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Microsoft, D-Wave Systems, quantum computing, and quantum supremacy?

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Before diving into some of the latest quantum computing doings, here’s why quantum computing is so highly prized and chased after, from the Quantum supremacy Wikipedia entry, Note: Links have been removed,

In quantum computing, quantum supremacy or quantum advantage is the goal of demonstrating that a programmable quantum computer can solve a problem that no classical computer can solve in any feasible amount of time, irrespective of the usefulness of the problem.[1][2][3] The term was coined by John Preskill in 2011,[1][4] but the concept dates to Yuri Manin’s 1980[5] and Richard Feynman’s 1981[6] proposals of quantum computing.

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Quantum supremacy and quantum advantage have been mentioned a few times here over the years. You can check my March 6, 2020 posting for when researchers from the University of California at Santa Barbara claimed quantum supremacy and my July 31, 2023 posting for when D-Wave Systems claimed a quantum advantage on optimization problems. I’d understood quantum supremacy and quantum advantage to be synonymous but according the article in Betakit (keep scrolling down to the D-Wave subhead and then, to ‘A controversy of sorts’ subhead in this posting), that’s not so.

The latest news on the quantum front comes from Microsoft (February 2025) and D-Wave systems (March 2025).

Microsoft claims a new state of matter for breakthroughs in quantum computing

Here’s the February 19, 2025 news announcement from Microsoft’s Chetan Nayak, Technical Fellow and Corporate Vice President of Quantum Hardware, Note: Links have been removed,

Quantum computers promise to transform science and society—but only after they achieve the scale that once seemed distant and elusive, and their reliability is ensured by quantum error correction. Today, we’re announcing rapid advancements on the path to useful quantum computing:

  • Majorana 1: the world’s first Quantum Processing Unit (QPU) powered by a Topological Core, designed to scale to a million qubits on a single chip.
  • A hardware-protected topological qubit: research published today in Nature, along with data shared at the Station Q meeting, demonstrate our ability to harness a new type of material and engineer a radically different type of qubit that is small, fast, and digitally controlled.
  • A device roadmap to reliable quantum computation: our path from single-qubit devices to arrays that enable quantum error correction.
  • Building the world’s first fault-tolerant prototype (FTP) based on topological qubits: Microsoft is on track to build an FTP of a scalable quantum computer—in years, not decades—as part of the final phase of the Defense Advanced Research Projects Agency (DARPA) Underexplored Systems for Utility-Scale Quantum Computing (US2QC) program.

Together, these milestones mark a pivotal moment in quantum computing as we advance from scientific exploration to technological innovation.

Harnessing a new type of material

All of today’s announcements build on our team’s recent breakthrough: the world’s first topoconductor. This revolutionary class of materials enables us to create topological superconductivity, a new state of matter that previously existed only in theory. The advance stems from Microsoft’s innovations in the design and fabrication of gate-defined devices that combine indium arsenide (a semiconductor) and aluminum (a superconductor). When cooled to near absolute zero and tuned with magnetic fields, these devices form topological superconducting nanowires with Majorana Zero Modes (MZMs) at the wires’ ends.

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Chris Vallance’s February 19, 2025 article for the British Broadcasting Corporation (BBC) news online website provides a description of Microsoft’s claims and makes note of the competitive quantum research environment,

Microsoft has unveiled a new chip called Majorana 1 that it says will enable the creation of quantum computers able to solve “meaningful, industrial-scale problems in years, not decades”.

It is the latest development in quantum computing – tech which uses principles of particle physics to create a new type of computer able to solve problems ordinary computers cannot.

Creating quantum computers powerful enough to solve important real-world problems is very challenging – and some experts believe them to be decades away.

Microsoft says this timetable can now be sped up because of the “transformative” progress it has made in developing the new chip involving a “topological conductor”, based on a new material it has produced.

The firm believes its topoconductor has the potential to be as revolutionary as the semiconductor was in the history of computing.

But experts have told the BBC more data is needed before the significance of the new research – and its effect on quantum computing – can be fully assessed.

Jensen Huang – boss of the leading chip firm, Nvidia – said in January he believed “very useful” quantum computing would come in 20 years.

Chetan Nayak, a technical fellow of quantum hardware at Microsoft, said he believed the developments would shake up conventional thinking about the future of quantum computers.

“Many people have said that quantum computing, that is to say useful quantum computers, are decades away,” he said. “I think that this brings us into years rather than decades.”

Travis Humble, director of the Quantum Science Center of Oak Ridge National Laboratory in the US, said he agreed Microsoft would now be able to deliver prototypes faster – but warned there remained work to do.

“The long term goals for solving industrial applications on quantum computers will require scaling up these prototypes even further,” he said.

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While rivals produced a steady stream of announcements – notably Google’s “Willow” at the end of 2024 – Microsoft seemed to be taking longer.

Pursuing this approach was, in the company’s own words, a “high-risk, high-rewards” strategy, but one it now believes is going to pay off.

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If you have the time, do read Vallance’s February 19, 2025 article.

The research paper

Purdue University’s (Indiana, US) February 25, 2025 news release on EurekAlert announces publication of the research, Note: Links have been removed,

Microsoft Quantum published an article in Nature on Feb. 19 [2025] detailing recent advances in the measurement of quantum devices that will be needed to realize a topological quantum computer. Among the authors are Microsoft scientists and engineers who conduct research at Microsoft Quantum Lab West Lafayette, located at Purdue University. In an announcement by Microsoft Quantum, the team describes the operation of a device that is a necessary building block for a topological quantum computer. The published results are an important milestone along the path to construction of quantum computers that are potentially more robust and powerful than existing technologies.

“Our hope for quantum computation is that it will aid chemists, materials scientists and engineers working on the design and manufacturing of new materials that are so important to our daily lives,” said Michael Manfra, scientific director of Microsoft Quantum Lab West Lafayette and the Bill and Dee O’Brien Distinguished Professor of Physics and Astronomy, professor of materials engineering, and professor of electrical and computer engineering at Purdue. “The promise of quantum computation is in accelerating scientific discovery and its translation into useful technology. For example, if quantum computers reduce the time and cost to produce new lifesaving therapeutic drugs, that is real societal impact.” 

The Microsoft Quantum Lab West Lafayette team advanced the complex layered materials that make up the quantum plane of the full device architecture used in the tests. Microsoft scientists working with Manfra are experts in advanced semiconductor growth techniques, including molecular beam epitaxy, that are used to build low-dimensional electron systems that form the basis for quantum bits, or qubits. They built the semiconductor and superconductor layers with atomic layer precision, tailoring the material’s properties to those needed for the device architecture.

Manfra, a member of the Purdue Quantum Science and Engineering Institute, credited the strong relationship between Purdue and Microsoft, built over the course of a decade, with the advances conducted at Microsoft Quantum Lab West Lafayette. In 2017 Purdue deepened its relationship with Microsoft with a multiyear agreement that includes embedding Microsoft employees with Manfra’s research team at Purdue.

“This was a collaborative effort by a very sophisticated team, with a vital contribution from the Microsoft scientists at Purdue,” Manfra said. “It’s a Microsoft team achievement, but it’s also the culmination of a long-standing partnership between Purdue and Microsoft. It wouldn’t have been possible without an environment at Purdue that was conducive to this mode of work — I attempted to blend industrial with academic research to the betterment of both communities. I think that’s a success story.”

Quantum science and engineering at Purdue is a pillar of the Purdue Computes initiative, which is focused on advancing research in computing, physical AI, semiconductors and quantum technologies.

“This research breakthrough in the measurement of the state of quasi particles is a milestone in the development of topological quantum computing, and creates a watershed moment in the semiconductor-superconductor hybrid structure,” Purdue President Mung Chiang said. “Marking also the latest success in the strategic initiative of Purdue Computes, the deep collaboration that Professor Manfra and his team have created with the Microsoft Quantum Lab West Lafayette on the Purdue campus exemplifies the most impactful industry research partnership at any American university today.”

Most approaches to quantum computers rely on local degrees of freedom to encode information. The spin of an electron is a classic example of a qubit. But an individual spin is prone to disturbance — by relatively common things like heat, vibrations or interactions with other quantum particles — which can corrupt quantum information stored in the qubit, necessitating a great deal of effort in detecting and correcting errors. Instead of spin, topological quantum computers store information in a more distributed manner; the qubit state is encoded in the state of many particles acting in concert. Consequently, it is harder to scramble the information as the state of all the particles must be changed to alter the qubit state.

In the Nature paper, the Microsoft team was able to accurately and quickly measure the state of quasi particles that form the basis of the qubit.

“The device is used to measure a basic property of a topological qubit quickly,” Manfra said. “The team is excited to build on these positive results.”

“The team in West Lafayette pushed existing epitaxial technology to a new state-of-the-art for semiconductor-superconductor hybrid structures to ensure a perfect interface between each of the building blocks of the Microsoft hybrid system,” said Sergei Gronin, a Microsoft Quantum Lab scientist.

“The materials quality that is required for quantum computing chips necessitates constant improvements, so that’s one of the biggest challenges,” Gronin said. “First, we had to adjust and improve semiconductor technology to meet a new level that nobody was able to achieve before. But equally important was how to create this hybrid system. To do that, we had to merge a semiconducting part and a superconducting part. And that means you need to perfect the semiconductor and the superconductor and perfect the interface between them.”

While work discussed in the Nature article was performed by Microsoft employees, the exposure to industrial-scale research and development is an outstanding opportunity for Purdue students in Manfra’s academic group as well. John Watson, Geoffrey Gardner and Saeed Fallahi, who are among the coauthors of the paper, earned their doctoral degrees under Manfra and now work for Microsoft Quantum at locations in Redmond, Washington, and Copenhagen, Denmark. Most of Manfra’s former students now work for quantum computing companies, including Microsoft. Tyler Lindemann, who works in the West Lafayette lab and helped to build the hybrid semiconductor-superconductor structures required for the device, is earning a doctoral degree from Purdue under Manfra’s supervision.

“Working in Professor Manfra’s lab in conjunction with my work for Microsoft Quantum has given me a head start in my professional development, and been fruitful for my academic work,” Lindemann said. “At the same time, many of the world-class scientists and engineers at Microsoft Quantum have some background in academia, and being able to draw from their knowledge and experience is an indispensable resource in my graduate studies. From both perspectives, it’s a great opportunity.”

