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Section II – Analysis of Program Activities

2.0 Strategic Outcome

Significant structural changes in the economy often follow major economic crises. These changes are generally good opportunities to foster innovation. In the context of the recent economic upheaval in Canada, the federal government is working to ensure that businesses and research centres receive the necessary support to create these opportunities in the short term. As Canada's largest federal research body, NRC plays a leading role in the country's National Innovation System to build an innovative, knowledge based economy for Canada through research and development, technology commercialization and industry support. By virtue of its competencies, infrastructure, national and international networks and partnerships, it has a strategic role as the Government's key R&D instrument to address national issues of importance to Canadians and to collaborate with academia and industry to bridge knowledge creation and economic interests. Given the recent economic stresses on small-and medium sized businesses, NRC has played an even more critical role in helping sustain Canadian innovative activity to support economic recovery.

The value and relevance of NRC's research and supporting activities is evidenced by partners' investments in collaborative projects. In 2008-09, NRC had 596 active collaborative research agreements with Canadian and international partners (approximately 50% are industrial). NRC's active collaborations during the fiscal year were valued at $551 million including $179 million leveraged from foreign sources. NRC has also been successful in commercializing its technologies, generating 111 licensing agreements (a 13% increase since 2007-08) and $9.6 million (accrual based accounting) in licensing revenue and royalties to help fund additional Canadian research.

In terms of knowledge-generation, the publication citation impact factor (a main indicator of excellence, relevance and reach) of NRC has remained approximately 40% ahead of the world average and ahead of the Canadian and federal government averages for the past 26 years. NRC's publication productivity of 1.4 peer-reviewed publications per employee is amongst the highest of international science organizations. NRC researchers won awards of excellence including the Gerhard Herzberg Canada Gold Medal for Science and Engineering (more information).

2.1 Program Activity: Research and Development

2.1.1 Benefits to Canadians

Although the socio-economic benefits from scientific research can often take years to be visible, investment today is critical for future innovation and sustained global competitiveness. There are many players who contribute to the research continuum in Canada – from basic research to commercialization. These activities have long term impacts on many segments of the economy. The following are examples of achievements and milestones in longer term efforts demonstrating NRC's benefit to Canadians.

• NRC discovered a gene that could substantially reduce the use of nitrogen fertilizer for agriculture crops, reducing farm production costs at an estimated amount of $400-600 M per year (20-30% of nitrogen fertilizer expenditure – $2 B in Canada). It has also developed drought tolerant genes to increase crop yields, with an estimated positive economic impact of $304 M.
• Canada's economy is heavily dependent on manufacturing and transportation. Today, these sectors are challenged to reduce energy consumption and overall environmental impact, while competing with foreign companies operating in a lower-cost environment. To remain viable, Canadian companies need access to the cutting edge research provided by NRC. For example, Tru-Die, a Canadian SME is positioned to provide dies that could reduce the cost of vehicle manufacturing tools for the auto industry by up to 50% as a result of their collaboration with NRC. Similarly, Canadian fuel cell companies are poised to benefit from NRC fuel cells having twice the output of the current market leader (more information).
• Photonics applications surround us in the form of image recording and display, sensing, and information transmission. Serving an approximate $20 B industry in Canada (and broader world market), NRC's Canadian Photonics Fabrication Centre (CPFC) supported 45 key clients (28 repeat) in 2008-09. In the last 4 years, it helped three Ottawa based start-up companies create prototypes that resulted in approximately $70 M of funding being raised. CPFC spearheaded the creation of the International Photonics Commercial Alliance with 18 major stakeholders and over 500 individual public and private organizations across North America. Photonics is one of 11 NRC Technology Cluster Initiatives across the country that are facilitating partnerships between federal, provincial and municipal governments, industry, and the higher-education sector. Other cluster initiatives include: Nanotechnology, Life Sciences, Biomedical Technologies, Information and e-Business, Fuel Cell and Hydrogen Technologies, Plants for Health and Wellness, Sustainable Infrastructure, Aluminium Transformation, Nutrisciences and Health and Ocean Technology. These initiatives accelerate the commercialization of innovative technologies produced by small and medium-sized firms. Regional S&T capacity in key sectors and industries is being built across Canada to drive knowledge creation, economic growth and long-term global competitiveness.
• NRC collaborated with the University of Calgary, IMRIS Inc. and Canadian high-tech company MDRobotics (makers of the NASA Shuttle-based Canadarm) to develop a first-in-class robotic system for complex neurosurgeries. In the fall of 2008, the first human neurosurgery was performed by neurosurgeon Dr. Garnette Sutherland using neuroArm, with an excellent patient outcome. The collaboration exemplifies the Federal S&T Strategy objectives: People Advantage in the form of HQPs hired at IMRIS, Project neuroArm, MDRobotics and the University of Calgary to work on the project; Knowledge Advantage in the form of university, industry and hospital researchers working together to generate the knowledge necessary to develop the technology; and Entrepreneurial Advantage in the form of successful Canadian high-tech SMEs enhancing their product lines through innovation, as well as the development of an early-stage SME, neuroArm Inc.

