Tag Archives: Chief Science Advisor

The Hedy Lamarr of international research: Canada’s Third assessment of The State of Science and Technology and Industrial Research and Development in Canada (1 of 2)

Before launching into the assessment, a brief explanation of my theme: Hedy Lamarr was considered to be one of the great beauties of her day,

“Ziegfeld Girl” Hedy Lamarr 1941 MGM *M.V.
Titles: Ziegfeld Girl
People: Hedy Lamarr
Image courtesy mptvimages.com [downloaded from https://www.imdb.com/title/tt0034415/mediaviewer/rm1566611456]

Aside from starring in Hollywood movies and, before that, movies in Europe, she was also an inventor and not just any inventor (from a Dec. 4, 2017 article by Laura Barnett for The Guardian), Note: Links have been removed,

Let’s take a moment to reflect on the mercurial brilliance of Hedy Lamarr. Not only did the Vienna-born actor flee a loveless marriage to a Nazi arms dealer to secure a seven-year, $3,000-a-week contract with MGM, and become (probably) the first Hollywood star to simulate a female orgasm on screen – she also took time out to invent a device that would eventually revolutionise mobile communications.

As described in unprecedented detail by the American journalist and historian Richard Rhodes in his new book, Hedy’s Folly, Lamarr and her business partner, the composer George Antheil, were awarded a patent in 1942 for a “secret communication system”. It was meant for radio-guided torpedoes, and the pair gave to the US Navy. It languished in their files for decades before eventually becoming a constituent part of GPS, Wi-Fi and Bluetooth technology.

(The article goes on to mention other celebrities [Marlon Brando, Barbara Cartland, Mark Twain, etc] and their inventions.)

Lamarr’s work as an inventor was largely overlooked until the 1990’s when the technology community turned her into a ‘cultish’ favourite and from there her reputation grew and acknowledgement increased culminating in Rhodes’ book and the documentary by Alexandra Dean, ‘Bombshell: The Hedy Lamarr Story (to be broadcast as part of PBS’s American Masters series on May 18, 2018).

Canada as Hedy Lamarr

There are some parallels to be drawn between Canada’s S&T and R&D (science and technology; research and development) and Ms. Lamarr. Chief amongst them, we’re not always appreciated for our brains. Not even by people who are supposed to know better such as the experts on the panel for the ‘Third assessment of The State of Science and Technology and Industrial Research and Development in Canada’ (proper title: Competing in a Global Innovation Economy: The Current State of R&D in Canada) from the Expert Panel on the State of Science and Technology and Industrial Research and Development in Canada.

A little history

Before exploring the comparison to Hedy Lamarr further, here’s a bit more about the history of this latest assessment from the Council of Canadian Academies (CCA), from the report released April 10, 2018,

This assessment of Canada’s performance indicators in science, technology, research, and innovation comes at an opportune time. The Government of Canada has expressed a renewed commitment in several tangible ways to this broad domain of activity including its Innovation and Skills Plan, the announcement of five superclusters, its appointment of a new Chief Science Advisor, and its request for the Fundamental Science Review. More specifically, the 2018 Federal Budget demonstrated the government’s strong commitment to research and innovation with historic investments in science.

The CCA has a decade-long history of conducting evidence-based assessments about Canada’s research and development activities, producing seven assessments of relevance:

The State of Science and Technology in Canada (2006) [emphasis mine]
•Innovation and Business Strategy: Why Canada Falls Short (2009)
•Catalyzing Canada’s Digital Economy (2010)
•Informing Research Choices: Indicators and Judgment (2012)
The State of Science and Technology in Canada (2012) [emphasis mine]
The State of Industrial R&D in Canada (2013) [emphasis mine]
•Paradox Lost: Explaining Canada’s Research Strength and Innovation Weakness (2013)

Using similar methods and metrics to those in The State of Science and Technology in Canada (2012) and The State of Industrial R&D in Canada (2013), this assessment tells a similar and familiar story: Canada has much to be proud of, with world-class researchers in many domains of knowledge, but the rest of the world is not standing still. Our peers are also producing high quality results, and many countries are making significant commitments to supporting research and development that will position them to better leverage their strengths to compete globally. Canada will need to take notice as it determines how best to take action. This assessment provides valuable material for that conversation to occur, whether it takes place in the lab or the legislature, the bench or the boardroom. We also hope it will be used to inform public discussion. [p. ix Print, p. 11 PDF]

This latest assessment succeeds the general 2006 and 2012 reports, which were mostly focused on academic research, and combines it with an assessment of industrial research, which was previously separate. Also, this third assessment’s title (Competing in a Global Innovation Economy: The Current State of R&D in Canada) makes what was previously quietly declared in the text, explicit from the cover onwards. It’s all about competition, despite noises such as the 2017 Naylor report (Review of fundamental research) about the importance of fundamental research.

One other quick comment, I did wonder in my July 1, 2016 posting (featuring the announcement of the third assessment) how combining two assessments would impact the size of the expert panel and the size of the final report,

Given the size of the 2012 assessment of science and technology at 232 pp. (PDF) and the 2013 assessment of industrial research and development at 220 pp. (PDF) with two expert panels, the imagination boggles at the potential size of the 2016 expert panel and of the 2016 assessment combining the two areas.

I got my answer with regard to the panel as noted in my Oct. 20, 2016 update (which featured a list of the members),

A few observations, given the size of the task, this panel is lean. As well, there are three women in a group of 13 (less than 25% representation) in 2016? It’s Ontario and Québec-dominant; only BC and Alberta rate a representative on the panel. I hope they will find ways to better balance this panel and communicate that ‘balanced story’ to the rest of us. On the plus side, the panel has representatives from the humanities, arts, and industry in addition to the expected representatives from the sciences.

