Tag Archives: Pan-Canadian Genomics Strategy

Canada’s science and its 2022 federal budget (+ the online April 21, 2022 symposium: Decoding Budget 2022 for Science and Innovation)

Here’s my more or less annual commentary on the newly announced federal budget. This year the 2022/23 Canadian federal budget was presented by Chrystia Freeland, Minister of Finance, on April 7, 2022.

Sadly the budgets never include a section devoted to science and technology, which makes finding the information a hunting exercise.

I found most of my quarry in the 2022 budget’s Chapter 2: A Strong, Growing, and Resilient Economy (Note: I’m picking and choosing items that interest me),

Key Ongoing Actions

  • $8 billion to transform and decarbonize industry and invest in clean technologies and batteries;
  • $4 billion for the Canada Digital Adoption Program, which launched in March 2022 to help businesses move online, boost their e-commerce presence, and digitalize their businesses;
  • $1.2 billion to support life sciences and bio-manufacturing in Canada, including investments in clinical trials, bio-medical research, and research infrastructure;
  • $1 billion to the Strategic Innovation Fund to support life sciences and bio-manufacturing firms in Canada and develop more resilient supply chains. This builds on investments made throughout the pandemic with manufacturers of vaccines and therapeutics like Sanofi, Medicago, and Moderna;
  • $1 billion for the Universal Broadband Fund (UBF), bringing the total available through the UBF to $2.75 billion, to improve high-speed Internet access and support economic development in rural and remote areas of Canada;
  • $1.2 billion to launch the National Quantum Strategy, Pan-Canadian Genomics Strategy, and the next phase of Canada’s Pan-Canadian Artificial Intelligence Strategy to capitalize on emerging technologies of the future [Please see: the ‘I am confused’ subhead for more about the ‘launches’];
  • Helping small and medium-sized businesses to invest in new technologies and capital projects by allowing for the immediate expensing of up to $1.5 million of eligible investments beginning in 2021;

While there are proposed investments in digital adoption and the Universal Broadband Fund, there’s no mention of 5G but perhaps that’s too granular (or specific) for a national budget. I wonder if we’re catching up yet? There have been concerns about our failure to keep pace with telecommunications developments and infrastructure internationally.

Moving on from ‘Key Ongoing Actions’, there are these propositions from Chapter 2: A Strong, Growing, and Resilient Economy (Note: I have not offset the material from the budget in a ‘quote’ form as I want to retain the formatting.),

Creating a Canadian Innovation and Investment Agency

Canadians are a talented, creative, and inventive people. Our country has never been short on good ideas.

But to grow our economy, invention is not enough. Canadians and Canadian companies need to take their new ideas and new technologies and turn them into new products, services, and growing businesses.

However, Canada currently ranks last in the G7 in R&D spending by businesses. This trend has to change. [Note: We’ve been lagging from at least 10 or more years and we keep talking about catching up.]

Solving Canada’s main innovation challenges—a low rate of private business investment in research, development, and the uptake of new technologies—is key to growing our economy and creating good jobs.

A market-oriented innovation and investment agency—one with private sector leadership and expertise—has helped countries like Finland and Israel transform themselves into global innovation leaders. {Note: The 2021 budget also name checked Israel.]

The Israel Innovation Authority has spurred the growth of R&D-intensive sectors, like the information and communications technology and autonomous vehicle sectors. The Finnish TEKES [Tekes – The Finnish Funding Agency for Technology and Innovation] helped transform low-technology sectors like forestry and mining into high technology, prosperous, and globally competitive industries.

In Canada, a new innovation and investment agency will proactively work with new and established Canadian industries and businesses to help them make the investments they need to innovate, grow, create jobs, and be competitive in the changing global economy.

Budget 2022 announces the government’s intention to create an operationally independent federal innovation and investment agency, and proposes $1 billion over five years, starting in 2022-23, to support its initial operations. Final details on the agency’s operating budget are to be determined following further consultation later this year.

Review of Tax Support to R&D and Intellectual Property

The Scientific Research and Experimental Development (SR&ED) program provides tax incentives to encourage Canadian businesses of all sizes and in all sectors to conduct R&D. The SR&ED program has been a cornerstone of Canada’s innovation strategy. The government intends to undertake a review of the program, first to ensure that it is effective in encouraging R&D that benefits Canada, and second to explore opportunities to modernize and simplify it. Specifically, the review will examine whether changes to eligibility criteria would be warranted to ensure adequacy of support and improve overall program efficiency. 

As part of this review, the government will also consider whether the tax system can play a role in encouraging the development and retention of intellectual property stemming from R&D conducted in Canada. In particular, the government will consider, and seek views on, the suitability of adopting a patent box regime [emphasis mine] in order to meet these objectives.

I am confused

Let’s start with the 2022 budget’s $1.2 billion to launch the National Quantum Strategy, Pan-Canadian Genomics Strategy, and the next phase of Canada’s Pan-Canadian Artificial Intelligence Strategy. Here’s what I had in my May 4, 2021 posting about the 2021 budget,

  • Budget 2021 proposes to provide $360 million over seven years, starting in 2021-22, to launch a National Quantum Strategy [emphasis mine]. The strategy will amplify Canada’s significant strength in quantum research; grow our quantum-ready technologies, companies, and talent; and solidify Canada’s global leadership in this area. This funding will also establish a secretariat at the Department of Innovation, Science and Economic Development to coordinate this work.
  • Budget 2021 proposes to provide $400 million over six years, starting in 2021-22, in support of a Pan-Canadian Genomics Strategy [emphasis mine]. This funding would provide $136.7 million over five years, starting in 2022-23, for mission-driven programming delivered by Genome Canada to kick-start the new Strategy and complement the government’s existing genomics research and innovation programming.
  • Budget 2021 proposes to provide up to $443.8 million over ten years, starting in 2021-22, in support of the Pan-Canadian Artificial Intelligence Strategy [emphasis mine], …

How many times can you ‘launch’ a strategy?