2.1.2 Performance Analysis

NRC focused research on those sectors identified as having economic and social importance to Canada and within those sectors, concentrated on four research priority areas identified in the federal S&T Strategy, namely environmental science and technologies; natural resources and energy; health and related life sciences and technologies; and information and communication technologies. In keeping with one of the Strategy's core principles – partnerships – NRC pursued horizontal initiatives and S&T collaborations with other federal departments and agencies and with universities, industry and the non-profit sector.

This report demonstrates the impact of NRC's R&D program activity and it informs Canadians of the progress made in implementing the S&T Strategy. The following examples are not meant to be exhaustive; rather, they show the scope and depth of NRC's activities, its commitment to getting initiatives up and running and to advancing the principles of Canada's S&T Strategy.

Environmental Science & Technologies

The Hydrogen and Fuel Cell National Program – This is a joint initiative of NSERC, NRCan and NRC focusing on research, development and demonstration priority areas for Canada in the near to mid-term. A stakeholder workshop of 50 industry, academic and government research leaders was held in 2008 to establish the content of the national program and to identify the most pressing priorities for accelerating the commercialization of Canadian fuel cell technologies. In response to the workshop, NRC provided 3-year funding to two technology demonstration projects for reducing barriers to fuel cell commercialization and adoption in Canada.

• The Proton-Exchange Membrane (PEM) fuel cells project aims to reduce the cost and increase the longevity of PEM fuel cells by working on high performance, low-cost catalyst; and high performance, low-cost membrane material. The project draws on expertise from Simon Fraser University, McMaster University and the University of Waterloo as well as NRCan and two of Canada's largest PEM original equipment manufacturers (more information).
• The Solid Oxide Fuel Cells (SOFC) project exploits NRC's expertise in thin film coatings to improve the expected lifetimes of the competing technologies currently in use (more information).

National Bioproducts Program – NRC negotiated a Memorandum of Understanding with NRCan and Agriculture and Agri-Food Canada (AAFC) that provides the governance framework for the three federal organizations to collaborate on the delivery of the AAFC-NRCan-NRC National Bioproducts Program. In line with the federal S&T Strategy, the Program is focused on the delivery of results having a positive impact in sustainable energy, the environment and rural revitalization. An external expert advisory body helped refine the R&D focus of the four large-scale projects in lignocellulosic-derived chemicals and energy; environmentally friendly biomaterials for various industrial sectors; production of energy and chemicals from biomass/ municipal waste; and the production of algal biofuel. Several external collaborators were identified to begin working with NRC in 2009-10 and various pieces of capital equipment procured. A project management system was developed to ensure timelines and scheduled deliverables are met. The four projects are expected to deliver concrete results to the private sector within two to three years.

Supporting Automotive Sector Innovations – NRC collaborated with the automotive sector, working on topics such as light weight materials, fuel cells, aerodynamics and manufacturing. A multidisciplinary team completed a comprehensive environmental scan and assessment of research in the automotive sector as part of the Automotive Assessment Study (more information). From this, NRC developed an integrated Automotive Strategy that identified three research areas: fuel efficiency, alternative propulsion and the connected car - all fields of critical importance to the environment, the industrial competitiveness and the market position for Canadian companies in this sector. This Strategy was also adapted to respond to the impacts of the current economic downturn and environmental concerns on this sector.

NRC also developed software to assist manufacturers of polymer moulded parts to improve the design by reducing weight, improving quality and ensuring environmental compliance. The success of this technology was augmented by NRC's creation of a Special Interest Group on Blow-Moulding, which brought together 30 private and institutional participants, providing contacts and opportunities for Canadian companies to build business relationships (more information).

Improving Marine and Arctic Operations – NRC developed leading-edge solutions to reduce environmental damage due to accidents and provide higher success rates for rescue operations. For example, NRC transferred technology relating to small craft training simulators to a Canadian SME. This SME employs personnel in Newfoundland and British Columbia and is set for expansion having just secured $1.5 million of additional private investment.

NRC partnered with industry to predict ice behaviour and risk around structures built on water such as off-shore oil rigs and long-span bridges. This research supported construction of more durable structures with a lower risk of environmental spillage (e.g. by oil rig detachment) and a longer life-span, thereby reducing waste resulting from disposal of ice-damaged components. For example, NRC produced a handbook to assist those piloting vessels in the Arctic in recognizing old sea ice (> 1 year old). The Canadian government and commercial organizations involved in Arctic transport have requested copies of the handbook and it is expected to become a critical part of the future of safe Arctic water travel, reducing environmental damage due to vessel collisions (more information).

Natural Resources and Energy

NRC partnered with Vaperma in Quebec to manufacture environmentally friendly separation technologies that could yield energy savings for the petrochemical and other industries. NRC used its expertise in casting and fabrication techniques of membrane materials and in membrane characterization and evaluation to develop a novel class of highly selective and permeable polymers that can efficiently separate gaseous compounds. These materials perform better than most currently available membrane polymers, allowing large amounts of desirable gas to flow through. NRC also helped Vaperma scale up the manufacture of these polymers from lab-size to industrial-size batches, reducing the time to synthesize test polymers from days to hours. Besides refining ethanol, Vaperma foresees its products being used as a cost-effective way to separate water from other organic compounds. They could also be used to recover methane from crude natural gas and to purify manufactured biogases.

