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Section II – Analysis of Performance Activities by Strategic Outcome

Entrepreneurship and Innovation

Strategic Outcome: A competitive and expanded business sector in Western Canada and a strengthened western Canadian innovation system

Recent studies have shown that in terms of competitiveness and productivity, Canada has both strengths and weaknesses. Canada's competitive strengths include: proximity to the US, an abundance of natural resources, a diverse economic base, a highly educated population, and an international reputation for integrity and credibility. On the other hand, Canada's competitive weaknesses include: its large land mass in contrast to a small population and economy by world standards, internal barriers constraining the mobility of goods and services, unnecessary regulations which slow down innovation, inadequate interchange been the public and private sector, a level of taxation and a system of taxation that negatively affects the cost of capital and an insufficient entrepreneurial culture.17 These studies confirm WD's own research, which show that when measured against a number of competitiveness and innovation indicators, Western Canada needs to improve its performance to become a leader in the knowledge-based, global economy.

These results suggest that there is a continuing role for WD to play in supporting SMEs through business services and access to capital, as well as in supporting innovation primarily through facilitating the commercialization of technology and increasing knowledge infrastructure.


Program Activity: Business Development and Entrepreneurship
2008-2009 Financial Resources ($ thousands) 2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending18
Planned Actual Difference
$58,190 $59,691 $62,275 118 123 -5

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace. SME revenue (All SME sizes) (excluding non-employee) Not applicable Not applicable $2.498M  (2007) 19
SME employment, (All SME sizes) (excluding non-employee) Not applicable Not applicable 322,638 employees (2007)20
Annual capital amount accessed by SMEs through WD programs $78.8M Exceeded $100.3M21

Benefits for Canadians

New business formation and growth is an essential step in creating industrial and business structures to ensure a modern, innovative, competitive, and relevant economic and industrial base in Western Canada.  In 2008-2009, WD approved funding of $35.5M, which leveraged  $117.0M from other sources, for 39 projects in support of Business Development and Entrepreneurship (BD&E).

The cumulative impact of all BD&E projects reporting results since April 1, 2005, are included in Table 11a in Section III.

Performance Analysis

To enhance business productivity and competitiveness in 2008-2009 WD approved projects such as:

  • NextSteps Enterprise West Society - $68,200 to help small business owners gain the skills they need to better recruit, train and retain young Canadian workers.
  • FPInnovations - $1.2M investment in the forestry sector toward the development and commercialization of Canadian bio-energy technologies for pulp and paper mills.
  • Video-conferencing in BC and SK - $484,972 in BC and $268,000 in SK for video-conference facilities at 43 rural Community Futures (CF) sites to enhance access to business training, expand business networks, increase productivity and reduce travel costs.

WD was also successful in working with other federal departments to renew ongoing federal funding of over $4M per year for the Canada Business Network in Western Canada through Budget 2009.  This funding renewal ensured the continuation of business information service for SMEs in the West.

With respect to its trade and investment operational priority in 2008-2009, WD developed a Trade and Investment Framework to target the department's efforts in key markets and sectors in order to enhance the international competitiveness of Western Canada.  WD's support has led to enhanced awareness of western Canadian products, services, and technology capabilities around the world and positive results through sales, research agreements, and signed contracts.  For example, the BC Wood Specialities Group 2008 Global Buyer Mission in September of that year, resulted in estimated sales of $23M.

WD continues to support Western Canada's gateways and corridors by providing direct support to the development of several gateway and inland port initiatives.  WD's support is helping to build port infrastructure and to market business opportunities to foreign companies.

In support of the Government of Canada's commitment to enhance its relationship with the Latin America and Caribbean (LAC) region, WD coordinated with Foreign Affairs and International Trade and the western provincial governments to host an incoming study tour of 12 Canadian trade commissioners from the LAC region to enhance their knowledge of the capabilities of SMEs in Western Canada.  The participating commissioners are working to identify business opportunities in the LAC region for the western Canadian SMEs that participated in the tour.