A patent box regime

So the government is “… encouraging the development and retention of intellectual property stemming from R&D conducted in Canada” and is examining a “patent box regime” with an eye as to how that will help achieve those ends. Interesting!

Here’s how the patent box is described on Wikipedia (Note: Links have been removed),

A patent box is a special very low corporate tax regime used by several countries to incentivise research and development by taxing patent revenues differently from other commercial revenues.[1] It is also known as intellectual property box regime, innovation box or IP box. Patent boxes have also been used as base erosion and profit shifting (BEPS) tools, to avoid corporate taxes.

Even if they can find a way to “incentivize” R&D, the government has a problem keeping research in the country (see my September 17, 2021 posting (about the Council of Academies CCA’s ‘Public Safety in the Digital Age’ project) and scroll down about 50% of the way to find this,

There appears to be at least one other major security breach; that involving Canada’s only level four laboratory, the Winnipeg-based National Microbiology Lab (NML). (See a June 10, 2021 article by Karen Pauls for Canadian Broadcasting Corporation news online for more details.)

As far as I’m aware, Ortis [very senior civilian RCMP intelligence official Cameron Ortis] is still being held with a trial date scheduled for September 2022 (see Catherine Tunney’s April 9, 2021 article for CBC news online) and, to date, there have been no charges laid in the Winnipeg lab case.

The “security breach” involved sending information and sample viruses to another country, without proper documentation or approvals.

While I delved into a particular aspect of public safety in my posting, the CCA’s ‘Public Safety in the Digital Age’ project was very loosely defined and no mention was made of intellectual property. (You can check the “Exactly how did the question get framed?” subheading in the September 17, 2021 posting.)

Research security

While it might be described as ‘shutting the barn door after the horse got out’, there is provision in the 2022 budget for security vis-à-vis our research, from Chapter 2: A Strong, Growing, and Resilient Economy,

Securing Canada’s Research from Foreign Threats

Canadian research and intellectual property can be an attractive target for foreign intelligence agencies looking to advance their own economic, military, or strategic interests. The National Security Guidelines for Research Partnerships, developed in collaboration with the Government of Canada– Universities Working Group in July 2021, help to protect federally funded research.

  • To implement these guidelines fully, Budget 2022 proposes to provide $159.6 million, starting in 2022-23, and $33.4 million ongoing, as follows:
    • $125 million over five years, starting in 2022-23, and $25 million ongoing, for the Research Support Fund to build capacity within post- secondary institutions to identify, assess, and mitigate potential risks to research security; and
    • $34.6 million over five years, starting in 2022-23, and $8.4 million ongoing, to enhance Canada’s ability to protect our research, and to establish a Research Security Centre that will provide advice and guidance directly to research institutions.

Mining

There’s a reason I’m mentioning the mining industry, from Chapter 2: A Strong, Growing, and Resilient Economy,

Canada’s Critical Minerals and Clean Industrial Strategies

Critical minerals are central to major global industries like clean technology, health care, aerospace, and computing. They are used in phones, computers, and in our cars. [emphases mine] They are already essential to the global economy and will continue to be in even greater demand in the years to come.

Canada has an abundance of a number of valuable critical minerals, but we need to make significant investments to make the most of these resources.

In Budget 2022, the federal government intends to make significant investments that would focus on priority critical mineral deposits, while working closely with affected Indigenous groups and through established regulatory processes. These investments will contribute to the development of a domestic zero-emissions vehicle value chain, including batteries, permanent magnets, and other electric vehicle components. They will also secure Canada’s place in important supply chains with our allies and implement a just and sustainable Critical Minerals Strategy.

In total, Budget 2022 proposes to provide up to $3.8 billion in support over eight years, on a cash basis, starting in 2022-23, to implement Canada’s first Critical Minerals Strategy. This will create thousands of good jobs, grow our economy, and make Canada a vital part of the growing global critical minerals industry.

I don’t recall seeing mining being singled out before and I’m glad to see it now.

A 2022 federal budget commentary from University Affairs

Hannah Liddle’s April 8, 2022 article for University Affairs is focused largely on the budget’s impact on scientific research and she picked up on a few things I missed,

Budget 2022 largely focuses on housing affordability, clean growth and defence, with few targeted investments in scientific research.

The government tabled $1 billion over five years for an innovation and investment agency, designed to boost private sector investments in research and development, and to correct the slow uptake of new technologies across Canadian industries. The new agency represents a “huge evolution” in federal thinking about innovation, according to Higher Education Strategy Associates. The company noted in a budget commentary that Ottawa has shifted to solving the problem of low spending on research and development by working with the private sector, rather than funding universities as an alternative. The budget also indicated that the innovation and investment agency will support the defence sector and boost defence manufacturing, but the promised Canada Advanced Research Projects Agency – which was to be modelled after the famed American DARPA program – was conspicuously missing from the budget. [emphases mine]

However, the superclusters were mentioned and have been rebranded [emphasis mine] and given a funding boost. The five networks are now called “global innovation clusters,” [emphasis mine] and will receive $750 million over six years, which is half of what they had reportedly asked for. Many universities and research institutions are members of the five clusters, which are meant to bring together government, academia, and industry to create new companies, jobs, intellectual property, and boost economic growth.

Other notable innovation-related investments include the launch of a critical minerals strategy, which will give the country’s mining sector $3.8 billion over eight years. The strategy will support the development of a domestic zero-emission vehicle value chain, including for batteries (which are produced using critical minerals). The National Research Council will receive funding through the strategy, shared with Natural Resources Canada, to support new technologies and bolster supply chains of critical minerals such as lithium and cobalt. The government has also targeted investments in the semiconductor industry ($45 million over four years), the CAN Health Network ($40 million over four years), and the Canadian High Arctic Research Station ($14.5 million over five years).