The imbalance I noted then was addressed, somewhat, with the selection of the reviewers (from the report released April 10, 2018),

The CCA wishes to thank the following individuals for their review of this report:

Ronald Burnett, C.M., O.B.C., RCA, Chevalier de l’ordre des arts et des
lettres, President and Vice-Chancellor, Emily Carr University of Art and Design
(Vancouver, BC)

Michelle N. Chretien, Director, Centre for Advanced Manufacturing and Design
Technologies, Sheridan College; Former Program and Business Development
Manager, Electronic Materials, Xerox Research Centre of Canada (Brampton,
ON)

Lisa Crossley, CEO, Reliq Health Technologies, Inc. (Ancaster, ON)
Natalie Dakers, Founding President and CEO, Accel-Rx Health Sciences
Accelerator (Vancouver, BC)

Fred Gault, Professorial Fellow, United Nations University-MERIT (Maastricht,
Netherlands)

Patrick D. Germain, Principal Engineering Specialist, Advanced Aerodynamics,
Bombardier Aerospace (Montréal, QC)

Robert Brian Haynes, O.C., FRSC, FCAHS, Professor Emeritus, DeGroote
School of Medicine, McMaster University (Hamilton, ON)

Susan Holt, Chief, Innovation and Business Relationships, Government of
New Brunswick (Fredericton, NB)

Pierre A. Mohnen, Professor, United Nations University-MERIT and Maastricht
University (Maastricht, Netherlands)

Peter J. M. Nicholson, C.M., Retired; Former and Founding President and
CEO, Council of Canadian Academies (Annapolis Royal, NS)

Raymond G. Siemens, Distinguished Professor, English and Computer Science
and Former Canada Research Chair in Humanities Computing, University of
Victoria (Victoria, BC) [pp. xii- xiv Print; pp. 15-16 PDF]

The proportion of women to men as reviewers jumped up to about 36% (4 of 11 reviewers) and there are two reviewers from the Maritime provinces. As usual, reviewers external to Canada were from Europe. Although this time, they came from Dutch institutions rather than UK or German institutions. Interestingly and unusually, there was no one from a US institution. When will they start using reviewers from other parts of the world?

As for the report itself, it is 244 pp. (PDF). (For the really curious, I have a  December 15, 2016 post featuring my comments on the preliminary data for the third assessment.)

To sum up, they had a lean expert panel tasked with bringing together two inquiries and two reports. I imagine that was daunting. Good on them for finding a way to make it manageable.

Bibliometrics, patents, and a survey

I wish more attention had been paid to some of the issues around open science, open access, and open data, which are changing how science is being conducted. (I have more about this from an April 5, 2018 article by James Somers for The Atlantic but more about that later.) If I understand rightly, they may not have been possible due to the nature of the questions posed by the government when requested the assessment.

As was done for the second assessment, there is an acknowledgement that the standard measures/metrics (bibliometrics [no. of papers published, which journals published them; number of times papers were cited] and technometrics [no. of patent applications, etc.] of scientific accomplishment and progress are not the best and new approaches need to be developed and adopted (from the report released April 10, 2018),

It is also worth noting that the Panel itself recognized the limits that come from using traditional historic metrics. Additional approaches will be needed the next time this assessment is done. [p. ix Print; p. 11 PDF]

For the second assessment and as a means of addressing some of the problems with metrics, the panel decided to take a survey which the panel for the third assessment has also done (from the report released April 10, 2018),

The Panel relied on evidence from multiple sources to address its charge, including a literature review and data extracted from statistical agencies and organizations such as Statistics Canada and the OECD. For international comparisons, the Panel focused on OECD countries along with developing countries that are among the top 20 producers of peer-reviewed research publications (e.g., China, India, Brazil, Iran, Turkey). In addition to the literature review, two primary research approaches informed the Panel’s assessment:
•a comprehensive bibliometric and technometric analysis of Canadian research publications and patents; and,
•a survey of top-cited researchers around the world.

Despite best efforts to collect and analyze up-to-date information, one of the Panel’s findings is that data limitations continue to constrain the assessment of R&D activity and excellence in Canada. This is particularly the case with industrial R&D and in the social sciences, arts, and humanities. Data on industrial R&D activity continue to suffer from time lags for some measures, such as internationally comparable data on R&D intensity by sector and industry. These data also rely on industrial categories (i.e., NAICS and ISIC codes) that can obscure important trends, particularly in the services sector, though Statistics Canada’s recent revisions to how this data is reported have improved this situation. There is also a lack of internationally comparable metrics relating to R&D outcomes and impacts, aside from those based on patents.

For the social sciences, arts, and humanities, metrics based on journal articles and other indexed publications provide an incomplete and uneven picture of research contributions. The expansion of bibliometric databases and methodological improvements such as greater use of web-based metrics, including paper views/downloads and social media references, will support ongoing, incremental improvements in the availability and accuracy of data. However, future assessments of R&D in Canada may benefit from more substantive integration of expert review, capable of factoring in different types of research outputs (e.g., non-indexed books) and impacts (e.g., contributions to communities or impacts on public policy). The Panel has no doubt that contributions from the humanities, arts, and social sciences are of equal importance to national prosperity. It is vital that such contributions are better measured and assessed. [p. xvii Print; p. 19 PDF]

My reading: there’s a problem and we’re not going to try and fix it this time. Good luck to those who come after us. As for this line: “The Panel has no doubt that contributions from the humanities, arts, and social sciences are of equal importance to national prosperity.” Did no one explain that when you use ‘no doubt’, you are introducing doubt? It’s a cousin to ‘don’t take this the wrong way’ and ‘I don’t mean to be rude but …’ .

Good news

This is somewhat encouraging (from the report released April 10, 2018),

Canada’s international reputation for its capacity to participate in cutting-edge R&D is strong, with 60% of top-cited researchers surveyed internationally indicating that Canada hosts world-leading infrastructure or programs in their fields. This share increased by four percentage points between 2012 and 2017. Canada continues to benefit from a highly educated population and deep pools of research skills and talent. Its population has the highest level of educational attainment in the OECD in the proportion of the population with
a post-secondary education. However, among younger cohorts (aged 25 to 34), Canada has fallen behind Japan and South Korea. The number of researchers per capita in Canada is on a par with that of other developed countries, andincreased modestly between 2004 and 2012. Canada’s output of PhD graduates has also grown in recent years, though it remains low in per capita terms relative to many OECD countries. [pp. xvii-xviii; pp. 19-20]

Don’t let your head get too big

Most of the report observes that our international standing is slipping in various ways such as this (from the report released April 10, 2018),

In contrast, the number of R&D personnel employed in Canadian businesses
dropped by 20% between 2008 and 2013. This is likely related to sustained and
ongoing decline in business R&D investment across the country. R&D as a share
of gross domestic product (GDP) has steadily declined in Canada since 2001,
and now stands well below the OECD average (Figure 1). As one of few OECD
countries with virtually no growth in total national R&D expenditures between
2006 and 2015, Canada would now need to more than double expenditures to
achieve an R&D intensity comparable to that of leading countries.

Low and declining business R&D expenditures are the dominant driver of this
trend; however, R&D spending in all sectors is implicated. Government R&D
expenditures declined, in real terms, over the same period. Expenditures in the
higher education sector (an indicator on which Canada has traditionally ranked
highly) are also increasing more slowly than the OECD average. Significant
erosion of Canada’s international competitiveness and capacity to participate
in R&D and innovation is likely to occur if this decline and underinvestment
continue.

