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ARCHIVED - RPP 2006-2007
National Research Council Canada


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Acronyms and Abbreviations


ACURA

Association of Canadian Universities for Research in Astronomy

AIP

Atlantic Investment Partnership

ALMA

Atacama Large Millimeter Array

CBRN

Chemical, Biological, Radiation and Nuclear

cGMP

Current Good Manufacturing Practices

CFHT

Canada-France-Hawaii Telescope

CRTI

CBRN Research and Technology Initiative

CTI

Competitive Technology Intelligence

DRDC

Defence Research and Development Canada

FCHP

Fuel Cell and Hydrogen Program

FTE

Full-Time Equivalent

GHI

Genomics and Health Initiative

HRM

Human Resources Management

IP

Intellectual Property

IPF

Industry Partnership Facility

JCMT

James Clerk Maxwell Telescope

LRP

Long Range Plan for Astronomy and Astrophysics

LTRC

Language Technologies Research Center

MSE

Medium-Sized Enterprise

NIC

NRC Information Centre (NRC-CISTI)

NINT

National Institute for Nanotechnology

NMI

National Metrology Institute

NRC

National Research Council Canada

NRC-AMTC

Aerospace Manufacturing Technology Centre

NRC-ATC

Aluminium Technology Centre

NRC-BRI

Biotechnology Research Institute

NRC-CB

Commercialization Branch

NRC-CHC

Canadian Hydraulics Centre

NRC-CISTI

Canada Institute for Scientific and Technical Information

NRC-CPFC

Canadian Photonics Fabrication Centre

NRC-CSIR

Centre for Sustainable Infrastructure Research

NRC-CSTT

Centre for Surface Transportation Technology

NRC-GTL

Gas Turbine Laboratory

NRC-HIA

Herzberg Institute of Astrophysics

NRC-IAR

Institute for Aerospace Research

NRC-IBD

Institute for Biodiagnostics

NRC-IBS

Institute for Biological Sciences

NRC-ICPET

Institute for Chemical Process and Environmental Technology

NRC-IFCI

Institute for Fuel Cell Innovation

NRC-IIT

Institute for Information Technology

NRC-IMB

Institute for Marine Biosciences

NRC-IMI

Industrial Materials Institute

NRC-IMS

Institute for Microstructural Sciences

NRC-IMTI

Integrated Manufacturing Technologies Institute

NRC-INMS

Institute for National Measurement Standards

NRC-INH

Institute for Nutrisciences and Health

NRC-IOT

Institute for Ocean Technology

NRC-IRAP

Industrial Research Assistance Program

NRC-IRC

Institute for Research in Construction

NRC-PBI

Plant Biotechnology Institute

NRC-SIMS

Steacie Institute for Molecular Sciences

NSERC

Natural Sciences and Engineering Research Council of Canada

OAG

Office of the Auditor General of Canada

OECD

Organisation for Economic Co-operation and Development

OTEC

Ocean Technology Enterprise Centre

R&D

Research and Development

S&T

Science and Technology

SMEs

SOFC

Small and Medium-sized Enterprises

Solid Oxide Fuel Cells

STM

Scientific, Technical and Medical

TBS

Treasury Board of Canada Secretariat

TIS

Technology and Industry Support

TRIUMF

Tri-University Meson Facility


Section I — Agency Overview

Minister's Message

Minister of IndustryAs Minister of Industry, I am proud to present this report on the National Research Council Canada's anticipated achievements and results over the next three years. Through the efforts of the National Research Council Canada (NRC) and its Portfolio partners, we are working to ensure that Canada has the necessary business and innovation environment to foster a culture of discovery and creativity to fuel economic success and support our enviable quality of life.

The Industry Portfolio consists of:

  • Business Development Bank of Canada 1
  • Canadian Space Agency
  • Canadian Tourism Commission 1
  • Competition Tribunal
  • Copyright Board Canada
  • Industry Canada
  • National Research Council Canada
  • Natural Sciences and Engineering Research Council of Canada
  • Social Sciences and Humanities Research Council of Canada
  • Standards Council of Canada 1
  • Statistics Canada

1: Federal Crown corporations do not prepare Reports on Plans and Priorities

 

 


Today, we operate in a globalized economy where electronic commerce drives complex and interconnected supply chains from around the world and anyone can be our competitor. To thrive, we need a dynamic and adaptable economy — one with a highly trained work force and nimble businesses striving for competitive growth and development.