Canada’s higher education institutions did notch a win with a major investment in agriculture research. The government will provide $100 million over six years to support postsecondary research in developing new agricultural technologies and crop varieties, which could push forward net-zero emissions agriculture.

The Canada Excellence Research Chairs program received $38.3 million in funding over four years beginning in 2023-24, with the government stating this could create 12 to 25 new chair positions.

To support Canadian cybersecurity, which is a key priority under the government’s $8 billion defence umbrella, the budget gives $17.7 million over five years and $5.5 million thereafter until 2031-32 for a “unique research chair program to fund academics to conduct research on cutting-edge technologies” relevant to the Communications Security Establishment – the national cryptologic agency. The inaugural chairs will split their time between peer-reviewed and classified research.

The federal granting councils will be given $40.9 million over five years beginning in 2022-23, and $9.7 million ongoing, to support Black “student researchers,” who are among the underrepresented groups in the awarding of scholarships, grants and fellowships. Additionally, the federal government will give $1.5 million to the Jean Augustine Chair in Education, Community and Diaspora, housed at York University, to address systemic barriers and racial inequalities in the Canadian education system and to improve outcomes for Black students.

A pretty comprehensive listing of all the science-related funding in the 2022 budget can be found in an April 7, 2022 posting on the Evidence for Democracy (E4D) blog,

2022 budget symposium

Here’s more about the symposium from the Canadian Science Policy Centre (CSPC), from the Decoding Budget 2022 event page,

Decoding Budget 2022 for Science and Innovation

The CSPC Budget Symposium will be held on Thursday April 21 [2022] at 12:00 pm (EST), and feature numerous speakers from across the country and across different sectors, in two sessions and one keynote presentation by Dave Watters titled: “Decoding Budget 2022 for Science and Innovation”.

Don’t miss this session and all insightful discussions of the Federal Budget 2022.

Register Here

You can see the 2022 symposium poster below,

By the way, David Watters gave the keynote address for the 2021 symposium too. Seeing his name twice now aroused my curiosity. Here’s a little more about David Watters (from a 2013 bio on the Council of Canadian Academies website), Note: He is still president,

David Watters is President of the Global Advantage Consulting Group, a strategic management consulting firm that provides advice to corporate, association, and government clients in Canada and abroad.

Mr. Watters worked for over 30 years in the federal public service in a variety of departments, including Energy Mines and Resources, Consumer and Corporate Affairs, Industry Canada (as Assistant Deputy Minister), Treasury Board Secretariat (in charge of Crown corporations and privatization issues), the Canadian Coast Guard (as its Commissioner) and Finance Canada (as Assistant Deputy Minister for Economic Development and Corporate Finance). He then moved to the Public Policy Forum where he worked on projects dealing with the innovation agenda, particularly in areas such as innovation policy, health reform, transportation, and the telecommunications and information technology sectors. He also developed reports on the impact of the Enron scandal and other corporate and public sector governance problems for Canadian regulators.

Since starting the Global Advantage Consulting Group in 2002, Mr. Watters has assisted a variety of public and private clients. His areas of specialization and talent are in creating visual models for policy development and decision making, and business models for managing research and technology networks. He has also been an adjunct professor at the Telfer School of Management at the University of Ottawa, teaching International Negotiation.

Mr. Watters holds a Bachelor’s degree in Economics from Queen’s University as well as a Law degree in corporate, commercial and tax law from the Faculty of Law at Queen’s University.

So, an economist, lawyer, and government bureaucrat is going to analyze the budget with regard to science and R&D? If I had to guess, I’d say he’s going to focus in ‘innovation’ which I’m decoding as a synonym for ‘business/commercialization’.

Getting back to the budget, it’s pretty medium where science is concerned with more than one -re-announcement’. As the pundits have noted, the focus is on deficit reduction and propping up the economy.

ETA April 20, 2022: There’s been a keynote speaker change, from an April 20, 2022 CSPC announcement (received via email),

… keynote presentation by Omer Kaya, CEO of Global Advantage Consulting Group. Unfortunately, due to unexpected circumstances, Dave Watters will not be presenting at this session as expected before.

Canada’s 2021 budget and science

As more than one observer has noted, this April 19, 2021 budget is the first in two years. Predictably, there has been some distress over the copious amounts of money being spent to stimulate/restart the economy whether it needs it or not. Some have described this as a pre-election budget. Overall, there seems to be more satisfaction than criticism.

Maybe a little prescient?

After mentioning some of the government’s issues with money (Phoenix Payroll System debacle and WE Charity scandal) in my April 13, 2021 posting about the then upcoming Canadian Science Policy Centre’s post-budget symposium, I had these comments (which surprise even me),

None of this has anything to do with science funding (as far as I know) but it does set the stage for questions about how science funding is determined and who will be getting it. There are already systems in place for science funding through various agencies but the federal budget often sets special priorities such as the 2017 Pan-Canadian Artificial Intelligence Strategy [emphasis added April 29, 2021] with its attendant $125M. As well,Prime Minister Justin Trudeau likes to use science as a means of enhancing his appeal. [emphasis mine] See my March 16, 2018 posting for a sample of this, scroll down to the “Sunny ways: a discussion between Justin Trudeau and Bill Nye” subhead.

Budget 2021 introduced two new strategies, the first ones since the 2017 budget: the Pan-Canadian Genomics Strategy and the National Quantum Strategy. As for whether this ploy will help enhance Trudeau’s appeal, that seems doubtful given his current plight (see an April 27, 2021 CBC online news item “PM says his office didn’t know Vance allegations were about sexual misconduct” for a description of some of Trudeau’s latest political scandal).

Science in the 2021 budget (a few highlights)

For anyone who wants to take a look at the 2021 Canadian Federal Budget, Chapters Four and Five (in Part Two) seems to contain the bulk of the science funding announcements. Here are the highlights, given my perspective, from Chapter Four (Note: I don’t chime in again until the “A full list …. subhead):

4.6 Investing in World-leading Research and Innovation

A plan for a long-term recovery must look to challenges and opportunities that lie ahead in the years and decades to come. It must be led by a growth strategy that builds on the unique competitive advantages of the Canadian economy, and make sure that Canada is well-positioned to meet the demands of the next century. This work begins with innovation.