Between 2009 and 2014, Canada produced 3.8% of the world’s research
publications, ranking ninth in the world. This is down from seventh place for
the 2003–2008 period. India and Italy have overtaken Canada although the
difference between Italy and Canada is small. Publication output in Canada grew
by 26% between 2003 and 2014, a growth rate greater than many developed
countries (including United States, France, Germany, United Kingdom, and
Japan), but below the world average, which reflects the rapid growth in China
and other emerging economies. Research output from the federal government,
particularly the National Research Council Canada, dropped significantly
between 2009 and 2014.(emphasis mine)  [p. xviii Print; p. 20 PDF]

For anyone unfamiliar with Canadian politics,  2009 – 2014 were years during which Stephen Harper’s Conservatives formed the government. Justin Trudeau’s Liberals were elected to form the government in late 2015.

During Harper’s years in government, the Conservatives were very interested in changing how the National Research Council of Canada operated and, if memory serves, the focus was on innovation over research. Consequently, the drop in their research output is predictable.

Given my interest in nanotechnology and other emerging technologies, this popped out (from the report released April 10, 2018),

When it comes to research on most enabling and strategic technologies, however, Canada lags other countries. Bibliometric evidence suggests that, with the exception of selected subfields in Information and Communication Technologies (ICT) such as Medical Informatics and Personalized Medicine, Canada accounts for a relatively small share of the world’s research output for promising areas of technology development. This is particularly true for Biotechnology, Nanotechnology, and Materials science [emphasis mine]. Canada’s research impact, as reflected by citations, is also modest in these areas. Aside from Biotechnology, none of the other subfields in Enabling and Strategic Technologies has an ARC rank among the top five countries. Optoelectronics and photonics is the next highest ranked at 7th place, followed by Materials, and Nanoscience and Nanotechnology, both of which have a rank of 9th. Even in areas where Canadian researchers and institutions played a seminal role in early research (and retain a substantial research capacity), such as Artificial Intelligence and Regenerative Medicine, Canada has lost ground to other countries.

Arguably, our early efforts in artificial intelligence wouldn’t have garnered us much in the way of ranking and yet we managed some cutting edge work such as machine learning. I’m not suggesting the expert panel should have or could have found some way to measure these kinds of efforts but I’m wondering if there could have been some acknowledgement in the text of the report. I’m thinking a couple of sentences in a paragraph about the confounding nature of scientific research where areas that are ignored for years and even decades then become important (e.g., machine learning) but are not measured as part of scientific progress until after they are universally recognized.

Still, point taken about our diminishing returns in ’emerging’ technologies and sciences (from the report released April 10, 2018),

The impression that emerges from these data is sobering. With the exception of selected ICT subfields, such as Medical Informatics, bibliometric evidence does not suggest that Canada excels internationally in most of these research areas. In areas such as Nanotechnology and Materials science, Canada lags behind other countries in levels of research output and impact, and other countries are outpacing Canada’s publication growth in these areas — leading to declining shares of world publications. Even in research areas such as AI, where Canadian researchers and institutions played a foundational role, Canadian R&D activity is not keeping pace with that of other countries and some researchers trained in Canada have relocated to other countries (Section 4.4.1). There are isolated exceptions to these trends, but the aggregate data reviewed by this Panel suggest that Canada is not currently a world leader in research on most emerging technologies.

The Hedy Lamarr treatment

We have ‘good looks’ (arts and humanities) but not the kind of brains (physical sciences and engineering) that people admire (from the report released April 10, 2018),

Canada, relative to the world, specializes in subjects generally referred to as the
humanities and social sciences (plus health and the environment), and does
not specialize as much as others in areas traditionally referred to as the physical
sciences and engineering. Specifically, Canada has comparatively high levels
of research output in Psychology and Cognitive Sciences, Public Health and
Health Services, Philosophy and Theology, Earth and Environmental Sciences,
and Visual and Performing Arts. [emphases mine] It accounts for more than 5% of world researchin these fields. Conversely, Canada has lower research output than expected
in Chemistry, Physics and Astronomy, Enabling and Strategic Technologies,
Engineering, and Mathematics and Statistics. The comparatively low research
output in core areas of the natural sciences and engineering is concerning,
and could impair the flexibility of Canada’s research base, preventing research
institutions and researchers from being able to pivot to tomorrow’s emerging
research areas. [p. xix Print; p. 21 PDF]

Couldn’t they have used a more buoyant tone? After all, science was known as ‘natural philosophy’ up until the 19th century. As for visual and performing arts, let’s include poetry as a performing and literary art (both have been the case historically and cross-culturally) and let’s also note that one of the great physics texts, (De rerum natura by Lucretius) was a multi-volume poem (from Lucretius’ Wikipedia entry; Note: Links have been removed).

His poem De rerum natura (usually translated as “On the Nature of Things” or “On the Nature of the Universe”) transmits the ideas of Epicureanism, which includes Atomism [the concept of atoms forming materials] and psychology. Lucretius was the first writer to introduce Roman readers to Epicurean philosophy.[15] The poem, written in some 7,400 dactylic hexameters, is divided into six untitled books, and explores Epicurean physics through richly poetic language and metaphors. Lucretius presents the principles of atomism; the nature of the mind and soul; explanations of sensation and thought; the development of the world and its phenomena; and explains a variety of celestial and terrestrial phenomena. The universe described in the poem operates according to these physical principles, guided by fortuna, “chance”, and not the divine intervention of the traditional Roman deities.[16]

Should you need more proof that the arts might have something to contribute to physical sciences, there’s this in my March 7, 2018 posting,

It’s not often you see research that combines biologically inspired engineering and a molecular biophysicist with a professional animator who worked at Peter Jackson’s (Lord of the Rings film trilogy, etc.) Park Road Post film studio. An Oct. 18, 2017 news item on ScienceDaily describes the project,

Like many other scientists, Don Ingber, M.D., Ph.D., the Founding Director of the Wyss Institute, [emphasis mine] is concerned that non-scientists have become skeptical and even fearful of his field at a time when technology can offer solutions to many of the world’s greatest problems. “I feel that there’s a huge disconnect between science and the public because it’s depicted as rote memorization in schools, when by definition, if you can memorize it, it’s not science,” says Ingber, who is also the Judah Folkman Professor of Vascular Biology at Harvard Medical School and the Vascular Biology Program at Boston Children’s Hospital, and Professor of Bioengineering at the Harvard Paulson School of Engineering and Applied Sciences (SEAS). [emphasis mine] “Science is the pursuit of the unknown. We have a responsibility to reach out to the public and convey that excitement of exploration and discovery, and fortunately, the film industry is already great at doing that.”