In 2008-2009, WD supported 27 international business development projects totalling $315,796 through the North American Platform Program (NAPP), such as the BioMonterrey 2008 - International Congress and Exhibition of Biotechnology.  As a result of WD's contributions, western Canadian organizations have formalized bilateral partnerships and research agreements, generated investment and business leads, and follow-up missions/discussions are taking place that should lead to increased export sales.

To improve access to risk capital and business services to SMEs, which are essential to ensure SMEs have the knowledge, skills and capacity to compete, the WCBSN provided information and advisory services, as well $82.5M in loans, which created or maintained 9,500 jobs, and created, maintained or expanded over 3,000 businesses.22  As SMEs faced the tightening of credit markets, members of the WCBSN increased their lending by $17M (26 per cent) over 2007-2008 levels.  In response to this increase in demand in 2008-2009, WD provided an additional $10M to CF investment pools, which are joint loan funds enhancing CFs access to loan capital.

In addition, 138 loans totalling $16.6M were approved through the Loan and Investment Program, leveraged by $2M in WD contributions.  In 2008-2009, WD established two new agreements for incremental venture capital for SMEs in the prairie provinces and a micro-loan agreement for small and start-up businesses in Calgary.  The total financing for SMEs from these new agreements over the next five years could reach $86M based on a commitment of up to $11.5M from WD.

The evaluation of the CF Program was completed in 2008-2009.  The evaluation found CFs are providing information, referral and counselling to clients; and clients are applying what they learn from the CFs to their businesses.  WD also conducted impact assessments of the Women Enterprise Initiative (WEI) and the Francophone Economic Development Organizations (FEDOs).  WEI services were found to have generated significant economic impacts in terms of business development and clients were generally very satisfied with the services that they receive.  The $22.9M in loan funding issued over the past five years is estimated to have generated about $660M in incremental revenues and 8,000 incremental jobs.  The FEDOs have helped to create, maintain or expand 716 businesses and 1,610 jobs between 2003 and 2008.  The FEDO impact study cites the following case study, which demonstrates the FEDOs' success in supporting WD's Business Development and Entrepreneurship agenda:

Lessons Learned

Experience has shown that supporting incoming trade and investment missions/study tours provides significant economic benefits to Western Canada and participating SMEs and research organizations.  Incoming tours allow potential buyers to see first hand the innovative capabilities available throughout Western Canada.  Furthermore, the department has learned that business-to-business matchmaking enhances the value of outgoing trade and investment missions, and provides participating SMEs with enhanced opportunities for successful business negotiations.  WD will look for more opportunities to support incoming missions/study tours and when supporting outgoing missions will encourage the addition of matchmaking sessions.

The CF evaluation identified the importance of clearly defined and accessible indicators to better measure the long-term outcomes of the program and track results against the established indicators.  The evaluation also demonstrated a clear link between economic conditions and demand for loans, and found that CFs continue to provide highly needed loans to support both new and existing businesses.


Program Activity: Innovation
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending23
Planned Actual Difference
$87,226 $88,724 $77,466 77 80 -3

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
A stronger knowledge-based economy Total income from the commercialization of intellectual property Not applicable Not applicable $28.55M (2006)24
Business Expenditure on R&D as % of GDP Not applicable Not applicable 0.55% (2006)25
Employment in natural and applied science and related occupations as a % of total employment 6.50% (increase) Exceeded 6.87% (2008 - represents an increase in the share of employment)

Benefits for Canadians

During 2008-2009, WD approved funding of $63.8M, which leveraged $214.5M from other sources, for 50 projects in support of Innovation. Thirty-one percent was invested in WD's priority area of technology commercialization; an additional 44 per cent was invested in knowledge infrastructure, which supports both R&D, and technology skills development. WD support was primarily given to organizations that support multi-sectors, micro/nanotechnologies, health technologies, and advanced manufacturing technologies. These investments contribute to strengthening the western Canadian innovation system. Since innovation is a long-term process, the results may not be realized for several years and in sectors such as bio-pharmaceuticals, it may take 12 to 15 years to commercialize.