To drive growth and create good, well-paying jobs, entrepreneurs and businesses need to be able to translate Canada’s world-class leadership in research into innovative products and services for Canadians, and for the world.

These investments will help cement Canada’s position as a world leader in research and innovation, building a global brand that will attract talent and capital for years to come.

Supporting Innovation and Industrial Transformation

Since its launch in 2017, the Strategic Innovation Fund has been helping businesses invest, grow, and innovate in Canada. Through its efforts to help businesses make the investments they need to succeed, the fund is well-placed to support growth and the creation of good jobs across the Canadian economy—both now and in the future.

  • Budget 2021 proposes to provide the Strategic Innovation Fund with an incremental $7.2 billion over seven years on a cash basis, starting in 2021-22, and $511.4 million ongoing. This funding will be directed as follows:
  • $2.2 billion over seven years, and $511.4 million ongoing to support innovative projects across the economy—including in the life sciences, automotive, aerospace, and agriculture sectors.
  • $5 billion over seven years to increase funding for the Strategic Innovation Fund’s Net Zero Accelerator, as detailed in Chapter 5. Through the Net Zero Accelerator the fund would scale up its support for projects that will help decarbonize heavy industry, support clean technologies and help meaningfully accelerate domestic greenhouse gas emissions reductions by 2030.

The funding proposed in Budget 2021 will build on the Strategic Innovation Fund’s existing resources, including the $3 billion over five years announced in December 2020 for the Net Zero Accelerator. With this additional support, the Strategic Innovation Fund will target investments in important areas of future growth over the coming years to advance multiple strategic objectives for the Canadian economy:

  • $1.75 billion in support over seven years would be targeted toward aerospace in recognition of the longer-lasting impacts to this sector following COVID-19. This is in addition to the $250 million Aerospace Regional Recovery Initiative, outlined in section 4.2, providing a combined support of $2 billion to help this innovative sector recover and grow out of the crisis.
  • $1 billion of support over seven years would be targeted toward growing Canada’s life sciences and bio-manufacturing sector, restoring capabilities that have been lost and supporting the innovative Canadian firms and jobs in this sector. This is an important component of Canada’s plan to build domestic resilience and improve long-term pandemic preparedness proposed in Chapter 1, providing a combined $2.2 billion over seven years.
  • $8 billion over seven years for the Net Zero Accelerator to support projects that will help reduce Canada’s greenhouse gas emissions by expediting decarbonization projects, scaling-up clean technology, and accelerating Canada’s industrial transformation. More details are in Chapter 5.

Renewing the Pan-Canadian Artificial Intelligence Strategy

Artificial intelligence is one of the greatest technological transformations of our age. Canada has communities of research, homegrown talent, and a diverse ecosystem of start-ups and scale-ups. But these Canadian innovators need investment in order to ensure our economy takes advantage of the enormous growth opportunities ahead in this sector. By leveraging our position of strength, we can also ensure that Canadian values are embedded across widely used, global platforms.

  • Budget 2021 proposes to provide up to $443.8 million over ten years, starting in 2021-22, in support of the Pan-Canadian Artificial Intelligence Strategy, including:
  • $185 million over five years, starting in 2021-22, to support the commercialization of artificial intelligence innovations and research in Canada.
  • $162.2 million over ten years, starting in 2021-22, to help retain and attract top academic talent across Canada—including in Alberta, British Columbia, Ontario, and Quebec. This programming will be delivered by the Canadian Institute for Advanced Research.
  • $48 million over five years, starting in 2021-22, for the Canadian Institute for Advanced Research to renew and enhance its research, training, and knowledge mobilization programs.
  • $40 million over five years, starting in 2022-23, to provide dedicated computing capacity for researchers at the national artificial intelligence institutes in Edmonton, Toronto, and Montréal.
  • $8.6 million over five years, starting in 2021-22, to advance the development and adoption of standards related to artificial intelligence.

Launching a National Quantum Strategy

Quantum technology is at the very leading edge of science and innovation today, with enormous potential for commercialization. This emerging field will transform how we develop and design everything from life-saving drugs to next generation batteries, and Canadian scientists and entrepreneurs are well-positioned to take advantage of these opportunities. But they need investments to be competitive in this fast growing global market.

  • Budget 2021 proposes to provide $360 million over seven years, starting in 2021-22, to launch a National Quantum Strategy. The strategy will amplify Canada’s significant strength in quantum research; grow our quantum-ready technologies, companies, and talent; and solidify Canada’s global leadership in this area. This funding will also establish a secretariat at the Department of Innovation, Science and Economic Development to coordinate this work.

The government will provide further details on the rollout of the strategy in the coming months.

Revitalizing the Canadian Photonics Fabrication Centre

Canada is a world leader in photonics, the technology of generating and harnessing the power of light. This is the science behind fibre optics, advanced semi-conductors, and other cutting-edge technologies, and there is a strong history of Canadian companies bringing this expertise to the world. The National Research Council’s Canadian Photonics Fabrication Centre supplies photonics research, testing, prototyping, and pilot-scale manufacturing services to academics and large, small and medium-sized photonics businesses in Canada. But its aging facility puts this critical research and development at risk.

  • Budget 2021 proposes to provide $90 million over five years on a cash basis, starting in 2021-22, to the National Research Council to retool and modernize the Canadian Photonics Fabrication Centre. This would allow the centre to continue helping Canadian researchers and companies grow and support highly skilled jobs.