NRC collaborated with multiple players to create a new class of solar cells. While solar energy offers a natural and environment-friendly solution to rising energy needs, it currently provides only about 1 millionth of the total global electricity supply, due to the cost associated with harnessing solar energy. To meet this challenge, a consortium was assembled under Sustainable Development Technology Canada to develop a low-cost printable solar cell. The Consortium includes NRC, Université Laval, St-Jean Photochemicals Inc. and Konarka Incorporated. This project provides a technical base for the production of solar cells on lightweight flexible substrates, such as plastic film, in areas as large as can be produced by industrial printing presses. The Consortium estimates that this technology can enable a cumulative green-house gas reduction for Canada of more than 21 megatons by 2022 if the commercialized technology displaces the use of fossil fuels.

Health and Related Life Sciences and Technologies

NRC discovered and translated novel solutions for preventing, diagnosing and treating infectious and neurodegenerative diseases. For example, NRC developed an adjuvant and vaccine delivery technology (Archeosome technology) being evaluated for clinical applications by Piramal Health and Variation Biotechnologies; an antibody technology used in the development of an innovative cancer therapeutic by the Canadian company, Helix; and is collaborating with ApoPharma Inc. to evaluate new compounds targeting aspects of ß-amyloid metabolism as potential therapeutics for Alzheimer's disease. NRC researchers also created a new source of nervonic acid that can fortify infant formulas and treat symptoms of neurological diseases such as Alzheimer's and Parkinson's.

An R&D agreement was signed with Wellstat Vaccines to further develop synthetic polysaccharide conjugate technology to combat meningitis B disease. In collaboration with Dynport Vaccine Company, NRC is developing vaccines against dangerous airborne infections, specifically tularaemia, which poses a bio-security threat. The bacterium causing this disease is highly dangerous when aerosolized. For other examples of NRC contributions see this example, another example

Imaging Technologies for Diagnostic Applications – NRC, through what has been described as its revolutionizing functional magnetic resonance imaging, discovered that white brain matter (nearly half the brain) undergoes activation and serves the purpose of transporting information to different areas within various neural networks. This research was featured in an article in BMC Neuroscience and ranked as a top highly accessed paper in NeuroImage. It can lead to advanced clinical applications for disorders such as multiple sclerosis.

NRC and IMRIS Inc. collaborated on the research and development of a 16-channel MRI radiofrequency coil that provides better images of cardiac function than systems currently available. NRC developed the cardiac array, performed regulatory testing and conducted final performance testing of a beta production version of the array. With an exclusive licence from NRC, IMRIS will produce the coil.

NRC, together with Monteris Medical Inc., developed a temperature mapping system that permits more precise control of high intensity laser treatments of tumours. The technology, which recently received Food and Drug Administration (FDA) approval, destroys tumours from inside without affecting normal tissue.

Agriculture – NRC established the framework for enhanced engagement of critical agriculture sector players and quantified specific economic and industrial targets to be better able to assess performance. NRC research focused on ways to improve crop adaptation and productivity in response to climate influences and increasing global demand for healthier foods and feeds, environmentally friendly fuels and industrial products and new energy sources. With its expertise and capabilities in genomics, plant oils, plant bioactives, plant performance traits and genetic modification technologies, NRC produced prototype oilseeds (canola, rapeseed, flax), operated a seed genomics program on key Canadian pulse crops (i.e. lentils, peas, chickpeas, faba beans) to enhance Canada's reputation as a provider of high quality pulses and their products; and continued to develop a Strategic Crop Initiative to facilitate commercialization of modified plants beneficial to Canada's agriculture sector.

Functional Foods and Nutraceuticals – NRC provided essential expertise and infrastructure to facilitate private sector nutraceutical R&D. Early in 2009 several projects involving NRC, designed to support and drive economic growth and development, received funding from the Round VI Atlantic Innovation Fund. These included: Coastal Zones Research Institute Inc., Shippagan, NB to help develop technologies for extracting, isolating and characterizing bioactive ingredients from marine waste to create value-added products for natural health product and food markets, fisheries and microbiology; Solarvest Inc., Charlottetown, PEI to research nutraceutical applications of microalgae oils (lipids), which play a critical role in human and animal nutrition; and Keata Pharma Inc., Sydney, NS to develop and commercialize natural products, derived from daffodils, which can be used to treat Alzheimer's disease.

Information and Communications Technologies

NRC strengthened Canada's leadership in information and communications technologies by creating and commercializing software and systems technology to help Canada prosper in the knowledge economy. NRC developed and integrated a Mobile Electronic Warfare Technology Suite on Bison Light Armoured Vehicles. They received high praise in their support of Canadian forces in Afghanistan (more information).

