Tag Archives: Stem Cell Network

Gene editing and personalized medicine: Canada

Back in the fall of 2018 I came across one of those overexcited pieces about personalized medicine and gene editing tha are out there. This one came from an unexpected source, an author who is a “PhD Scientist in Medical Science (Blood and Vasculature” (from Rick Gierczak’s LinkedIn profile).

It starts our promisingly enough although I’m beginning to dread the use of the word ‘precise’  where medicine is concerned, (from a September 17, 2018 posting on the Science Borealis blog by Rick Gierczak (Note: Links have been removed),

CRISPR-Cas9 technology was accidentally discovered in the 1980s when scientists were researching how bacteria defend themselves against viral infection. While studying bacterial DNA called clustered regularly interspaced short palindromic repeats (CRISPR), they identified additional CRISPR-associated (Cas) protein molecules. Together, CRISPR and one of those protein molecules, termed Cas9, can locate and cut precise regions of bacterial DNA. By 2012, researchers understood that the technology could be modified and used more generally to edit the DNA of any plant or animal. In 2015, the American Association for the Advancement of Science chose CRISPR-Cas9 as science’s “Breakthrough of the Year”.

Today, CRISPR-Cas9 is a powerful and precise gene-editing tool [emphasis mine] made of two molecules: a protein that cuts DNA (Cas9) and a custom-made length of RNA that works like a GPS for locating the exact spot that needs to be edited (CRISPR). Once inside the target cell nucleus, these two molecules begin editing the DNA. After the desired changes are made, they use a repair mechanism to stitch the new DNA into place. Cas9 never changes, but the CRISPR molecule must be tailored for each new target — a relatively easy process in the lab. However, it’s not perfect, and occasionally the wrong DNA is altered [emphasis mine].

Note that Gierczak makes a point of mentioning that CRISPR/Cas9 is “not perfect.” And then, he gets excited (Note: Links have been removed),

CRISPR-Cas9 has the potential to treat serious human diseases, many of which are caused by a single “letter” mutation in the genetic code (A, C, T, or G) that could be corrected by precise editing. [emphasis mine] Some companies are taking notice of the technology. A case in point is CRISPR Therapeutics, which recently developed a treatment for sickle cell disease, a blood disorder that causes a decrease in oxygen transport in the body. The therapy targets a special gene called fetal hemoglobin that’s switched off a few months after birth. Treatment involves removing stem cells from the patient’s bone marrow and editing the gene to turn it back on using CRISPR-Cas9. These new stem cells are returned to the patient ready to produce normal red blood cells. In this case, the risk of error is eliminated because the new cells are screened for the correct edit before use.

The breakthroughs shown by companies like CRISPR Therapeutics are evidence that personalized medicine has arrived. [emphasis mine] However, these discoveries will require government regulatory approval from the countries where the treatment is going to be used. In the US, the Food and Drug Administration (FDA) has developed new regulations allowing somatic (i.e., non-germ) cell editing and clinical trials to proceed. [emphasis mine]

The potential treatment for sickle cell disease is exciting but Gierczak offers no evidence that this treatment or any unnamed others constitute proof that “personalized medicine has arrived.” In fact, Goldman Sachs, a US-based investment bank, makes the case that it never will .

Cost/benefit analysis

Edward Abrahams, president of the Personalized Medicine Coalition (US-based), advocates for personalized medicine while noting in passing, market forces as represented by Goldman Sachs in his May 23, 2018 piece for statnews.com (Note: A link has been removed),

One of every four new drugs approved by the Food and Drug Administration over the last four years was designed to become a personalized (or “targeted”) therapy that zeros in on the subset of patients likely to respond positively to it. That’s a sea change from the way drugs were developed and marketed 10 years ago.

Some of these new treatments have extraordinarily high list prices. But focusing solely on the cost of these therapies rather than on the value they provide threatens the future of personalized medicine.

… most policymakers are not asking the right questions about the benefits of these treatments for patients and society. Influenced by cost concerns, they assume that prices for personalized tests and treatments cannot be justified even if they make the health system more efficient and effective by delivering superior, longer-lasting clinical outcomes and increasing the percentage of patients who benefit from prescribed treatments.

Goldman Sachs, for example, issued a report titled “The Genome Revolution.” It argues that while “genome medicine” offers “tremendous value for patients and society,” curing patients may not be “a sustainable business model.” [emphasis mine] The analysis underlines that the health system is not set up to reap the benefits of new scientific discoveries and technologies. Just as we are on the precipice of an era in which gene therapies, gene-editing, and immunotherapies promise to address the root causes of disease, Goldman Sachs says that these therapies have a “very different outlook with regard to recurring revenue versus chronic therapies.”

Let’s just chew on this one (contemplate)  for a minute”curing patients may not be ‘sustainable business model’!”

Coming down to earth: policy

While I find Gierczak to be over-enthused, he, like Abrahams, emphasizes the importance of new policy, in his case, the focus is Canadian policy. From Gierczak’s September 17, 2018 posting (Note: Links have been removed),

In Canada, companies need approval from Health Canada. But a 2004 law called the Assisted Human Reproduction Act (AHR Act) states that it’s a criminal offence “to alter the genome of a human cell, or in vitroembryo, that is capable of being transmitted to descendants”. The Actis so broadly written that Canadian scientists are prohibited from using the CRISPR-Cas9 technology on even somatic cells. Today, Canada is one of the few countries in the world where treating a disease with CRISPR-Cas9 is a crime.

On the other hand, some countries provide little regulatory oversight for editing either germ or somatic cells. In China, a company often only needs to satisfy the requirements of the local hospital where the treatment is being performed. And, if germ-cell editing goes wrong, there is little recourse for the future generations affected.

The AHR Act was introduced to regulate the use of reproductive technologies like in vitrofertilization and research related to cloning human embryos during the 1980s and 1990s. Today, we live in a time when medical science, and its role in Canadian society, is rapidly changing. CRISPR-Cas9 is a powerful tool, and there are aspects of the technology that aren’t well understood and could potentially put patients at risk if we move ahead too quickly. But the potential benefits are significant. Updated legislation that acknowledges both the risks and current realities of genomic engineering [emphasis mine] would relieve the current obstacles and support a path toward the introduction of safe new therapies.