Launching a Pan-Canadian Genomics Strategy

Genomics research is developing cutting-edge therapeutics and is helping Canada track and fight COVID-19. Canada was an early mover in advancing genomics science and is now a global leader in the field. A national approach to support genomics research can lead to breakthroughs that have real world applications. There is an opportunity to improve Canadians’ health and well-being while also creating good jobs and economic growth. Leveraging and commercializing this advantage will give Canadian companies, researchers, and workers a competitive edge in this growing field.

  • Budget 2021 proposes to provide $400 million over six years, starting in 2021-22, in support of a Pan-Canadian Genomics Strategy. This funding would provide $136.7 million over five years, starting in 2022-23, for mission-driven programming delivered by Genome Canada to kick-start the new Strategy and complement the government’s existing genomics research and innovation programming.

Further investments to grow Canada’s strengths in genomics under the Strategy will be announced in the future.

Conducting Clinical Trials

Canadian scientists are among the best in the world at conducting high-quality clinical trials. Clinical trials lead to the development of new scientifically proven treatments and cures, and improved health outcomes for Canadians. They also create good jobs in the health research sector, including the pharmaceutical sector, and support the creation of new companies, drugs, medical devices, and other health products.

  • Budget 2021 proposes to provide $250 million over three years, starting in 2021-22, to the Canadian Institutes of Health Research to implement a new Clinical Trials Fund.

Supporting the Innovation Superclusters Initiative

Since it was launched in 2017, the Innovation Superclusters Initiative has helped Canada build successful innovation ecosystems in important areas of the economy. Drawing on the strength and breadth of their networks, the superclusters were able to quickly pivot their operations and played an important role in Canada’s COVID-19 response. For example, the Digital Technology Supercluster allocated resources to projects that used digital technologies and artificial intelligence to help facilitate faster, more accurate diagnosis, treatment, and care of COVID-19 patients.

To help ensure those superclusters that made emergency investments to support Canada’s COVID-19 response and others can continue supporting innovative Canadian projects:

  • Budget 2021 proposes to provide $60 million over two years, starting in 2021-22, to the Innovation Superclusters Initiative.

Promoting Canadian Intellectual Property

As the most highly educated country in the OECD, Canada is full of innovative and entrepreneurial people with great ideas. Those ideas are valuable intellectual property that are the seeds of huge growth opportunities. Building on the National Intellectual Property Strategy announced in Budget 2018, the government proposes to further support Canadian innovators, start-ups, and technology-intensive businesses. Budget 2021 proposes:

  • $90 million, over two years, starting in 2022-23, to create ElevateIP, a program to help accelerators and incubators provide start-ups with access to expert intellectual property services.
  • $75 million over three years, starting in 2021-22, for the National Research Council’s Industrial Research Assistance Program to provide high-growth client firms with access to expert intellectual property services.

These direct investments would be complemented by a Strategic Intellectual Property Program Review that will be launched. It is intended as a broad assessment of intellectual property provisions in Canada’s innovation and science programming, from basic research to near-commercial projects. This work will make sure Canada and Canadians fully benefit from innovations and intellectual property.

Capitalizing on Space-based Earth Observation

Earth observation satellites support critical services that Canadians rely on. They provide reliable weather forecasts, support military and transport logistics, help us monitor and fight climate change, and support innovation across sectors, including energy and agriculture. They also create high-quality jobs in Canada and the government will continue to explore opportunities to support Canadian capacity, innovation, and jobs in this sector. To maintain Canada’s capacity to collect and use important data from these satellites, Budget 2021 proposes to provide:

  • $80.2 million over eleven years, starting in 2021-22, with $14.9 million in remaining amortization and $6.2 million per year ongoing, to Natural Resources Canada and Environment and Climate Change Canada to replace and expand critical but aging ground-based infrastructure to receive satellite data.
  • $9.9 million over two years, starting in 2021-22, to the Canadian Space Agency to plan for the next generation of Earth observation satellites.

Science and Technology Collaboration with Israeli Firms

Collaborating with global innovation leaders allows Canadian companies to leverage expertise to create new products and services, support good jobs, and reach new export markets.

  • Budget 2021 proposes to provide additional funding of $10 million over five years, starting in 2021-2022, and $2 million per year ongoing, to expand opportunities for Canadian SMEs to engage in research and development partnerships with Israeli SMEs as part of the Canadian International Innovation Program. This will be sourced from existing Global Affairs Canada resources. The government also intends to implement an enhanced delivery model for this program, including possible legislation.

4.7 Supporting a Digital Economy

More and more of our lives are happening online—from socializing, to our jobs, to commerce. Recognizing the fundamental shifts underway in our society, the government introduced a new Digital Charter in 2020 that seeks to better protect the privacy, security, and personal data of Canadians, building trust and confidence in the digital economy.

To make sure that Canadian businesses can keep pace with this digital transformation and that they are part of this growth, Budget 2021 includes measures to ensure businesses and workers in every region of the country have access to fast, reliable internet. It also has measures to make sure that the digital economy is fair and well reported on.

A digital economy that serves and protects Canadians and Canadian businesses is vital for long-term growth.

Accelerating Broadband for Everyone

The COVID-19 pandemic has shifted much of our lives online and transformed how we live, work, learn, and do business. This makes it more important than ever that Canadians, including Canadian small businesses in every corner of this country, have access to fast and reliable high-speed internet. Canadians and Canadian businesses in many rural and remote communities who still do not have access to high-speed internet face a barrier to equal participation in the economy. Building on the $6.2 billion the federal government and federal agencies have made available for universal broadband since 2015:

  • Budget 2021 proposes to provide an additional $1 billion over six years, starting in 2021-22, to the Universal Broadband Fund to support a more rapid rollout of broadband projects in collaboration with provinces and territories and other partners. This would mean thousands more Canadians and small businesses will have faster, more reliable internet connections.