Looking ahead, we see the need to enhance Canada's business environment, including improving the critical ground rules that ensure stability, equitable conduct and competition for consumers, investors and businesses. Used strategically, these efforts can encourage investment in innovation, afford easier access to capital, support risk-taking and entrepreneurship, and ensure the efficient and productive allocation of resources.

We are working to reduce barriers to and within our markets and to encourage more domestic and foreign investment. We are supporting and defending our industries. We are working to improve business and consumer confidence. And we are supporting science, technology, research and development to encourage our industries, our businesses and our workforce to keep pace with technological change and drive innovation throughout our economy. And the demand for innovation across the Canadian economy — including in the areas of health care, climate change, productivity and the competitiveness of Canadian firms — continues to rise.

As presented in this report, NRC initiatives will help make Canada a better place to innovate and do business.

It is my pleasure to present the Report on Plans and Priorities for the National Research Council Canada (NRC).


_____________________
Maxime Bernier
Minister of Industry

Management Representation Statement

I submit, for tabling in Parliament, the 2006-2007 Report on Plans and Priorities (RPP) for the National Research Council Canada.

This document has been prepared based on the reporting principles and disclosure requirements contained in the Guide to the preparation of Part III of the 2006-07 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  • It is based on the department's approved Program Activity Architecture structure as reflected in its MRRS;
  • It provides consistent, comprehensive, balanced and accurate information;
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

___________________________
Pierre Coulombe
President

NRC's Business (Summary Information)

Raison d'être

NRC is the Government of Canada's leading resource for Science and Technology (S&T) development. NRC's primary business is:

  • Improving the social and economic well-being of Canadians.
  • Providing technology and industry support for industrial innovation and growth.
  • Supplying excellence and leadership in research and development (R&D).

NRC Benefits to Canadians

NRC delivers on its strategic outcome by creating wealth, knowledge and social capital for Canadians.

Figure 1-1: NRC Benefits to Canadians

NRC's Strategic Outcome

An innovative, knowledge-based economy for Canada through research and development, technology commercialization and industry support

Figure 1-1: NRC Benefits to Canadians

NRC Alignment with Canada's Performance

NRC has a long history of making valuable scientific discoveries that strengthen Canadian industry and contribute to the well-being of Canadians and others worldwide. NRC's Vision 2006 supports two main Government of Canada priorities as outlined below.

A Sustainable Economy

"A better life for all Canadians is the highest priority for the government. To ensure our long-term prosperity, we need to increase our productivity." [1] Global leadership in science and technology, education and commercialization are the cornerstones to achieving this objective. Through its dedication to excellence in research and development and its focus on technology cluster growth, knowledge transfer and the development of outstanding people through education and training, NRC is a key contributor to a sustainable, innovative and prosperous economy.

Canada's Place in the World

Canada seeks to play a major role in meeting the economic, health, environmental and security challenges facing the world. NRC supports all of these goals – combining leading-edge research in key areas such as genomics, health, sustainable technologies and the environment with a strong focus on global reach and international research collaborations to develop the scientific and technological advances needed to enhance the quality of life of Canadians and others around the globe.

NRC Plans and Priorities

Putting Plans and Priorities into Context - NRC's Operating Environment

NRC Unique Attributes

NRC has:

  • A national S&T infrastructure positioned to: improve Canada's innovation capacity in existing and emerging fields of research; build networks for researchers and businesses; train highly qualified personnel; create new technology-based companies and jobs; and transfer knowledge and technology to Canadian companies.
  • A core strength of over 4,000 talented and dedicated people, 19 research institutes, 15 industrial partnership facilities, the Industrial Research Assistance Program (NRC-IRAP), the Canada Institute for Scientific and Technical Information (NRC-CISTI) and two technology centres.
  • The ability to help companies move from discoveries in the laboratory to the development, prototyping and commercialization of these ideas and technologies for the global marketplace.
  • The skills to manage research towards short and long-term specific goals.
  • The capability to bring together multi-disciplinary research teams to tackle issues of national importance.
  • The ability to put together national programs for delivery in regions across the country.