Criminal ban on human gene-editing of inheritable cells (in Canada)

I had no idea there was a criminal ban on the practice until reading this January 2017 editorial by Bartha Maria Knoppers, Rosario Isasi, Timothy Caulfield, Erika Kleiderman, Patrick Bedford, Judy Illes, Ubaka Ogbogu, Vardit Ravitsky, & Michael Rudnicki for (Nature) npj Regenerative Medicine (Note: Links have been removed),

Driven by the rapid evolution of gene editing technologies, international policy is examining which regulatory models can address the ensuing scientific, socio-ethical and legal challenges for regenerative and personalised medicine.1 Emerging gene editing technologies, including the CRISPR/Cas9 2015 scientific breakthrough,2 are powerful, relatively inexpensive, accurate, and broadly accessible research tools.3 Moreover, they are being utilised throughout the world in a wide range of research initiatives with a clear eye on potential clinical applications. Considering the implications of human gene editing for selection, modification and enhancement, it is time to re-examine policy in Canada relevant to these important advances in the history of medicine and science, and the legislative and regulatory frameworks that govern them. Given the potential human reproductive applications of these technologies, careful consideration of these possibilities, as well as ethical and regulatory scrutiny must be a priority.4

With the advent of human embryonic stem cell research in 1978, the birth of Dolly (the cloned sheep) in 1996 and the Raelian cloning hoax in 2003, the environment surrounding the enactment of Canada’s 2004 Assisted Human Reproduction Act (AHRA) was the result of a decade of polarised debate,5 fuelled by dystopian and utopian visions for future applications. Rightly or not, this led to the AHRA prohibition on a wide range of activities, including the creation of embryos (s. 5(1)(b)) or chimeras (s. 5(1)(i)) for research and in vitro and in vivo germ line alterations (s. 5(1)(f)). Sanctions range from a fine (up to $500,000) to imprisonment (up to 10 years) (s. 60 AHRA).

In Canada, the criminal ban on gene editing appears clear, the Act states that “No person shall knowingly […] alter the genome of a cell of a human being or in vitro embryo such that the alteration is capable of being transmitted to descendants;” [emphases mine] (s. 5(1)(f) AHRA). This approach is not shared worldwide as other countries such as the United Kingdom, take a more regulatory approach to gene editing research.1 Indeed, as noted by the Law Reform Commission of Canada in 1982, criminal law should be ‘an instrument of last resort’ used solely for “conduct which is culpable, seriously harmful, and generally conceived of as deserving of punishment”.6 A criminal ban is a suboptimal policy tool for science as it is inflexible, stifles public debate, and hinders responsiveness to the evolving nature of science and societal attitudes.7 In contrast, a moratorium such as the self-imposed research moratorium on human germ line editing called for by scientists in December 20158 can at least allow for a time limited pause. But like bans, they may offer the illusion of finality and safety while halting research required to move forward and validate innovation.

On October 1st, 2016, Health Canada issued a Notice of Intent to develop regulations under the AHRA but this effort is limited to safety and payment issues (i.e. gamete donation). Today, there is a need for Canada to revisit the laws and policies that address the ethical, legal and social implications of human gene editing. The goal of such a critical move in Canada’s scientific and legal history would be a discussion of the right of Canadians to benefit from the advancement of science and its applications as promulgated in article 27 of the Universal Declaration of Human Rights9 and article 15(b) of the International Covenant on Economic, Social and Cultural Rights,10 which Canada has signed and ratified. Such an approach would further ensure the freedom of scientific endeavour both as a principle of a liberal democracy and as a social good, while allowing Canada to be engaged with the international scientific community.

Even though it’s a bit old, I still recommend reading the open access editorial in full, if you have the time.

One last thing abut the paper, the acknowledgements,

Sponsored by Canada’s Stem Cell Network, the Centre of Genomics and Policy of McGill University convened a ‘think tank’ on the future of human gene editing in Canada with legal and ethics experts as well as representatives and observers from government in Ottawa (August 31, 2016). The experts were Patrick Bedford, Janetta Bijl, Timothy Caulfield, Judy Illes, Rosario Isasi, Jonathan Kimmelman, Erika Kleiderman, Bartha Maria Knoppers, Eric Meslin, Cate Murray, Ubaka Ogbogu, Vardit Ravitsky, Michael Rudnicki, Stephen Strauss, Philip Welford, and Susan Zimmerman. The observers were Geneviève Dubois-Flynn, Danika Goosney, Peter Monette, Kyle Norrie, and Anthony Ridgway.

Competing interests

The authors declare no competing interests.

Both McGill and the Stem Cell Network pop up again. A November 8, 2017 article about the need for new Canadian gene-editing policies by Tom Blackwell for the National Post features some familiar names (Did someone have a budget for public relations and promotion?),

It’s one of the most exciting, and controversial, areas of health science today: new technology that can alter the genetic content of cells, potentially preventing inherited disease — or creating genetically enhanced humans.

But Canada is among the few countries in the world where working with the CRISPR gene-editing system on cells whose DNA can be passed down to future generations is a criminal offence, with penalties of up to 10 years in jail.

This week, one major science group announced it wants that changed, calling on the federal government to lift the prohibition and allow researchers to alter the genome of inheritable “germ” cells and embryos.

The potential of the technology is huge and the theoretical risks like eugenics or cloning are overplayed, argued a panel of the Stem Cell Network.

The step would be a “game-changer,” said Bartha Knoppers, a health-policy expert at McGill University, in a presentation to the annual Till & McCulloch Meetings of stem-cell and regenerative-medicine researchers [These meetings were originally known as the Stem Cell Network’s Annual General Meeting {AGM}]. [emphases mine]

“I’m completely against any modification of the human genome,” said the unidentified meeting attendee. “If you open this door, you won’t ever be able to close it again.”

If the ban is kept in place, however, Canadian scientists will fall further behind colleagues in other countries, say the experts behind the statement say; they argue possible abuses can be prevented with good ethical oversight.

“It’s a human-reproduction law, it was never meant to ban and slow down and restrict research,” said Vardit Ravitsky, a University of Montreal bioethicist who was part of the panel. “It’s a sort of historical accident … and now our hands are tied.”

There are fears, as well, that CRISPR could be used to create improved humans who are genetically programmed to have certain facial or other features, or that the editing could have harmful side effects. Regardless, none of it is happening in Canada, good or bad.

In fact, the Stem Cell Network panel is arguably skirting around the most contentious applications of the technology. It says it is asking the government merely to legalize research for its own sake on embryos and germ cells — those in eggs and sperm — not genetic editing of embryos used to actually get women pregnant.

The highlighted portions in the last two paragraphs of the excerpt were written one year prior to the claims by a Chinese scientist that he had run a clinical trial resulting in gene-edited twins, Lulu and Nana. (See my my November 28, 2018 posting for a comprehensive overview of the original furor). I have yet to publish a followup posting featuring the news that the CRISPR twins may have been ‘improved’ more extensively than originally realized. The initial reports about the twins focused on an illness-related reason (making them HIV ‘immune’) but made no mention of enhanced cognitive skills a side effect of eliminating the gene that would make them HIV ‘immune’. To date, the researcher has not made the bulk of his data available for an in-depth analysis to support his claim that he successfully gene-edited the twins. As well, there were apparently seven other pregnancies coming to term as part of the researcher’s clinical trial and there has been no news about those births.

Risk analysis innovation

Before moving onto the innovation of risk analysis, I want to focus a little more on at least one of the risks that gene-editing might present. Gierczak noted that CRISPR/Cas9 is “not perfect,” which acknowledges the truth but doesn’t convey all that much information.

While the terms ‘precision’ and ‘scissors’ are used frequently when describing the CRISPR technique, scientists actually mean that the technique is significantly ‘more precise’ than other techniques but they are not referencing an engineering level of precision. As for the ‘scissors’, it’s an analogy scientists like to use but in fact CRISPR is not as efficient and precise as a pair of scissors.

