ARCHIVED - RPP 2007-2008
Industry Canada

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Section 2: Analysis of Program Activities by Strategic Outcome

Strategic Outcome: A Fair, Efficient and Competitive Marketplace

Each of the following program activities contributes to the strategic outcome through programs and initiatives, policy development and service delivery. Both financial and non-financial information are provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Marketplace

Description: Development of marketplace framework policy
Expected Result			Indicator
Development and coordination of policy frameworks that support a fair, efficient and competitive marketplace			Legislative initiatives tabled and approved, aimed at improving Canada’s broad marketplace framework (e.g., copyright, insolvency, intellectual property, competition policy)
2007–2008		2008–2009		2009–2010
$9.1M	87 FTEs	$10.3M	87 FTEs	$9.3M	82 FTEs

Competitive markets that drive innovation and productivity and increase consumer well-being are essential to Canada’s long-term prosperity. The Policy Sector contributes to this overarching goal by working with other sectors within Industry Canada as well as with other federal departments on initiatives to create a business climate that attracts and retains investment, innovative industries and talented workers. The Sector also seeks to reduce barriers to labour and capital mobility. These initiatives are linked to the government’s broader competitiveness and prosperity agenda and include telecommunications policy initiatives, marketplace legislation and Smart Regulation. In collaboration with other sectors, the Policy Sector develops policies that are flexible and responsive to changing technologies, marketplace opportunities and an evolving global marketplace. Some of the key policy initiatives that will be undertaken by the Sector in 2007–2008 include the following:

• In partnership with the Canadian Intellectual Property Office (CIPO) examine the possibility of providing additional protection for Olympic marks and symbols, in the context of the 2010 Olympic and Paralympic Winter Games in Vancouver. Such legislation would help protect Olympic brands and contribute to the financial success of the Games.
  
• Proceed with the statutorily mandated review of the provisions in the Patent Act relating to Canada’s Access to Medicines Regime (CAMR). The review will examine whether and how CAMR can better deliver on Canada’s commitment to facilitate access to medicines in the developing world, while meeting its international trade obligations and respecting the integrity of the domestic patent system.
  

In addition to the policy initiatives noted above, the Policy Sector will continue with its efforts under the Paperwork Burden Reduction Initiative to promote the competitiveness and prosperity of small businesses by reducing the paperwork burden imposed on them. The government’s commitment to reduce the paperwork burden was confirmed in Advantage Canada, the government’s economic plan (November 2006), which included a commitment to implement a 20-percent reduction target. The Small Business Policy Branch (SBPB) will continue to provide support in the future to the joint private–public sector Advisory Committee on Paperwork Burden Reduction (ACPBR), in order to measure the paperwork burden for small businesses and identify concrete initiatives for reducing the burden. In particular, the SBPB will work with the ACPBR to implement the recommendations in their report released in March 2006 regarding a paperwork burden reduction target. The SBPB will also report on findings from the Statistics Canada Survey of Regulatory Compliance Costs through a series of survey briefings. In addition, the SBPB will coordinate efforts across government to establish a baseline measure of the burden and identify concrete initiatives for reducing it.

Program Activity: Operations Sector — Marketplace

Description: Development of instruments and compliance with the marketplace framework
Expected Result			Indicators
Marketplace fairness, integrity and efficiency is protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management			Public confidence in the insolvency system Renewal and continuous improvement of rules and requirements governing trade measurement Public confidence in federal incorporation regime Year-over-year number of radiocommunications investigations conducted/resolved by the Regions
2007–2008		2008–2009		2009–2010
$91.7M	1,332 FTEs	$86.1M	1,329 FTEs	$79.7M	1,327 FTEs

To ensure that the marketplace continues to foster competitive conditions that attract investment, encourage innovation and protect the public interest, the Operations Sector — through the work of the marketplace service organizations — will contribute to a new modern approach to Smart Regulation and to the reduction of the administrative and paper burden for Canadian businesses, especially for small and medium-sized enterprises. This will be achieved through enhanced use of technology and improved administrative efficiency of regulations.

