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Chapter 4 - A Productive, Growing and Sustainable Economy
Investing in Ideas and Enabling Technologies

Highlights

• $375 million over five years for the three federal granting councils.

• $75 million over five years to help meet the indirect costs of federally funded research at universities and research hospitals.

• $126 million over five years for world-leading particle physics research at the Tri-University Meson Facility (TRIUMF) science facility.

• $10 million to the Terry Fox Foundation in recognition of the 25th anniversary of the Terry Fox Marathon of Hope.

• $30 million to the Canadian Academies of Science to provide independent scientific assessments over the next ten years.

• $165 million to Genome Canada to sustain its support for breakthrough genomics research.

• $20 million to the Precarn in support of research and development in intelligent systems and advanced robotics.

• Substantial investments in environmental technology development and application as referenced in Chapter 5.

Introduction

The benefits of knowledge generated through research extend to all areas of Canadians’ lives. Research is accelerating the development of transformative technologies to address Canada’s environmental challenges while stimulating economic growth. Moreover, as Canada’s working population as a share of the total population declines, the productivity gains fuelled by new scientific discoveries will increasingly drive our economic success.

By building a world-class research environment in all areas of the country, Canada can ensure access to the latest knowledge, develop groundbreaking ideas, and attract the skilled workforce needed to compete and innovate. A world-class research environment is composed of several highly complementary elements: exceptional researchers, leading-edge equipment and facilities, and strong support mechanisms that ensure Canada can reap the fruits of our research investment. Notably, this includes support for the commercialization of research discoveries—transforming ideas into the new products, services and technologies that generate economic and social benefits.

The Government of Canada has made substantial investments in recent years to create a world-class research environment. By 2006–07, as a result of past investments, annual federal support for research in the higher education sector will be almost $2 billion more than in 1997–98 (see Table 4.3), representing a cumulative incremental investment of more than $11 billion over that period. Canada now ranks among the world’s top five nations, in terms of publicly performed research (at universities, research hospitals and government laboratories) as a proportion of gross domestic product, according to the Organisation for Economic Co-operation and Development. By this measure, Canada also ranks first among G-7 nations.

To sustain the momentum created by previous investments, Budget 2005 provides an additional $810 million in this and the next five years to continue strengthening Canada’s ability to generate and apply new ideas, and cultivating key enabling technologies such as genomics and intelligent systems.

Table 4.3
Increased Funding for University-Based Research Provided in Previous Budgets

Generating New Ideas

The Federal Granting Councils

Recognized excellence in science is crucial to ensuring Canada’s strong innovation performance and ongoing competitiveness in the global economy. The three federal granting councils—the Canadian Institutes of Health Research (CIHR), the Natural Sciences and Engineering Research Council of Canada (NSERC), and the Social Sciences and Humanities Research Council of Canada (SSHRC)—are key supporters of research in Canada, championing research excellence, promoting the recruitment and training of talented researchers, and increasingly taking on an important role in strengthening Canada’s commercialization environment.

Since 1998, the Government of Canada has allocated significant new resources each year to the granting councils. The combined base budgets of the three councils now stand at $1.5 billion, double their level in 1997–98. To maintain this momentum, Budget 2005 will increase the annual budgets of the three granting councils by an additional $75 million per year, starting in 2005–06. These incremental funds will be allocated as follows: $32 million each for CIHR and NSERC, and $11 million for SSHRC. This funding will enable the councils to enhance their support for new and promising researchers, and to sustain their overall support for research in Canada.

Indirect Costs of Research

In addition to supporting the direct costs of research, the Government of Canada also contributes to a sustainable and competitive research environment at post-secondary institutions by funding the indirect costs of federally supported research. These costs include, for example, the operation and maintenance of equipment and facilities, information management systems, regulatory requirements, and technology transfer and commercialization services.

Launched in Budget 2001 with $200 million, funding for indirect costs was made permanent in Budget 2003 with an annual budget of $225 million. Budget 2004 increased annual funding to $245 million in 2004–05, bringing the total federal support to date for indirect research costs through this program to $670 million. Budget 2005 further increases the federal contribution by $15 million annually, raising the program’s funding to $260 million in 2005–06 and future years.

The Tri-University Meson Facility (TRIUMF)

TRIUMF is Canada’s premier national laboratory for nuclear and particle physics research. It is located at the University of British Columbia, and is managed as a joint venture by six full member universities and six associate member universities. TRIUMF’s position as a world-class facility enhances Canada’s contribution to global physics research, and enables Canadian scientists to participate in international research programs such as the European Organization for Nuclear Research (CERN).