In total, including proposed Budget 2021 funding, $2.75 billion will be made available through the Universal Broadband Fund to support Canadians in rural and remote communities. Recently, the Universal Broadband Fund provided funding to ensure Quebec could launch Operation High Speed, connecting nearly 150,000 Quebecers to high-speed internet. These continuing investments will help Canada accelerate work to reach its goal of 98 per cent of the country having high-speed broadband by 2026 and 100 per cent by 2030.

Establishing a New Data Commissioner

Digital and data-driven technologies open up new markets for products and services that allow innovative Canadians to create new business opportunities—and high-value jobs. But as the digital and data economy grows, Canadians must be able to trust that their data are protected and being used responsibly.

  • Budget 2021 proposes to provide $17.6 million over five years, starting in 2021-22, and $3.4 million per year ongoing, to create a Data Commissioner. The Data Commissioner would inform government and business approaches to data-driven issues to help protect people’s personal data and to encourage innovation in the digital marketplace.
  • Budget 2021 also proposes to provide $8.4 million over five years, starting in 2021-22, and $2.3 million ongoing, to the Standards Council of Canada to continue its work to advance industry-wide data governance standards.

A full list of science funding highlights from the 2021 federal budget

If you don’t have the time or patience to comb through the budget for all of the science funding announcements, you can find an excellent list in an April 19, 2021posting on Evidence for Democracy (Note: Links have been removed; h/t Science Media Centre of Canada newsletter),

Previously, we saw a landmark budget for science in 2018, which made historic investments in fundamental research totaling more than $1.7 billion. This was followed by additional commitments in 2019 that included expanded support for research trainees and access to post-secondary education. While no federal budget was tabled in 2020, there have been ongoing investments in Canadian science throughout the pandemic.

Budget 2021 attempts to balance the pressing challenges of the pandemic with a long-term view towards recovery and growth. We are pleased to see strategic investments across the Canadian science ecosystem, including targeted research funding in artificial intelligence, quantum technologies, and bioinnovation. There is also a focus on climate action, which outlines a $17.6 billion investment towards green recovery and conservation. There are also noteworthy investments in research and development partnerships, and data capacity. Beyond research, Budget 2021 includes investments in childcare, mental health, Indigenous communities, post-secondary education, and support for gender-based and Black-led initiatives.

We note that this budget does not include significant increases to the federal granting agencies, or legislation to safeguard the Office of the Chief Science Advisor.

Below, we highlight key research-related investments in Budget 2021.

The list is here in the April 19, 2021posting.

Is it magic or how does the federal budget get developed?

I believe most of the priorities are set by power players behind the scenes. We glimpsed some of the dynamics courtesy of the WE Charity scandal 2020/21 and the SNC-Lavalin scandal in 2019.

Access to special meetings and encounters are not likely to be given to any member of the ‘great unwashed’ but we do get to see the briefs that are submitted in anticipation of a new budget. These briefs and meetings with witnesses are available on the Parliament of Canada website (Standing Committee on Finance (FINA) webpage for pre-budget consultations.

For the 2021 federal budget, there are 792 briefs and transcripts of meeting with 52 witnesses. Whoever designed the page decided to make looking at more than one or two briefs onerous. Just click on a brief that interests you and try to get back to the list.

National Quantum Strategy

There is a search function but ‘quantum’ finds only Xanadu Quantum Technologies (more about their brief in a minute) and not D-Wave Systems, which is arguably a more important player in the field. Regardless, both companies presented briefs although the one from Xanadu was of the most interest as it seems to be recommending a national strategy without actually using the term (from the Xanadu Quantum Technologies budget 2021 brief),

Recommendation 1: Quantum Advisory Board

The world is at the beginning of the second Quantum Revolution, which will result in the development and deployment of revolutionary quantum technologies, based upon the scientific discoveries of the past century. Major economies of the world, including the USA, China, Japan, EU, UK and South Korea, have all identified quantum technologies as strategically important, and have adopted national strategies or frameworks. Many of them have dedicated billions of dollars of funding to quantum technology R&D and commercialization. We urge the government to create a Quantum Advisory Board or Task Force, to ensure a coherent national strategy which involves all areas of government:research, education, industry, trade, digital government, transportation, health, defence,etc.

Recommendation 2: Continue Supporting Existing Research Centres

Canada has a long history of nurturing world-class academic research in quantum science at our universities. The CFREF [Canada First Research Excellence Fund {CFREF}] program was a welcome catalyst which solidified the international stature of the quantum research programs at UBC [University of British Columbia], Waterloo [University of Waterloo; Ontario] and Sherbrooke [University of Sherbrooke; Québec]. Many of our highly qualified team members have graduated from these programs and other Canadian universities. We urge the government to continue funding these research centers past the expiration of the CFREF program, to ensure the scientific critical mass is not dissipated, and the highly sought-after talent is not pulled away to other centers around the world.

Recommendation 3: National Quantum Computing Access Centre

Our Canadian competitor, D-Wave Systems, was started in Canada nearly 20 years ago,and has yet to make significant sales or build a strong user base within Canada. At Xanadu we also find that the most ready customers for our computers are researchers in the USA,rather than in Canada, despite the strong interest from many individual professors we speak with at a number of Canadian universities. We urge the government to create a National Quantum Computing Access Centre, through Compute Canada or another similar national organization, which can centralize and coordinate the provision of quantum computing access for the Canadian academic research community. Without access to these new machines, Canadian researchers will lose their ability to innovate new algorithms and applications of this groundbreaking technology. It will be impossible to train the future workforce of quantum programmers, without access to the machines like those of D-Wave and Xanadu.

Recommendation 4: National Quantum Technology Roundtable

Traditional, resource-based Canadian industries are not historically known for the ir innovative adoption of new technology, and the government has created many programs to encourage digitalization of manufacturing and resource industries, and also newer,cleaner technology adoption in the energy and other heavy industries. Quantum technologies in computing, communications and sensing have the potential to make exponential improvements in many industries, including: chemicals, materials, logistics,transportation, electricity grids, transit systems, wireless networks, financial portfolio analysis and optimization, remote sensing, exploration, border security, and improved communication security. We urge the government to convene national roundtable discussions, perhaps led by the NRC, to bring together the Canadian researchers and companies developing these new technologies, along with the traditional industries and government bodies of Canada who stand to benefit from adopting them, for mutual education and information sharing, roadmapping, benchmarking and strategic planning.

