively constant (approximately $5 billion).

  • Canada has a negative trade balance concerning medical devices. Canadian medical device industry revenues are significantly dependent on exports, due to the relatively small size of the domestic market. The U.S. is the primary foreign market, accounting for about three quarters of medical device exports. Bilateral free trade agreements, such as that with EFTA, may serve to encourage increased export market diversification. Emerging markets, such as China, are of increasing interest to the industry.

  • Pharmaceutical:  Exports: $6.3 billion; Imports $11.1 billion

  • Improving

  • Medical Devices: Exports: $2.4 billion; Imports $4.5 billion

  • Declining exports

  • Improving imports

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Resource Processing Industries Branch

Communications, analysis and policy supporting competitiveness and sustainability in resource processing industries

Expected Result: Suitable climate, initiatives and decisions supporting competitiveness and sustainability in resource processing industries

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as:

Energy: An estimated labour shortage of 100,000 is anticipated by 2015 across all sectors due to high growth in the oil and gas sector, particularly in the oil sands, where production has now surpassed conventional production in western Canada.

The electric power sector is facing pending labour shortage as 30 percent of workforce set to retire within seven years. Significant skills required due to changing regulations, increase of renewables.

Within both the electric power sector and the oil and gas sector, RPIB plays primarily a monitoring role in labour market issues. RPIB participates at the Electricity sector council meetings and Petroleum Human Resources sector council, which address labour issues.

The electric power sector and Oil and Gas (O&G) industry will be impacted by environmental regulations. Clarity in regulations will be required to assist the industry to make informed decisions. Industry Canada monitoring of consultations and input helps to ensure that an industrial development viewpoint is recognized within environmental regulations.

Within the nuclear industry, numbers have remained relatively stable. However, the Gen IV International Program has grown to include both China and Russia, as well as increased bilateral agreements, reflecting growth on this front. Provincial initiatives in New Brunswick and Ontario to build new nuclear capacity can be seen as a sign of industry growth.

Within the nuclear industry, RPIB helps to identify opportunities for Canadian capabilities within the supply chain, and in 2007, RPIB compiled a comprehensive industry capabilities guide.

RPIB provides an industrial development perspective into policy for the O&G and nuclear sectors through inputs into instruments such as OGDs, MCs, nuclear cooperation agreements. RPIB promotes the capabilities of Canadian O&G equipment suppliers and participates in benefit plan negotiations for major O&G projects in the Atlantic offshore and MacKenzie Gas project.

Plastics: A number of factors have aligned to place pressure on the plastics industry. High energy and feedstock costs, combined with a limited ability to pass on costs, have a major impact on profitability.

The slowdown in demand in the United States has affected exports, and the high value of the Canadian dollar means that those exports are less profitable than in the past.

Countries like China increasingly pose threats on two fronts. First, Chinese production of commodities is displacing Canadian exports from traditional markets, especially in the U.S. Second, Chinese technology is becoming more sophisticated, rapidly eroding our historical technology advantage in specialty products.

Almost all manufacturing firms in the sector in Canada are under pressure. Some firms have succumbed to these combined forces and gone out of business. Some segments have been particularly hard hit, such as those supplying the automotive and construction markets.

Environmental activism is in a heightened state, ranging from initiatives to reduce the consumption of plastic bags, to banning the use of certain plastics in baby bottles. Many of these concerns are not well-founded in science, but nonetheless have the potential for curbing industry growth. RPIB has a decreased ability to help the industry with missions and trade shows and this has had an effect on SMEs.

Steel: While employment levels are declining, many employees are near retirement age and the industry is facing a recruitment challenge. Changing demographics means that the pool of potential employees is shrinking, leading to concerns about competition for skilled labour and rising employment costs. Competition from developing countries such as China, India and Brazil is a concern, especially due to their lower cost structures, lower environmental standards and lack of climate change commitments. This steel-specific concern has augmented the movement of steel-using industries from North America to developing countries, particularly China. Such moves mean a loss of customers and demand and have negative consequences for the steel industry's long-term future in Canada and North America.

Refined Petroleum Products: In 2007, Canadian gasoline sales increased by 3.9 percent to 42.54 billion litres, a record high. The rate of growth was the highest since 1980. In addition, Canadian diesel sales increased by 4.8 percent to 27.65 billion litres, a record high. However, during the first quarter of 2008, North American demand has decreased and refining and marketing margins have declined by more than 4 cents per litre compared to the first quarter of 2007.

With three proposed greenfield refineries and several proposed brownfield expansions, Canada remains a competitive location for petroleum refinery investments.

With two of the proposed greenfield refineries expected to mainly serve the export market, Canadian exports, particularly to the U.S., are expected to increase.