Here’s a link to and a citation for the paper,

Interferometric single-shot parity measurement in InAs–Al hybrid devices by Microsoft Azure Quantum, Morteza Aghaee, Alejandro Alcaraz Ramirez, Zulfi Alam, Rizwan Ali, Mariusz Andrzejczuk, Andrey Antipov, Mikhail Astafev, Amin Barzegar, Bela Bauer, Jonathan Becker, Umesh Kumar Bhaskar, Alex Bocharov, Srini Boddapati, David Bohn, Jouri Bommer, Leo Bourdet, Arnaud Bousquet, Samuel Boutin, Lucas Casparis, Benjamin J. Chapman, Sohail Chatoor, Anna Wulff Christensen, Cassandra Chua, Patrick Codd, William Cole, Paul Cooper, Fabiano Corsetti, Ajuan Cui, Paolo Dalpasso, Juan Pablo Dehollain, Gijs de Lange, Michiel de Moor, Andreas Ekefjärd, Tareq El Dandachi, Juan Carlos Estrada Saldaña, Saeed Fallahi, Luca Galletti, Geoff Gardner, Deshan Govender, Flavio Griggio, Ruben Grigoryan, Sebastian Grijalva, Sergei Gronin, Jan Gukelberger, Marzie Hamdast, Firas Hamze, Esben Bork Hansen, Sebastian Heedt, Zahra Heidarnia, Jesús Herranz Zamorano, Samantha Ho, Laurens Holgaard, John Hornibrook, Jinnapat Indrapiromkul, Henrik Ingerslev, Lovro Ivancevic, Thomas Jensen, Jaspreet Jhoja, Jeffrey Jones, Konstantin V. Kalashnikov, Ray Kallaher, Rachpon Kalra, Farhad Karimi, Torsten Karzig, Evelyn King, Maren Elisabeth Kloster, Christina Knapp, Dariusz Kocon, Jonne V. Koski, Pasi Kostamo, Mahesh Kumar, Tom Laeven, Thorvald Larsen, Jason Lee, Kyunghoon Lee, Grant Leum, Kongyi Li, Tyler Lindemann, Matthew Looij, Julie Love, Marijn Lucas, Roman Lutchyn, Morten Hannibal Madsen, Nash Madulid, Albert Malmros, Michael Manfra, Devashish Mantri, Signe Brynold Markussen, Esteban Martinez, Marco Mattila, Robert McNeil, Antonio B. Mei, Ryan V. Mishmash, Gopakumar Mohandas, Christian Mollgaard, Trevor Morgan, George Moussa, Chetan Nayak, Jens Hedegaard Nielsen, Jens Munk Nielsen, William Hvidtfelt Padkar Nielsen, Bas Nijholt, Mike Nystrom, Eoin O’Farrell, Thomas Ohki, Keita Otani, Brian Paquelet Wütz, Sebastian Pauka, Karl Petersson, Luca Petit, Dima Pikulin, Guen Prawiroatmodjo, Frank Preiss, Eduardo Puchol Morejon, Mohana Rajpalke, Craig Ranta, Katrine Rasmussen, David Razmadze, Outi Reentila, David J. Reilly, Yuan Ren, Ken Reneris, Richard Rouse, Ivan Sadovskyy, Lauri Sainiemi, Irene Sanlorenzo, Emma Schmidgall, Cristina Sfiligoj, Mustafeez Bashir Shah, Kevin Simoes, Shilpi Singh, Sarat Sinha, Thomas Soerensen, Patrick Sohr, Tomas Stankevic, Lieuwe Stek, Eric Stuppard, Henri Suominen, Judith Suter, Sam Teicher, Nivetha Thiyagarajah, Raj Tholapi, Mason Thomas, Emily Toomey, Josh Tracy, Michelle Turley, Shivendra Upadhyay, Ivan Urban, Kevin Van Hoogdalem, David J. Van Woerkom, Dmitrii V. Viazmitinov, Dominik Vogel, John Watson, Alex Webster, Joseph Weston, Georg W. Winkler, Di Xu, Chung Kai Yang, Emrah Yucelen, Roland Zeisel, Guoji Zheng & Justin Zilke. Nature 638, 651–655 (2025). DOI: https://doi.org/10.1038/s41586-024-08445-2 Published online: 19 February 2025 Issue Date: 20 February 2025

This paper is open access. Note: I usually tag all of the authors but not this time.

Controversy over this and previous Microsoft quantum computing claims

Elizabeth Hlavinka’s March 17, 2025 article for Salon.com provides an overview, Note: Links have been removed,

The matter making up the world around us has long-since been organized into three neat categories: solids, liquids and gases. But last month [February 2025], Microsoft announced that it had allegedly discovered another state of matter originally theorized to exist in 1937. 

This new state of matter called the Majorana zero mode is made up of quasiparticles, which act as their own particle and antiparticle. The idea is that the Majorana zero mode could be used to build a quantum computer, which could help scientists answer complex questions that standard computers are not capable of solving, with implications for medicine, cybersecurity and artificial intelligence.

In late February [2025], Sen. Ted Cruz presented Microsoft’s new computer chip at a congressional hearing, saying, “Technologies like this new chip I hold in the palm of my hand, the Majorana 1 quantum chip, are unlocking a new era of computing that will transform industries from health care to energy, solving problems that today’s computers simply cannot.”

However, Microsoft’s announcement, claiming a “breakthrough in quantum computing,” was met with skepticism from some physicists in the field. Proving that this form of quantum computing can work requires first demonstrating the existence of Majorana quasiparticles, measuring what the Majorana particles are doing, and creating something called a topological qubit used to store quantum information.

But some say that not all of the data necessary to prove this has been included in the research paper published in Nature, on which this announcement is based. And due to a fraught history of similar claims from the company being disputed and ultimately rescinded, some are extra wary of the results. [emphasis mine]

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It’s not the first time Microsoft has faced backlash from presenting findings in the field. In 2018, the company reported that they had detected the presence of Majorana zero-modes in a research paper, but it was retracted by Nature, the journal that published it after a report from independent experts put their findings under more intense scrutiny.

In the [2018] report, four physicists not involved in the research concluded that it did not appear that Microsoft had intentionally misrepresented the data, but instead seemed to be “caught up in the excitement of the moment [emphasis mine].”

Establishing the existence of these particles is extremely complex in part because disorder in the device can create signals that mimic these quasiparticles when they are not actually there. 

Modern computers in use today are encoded in bits, which can either be in a zero state (no current flowing through them), or a one state (current flowing.) These bits work together to send information and signals that communicate with the computer, powering everything from cell phones to video games.

Companies like Google, IBM and Amazon have invested in designing another form of quantum computer that uses chips built with “qubits,” or quantum bits. Qubits can exist in both zero and one states at the same time due to a phenomenon called superposition. 

However, qubits are subject to external noise from the environment that can affect their performance, said Dr. Paolo Molignini, a researcher in theoretical quantum physics at Stockholm University.

“Because qubits are in a superposition of zero and one, they are very prone to errors and they are very prone to what is called decoherence, which means there could be noise, thermal fluctuations or many things that can collapse the state of the qubits,” Molignini told Salon in a video call. “Then you basically lose all of the information that you were encoding.”

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In December [2024], Google said its quantum computer could perform a calculation that a standard computer could complete in 10 septillion years — a period far longer than the age of the universe — in just under five minutes.

However, a general-purpose computer would require billions of qubits, so these approaches are still a far cry from having practical applications, said Dr. Patrick Lee, a physicist at the Massachusetts Institute of Technology [MIT], who co-authored the report leading to the 2018 Nature paper’s retraction.

Microsoft is taking a different approach to quantum computing by trying to develop  a topological qubit, which has the ability to store information in multiple places at once. Topological qubits exist within the Majorana zero states and are appealing because they can theoretically offer greater protection against environmental noise that destroys information within a quantum system.

Think of it like an arrow, where the arrowhead holds a portion of the information and the arrow tail holds the rest, Lee said. Distributing information across space like this is called topological protection.

“If you are able to put them far apart from each other, then you have a chance of maintaining the identity of the arrow even if it is subject to noise,” Lee told Salon in a phone interview. “The idea is that if the noise affects the head, it doesn’t kill the arrow and if it affects only the tail it doesn’t kill your arrow. It has to affect both sides simultaneously to kill your arrow, and that is very unlikely if you are able to put them apart.”

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… Lee believes that even if the data doesn’t entirely prove that topological qubits exist in the Majorana zero-state, it still represents a scientific advancement. But he noted that several important issues need to be solved before it has practical implications. For one, the coherence time of these particles — or how long they can exist without being affected by environmental noise — is still very short, he explained.

“They make a measurement, come back, and the qubit has changed, so you have lost your coherence,” Lee said. “With this very short time, you cannot do anything with it.”

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“I just wish they [Microsoft] were a bit more careful with their claims because I fear that if they don’t measure up to what they are saying, there might be a backlash at some point where people say, ‘You promised us all these fancy things and where are they now?’” Molignini said. “That might damage the entire quantum community, not just themselves.”

Iif you have the time, please read Hlavinka’s March 17, 2025 article in its entirety .

D-Wave Quantum Systems claims quantum supremacy over real world problem solution

A March 15, 2025 article by Bob Yirka for phys.org announces the news from D-Wave Quantum Systems. Note: The company, which had its headquarters in Canada (Burnaby, BC) now seems to be a largely US company with its main headquarters in Palo Alto, California and an ancillary or junior (?) headquarters in Canada, Note: A link has been removed,

A team of quantum computer researchers at quantum computer maker D-Wave, working with an international team of physicists and engineers, is claiming that its latest quantum processor has been used to run a quantum simulation faster than could be done with a classical computer.

In their paper published in the journal Science, the group describes how they ran a quantum version of a mathematical approximation regarding how matter behaves when it changes states, such as from a gas to a liquid—in a way that they claim would be nearly impossible to conduct on a traditional computer.

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Here’s a March 12, 2025 D-Wave Systems (now D-Wave Quantum Systems) news release touting its real world problem solving quantum supremacy,

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New landmark peer-reviewed paper published in Science, “Beyond-Classical Computation in Quantum Simulation,” unequivocally validates D-Wave’s achievement of the world’s first and only demonstration of quantum computational supremacy on a useful, real-world problem

Research shows D-Wave annealing quantum computer performs magnetic materials simulation in minutes that would take nearly one million years and more than the world’s annual electricity consumption to solve using a classical supercomputer built with GPU clusters

D-Wave Advantage2 annealing quantum computer prototype used in supremacy achievement, a testament to the system’s remarkable performance capabilities

PALO ALTO, Calif. – March 12, 2025 – D-Wave Quantum Inc. (NYSE: QBTS) (“D-Wave” or the “Company”), a leader in quantum computing systems, software, and services and the world’s first commercial supplier of quantum computers, today announced a scientific breakthrough published in the esteemed journal Science, confirming that its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers in solving complex magnetic materials simulation problems with relevance to materials discovery. The new landmark peer-reviewed paper, “Beyond-Classical Computation in Quantum Simulation,” validates this achievement as the world’s first and only demonstration of quantum computational supremacy on a useful problem.

An international collaboration of scientists led by D-Wave performed simulations of quantum dynamics in programmable spin glasses—computationally hard magnetic materials simulation problems with known applications to business and science—on both D-Wave’s Advantage2TM prototype annealing quantum computer and the Frontier supercomputer at the Department of Energy’s Oak Ridge National Laboratory. The work simulated the behavior of a suite of lattice structures and sizes across a variety of evolution times and delivered a multiplicity of important material properties. D-Wave’s quantum computer performed the most complex simulation in minutes and with a level of accuracy that would take nearly one million years using the supercomputer. In addition, it would require more than the world’s annual electricity consumption to solve this problem using the supercomputer, which is built with graphics processing unit (GPU) clusters.

“This is a remarkable day for quantum computing. Our demonstration of quantum computational supremacy on a useful problem is an industry first. All other claims of quantum systems outperforming classical computers have been disputed or involved random number generation of no practical value,” said Dr. Alan Baratz, CEO of D-Wave. “Our achievement shows, without question, that D-Wave’s annealing quantum computers are now capable of solving useful problems beyond the reach of the world’s most powerful supercomputers. We are thrilled that D-Wave customers can use this technology today to realize tangible value from annealing quantum computers.”