Michael Le Page in a July 16, 2018 article for New Scientist lays out some of the issues (Note: A link has been removed),

A study of CRIPSR suggests we shouldn’t rush into trying out CRISPR genome editing inside people’s bodies just yet. The technique can cause big deletions or rearrangements of DNA [emphasis mine], says Allan Bradley of the Wellcome Sanger Institute in the UK, meaning some therapies based on CRISPR may not be quite as safe as we thought.

The CRISPR genome editing technique is revolutionising biology, enabling us to create new varieties of plants and animals and develop treatments for a wide range of diseases.

The CRISPR Cas9 protein works by cutting the DNA of a cell in a specific place. When the cell repairs the damage, a few DNA letters get changed at this spot – an effect that can be exploited to disable genes.

At least, that’s how it is supposed to work. But in studies of mice and human cells, Bradley’s team has found that in around a fifth of cells, CRISPR causes deletions or rearrangements more than 100 DNA letters long. These surprising changes are sometimes thousands of letters long.

“I do believe the findings are robust,” says Gaetan Burgio of the Australian National University, an expert on CRISPR who has debunked previous studies questioning the method’s safety. “This is a well-performed study and fairly significant.”

I covered the Bradley paper and the concerns in a July 17, 2018 posting ‘The CRISPR ((clustered regularly interspaced short palindromic repeats)-CAS9 gene-editing technique may cause new genetic damage kerfuffle‘. (The ‘kerfufle’ was in reference to a report that the CRISPR market was affected by the publication of Bradley’s paper.)

Despite Health Canada not moving swiftly enough for some researchers, they have nonetheless managed to release an ‘outcome’ report about a consultation/analysis started in October 2016. Before getting to the consultation’s outcome, it’s interesting to look at how the consultation’s call for response was described (from Health Canada’s Toward a strengthened Assisted Human Reproduction Act ; A Consultation with Canadians on Key Policy Proposals webpage),

In October 2016, recognizing the need to strengthen the regulatory framework governing assisted human reproduction in Canada, Health Canada announced its intention to bring into force the dormant sections of the Assisted Human Reproduction Act  and to develop the necessary supporting regulations.

This consultation document provides an overview of the key policy proposals that will help inform the development of regulations to support bringing into force Section 10, Section 12 and Sections 45-58 of the Act. Specifically, the policy proposals describe the Department’s position on the following:

Section 10: Safety of Donor Sperm and Ova

  • Scope and application
  • Regulated parties and their regulatory obligations
  • Processing requirements, including donor suitability assessment
  • Record-keeping and traceability

Section 12: Reimbursement

  • Expenditures that may be reimbursed
  • Process for reimbursement
  • Creation and maintenance of records

Sections 45-58: Administration and Enforcement

  • Scope of the administration and enforcement framework
  • Role of inspectors designated under the Act

The purpose of the document is to provide Canadians with an opportunity to review the policy proposals and to provide feedback [emphasis mine] prior to the Department finalizing policy decisions and developing the regulations. In addition to requesting stakeholders’ general feedback on the policy proposals, the Department is also seeking input on specific questions, which are included throughout the document.

It took me a while to find the relevant section (in particular, take note of ‘Federal Regulatory Oversight’),

3.2. AHR in Canada Today

Today, an increasing number of Canadians are turning to AHR technologies to grow or build their families. A 2012 Canadian studyFootnote 1 found that infertility is on the rise in Canada, with roughly 16% of heterosexual couples experiencing infertility. In addition to rising infertility, the trend of delaying marriage and parenthood, scientific advances in cryopreserving ova, and the increasing use of AHR by LGBTQ2 couples and single parents to build a family are all contributing to an increase in the use of AHR technologies.

The growing use of reproductive technologies by Canadians to help build their families underscores the need to strengthen the AHR Act. While the approach to regulating AHR varies from country to country, Health Canada has considered international best practices and the need for regulatory alignment when developing the proposed policies set out in this document. …

3.2.1 Federal Regulatory Oversight

Although the scope of the AHR Act was significantly reduced in 2012 and some of the remaining sections have not yet been brought into force, there are many important sections of the Act that are currently administered and enforced by Health Canada, as summarized generally below:

Section 5: Prohibited Scientific and Research Procedures
Section 5 prohibits certain types of scientific research and clinical procedures that are deemed unacceptable, including: human cloning, the creation of an embryo for non-reproductive purposes, maintaining an embryo outside the human body beyond the fourteenth day, sex selection for non-medical reasons, altering the genome in a way that could be transmitted to descendants, and creating a chimera or a hybrid. [emphasis mine]

….

It almost seems as if the they were hiding the section that broached the human gene-editing question. It doesn’t seem to have worked as it appears, there are some very motivated parties determined to reframe the discussion. Health Canada’s ‘outocme’ report, published March 2019, What we heard: A summary of scanning and consultations on what’s next for health product regulation reflects the success of those efforts,

1.0 Introduction and Context

Scientific and technological advances are accelerating the pace of innovation. These advances are increasingly leading to the development of health products that are better able to predict, define, treat, and even cure human diseases. Globally, many factors are driving regulators to think about how to enable health innovation. To this end, Health Canada has been expanding beyond existing partnerships and engaging both domestically and internationally. This expanding landscape of products and services comes with a range of new challenges and opportunities.

In keeping up to date with emerging technologies and working collaboratively through strategic partnerships, Health Canada seeks to position itself as a regulator at the forefront of health innovation. Following the targeted sectoral review of the Health and Biosciences Sector Regulatory Review consultation by the Treasury Board Secretariat, Health Canada held a number of targeted meetings with a broad range of stakeholders.

This report outlines the methodologies used to look ahead at the emerging health technology environment, [emphasis mine] the potential areas of focus that resulted, and the key findings from consultations.

… the Department identified the following key drivers that are expected to shape the future of health innovation:

  1. The use of “big data” to inform decision-making: Health systems are generating more data, and becoming reliant on this data. The increasing accuracy, types, and volume of data available in real time enable automation and machine learning that can forecast activity, behaviour, or trends to support decision-making.
  2. Greater demand for citizen agency: Canadians increasingly want and have access to more information, resources, options, and platforms to manage their own health (e.g., mobile apps, direct-to-consumer services, decentralization of care).
  3. Increased precision and personalization in health care delivery: Diagnostic tools and therapies are increasingly able to target individual patients with customized therapies (e.g., individual gene therapy).
  4. Increased product complexity: Increasingly complex products do not fit well within conventional product classifications and standards (e.g., 3D printing).
  5. Evolving methods for production and distribution: In some cases, manufacturers and supply chains are becoming more distributed, challenging the current framework governing production and distribution of health products.
  6. The ways in which evidence is collected and used are changing: The processes around new drug innovation, research and development, and designing clinical trials are evolving in ways that are more flexible and adaptive.