The cumulative impact of all Innovation projects reporting results since April 1, 2005, are included in Table 11a in Section III.

Performance Analysis

To examine longer-term results, WD commissioned an independent assessment of the two sub-activities that represent the largest Innovation-related investments: knowledge infrastructure and technology commercialization. The assessment found that for the five-year period ending March 31, 2007, WD provided funding of $126M to 129 projects, which attracted $2.53 for each WD dollar invested. Most projects were in the life sciences sector (44 per cent) and the information and communications sector (17 per cent). WD's financial support was vital, as only 17 per cent of the projects may have proceeded without it, and if they had proceeded, those projects would have been delayed or reduced in scope in the absence of WD funding. The reported results include the following intermediate outcomes for technology commercialization projects: 

  • 52 technologies adopted,
  • 251 licenses executed
  • 37 technologies to market, and
  • $9M in venture capital invested.26

The knowledge infrastructure projects supported the development of 22,000 square meters of space for R&D and skills training, and reported an incremental $16.4M in R&D.27 As measured against expected performance, most of the projects either met or exceeded the expected results.

Through the examination of the following case studies, the consultants demonstrated how several related projects contribute to enhanced innovation in specific clusters, which in turn enhanced the capacity, function, skills and outputs of the western Canadian innovation system:

Employing a Statistics Canada input/output analysis to quantify the direct and indirect economic impacts of WD investments on GDP and employment, the consultants found that WD's investment of $126M resulted in direct and indirect output of $643M, contributions to GDP of $302M, and 5,630 full-time jobs.

Lessons Learned

With respect to performance measurement, there are several challenges in measuring the impact of WD's investments in Innovation. First, the innovation life cycle from conception to prototyping and commercialization varies by sector and is often not linear. Second, there is often a significant time lag between the realization of results and reporting of results. Third, results may also be affected by factors outside of WD's and project proponent's control, making attribution a challenge. Finally, the development of appropriate performance indicators is also a challenge. In response, WD is addressing these challenges by refining its approach to measuring performance related to Innovation.

Community Economic Development

Strategic Outcome: Economically viable communities in Western Canada with a high quality of life.

WD's Community Economic Development strategic outcome involves economic development, and diversification and collaboration activities, that allow communities to build and sustain their economies as well as adjust to changing and often very challenging circumstances.  It includes facilitating recovery from depressed economic circumstances and working collaboratively with members of the WCBSN to carry out community economic development initiatives in Aboriginal, rural, francophone, and resource-dependent communities.

A partner for WD's involvement in rural community economic development is the network of 90 CFDCs across the West.  These community-based organizations assist their communities to plan and implement strategies aimed at developing and diversifying their economies.

The Community Economic Development strategic outcome also encompasses WD's work with provincial and municipal governments on infrastructure programs including the Infrastructure Canada Program (ICP), the Municipal Rural Infrastructure Fund (MRIF), the Canada Strategic Infrastructure Fund (CSIF), and the new Building Canada Fund (BCF).


Program Activity: Community Economic Planning, Development and Adjustment
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending28
Planned Actual Difference
$112,737 $112,825 $71,234 106 111 -5

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary

Communities have increased economic opportunities and capacity to respond to challenges

Employment: # of new jobs created 92,000 (growth at a slower rate) Exceeded 123,000 (2008 - growth at an increased rate)
Net migration rate -- international and domestic 81,857 migrants (growth at a slower rate) Met 96,300 migrants (2008 - representing growth at a slower rate than 2007)

Benefits for Canadians

In 2008-2009, WD approved new funding of $41.8M, which leveraged $39.5M from other sources, for 129 projects in support of Community Economic Planning, Development and Adjustment.

The cumulative impact of all Community Economic Planning, Development and Adjustment projects reporting results since April 1, 2005, are included in Table 11a in Section III.