Realizing an Industry-First Quantum Computing Milestone
The behavior of materials is governed by the laws of quantum physics. Understanding the quantum nature of magnetic materials is crucial to finding new ways to use them for technological advancement, making materials simulation and discovery a vital area of research for D-Wave and the broader scientific community. Magnetic materials simulations, like those conducted in this work, use computer models to study how tiny particles not visible to the human eye react to external factors. Magnetic materials are widely used in medical imaging, electronics, superconductors, electrical networks, sensors, and motors.

“This research proves that D-Wave’s quantum computers can reliably solve quantum dynamics problems that could lead to discovery of new materials,” said Dr. Andrew King, senior distinguished scientist at D-Wave. “Through D-Wave’s technology, we can create and manipulate programmable quantum matter in ways that were impossible even a few years ago.”

Materials discovery is a computationally complex, energy-intensive and expensive task. Today’s supercomputers and high-performance computing (HPC) centers, which are built with tens of thousands of GPUs, do not always have the computational processing power to conduct complex materials simulations in a timely or energy-efficient manner. For decades, scientists have aspired to build a quantum computer capable of solving complex materials simulation problems beyond the reach of classical computers. D-Wave’s advancements in quantum hardware have made it possible for its annealing quantum computers to process these types of problems for the first time.

“This is a significant milestone made possible through over 25 years of research and hardware development at D-Wave, two years of collaboration across 11 institutions worldwide, and more than 100,000 GPU and CPU hours of simulation on one of the world’s fastest supercomputers as well as computing clusters in collaborating institutions,” said Dr. Mohammad Amin, chief scientist at D-Wave. “Besides realizing Richard Feynman’s vision of simulating nature on a quantum computer, this research could open new frontiers for scientific discovery and quantum application development.” 

Advantage2 System Demonstrates Powerful Performance Gains
The results shown in “Beyond-Classical Computation in Quantum Simulation” were enabled by D-Wave’s previous scientific milestones published in Nature Physics (2022) and Nature (2023), which theoretically and experimentally showed that quantum annealing provides a quantum speedup in complex optimization problems. These scientific advancements led to the development of the Advantage2 prototype’s fast anneal feature, which played an essential role in performing the precise quantum calculations needed to demonstrate quantum computational supremacy.

“The broader quantum computing research and development community is collectively building an understanding of the types of computations for which quantum computing can overtake classical computing. This effort requires ongoing and rigorous experimentation,” said Dr. Trevor Lanting, chief development officer at D-Wave. “This work is an important step toward sharpening that understanding, with clear evidence of where our quantum computer was able to outperform classical methods. We believe that the ability to recreate the entire suite of results we produced is not possible classically. We encourage our peers in academia to continue efforts to further define the line between quantum and classical capabilities, and we believe these efforts will help drive the development of ever more powerful quantum computing technology.”

The Advantage2 prototype used to achieve quantum computational supremacy is available for customers to use today via D-Wave’s Leap™ real-time quantum cloud service. The prototype provides substantial performance improvements from previous-generation Advantage systems, including increased qubit coherence, connectivity, and energy scale, which enables higher-quality solutions to larger, more complex problems. Moreover, D-Wave now has an Advantage2 processor that is four times larger than the prototype used in this work and has extended the simulations of this paper from hundreds of qubits to thousands of qubits, which are significantly larger than those described in this paper.

Leading Industry Voices Echo Support
Dr. Hidetoshi Nishimori, Professor, Department of Physics, Tokyo Institute of Technology:
“This paper marks a significant milestone in demonstrating the real-world applicability of large-scale quantum computing. Through rigorous benchmarking of quantum annealers against state-of-the-art classical methods, it convincingly establishes a quantum advantage in tackling practical problems, revealing the transformative potential of quantum computing at an unprecedented scale.”

Dr. Seth Lloyd, Professor of Quantum Mechanical Engineering, MIT:
“Although large-scale, fully error-corrected quantum computers are years in the future, quantum annealers can probe the features of quantum systems today. In an elegant paper, the D-Wave group has used a large-scale quantum annealer to uncover patterns of entanglement in a complex quantum system that lie far beyond the reach of the most powerful classical computer. The D-Wave result shows the promise of quantum annealers for exploring exotic quantum effects in a wide variety of systems.”

Dr. Travis Humble, Director of Quantum Science Center, Distinguished Scientist at Oak Ridge National Laboratory:
“ORNL seeks to expand the frontiers of computation through many different avenues, and benchmarking quantum computing for materials science applications provides critical input to our understanding of new computational capabilities.”

Dr. Juan Carrasquilla, Associate Professor at the Department of Physics, ETH Zürich:
“I believe these results mark a critical scientific milestone for D-Wave. They also serve as an invitation to the scientific community, as these results offer a strong benchmark and motivation for developing novel simulation techniques for out-of-equilibrium dynamics in quantum many-body physics. Furthermore, I hope these findings encourage theoretical exploration of the computational challenges involved in performing such simulations, both classically and quantum-mechanically.”

Dr. Victor Martin-Mayor, Professor of Theoretical Physics, Universidad Complutense de Madrid:
“This paper is not only a tour-de-force for experimental physics, it is also remarkable for the clarity of the results. The authors have addressed a problem that is regarded both as important and as very challenging to a classical computer. The team has shown that their quantum annealer performs better at this task than the state-of-the-art methods for classical simulation.”

Dr. Alberto Nocera, Senior Staff Scientist, The University of British Columbia:
“Our work shows the impracticability of state-of-the-art classical simulations to simulate the dynamics of quantum magnets, opening the door for quantum technologies based on analog simulators to solve scientific questions that may otherwise remain unanswered using conventional computers.”

About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum computing systems, software, and services. We are the world’s first commercial supplier of quantum computers, and the only company building both annealing and gate-model quantum computers. Our mission is to help customers realize the value of quantum, today. Our 5,000+ qubit Advantage™ quantum computers, the world’s largest, are available on-premises or via the cloud, supported by 99.9% availability and uptime. More than 100 organizations trust D-Wave with their toughest computational challenges. With over 200 million problems submitted to our Advantage systems and Advantage2™ prototypes to date, our customers apply our technology to address use cases spanning optimization, artificial intelligence, research and more. Learn more about realizing the value of quantum computing today and how we’re shaping the quantum-driven industrial and societal advancements of tomorrow: www.dwavequantum.com.

Forward-Looking Statements
Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management’s control, including the risks set forth under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

Here’s a link to and a citation for the most recent paper,

Beyond-classical computation in quantum simulation by Andrew D. King , Alberto Nocera, Marek M. Rams, Jacek Dziarmaga, Roeland Wiersema, William Bernoudy, Jack Raymond, Nitin Kaushal, Niclas Heinsdorf, Richard Harris, Kelly Boothby, Fabio Altomare, Mohsen Asad, Andrew J. Berkley, Martin Boschnak, Kevin Chern, Holly Christiani, Samantha Cibere, Jake Connor, Martin H. Dehn, Rahul Deshpande, Sara Ejtemaee, Pau Farre, Kelsey Hamer, Emile Hoskinson, Shuiyuan Huang, Mark W. Johnson, Samuel Kortas, Eric Ladizinsky, Trevor Lanting, Tony Lai, Ryan Li, Allison J. R. MacDonald, Gaelen Marsden, Catherine C. McGeoch, Reza Molavi, Travis Oh, Richard Neufeld, Mana Norouzpour, Joel Pasvolsky, Patrick Poitras, Gabriel Poulin-Lamarre, Thomas Prescott, Mauricio Reis, Chris Rich, Mohammad Samani, Benjamin Sheldan, Anatoly Smirnov, Edward Sterpka, Berta Trullas Clavera, Nicholas Tsai, Mark Volkmann, Alexander M. Whiticar, Jed D. Whittaker, Warren Wilkinson, Jason Yao, T.J. Yi, Anders W. Sandvik, Gonzalo Alvarez, Roger G. Melko, Juan Carrasquilla, Marcel Franz, and Mohammad H. Amin. Science 12 Mar 2025 First Release DOI: 10.1126/science.ado6285

This paper appears to be open access.Note: I usually tag all of the authors but not this time either.

A controversy of sorts

Madison McLauchlan’s March 19, 2025 article for Betakit (website for Canadian Startup News & Tech Innovation), Note: Links have been removed,

Canadian-born company D-Wave Quantum Systems said it achieved “quantum supremacy” last week after publishing what it calls a groundbreaking paper in the prestigious journal Science. Despite the lofty term, Canadian experts say supremacy is not the be-all, end-all of quantum innovation. 

D-Wave, which has labs in Palo Alto, Calif., and Burnaby, BC, claimed in a statement that it has shown “the world’s first and only demonstration of quantum computational supremacy on a useful, real-world problem.”

Coined in the early 2010s by physicist John Preskill, quantum supremacy is the ability of a quantum computing system to solve a problem no classical computer can in a feasible amount of time. The metric makes no mention of whether the problem needs to be useful or relevant to real life. Google researchers published a paper in Nature in 2019 claiming they cleared that bar with the Sycamore quantum processor. Researchers at the University of Science and Technology in China claimed they demonstrated quantum supremacy several times. 

D-Wave’s attempt differs in that its researchers aimed to solve a real-world materials-simulation problem with quantum computing—one the company claims would be nearly impossible for a traditional computer to solve in a reasonable amount of time. D-Wave used an annealing designed to solve optimization problems. The problem is represented like an energy space, where the “lowest energy state” corresponds to the solution. 

While exciting, quantum supremacy is just one metric among several that mark the progress toward widely useful quantum computers, industry experts told BetaKit. 

…

“It is a very important and mostly academic metric, but certainly not the most important in the grand scheme of things, as it doesn’t take into account the usefulness of the algorithm,” said Martin Laforest, managing partner at Quantacet, a specialized venture capital fund for quantum startups. 

He added that Google and Xanadu’s [Xanadu Quantum Technologies based in Toronto, Canada] past claims to quantum supremacy were “extraordinary pieces of work, but didn’t unlock practicality.” 

Laforest, along with executives at Canadian quantum startups Nord Quantique and Photonic, say that the milestones of ‘quantum utility’ or ‘quantum advantage’ may be more important than supremacy. 

According to Quantum computing company Quera [QuEra?], quantum advantage is the demonstration of a quantum algorithm solving a real-world problem on a quantum computer faster than any classical algorithm running on any classical computer. On the other hand, quantum utility, according to IBM, refers to when a quantum computer is able to perform reliable computations at a scale beyond brute-force classical computing methods that provide exact solutions to computational problems. 

…

Error correction hasn’t traditionally been considered a requirement for quantum supremacy, but Laforest told BetaKit the term is “an ever-moving target, constantly challenged by advances in classical algorithms.” He added: “In my opinion, some level of supremacy or utility may be possible in niche areas without error correction, but true disruption requires it.”

Paul Terry, CEO of Vancouver-based Photonic, thinks that though D-Wave’s claim to quantum supremacy shows “continued progress to real value,” scalability is the industry’s biggest hurdle to overcome.

…

But as with many milestone claims in the quantum space, D-Wave’s latest innovation has been met with scrutiny from industry competitors and researchers on the breakthrough’s significance, claiming that classical computers have achieved similar results. Laforest echoed this sentiment.

“Personally, I wouldn’t say it’s an unequivocal demonstration of supremacy, but it is a damn nice experiment that once again shows the murky zone between traditional computing and early quantum advantage,” Laforest said.

Originally founded out of the University of British Columbia, D-Wave went public on the New York Stock Exchange just over two years ago through a merger with a special-purpose acquisition company in 2022. D-Wave became a Delaware-domiciled corporation as part of the deal.