NRC's ICT Sector Strategy was aligned with the federal S&T Strategy, recognizing the role of ICT as a pervasive enabler for a wide range of applications. As a first initiative, a project to develop sensor networks for commercial buildings was launched with the support of multiple stakeholders from the construction industry, sensor manufacturers, universities and other government departments. The project has three thrusts: location and occupancy sensing in commercial buildings; data mining for building management systems; and an innovative sensor network for indoor air quality. Collaborators include Adigy Canada, Boreal Laser, NRCan, Carleton University, Health Canada and six Institutes from across NRC applying a wide range of competencies to the project.

The Value of Technology Cluster Initiatives

NRC delivered Entrepreneurial Advantage through eleven community-based technology cluster initiatives that supported the integration of key players across Canada's innovation system. Clustering provided support by helping to build local scientific and innovative capability, which in turn supported development of a business environment capable of hosting and fostering dynamic and competitive industries. Clustering is a long-term process requiring focused attention and investment. Recent information obtained on the activities of NRC's cluster initiatives (CIs) continues to illustrate growth in activity and performance, confirming the spill-over effects of the investment in cluster strategies. Examples of progress include:

• Steady growth in the number of collaborative agreements signed with firms and other cluster actors with 217 separate agreements in place since inception. The most frequent participants in these research initiatives are firms followed by not-for-profit organizations and universities. Their participation demonstrates NRC's relevance to the private sector, as well as the need by Canadian companies, particularly SMEs, for the technological know how and capabilities of cluster initiative researchers.
  
  

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• Growing knowledge of and use of advanced technology facilities and services available at cluster focused Institutes. The addition of new facilities, such as NRC-NINT in Edmonton, which is home to some of the world's most technologically advanced research facilities and houses ultra quiet laboratory space - the quietest such space in Canada, is helping Canada gain international attention from both large multi-nationals as well as local and Canadian companies. The Institute has attracted firms to co-locate staff in Edmonton in order to better access these facilities. Similarly, the Ottawa-based Canadian Photonics Fabrication Centre has witnessed consistent growth in usage and is recognized internationally for the quality and uniqueness of its service offering. Performance figures show an ongoing increase in the level of fee-for-service activity across the CIs, as well as access and usage of many facilities. More than 375 separate fee-for-service agreements were put in place since inception.
• The greatly enhanced presence of research capabilities. There are now more than 325 additional research and professional staff available in cluster regions to support cluster development. The additional staff include world-leading researchers focused on areas such as nanoscience, fuel cell and hydrogen technologies, photonics, and new areas of life sciences including nutrisciences and functional foods. The effect of these added competencies are leveraged through relationships with universities. For instance, cross appointments serve to enhance student training. At least 430 students have been hosted by the CIs, also giving them access to working with advanced facilities. The capabilities of NRC research staff are complemented by professionals focused on business dynamics and growth. NRC Business Development Officers and NRC-IRAP Industrial Technology Advisors (ITAs) work one-on-one with existing and new businesses to enhance their likelihood of success.

Leading Edge Multi-Sector Research

Nanotechnology – NRC continued to help Canada stake its place in nanotechnology through research having a wide range of applications, from medical devices to construction materials. Research in the nanosciences is done across NRC at a dozen Institutes, the competencies of which have been brought together to contribute to two cross-Council programs focused on nanotechnology solutions for industry.

To accelerate the commercialization of innovative products into the marketplace, NRC, NSERC and BDC launched a program that brings together NRC scientists and university researchers with industry to ensure technologies resulting from approved projects would have receptors. The partnerships increased levels of cooperation resulting in more co-locations of employees and shared best practices. Regional innovation workshops were jointly organized and well received. Five 3-year nanotechnology projects were selected for funding in areas linked to the Federal S&T Strategy – environmental technologies, energy and ICT. Overall, seven NRC Institutes collaborated with thirteen universities and twenty-five other partner organizations (more information).

The NRC Nanotechnology program was launched in 2008 to leverage NRC research activities and fund five projects of strategic importance to Canada. NRC is tackling a wide range of subjects, which include the development of biosensors, photovoltaics, hydrogen storage materials and molecular electronics. Three of the five projects are on track to conclude in 2011, with the balance finishing in 2012. NRC is leading an effort to create one of the world's most sensitive small force detectors – an instrument that will determine physical characteristics such as adhesion, hardness and elasticity at the molecular level. Known as an Interfacial Force Microscope, it will provide detailed measurements of a material's small force characteristics and determine how it will behave in relation to other materials, permitting scientists to reliably engineer materials at the nanoscale (one billionth of a metre). The work is a core part of the NRC effort to provide quantifiable measurement standards for nanotechnology and is complementary to the creation of a nanoscale length standard being developed by NRC in conjunction with two universities.

Nanotechnology applications are becoming numerous, spanning a wide range of sectors. For example, single-walled carbon nanotubes can be used in a variety of industries, from sports equipment to airplane manufacturing. Two NRC Institutes collaborated in the development of nanotechnology-based composite materials offering improvements in applications for the aerospace sector. In 2008, Airbus awarded a research contract to NRC to develop conductive "nano-glue" adhesives to replace rivets presently used in aircraft assembly.