“Not only is our physics-based simulation and animation system as good as other data-based modeling systems, it led to the new scientific insight [emphasis mine] that the limited motion of the dynein hinge focuses the energy released by ATP hydrolysis, which causes dynein’s shape change and drives microtubule sliding and axoneme motion,” says Ingber. “Additionally, while previous studies of dynein have revealed the molecule’s two different static conformations, our animation visually depicts one plausible way that the protein can transition between those shapes at atomic resolution, which is something that other simulations can’t do. The animation approach also allows us to visualize how rows of dyneins work in unison, like rowers pulling together in a boat, which is difficult using conventional scientific simulation approaches.”

It comes down to how we look at things. Yes, physical sciences and engineering are very important. If the report is to be believed we have a very highly educated population and according to PISA scores our students rank highly in mathematics, science, and reading skills. (For more information on Canada’s latest PISA scores from 2015 see this OECD page. As for PISA itself, it’s an OECD [Organization for Economic Cooperation and Development] programme where 15-year-old students from around the world are tested on their reading, mathematics, and science skills, you can get some information from my Oct. 9, 2013 posting.)

Is it really so bad that we choose to apply those skills in fields other than the physical sciences and engineering? It’s a little bit like Hedy Lamarr’s problem except instead of being judged for our looks and having our inventions dismissed, we’re being judged for not applying ourselves to physical sciences and engineering and having our work in other closely aligned fields dismissed as less important.

Canada’s Industrial R&D: an oft-told, very sad story

Bemoaning the state of Canada’s industrial research and development efforts has been a national pastime as long as I can remember. Here’s this from the report released April 10, 2018,

There has been a sustained erosion in Canada’s industrial R&D capacity and competitiveness. Canada ranks 33rd among leading countries on an index assessing the magnitude, intensity, and growth of industrial R&D expenditures. Although Canada is the 11th largest spender, its industrial R&D intensity (0.9%) is only half the OECD average and total spending is declining (−0.7%). Compared with G7 countries, the Canadian portfolio of R&D investment is more concentrated in industries that are intrinsically not as R&D intensive. Canada invests more heavily than the G7 average in oil and gas, forestry, machinery and equipment, and finance where R&D has been less central to business strategy than in many other industries. …  About 50% of Canada’s industrial R&D spending is in high-tech sectors (including industries such as ICT, aerospace, pharmaceuticals, and automotive) compared with the G7 average of 80%. Canadian Business Enterprise Expenditures on R&D (BERD) intensity is also below the OECD average in these sectors. In contrast, Canadian investment in low and medium-low tech sectors is substantially higher than the G7 average. Canada’s spending reflects both its long-standing industrial structure and patterns of economic activity.

R&D investment patterns in Canada appear to be evolving in response to global and domestic shifts. While small and medium-sized enterprises continue to perform a greater share of industrial R&D in Canada than in the United States, between 2009 and 2013, there was a shift in R&D from smaller to larger firms. Canada is an increasingly attractive place to conduct R&D. Investment by foreign-controlled firms in Canada has increased to more than 35% of total R&D investment, with the United States accounting for more than half of that. [emphasis mine]  Multinational enterprises seem to be increasingly locating some of their R&D operations outside their country of ownership, possibly to gain proximity to superior talent. Increasing foreign-controlled R&D, however, also could signal a long-term strategic loss of control over intellectual property (IP) developed in this country, ultimately undermining the government’s efforts to support high-growth firms as they scale up. [pp. xxii-xxiii Print; pp. 24-25 PDF]

Canada has been known as a ‘branch plant’ economy for decades. For anyone unfamiliar with the term, it means that companies from other countries come here, open up a branch and that’s how we get our jobs as we don’t have all that many large companies here. Increasingly, multinationals are locating R&D shops here.

While our small to medium size companies fund industrial R&D, it’s large companies (multinationals) which can afford long-term and serious investment in R&D. Luckily for companies from other countries, we have a well-educated population of people looking for jobs.

In 2017, we opened the door more widely so we can scoop up talented researchers and scientists from other countries, from a June 14, 2017 article by Beckie Smith for The PIE News,

Universities have welcomed the inclusion of the work permit exemption for academic stays of up to 120 days in the strategy, which also introduces expedited visa processing for some highly skilled professions.

Foreign researchers working on projects at a publicly funded degree-granting institution or affiliated research institution will be eligible for one 120-day stay in Canada every 12 months.

And universities will also be able to access a dedicated service channel that will support employers and provide guidance on visa applications for foreign talent.

The Global Skills Strategy, which came into force on June 12 [2017], aims to boost the Canadian economy by filling skills gaps with international talent.

As well as the short term work permit exemption, the Global Skills Strategy aims to make it easier for employers to recruit highly skilled workers in certain fields such as computer engineering.

“Employers that are making plans for job-creating investments in Canada will often need an experienced leader, dynamic researcher or an innovator with unique skills not readily available in Canada to make that investment happen,” said Ahmed Hussen, Minister of Immigration, Refugees and Citizenship.

“The Global Skills Strategy aims to give those employers confidence that when they need to hire from abroad, they’ll have faster, more reliable access to top talent.”

Coincidentally, Microsoft, Facebook, Google, etc. have announced, in 2017, new jobs and new offices in Canadian cities. There’s a also Chinese multinational telecom company Huawei Canada which has enjoyed success in Canada and continues to invest here (from a Jan. 19, 2018 article about security concerns by Matthew Braga for the Canadian Broadcasting Corporation (CBC) online news,

For the past decade, Chinese tech company Huawei has found no shortage of success in Canada. Its equipment is used in telecommunications infrastructure run by the country’s major carriers, and some have sold Huawei’s phones.

The company has struck up partnerships with Canadian universities, and say it is investing more than half a billion dollars in researching next generation cellular networks here. [emphasis mine]

While I’m not thrilled about using patents as an indicator of progress, this is interesting to note (from the report released April 10, 2018),

Canada produces about 1% of global patents, ranking 18th in the world. It lags further behind in trademark (34th) and design applications (34th). Despite relatively weak performance overall in patents, Canada excels in some technical fields such as Civil Engineering, Digital Communication, Other Special Machines, Computer Technology, and Telecommunications. [emphases mine] Canada is a net exporter of patents, which signals the R&D strength of some technology industries. It may also reflect increasing R&D investment by foreign-controlled firms. [emphasis mine] [p. xxiii Print; p. 25 PDF]

Getting back to my point, we don’t have large companies here. In fact, the dream for most of our high tech startups is to build up the company so it’s attractive to buyers, sell, and retire (hopefully before the age of 40). Strangely, the expert panel doesn’t seem to share my insight into this matter,

Canada’s combination of high performance in measures of research output and impact, and low performance on measures of industrial R&D investment and innovation (e.g., subpar productivity growth), continue to be viewed as a paradox, leading to the hypothesis that barriers are impeding the flow of Canada’s research achievements into commercial applications. The Panel’s analysis suggests the need for a more nuanced view. The process of transforming research into innovation and wealth creation is a complex multifaceted process, making it difficult to point to any definitive cause of Canada’s deficit in R&D investment and productivity growth. Based on the Panel’s interpretation of the evidence, Canada is a highly innovative nation, but significant barriers prevent the translation of innovation into wealth creation. The available evidence does point to a number of important contributing factors that are analyzed in this report. Figure 5 represents the relationships between R&D, innovation, and wealth creation.