Earlier this year, D-Wave’s stock price dropped after Nvidia CEO Jensen Huang publicly stated that he estimated that useful quantum computers were more than 15 years away. D-Wave’s stock price, which had been struggling, has seen a considerable bump in recent months alongside a broader boost in the quantum market. The price popped after its most recent earnings, shared right after its quantum supremacy announcement. 

The beat goes on

Some of this is standard in science. There’s always a debate over big claims and it’s not unusual for people to get over excited and have to make a retraction. Scientists are people too. That said, there’s a lot of money on the line and that appears to be making situation even more volatile than usual.

That last paragraph was completed on the morning of March 21, 2025 and later that afternoon I came across this March 21, 2025 article by Michael Grothaus for Fast Company, Note: Links have been removed,

Quantum computing stocks got pummeled yesterday, with the four most prominent public quantum computing companies—IonQ, Rigetti Computing, Quantum Computing Inc., and D-Wave Quantum Inc.—falling anywhere from over 9% to over 18%. The reason? A lot of it may have to do with AI chip giant Nvidia. Again.

Stocks crash yesterday on Nvidia quantum news

Yesterday was a bit of a bloodbath on the stock market for the four most prominent publicly traded quantum computing companies. …

…

All four of these quantum computing stocks [IonQ, Inc.; Rigetti Computing, Inc.; Quantum Computing Inc.; D-Wave Quantum Inc.] tumbled on the day that AI chip giant Nvidia kicked off its two-day Quantum Day event. In a blog post from January 14 announcing Quantum Day, Nvidia said the event “brings together leading experts for a comprehensive and balanced perspective on what businesses should expect from quantum computing in the coming decades — mapping the path toward useful quantum applications.”

…

Besides bringing quantum experts together, the AI behemoth also announced that it will be launching a new quantum computing research center in Boston.

Called the NVIDIA Accelerated Quantum Research Center (NVAQC), the new research lab “will help solve quantum computing’s most challenging problems, ranging from qubit noise to transforming experimental quantum processors into practical devices,” the company said in a press release.

The NVAQC’s location in Boston means it will be near both Harvard University and the Massachusetts Institute of Technology (MIT). 

…

Before Nvidia’s announcement yesterday, IonQ, Rigetti, D-Wave, and Quantum Computing Inc. were the leaders in the nascent field of quantum computing. And while they still are right now (Nvidia’s quantum research lab hasn’t been built yet), the fear is that Nvidia could use its deep pockets to quickly buy its way into a leadership spot in the field. With its $2.9 trillion market cap, the company can easily afford to throw billions of research dollars into quantum computing.

As noted by the Motley Fool, the location of the NVIDIA Accelerated Quantum Research Center in Boston will also allow Nvidia to more easily tap into top quantum talent from Harvard and MIT—talent that may have otherwise gone to IonQ, Rigetti, D-Wave, and Quantum Computing Inc.

Nvidia’s announcement is a massive about-face from the company in regard to how it views quantum computing. It’s also the second time that Nvidia has caused quantum stocks to crash this year. Back in January, shares in prominent quantum computing companies fell after Huang said that practical use of quantum computing was decades away.

Those comments were something quantum computing company CEOs like D-Wave’s Alan Baratz took issue with. “It’s an egregious error on Mr. Huang’s part,” Bartaz told Fast Company at the time. “We’re not decades away from commercial quantum computers. They exist. There are companies that are using our quantum computer today.”

According to Investor’s Business Daily, Huang reportedly got the idea for Nvidia’s Quantum Day event after the blowback to his comments, inviting quantum computing executives to the event to explain why he was incorrect about quantum computing.

…

The word is volatile.

Last call for Science and Innovation in a Time of Transformation—the Canadian Science Policy Conference (November 13 – 15, 2023)

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Unless something really exciting happens, this will be my last post about the upcoming 2023 (and 15th annual) Canadian Science Policy Conference. I will be highlighting a few of the sessions but, first, there’s this from an October 26, 2023 Canadian Science Policy Centre announcement (received via email),

Only Two Weeks Left to Register for CSPC [Canadian Science Policy Conference] 2023!

Only two weeks left to register for CSPC 2023! The deadline to register is Friday, November 10th! With the overarching theme of ‘Science and Innovation in a Time of Transformation’ CSPC 2023 expects more than 1000 participants, 300+ speakers in 50+ panel sessions, and will include a spectacular Gala Dinner featuring its award ceremony which has become a signature annual event to celebrate Canadian science and innovation policy achievements. 

CSPC 2023 will feature more than 300 amazing speakers. To view the list of speakers, click here, and here are some of the international speakers: 

Multiple ticket discounts are also available. CSPC offers a 5% discount on groups of 5-9 registrations and a 10% discount for 10 registrations or more. Please note GROUP REGISTRATION DISCOUNTS are available until Friday, November 10th. Please contact conference@sciencepolicy.ca for more information.

Register now by clicking the button below!
Register Now

View the CSPC 2023 Program and Speakers List!

The biggest and most comprehensive annual Science and Innovation Policy Conference, CSPC 2023, is fast approaching! Explore more than 60 concurrent and plenary panel sessions. Navigate the CSPC 2023 Program: the Interactive Agenda is available here, and the Agenda at a Glance can be viewed here.

There are four sessions that seem particularly interesting to me. First, from the session webpage,

804 – Discussion between Dr. Mona Nemer and Dr. Sethuraman Panchanathan, moderated by Dr. Alejandro Adem

Monday, November 13, 20231:00 PM – 2:00 PM

This year’s CSPC opening panel will bring together two of North America’s most recognized science leaders for a discussion about their experience in the Canadian and U.S research landscape. Panelists will discuss the importance of societally-relevant science, broadening participation in science, the increasing need for open science, and science & technology in green economic development, as well as their vision for the role of science in international relations.

Organized by: Canada Research Coordinating Committee

Speakers

Dr. Alejandro Adem
President of the Natural Sciences and Engineering Research Council of Canada (NSERC)

Dr. Mona Nemer
Canada’s Chief Science Advisor, Government of Canada

Dr. Sethuraman Panchanathan
Computer Scientist and Engineer
15th Director of the U.S. National Science Foundation (NSF)

Second, from the session webpage,

901 – The new challenges of information in parliaments

Monday, November 13, 20232:30 PM – 4:00 PM

In a democratic environment, members of parliament work with information gathered from parliamentary staff, media, lobbies and experts. With the aim of maintaining a strong democracy, parliaments around the world have developed mechanisms to facilitate access to high-quality information for elected representatives, with variations according to continent, language and culture. This panel proposes an overview of these mechanisms including a discussion on emerging issues impacting them, such as the integration of artificial intelligence and the risks of digital interference in democratic processes.

Organized by: Fonds de recherche du Quebec

Speakers

…

Interestingly, the Canadian Science Policy Centre recently published a research report titled “Survey of Parliamentarians; Impact of the COVID-19 Pandemic on the Use of Science in Policy Making,” you can my comments about it in my October 13, 2023 posting.

Third, from the session webpage,

277 – Science for Social Justice: Advancing the agenda set by the 2022 Cape Town World Science Forum

Tuesday, November 14, 202310:30 AM – 12:00 PM

South Africa had hosted the 10th World Science Forum (WSF), a platform for global science policy dialogue, in Cape Town in December 2022. The WSF is co-organised by a partnership involving global science organisations including UNESCO, the AAAS and the International Science Council, and Hungarian Academy of Science. The theme of the 2022 WSF was “Science for Social Justice.” During a week of intense debate more than 3000 participants from across the world debated the role of science in advancing social justice. This session will review the outcomes of the Forum, including the WSF Declaration on Science for Social Justice.

Organized by: South African Department of Science and Innovation

Speakers

…

The fourth and final session to be mentioned here, from the session webpage,

910 – Canada’s Quantum potential : critical partnerships and public policy to advance Canada’s leadership in Quantum science and technology.

Tuesday, November 14, 202310:30 AM – 12:00 PM

Canada’s early commitment to invest in Quantum research and technology has made our nation one of the global leaders in that field, and the $360 million earmarked over a seven-year period to foster the National Quantum Strategy (NQS) is a testament to Canada’s leadership ambition in the future. This panel discussion will address the ever-evolving field of quantum science and technology and offer a unique opportunity to explore its policy dimensions including the current state of the field, its advancements and potential applications, and the overall impact of quantum innovations across various sectors. It will explore the transformative impact of quantum science and technologies, and the quantum revolution 2.0 on society, from diverse expert perspectives, using examples such as the impact of quantum computing on drug discovery or financial modelling, as well as discussing the ethical considerations and potential for misuse in surveillance or disinformation campaigns. This panel will examine a variety of policy and social implications of Quantum technologies, including the impact of foundational research and training, approaches to support Quantum industries at their development stages, risks, obstacles to commercialization, and opportunities for better inclusion.

Organized by: University of Ottawa

Speakers

Dr. Khabat Heshami
Research Officer at the National Research Council Canada [NRC]

Jeff Kinder
Project Director
Council of Canadian Academies

Professor Ebrahim Karimi
Co-Director the Nexus for Quantum Technologies Research Institute
University of Ottawa

Professor Ghassan Jabbour
Canada Research Chair in Engineered Advanced Materials and Devices
University of Ottawa – Faculty of Engineering

Rafal Janik
Chief Operating Officer
Xanadu

Tina Dekker
Research Fellow of the University of Ottawa Research Chair in Technology and Society

A few comments

I have highlighted speakers from two of the sessions as I’m going to make a few comments. Dr. Mona Nemer who’s part of the opening panel discussion and Canada’s Chief Science Advisor and Dr. Mehrdad Hariri, the founder and current Chief Executive Officer (CEO) for Canadian Science Policy Centre, which organizes the conference, are both from a region that is experiencing war.

I imagine this is a particularly difficult time for many people in Canada whose family and friends are from the various communities in that region. Along with many others, I hope one day there is peace for everyone. For anyone who might want a little insight into the issues, there’s an October 15, 2023 CBC (Canadian Broadcasting Corporation) radio programme segement on ‘The Sunday Magazine with Piya Chattopadhyay’,

How to maintain solidarity in Canadian Jewish and Palestinian communities

The events in Israel and Gaza in the last week have sparked high levels of grief, pain and outrage, deepening long-simmering divides in the region and closer to home. For years, Raja Khouri and Jeffrey Wilkinson have embarked on a joint project to bring North American Palestinian and Jewish communities together. They join Piya Chattopadhyay to discuss how the events of the last week are challenging that ongoing mission in Canada… and how to strive for solidarity in a time of grief and trauma.

You can find the almost 22 mins. programme here. Khouri’s and Wilkinson’s book, “The Wall Between: What Jews and Palestinians Don’t Want to Know about Each Other” was published on October 3, 2023 just days before the initial Hamas attacks,

The Wall Between is a book about the wall that exists between Jewish and Palestinian communities in the Diaspora. Distrust, enmity, and hate are common currencies. They manifest at university campuses, schools and school boards, at political events, on social media, and in academic circles. For Jews, Israel must exist; for Palestinians, the historic injustice being committed since 1948 must be reversed. Neither wants to know why the Other cannot budge on these issues. The wall is up.

These responses emanate, primarily, from the two “metanarratives” of Jews and Palestinians: the Holocaust and the Nakba. Virtually every response to the struggle, from a member of either community, can be traced back to issues of identity, trauma, and victimhood as they relate to their respective metanarrative. This book examines the role that propaganda and disinformation play in cementing trauma-induced fears for the purpose of making the task of humanizing and acknowledging the Other not just difficult, but almost inconceivable. The authors utilize recent cognitive research on the psychological and social barriers that keep Jews and Palestinians in their camps, walled off from each other. They present a clear way through, one that is justice-centered, rather than trauma-and propaganda-driven.