Aerospace – NRC continued to build competencies and conduct collaborative projects in environmentally sustainable technologies focused on lower emissions, alternative fuels, reduced noise, compliant lighter materials and sustainable processes. For example, NRC research has provided a number of breakthroughs expected to lead to millions of dollars in fuel savings through their developments in reducing drag on aircraft wings and advances in fibre placement (composite) materials to provide lighter-weight aircraft and to provide lower weight, more efficient, quieter engines (more information).

NRC collaborated with Canadian aerospace SMEs and other companies to improve their product and process development capabilities. For example, NRC has collaborated with Composites Atlantic Limited (CAL), an SME headquartered in Nova Scotia to enhance CAL's capabilities in conductive bonding and laser ultra-sonic inspection. As a result, CAL has developed relationships with Bell Helicopter and Bombardier, opening up the possibility for major supply contracts for CAL and resulting employment for Canadians (more information). In addition, NRC has developed technologies in testing and analysis of full-scale aerospace structures and has made this expertise available to Canadian SMEs who would otherwise be unable to compete due to their inability to access such capital-intensive test equipment (more information).

NRC maintained technical excellence in advanced materials and structures, advanced propulsion systems, aerodynamics, advanced manufacturing and avionics and flight operations. For example, NRC has provided research results that will increase engine efficiency by increasing compressor and/or turbine loading (more information) and has led key research in aircraft de-icing technologies and engine assessment for threats due to icing (more information). In addition, NRC has developed an integrated visionic, sensor and mission system that is now in active use and has increased effectiveness and safety for night or poor-visibility flights (more information).

Construction – NRC implemented its construction strategy through research and technology development; codes and standards; and information dissemination. In 2008-09, NRC focused on building technologies to reduce energy consumption and promote health and safety. It provided technologies and critical information on indoor air quality in buildings and aircraft and the use of sensor arrays linked to decision-making tools for more efficient operation of indoor environments. Key contributions were made through such multi-partner initiatives as:

• Indoor Air Quality/Clean Air Initiative in cooperation with Health Canada and Environment Canada: Development of the Canadian Building and Health Sciences Network (CBHSN), (170 members in 2008-09) and workshop. The latter is a partnership between NRC, Canada Mortgage and Housing Corporation, Health Canada and the Canadian Institutes of Health Research. Led by NRC, this workshop established a preliminary framework for actions to improve Canadians' health through the physical environment. NRC, with its partners, built a laboratory for indoor air quality research.
• Barriers to the integration of fuel cells and hydrogen technologies in buildings - NRC led and completed consultations with industry around the potential for integration of fuel cells and hydrogen technologies in buildings.
• Impact energy consumption in the built environment – NRC partnered with BC Hydro to evaluate the performance of energy-saving lighting control systems (more information). NRC tests identified a system that achieved overall energy savings of approximately 69%.

NRC filled critical knowledge gaps in the fire performance of innovative materials and provided valuable scientific information to impact codes and standards for fire safety in Canadian homes. NRC also developed performance metrics and decision support frameworks for the management of Canada's aging municipal infrastructure.

Manufacturing and Materials – NRC continued helping Canada's manufacturing sector face major challenges including the economic downturn, increased competition and strong innovation investment from foreign markets. The NRC Manufacturing and Materials Key Sector Strategy addresses the challenges of four manufacturing segments: primary metal, plastics and composites, metal fabricated products and machinery.

NRC conducted leading-edge research in the fields of nickel and aluminum to help Canadian companies. For example, NRC has assisted a number of Canadian SMEs in the nickel industry to produce metals more efficiently (more information). NRC made available cutting-edge innovations and equipment that helped a network of Canadian SMEs succeed in the aluminum field. Through its Aluminum Technology Centre, NRC played an active role in the development of the Saguenay-Lac-Saint-Jean aluminium cluster, including providing access to specialized equipment in support of laser welding, aluminum forming and semi-solid casting in the region. NRC has leveraged its relationships with large international firms to provide a node of access for Canadian companies to these firms. As a result, commercial opportunities arose for Canadian companies (more information, more information).

NRC's work has allowed Canadian companies to improve their manufacturing efficiency, reduce development time and prototyping costs and improve the quality of their manufactured components. For example, NRC assisted Windsor-based Kautex to design an innovative plastic gas tank for the automotive industry. Using NRC technology, they were able to produce a lighter product that uses less material and is less expensive to produce. These advances provide Kautex with a competitive advantage in this market while increasing fuel efficiency and reducing environmental impact (more information).

Standards – Metrology and Building Codes and Standards – NRC is mandated to determine standards and methods of measurement that have an impact on the ability of Canadian industry to trade internationally. While in the past these were primarily traditional physical measurements, the advent of new technologies is compelling NRC to establish measurement standards in such domains as biotechnology and the nanosciences. Canada's participation in establishing the initial standards for emerging technologies gives a competitive edge to innovative Canadian firms, providing them with early access to state of the art international standards for effective participation in global markets. In addition, NRC maintained other traditional global standards that are critical for Canada's participation in international trade.