Performance Analysis

A key to enhancing the viability of communities, and ensuring stable long-term economic growth, is the diversification of Western Canada's heavily resource-based industrial structure, and increasing the value-added of current economic output. For example, as part of the $200M federal Mountain Pine Beetle Program, WD delivered over $33M in project funding through CEDI to help diversify local economies in communities affected by the mountain pine beetle infestation in B.C. In 2008-2009, WD has approved funding of $17.8M for 105 projects, which leveraged $11.3M from other sources.  In addition, WD approved $6.0M through the AII, which leveraged $12.5M for the Kamloops Airport. Previously, WD provided support to an airport runway expansion project in Prince George through the AII, which will strengthen the local economy by bringing in additional domestic and international flights.

During the current economic slowdown, it is particularly important to ensure that adjustment efforts are carried out in a sustainable, timely and effective fashion. One example of this is the support WD provided over the years to the Port of Prince Rupert Terminal , which is projected to attract 140 vessels and 250,000 passengers annually within 10 years.

The November 2008 evaluation of the CF Program concluded that the CF's community economic development activities support economic growth and diversification of communities and there is evidence to suggest that community capacity has been strengthened. The evaluation also concluded that over the period 1999-2000 to 2005-2006, CFs have led or coordinated 4,902 long-term and 5,803 short-term community economic development projects. Based on long-term census data specific to each CF area, there is evidence to suggest that economic diversification has occurred, and CFs have contributed to reducing the unemployment rate in the communities.

The FEDO impact study, completed in 2008-2009, cites the following case study, which demonstrates the FEDO's success in supporting WD's Community Economic Planning, Development and Adjustment agenda:

Lessons Learned

The high priority placed upon the implementation of the Budget 2009 economic stimulus initiatives, at the end of fiscal year 2008-2009, has meant that much of WD's core program activity had to be temporarily de-emphasized. This may have future implications regarding meeting outcome targets related to core program activity, as well as regarding maintaining relationships with the department's regular clients. On a positive note, the new economic stimulus initiatives may introduce a new client group to the department, which may result in mutually beneficial partnerships in the future.


Program Activity: Infrastructure
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending29
Planned Actual Difference
$10,784 $16,268 $19,254 16 17 -1

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
To maximize economic, social, cultural and environmental benefits to western Canadians through investments in public infrastructure in a coordinated manner with provincial and municipal governments. % of key informants with the opinion that WD delivery of infrastructure programs results in investments that reflect western Canadian infrastructure priorities 50% Not applicable To be measured during 2009-2010
$ value of federal infrastructure projects funded per fiscal year $13.60M Mostly met $12.95M
$ leveraged in addition to federal $ for projects funded per fiscal year $27.20M Not Met $3.12M

Benefits for Canadians

The cumulative impact of all ICP projects approved since program inception in October 2000 are included in Table 11b in Section III.

Performance Analysis

WD plays an important role in the delivery of infrastructure programming, which supports the western Canadian economy and the federal government's Building Canada Plan.  During 2008-2009, WD continued to deliver the ICP in each of the four western provinces.  The ICP was created in 2000 to enhance infrastructure in Canada's urban and rural communities and to improve quality of life through investments that protect the environment and support long-term community and economic growth.  As of March 31, 2009, approximately 98 per cent of the total federal funding of $546M had been committed towards 1,622 infrastructure projects across the West.  A total of $12.95M was expended by the department in 2008-2009, leveraging $3.12M in funding from other orders of government. The performance of $3.12M against the $27.2M target for dollars leveraged is due to the timing of non-federal expenditures and delays in reporting.

WD also delivers infrastructure programs in each western province on behalf of Infrastructure Canada such as MRIF and BCF Communities Component (BCF-CC) as well as manages a number of CSIF and BCF Major Infrastructure Component (BCF-MIC) projects in the West.  Grants and contributions (G&C) funding for MRIF, BCF, and CSIF is provided through Infrastructure Canada's appropriation and is held in a suspense account; operations funding for infrastructure programming continues to be included in WD's estimates.  Details on infrastructure program results for which G&C funds are held in suspense may be found in Infrastructure Canada's Departmental Performance Report.