The authors have lived these principles and traveled this journey, away from their tribal traumas, through embracing the principles of justice. They insist that commitment to the Other means grappling with seemingly incompatible narratives until shared values are decided and acted upon. This book is a call to justice that challenges the status quo of Zionism while at the same time dealing directly with the complex histories that have created the situation today. The book is both realistic and hopeful—a guide for anyone who is open to new possibilities within the Israel-Palestine discourse in the West.

From the publisher’s author descriptions, “Jeffrey J. Wilkinson, PhD, is an American Jew who lives in Canada.” From his Wikipedia entry, “Raja G. Khouri is a Lebanese born Arab-Canadian..”

Also, thank you to Dr. Nemer and Dr. Hariri for the science policy work they’ve done here in Canada and their efforts to expand our discussions.

On a much lighter note, the ‘quantum session’ panel is dominated by academics from the University of Ottawa, a policy wonk from Ottawa, and a representative from a company based in Toronto (approximately 450 km from Ottawa by road). Couldn’t the panel organizers have made some effort to widen geographical representation? This seems particularly odd since the policy wonk (Jeff Kinder) is currently working with the Canadian Council of Academies’ Expert Panel on the Responsible Adoption of Quantum Technologies, which does have wider geographical representation.

This CSPC 2023 panel also seems to be another example of what appears to be a kind of rivalry between D-Wave Systems (based in the Vancouver area) and Xanadu Quantum Technologies (Toronto-based) or perhaps another east-west Canada rivalry. See my May 4, 2021 posting (scroll down to the ‘National Quantum Strategy’ subhead) for an overview of sorts of the seeming rivalry; there’s my July 26, 2022 posting for speculation about Canada’s quantum scene and what appears to be an east/west divide; and for a very brief comment in my April 17, 2023 posting (scroll down to the ‘The quantum crew’ subhead.)

As for the conference itself, there’s been a significant increase in conference registration fees this year (see my July 28, 203 posting) and, for the insatiable, there’s my March 29, 2023 posting featuring the call for submissions and topic streams.

The 2023 Canadian federal budget: science & technology of health, the clean economy, reconciliation, and more (1 of 2)

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The Canadian federal government released its 2023 budget on Tuesday, March 28, 2023. There were no flashy science research announcements in the budget. Trudeau and his team like to trumpet science initiatives and grand plans (even if they’re reannouncing something from a previous budget) but like last year—this year—not so much.

Consequently, this posting about the annual federal budget should have been shorter than usual. What happened?

Partly, it’s the military spending (chapter 5 of the budget in part 2 of this 2023 budget post). For those who are unfamiliar with the link between military scientific research and their impact on the general population, there are a number of inventions and innovations directly due to military research, e.g., plastic surgery, television, and the internet. (You can check a November 6, 2018 essay for The Conversation by Robert Kirby, Professor of Clinical Education and Surgery at Keele University, for more about the impact of World War 1 and medical research, “World War I: the birth of plastic surgery and modern anaesthesia.”)

So, there’s a lot to be found by inference. Consequently, I found Chapter 3 to also be unexpectedly rich in science and technology efforts.

Throughout both parts of this 2023 Canadian federal budget post, you will find excerpts from individual chapters of the federal budget followed my commentary directly after. My general commentary is reserved for the end.

Sometimes, I have included an item because it piqued my interest. E.g., Canadian agriculture is dependent on Russian fertilizer!!! News to me and I imagine many others. BTW, this budget aims to wean us from this dependency.

Chapter 2: Investing in Public Health Care and Affordable Dental Care

Here goes: from https://www.budget.canada.ca/2023/report-rapport/toc-tdm-en.html,

…

2.1 Investing in Public Health Care

…

Improving Canada’s Readiness for Health Emergencies

Vaccines and other cutting-edge life-science innovations have helped us to take control of the COVID-19 pandemic. To support these efforts, the federal government has committed significant funding towards the revitalization of Canada’s biomanufacturing sector through a Biomanufacturing and Life Sciences Strategy [emphasis mine]. To date, the government has invested more than $1.8 billion in 32 vaccine, therapeutic, and biomanufacturing projects across Canada, alongside $127 million for upgrades to specialized labs at universities across the country. Canada is building a life sciences ecosystem that is attracting major investments from leading global companies, including Moderna, AstraZeneca, and Sanofi.

To build upon the progress of the past three years, the government will explore new ways to be more efficient and effective in the development and production of the vaccines, therapies, and diagnostic tools that would be required for future health emergencies. As a first step, the government will further consult Canadian and international experts on how to best organize our readiness efforts for years to come. …

Gold rush in them thar life sciences

I have covered the rush to capitalize on Canadian life sciences research (with a special emphasis on British Columbia) in various posts including (amongst others): my December 30, 2020 posting “Avo Media, Science Telephone, and a Canadian COVID-19 billionaire scientist,” and my August 23, 2021 posting “Who’s running the life science companies’ public relations campaign in British Columbia (Vancouver, Canada)?” There’s also my August 20, 2021 posting “Getting erased from the mRNA/COVID-19 story,” highlighting how brutal the competition amongst these Canadian researchers can be.

Getting back to the 2023 budget, ‘The Biomanufacturing and Life Sciences Strategy’ mentioned in this latest budget was announced in a July 28, 2021 Innovation, Science and Economic Development Canada news release. You can find the strategy here and an overview of the strategy here. You may want to check out the overview as it features links to,

What We Heard Report: Results of the consultation on biomanufacturing and life sciences capacity in Canada

Ontario’s Strategy: Taking life sciences to the next level

Quebec’s Strategy: 2022–2025 Québec Life Sciences Strategy

Nova Scotia’s Strategy: BioFuture2030 Prince Edward Island’s Strategy:

The Prince Edward Island Bioscience Cluster [emphases mine]

2022 saw one government announcement concerning the strategy, from a March 3, 2022 Innovation, Science and Economic Development Canada news release, Note: Links have been removed,

Protecting the health and safety of Canadians and making sure we have the domestic capacity to respond to future health crises are top priorities of the Government of Canada. With the guidance of Canada’s Biomanufacturing and Life Sciences Strategy, the government is actively supporting the growth of a strong, competitive domestic life sciences sector, with cutting-edge biomanufacturing capabilities.

Today [March 3, 2022], the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced a $92 million investment in adMare BioInnovations to drive company innovation, scale-up and training activities in Canada’s life sciences sector. This investment will help translate commercially promising health research into innovative new therapies and will see Canadian anchor companies provide the training required and drive the growth of Canada’s life science companies.

…

The real action took place earlier this month (March 2023) just prior to the budget. Oddly, I can’t find any mention of these initiatives in the budget document. (Confession: I have not given the 2023 budget a close reading although I have been through the whole budget once and viewed individual chapters more closely a few times.)

This March 2, 2023 (?) Tri-agency Institutional Programs Secretariat news release kicked things off, Note 1: I found the date at the bottom of their webpage; Note 2: Links have been removed,

The Government of Canada’s main priority continues to be protecting the health and safety of Canadians. Throughout the pandemic, the quick and decisive actions taken by the government meant that Canada was able to scale up domestic biomanufacturing capacity, which had been in decline for over 40 years. Since then, the government is rebuilding a strong and competitive biomanufacturing and life sciences sector brick by brick. This includes strengthening the foundations of the life sciences ecosystem through the research and talent of Canada’s world-class postsecondary institutions and research hospitals, as well as fostering increased collaboration with innovative companies.

Today [March 2, 2023?], the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, and the Honourable Jean-Yves Duclos, Minister of Health, announced an investment of $10 million in support of the creation of five research hubs [emphasis mine]:

  • CBRF PRAIRIE Hub, led by the University of Alberta
  • Canada’s Immuno-Engineering and Biomanufacturing Hub, led by The University of British Columbia
  • Eastern Canada Pandemic Preparedness Hub, led by the Université de Montréal
  • Canadian Pandemic Preparedness Hub, led by the University of Ottawa and McMaster University
  • Canadian Hub for Health Intelligence & Innovation in Infectious Diseases, led by the University of Toronto

This investment, made through Stage 1 of the integrated Canada Biomedical Research Fund (CBRF) and Biosciences Research Infrastructure Fund (BRIF) competition, will bolster research and talent development efforts led by the institutions, working in collaboration with their partners. The hubs combine the strengths of academia, industry and the public and not-for-profit sectors to jointly improve pandemic readiness and the overall health and well-being of Canadians.

The multidisciplinary research hubs will accelerate the research and development of next-generation vaccines and therapeutics and diagnostics, while supporting training and development to expand the pipeline of skilled talent. The hubs will also accelerate the translation of promising research into commercially viable products and processes. This investment helps to strengthen the resilience of Canada’s life sciences sector by supporting leading Canadian research in innovative technologies that keep us safe and boost our economy.

Today’s [March 2, 2023?] announcement also launched Stage 2 of the CBRF-BRIF competition. This is a national competition that includes $570 million in available funding for proposals, aimed at cutting-edge research, talent development and research infrastructure projects associated with the selected research hubs. By strengthening research and talent capacity and leveraging collaborations across the entire biomanufacturing ecosystem, Canada will be better prepared to face future pandemics, in order to protect Canadian’s health and safety. 

Then, the Innovation, Science and Economic Development Canada’s March 9, 2023 news release made this announcement, Note: Links have been removed,

Since March 2020, major achievements have been made to rebuild a vibrant domestic life sciences ecosystem to protect Canadians against future health threats. The growth of the sector is a top priority for the Government of Canada, and with over $1.8 billion committed to 33 projects to boost our domestic biomanufacturing, vaccine and therapeutics capacity, we are strengthening our resiliency for current health emergencies and our readiness for future ones.

The COVID-19 Vaccine Task Force played a critical role in guiding and supporting the Government of Canada’s COVID-19 vaccine response. Today [March 9, 2023], recognizing the importance of science-based decisions, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, and the Honourable Jean-Yves Duclos, Minister of Health, are pleased to announce the creation of the Council of Expert Advisors (CEA). The 14 members of the CEA, who held their first official meeting earlier this week, will advise the Government of Canada on the long-term, sustainable growth of Canada’s biomanufacturing and life sciences sector, and on how to enhance our preparedness and capacity to protect the health and safety of Canadians.

The membership of the CEA comprises leaders with in-depth scientific, industrial, academic and public health expertise. The CEA co-chairs are Joanne Langley, Professor of Pediatrics and of Community Health and Epidemiology at the Dalhousie University Faculty of Medicine, and Division Head of Infectious Diseases at the IWK Health Centre; and Marco Marra, Professor in Medical Genetics at the University of British Columbia (UBC), UBC Canada Research Chair in Genome Science and distinguished scientist at the BC Cancer Foundation.

The CEA’s first meeting focused on the previous steps taken under Canada’s Biomanufacturing and Life Sciences Strategy and on its path forward. The creation of the CEA is an important milestone in the strategy, as it continues to evolve and adapt to new technologies and changing conditions in the marketplace and life sciences ecosystem. The CEA will also inform on investments that enhance capacity across Canada to support end-to-end production of critical vaccines, therapeutics and essential medical countermeasures, and to ensure that Canadians can reap the full economic benefits of the innovations developed, including well-paying jobs.