The Panel concluded that many factors commonly identified as points of concern do not adequately explain the overall weakness in Canada’s innovation performance compared with other countries. [emphasis mine] Academia-business linkages appear relatively robust in quantitative terms given the extent of cross-sectoral R&D funding and increasing academia-industry partnerships, though the volume of academia-industry interactions does not indicate the nature or the quality of that interaction, nor the extent to which firms are capitalizing on the research conducted and the resulting IP. The educational system is high performing by international standards and there does not appear to be a widespread lack of researchers or STEM (science, technology, engineering, and mathematics) skills. IP policies differ across universities and are unlikely to explain a divergence in research commercialization activity between Canadian and U.S. institutions, though Canadian universities and governments could do more to help Canadian firms access university IP and compete in IP management and strategy. Venture capital availability in Canada has improved dramatically in recent years and is now competitive internationally, though still overshadowed by Silicon Valley. Technology start-ups and start-up ecosystems are also flourishing in many sectors and regions, demonstrating their ability to build on research advances to develop and deliver innovative products and services.

You’ll note there’s no mention of a cultural issue where start-ups are designed for sale as soon as possible and this isn’t new. Years ago, there was an accounting firm that published a series of historical maps (the last one I saw was in 2005) of technology companies in the Vancouver region. Technology companies were being developed and sold to large foreign companies from the 19th century to present day.

Part 2

The Canadian science scene and the 2017 Canadian federal budget

There’s not much happening in the 2017-18 budget in terms of new spending according to Paul Wells’ March 22, 2017 article for TheStar.com,

This is the 22nd or 23rd federal budget I’ve covered. And I’ve never seen the like of the one Bill Morneau introduced on Wednesday [March 22, 2017].

Not even in the last days of the Harper Conservatives did a budget provide for so little new spending — $1.3 billion in the current budget year, total, in all fields of government. That’s a little less than half of one per cent of all federal program spending for this year.

But times are tight. The future is a place where we can dream. So the dollars flow more freely in later years. In 2021-22, the budget’s fifth planning year, new spending peaks at $8.2 billion. Which will be about 2.4 per cent of all program spending.

He’s not alone in this 2017 federal budget analysis; CBC (Canadian Broadcasting Corporation) pundits, Chantal Hébert, Andrew Coyne, and Jennifer Ditchburn said much the same during their ‘At Issue’ segment of the March 22, 2017 broadcast of The National (news).

Before I focus on the science and technology budget, here are some general highlights from the CBC’s March 22, 2017 article on the 2017-18 budget announcement (Note: Links have been removed,

Here are highlights from the 2017 federal budget:

  • Deficit: $28.5 billion, up from $25.4 billion projected in the fall.
  • Trend: Deficits gradually decline over next five years — but still at $18.8 billion in 2021-22.
  • Housing: $11.2 billion over 11 years, already budgeted, will go to a national housing strategy.
  • Child care: $7 billion over 10 years, already budgeted, for new spaces, starting 2018-19.
  • Indigenous: $3.4 billion in new money over five years for infrastructure, health and education.
  • Defence: $8.4 billion in capital spending for equipment pushed forward to 2035.
  • Care givers: New care-giving benefit up to 15 weeks, starting next year.
  • Skills: New agency to research and measure skills development, starting 2018-19.
  • Innovation: $950 million over five years to support business-led “superclusters.”
  • Startups: $400 million over three years for a new venture capital catalyst initiative.
  • AI: $125 million to launch a pan-Canadian Artificial Intelligence Strategy.
  • Coding kids: $50 million over two years for initiatives to teach children to code.
  • Families: Option to extend parental leave up to 18 months.
  • Uber tax: GST to be collected on ride-sharing services.
  • Sin taxes: One cent more on a bottle of wine, five cents on 24 case of beer.
  • Bye-bye: No more Canada Savings Bonds.
  • Transit credit killed: 15 per cent non-refundable public transit tax credit phased out this year.

You can find the entire 2017-18 budget here.

Science and the 2017-18 budget

For anyone interested in the science news, you’ll find most of that in the 2017 budget’s Chapter 1 — Skills, Innovation and Middle Class jobs. As well, Wayne Kondro has written up a précis in his March 22, 2017 article for Science (magazine),

Finance officials, who speak on condition of anonymity during the budget lock-up, indicated the budgets of the granting councils, the main source of operational grants for university researchers, will be “static” until the government can assess recommendations that emerge from an expert panel formed in 2015 and headed by former University of Toronto President David Naylor to review basic science in Canada [highlighted in my June 15, 2016 posting ; $2M has been allocated for the advisor and associated secretariat]. Until then, the officials said, funding for the Natural Sciences and Engineering Research Council of Canada (NSERC) will remain at roughly $848 million, whereas that for the Canadian Institutes of Health Research (CIHR) will remain at $773 million, and for the Social Sciences and Humanities Research Council [SSHRC] at $547 million.

NSERC, though, will receive $8.1 million over 5 years to administer a PromoScience Program that introduces youth, particularly unrepresented groups like Aboriginal people and women, to science, technology, engineering, and mathematics through measures like “space camps and conservation projects.” CIHR, meanwhile, could receive modest amounts from separate plans to identify climate change health risks and to reduce drug and substance abuse, the officials added.

… Canada’s Innovation and Skills Plan, would funnel $600 million over 5 years allocated in 2016, and $112.5 million slated for public transit and green infrastructure, to create Silicon Valley–like “super clusters,” which the budget defined as “dense areas of business activity that contain large and small companies, post-secondary institutions and specialized talent and infrastructure.” …

… The Canadian Institute for Advanced Research will receive $93.7 million [emphasis mine] to “launch a Pan-Canadian Artificial Intelligence Strategy … (to) position Canada as a world-leading destination for companies seeking to invest in artificial intelligence and innovation.”