In addition to fundamental research in subatomic physics, work at TRIUMF contributes to scientific advances in fields such as medical imaging and therapies, materials science, and the life and environmental sciences. Over the years, TRIUMF’s collaboration with industry partners has resulted in scientific breakthroughs in the management and treatment of cancer, and imaging used in the treatment of cardiac and neurological disorders.

To support TRIUMF’s five-year research plan for the period 2005–2010, Budget 2005 provides new funding of $126 million over five years. In combination with existing resources of $96 million from the National Research Council of Canada (NRC), this will result in total funding of $222 million for TRIUMF over the next five years. This investment will enable TRIUMF to remain a leader in particle physics research, through the expansion and enhancement of its new Isotope Separator and Accelerator (ISAC–II).

Terry Fox Foundation

In recognition of the 25th anniversary of the Terry Fox Marathon of Hope, the Government of Canada will provide a $10-million grant this year to the Terry Fox Foundation. These funds will help continue the Foundation’s very valuable work in the area of cancer research.

Canadian Academies of Science

It is important that the Government remain current with the latest scientific developments. Governments and other organizations need access to timely, unbiased and scientifically sound analysis of the state of knowledge in such complex areas as biotechnology and climate change. The Canadian Academies of Science is an independent organization that brings together Canada’s foremost scientific experts, and is uniquely positioned to undertake expert assessments of the science underlying various issues of interest to the Government and to Canadians.

Budget 2005 provides $30 million in 2004–05 to the Canadian Academies of Science, to be used over the next 10 years by the Academies to conduct independent assessments of the state of scientific knowledge in key areas.

Genome Canada

Biotechnology is one of the key enabling technologies that will drive Canadian innovation and productivity in the 21st century. Underpinning advances in the biotechnology sector, genomics science has the potential to lead to breakthroughs in the way we treat disease, and how we grow crops and protect our forests and the environment.

Genome Canada is a not-for-profit corporation supporting genomics research in Canada. To date, the Government of Canada has provided $375 million to Genome Canada. Projects supported by Genome Canada and the five regional genome centres in British Columbia, the Prairies, Ontario, Quebec and Atlantic Canada, have attracted investments from the provincial governments, private industry, international partners and other sources totalling over $400 million.

In recognition of the important role Genome Canada has played in strengthening the environment for genomics research in Canada, Budget 2004 committed an investment of $60 million in 2004–05. Budget 2005 provides an additional $165 million in 2004–05. Combined, the $225 million will enable Genome Canada to sustain services to genomics researchers through the technology platforms located at the regional genome centres, and to provide funding for new basic research projects in universities and research hospitals for an additional three years. Over this period, the Government will continue to examine the most appropriate role for Genome Canada and other agencies in providing support for genomics research at universities and research hospitals.

Precarn

Precarn is a national, not-for-profit, industry-led consortium that supports pre-competitive research and development projects in the field of intelligent systems and advanced robotics. It plays a unique role in bringing together technology users, suppliers, developers and researchers through its highly successful collaborative research model. The technologies developed by Precarn and its partners have a wide range of applications, including building construction, environmental protection and human health. Supporting up to 40 per cent of project costs, Precarn uses federal funds to lever contributions from the private sector and provincial governments. Since its inception, Precarn has levered close to $200 million in private sector investments.

Budget 2000 provided $20 million over five years in support of Precarn’s "Phase III" program for research and development. Budget 2005 will extend the Government’s support for Precarn by providing $20 million in 2004–05 for the next five-year phase of its program. This will enable Precarn to maintain its research support, and promote further progress in Canada’s intelligent systems and advanced robotics industries.

Canadian Youth Business Foundation

The Canadian Youth Business Foundation is a national organization that plays an important role in helping young Canadians to become successful entrepreneurs by providing mentorship, learning resources, and start-up financing where commercial lending is unavailable. Through its presence in communities across Canada, the Foundation helps develop the innovative business leaders of tomorrow, and provides them with the skills and experience needed to take advantage of Canada’s investment in knowledge. Budget 2005 provides $10 million in 2004–05 to the Canadian Youth Business Foundation to enable it to expand its services into additional communities and sustain its operations until the fall of 2009.

Table 4.4
Investing in Ideas and Enabling Technologies

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