With these key drivers in mind, the Department selected the following six emerging technologies for further investigation to better understand how the health product space is evolving:

  1. Artificial intelligence, including activities such as machine learning, neural networks, natural language processing, and robotics.
  2. Advanced cell therapies, such as individualized cell therapies tailor-made to address specific patient needs.
  3. Big data, from sources such as sensors, genetic information, and social media that are increasingly used to inform patient and health care practitioner decisions.
  4. 3D printing of health products (e.g., implants, prosthetics, cells, tissues).
  5. New ways of delivering drugs that bring together different product lines and methods (e.g., nano-carriers, implantable devices).
  6. Gene editing, including individualized gene therapies that can assist in preventing and treating certain diseases.

Next, to test the drivers identified and further investigate emerging technologies, the Department consulted key organizations and thought leaders across the country with expertise in health innovation. To this end, Health Canada held seven workshops with over 140 representatives from industry associations, small-to-medium sized enterprises and start-ups, larger multinational companies, investors, researchers, and clinicians in Ottawa, Toronto, Montreal, and Vancouver. [emphases mine]

The ‘outocme’ report, ‘What we heard …’, is well worth reading in its entirety; it’s about 9 pp.

I have one comment, ‘stakeholders’ don’t seem to include anyone who isn’t “from industry associations, small-to-medium sized enterprises and start-ups, larger multinational companies, investors, researchers, and clinician” or from “Ottawa, Toronto, Montreal, and Vancouver.” Aren’t the rest of us stakeholders?

Innovating risk analysis

This line in the report caught my eye (from Health Canada’s Toward a strengthened Assisted Human Reproduction Act ; A Consultation with Canadians on Key Policy Proposals webpage),

There is increasing need to enable innovation in a flexible, risk-based way, with appropriate oversight to ensure safety, quality, and efficacy. [emphases mine]

It reminded me of the 2019 federal budget (from my March 22, 2019 posting). One comment before proceeding, regulation and risk are tightly linked and, so, by innovating regulation they are by exttension alos innovating risk analysis,

… Budget 2019 introduces the first three “Regulatory Roadmaps” to specifically address stakeholder issues and irritants in these sectors, informed by over 140 responses [emphasis mine] from businesses and Canadians across the country, as well as recommendations from the Economic Strategy Tables.

Introducing Regulatory Roadmaps

These Roadmaps lay out the Government’s plans to modernize regulatory frameworks, without compromising our strong health, safety, and environmental protections. They contain proposals for legislative and regulatory amendments as well as novel regulatory approaches to accommodate emerging technologies, including the use of regulatory sandboxes and pilot projects—better aligning our regulatory frameworks with industry realities.

Budget 2019 proposes the necessary funding and legislative revisions so that regulatory departments and agencies can move forward on the Roadmaps, including providing the Canadian Food Inspection Agency, Health Canada and Transport Canada with up to $219.1 million over five years, starting in 2019–20, (with $0.5 million in remaining amortization), and $3.1 million per year on an ongoing basis.

In the coming weeks, the Government will be releasing the full Regulatory Roadmaps for each of the reviews, as well as timelines for enacting specific initiatives, which can be grouped in the following three main areas:

What Is a Regulatory Sandbox? Regulatory sandboxes are controlled “safe spaces” in which innovative products, services, business models and delivery mechanisms can be tested without immediately being subject to all of the regulatory requirements.
– European Banking Authority, 2017

Establishing a regulatory sandbox for new and innovative medical products
The regulatory approval system has not kept up with new medical technologies and processes. Health Canada proposes to modernize regulations to put in place a regulatory sandbox for new and innovative products, such as tissues developed through 3D printing, artificial intelligence, and gene therapies targeted to specific individuals. [emphasis mine]

Modernizing the regulation of clinical trials
Industry and academics have expressed concerns that regulations related to clinical trials are overly prescriptive and inconsistent. Health Canada proposes to implement a risk-based approach [emphasis mine] to clinical trials to reduce costs to industry and academics by removing unnecessary requirements for low-risk drugs and trials. The regulations will also provide the agri-food industry with the ability to carry out clinical trials within Canada on products such as food for special dietary use and novel foods.

Does the government always get 140 responses from a consultation process? Moving on, I agree with finding new approaches to regulatory processes and oversight and, by extension, new approaches to risk analysis.

Earlier in this post, I asked if someone had a budget for public relations/promotion. I wasn’t joking. My March 22, 2019 posting also included these line items in the proposed 2019 budget,

Budget 2019 proposes to make additional investments in support of the following organizations:
Stem Cell Network: Stem cell research—pioneered by two Canadians in the 1960s [James Till and Ernest McCulloch]—holds great promise for new therapies and medical treatments for respiratory and heart diseases, spinal cord injury, cancer, and many other diseases and disorders. The Stem Cell Network is a national not-for-profit organization that helps translate stem cell research into clinical applications and commercial products. To support this important work and foster Canada’s leadership in stem cell research, Budget 2019 proposes to provide the Stem Cell Network with renewed funding of $18 million over three years, starting in 2019–20.

Genome Canada: The insights derived from genomics—the study of the entire genetic information of living things encoded in their DNA and related molecules and proteins—hold the potential for breakthroughs that can improve the lives of Canadians and drive innovation and economic growth. Genome Canada is a not-for-profit organization dedicated to advancing genomics science and technology in order to create economic and social benefits for Canadians. To support Genome Canada’s operations, Budget 2019 proposes to provide Genome Canada with $100.5 million over five years, starting in 2020–21. This investment will also enable Genome Canada to launch new large-scale research competitions and projects, in collaboration with external partners, ensuring that Canada’s research community continues to have access to the resources needed to make transformative scientific breakthroughs and translate these discoveries into real-world applications.

Years ago, I managed to find a webpage with all of the proposals various organizations were submitting to a government budget committee. It was eye-opening. You can tell which organizations were able to hire someone who knew the current government buzzwords and the things that a government bureaucrat would want to hear and the organizations that didn’t.

Of course, if the government of the day is adamantly against or uninterested, no amount of persusasion will work to get your organization more money in the budget.

Finally

Reluctantly, I am inclined to explore the topic of emerging technologies such as gene-editing not only in the field of agriculture (for gene-editing of plants, fish, and animals see my November 28, 2018 posting) but also with humans. At the very least, it needs to be discussed whether we choose to participate or not.

If you are interested in the arguments against changing Canada’s prohibition against gene-editing of humans, there’s an Ocotber 2, 2017 posting on Impact Ethics by Françoise Baylis, Professor and Canada Research Chair in Bioethics and Philosophy at Dalhousie University, and Alana Cattapan, Johnson Shoyama Graduate School of Public Policy at the University of Saskatchewan, which makes some compelling arguments. Of course, it was written before the CRISPR twins (my November 28, 2018 posting).

Recaliing CRISPR Therapeutics (mentioned by Gierczak), the company received permission to run clinical trials in the US in October 2018 after the FDA (US Food and Drug Administration) lifted an earlier ban on their trials according to an Oct. 10, 2018 article by Frank Vinhuan for exome,

The partners also noted that their therapy is making progress outside of the U.S. They announced that they have received regulatory clearance in “multiple countries” to begin tests of the experimental treatment in both sickle cell disease and beta thalassemia, …

It seems to me that the quotes around “multiple countries” are meant to suggest doubt of some kind. Generally speaking, company representatives make those kinds of generalizations when they’re trying to pump up their copy. E.g., 50% increase in attendance  but no whole numbers to tell you what that means. It could mean two people attended the first year and then brought a friend the next year or 100 people attended and the next year there were 150.