Recommendation 5: New Quantum Computing Institute in Toronto

The University of Toronto is the leading research institution in Canada, and one of the top research universities in the world. Many world-class scientists in quantum physics,chemistry, computer science, and electrical engineering are currently part of the Centre for Quantum Information and Quantum Control (CQIQC) at the university [University of Toronto]. British Columbia has recently announced the creation of a new institute dedicated to the study of Quantum Algorithms, and we encourage the government to build upon the existing strengths of the quantum research programs at the CQIQC, through the funding of a new,world-class research institute, focussed on quantum computing. Such an institute will leverage not only the existing quantum expertise, but also the world-class artificial intelligence and machine learning research communities in the city. The tech industry in Toronto is also the fastest growing in North America, hiring more than San Francisco or Boston. We request the government fund the establishment of a new quantum computing institute built on Toronto’s 3 pillars of quantum research, artificial intelligence, and a thriving tech industry, to create a center of excellence with global impact.

Recommendation 6: Dedicated BDC [Business Development Bank of Canada] Quantum Venture Fund

Although there is no major international firm developing and selling quantum-based technology from Canada, a number of the world’s most promising start-ups are based here. Xanadu and our peer firms are now actively shaping our business models; refining our products and services; undertaking research and development; and developing networks of customers.To date, Canadian firms like Xanadu have been successful at raising risk capital from primarily domestic funds like BDC, OMERS, Georgian Partners and Real Ventures,without having to leave the country. In order to ensure a strong “Quantum Startup”ecosystem in Canada, we request that the BDC be mandated to establish a specialist quantum technology venture capital fund. Such a fund will help ensure the ongoing creation of a whole cluster of Canadian startups in all areas of Quantum Technology, and help to keep the technologies and talent coming from our research universities within the country.

Christian Weedbrook, Xanadu Chief Executive Officer, has taken the time to dismiss his chief competitor and managed to ignore the University of Calgary in his Canadian quantum future. (See my September 21, 2016 posting “Teleporting photons in Calgary (Canada) is a step towards a quantum internet,” where that team set a record for distance.)

The D-Wave Systems budget 2021 brief does have some overlapping interests but is largely standalone and more focused on business initiatives and on the US. Both briefs mention the Quantum Algorithms Institute (QAI), which is being established at Simon Fraser University (SFU) with an investment from the government of British Columbia (see this Oct. 2, 2019 SFU press release).

Where Weedbrook is passionately Canadian and signed the Xanadu brief himself, the D-Wave brief is impersonal and anonymous.

Pan-Canadian Genomics Strategy

The Genome Canada brief doesn’t mention a pan-Canadian strategy,

List of Recommendations:

•Recommendation 1: That the government invest in mission-driven research —with line-of-sight to application —to mobilize genomics to drive Canada’s recovery in key sectors.

•Recommendation 2: That the government invest in a national genomics data strategy to drive data generation, analysis, standards, tools, access and usage to derive maximum value and impact from Canada’s genomics data assets.

•Recommendation 3: That the government invest in training of the next generation of genomics researchers, innovators and entrepreneurs to support the development of a genomics-enabled Canadian bioeconomy.

•Recommendation 4: That the government invest in long-term and predictable research and research infrastructure through the federal granting agencies and the Canada Foundation forInnovation to ensure a strong and vibrant knowledge base for recovery.

It’s not an exciting start but if you continue you’ll find a well written and compelling brief.

A happy April 19, 2021 GenomeCanada news release provides an overview of how this affects the Canadian life sciences research effort,

“The federal government announced $400 million for a new Pan-Canadian Genomics Strategy, including $136.7 million for Genome Canada to kickstart the Strategy, with further investments to be announced in the future. The budget recognized the key role genomics plays in developing cutting-edge therapeutics and in helping Canada track and fight COVID-19. It recognizes that Canada is a global leader in the field and that genomics can improve Canadians’ health and wellbeing while also creating good jobs and economic growth. Leveraging and commercializing this advantage will give Canadian companies, researchers, and workers a competitive edge in this growing field.

… Today’s announcement included excellent news for Canada’s long-term sustainable economic growth in biomanufacturing and the life sciences, with a total of $2.2 billion over seven years going toward growing life sciences, building up Canada’s talent pipeline and research systems, and supporting life sciences organizations.
 
Genome Canada welcomes other investments that will strengthen Canada’s research, innovation and talent ecosystem and drive economic growth in sectors of the future, including:

  • $500 million over four years, starting in 2021-22, for the Canada Foundation for Innovation to support the bio-science capital and infrastructure needs of post-secondary institutions and research hospitals;
  • $250 million over four years, starting in 2021-22, for the federal research granting councils to create a new tri-council biomedical research fund;
  • $250 million over three years, starting in 2021-22, to the Canadian Institutes of Health Research to implement a new Clinical Trials Fund;
  • $92 million over four years, starting in 2021-22, for adMare to support company creation, scale up, and training activities in the life sciences sector;
  • $59.2 million over three years, starting in 2021-22, for the Vaccine and Infectious Disease Organization to support the development of its vaccine candidates and expand its facility in Saskatoon;
  • $45 million over three years, starting in 2022-23, to the Stem Cell Network to support stem cell and regenerative medicine research; and
  • $708 million over five years, starting in 2021-22, to Mitacs to create at least 85,000 work-integrated learning placements that provide on-the-job learning and provide businesses with support to develop talent and grow.