National S&T Infrastructure

NRC delivers a national S&T program with laboratories, centres and facilities in communities across Canada (http://www.nrc-cnrc.gc.ca/contactIBP-eng.html).

Ownership, Management and Maintenance of Capital Assets

Responsible for its own highly technical and complex operations, NRC manages 175 buildings totalling approximately 517,406 square metres of space.

Funding

NRC is funded through government appropriations. In the course of providing technical services to companies and other organizations, it recovers its costs for the purpose of reinvesting in the operation and maintenance of equipment and facilities.

Table 1-1: NRC Resources for the Planning Period

NRC Resources 2006-2007 2007-2008 2008-2009
Financial Resources ($ millions) 714.1 659.7 651.4
Human Resources (Full-Time Equivalents – FTEs) 4,033 4,090 4,141

NRC New Strategic Direction: Building a Roadmap for Future Sustainability

NRC launched a new Vision and strategic plan in 2006-07, "Science At Work for Canada: A Strategy for the National Research Council 2006-2011", that will guide the organization successfully over the next five to ten years. The new strategic plan builds on insights gained through the NRC Renewal Initiative, which included a foresight exercise and extensive internal and external consultations to define the organization's future opportunities and new directions.

Under the plan, NRC will anticipate and respond to important national priorities such as sustainable energy, healthy Canadians, safe and connected communities, protecting and managing our natural resources, and strong, productive and competitive industrial sectors by engaging innovation system participants in multi-stakeholder collaborations and developing key competencies that will position NRC for the future. Recognizing that multi-stakeholder partnerships and horizontal initiatives are increasingly necessary to marshal effective responses to government priorities, NRC will continue to work closely with other science-based departments and agencies on cross-cutting issues such as climate change, oceans management, genomics and public security.   

From an operational perspective, NRC will continue to explore ways to sustain its asset base in the face of annual inflationary pressures, aging buildings and equipment and a static core budget. The organization will also focus on strengthening its management systems and financial base for future sustainability. This will include continuing to address recommendations made by the Office of the Auditor General of Canada (OAG) in its March 2004 Report and by the Government Expenditure Review. NRC prides itself on being an adaptable, flexible organization. These attributes will be particularly important in the years ahead as NRC strives to deliver the best results possible for Canadians. Figure 1-2, Strategic Framework for NRC Plans and Priorities, highlights NRC's plans and priorities for the next three fiscal years and Table 1-2 provides information on planned strategies.

Figure 1-2: Strategic Framework for NRC Plans and Priorities

Canada's Performance - The Government of Canada's Contribution - 2005

To Build a globally competitive economy, the Government of Canada is dedicated to pursuing its commitment to invest in skilled knowledge workers, cutting-edge research, science and innovation

arrow

NRC's Strategic Outcome

An innovative, knowledge-based economy for Canada through research and development, technology commercialization and industry support

arrow

NRC Priorities 2006-2007 to 2008-2009 and Planned Strategies

Figure 1-2 NRC Priorities 2006-2007 to 2008-2009 and Planned Strategies

Table 1-2: NRC Business and Management Priorities for the Planning

NRC's Strategic Outcome:
An innovative, knowledge-based economy for Canada through research and development, technology commercialization and industry support

Planned spending
($ millions)

Priorities and Type

Program Activity/ Expected results

2006-2007

2007-2008

2008-2009

Priority no. 1
Research and Development for Canada: Economy, Environment, Health & Safety

Type: ongoing

Program Activity: Research and Development

390.66

369.08

369.31

Expected results:

  • Leadership in new and emerging research domains
  • Excellence in R&D and innovation
  • Stewardship of large-scale S&T infrastructure
  • Contribution to federal strategies and initiatives
  • Research that benefits Canadians
  • Harmonization of international standards
  • New international S&T alliances