Office of the Superintendent of Bankruptcy

As part of a broad strategy to facilitate and encourage the use of technology in the marketplace, the Office of the Superintendent of Bankruptcy (OSB) is implementing mandatory e-filing by trustees. Trustees are licensed (and supervised) by the Superintendent to provide insolvency services pursuant to the Bankruptcy and Insolvency Act. Last fiscal year, the OSB completed the development of its multi-phased e-filing system that allows trustees to conduct online transactions. To date, the national e-filing rate has reached 80 percent of insolvency filings. This increased use of e-filing will maximize the return on investment in e-filing technology, increase staff and trustee efficiency, reduce the paperwork burden and, most importantly, enhance the OSB’s policy capacity to support future legislative reforms and the regulatory agenda.

Measurement Canada

A characteristic of a fair, efficient and competitive marketplace is the presence of effective regulatory instruments. As part of its ongoing commitment to ensuring that efficient regulations are in place, Measurement Canada will continue consultations with key stakeholders, including the manufacturers of measuring instruments (scales, gasoline pumps, and electricity and natural gas meters), relevant associations, businesses and service providers to identify broad themes and key areas to be addressed as part of proposed modifications to the Weights and Measures Act and the Electricity and Gas Inspection Act. As part of this initiative, Measurement Canada will also survey other international government jurisdictions to ensure that proposed amendments to Canada’s legislative framework facilitate trade, encourage the adoption of new technologies, and promote continued confidence in Canada’s measurement control frameworks. Measurement Canada will also continue its work to establish regulations that emulate international standards and Smart Regulation principles to ensure the renewal and improvement of the rules and requirements that govern trade measurement.

Corporations Canada

As part of its efforts to ensure an efficient marketplace, in 2007–2008, Corporations Canada will continue to develop an integrated information technology (IT) system for processing transactions internally and to encourage online filing. Once completed, the integrated system will achieve the following:

• address evolving business and client needs;
• facilitate innovative and efficient ways to serve Canadians;
• provide for IT security options; and
• improve interdepartmental communications.
  

In 2007–2008, the provisions and operations of the Canada Business Corporations Act are required to undergo a parliamentary review. Corporations Canada, along with the Policy Sector, will continue to prepare for the review by considering various issues identified by stakeholders and by providing a status report on the operations of the Act over the past five years.

Another way that Corporations Canada is contributing to a more efficient and competitive marketplace is through the 2006 launch of a pilot project called Pre-Approved Articles with two of its key clients. The purpose of this project is to provide faster and more efficient service to intermediaries (e.g., search houses and law firms) who are major users of Corporations Canada’s incorporations services. Intermediaries will be able to submit standard articles that they use to incorporate businesses to Corporations Canada for approval. Once approved, the intermediaries can file their applications for incorporation simply by referring to an identification number. This new service offers Corporations Canada clients an innovative way to save time and paperwork. In 2007–2008, Corporations Canada will be in a position to complete the pilot project and will begin offering all intermediaries an opportunity to file pre-approved articles.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Description: Development of regulations, policies, procedures and standards governing Canada’s spectrum and telecommunications industries and the digital economy
Expected Result			Indicator
A policy and regulatory framework to govern Canada’s radiocommunications and telecommunications infrastructure in support of Canadian marketplace requirements and shape the digital economy			Degree of client satisfaction in the Canadian marketplace with the current policy and regulatory framework
2007–2008		2008–2009		2009–2010
$50.1M	366 FTEs	$46.4M	366 FTEs	$46.4M	366 FTEs

Telecommunications Modernization

Industry Canada ensures a modern telecommunications policy and regulatory framework, and effectively manages the radio frequency spectrum in the public interest to meet the communications needs of all Canadians and to encourage the adoption of enabling technologies across the economy. The radio spectrum is a public resource used by wireless carriers to provide a growing range of telecommunications services, but also for broadcasting, public security, emergency, and private and commercial uses. Industry Canada consistently strives to balance its roles of enabling a fair, efficient and competitive marketplace, rendering reliable and affordable telecommunications services to all Canadians, while ensuring timely and efficient access to spectrum to meet the evolving demands of users.