Despite attempts to declare personalized medicine as having arrived, I think everything is still in flux with no preordained outcome. The future has yet to be determined but it will be and I , for one, would like to have some say in the matter.

Science and the 2019 Canadian federal government budget

There’s been a lot of noise about how the 2019 Canadian federal government budget is designed to please the various constituencies that helped bring the Liberal party back into power in 2015 and which the Liberals are hoping will help re-elect them later in 2019. I don’t care about that, for me, it’s all about the science.

In general, it seems the budget excitement is a bit milder than usual and some of that possibly due to the SNC-Lavalin (a huge Canadian engineering and construction firm) scandal resulting in the loss of two cabinet ministers, Trudeau’s top personal/political advisor, and Canada’s top bureaucrat; a 3rd reshuffling of Trudeau’s cabinet in less than three months; and the kind of political theatrics from the Liberals, the Conservatives, and the NDP (New Democratic Party) that I associate more strongly with our neighbours to the south. .

(As for the SNC-Lavalin mess which includes allegations of political interference on behalf of a company accused of various offences, you might find this brief March 11, 2019 article by David Ljunggren for Reuters insightful as it reviews the response from abroad, specifically, the OECD [Organization for Economic Cooperation and Development. For anyone who wants an overview and timeline of the crisis, there’s this March 10, 2019 news item on Huffington Post Canada and, for context, there’s this March 10, 2019 video report (roughly 3 mins.) on SNC-Lavalin’s long history of corruption by Daniel Tencer for Huffington Post Canada. )

In any event, it’s a been a very busy first quarter for 2019 and the science funding portion of the budget holds a few rays of light but in the main, the science funding portion suggests the government is treading water (term to describe a swimmer who is keeping their head above water and staying in place while being vertical). As for the rest of the 2019 budget, I leave to experience political pundits.

Let’s start with the sections that gladdened my heart, just a little.

Rays of light

We’re in Chapter 2 of the 2019 federal budget, in Part 5: Building a Nation of Innovators; Bringing Innovation to Regulations, and I’m happy to see this, as I think it’s absolutely essential that we become more innovative with regulations when emerging technologies pose new challenges at an ever increasing pace (Note: The formatting has been changed),

Simply put, regulations are rules that stipulate how businesses must operate. When they are effective, they contribute to the protection of health, safety, security and the environment. They also support innovation, productivity and competition by establishing the rules for fair markets and a predictable environment for businesses, reducing barriers to trade and fostering new investment. While the OECD [Organization for Economic Cooperation and Development] Regulatory Policy Outlook (2018) has again ranked Canada in the top five jurisdictions on many key measures of regulatory governance, recent reports from panels convened to advise the Government, such as the Advisory Council on Economic Growth and the Economic Strategy Tables, have called for Canada to take steps to change how we design and administer regulations. The Government is responding.

In Budget 2018, the Government announced its intention to review regulatory requirements and practices that impede innovation and growth in the following high-growth sectors:

Agri-food and aquaculture.
Health and bio-sciences.
Transportation and infrastructure.

The 2018 Fall Economic Statement continued this work, proposing additional ways to reform and modernize federal regulations, with an emphasis on making it easier for businesses to grow while continuing to protect Canadians’ health and safety and the environment. As a next step, Budget 2019 introduces the first three “Regulatory Roadmaps” to specifically address stakeholder issues and irritants in these sectors, informed by over 140 responses from businesses and Canadians across the country, as well as recommendations from the Economic Strategy Tables.

Introducing Regulatory Roadmaps

These Roadmaps lay out the Government’s plans to modernize regulatory frameworks, without compromising our strong health, safety, and environmental protections. They contain proposals for legislative and regulatory amendments as well as novel regulatory approaches to accommodate emerging technologies, including the use of regulatory sandboxes and pilot projects—better aligning our regulatory frameworks with industry realities.

Budget 2019 proposes the necessary funding and legislative revisions so that regulatory departments and agencies can move forward on the Roadmaps, including providing the Canadian Food Inspection Agency, Health Canada and Transport Canada with up to $219.1 million over five years, starting in 2019–20, (with $0.5 million in remaining amortization), and $3.1 million per year on an ongoing basis.

In the coming weeks, the Government will be releasing the full Regulatory Roadmaps for each of the reviews, as well as timelines for enacting specific initiatives, which can be grouped in the following three main areas:

What Is a Regulatory Sandbox? Regulatory sandboxes are controlled “safe spaces” in which innovative products, services, business models and delivery mechanisms can be tested without immediately being subject to all of the regulatory requirements.
– European Banking Authority, 2017

1. Creating a user-friendly regulatory system:
The Roadmaps propose a more user-friendly regulatory system, including the use of more digital services (e.g. online portals, electronic templates), and clearer guidance for industry so that innovative and safe products are available for Canadians more quickly.

2. Using novel or experimental approaches:
The Roadmaps propose greater exploration, innovation, and the use of sandboxes and pilot programs for new and innovative products. This will allow these products to be approved for use in a risk-based and flexible way—encouraging ongoing innovation while continuing to protect Canadians’ health and safety, and the environment.

3. Facilitating greater cooperation and reducing duplication:
The Roadmaps propose greater alignment and coordination within the federal government and across Canadian and international jurisdictions.

Real Improvements for Business

Digitizing Canadian Food Inspection Agency services
The Canadian Food Inspection Agency currently relies on a paper-based system for issuing export certificates. As a result, Canadian exporters are required to submit forms by mail and wait for those forms to be returned prior to exporting their products. When Canadian firms are allowed to complete the application process online and have their reviewed forms returned electronically, Canadian business owners will be able to export their products more rapidly.

Updating the Canadian grains legislative and regulatory frameworks
The Canada Grain Act has not been substantially updated in decades, and its requirements are not aligned with current market realities. A broad-based review of the Act, and of the operations of the Canadian Grain Commission, will be undertaken to address a number of issues raised by the Canadian grain industry, including redundant inspections and issues within the current grain classification process that unnecessarily restrict Canadian grain exporters.

Establishing a regulatory sandbox for new and innovative medical products
The regulatory approval system has not kept up with new medical technologies and processes. Health Canada proposes to modernize regulations to put in place a regulatory sandbox for new and innovative products, such as tissues developed through 3D printing, artificial intelligence, and gene therapies targeted to specific individuals.

Modernizing the regulation of clinical trials
Industry and academics have expressed concerns that regulations related to clinical trials are overly prescriptive and inconsistent. Health Canada proposes to implement a risk-based approach to clinical trials to reduce costs to industry and academics by removing unnecessary requirements for low-risk drugs and trials. The regulations will also provide the agri-food industry with the ability to carry out clinical trials within Canada on products such as food for special dietary use and novel foods.