Priority no. 2
Technology and Industry Support: Serving as a Catalyst for Industrial Innovation and Growth

Type: ongoing

Program Activity: Technology and Industry Support

179.22

191.04

190.82

Expected Results:

  • Creation of new technology-based companies
  • Access to new technologies for Canadian firms through patents and licensing
  • Enhanced innovation capacity of firms
  • Improved dissemination of knowledge
  • Supporting the Canadian Industry

Priority no. 3
Enhancing Development of Sustainable Technology Clusters for Wealth Creation and Social Capital

Type: previously committed

Program Activity: Research and Development and Technology and Industry Support

75.89

29.54

22.00

Expected Results:

  • Competitive research and development base for cluster development
  • Innovative firms and deep talent pools in regions across Canada
  • Community ownership of cluster initiatives – local leadership and strategies
  • Improved quality of life through increased productivity and new technology-based solutions in health, for industry, the environment, etc.

Priority no. 4
Program Management for a Sustainable Organization

Type: ongoing

Program Activity:

Research and Development* and

Technology and Industry Support*

*Program Activities' contributions to this priority are significantly supported by NRC's Corporate Branches which provide policy, program advice and executive support for the coordination and direction of NRC's operations and its governing Council. The Corporate Branches also specialize in finance, information management, human resources, administrative services and property management, and corporate services.

68.28

70.06

69.28

Expected Results:

  • Establishment of clear corporate strategic direction
  • Enhanced corporate governance
  • Enhanced decision support
  • Effective research management practices
  • Long-term stability of financial, human and capital resources
  • Effective communications with NRC stakeholders

Priority 1 Research and Development for Canada: Economy, Environment, Health and Safety

Research and innovation are critical to Canada's future economic growth and an improved quality of life for Canadians. As Canada's foremost R&D agency, NRC concentrates its efforts on two vital elements of R&D excellence: quality and relevance. For the planning period, NRC will play a key role in helping Canada reach its full potential in research performance in fields that are of current and future importance to the Canadian economy and that address important public and Government priorities. To achieve this, NRC will work in collaboration with industry, university and government partners in Canada and abroad. Creating value from knowledge, providing a national S&T infrastructure, maintaining and fostering international alliances and supporting the commercialization of federal R&D are integral parts of NRC's business. 

Planned Strategies

Over the planning period, NRC will:

  • Create value through R&D in sectors with the greatest economic impact for Canada (Aerospace, Manufacturing, Information and Communications Technologies)
  • Invest in leading-edge research including increased horizontal and multi-disciplinary R&D (Nanotechnology, Fuel Cells, Life Sciences, Genomics and Health).
  • Build sustainability through research in the Environment, Oceans Management, Coastal Science and Engineering.
  • Support Canadian industry and the research community through codes standards and investments in large-scale R&D infrastructures.
  • Continue to implement Canada's Long Range Plan for Astronomy and Astrophysics.

Plan Rationale / Key Influencing Factors

Aerospace, Manufacturing and Information and Communications Technologies (ICT) are important economic engines for Canada: Canada's aerospace sector is the country's leading advanced technology sector, investing $900 million [2] in R&D. Its annual output of $21.5 billion makes Canada the third largest global supplier after the United States and the European Union. In 2003, Canada's manufacturing sector contributed 17% of GDP, 70% of total exports and represented almost 62% of private industrial R&D[3]. Canada is a significant player in the global ICT industry. Canada's 32,000 ICT companies employ more than 579,000 skilled Canadian workers and generate over $125 billion in revenues[4]. The communication equipment manufacturing sector alone is the largest R&D spending industry, representing 12.1% of total R&D spending in Canada.[5]

Nanotechnology is a strategically important area of research for Canada with substantial potential application and economic value for Canadians – The rich diversity of invention enabled by nanotechnology may allow revolutionary developments in medicine, materials, pharmaceuticals, and electronics. The economic and social impact of nanotechnology may be profound: discoveries and applications of nanotechnology could lead to a new industrial revolution in the coming century, and to commercial markets as large as $1.5 trillion per year within 10-15 years. Nanotechnology is a fast-growing and revolutionary field in which Canada needs to build and sustain world leadership.   NRC is helping Canada stake its place in nanotechnology through its research in applications for medical devices, electronics, fuel cells and construction materials and the development of its new National Institute for Nanotechnology (NINT) a partnership with the University of Alberta and the Province of Alberta.

