Speech From Throne 

January 30, 2001

In the new economy, knowledge and technological innovation are the cornerstones of new prosperity and a better quality of life. Research and development are the lifeblood of innovation.

To secure our continued success in the 21^st century, Canada must be among the first to generate new knowledge and to put it to use.

Our government’s overriding goal is nothing less than branding Canada as the most innovative country in the world -- as the place to be for knowledge creation; where our best and brightest can make their discoveries; where the global research stars of today and tomorrow are born; becoming a magnet for new investments and new ventures:

Thanks to the bold, forward-looking steps we have taken since first assuming office, we have laid the foundation for a modern, world class research infrastructure in Canada, and a business environment that is pro-innovation.

In 1997, we established the Canada Foundation for Innovation (CFI), an arms-length agency to foster research excellence in Canada. To date our government has invested $2.4 billion in the CFI.

We set aside $550 million for health related research and innovation and to launch the Canadian Institutes of Health Research, whose mandate is to make Canada an international trademark for excellence in health research.

We allocated $900 million to create 2,000 Canada Research Chairs by 2004-05 - greatly enhancing the capacity of Canadian universities to attract and retain the best researchers.

We have created the Networks of Centres of Excellence to foster greater international research collaboration with Canadian universities and institutes and to expand Canadian expertise in areas such as genomics, climate change, and advanced engineering.

We have invested $160 million in Genome Canada.

We have established one of the most generous R&D tax regimes in the world.

We implemented a tax cut package to encourage entrepreneurship and innovation, in which we:

• Cut the capital gains inclusion rate from two-thirds to one-half;
• Expanded the capital gains tax-free roll over for small business investors;
• Reduced the corporate tax rate; and
• Improved the treatment of employee capital gains on stock options.

While we have made great strides ahead, Canada still lags behind many of our trading partners in R&D. We are committed to working with the provincial governments and the private sector to close this gap and make Canada one of the most innovative countries in the world.

We will double, at least, the current federal investment in R&D by 2010.

In making new investments, the government will:

• Strengthen the research capacity of Canadian universities and government laboratories and institutions.
• Accelerate Canada’s ability to commercialize research discoveries, turning them into new products and services; and
• Pursue a global strategy for Canadian science and technology, supporting more collaborative international research at the frontiers of knowledge.

New investments by the Government of Canada will include strategically-targeted research, co-ordinated with partners.

The government will increase support for the development of new technologies to assist Canadians with disabilities.

The government will help Canada’s agricultural sector move beyond crisis management - leading to more genuine diversification and value-added growth, new investments, better land use, and high standards of environmental stewardship.