The visionary support announced in Budget 2021 puts Canada on competitive footing with other G7 nations that have made major investments in research and innovation to drive high-value growth sectors, while placing bio-innovation at the heart of their COVID-19 recoveries. Genome Canada looks forward to leading the new Pan-Canadian Genomics Strategy and to working with Innovation, Science and Economic Development Canada and other partners on the strategic investments announced today.   

“To solve complex global problems, such as a worldwide pandemic and climate change, we need transdisciplinary approaches. The life sciences will play significant roles within such an approach. The funding announced today will be instrumental in driving Genome Canada’s mission to be Canada’s genomics platform for future pandemic preparedness, its capacity for biomanufacturing, and its bio-economy overall.”

– Dr. Rob Annan, President and CEO, Genome Canada

Canadian business innovation, science, and innovation—oxymoron?

Navdeep Bains was Canada’s Minister of Innovation, Science and Industry (2015-January 12, 2021) and he had a few things to say as he stepped away (from an April 16, 2021 article by Kevin Carmichael for PostMedia on the SaltWire; Atlantic Canada website),

Navdeep Bains earlier this spring [2021] spoke to me about his tenure as industry minister, which inevitably led to questions about Canada’s eroding competitiveness. He said that he thought he’d done a pretty good job of creating the conditions for a more innovative economy. But the corporate elite? Not so much.

“The ball is back in business’s court,” Bains said. “Frankly, if businesses don’t do this, I think in the long run they will struggle. They have to start changing their behaviour significantly.”

How’s that for a parting shot?

Bains wasn’t the first Canadian policy-maker to get frustrated by Corporate Canada’s aversion to risky bets on research and cutting-edge technology [emphasis mine]. But it’s been a long time since anyone in Ottawa tried to coax them to keep up with the times by dangling big sacks of cash in their faces. All they had to do was demonstrate some ambition and be willing to complement the federal government’s contribution with an investment of their own.

“He [Bains] was a great cheerleader,” said Mike Wessinger, chief executive of PointClickCare Technologies Inc., a Mississauga-based developer of software that helps long-term care homes manage data. “He would always proactively reach out. It was great that he cared.”

It’s easy to dismiss the importance of cheerleading. Canada’s digitally native companies were struggling to be taken seriously in Ottawa a decade ago. Former prime minister Stephen Harper pitched in with the Obama administration to save General Motors Co. and Chrysler Group LLC in 2009, but he let Nortel Networks Corp. fail. The technology industry needed a champion, and it found one in Bains.

Bains argued that his programs [legacy assessment] deserve more time. Industrial policy was still derided when he took over the industry department. It’s now mainstream. For now, that’s his legacy. It’s up to his former colleagues to write the final chapter.

I haven’t seen any OECD (Organization for Economic Cooperation and Development) figures recently but Canada’s industrial R&D (research development) has been on a downward slide for several years compared to many ‘developed’ countries.

A few final comments

I am intrigued by the inclusion of science and technology collaboration with Israeli firms (through the Canadian International Innovation Program) in the 2021 budget. It’s the only country to be specifically identified in this budget’s science funding announcements.

In fact, I can’t recall seeing any other budget of the last 10 years or so with mention of a specific country as a focus for Canadian science and technology collaboration. Perhaps Israeli companies are especially focused on industrial R&D and risk taking and they hope some of that will rub off on Canadians?

For anyone who might be curious as to the name difference between the new Pan-Canadian Genomic Strategy and the National Quantum Strategy, it may be due to the maturity (age) associated with the research field and its business efforts.

GenomeCanada (a Canadian government-funded not-for-profit agency founded in 2000) and its regional centres are the outcome of some national strategizing in the 1990s, from the GenomeCanada 20th anniversary webpage,

In the 1990s, the Human Genome Project captivates the world. But Canada doesn’t have a coordinated national approach. A group of determined Canadian scientists convinces the federal government to make a bold investment in genomics to ensure Canada doesn’t miss out on the benefits of this breakthrough science. Genome Canada is established on February 8, 2000.

While the folks in the quantum world are more obviously competitive (if the two briefs are indicative), there is the Quantum Industry Canada consortium, which was announced on October 6, 2020 on the Cision website,

Industry Association will accelerate the commercialization of Canada’s quantum sector – a $142.4B opportunity for Canadians.

TORONTO, Oct. 6, 2020 /CNW/ – A consortium of Canada’s leading quantum technology companies announced today that they are launching Quantum Industry Canada (QIC), an industry association with a mission to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity.

The twenty-four founding members represent Canada’s most commercial-ready quantum technologies, covering applications in quantum computing, quantum sensing, quantum communications, and quantum-safe cryptography.

It’s quite possible this National Quantum Strategy will result in a national not-for-profit agency and, eventually, a pan-Canadian strategy of its own. My impression is that competition in the life sciences research and business concerns is just as intense as in the quantum research and business concerns; the difference (as suggested earlier) lies in the maturity of, as well as, cultural differences between the communities.

If you have the time, the briefs offer an fascinating albeit truncated view into the machinations behind a federal budget: Parliament of Canada website (Standing Committee on Finance; FINA) webpage for pre-budget consultations.

The inclusion of a section on intellectual property in the budget could seem peculiar. I would have thought that years ago before I learned that governments measure and compare with other government the success of their science and technology efforts by the number of patents that have been filed. There are other measures but intellectual property is very important, as far as governments are concerned. My “Billions lost to patent trolls; US White House asks for comments on intellectual property (IP) enforcement; and more on IP” June 28, 2012 posting points to some of the shortcomings, with which we still grapple.

To finally finish this off, Canadian Science Policy Centre has a call for 2021 Budget Editorial Call. (600-800 words)

ETA May 6, 2021: Ooops! This is the end: The Canadian Science Policy Centre has posted recordings of their 2021 federal budget symposium here (according to a May 6, 2021 announcement received via email).

ETA May 19, 2021: Well … here’s one more thing. If you’re interested in how basic funding for the sciences fared, check out Jim R. Woodgett’s May 8, 2021 posting on the Piece of Mind blog.