Regulations related to the Clean Air Agenda, Renewable Fuels Standard, and Low Carbon Fuel Standards are expected to add to the cost of doing business in Canada. These regulations have the potential to negatively impact industry competitiveness, particularly versus the U.S.

Current delays in the federal environmental assessment process have the potential to negatively impact future investment decisions.

Forest: Challenges impacting the industry: appreciation of the Canadian dollar, high fibre, energy, labour, and transportation costs, depressed demand and prices for newsprint and wood products, mountain pine beetle infestation in western Canada, low-cost overseas competition, and depressed housing market in the U.S. due to sub-prime lending issues.

As a result, the industry is undergoing structural changes — production curtailment, mill closures, mergers and acquisitions activities (e.g. AbitibiBowater), consolidation that impacts communities and workers. There were 86 mill closures and 7,390 layoffs in 2006. Exports decreased over the past year and 2008 is expected to be a difficult year for the forest industry.

The Clean Air Agenda is expected to add to the cost of doing business in Canada.

  • Labour market (not just highly qualified personnel)

  • Energy Industry:15

  • Oil and gas equipment and services: 167,637 (2005)16

  • Improving

  • Electricity:
    57,657*

  • No change

  • Nuclear:
    21,000 direct, 11,000 indirect17

  • Declining

  • Plastics Industry:
    116,00018

  • No change

  • Steel Industry:
    19,700

  • Declining

  • Refined Petroleum Products Industry:
    15,20019

  • No change

  • Forest Industry:
    293,00020

  • Declining

  • Corporate taxation

  • Energy Industry:

  • Oil and gas equipment and services: No data*

  • Electricity: No data*

  • Nuclear: No data*

  • Plastics Industry: No data*

  • Steel Industry: No data*

  • Refined Petroleum Products Industry: No data*

  • Forest Industry: No data*

  • New indicator

  • Regulatory compliance burden

  • Energy Industry:

  • Oil and gas equipment and services: No data*

  • Electricity: No data*

  • Nuclear: No data*

  • Plastics Industry: No data*

  • Steel Industry: No data*

  • Refined Petroleum Products Industry: No data*

  • Forest Industry: No data*

  • New indicator

  • Impact of other government department programs

  • Energy Industry:

  • Oil and gas equipment and services: No data*

  • Electricity: No data*

  • Nuclear: No data*

  • Plastics Industry: No data*

  • Steel Industry: No data*

  • Refined Petroleum Products Industry: No data*

  • Forest Industry: No data*

  • New indicator

  • Industry structure

  • Energy Industry:

  • Oil and gas equipment and services: No data*

  • Electricity: No data*

  • Nuclear: No data*

  • Plastics Industry: No data*

  • Steel Industry: No data*

  • Refined Petroleum Products Industry: No data*

  • Forest Industry: No data

  • New indicator

  • Energy Industry:

  • Oil and gas equipment and services: No data*

  • Electricity: No data*

  • Nuclear: No data*

  • Plastics Industry: No data*

  • Steel Industry: No data*

  • Refined Petroleum Products Industry: No data*

  • Forest Industry: No data*

  • New indicator

*Estimate based on 2004 Canadian Electricity Sector Study Employee Survey results — Technical/Production staff.

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Service Industries and Consumer Products Branch

Communications, analysis and policy supporting competitiveness and sustainability in service industries and consumer products

Expected Result: Suitable climate, initiatives and decisions supporting competitiveness and sustainability in service industries and consumer products

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as:

Tourism:

  • The U.S. market continues to decline. Arrivals are at their lowest level since 1972. Industry Canada has completed an analysis of factors contributing to the decline. Indications are that the decline is structural rather than the result of current market conditions.

  • Tourism labour markets are tight at all skill levels but conditions vary based on regional economics.

  • The nature of the industry does not lend itself to accelerating productivity except in back-office functions. The hallmark of a good tourism product is personal service and attention to detail, neither of which is conducive to productivity.

Tourism flows from the U.S. market are on a decline going back as far as the late 1990s but the trend has been accelerating since the Western Hemisphere Travel Initiative, the high dollar and high fuel costs.

Apparel: A well-established sector comprised of many products, the Canadian apparel industry is facing flat domestic sales and competition from low-cost countries. Despite these facts, the capital and repair expenditures are strong as firms attempt to automate their production facilities and shift from integrated manufacturing facilities to a system of global disintegration of production. Canadian companies are creating value-added through design and are actively promoting their products in Canada and worldwide, including the U.S., instead of competing on a low-cost basis.

Services: Wholesale and administrative services have increased by 5.63 percent and 5.29 percent respectively (2003–07).