Lessons Learned

In 2008-2009, WD's Internal Audit group conducted an audit of WD's delivery of national infrastructure programs across the West. The audit conclusions indicated that WD's overall delivery of national infrastructure programs was satisfactory and key recommendations were primarily directed at improving WD's modern management practices. A number of conclusions also implicated WD's delivery partner, Infrastructure Canada, and these conclusions have been shared. A management response will be prepared and will be implemented in 2009-2010.

Policy, Advocacy and Coordination

Strategic Outcome: Policies and programs that support the development of Western Canada.

To achieve this strategic outcome, the department undertakes three distinct, but interrelated program activities:

  1. WD engages in Collaboration and Coordination activities and projects that bring people, communities, ideas and resources together.  The department's efforts emphasize partnerships, collaboration and strategic investments to link western Canadians' views with national policies, priorities and programs.  WD also shares ideas and best practices with other regional development agencies to enhance overall efficiency in federal programming.
  2. WD's Advocacy work is intended to achieve specific outcomes for Western Canada.  Advocacy efforts are undertaken independently to pursue or to influence initiatives that generate benefits for the West, or they can also flow out of the department's Collaboration and Coordination activities.
  3. Research and Analysis is often required to understand the regional development issues facing Western Canada and to guide the department's advocacy and policy-making efforts.  This in-depth policy and economic research and analysis is undertaken and coordinated in collaboration with other public and private stakeholders.  In addition to facilitating dialogue and increasing the understanding of western Canadian challenges, opportunities and priorities, this research provides the foundation needed to develop relevant policies and programs.

Benefits for Canadians

In 2008-2009, WD approved funding of $338,028, which leveraged $782,274 from other sources, for two Research and Analysis projects, which support the Policy, Advocacy and Coordination outcome.

The cumulative impact of all Policy, Advocacy and Coordination projects reporting results since April 1, 2005, are included in Table 11a in Section III.

While this strategic outcome does not entail many G&C resources, considerable human resources are required to fulfill our program activity goals.  In the "Evaluation of Policy, Advocacy and Coordination Functions" (PAC Evaluation), 97 per cent of those interviewed stated that WD activities in this area are relevant and that there exists an ongoing need for such activities.  WD has responded by increasing resources dedicated to Policy, Advocacy and Coordination activities in 2008-2009, and will maintain this increased resource level in 2009-2010.

WD represented western interests in federal decision making and programming in such areas as Canada's Economic Action Plan, the federal science and technology strategy, and the Canada Business Network funding renewal. The evaluation also references WD's role in the Asia Pacific Gateway and Corridor Initiative (APGCI) and the Mountain Pine Beetle Program initiatives as examples of how the department met all of its Policy, Advocacy and Coordination objectives.


Program Activity: Collaboration and Coordination
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
$5,866 $6,311 $4,945 39 41 -2

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Better coordinated economic development activities, policies and programs in the West % of key informants with the opinion that WD activities provide better coordinated economic activities, policies and programs in the West30 50% Exceeded 91%
Ratio of $'s leveraged per WD dollar committed, for projects funded in 2008-2009 through all WD programs $1.00 Exceeded $2.62
$ value of project funding provided under interdepartmental agreements to which WD was a party $25.00M Mostly met $21.73M31

Performance Analysis

WD's Collaboration and Coordination activities in 2008-2009, continued to support the development and diversification of Western Canada.  In the PAC Evaluation, which focuses on WD's Policy, Advocacy and Coordination strategic outcome and covers fiscal years 2003-2004 to 2007-2008, 91 per cent of key informant respondents stated that WD-sponsored or WD-conducted Collaboration and Coordination activities have contributed to better-coordinated economic development activities, policies and programs in the West.  Overall, 87 per cent of respondents stated that WD-sponsored or WD-conducted Collaboration and Coordination activities have contributed to aligning federal and provincial regional economic development priorities in the West.