As I’m from British Columbia, I’m highlighting this University of British Columbia (UBC) March 17, 2023 news release about their involvement, Note: Links have been removed,

Canada’s biotech ecosystem is poised for a major boost with the federal government announcement today that B.C. will be home to Canada’s Immuno-Engineering and Biomanufacturing Hub (CIEBH).

The B.C.-based research and innovation hub, led by UBC, brings together a coalition of provincial, national and international partners to position Canada as a global epicentre for the development and manufacturing of next-generation immune-based therapeutics.

A primary goal of CIEBH is to establish a seamless drug development pipeline that will enable Canada to respond to future pandemics and other health challenges in fewer than 100 days.

This hub will build on the strengths of B.C.’s biotech and life sciences industry, and those of our national and global partners, to make Canada a world leader in the development of lifesaving medicines,” said Dr. Deborah Buszard, interim president and vice-chancellor of UBC. “It’s about creating a healthier future for all Canadians. Together with our outstanding alliance of partners, we will ensure Canada is prepared to respond rapidly to future health challenges with homegrown solutions.”

CIEBH is one of five new research hubs announced by the federal government that will work together to improve pandemic readiness and the overall health and well-being of Canadians. Federal funding of $570 million is available over the next four years to support project proposals associated with these hubs in order to advance Canada’s Biomanufacturing and Life Sciences Strategy.

…

More than 50 organizations representing the private, public, not-for-profit and academic sectors have come together to form the hub, creating a rich environment that will bolster biomedical innovation in Canada. Among these partners are leading B.C. biotech companies that played a key role in Canada’s COVID-19 pandemic response and are developing cutting-edge treatments for a range of human diseases.

…

CIEBH, led by UBC, will further align the critical mass of biomedical research strengths concentrated at B.C. academic institutions, including the B.C. Institute of Technology, Simon Fraser University and the University of Victoria, as well as the clinical expertise of B.C. research hospitals and health authorities. With linkages to key partners across Canada, including Dalhousie University, the University of Waterloo, and the Vaccine and Infectious Disease Organization, the hub will create a national network to address gaps in Canada’s drug development pipeline.

…

In recent decades, B.C. has emerged as a global leader in immuno-engineering, a field that is transforming how society treats disease by harnessing and modulating the immune system.

B.C. academic institutions and prominent Canadian companies like Precision NanoSystems, Acuitas Therapeutics and AbCellera have developed significant expertise in advanced immune-based therapeutics such as lipid nanoparticle- and mRNA-based vaccines, engineered antibodies, cell therapies and treatments for antimicrobial resistant infections. UBC professor Dr. Pieter Cullis, a member of CIEBH’s core scientific team, has been widely recognized for his pioneering work developing the lipid nanoparticle delivery technology that enables mRNA therapeutics such as the highly effective COVID-19 mRNA vaccines.

…

As noted previously, I’m a little puzzled that the federal government didn’t mention the investment in these hubs in their budget. They usually trumpet these kinds of initiatives.

On a related track, I’m even more puzzled that the province of British Columbia does not have its own life sciences research strategy in light of that sector’s success. Certainly it seems that Ontario, Quebec, Nova Scotia, and Prince Edward are all eager to get a piece of the action. Still, there is a Life Sciences in British Columbia: Sector Profile dated June 2020 and an undated (likely from some time between July 2017 to January 2020 when Bruce Ralston whose name is on the document was the relevant cabinet minister) British Columbia Technology and Innovation Policy Framework.

In case you missed the link earlier, see my August 23, 2021 posting “Who’s running the life science companies’ public relations campaign in British Columbia (Vancouver, Canada)?” which includes additional information about the BC life sciences sector, federal and provincial funding, the City of Vancouver’s involvement, and other related matters.

Chapter 3: A Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy

The most science-focused information is in Chapter 3, from https://www.budget.canada.ca/2023/report-rapport/toc-tdm-en.html,

3.2 A Growing, Clean Economy

More than US$100 trillion in private capital is projected to be spent between now and 2050 to build the global clean economy.

Canada is currently competing with the United States, the European Union, and countries around the world for our share of this investment. To secure our share of this global investment, we must capitalize on Canada’s competitive advantages, including our skilled and diverse workforce, and our abundance of critical resources that the world needs.

The federal government has taken significant action over the past seven years to support Canada’s net-zero economic future. To build on this progress and support the growth of Canada’s clean economy, Budget 2023 proposes a range of measures that will encourage businesses to invest in Canada and create good-paying jobs for Canadian workers.

This made-in-Canada plan follows the federal tiered structure to incent the development of Canada’s clean economy and provide additional support for projects that need it. This plan includes:

  • Clear and predictable investment tax credits to provide foundational support for clean technology manufacturing, clean hydrogen, zero-emission technologies, and carbon capture and storage;
  • The deployment of financial instruments through the Canada Growth Fund, such as contracts for difference, to absorb certain risks and encourage private sector investment in low-carbon projects, technologies, businesses, and supply chains; and,
  • Targeted clean technology and sector supports delivered by Innovation, Science and Economic Development Canada to support battery manufacturing and further advance the development, application, and manufacturing of clean technologies.

Canada’s Potential in Critical Minerals

As a global leader in mining, Canada is in a prime position to provide a stable resource base for critical minerals [emphasis mine] that are central to major global industries such as clean technology, auto manufacturing, health care, aerospace, and the digital economy. For nickel and copper alone, the known reserves in Canada are more than 10 million tonnes, with many other potential sources at the exploration stage.

The Buy North American provisions for critical minerals and electric vehicles in the U.S. Inflation Reduction Act will create opportunities for Canada. In particular, U.S. acceleration of clean technology manufacturing will require robust supply chains of critical minerals that Canada has in abundance. However, to fully unleash Canada’s potential in critical minerals, we need to ensure a framework is in place to accelerate private investment.

Budget 2022 committed $3.8 billion for Canada’s Critical Minerals Strategy to provide foundational support to Canada’s mining sector to take advantage of these new opportunities. The Strategy was published in December 2022.

On March 24, 2023, the government launched the Critical Minerals Infrastructure Fund [emphasis mine; I cannot find a government announcement/news release for this fund]—a new fund announced in Budget 2022 that will allocate $1.5 billion towards energy and transportation projects needed to unlock priority mineral deposits. The new fund will complement other clean energy and transportation supports, such as the Canada Infrastructure Bank and the National Trade Corridors Fund, as well as other federal programs that invest in critical minerals projects, such as the Strategic Innovation Fund.

The new Investment Tax Credit for Clean Technology Manufacturing proposed in Budget 2023 will also provide a significant incentive to boost private investment in Canadian critical minerals projects and create new opportunities and middle class jobs in communities across the country.

An Investment Tax Credit for Clean Technology Manufacturing

Supporting Canadian companies in the manufacturing and processing of clean technologies, and in the extraction and processing of critical minerals, will create good middle class jobs for Canadians, ensure our businesses remain competitive in major global industries, and support the supply chains of our allies around the world.

While the Clean Technology Investment Tax Credit, first announced in Budget 2022, will provide support to Canadian companies adopting clean technologies, the Clean Technology Manufacturing Investment Tax Credit will provide support to Canadian companies that are manufacturing or processing clean technologies and their precursors.

  • Budget 2023 proposes a refundable tax credit equal to 30 per cent of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals, including:
    • Extraction, processing, or recycling of critical minerals essential for clean technology supply chains, specifically: lithium, cobalt, nickel, graphite, copper, and rare earth elements;
    • Manufacturing of renewable or nuclear energy equipment;
    • Processing or recycling of nuclear fuels and heavy water; [emphases mine]
    • Manufacturing of grid-scale electrical energy storage equipment;
    • Manufacturing of zero-emission vehicles; and,
    • Manufacturing or processing of certain upstream components and materials for the above activities, such as cathode materials and batteries used in electric vehicles.

The investment tax credit is expected to cost $4.5 billion over five years, starting in 2023-24, and an additional $6.6 billion from 2028-29 to 2034-35. The credit would apply to property that is acquired and becomes available for use on or after January 1, 2024, and would no longer be in effect after 2034, subject to a phase-out starting in 2032.

…

3.4 Reliable Transportation and Resilient Infrastructure

…

Supporting Resilient Infrastructure Through Innovation

The Smart Cities Challenge [emphasis mine] was launched in 2017 to encourage cities to adopt new and innovative approaches to improve the quality of life for their residents. The first round of the Challenge resulted in $75 million in prizes across four winning applicants: Montreal, Quebec; Guelph, Ontario; communities of Nunavut; and Bridgewater, Nova Scotia.

New and innovative solutions are required to help communities reduce the risks and impacts posed by weather-related events and disasters triggered by climate change. To help address this issue, the government will be launching a new round of the Smart Cities Challenge later this year, which will focus on using connected technologies, data, and innovative approaches to improve climate resiliency.

…

3.5 Investing in Tomorrow’s Technology

With the best-educated workforce on earth, world-class academic and research institutions, and robust start-up ecosystems across the country, Canada’s economy is fast becoming a global technology leader – building on its strengths in areas like artificial intelligence. Canada is already home to some of the top markets for high-tech careers in North America, including the three fastest growing markets between 2016 and 2021: Vancouver, Toronto, and Quebec City.

However, more can be done to help the Canadian economy reach its full potential. Reversing a longstanding trend of underinvestment in research and development by Canadian business [emphasis mine] is essential our long-term economic growth.

Budget 2023 proposes new measures to encourage business innovation in Canada, as well as new investments in college research and the forestry industry that will help to build a stronger and more innovative Canadian economy.

Attracting High-Tech Investment to Canada

In recent months, Canada has attracted several new digital and high-tech projects that will support our innovative economy, including:

  • Nokia: a $340 million project that will strengthen Canada’s position as a leader in 5G and digital innovation;
  • Xanadu Quantum Technologies: a $178 million project that will support Canada’s leadership in quantum computing;
  • Sanctuary Cognitive Systems Corporation: a $121 million project that will boost Canada’s leadership in the global Artificial Intelligence market; and,
  • EXFO: a $77 million project to create a 5G Centre of Excellence that aims to develop one of the world’s first Artificial Intelligence-based automated network solutions.

Review of the Scientific Research and Experimental Development Tax Incentive Program

The Scientific Research and Experimental Development (SR&ED) tax incentive program continues to be a cornerstone of Canada’s innovation strategy by supporting research and development with the goal of encouraging Canadian businesses of all sizes to invest in innovation that drives economic growth.

In Budget 2022, the federal government announced its intention to review the SR&ED program to ensure it is providing adequate support and improving the development, retention, and commercialization of intellectual property, including the consideration of adopting a patent box regime. [emphasis mine] The Department of Finance will continue to engage with stakeholders on the next steps in the coming months.

Modernizing Canada’s Research Ecosystem

Canada’s research community and world-class researchers solve some of the world’s toughest problems, and Canada’s spending on higher education research and development, as a share of GDP, has exceeded all other G7 countries. 