Enhancing the road safety transfer payment program
Road safety and transportation requirements vary among Canadian provinces and territories, creating barriers and inefficiencies for businesses that transport goods by road. Transport Canada will support provinces and territories in working towards improved alignment of these requirements, including for the use of autonomous and connected vehicles. Funding would be made available to other stakeholders, such as academia and industry associations, to identify innovative road safety options, including for emerging technologies.

Introducing a regulatory sandbox for dangerous goods electronic shipping documents
Currently, shipments of dangerous goods in Canada must be accompanied by paper documentation which can be burdensome and inefficient for businesses. Under this initiative, Transport Canada would work with industry, American counterparts and provincial/territorial jurisdictions to identify options for the sharing of shipping documents by electronic means, based on existing technologies.

Removing federal barriers to the interprovincial trade of alcohol
To facilitate internal trade, the Government intends to remove the federal requirement that alcohol moving from one province to another be sold or consigned to a provincial liquor authority. Provinces and territories would continue to be able to regulate the sale and distribution of alcohol within their boundaries.

To ensure that these Roadmaps can be implemented in a timely manner, Budget 2019 proposes to provide up to $67.8 million over five years, starting in 2019–20, for Justice Canada resources. These funds will strengthen the Government’s capacity to draft the legislative and regulatory changes needed to facilitate a new approach to regulations in these sectors and others.

Harmonizing Regulations
When regulations are more consistent between jurisdictions, Canadian companies are better able to trade within Canada and beyond, while also giving Canadian consumers greater choice. The Government is working with provinces and territories to better harmonize regulations across provincial and territorial boundaries, opening up the door to more seamless internal trade. Canada also has an opportunity to harmonize regulations with its international trading partners, making Canada an even more attractive place to invest in and grow a business. The Government does this through a number of regulatory cooperation bodies, for example, the Canadian Free Trade Agreement Regulatory Reconciliation and Cooperation Table, the Canada-U.S. Regulatory Cooperation Council and the Regulatory Cooperation Forum of the Canada-European Union Comprehensive Economic and Trade Agreement.  

Budget 2019 proposes to provide $3.1 million per year in ongoing funding to the Treasury Board Secretariat, starting in 2020–21, to support its leadership of the Government’s regulatory cooperation priorities at home and abroad.

Modernizing Regulations
In the 2018 Fall Economic Statement, the Government announced its plan to introduce an annual modernization bill consisting of legislative amendments to various statutes to help eliminate outdated federal regulations and better keep existing regulations up to date. In Budget 2019, the Government proposes to introduce legislation to begin this work. Work also continues to identify opportunities to make regulatory efficiency and economic growth a permanent part of regulators’ mandates, while continuing to prioritize health and safety and environmental responsibilities.

As part of these ongoing efforts, the President of Treasury Board will announce shortly the establishment of an External Advisory Committee on Regulatory Competitiveness, which will bring together business leaders, academics and consumer representatives from across the country, to help identify opportunities to streamline regulations and for novel regulatory approaches as well as to advise the Government on other sectors for consideration in the next round of regulatory reviews. 

Safe Food for Canadians Regulations
A recent regulatory modernization success is related to the coming into force of the new Safe Food for Canadians Regulations in January 2019.These modern regulations apply across all sectors and have introduced an outcomes-based approach to food safety regulations.

The other ‘ray of light’ concerns high speed internet access. Interestingly, some of the text about high speed access echoes faintly echoes descriptions of Estonia’s perspective on this issue. (Note: Canada’s Treasury Board signed a memorandum of understanding with Estonia in May 2018 as per this May 29, 2018 article by Silver Tambur for estonian world (how estonians see it),

Canada and Estonia have signed a memorandum of understanding on digital cooperation, aiming to work together on joint projects.

The new partnership was signed during the Estonian prime minister, Jüri Ratas’s, visit to Ottawa on 28 May [2018]. Welcomed by his Canadian counterpart, Justin Trudeau, Ratas became the first Estonian prime minister to make an official visit to Canada.

Both countries already share a membership of Digital 7 – a network of leading digital governments, currently comprising Canada, Estonia, Israel, New Zealand, South Korea, United Kingdom and Uruguay. The group is seeking to harness digital technology and improve digital services for the benefit of its citizens.[emphasis mine]

Under the new cooperation agreement between Canada and Estonia, both countries will work together on joint projects, the exchange of experts and other ways to share good practices as well as concrete digital solutions to advance these priorities.

Of course, there’s no point to improving digital services for citizens who do not have high speed internet or much of any kind of connectivity, as the Estonians must have realized fairly early on. This excerpt from an Estonian tourist website has a scrap of text that bears a resemblance to text in the Canadian 2019 budget (from the homepage of visit estonia),

“e-Estonia”, the E is for electronic, has become the go to tag to describe Estonia’s immensely successful love affair with all things networked and digitised.

Country wide enthusiasm for the efficiency of E has enthralled both citizens and policymakers alike. Estonian programmers have been behind the creation of digital brands such as Skype, Hotmail and more recently Transferwise (a online currency converter which has attracted investment from the likes of Richard Branson). Estonia has declared internet access a human right, [emphasis mine] it has a thriving IT start up culture and has digitally streamlined an unprecedented number of public services for citizens and businesses.

The roots of this revolution began in 1991, the year of Estonian independence, Estonian policy makers were given the rare gift of a bureaucratic clean slate. Placing their faith in the burgeoning possibilities of the internet and value of innovation, they steered the country into a position where it could leapfrog to become one of the most advanced e-societies in the world.

Now, here’s what the 2019 federal budget had to say bout connectivity in Canada (from Chapter 2; Part 3: Connecting Canadians), Note: Formatting has been changed),

Access to High-Speed Internet for All Canadians

In 2019, fast and reliable internet access is no longer a luxury—it’s a necessity. [emphasis mine]

For public institutions, entrepreneurs, and businesses of all sizes, quality high-speed internet is essential to participating in the digital economy—opening doors to customers who live just down the street or on the other side of the world. It is also important in the lives of Canadians. It lets students and young people do their homework, stay in touch with their friends, and apply for their very first jobs. It helps busy families register for recreational programs, shop online and pay their bills and access essential services. For many seniors, the internet is a way to stay up on current events and stay connected to distant family members and friends.

Canadians have a strong tradition of embracing new technologies, and using them to help generate long-term economic growth and drive social progress. In recent years, Canada and Canadian companies built mobile wireless networks that are among the fastest in the world and made investments that are delivering next-generation digital technologies and services to people and communities across the country. Yet, unfortunately, many Canadians still remain without reliable, high-speed internet access. In this time in the 21st Century, this is unacceptable.

How We Will Achieve a Fully Connected Canada

Delivering universal high-speed internet to every Canadian in the quickest and most cost-effective way will require a coordinated effort involving partners in the private sector and across all levels of government. To meet this commitment, Budget 2019 is proposing a new, coordinated plan that would deliver $5 billion to $6 billion in new investments in rural broadband over the next 10 years:

Support through the Accelerated Investment Incentive to encourage greater investments in rural high-speed internet from the private sector.
Greater coordination with provinces, territories, and federal arm’s-length institutions, such as the CRTC and its $750 million rural/remote broadband fund.
Securing advanced Low Earth Orbit satellite capacity to serve the most rural and remote regions of Canada.
New investments in the Connect to Innovate program and introduction of the Government’s new Universal Broadband Fund.
New investments by the Canada Infrastructure Bank to further leverage private sector investment.