The department accomplished several significant milestones in the past year including:

  • WEPAs were signed in each of the four western provinces, which will provide $25M in funding, matched by the provincial governments, for a total investment of $200M to stimulate opportunities for western Canadians. The previous round of WEPAs are cited in the PAC Evaluation as an example of WD's success in the area of Collaboration and Coordination.
  • Federal and provincial western ministers with responsibility for economic development and innovation met on April 25, 2008 for the first time to discuss issues of common interest. As a result of this meeting the Western Deputy Ministers Working Group organized a productivity and competitiveness conference held in October 2008 to share best practices as well as to identify opportunities for collaboration
  • WD continued to play a leading role in Regional Federal Councils in each western province. An example of a success is the Interdepartmental Forum on Aboriginal Issues (IFAI), which was established by the Alberta Federal Council to promote integrated horizontal approaches to Aboriginal issues both on and off the reserve at the regional level. Under the IFAI, two coordinating groups have been established, one for regulatory and policy matters, and the other for coordinated program initiatives.

Lessons Learned

WD is known for its work in building and maintaining collaborative relationships. Related work undertaken during the past year led to key successes that can broadly assist economic development in Western Canada.  An important lesson to draw from these successes is the importance of having clearly defined goals and objectives to frame Collaboration and Coordination activities.  For example, the western Canadian economic development and innovation ministers identified five areas of priority for joint action when they met in April 2008.  This clarity provided a framework and a focus around which senior officials could collaborate to address productivity and competitiveness challenges.


Program Activity: Advocacy
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending32
Planned Actual Difference
$2,683 $2,999 $3,602 20 21 -1

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Decisions by other organizations that improve economic policies and programs in the West % of key informants with the opinion that WD activities provide an improved understanding and awareness of western issues, challenges, opportunities and priorities33 55% Exceeded 96%
% of key informants with the opinion that WD advocacy work results in federal policies and programs that reflect western Canadian needs34 60% Exceeded 88%
% of key informants with the opinion that WD advocacy work results in improved awareness of industrial and regional benefits and/or federal procurement opportunities35 50%. Exceeded 66%

Performance Analysis

In 2008-2009, WD achieved its overall Advocacy objectives, which centred on fostering technology commercialization, value-added goods production and export market development in order to develop and diversify the western Canadian economy.  An advocacy strategy was refined in 2008 with assistant deputy ministers assigned as champions to advance WD's priorities of the Asia-Pacific Gateway and Corridor, foreign trade zones, inland ports, aerospace and defence procurement, and science and technology.  In the PAC Evaluation, which surveyed WD's key informants in government business and non-government organizations, 88 per cent of respondents stated that WD's Advocacy activities have contributed to decisions by other organizations that benefit economic policies and programs in the West.

The Government of Canada's billion-dollar investment in the APGCI has created new potential for Western Canada's logistics sector and value-added goods production centres.  WD continues to work with federal and other stakeholders to determine what value-added opportunities may result from the APGCI.

Through initiatives such as CentrePort and Port Alberta, the department began to learn about western Canadian stakeholders' interest in inland ports and foreign trade zones, and considered the need for advocacy to address these issues.  With respect to inland ports, WD advocacy efforts were part of a larger strategy that led to the establishment by provincial legislation of an inland port in Winnipeg, CentrePort Canada Inc.

WD commissioned a free trade zones study to improve the understanding of the potential of foreign trade zones in promoting value-added global trade activity. The study is a useful tool in framing discussions with stakeholders, and informing WD's work to strengthen Western Canada's international trade and value-added opportunities.

WD advocacy in aerospace and defence procurement is an important element of the department's economic diversification efforts, generating benefits for the western economy, businesses, and institutions.  As part of its overall effort in advocating for additional procurement from western Canadian suppliers, WD organized supplier development missions that enabled over 50 firms to market their capabilities to four major international defence contractors.  Department officials also facilitated a number of other events highlighting the capabilities of western Canadian companies to national and international aerospace and defence contractors.  Seventy-four per cent of business organizations surveyed in 2008 said that WD advocacy work contributed to improved awareness of defence procurement and federal procurement opportunities.