… Among more specific measures are vows to: Use $87.7 million in previous allocations to the Canada Research Chairs program to create 25 “Canada 150 Research Chairs” honoring the nation’s 150th year of existence, provide $1.5 million per year to support the operations of the office of the as-yet-unappointed national science adviser [see my Dec. 7, 2016 post for information about the job posting, which is now closed]; provide $165.7 million [emphasis mine] over 5 years for the nonprofit organization Mitacs to create roughly 6300 more co-op positions for university students and grads, and provide $60.7 million over five years for new Canadian Space Agency projects, particularly for Canadian participation in the National Aeronautics and Space Administration’s next Mars Orbiter Mission.

Kondros was either reading an earlier version of the budget or made an error regarding Mitacs (from the budget in the “A New, Ambitious Approach to Work-Integrated Learning” subsection),

Mitacs has set an ambitious goal of providing 10,000 work-integrated learning placements for Canadian post-secondary students and graduates each year—up from the current level of around 3,750 placements. Budget 2017 proposes to provide $221 million [emphasis mine] over five years, starting in 2017–18, to achieve this goal and provide relevant work experience to Canadian students.

As well, the budget item for the Pan-Canadian Artificial Intelligence Strategy is $125M.

Moving from Kondros’ précis, the budget (in the “Positioning National Research Council Canada Within the Innovation and Skills Plan” subsection) announces support for these specific areas of science,

Stem Cell Research

The Stem Cell Network, established in 2001, is a national not-for-profit organization that helps translate stem cell research into clinical applications, commercial products and public policy. Its research holds great promise, offering the potential for new therapies and medical treatments for respiratory and heart diseases, cancer, diabetes, spinal cord injury, multiple sclerosis, Crohn’s disease, auto-immune disorders and Parkinson’s disease. To support this important work, Budget 2017 proposes to provide the Stem Cell Network with renewed funding of $6 million in 2018–19.

Space Exploration

Canada has a long and proud history as a space-faring nation. As our international partners prepare to chart new missions, Budget 2017 proposes investments that will underscore Canada’s commitment to innovation and leadership in space. Budget 2017 proposes to provide $80.9 million on a cash basis over five years, starting in 2017–18, for new projects through the Canadian Space Agency that will demonstrate and utilize Canadian innovations in space, including in the field of quantum technology as well as for Mars surface observation. The latter project will enable Canada to join the National Aeronautics and Space Administration’s (NASA’s) next Mars Orbiter Mission.

Quantum Information

The development of new quantum technologies has the potential to transform markets, create new industries and produce leading-edge jobs. The Institute for Quantum Computing is a world-leading Canadian research facility that furthers our understanding of these innovative technologies. Budget 2017 proposes to provide the Institute with renewed funding of $10 million over two years, starting in 2017–18.

Social Innovation

Through community-college partnerships, the Community and College Social Innovation Fund fosters positive social outcomes, such as the integration of vulnerable populations into Canadian communities. Following the success of this pilot program, Budget 2017 proposes to invest $10 million over two years, starting in 2017–18, to continue this work.

International Research Collaborations

The Canadian Institute for Advanced Research (CIFAR) connects Canadian researchers with collaborative research networks led by eminent Canadian and international researchers on topics that touch all humanity. Past collaborations facilitated by CIFAR are credited with fostering Canada’s leadership in artificial intelligence and deep learning. Budget 2017 proposes to provide renewed and enhanced funding of $35 million over five years, starting in 2017–18.

Earlier this week, I highlighted Canada’s strength in the field of regenerative medicine, specifically stem cells in a March 21, 2017 posting. The $6M in the current budget doesn’t look like increased funding but rather a one-year extension. I’m sure they’re happy to receive it  but I imagine it’s a little hard to plan major research projects when you’re not sure how long your funding will last.

As for Canadian leadership in artificial intelligence, that was news to me. Here’s more from the budget,

Canada a Pioneer in Deep Learning in Machines and Brains

CIFAR’s Learning in Machines & Brains program has shaken up the field of artificial intelligence by pioneering a technique called “deep learning,” a computer technique inspired by the human brain and neural networks, which is now routinely used by the likes of Google and Facebook. The program brings together computer scientists, biologists, neuroscientists, psychologists and others, and the result is rich collaborations that have propelled artificial intelligence research forward. The program is co-directed by one of Canada’s foremost experts in artificial intelligence, the Université de Montréal’s Yoshua Bengio, and for his many contributions to the program, the University of Toronto’s Geoffrey Hinton, another Canadian leader in this field, was awarded the title of Distinguished Fellow by CIFAR in 2014.

Meanwhile, from chapter 1 of the budget in the subsection titled “Preparing for the Digital Economy,” there is this provision for children,

Providing educational opportunities for digital skills development to Canadian girls and boys—from kindergarten to grade 12—will give them the head start they need to find and keep good, well-paying, in-demand jobs. To help provide coding and digital skills education to more young Canadians, the Government intends to launch a competitive process through which digital skills training organizations can apply for funding. Budget 2017 proposes to provide $50 million over two years, starting in 2017–18, to support these teaching initiatives.

I wonder if BC Premier Christy Clark is heaving a sigh of relief. At the 2016 #BCTECH Summit, she announced that students in BC would learn to code at school and in newly enhanced coding camp programmes (see my Jan. 19, 2016 posting). Interestingly, there was no mention of additional funding to support her initiative. I guess this money from the federal government comes at a good time as we will have a provincial election later this spring where she can announce the initiative again and, this time, mention there’s money for it.

Attracting brains from afar

Ivan Semeniuk in his March 23, 2017 article (for the Globe and Mail) reads between the lines to analyze the budget’s possible impact on Canadian science,

But a between-the-lines reading of the budget document suggests the government also has another audience in mind: uneasy scientists from the United States and Britain.

The federal government showed its hand at the 2017 #BCTECH Summit. From a March 16, 2017 article by Meera Bains for the CBC news online,

At the B.C. tech summit, Navdeep Bains, Canada’s minister of innovation, said the government will act quickly to fast track work permits to attract highly skilled talent from other countries.

“We’re taking the processing time, which takes months, and reducing it to two weeks for immigration processing for individuals [who] need to come here to help companies grow and scale up,” Bains said.

“So this is a big deal. It’s a game changer.”

That change will happen through the Global Talent Stream, a new program under the federal government’s temporary foreign worker program.  It’s scheduled to begin on June 12, 2017.

U.S. companies are taking notice and a Canadian firm, True North, is offering to help them set up shop.

“What we suggest is that they think about moving their operations, or at least a chunk of their operations, to Vancouver, set up a Canadian subsidiary,” said the company’s founder, Michael Tippett.

“And that subsidiary would be able to house and accommodate those employees.”