Life Sciences, Genomics and Health research are fundamental to addressing critical public concerns such as controlling and fighting infectious diseases, developing more effective drug therapies, diagnostic tools and equipment – The global market for life sciences is estimated at $500 billion and is growing at 20% annually.[6] NRC has had significant success in this research area, providing important value to Canada and the world, including a number of world-firsts such as a non-invasive test for colon cancer and a new vaccine against meningitis C. 

Climate change, future energy sources and the environment continue to be major national issues – Climate change exposes Canada to significant risks. The disruption of ocean currents and weather patterns threaten habitats and coastal regions. Elimination of toxins from our air, water and soil and the production and use of more clean and efficient sources of energy are also issues of concern. A number of NRC research programs (e.g. ocean science, biotechnology, manufacturing, construction, aerospace, chemical processes and environmental technology) focus on the physical environment and ways to reduce and reverse industrial environmental impacts.

Over the coming year, the Minister of Industry will be developing a science and technology strategy, in collaboration with the Minister of Finance, that will encompass the broad range of government support for research, including knowledge infrastructure.[7]  NRC's focus on expanding horizontal and multi-disciplinary R&D across the organization and with other federal S&T organizations will support this strategy.   NRC research is dismantling longstanding barriers between many different research domains (i.e. life sciences and information technology) to create powerful new technology platforms and   partnerships to serve the interests of Canadian society and businesses. NRC is also actively working with other science-based departments and agencies to address horizontal management issues related to federal S&T collaborations and infrastructure renewal. NRC is participating in a number of S&T initiatives with other government organizations to combine efforts to better meet federal priorities such as the Canadian Biotechnology Strategy, Ocean Action Plan, the Chemical, Biological, Radiation and Nuclear Research and Technology Initiative and others.


Priority 2

Technology and Industry Support: Serving as a Catalyst for Industrial Innovation and Growth

The forces of globalization are placing increasing pressure on Canada's competitiveness – making innovation an imperative for economic survival. In 2004, Canada's ratio of Gross Expenditures in Research and Development (GERD) to Gross Domestic Product (GDP) (1.91%) fell short of the Organisation for Economic Co-operation and Development (OECD) average of 2.24%.[8]  While Canada's Industrial Research and Development spending is set to rise 1.6%, $13.8 billion, in 2005[9] it remains 3.3% below the peak level of $14.3 billion observed in 2001.

In Canada 97.6% of firms have fewer than 100 employees, the majority of which do not have the resources or the capacity to either develop their own or contract out significant R&D projects. With its industrially-focused technology support, NRC's role becomes even more important. For the planning period, NRC will build upon its critical mass and expertise in key technologies, knowledge transfer mechanisms, business support facilities and services across Canada to strengthen innovation and growth in Canadian businesses. It will also continue to develop strategic initiatives to help Canadian businesses better compete in the global marketplace. 

Planned Strategies

Over the planning period, NRC will:

  • Increase the innovation capacity of small and medium-sized enterprises (SMEs)[10]: grow SMEs to Medium-sized enterprises (MSEs).
  • Contribute to Canada's commercialization priority by strengthening industry's ability to generate and apply new ideas and foster commercial application of S&T.
  • Enhance industry knowledge through development and dissemination of scientific, technical and medical information and intelligence.
  • Facilitate the integration of intellectual property management strategies in institute strategic plans.

Plan Rationale / Key Influencing Factors

NRC is contributing to the Government of Canada's commercialization priority – NRC is examining commercialization from three perspectives: talent, ideas and capital. It is doing so to ensure continued progress and success in a broad set of commercialization activities for firms that include: access to knowledge, expertise and technology licensing; provision of pre-commercialization assistance, mentoring and business intelligence; access to vital national and international networks, knowledge and expertise; assistance in creating new products and / or technologies; new company creation where there is no outside receptor capacity; and the development and nurturing of unique technology clusters across Canada. NRC will build on these strengths to develop strategic initiatives with key partners.