WD has also continued to highlight the difficult market conditions faced by Western Canada's forest industry and the need for economic adjustment programming in forest-dependent communities.  This advocacy supported the creation of the federal Mountain Pine Beetle Program, including the CEDI and AII as well as the Community Development Trust .  Further assistance will be provided to various sectors through one of the two initiatives announced in Budget 2009, which will be delivered by WD in Western Canada: the Community Adjustment Fund.

The PAC Evaluation cites the Vaccine and Infectious Disease Organization/International Vaccine Centre (VIDO/InterVac) initiative as an example of WD's success in the area of Advocacy.  In addition, WD's advocacy efforts were successful in attracting United Airlines flights from Saskatoon and Regina to Denver and Chicago.

Lessons Learned

WD Advocacy activities have been successful in contributing to other organizations gaining an improved understanding of western Canadian economic issues.  This improved understanding has resulted in other organizations encouraging economic development in Western Canada.

WD's advocacy efforts in interrelated areas such as APGCI, Mid-Continent Trade Corridor, foreign trade zones, and inland ports highlighted the importance of working collaboratively, sharing information, and approaching these issues strategically.  While the PAC Evaluation showed that WD was successful in its Policy, Advocacy and Coordination activities, WD recognizes that its current organizational structure for these activities could be improved by clarifying departmental priorities, and the roles of the different WD offices, as well as by increasing internal coordination and communications.  The department will be taking measures, consistent with the findings of the PAC Evaluation, to address these issues to harmonize and improve overall effectiveness of its advocacy efforts.

Strong research is necessary to support effective advocacy.  WD's use of the foreign trade zone study as an advocacy tool demonstrated the importance of western Canadian-oriented research to inform and influence others to undertake initiatives for the benefit of Western Canada's economy.  WD's efforts led to a comprehensive examination of current programming related to foreign trade zones, with a view to using it more effectively in support of western Canadian industry.


Program Activity: Research and Analysis
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources
(FTEs)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
$4,160 $4,396 $3,397 27 28 -1

 


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Improved understanding of western Canadian economic issues, challenges, opportunities and priorities % of key informants with the opinion that WD Research and Analysis contributes to an improved understanding and awareness of western Canadian issues, challenges, opportunities and priorities36 55% Exceeded 92%
# of spokesperson and media references to WD economic research and analysis 20 Exceeded 66
# of publications resulting from WD supported economic or policy research projects 4 Exceeded 18

Performance Analysis

WD's Research and Analysis activities in 2008-2009 contributed to improved understanding of western Canadian issues. In a survey of key informants undertaken as part of PAC Evaluation, 92 per cent of respondents indicated that WD-supported and WD-conducted economic and policy research and analysis contributed to improved understanding of western Canadian economic issues, challenges, opportunities and priorities. Eighty-eight per cent of respondents stated that WD-supported and WD-conducted economic and policy research has contributed to decisions being made that support the development of Western Canada.

WD's Research and Analysis activities in 2008-2009 produced a number of valuable products including:

  • Research related to the development of a Western Canadian Gateway Economy, undertaken through WD's allocation from the Government of Canada's $1B APGCI, including research undertaken by the Asia Pacific Foundation of Canada. This research identified success factors of international gateway economies and case studies of three industry sectors in Western Canada, which demonstrate how advanced services complement the physical installations of gateways and corridors;
  • Studies undertaken through the Canada West Foundation's Going for Gold project explored a number of different issues that may impact the economic prospects and opportunities for Western Canada in the international arena; and
  • WD commissioned a comparative analysis of 11 different free trade zones located in United States, Asia, Europe and South America, which will provide stakeholders with a better understanding of the types of programs and activities that encourage value-added production and enhance international trade.

Other previously funded research projects, which have produced valuable results include:

Lessons Learned

Findings from the PAC Evaluation indicated that respondents would like WD to disseminate its research more widely. The department has been taking steps over the past year to enhance the profile of research activities supported by WD through strategic distribution, enhanced web site presence, and increased focus on internal dissemination. The changing economic circumstances in 2008-2009, also pointed to the importance of ensuring that research questions remain relevant in different economic circumstances. Maintaining a medium- to long-term perspective when undertaking research can be challenging when faced with rapidly changing economic circumstances.