Or, you could describe internet access as a human right. Whether you like it or not, it seems, short of a planetary disaster, internet access will be almost as important as food, water, and air.

This next ‘ray of light’ is a bit of a mixed bag, from Paul Wells’s March 19, 2019 article for Maclean’s,

… There’s $2.2 billion, refreshingly free of attached strings, in “much needed infrastructure funds” right now, this year.

Why infrastructure funds would still be “much needed,” four years into the tenure of the third prime minister in a row to make infrastructure spending a personal priority, is an interesting question for another day.

I’m hoping that at least some of this money is going to address the government’s digital infrastructure and I don’t understand any more than Paul Wells does as to why we’d still be talking about infrastructure. Stephen Harper’s Conservative government was in place for almost 10 years and Trudeau’s government for almost four years now (I don’t include Paul Martin’s government as that was fairly short lived) and with both of these prime ministers touting infrastructure, what’s taking so much time?

I hope some of this money is being dedicated to replacing the government’s dangerously aging digital infrastructure. I included some excerpts from an excellent article by James Bagnall on the state of the government’s digital infrastructure in my March 19, 2019 posting (scroll down about 15% of the way), which is a commentary on the Chief Science Advisor’s Office (CSO) 2018 annual report. Bagnall’s description is shocking and when I looked at the CSO’s 2018 report and saw that approximately 80% of the digital infrastructure for government science is conducted facilities that are between 50 and 25 years old with, presumably, similarly aged hardware and software, I couldn’t help but wonder when the Canadian government digital armageddon would occur.

I dug further into the 2019 budget and in Chapter Four, Part Six: Better Government found no mention of their digital infrastructure or of monies allocated to replacing any or all of the digital infrastructure. (sigh)

More happily, there was some reference to the Phoenix payroll system debacle and attempts to rectify the situation,

Ensuring Proper Payment for Public Servants

Canada’s public servants work hard in service of all Canadians and deserve to be paid properly and on time for their important work. The Phoenix pay system for federal public servants was originally intended to save money, however, since its launch it has resulted in unacceptable pay inaccuracies—resulting in hardships for public servants across the country. Serious issues and challenges with the pay system continue, and too many of Canada’s public servants are not being properly paid, or are waiting for their pay issues to be resolved.

To continue progress on stabilizing the current pay system, Budget 2019 provides an additional $21.7 million in 2018–19 to address urgent pay administration pressures (partially sourced from existing departmental funds), and proposes to invest an additional $523.3 million over five years, starting in 2019–20, to ensure that adequate resources are dedicated to addressing payroll errors. This investment will also support system improvements, to reduce the likelihood of errors occurring in the first place.

To ensure that the Canada Revenue Agency is able to quickly and accurately process income tax reassessments for federal government employees that are required due to Phoenix pay issues, and to support related telephone enquiries, Budget 2019 proposes to provide the Agency with an additional $9.2 million in 2019–20.

While the Phoenix pay system has been underpaying some public servants, it has also been paying others too much. Under current legislation, any employee who received an overpayment in a previous year is required to pay back the gross amount of this overpayment to their employer. The employee must recover from the Canada Revenue Agency the excess income tax, Canada Pension Plan contributions and Employment Insurance premiums that were deducted by their employer when the overpayment was made. On January 15, 2019, the Government proposed legislative amendments that would allow overpaid employees working in both the public and private sectors to repay their employer only the net amount they received after these deductions. The proposed amendments are intended to alleviate the burden faced by employees who were required to make repayments larger than the amounts they received from their employer, creating uncertainty and potential financial hardship.

Moving Toward the Next Generation Pay System for the Federal Public Service

In Budget 2018, the Government announced its intention to move away from the Phoenix pay system toward one better aligned to the complexity of the Government’s pay structure and to the future needs of Canada’s world-class public service.

Working cooperatively with experts, federal public sector unions, employees, pay specialists and technology providers, the Treasury Board Secretariat (TBS) launched a process to review lessons learned, and identify options for a next-generation pay solution.

As part of this process, pay system suppliers were invited to demonstrate possible solutions, which were directly tested with users. Based on feedback from users and participating stakeholders, TBS has been able to identify options with the potential to successfully replace the Phoenix pay system. As a next step, the Government will work with suppliers and stakeholders to develop the best options, including pilot projects that will allow for further testing with select departments and agencies, while assessing the ability of suppliers to deliver.

Finally, TBS will continue to engage public servants throughout this process, to ensure that their feedback is fully reflected in any future solution.

Interestingly, at the time of James Bagnoll’s article (excerpt in my March 19, 2019 posting), the only government data centre being replaced was Revenue Canada’s. It suggests that anything else can fall to pieces but the government should always be able to collect tax.

Getting back to my more cheerful and optimistic self, on balance, it’s encouraging to see thoughtful approaches to modernizing our regulatory system.

Treading water

There’s more to the’ 2019 commitment to science (from the 2019 budget’s Chapter 2; Part 6: Building Research Excellence in Canada: Support for Science, Research and Technology Organizations),

Canada is home to world-leading non-profit organizations that undertake research and bring together experts from diverse backgrounds to make discoveries, accelerate innovation and tackle health challenges. The Government helps support these collaborative efforts with targeted investments that return real economic and social benefits for Canadians.
Budget 2019 proposes to make additional investments in support of the following organizations:
Stem Cell Network: Stem cell research—pioneered by two Canadians in the 1960s—holds great promise for new therapies and medical treatments for respiratory and heart diseases, spinal cord injury, cancer, and many other diseases and disorders. The Stem Cell Network is a national not-for-profit organization that helps translate stem cell research into clinical applications and commercial products. To support this important work and foster Canada’s leadership in stem cell research, Budget 2019 proposes to provide the Stem Cell Network with renewed funding of $18 million over three years, starting in 2019–20.
Brain Canada Foundation: The Brain Canada Foundation is a national charitable organization that raises funds to foster advances in neuroscience discovery research, with the aim of improving health care for people affected by neurological injury and disease. To help the medical community better understand the brain and brain health, Budget 2019 proposes to provide the Brain Canada Foundation’s Canada Brain Research Fund with up to $40 million over two years, starting in 2020–21. This investment will be matched by funds raised from other non-government partners of the Brain Canada Foundation.
Terry Fox Research Institute: The Terry Fox Research Institute manages the cancer research investments of the Terry Fox Foundation. Budget 2019 proposes to provide the Terry Fox Research Institute with up to $150 million over five years, starting in 2019–20, to help establish a national Marathon of Hope Cancer Centres Network. The Institute would seek matching funding through a combination of its own resources and contributions that it would seek from other organizations,, including hospital and research foundations.
Ovarian Cancer Canada: Ovarian Cancer Canada supports women living with the disease and their families, raises awareness and funds research. Budget 2019 proposes to provide Ovarian Cancer Canada with $10 million over five years beginning in 2019–20 to help address existing gaps in knowledge about effective prevention, screening, and treatment options for ovarian cancer.
Genome Canada: The insights derived from genomics—the study of the entire genetic information of living things encoded in their DNA and related molecules and proteins—hold the potential for breakthroughs that can improve the lives of Canadians and drive innovation and economic growth. Genome Canada is a not-for-profit organization dedicated to advancing genomics science and technology in order to create economic and social benefits for Canadians. To support Genome Canada’s operations, Budget 2019 proposes to provide Genome Canada with $100.5 million over five years, starting in 2020–21. This investment will also enable Genome Canada to launch new large-scale research competitions and projects, in collaboration with external partners, ensuring that Canada’s research community continues to have access to the resources needed to make transformative scientific breakthroughs and translate these discoveries into real-world applications.
Let’s Talk Science: Science, technology, engineering and math (STEM) are not just things we study in school—together, they are transforming all aspects of our lives, and redefining the skills and knowledge people need to succeed in a changing world. Let’s Talk Science engages youth in hands-on STEM activities and learning programs, such as science experiments, helping youth develop critical thinking skills and opening up doors to future study and work in these fields. It also helps ensure more girls—and other groups that are underrepresented in STEM—gain and maintain interest in STEM from an early age. Budget 2019 proposes to provide Let’s Talk Science with $10 million over two years, starting in 2020–21, to support this important work.