SMEs are a key source of innovation for Canada but challenges still exist – SMEs are predominant in Canada's economy (99% of all Canadian businesses), yet their full potential remains remarkably untapped. SMEs, especially innovative ones, can make important contributions to Canada's economic performance, notably in terms of increased employment and productivity. However, SMEs are struggling to survive and grow. The survival rate of new companies is low – only 32% survive after five years in business. In Canada, 91% of firms with fewer than 20 employees remained in the same employment size category between 1991 and 2001.[11]  The majority of SMEs are also slow adopters of new technologies due to their limited financial resources and difficulty in obtaining R&D financing. Continued support of SMEs is essential to building Canadian industrial innovation and growth.


Priority 3

Enhancing Development of Sustainable Technology Clusters for Wealth Creation and Social Capital

Dynamic economies based on niche technologies are emerging in communities and regions around the world. Driven by cooperation and a shared vision between stakeholders, many of these technology clusters receive critical support from associations, public research institutions and governments. As these micro-economies mature (often over 15 to 20 years) they can foster significant local and regional growth – accelerating company expansion, spurring the emergence of new firms and attracting dynamic talent to the region. Canada faces unique economic challenges with its vast geography, relatively small population and predominance of SMEs.

Over the last five years, the Government of Canada has provided resources to support emerging technology clusters in a number of communities across Canada. Continuing with this strategy, it has provided NRC with $110 million in additional funds over the next five years to further develop its cluster initiatives in Atlantic Canada. NRC will continue to nurture cluster growth in the Atlantic region by providing specialized research and development capabilities and encouraging commitment and leadership among cluster partners. NRC will also be seeking to renew its funds in 2006-2007 for its other technology cluster initiatives in Eastern, Central and Western Canada (Round II Clusters).

Planned Strategies

Over the planning period, NRC will:

  • Focus on cluster growth through targeted R&D programs and partnerships with other S&T organizations.
  • Pursue long-term investment and management strategy centered on sustained effort and patient investment
  • Sustain continuous improvement through unique and innovative performance measurement strategies.

Plan Rationale / Key Influencing Factors

NRC is actively supporting the Government of Canada's priority for regional and economic development through community-based technology cluster initiatives – NRC's technology cluster activities build on existing local strengths by: undertaking R&D that responds to cluster needs; collaborating with partners (particularly firms); fostering networking; and providing industry with access to pre-commercialization assistance, such as incubation opportunities and financial and technical advisory services.

Development of sustainable technology clusters requires attraction and retention of sustained resources from key cluster stakeholders – Dynamic technology clusters require specialized infrastructure, highly-qualified people, risk capital and the ongoing and active support of local stakeholders to sustain growth and generate economic and social benefits to Canadian communities.

NRC is implementing new tools and approaches to track the growth of the clusters – NRC has developed a unique cluster measurement approach that collects comprehensive data on cluster development and the role of NRC. This cluster measurement approach will be used as part of the evaluation of NRC's Round II Clusters and will enable NRC and its partners to track cluster growth over time and identify areas for concerted action.   


Priority 4

Program Management for a Sustainable Organization

The ability to perform at the leading-edge of R&D and to support Canadian industry in becoming more technology intensive and innovation-driven requires the best available equipment and facilities and highly qualified scientists, engineers, technicians and other professionals. NRC faces challenges in sustaining these key resources and will continue to focus on strategies to address these challenges. 

Planned Strategies

Over the planning period, NRC will:

  • Reposition for the future through the NRC Renewal initiative;
  • Address its Management Accountability Framework commitments; and
  • Continue to address the recommendations of the Auditor General of Canada.