For instance, NRC worked with FPInnovations Paprican and laboratories abroad to ensure that companies from around the world have access to the highest quality standards for paper whiteness, since very white paper commands premium prices. NRC, which is recognized as the world authority in paper whiteness measurements, developed the reference instrument that establishes the absolute whiteness level for paper. Paper companies around the world trace their whiteness measurements to those of NRC. For Canadian suppliers like Domtar, this allows them to guarantee the quality of their product to their customers and has saved them money.

NRC worked with the Canadian codes community (CBHSN) in developing a single energy standard for buildings and housing. Through collaborative work associated with the CBHSN initiative, and beginning by convening a cross-disciplinary workshop of experts across Canada, NRC worked with the health community to examine the impact of indoor environment, such as air quality, on health for reducing health care costs and absenteeism related to indoor environmental issues.

Leverage "Big Science" Partnerships – Since its creation in the 1970s, TRIUMF continues to be a key investment for Canada in large-scale research infrastructure. TRIUMF provides world-class facilities for research in sub-atomic physics, including nuclear physics, nuclear astrophysics, particle physics, nuclear medicine and materials science and encourages the transfer of technology developed at the laboratory into the marketplace. NRC provides funding for the operations of this facility on behalf of the Government of Canada via a contribution agreement. In 2008, TRIUMF, in collaboration with MDS Nordion, continued to generate cyclotron-produced medical radioisotopes for over two million clinical treatments in North America. TRIUMF has a 2005-2010 Plan, with five-year funding totalling $222 million. The next Plan for the period 2010-2015 was reviewed by an international expert committee in September 2008 and its report was endorsed by NRC Council.

Canadian Astronomy and Telescopes – Activities were driven by international agreements that provided Canadian researchers with access to world-leading observatories. In 2009, the International Year of Astronomy, NRC worked with an international team to capture the first images of three planets circling a star 130 light years from Earth in the constellation of Pegasus.

Patented astronomy technology from NRC was tested in a giant step toward completion of the U.S. Expanded Very Large Array (EVLA) in New Mexico. The test demonstrated the power of NRC's Wideband Interferometric Digital Architecture (WIDAR) correlator, a high-performance supercomputer that combines signals from many radio-telescope antennas. The EVLA Project is scheduled for completion in 2012. The resulting radio-telescope system will be ten times more capable as a scientific instrument, allowing astronomers to observe fainter and more-distant objects.

To celebrate the International Year of Astronomy, NRC pursued education and public outreach in Astronomy with over 107,000 Canadians having experienced a personal astronomical discovery, a 'Galileo Moment'. NRC created a downloadable internet video of a traditional Mi'kmaq night sky story that links to current astronomy knowledge. NRC outreached to school aged children through the programs of the Centre of the Universe in Victoria, many of which are run in collaboration with other organizations, such as the Victoria Symphony Orchestra, the Canadian Space Agency and diverse educational groups.

Canadian Neutron Beam Centre – NRC applied novel neutron beam methods to soft materials and nanostructures, enabling scientists to investigate materials at the atomic scale. NRC's beam facility operated at capacity on a 24/7 basis, devoting more than 50% of spectrometer time to support research by Canadian university scientists and students. The overall capacity for access increased this year by 20% with the addition of the D3 neutron reflectometer that enabled greater access to researchers in the domain of nanostructured thin films. This year, 117 researchers accessed the facility representing industry, government and academic institutions.

The additional capacity allowed NRC to expand its research activities in nanotechnologies for antibody treatment of tumours. The research led to a provisional patent filed in 2008, a Non-Disclosure Agreement in developing PET (positron emission tomography) contrast agent carriers with McGill University and a long-term Memorandum of Understanding (MOU) for developing molecular imaging techniques between NRC and MDS Nordion, a leading global life sciences company.

2.1.3 Continuous Improvement

Project Management – Following a key recommendation of the Auditor General on research project management, NRC took action. A Project Management Manual, which conforms to the practices recognized by the Project Management Institute and to the NRC's Corporate Manual, was developed and made available on a MS-Sharepoint information system site as a pilot project. The system was used to improve the efficiency and accountability of the selection process for scientific projects in accordance with strategic objectives. The lessons from the pilot project are under review for consideration of implementation across NRC.

Industry Push versus Industry Pull – Allowing firms to identify opportunities and responding to these constitutes an important ability as a cluster catalyst. NRC learned the importance of listening and responding to industry needs. NRC will continue to explore and adopt flexible approaches, such as allowing industry to participate in identifying necessary research competencies to fill gaps and hiring new resources according to these needs.

2.2 Program Activity: Technology and Industry Support (TIS)

2.2.1 Benefits to Canadians

NRC's Canada Institute for Scientific and Technical Information, as Canada's national science library and leading scientific publisher, provided Canada's research and innovation community with tools and services for accelerated discovery, innovation and commercialization. The record of Canadian science is strategically collected in the NRC Publications Archive and the PubMed Central Canada digital repositories. NRC demonstrated leadership in the emerging need to manage and provide access to Canadian scientific datasets, while also providing Canadian SMEs and NRC researchers with high value analysis, patent searches and market intelligence. These activities enabled better research and commercialization decisions and more successful outcomes through information and intelligence services.