Administration and support services and retail have increased by 4.6 percent and 3.1 percent respectively (2003–07).

Transport and government services exports have increased by 5 percent.

Textiles: The Canadian textile industry continues to face a number of challenges including currency appreciation, a liberalized trade environment and increased competition from abroad. Despite this challenging global environment, the industry has been shifting its production from low margin commodities to high margin specialized products.

Exports: declining -9.5 percent; GDP: declining -5.8 percent; Employment:
no change at +1.8 percent.

  • Labour market (not just highly qualified personnel)

  • Tourism Industry: No data*

  • New indicator

  • Apparel Industry:
    2007: 56,200
    2006: 65,000

  • Declining

  • Services Industry:
    11.2 million

  • Improving

  • Textiles Industry:
    2007: 32,700
    2006: 32,100

  • Improving

  • Corporate taxation

  • Tourism Industry: No data*

  • Apparel Industry: No data*

  • Services Industry: No data*

  • Textiles Industry: No data*

  • New indicator


  • New indicator


  • New indicator

  • New indicator

  • Regulatory compliance burden

  • Tourism Industry: No data*

  • Apparel Industry: No data*

  • Services Industry: No data*

  • Textiles Industry: No data*

  • New indicator


  • New indicator


  • New indicator

  • New indicator

  • Impact of other government department programs

  • Tourism Industry: No data*

  • Apparel Industry: No data*

  • Services Industry: No data*

  • Textiles Industry: No data*

  • New indicator


  • New indicator


  • New indicator

  • New indicator

  • Industry structure

  • Tourism Industry:

  • Overall demand

  • Domestic demand

  • International demand

  • Air travel by residents

  • Air travel by non-residents

  • Apparel Industry:
    GDP: 2007, $2.1 billion; 2006, $2 billion






  • Improving


  • Improving

  • Declining


  • Improving

  • Declining



  • Improving
  • Services Industry: GDP $347 billion

  • Improving

  • Textiles Industry: GDP: 2007, $1.8 billion; 2006, $1.9 billion

  • Declining

  • Trade conditions (including intellectual property)

  • Tourism Industry: No data*

  • Apparel Industry: Exports: 2007, $1.3 billion; 2006, $1.7 billion

  • New indicator


  • Declining
  • Services Industry: Exports $67.4 billion

  • Improving

  • Textiles Industry: Exports: 2007, $2.2 billion 2006, $2.4 billion

  • Declining

 

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Language Industry Program and Canadian Apparel and Textile Industries Program

Programs, initiatives and services supporting competitiveness and sustainability in service industries and consumer products

Expected Result: Significant advances in competitiveness and sustainability in service industries and consumer products

Performance Indicators

Results

Trend

Explanation of Results

  • Publications by and consultations with the language industry and the Canadian apparel and textile industries

  • The Language Industry Program sunsetted March 31, 2008; therefore, no consultations were needed.

  • CANTex did not have any publications or consultations last year and they are in the final stretch of the program they sunset in 2010.

  • Not applicable

  • The Language Industry Program sunsetted March 31, 2008; therefore, no consultations were needed.

  • CANTex did not have any publications or consultations last year and they are in the final stretch of the program they sunset in 2010.

 

Program Activity: Industry Sector - Economic Development

Sub-Program Activity: Policy and Sector Services Branch

Communications, analysis and policy supporting competitiveness and sustainability in policy and sector services

Expected Result: Suitable climate, initiatives and decisions supporting competitiveness and sustainability in policy and sector services

Performance Indicators

Results

Trend

Explanation of Results

  • Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as:

  • Labour market (not just highly qualified personnel)

  • Skilled workers in workforce 58.9 percent (+2.8 percent change versus previous year)

  • Improving

  • Corporate taxation

  • No data*

  • New indicator

  • Regulatory compliance burden

  • No data*

  • New indicator

  • Impact of other government department programs

  • No data*

  • New indicator

  • Industry structure

  • No data*

  • New indicator

  • Trade conditions (including intellectual property)

  • Canadian exporters as a share of total firms -4.3 percent (-6.7 percent change versus previous year)

  • Declining

* Results for this indicator are not provided, as the indicator chosen is too broad in scope and is not specific enough to the respective industrial sector. This indicator is currently under review.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Economic Development

Program Activity: Spectrum, Information Technologies and Telecommunications Sector - Economic Development

Sub-Program Activity: Information and Communications Technologies Branch

Improvement in the competitiveness and fostering of growth of the Canadian ICT industry

Expected Result: Broad understanding of developments that affect sector growth in order to identify issues, gaps and opportunities for the ICT sector, to support directions for business development and policy activities