There’s nothing earth shattering on that list. Five of these organizations could be described as focused on medical research and I have seen at least three of them mentioned in previous federal budgets. The last organization, Let’s Talk Science (established in 1993), focused on science promotion for children and youth, is being mentioned for the first time in a budget (as far as I know).

In the next section, the budget blesses physics or more specifically, TRIUMF. From the 2019 budget’s Chapter 2; Part 6: Building Research Excellence in Canada: Strengthening Canada’s World-Class physics research,

TRIUMF is a world-class sub-atomic physics research laboratory located in British Columbia, and home to the world’s largest cyclotron particle accelerator. TRIUMF has played a leading role in many medical breakthroughs—such as developing alongside Canadian industrial partners new approaches to the medical imaging of diseases—and brings together industry partners, leading academic researchers and scientists, and graduate students from across Canada and around the world to advance medical isotope production, drug development, cancer therapy, clinical imaging, and radiopharmaceutical research.

Budget 2019 proposes to provide TRIUMF with $195.9 million over five years, starting in 2019–20, to build on its strong track record of achievements. Combined with an additional $96.8 million from the existing resources of the National Research Council, federal support for TRIUMF will total $292.7 million over this five-year period.

When are the folks at the Canadian Light Source (our synchrotron) going to get some love? Year after year it’s either TRIUMF or the Perimeter Institute getting a major infusion of cash. I exaggerate but only mildly.You can find some of my comments on the 2018 federal budget in this March 16, 2018 posting and my comments on the 2017 federal budget in this March 24, 2017 posting.

Maybe one day a ray of light?

Here’s something new but I imagine you’ll quickly see what makes this an odd addition to the budget (from the 2019 budget’s Chapter 2; Part 6: Building Research Excellence in Canada: Taking a new approach With the Strategic Science Fund),

To make federal investments in third-party science and research more effective, Budget 2019 proposes to establish a new Strategic Science Fund. This new Fund will respond to recommendations that arose during consultations with third-party science and research organizations. It will operate using a principles-based framework for allocating federal funding that includes competitive, transparent processes. This will help protect and promote research excellence.

Under the Fund, the principles-based framework will be applied by an independent panel of experts, including scientists and innovators, who will provide advice for the consideration of the Government on approaches to allocating funding for third-party science and research organizations.

Budget 2019 proposes to establish and operate the Strategic Science Fund starting in 2022–23.

This Strategic Science Fund will be the Government’s key new tool to support third-party science and research organizations. Going forward, the selection of recipient organizations and corresponding level of support will be determined through the Fund’s competitive allocation process, with advice from the expert panel and informed by the Minister of Science’s overall strategy. The Minister of Science will provide more detail on the Fund over the coming months.

No money until 2022, eh? That’s interesting given that would be a year before the election (2023) after this one later in 2019. And, it’s anyone’s guess as to which government will be in power. Crossing my fingers again, I hope these good intention bear fruit in light of Daniel Banks’s (of the Canadian Neutron Beam Centre] March 21, 2019 essay (on the Canadian Science Policy Centre website) about the potential new oversight (Note: Prepare yourself for some alphabet soup; the man loves initialisms and sees no reason to include full names),

From a science policy perspective, which is about how science is managed, as well as funded, the biggest change may be one item that had no dollar amount attached.

Budget 2019 announces a “new approach” for funding so-called “third-party science and research.” The Fundamental Science Review defined “third-party science entities” as those operating outside the jurisdiction of NSERC, CIHR, SSHRC, CFI. Genome Canada, Mitacs, and Brain Canada are a few examples.

The Review raised concerns, not with the quality of these organizations’ output, but with how they are each governed as one-offs, via term-limited contribution agreements with ISED. Ad hoc governance arrangements have been needed until now because these organizations don’t fit within the existing programs of the granting councils. Lack of a suitable program required scientists to lobby for funds, rather than participate in peer-reviewed competitions. Over time, the Review warned, this approach could “allow select groups of researchers to sidestep the intensity of peer review competitions, and facilitate unchecked mission drift as third-party partner organizations shift their mandates to justify their continuation.”

The Strategic Science Fund could be a precedent for another portion of the science community that faces similar challenges: so-called Big Science, or Major Research Facilities (MRFs), such as TRIUMF, SNOLAB, Ocean Networks Canada, the Canadian Light Source, and large facilities for astronomy or neutron scattering. In the absence of a systematic means of overseeing Canada’s portfolio of these shared national resources, an array of oversight mechanisms have been created for these facilities on an ad hoc basis, much like the case for third-party research organizations. The Fundamental Science Review was the latest in a string of reports that have pointed problems with this ad hoc approach, stretching back at least 20 years.

Stewardship of Canada’s MRFs has improved following the introduction of the CFI’s Major Science Initiatives Fund in 2012, and the expansion of its mandate to include more facilities under its program in 2014. Nonetheless, there are still many facilities that are not covered by this Fund. No agency has responsibility for the entire portfolio of MRFs to allow it to plan for the creation of new MRFs as others wind-down, or provide predictable funding over the life-cycle of an MRF. Other MRFs still fall through jurisdictional cracks, where no federal agency is clearly responsible for them. Such jurisdictional cracks were one contributing factor in the loss of Canada’s neutron scattering facilities in 2018.

it’s one of the things I’ve found most difficult about following the Canadian science scene, it’s very scattered. In his essay, Banks explains, in part, why this situation exists.Let’s hope that one government or another addresses it.

On balance, it’s encouraging to see thoughtful approaches to modernizing our regulatory system and to better integrating the various agencies that serve our science initiatives. As for infrastructure and the Strategic Science Fund, I have, as previously noted, my fingers crossed. Let’s hope they manage it this time.

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.