Since 2016, the federal government has committed more than $16 billion of additional funding to support research and science across Canada. This includes:

  • Nearly $4 billion in Budget 2018 for Canada’s research system, including $2.4 billion for the Canada Foundation for Innovation and the granting councils—the Natural Sciences and Engineering Research Council of Canada, the Social Sciences and Humanities Research Council of Canada and the Canadian Institutes of Health Research; [emphases mine]
  • More than $500 million in Budget 2019 in total additional support to third-party research and science organizations, in addition to the creation of the Strategic Science Fund, which will announce successful recipients later this year;
  • $1.2 billion in Budget 2021 for Pan-Canadian Genomics and Artificial Intelligence Strategies, and a National Quantum Strategy;
  • $1 billion in Budget 2021 to the granting councils and the Canada Foundation for Innovation for life sciences researchers and infrastructure; and,
  • The January 2023 announcement of Canada’s intention to become a full member in the Square Kilometre Array Observatory, which will provide Canadian astronomers with access to its ground-breaking data. The government is providing up to $269.3 million to support this collaboration.

In order to maintain Canada’s research strength—and the knowledge, innovations, and talent it fosters—our systems to support science and research must evolve. The government has been consulting with stakeholders, including through the independent Advisory Panel on the Federal Research Support System, to seek advice from research leaders on how to further strengthen Canada’s research support system.

The government is carefully considering the Advisory Panel’s advice, with more detail to follow in the coming months on further efforts to modernize the system.

Using College Research to Help Businesses Grow

Canada’s colleges, CEGEPs, and polytechnic institutes use their facilities, equipment, and expertise to solve applied research problems every day. Students at these institutions are developing the skills they need to start good careers when they leave school, and by partnering with these institutions, businesses can access the talent and the tools they need to innovate and grow.

  • To help more Canadian businesses access the expertise and research and development facilities they need, Budget 2023 proposes to provide $108.6 million over three years, starting in 2023-24, to expand the College and Community Innovation Program, administered by the Natural Sciences and Engineering Research Council.

Supporting Canadian Leadership in Space

For decades, Canada’s participation in the International Space Station has helped to fuel important scientific advances, and showcased Canada’s ability to create leading-edge space technologies, such as Canadarm2. Canadian space technologies have inspired advances in other fields, such as the NeuroArm, the world’s first robot capable of operating inside an MRI, making previously impossible surgeries possible.

  • Budget 2023 proposes to provide $1.1 billion [emphasis mine] over 14 years, starting in 2023-24, on a cash basis, to the Canadian Space Agency [emphasis mine] to continue Canada’s participation in the International Space Station until 2030.

Looking forward, humanity is returning to the moon [emphasis mine]. Canada intends to join these efforts by contributing a robotic lunar utility vehicle to perform key activities in support of human lunar exploration. Canadian participation in the NASA-led Lunar Gateway station—a space station that will orbit the moon—also presents new opportunities for innovative advances in science and technology. Canada is providing Canadarm3 to the Lunar Gateway, and a Canadian astronaut will join Artemis II, the first crewed mission to the moon since 1972. In Budget 2023, the government is providing further support to assist these missions.

  • Budget 2023 proposes to provide $1.2 billion [emphasis mine] over 13 years, starting in 2024-25, to the Canadian Space Agency to develop and contribute a lunar utility vehicle to assist astronauts on the moon.
  • Budget 2023 proposes to provide $150 million [emphasis mine[ over five years, starting in 2023-24, to the Canadian Space Agency for the next phase of the Lunar Exploration Accelerator Program to support the Canada’s world-class space industry and help accelerate the development of new technologies.
  • Budget 2023 also proposes to provide $76.5 million [emphasis mine] over eight years, starting in 2023-24, on a cash basis, to the Canadian Space Agency in support of Canadian science on the Lunar Gateway station.

Investing in Canada’s Forest Economy

The forestry sector plays an important role in Canada’s natural resource economy [emphasis mine], and is a source of good careers in many rural communities across Canada, including Indigenous communities. As global demand for sustainable forest products grows, continued support for Canada’s forestry sector will help it innovate, grow, and support good middle class jobs for Canadians.

  • Budget 2023 proposes to provide $368.4 million over three years, starting in 2023-24, with $3.1 million in remaining amortization, to Natural Resources Canada to renew and update forest sector support, including for research and development, Indigenous and international leadership, and data. Of this amount, $30.1 million would be sourced from existing departmental resources.

Establishing the Dairy Innovation and Investment Fund

The dairy sector is facing a growing surplus of solids non-fat (SNF) [emphasis mine], a by-product of dairy processing. Limited processing capacity for SNF results in lost opportunities for dairy processors and farmers.

  • Budget 2023 proposes to provide $333 million over ten years, starting in 2023-24, for Agriculture and Agri-Food Canada to support investments in research and development of new products based on SNF, market development for these products, and processing capacity for SNF-based products more broadly.

Supporting Farmers for Diversifying Away from Russian Fertilizers

Russia’s illegal invasion of Ukraine has resulted in higher prices for nitrogen fertilizers, which has had a notable impact on Eastern Canadian farmers who rely heavily on imported fertilizer.

  • Budget 2023 proposes to provide $34.1 million over three years, starting in 2023-24, to Agriculture and Agri-Food Canada’s On-Farm Climate Action Fund to support adoption of nitrogen management practices by Eastern Canadian farmers, that will help optimize the use and reduce the need for fertilizer.

Providing Interest Relief for Agricultural Producers

Farm production costs have increased in Canada and around the world, including as a result Russia’s illegal invasion of Ukraine and global supply chain disruptions. It is important that Canada’s agricultural producers have access to the cash flow they need to cover these costs until they sell their products.

  • Budget 2023 proposes to provide $13 million in 2023-24 to Agriculture and Agri-Food Canada to increase the interest-free limit for loans under the Advance Payments Program from $250,000 to $350,000 for the 2023 program year.

Additionally, the government will consult with provincial and territorial counterparts to explore ways to extend help to small agricultural producers who demonstrate urgent financial need.

Maintaining Livestock Sector Exports with a Foot-and-Mouth Disease Vaccine Bank

Foot-and-Mouth Disease (FMD) is a highly transmissible illness that can affect cattle, pigs, and other cloven-hoofed animals. Recent outbreaks in Asia and Africa have increased the risk of global spread, and a FMD outbreak in Canada would cut off exports for all livestock sectors, with major economic implications. However, the impact of a potential outbreak would be significantly reduced with the early vaccination of livestock. 

  • Budget 2023 proposes to provide $57.5 million over five years, starting in 2023-24, with $5.6 million ongoing, to the Canadian Food Inspection Agency to establish a FMD vaccine bank for Canada, and to develop FMD response plans. The government will seek a cost-sharing arrangement with provinces and territories.

Canadian economic theory (the staples theory), mining, nuclear energy, quantum science, and more

Critical minerals are getting a lot of attention these days. (They were featured in the 2022 budget, see my April 19, 2022 posting, scroll down to the Mining subhead.) This year, US President Joe Biden, in his first visit to Canada as President, singled out critical minerals at the end of his 28 hour state visit (from a March 24, 2023 CBC news online article by Alexander Panetta; Note: Links have been removed),

There was a pot of gold at the end of President Joe Biden’s jaunt to Canada. It’s going to Canada’s mining sector.

The U.S. military will deliver funds this spring to critical minerals projects in both the U.S. and Canada. The goal is to accelerate the development of a critical minerals industry on this continent.

The context is the United States’ intensifying rivalry with China.

The U.S. is desperate to reduce its reliance on its adversary for materials needed to power electric vehicles, electronics and many other products, and has set aside hundreds of millions of dollars under a program called the Defence Production Act.

The Pentagon already has told Canadian companies they would be eligible to apply. It has said the cash would arrive as grants, not loans.

On Friday [March 24, 2023], before Biden left Ottawa, he promised they’ll get some.

The White House and the Prime Minister’s Office announced that companies from both countries will be eligible this spring for money from a $250 million US fund.

Which Canadian companies? The leaders didn’t say. Canadian officials have provided the U.S. with a list of at least 70 projects that could warrant U.S. funding.

…

“Our nations are blessed with incredible natural resources,” Biden told Canadian parliamentarians during his speech in the House of Commons.

“Canada in particular has large quantities of critical minerals [emphasis mine] that are essential for our clean energy future, for the world’s clean energy future.

…

I don’t believe that Joe Biden has ever heard of the Canadian academic Harold Innis (neither have most Canadians) but Biden is echoing a rather well known theory, in some circles, about Canada’s economy (from the Harold Innis Wikipedia entry),

Harold Adams Innis FRSC (November 5, 1894 – November 9, 1952) was a Canadian professor of political economy at the University of Toronto and the author of seminal works on media, communication theory, and Canadian economic history. He helped develop the staples thesis, which holds that Canada’s culture, political history, and economy have been decisively influenced by the exploitation and export of a series of “staples” such as fur, fish, lumber, wheat, mined metals, and coal. The staple thesis dominated economic history in Canada from the 1930s to 1960s, and continues to be a fundamental part of the Canadian political economic tradition.[8] [all emphases mine]

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The staples theory is referred to informally as “hewers of wood and drawers of water.”

Critical Minerals Infrastructure Fund

I cannot find an announcement for this fund (perhaps it’s a US government fund?) but there is a March 7, 2023 Natural Resources Canada news release, Note: A link has been removed,

…

Simply put, our future depends on critical minerals. The Government of Canada is committed to investing in this future, which is why the Canadian Critical Minerals Strategy — launched by the Honourable Jonathan Wilkinson, Minister of Natural Resources, in December 2022 — is backed by up to $3.8 billion in federal funding. [emphases mine] Today [March 7, 2023], Minister Wilkinson announced more details on the implementation of this Strategy. Over $344 million in funding is supporting the following five new programs and initiatives:

  • Critical Minerals Technology and Innovation Program – $144.4 million for the research, development, demonstration, commercialization and adoption of new technologies and processes that support sustainable growth in Canadian critical minerals value chains and associated innovation ecosystems. 
  • Critical Minerals Geoscience and Data Initiative – $79.2 million to enhance the quality and availability of data and digital technologies to support geoscience and mapping that will accelerate the efficient and effective development of Canadian critical minerals value chains, including by identifying critical minerals reserves and developing pathways for sustainable mineral development. 
  • Global Partnerships Program – $70 million to strengthen Canada’s global leadership role in enhancing critical minerals supply chain resiliency through international collaborations related to critical minerals. 
  • Northern Regulatory Initiative – $40 million to advance Canada’s northern and territorial critical minerals agenda by supporting regulatory dialogue, regional studies, land-use planning, impact assessments and Indigenous consultation.
  • Renewal of the Critical Minerals Centre of Excellence (CMCE) – $10.6 million so the CMCE can continue the ongoing development and implementation of the Canadian Critical Minerals Strategy.

Commentary from the mining community

Mariaan Webb wrote a March 29,2023 article about the budget and the response from the mining community for miningweekly.com, Note: Links have been removed,

The 2023 Budget, delivered by Finance Minister Chrystia Freeland on Tuesday, bolsters the ability of the Canadian mining sector to deliver for the country, recognising the industry’s central role in enabling the transition to a net-zero economy, says Mining Association of Canada (MAC) president and CEO Pierre Gratton.

“Without mining, there are no electric vehicles, no clean power from wind farms, solar panels or nuclear energy, [emphasis mine] and no transmission lines,” said Gratton.

…

What kind of nuclear energy?

There are two kinds of nuclear energy: fission and fusion. (Fission is the one where the atom is split and requires minerals. Fusion energy is how stars are formed. Much less polluting than fission energy, at this time it is not a commercially viable option nor is it close to being so.)

As far as I’m aware, fusion energy does not require any mined materials. So, Gratton appears to be referring to fission nuclear energy when he’s talking about the mining sector and critical minerals.