NRC supported Canadian wealth generation through the funding of specifically-identified industry projects. NRC Industrial Research Assistance Program (NRC-IRAP) strengthened the Canadian innovation system by supporting regional and national research and development organizations, assisting individual firms with improving their own innovation capacity through specialized advisory services and providing relevant and challenging work experience for recent university graduates to develop the next generation of highly qualified research and development personnel. The social well-being of Canadians was also enhanced through NRC's support of its clients' products, many of which fell within the federal government's key strategic areas of health, environment, energy and ICT.

2.2.2 Performance Analysis

Build Innovation Capacity within SMEs – NRC-IRAP provided comprehensive innovation assistance to technology-based SMEs in support of the Federal S&T Policy. NRC enhanced services in such areas as: facilitating multi-stakeholder collaborations; forging stronger links for technology based SMEs to access publicly-funded research and sources of technology; and, supporting SME efforts to access foreign technology and form international alliances.

In 2008-09, $70.6 million in financial contributions were made to 1,463 SME clients for 1,717 projects through NRC and 6,349 Canadian SMEs received technical, research and business assistance. These projects supported 5,733 jobs within SMEs and 540 youth graduates through Canada's Youth Employment Strategy. For example, one project supported Tool-Tec Welding in developing an automated robotic multilayer Tungsten Inert Gas welding system. The Ontario Company grew from a small welding shop into an R&D capable organization while doubling the number of employees.

A recent evaluation study indicated that the total wealth creation benefits of NRC-IRAP between 2002 and 2007 range from $2.3 B to $6.5 B, exceeding costs by a factor of 4 to 12.

NRC hosted themed events on Innovation that were attended by over 2,000 SMEs. Themes included: Process intelligence, Human Resources, Environment/Energy, New Product Development, Commercialization, Health and Safety and Supply Chain Logistics. Client surveys revealed that 90% of participants experienced innovation, productivity improvements/gains, reduced cycle time and increased profit margins, which led to an improvement in their company's competitive position.

Scientific and Technical Information – NRC-CISTI provided Canada's research and innovation community with tools and services for accelerated discovery, innovation and commercialization. This includes an information intelligence service that offers information synthesis, analysis and competitive technical services to institutes, clusters and NRC industrial technology advisors across Canada. The result was improved decision-making and outcomes in the areas of research focus and commercialization of that research (more information).

NRC improved access to the results of Canadian federal government funded research by the Canadian innovation community and the public.

• The NRC launched the NPArC Publications Archive digital repository that includes all NRC publications.
• NRC and the Canadian Institutes of Health Research (CIHR) signed a memorandum of understanding to partner for development of PubMed Central Canada, which will enable access to the results of all research funded by CIHR. NRC started negotiations with the US National Library of Medicine (NLM) to include the NLM PubMed Central content.

NRC published a record number of new monographs, increased subscriptions by 25% and strengthened relationships with partners and clients. Two NRC Research Press journals received a prestigious honour: Botany (formerly the Canadian Journal of Botany) and the Canadian Journal of Forest Research were each selected as one of the 100 most influential journals in biology and medicine over the last 100 years as voted by the BioMedical & Life Sciences Division of the Special Libraries Association.

NRC Research Press continued to innovate, implementing two new journal features: open access enablers such as author pay and delayed access; and article aggregations for specific NRC strategic research initiatives. A client-journal web-based platform that provides enhanced e-publishing services was completed. The Canadian Journal of Ophthalmology and The Canadian Entomologist became the first two client journals to be published using this platform.

Commercialization Support, Technology Transfer and Intellectual Property Management – NRC provided SME clients with customized value-added advice, information, referrals and financial assistance in approximately 100 communities across the country. NRC's Industry Technology Advisors (ITAs) worked with clients at all stages of the innovation-commercialization continuum, including: project development; access to technical assistance, financial, business, marketing or management advice; access to competitive technical information; patent searches; and access to local, regional, national or international linkages. The ITAs also provided technical and business support, mentoring and referrals to government Institutes and industry programs and initiatives. NRC's Innovation Network Advisors represented and promoted NRC in the community innovation system and built effective regional innovation system relationships for the benefit of SMEs. This included working with clients and other organizations to facilitate the implementation of multi-sector, multi-partner initiatives that were relevant to SMEs regionally and nationally.

A Central Business Support group was established to facilitate the flow of high-value technology from NRC while providing business-focused support to NRC executives, Institutes and programs. It championed the needs of industry and other clients to develop cohesive, consistent, business-friendly guidelines. It helped NRC manage its IP assets more strategically while facilitating horizontal business activities. This included developing a pilot Client Relationship Management (CRM) process and system. The pilot was tested by NRC Aerospace together with three other key sectors. Processes were put in place for identifying and managing key Aerospace accounts including the management of client feedback. The pilot was successful and work commenced to implement the system across NRC.