Performance Indicators

Results

Trend

  • Assessments/studies of ICT sector and sub-sector growth

  • A suite of six ICT statistical reports:

  • ICT Statistical Overview

  • Quarterly Monitor of the Canadian ICT Sector

  • Canadian ICT Sector Profile

  • Canadian ICT Sector Regional Report

  • ICT Trade Report

  • ICT Sector Intelligence Industry Profile (IIP)

  • Wireline Communications Industry Profile

  • One report and deck on the telecom wireless industry

  • One study and deck on WiMax Market Opportunities, a key wireless sub-sector

  • Vertical market growth profiles: Three reports on eHealth, eSecurity and eGaming in Canada

  • Two reports on eHealth and three reports on eGaming

  • Canadian Capabilities List (1,500+ vertical market firms)

  • 120+ Firm Level Profiles

Global ICT Market Opportunity market reports: Three reports on Canada's Telecommunications Equipment Trade:

  • Facts and Speculation

  • Canadian Technology Capacity Analysis

  • Telecommunications Equipment Value Chain Study

  • Not applicable

Expected Result: Informed advocacy for ICT stakeholder issues to influence government decisions on issues affecting the ICT industry

Performance Indicators

Results

Trend

  • Number of issues addressed in policy forums and meetings with industry stakeholders

  • 13 core issues, approximately 100 meetings, forums, a wide cross-section of sector reports (e.g. Briefs on HQP, innovation, SR&ED, taxes, procurement, trade policy, S&T, IT transfer, commercialization, etc.).

  • No change

Expected Result: Increased business opportunities for the Canadian ICT sector

Performance Indicators

Results

Trend

  • Number of corporate calls on investment targets
  • 25 investment/corporate calls with companies in Canada
  • No change
  • Client satisfaction rates at business development events

  • 91 percent client satisfaction — Client survey results based on 64 surveys conducted around  three main events (CABA 2007, PT EXPO/COMM 2007, Mobile World Congress 2008)

  • Improving

  • Number of sales leads for Canadian companies

  • Over 718 sales leads generated (from CABA 2007, PT EXPO/COMM 2007, Mobile World Congress 2008)

  • Improving

 

Program Activity: Spectrum, Information Technologies and Telecommunications Sector - Economic Development

Sub-Program Activity: Information Highway Applications Branch

Acceleration of the participation of Canadians and their communities in the digital economy by fostering community networks and improving both access to, and use of, ICTs for lifelong learning and economic development

Expected Result: Assisting Canadian individuals and communities in overcoming barriers to access and use of ICTs

Performance Indicators

Results

Trend

  • Number of Canadians and communities accessing and using ICTs via broadband

  • 82 percent of home Internet users use a high speed connection. (Statistics Canada data for 2005 — latest available)

  • 93 percent of Canadian households are able to subscribe to broadband service (CRTC data for 2006 — latest available)

  • Not applicable (new data source)

  • Level of Internet use by Francophones

  • 83 percent — actual number represents the percentage of Internet users who reported obtaining online information in their language of choice given that their language of preference is French. (Statistics Canada data for 2005 — latest available)

  • (Note: Due to program closure, the Department will no longer report on this indicator.)

  • Not applicable

Sub-Sub-Program Activity: Francommunautés virtuelles

Aims to promote the active participation of Canada's French-speaking communities in ICTs to stimulate connectivity, access to the Internet, and the development of content and new media in French

Expected Result: Improved access to French-language web applications, content and services on the part of Canada's Francophone and Acadian populations

Performance Indicators

Results

Trend

  • Level of Internet use among Francophone population

  • 83 percent — actual number represents the percentage of Internet users who reported obtaining online information in their language of choice given that their language of preference is French. (Statistics Canada data for 2005 — latest available)

  • Note: Due to program closure, the Department will no longer report on this indicator.)

  • Not applicable

Sub-Sub-Program Activity: National Satellite Initiative (NSI)

Ensures Canadian communities and businesses have access to reliable, modern ICT infrastructure by bringing high-capacity Internet to communities in the Far North and Mid-North, and in isolated or remote areas of Canada, where satellite is the only reasonable means of connecting public institutions, residents and businesses

Expected Result: Access by Canadian communities and businesses to modern ICT infrastructure by bringing high-capacity Internet to communities in the Far North and Mid-North, and in isolated or remote areas of Canada, via satellite

Performance Indicators

Results

Trend

  • Number of communities able to access high-capacity Internet as a result of the National Satellite Initiative
  • Industry Canada administered Round 1 of the National Satellite Initiative (NSI) and helped bring high-capacity Internet to 52 remote and rural communities, including First Nations reserves. In June 2007, NSI was transferred to Infrastructure Canada.

  • Not applicable

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