Industry experts says while the future is unclear for the tech sector in the U.S., it’s clear high tech in B.C. is gearing up to take advantage.

US business attempts to take advantage of Canada’s relative stability and openness to immigration would seem to be the motive for at least one cross border initiative, the Cascadia Urban Analytics Cooperative. From my Feb. 28, 2017 posting,

There was some big news about the smallest version of the Cascadia region on Thursday, Feb. 23, 2017 when the University of British Columbia (UBC) , the University of Washington (state; UW), and Microsoft announced the launch of the Cascadia Urban Analytics Cooperative. From the joint Feb. 23, 2017 news release (read on the UBC website or read on the UW website),

In an expansion of regional cooperation, the University of British Columbia and the University of Washington today announced the establishment of the Cascadia Urban Analytics Cooperative to use data to help cities and communities address challenges from traffic to homelessness. The largest industry-funded research partnership between UBC and the UW, the collaborative will bring faculty, students and community stakeholders together to solve problems, and is made possible thanks to a $1-million gift from Microsoft.

Today’s announcement follows last September’s [2016] Emerging Cascadia Innovation Corridor Conference in Vancouver, B.C. The forum brought together regional leaders for the first time to identify concrete opportunities for partnerships in education, transportation, university research, human capital and other areas.

A Boston Consulting Group study unveiled at the conference showed the region between Seattle and Vancouver has “high potential to cultivate an innovation corridor” that competes on an international scale, but only if regional leaders work together. The study says that could be possible through sustained collaboration aided by an educated and skilled workforce, a vibrant network of research universities and a dynamic policy environment.

It gets better, it seems Microsoft has been positioning itself for a while if Matt Day’s analysis is correct (from my Feb. 28, 2017 posting),

Matt Day in a Feb. 23, 2017 article for the The Seattle Times provides additional perspective (Note: Links have been removed),

Microsoft’s effort to nudge Seattle and Vancouver, B.C., a bit closer together got an endorsement Thursday [Feb. 23, 2017] from the leading university in each city.

The partnership has its roots in a September [2016] conference in Vancouver organized by Microsoft’s public affairs and lobbying unit [emphasis mine.] That gathering was aimed at tying business, government and educational institutions in Microsoft’s home region in the Seattle area closer to its Canadian neighbor.

Microsoft last year [2016] opened an expanded office in downtown Vancouver with space for 750 employees, an outpost partly designed to draw to the Northwest more engineers than the company can get through the U.S. guest worker system [emphasis mine].

This was all prior to President Trump’s legislative moves in the US, which have at least one Canadian observer a little more gleeful than I’m comfortable with. From a March 21, 2017 article by Susan Lum  for CBC News online,

U.S. President Donald Trump’s efforts to limit travel into his country while simultaneously cutting money from science-based programs provides an opportunity for Canada’s science sector, says a leading Canadian researcher.

“This is Canada’s moment. I think it’s a time we should be bold,” said Alan Bernstein, president of CIFAR [which on March 22, 2017 was awarded $125M to launch the Pan Canada Artificial Intelligence Strategy in the Canadian federal budget announcement], a global research network that funds hundreds of scientists in 16 countries.

Bernstein believes there are many reasons why Canada has become increasingly attractive to scientists around the world, including the political climate in the United States and the Trump administration’s travel bans.

Thankfully, Bernstein calms down a bit,

“It used to be if you were a bright young person anywhere in the world, you would want to go to Harvard or Berkeley or Stanford, or what have you. Now I think you should give pause to that,” he said. “We have pretty good universities here [emphasis mine]. We speak English. We’re a welcoming society for immigrants.”​

Bernstein cautions that Canada should not be seen to be poaching scientists from the United States — but there is an opportunity.

“It’s as if we’ve been in a choir of an opera in the back of the stage and all of a sudden the stars all left the stage. And the audience is expecting us to sing an aria. So we should sing,” Bernstein said.

Bernstein said the federal government, with this week’s so-called innovation budget, can help Canada hit the right notes.

“Innovation is built on fundamental science, so I’m looking to see if the government is willing to support, in a big way, fundamental science in the country.”

Pretty good universities, eh? Thank you, Dr. Bernstein, for keeping some of the boosterism in check. Let’s leave the chest thumping to President Trump and his cronies.

Ivan Semeniuk’s March 23, 2017 article (for the Globe and Mail) provides more details about the situation in the US and in Britain,

Last week, Donald Trump’s first budget request made clear the U.S. President would significantly reduce or entirely eliminate research funding in areas such as climate science and renewable energy if permitted by Congress. Even the National Institutes of Health, which spearheads medical research in the United States and is historically supported across party lines, was unexpectedly targeted for a $6-billion (U.S.) cut that the White House said could be achieved through “efficiencies.”

In Britain, a recent survey found that 42 per cent of academics were considering leaving the country over worries about a less welcoming environment and the loss of research money that a split with the European Union is expected to bring.

In contrast, Canada’s upbeat language about science in the budget makes a not-so-subtle pitch for diversity and talent from abroad, including $117.6-million to establish 25 research chairs with the aim of attracting “top-tier international scholars.”

For good measure, the budget also includes funding for science promotion and $2-million annually for Canada’s yet-to-be-hired Chief Science Advisor, whose duties will include ensuring that government researchers can speak freely about their work.

“What we’ve been hearing over the last few months is that Canada is seen as a beacon, for its openness and for its commitment to science,” said Ms. Duncan [Kirsty Duncan, Minister of Science], who did not refer directly to either the United States or Britain in her comments.

Providing a less optimistic note, Erica Alini in her March 22, 2017 online article for Global News mentions a perennial problem, the Canadian brain drain,

The budget includes a slew of proposed reforms and boosted funding for existing training programs, as well as new skills-development resources for unemployed and underemployed Canadians not covered under current EI-funded programs.

There are initiatives to help women and indigenous people get degrees or training in science, technology, engineering and mathematics (the so-called STEM subjects) and even to teach kids as young as kindergarten-age to code.

But there was no mention of how to make sure Canadians with the right skills remain in Canada, TD’s DePratto {Toronto Dominion Bank} Economics; TD is currently experiencing a scandal {March 13, 2017 Huffington Post news item}] told Global News.

Canada ranks in the middle of the pack compared to other advanced economies when it comes to its share of its graduates in STEM fields, but the U.S. doesn’t shine either, said DePratto [Brian DePratto, senior economist at TD .

The key difference between Canada and the U.S. is the ability to retain domestic talent and attract brains from all over the world, he noted.

To be blunt, there may be some opportunities for Canadian science but it does well to remember (a) US businesses have no particular loyalty to Canada and (b) all it takes is an election to change any perceived advantages to disadvantages.