Plan Rationale / Influencing Factors

Looking forward: science and technology for the 21st century – NRC will build on the successes and lessons learned from implementing Vision 2006 – reviewing the value and continuing relevance of its activities and refocusing its research efforts as appropriate. NRC's Renewal Initiative has included foresight enquiry, studies of global and national challenges, national stakeholder consultations and dialogue with the federal science community and central agencies about the role and expectations for NRC. All these activities have widened the range of strategies being considered by NRC's management. The results were crafted into a new vision and strategic direction in the Spring of 2006. Since then, the Renewal Initiative has moved into Phase 4 to focus on the implementation and monitoring of NRC's new strategic plan.

Taking action to be a more flexible, adaptable organization – Today's organizations must be able to make timely decisions in order to respond quickly and appropriately to constantly changing external opportunities, challenges and risks. NRC will continue to develop an integrated planning, risk and performance management solution to support effective decision-making and priority-setting by senior management and NRC institutes, programs and branches.

Need for attraction, training and retention of highly qualified personnel – The core of NRC's performance and success is the knowledge, imagination, dedication and creativity of its staff and its ability to attract, train and retain highly qualified S&T people. NRC faces stiff competition from around the world in attracting researchers. In addition, about 25% of NRC's S&T professionals and over 38% of NRC's management cadre will be eligible for retirement in the next five years. 

Need for increasing horizontal S&T linkages among S&T-based departments and agencies –   The Government is striving to increase horizontal S&T linkages among S&T-based departments and agencies to ensure the effective optimization of federal S&T investments. To this end, NRC is actively involved in the S&T Integration Board and the Senior ADM Advisory Committee (SAAC). To optimize its future performance, NRC will need to manage its human resources along cross-functional, cross-organizational and multi-disciplinary lines.

Addressing significant budget pressures around NRC's on-going operations, buildings and equipment – Through its Renewal Exercise, NRC is formulating a long-term financial strategy to deal with significant pressures ranging from a relatively flat A-base (operating and capital) over the past decade to ever-increasing facilities and equipment pressures arising largely out of the rapid pace and evolution of science and technology, higher industry standards, and the natural ageing of our infrastructure. A Long-Term Capital Plan is under development, looking at the challenges of maintaining and repairing 175 buildings across the country, 60% of which were constructed over 30 years ago. Furthermore, NRC continues to address significantly rising energy costs. Despite a number of innovative measures to achieve energy savings, these costs have risen from $19 million in 1998-99 to $32.25 million in 2004-05. A sound financial strategy is an essential cornerstone of NRC's immediate and long-term capacity to contribute to Canada's productivity, standard of living, and other key national priorities. Priority-setting and resource allocation decisions will be central to this strategy.

Addressing recommendations made by the Office of the Auditor General of Canada and Management Accountability Framework commitments – NRC will continue to address the Auditor General's recommendations in regard to NRC's corporate governance and strategic direction, research management at the institute level, human resources management and performance measurement and reporting. NRC's integrated planning, risk and performance management solution will be an important business process that will address the Auditor General's recommendations and the organization's Management Accountability Framework commitments.



[1] http://www.fin.gc.ca/budget06/speech/speeche.htm, The Budget Speech (May 2006), The Honourable James M. Flaherty, Minister of Finance.

[2]Statistics Canada, Industrial Research and Development, 2004 Intentions, Cat. No 88-202-XIE

[3]Industry Canada, Industrial Analysis Branch, Sept. 2004

[4]http://strategis.ic.gc.ca/epic/internet/inict_c-g_tic.nsf/en/home

[5]Statistics Canada, Service Bulletin, June 2005, Cat. No. 88-001-XIE

[6]NRC Atlantic Initiatives: Building Technology Clusters, 2004. Life Sciences National Research Council Canada, p. 9

[7]Budget 2006: Focusing on Priorities, May 2006, http://www.fin.gc.ca/budget06/bp/bpc3be.htm

[8]OECD, Main Science and Technology Indicators, GERD as a percentage of GDP, p.18, Volume 2005/1

[9]Statistics Canada, Service Bulletin, Science Statistics, Industrial Research and Development, June 2005

[10] Firms having 500 or fewer employees

[11] Statistics Canada, Business Dynamics in Canada, 2005