I have an October 28, 2022 posting, which provides an overview of fusion energy and the various projects designed to capitalize on it.

Smart Cities in Canada

I was happy to be updated on the Smart Cities Challenge. When I last wrote about it (a March 20, 2018 posting; scroll down to the “Smart Cities, the rest of the country, and Vancouver” subhead). I notice that the successful applicants are from Montreal, Quebec; Guelph, Ontario; communities of Nunavut; and Bridgewater, Nova Scotia. It’s about time northern communities got some attention. It’s hard not to notice that central Canada (i.e., Ontario and Quebec) again dominates.

I look forward to hearing more about the new, upcoming challenge.

The quantum crew

I first made note of what appears to be a fracture in the Canadian quantum community in a May 4, 2021 posting (scroll down to the National Quantum Strategy subhead) about the 2021 budget. I made note of it again in a July 26, 2022 posting (scroll down to the Canadian quantum scene subhead).

In my excerpts from the 3.5 Investing in Tomorrow’s Technology section of the 2023 budget, Xanadu Quantum Technologies, headquartered in Toronto, Ontario is singled out with three other companies (none of which are in the quantum computing field). Oddly, D-Wave Systems (located in British Columbia), which as far as I’m aware is the star of Canada’s quantum computing sector, has yet to be singled out in any budget I’ve seen yet. (I’m estimating I’ve reviewed about 10 budgets.)

Canadians in space

Shortly after the 2023 budget was presented, Canadian astronaut Jeremy Hansen was revealed as one of four astronauts to go on a mission to orbit the moon. From a Canadian Broadcasting (CBC) April 3, 2023 news online article by Nicole Mortillaro (Note: A link has been removed),

Jeremy Hansen is heading to the moon.

The 47-year old Canadian astronaut was announced today as one of four astronauts — along with Christina Koch, Victor Glover and Reid Wiseman — who will be part of NASA’s [US National Aeronautics and Space Administration] Artemis II mission.

…

Hansen was one of four active Canadian astronauts that included Jennifer Sidey-Gibbons, Joshua Kutryk and David Saint-Jacques vying for a seat on the Orion spacecraft set to orbit the moon.

…

Artemis II is the second step in NASA’s mission to return astronauts to the surface of the moon. 

The astronauts won’t be landing, but rather they will orbit for 10 days in the Orion spacecraft, testing key components to prepare for Artemis III that will place humans back on the moon some time in 2025 for the first time since 1972.

Canada gets a seat on Artemis II due to its contributions to Lunar Gateway, a space station that will orbit the moon. But Canada is also building a lunar rover provided by Canadensys Aerospace.

…

On Monday [April 3, 2023], Hansen noted there are two reasons a Canadian is going to the moon, adding that it “makes me smile when I say that.”

The first, he said, is American leadership, and the decision to curate an international team.

“The second reason is Canada’s can-do attitude,” he said proudly.

…

In addition to our ‘can-do attitude,” we’re also spending some big money, i.e., the Canadian government has proposed in its 2023 budget some $2.5B to various space and lunar efforts over the next several years.

Chapter 3 odds and sods

First seen in the 2022 budget, the patent box regime makes a second appearance in the 2023 budget where apparently ‘stakeholders will be engaged’ later this year. At least, they’re not rushing into this. (For the original announcement and an explanation of a patent box regime, see my April 19, 2022 budget review; scroll down to the Review of Tax Support to R&D and Intellectual Property subhead.)

I’m happy to see the Dairy Innovation and Investment Fund. I’m particularly happy to see a focus on finding uses for solids non-fat (SNF) by providing “$333 million over ten years, starting in 2023-24, … research and development of new products based on SNF [emphasis mine], market development for these products, and processing capacity for SNF-based products more broadly.”

This investment contrasts with the approach to cellulose nanocrystals (CNC) derived from wood (i.e., the forest economy), where the Canadian government invested heavily in research and even opened a production facility under the auspices of a company, CelluForce. It was a little problematic.

By 2013, the facility had a stockpile of CNC and nowhere to sell it. That’s right, no market for CNC as there had been no product development. (See my May 8, 2012 posting where that lack is mentioned, specifically there’s a quote from Tim Harper in an excerpted Globe and Mail article. My August 17, 2016 posting notes that the stockpile was diminishing. The CelluForce website makes no mention of it now in 2023.)

It’s good to see the government emphasis on research into developing products for SNFs especially after the CelluForce stockpile and in light of US President Joe Biden’s recent enthusiasm over our critical minerals.

Chapter 4: Advancing Reconciliation and Building a Canada That Works for Everyone

Chapter 4: Advancing Reconciliation and Building a Canada That Works for Everyone offers this, from https://www.budget.canada.ca/2023/report-rapport/toc-tdm-en.html,

4.3 Clean Air and Clean Water

…

Progress on Biodiversity

Montreal recently hosted the Fifteenth Conference of the Parties (COP15) to the United Nations Convention on Biological Diversity, which led to a new Post-2020 Global Biodiversity Framework. During COP15, Canada announced new funding for biodiversity and conservation measures at home and abroad that will support the implementation of the Global Biodiversity Framework, including $800 million to support Indigenous-led conservation within Canada through the innovative Project Finance for Permanence model.

Protecting Our Freshwater

Canada is home to 20 per cent of the world’s freshwater supply. Healthy lakes and rivers are essential to Canadians, communities, and businesses across the country. Recognizing the threat to freshwater caused by climate change and pollution, the federal government is moving forward to establish a new Canada Water Agency and make major investments in a strengthened Freshwater Action Plan.

  • Budget 2023 proposes to provide $650 million over ten years, starting in 2023-24, to support monitoring, assessment, and restoration work in the Great Lakes, Lake Winnipeg, Lake of the Woods, St. Lawrence River, Fraser River, Saint John River, Mackenzie River, and Lake Simcoe. Budget 2023 also proposes to provide $22.6 million over three years, starting in 2023-24, to support better coordination of efforts to protect freshwater across Canada.
  • Budget 2023 also proposes to provide $85.1 million over five years, starting in 2023-24, with $0.4 million in remaining amortization and $21 million ongoing thereafter to support the creation of the Canada Water Agency [emphasis mine], which will be headquartered in Winnipeg. By the end of 2023, the government will introduce legislation that will fully establish the Canada Water Agency as a standalone entity.

…

Cleaner and Healthier Ports

Canada’s ports are at the heart of our supply chains, delivering goods to Canadians and allowing our businesses to reach global markets. As rising shipping levels enable and create economic growth and good jobs, the federal government is taking action to protect Canada’s coastal ecosystems and communities.

  • Budget 2023 proposes to provide $165.4 million over seven years, starting in 2023-24, to Transport Canada to establish a Green Shipping Corridor Program to reduce the impact of marine shipping on surrounding communities and ecosystems. The program will help spur the launch of the next generation of clean ships, invest in shore power technology, and prioritize low-emission and low-noise vessels at ports.

Water, water everywhere

I wasn’t expecting to find mention of establishing a Canada Water Agency and details are sketchy other than, It will be in Winnipeg, Manitoba and there will be government funding. Fingers crossed that this agency will do some good work (whatever that might be). Personally, I’d like to see some action with regard to droughts.

In British Columbia (BC) where I live and which most of us think of as ‘water rich’, is suffering under conditions such that our rivers and lakes are at very low levels according to an April 6, 2023 article by Glenda Luymes for the Vancouver Sun (print version, p. A4),

…

On the North American WaterWatch map, which codes river flows using a series of coloured dots, high flows are represented in various shades of blue while low flows are represented in red hues. On Wednesday [April 5, 2023], most of BC was speckled red, brown and orange, with the majority of the province’s rivers flowing “much below normal.”

“It does not bode well for the fish populations,” said Marvin Rosenau, a fisheries and ecosystems instructor at BCIT [British Columbia Institute of Technology]. …

Rosenau said low water last fall [2022], when much of BC was in the grip of drought, decreased salmon habitat during spawning season. …

…

BC has already seen small early season wildfires, including one near Merritt last weekend [April 1/2, 2023]. …

Getting back to the Canada Water Agency, there’s this March 29, 2023 CBC news online article by Bartley Kives,

The 2023 federal budget calls for a new national water agency to be based in Winnipeg, provided Justin Trudeau’s Liberal government remains in power long enough to see it established [emphasis mine] in the Manitoba capital.

The budget announced on Tuesday [March 28, 2023] calls for the creation of the Canada Water Agency, a new federal entity with a headquarters in Winnipeg.

While the federal government is still determining precisely what the new agency will do, one Winnipeg-based environmental organization expects it to become a one-stop shop for water science, water quality assessment and water management [emphasis mine].

“This is something that we don’t actually have in this country at the moment,” said Matt McCandless, a vice-president for the non-profit International Institute for Sustainable Development.

Right now, municipalities, provinces and Indigenous authorities take different approaches to managing water quality, water science, flooding and droughts, said McCandless, adding a national water agency could provide more co-ordination.

…

For now, it’s unknown how many employees will be based at the Canada Water Agency’s Winnipeg headquarters. According to the budget, legislation to create the agency won’t be introduced until later this year [emphasis mine].

That means the Winnipeg headquarters likely won’t materialize before 2024, one year before the Trudeau minority government faces re-election, assuming it doesn’t lose the confidence of the House of Commons beforehand [emphasis mine].

Nonetheless, several Canadian cities and provinces were vying for the Canada Water Agency’s headquarters, including Manitoba.

…

The budget also calls for $65 million worth of annual spending on lake science and restoration, with an unstated fraction of that cash devoted to Lake Winnipeg.

McCandless calls the spending on water science an improvement over previous budgets.

…

Kives seems a tad jaundiced but you get that way (confession: I have too) when covering government spending promises.

Part 2 (military spending and general comments) will be posted sometime during the week of April 24-28, 2023.

Canada’s 2021 budget and science

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

Maybe a little prescient?

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

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

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

Science in the 2021 budget (a few highlights)

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

4.6 Investing in World-leading Research and Innovation

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

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

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

Supporting Innovation and Industrial Transformation

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

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

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

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

Renewing the Pan-Canadian Artificial Intelligence Strategy

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

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

Launching a National Quantum Strategy

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

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

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

Revitalizing the Canadian Photonics Fabrication Centre

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

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

Launching a Pan-Canadian Genomics Strategy

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

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

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

Conducting Clinical Trials

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

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

Supporting the Innovation Superclusters Initiative

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

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

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

Promoting Canadian Intellectual Property

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

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

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

Capitalizing on Space-based Earth Observation

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

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

Science and Technology Collaboration with Israeli Firms

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

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

4.7 Supporting a Digital Economy

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

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

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

Accelerating Broadband for Everyone

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

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

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

Establishing a New Data Commissioner

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

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

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

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

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

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

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

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

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

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

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

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

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

National Quantum Strategy

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

Recommendation 1: Quantum Advisory Board

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

Recommendation 2: Continue Supporting Existing Research Centres

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

Recommendation 3: National Quantum Computing Access Centre

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

Recommendation 4: National Quantum Technology Roundtable

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

Recommendation 5: New Quantum Computing Institute in Toronto

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

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

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

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

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

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

Pan-Canadian Genomics Strategy

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

List of Recommendations:

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

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

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

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

…

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

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

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

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

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

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

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

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

Canadian business innovation, science, and innovation—oxymoron?

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

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

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

How’s that for a parting shot?

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

…

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

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

…

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

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

A few final comments

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

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

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

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

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

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

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

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

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

…

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

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

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

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

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

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