Digital policy and intellectual property issues

Dubbed by some as the ‘innovation’ budget (official title:  Building a Strong Middle Class), there is an attempt to address a longstanding innovation issue (from a March 22, 2017 posting by Michael Geist on his eponymous blog (Note: Links have been removed),

The release of today’s [march 22, 2017] federal budget is expected to include a significant emphasis on innovation, with the government revealing how it plans to spend (or re-allocate) hundreds of millions of dollars that is intended to support innovation. Canada’s dismal innovation record needs attention, but spending our way to a more innovative economy is unlikely to yield the desired results. While Navdeep Bains, the Innovation, Science and Economic Development Minister, has talked for months about the importance of innovation, Toronto Star columnist Paul Wells today delivers a cutting but accurate assessment of those efforts:

“This government is the first with a minister for innovation! He’s Navdeep Bains. He frequently posts photos of his meetings on Twitter, with the hashtag “#innovation.” That’s how you know there is innovation going on. A year and a half after he became the minister for #innovation, it’s not clear what Bains’s plans are. It’s pretty clear that within the government he has less than complete control over #innovation. There’s an advisory council on economic growth, chaired by the McKinsey guru Dominic Barton, which periodically reports to the government urging more #innovation.

There’s a science advisory panel, chaired by former University of Toronto president David Naylor, that delivered a report to Science Minister Kirsty Duncan more than three months ago. That report has vanished. One presumes that’s because it offered some advice. Whatever Bains proposes, it will have company.”

Wells is right. Bains has been very visible with plenty of meetings and public photo shoots but no obvious innovation policy direction. This represents a missed opportunity since Bains has plenty of policy tools at his disposal that could advance Canada’s innovation framework without focusing on government spending.

For example, Canada’s communications system – wireless and broadband Internet access – falls directly within his portfolio and is crucial for both business and consumers. Yet Bains has been largely missing in action on the file. He gave approval for the Bell – MTS merger that virtually everyone concedes will increase prices in the province and make the communications market less competitive. There are potential policy measures that could bring new competitors into the market (MVNOs [mobile virtual network operators] and municipal broadband) and that could make it easier for consumers to switch providers (ban on unlocking devices). Some of this falls to the CRTC, but government direction and emphasis would make a difference.

Even more troubling has been his near total invisibility on issues relating to new fees or taxes on Internet access and digital services. Canadian Heritage Minister Mélanie Joly has taken control of the issue with the possibility that Canadians could face increased costs for their Internet access or digital services through mandatory fees to contribute to Canadian content.  Leaving aside the policy objections to such an approach (reducing affordable access and the fact that foreign sources now contribute more toward Canadian English language TV production than Canadian broadcasters and distributors), Internet access and e-commerce are supposed to be Bains’ issue and they have a direct connection to the innovation file. How is it possible for the Innovation, Science and Economic Development Minister to have remained silent for months on the issue?

Bains has been largely missing on trade related innovation issues as well. My Globe and Mail column today focuses on a digital-era NAFTA, pointing to likely U.S. demands on data localization, data transfers, e-commerce rules, and net neutrality.  These are all issues that fall under Bains’ portfolio and will impact investment in Canadian networks and digital services. There are innovation opportunities for Canada here, but Bains has been content to leave the policy issues to others, who will be willing to sacrifice potential gains in those areas.

Intellectual property policy is yet another area that falls directly under Bains’ mandate with an obvious link to innovation, but he has done little on the file. Canada won a huge NAFTA victory late last week involving the Canadian patent system, which was challenged by pharmaceutical giant Eli Lilly. Why has Bains not promoted the decision as an affirmation of how Canada’s intellectual property rules?

On the copyright front, the government is scheduled to conduct a review of the Copyright Act later this year, but it is not clear whether Bains will take the lead or again cede responsibility to Joly. The Copyright Act is statutorily under the Industry Minister and reform offers the chance to kickstart innovation. …

For anyone who’s not familiar with this area, innovation is often code for commercialization of science and technology research efforts. These days, digital service and access policies and intellectual property policies are all key to research and innovation efforts.

The country that’s most often (except in mainstream Canadian news media) held up as an example of leadership in innovation is Estonia. The Economist profiled the country in a July 31, 2013 article and a July 7, 2016 article on apolitical.co provides and update.

Conclusions

Science monies for the tri-council science funding agencies (NSERC, SSHRC, and CIHR) are more or less flat but there were a number of line items in the federal budget which qualify as science funding. The $221M over five years for Mitacs, the $125M for the Pan-Canadian Artificial Intelligence Strategy, additional funding for the Canada research chairs, and some of the digital funding could also be included as part of the overall haul. This is in line with the former government’s (Stephen Harper’s Conservatives) penchant for keeping the tri-council’s budgets under control while spreading largesse elsewhere (notably the Perimeter Institute, TRIUMF [Canada’s National Laboratory for Particle and Nuclear Physics], and, in the 2015 budget, $243.5-million towards the Thirty Metre Telescope (TMT) — a massive astronomical observatory to be constructed on the summit of Mauna Kea, Hawaii, a $1.5-billion project). This has lead to some hard feelings in the past with regard to ‘big science’ projects getting what some have felt is an undeserved boost in finances while the ‘small fish’ are left scrabbling for the ever-diminishing (due to budget cuts in years past and inflation) pittances available from the tri-council agencies.

Mitacs, which started life as a federally funded Network Centre for Excellence focused on mathematics, has since shifted focus to become an innovation ‘champion’. You can find Mitacs here and you can find the organization’s March 2016 budget submission to the House of Commons Standing Committee on Finance here. At the time, they did not request a specific amount of money; they just asked for more.

The amount Mitacs expects to receive this year is over $40M which represents more than double what they received from the federal government and almost of 1/2 of their total income in the 2015-16 fiscal year according to their 2015-16 annual report (see p. 327 for the Mitacs Statement of Operations to March 31, 2016). In fact, the federal government forked over $39,900,189. in the 2015-16 fiscal year to be their largest supporter while Mitacs’ total income (receipts) was $81,993,390.

It’s a strange thing but too much money, etc. can be as bad as too little. I wish the folks Mitacs nothing but good luck with their windfall.

I don’t see anything in the budget that encourages innovation and investment from the industrial sector in Canada.

Finallyl, innovation is a cultural issue as much as it is a financial issue and having worked with a number of developers and start-up companies, the most popular business model is to develop a successful business that will be acquired by a large enterprise thereby allowing the entrepreneurs to retire before the age of 30 (or 40 at the latest). I don’t see anything from the government acknowledging the problem let alone any attempts to tackle it.

All in all, it was a decent budget with nothing in it to seriously offend anyone.