2.2.3 Continuous Improvement

NRC conducted a pilot project to streamline the processing of NRC agreements. The project focused on shortening the time to negotiate and approve NRC's larger business agreements. It featured a fast-track for processing the most urgent cases. This helped forge stronger links between corporate players in the contract approval process while improving service delivery. Feedback was positive. NRC learned that client satisfaction surveys are an important method of determining the effectiveness of service delivery models as well as the relevance of the content. NRC has therefore begun to regularly schedule detailed client surveys, to formally keep abreast of feedback and ensure that client needs are met.

2.3 Program Activity: Internal Services

2.3.1 Benefits to Canadians

The efficient functioning of the NRC governance structure ensures that NRC has, at all times, the tools necessary to make the best possible management decisions to pursue its value proposition: "To provide integrated science and technology solutions in areas of critical importance to Canada".

2.3.2 Performance Analysis

NRC completed plans for implementing the NRC Strategy that reflects changing internal and external factors, as well as the ongoing decisions and priorities of the federal government. It describes steps to implement increasingly horizontal R&D initiatives, which involve contributions from NRC, other government departments, the private sector and academia. These initiatives are focused on addressing the needs of key industrial sectors of the Canadian economy and enduring issues facing the nation including health and wellness, sustainable energy and the environment.

Integrated Solution to Planning, Risk and Performance Management – NRC implemented an integrated approach to planning, risk management and performance management that supports decision-making and enables strategy execution. An integrated project team comprised of members from finance, human resources, information systems and corporate services accomplished the following:

1. Completed a second cycle planning process to ensure alignment of operational planning to the NRC Strategy;
2. Developed a new 2010-11 MRRS, Program Activity Architecture and performance measurement framework aligned to NRC Strategy and approved by Treasury Board on May 28^th, 2009;
3. Approved targets for performance measures contained within the Corporate Balanced Scorecard for the NRC Strategy and Institute, Program and Branch plans; and,
4. Created a financial and non-financial reporting information system using SAP Business Intelligence solutions allowing access, analysis, sharing and reporting of financial and non-financial information across the organization to support internal decision-making and the MRRS requirements.

The new processes, performance measures and associated targets allow NRC to assess strategy implementation progress. Plans were made to further develop and refine the Business Intelligence information system and to train users across NRC in 2009-10.

Governance and Accountability Structures – NRC adopted a process for managing disclosures pursuant to the Public Servants Disclosure Protection Act and the NRC Corporate Governance Group initiated a program to inform NRC managers and staff of the provisions of the Act and of the NRC process.

NRC also conducted a formal Audit Survey of its Values and Ethics systems in 2008-09 with specific emphasis on the roles and responsibilities of NRC Corporate Governance. The results of this Audit Survey guided planning for the next year.

Effective Information Technology (IT) Management – NRC became a member of the TBS Chief Information Officer Council and has since participated in numerous working groups. NRC reviewed its IT Service delivery model and identified the need for more consistent organization-wide service, including the establishment of an NRC IT Steering Committee to oversee NRC's federated model. The committee oversees the development of an NRC IT Plan, ensuring that common or shared IT assets and services are used and performance related to NRC's management of IT is measured.

Talent Attraction, Management and Retention – NRC's Human Resources Management (HRM) Plan was developed during 2008 to preserve leadership capacity. NRC began to integrate succession planning and management in the business planning process and to improve education efforts with Human Resources Professionals, senior managers and planners. For example, NRC collaborated with another government agency in the development of a Management 101 program and it prepared to offer the training during 2009-10 using both e-learning and in-class training.

NRC conducted an extensive review of its recruitment programs, policies and practices by consulting with NRC management teams at all levels, human resources professionals and new hires. Following this analysis, best practices research was initiated and a draft NRC Recruitment Strategy Action Plan was developed for Senior Management approval.

Communications – Through the development of NRC's three-year communications outlook, it was determined that NRC required a more robust and strategic communications capability. As such, the Communications and Corporate Relations Branch was created in 2009. A six-month communications transition plan that sets priorities for the Branch during the integration was developed and launched. These priorities included: stakeholder relations; rejuvenating NRC's communications function; supporting and developing partnerships; implementing an NRC marketing strategy; supporting key NRC initiatives; and, making use of leading-edge communications approaches and technologies.

Maintaining and Upgrading NRC S&T Infrastructure – NRC made capital investments in infrastructure of $9.4 M. While some projects addressed urgent backlog maintenance and infrastructure renewal, several achieved energy reductions through electrical, mechanical, automation and building envelope replacement. The capital investment strategy was aligned with NRC's priorities and, in order of importance, with health and safety, security, environment, energy efficiency and infrastructure renewal, respectively.

2.3.3 Continuous Improvement

The Communications and Corporate Relations Branch was created as NRC realized that a strong, central communications capacity was needed if the organization was to be successful in taking a more concerted, strategic approach to communicating with its stakeholder communities. Prior to its creation there were, in some instances, duplication of efforts and challenges in establishing project leadership and/or responsibility and a lack of consistent messaging.

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