As the underlying infrastructure of Canada’s economic activity, telecommunications services are key to Canada’s economy and future well-being. In recent years, the telecommunications landscape has changed dramatically, necessitating an evolution in policy and regulatory approaches, as recognized by the Telecommunications Policy Review Panel in March 2006.

As recommended in the Panel’s report and outlined in the Government of Canada’s Advantage Canada plan, the Department’s goal is to reshape telecommunications policy so that it supports an internationally competitive and robust telecommunications industry in Canada that results in greater choice, more innovative products and better services for the Canadian consumer.

Industry Canada has already undertaken a number of important actions in telecommunications reform. These include:

• issuing the first policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC) under the Telecommunications Act. The policy direction to the CRTC requires it to rely on market forces to the maximum extent feasible;
  
• the government’s decision to change Telecom Decision CRTC 2005-28 in order to accelerate deregulation of certain Voice over Internet Protocol (VoIP) services provided by the former monopoly telephone companies; and
  
• the government’s proposal to change the CRTC’s regulatory “forbearance” framework for deregulating local retail telephone services provided by former monopolies.
  

In fiscal year 2007–2008, Industry Canada will continue to advance the government’s agenda for telecommunications policy reform, including updating legislative and regulatory frameworks. The Department will also continue to monitor the impacts of actions already undertaken to assess their effectiveness in reducing the regulatory burden on businesses, promoting competition in the telecommunications industry and making regulation more efficient.

The government has consistently supported the timely deployment of Wireless Number Portability (WNP). Following the development of an implementation plan by the Canadian Wireless Telecommunications Association, and related CRTC regulatory decisions, WNP is scheduled to be available in metropolitan areas across Canada on March 14, 2007. Industry Canada will continue to review industry and regulatory developments to assist in the successful introduction of WNP for Canadians and in the ongoing consideration of related policies.

Spectrum Management and Engineering

Modernizing Canada’s telecommunications regulatory regime also includes making the management of spectrum more modern, flexible and efficient. Technology convergence is blurring the lines that previously existed between wireline, broadcast and wireless services, and content delivery. There is a growing demand for mobile services and, consequently, for spectrum, which is a finite resource. In 2007–2008, Industry Canada will undertake several priority actions to manage this revolution and ensure a competitive marketplace that benefits Canadian businesses and consumers.

Advanced Wireless Service (AWS): The Department plans to issue a consultation paper to establish a policy framework for the auction of spectrum for AWS. Areas of consultation will include spectrum auction rules and input from the industry on competition issues. Interested parties will be invited to publicly address issues and make proposals related to the auction. The consultation will also include a “reply comment” phase, which will provide an opportunity to challenge the positions and assertions of other parties. Consistent with the Government of Canada’s commitment to Smart Regulation, these actions support the objective to build a fair, efficient and competitive marketplace, thereby ensuring that the Canadian wireless industry remains in step with developments in North America and Europe.

Licensing Spectrum: The Minister of Industry announced that Industry Canada will be opening some spectrum in the 2500 MHz range. A consultation paper is to be released in 2007 that will lead to the auction of the spectrum. Areas of consultation will include policy considerations and transition provisions for the incumbents, including broadcasting distribution licensees currently in the band, spectrum auction rules, and input from the industry on competition issues. The process will be similar to the AWS consultation process with similar competition objectives. Additionally, the Department expects to complete the consultation for the licensing of public air-to-ground radio service for use on board aircraft, and to facilitate the introduction of new wireless technologies such as ultra-wideband, software-defined and cognitive radio.

Satellite Communications: In July 2006, the Minister of Industry launched a licensing initiative to authorize the development of Canadian satellite communications services. The objective of the initiative is to ensure that satellite capacity will be available to satisfy Canadian requirements for broadcasting and telecommunications. The consultation process was completed in January 2007, and the Department will provide a recommendation to the Minister of Industry on the assignment of licences in spring 2007.

Industry Canada continues to carry out spectrum and telecommunications engineering work in support of these activities and to ensure that Canada is at the forefront of new telecommunications services and equipment.

The Department has a key role in representing Canada’s telecommunications and spectrum interests internationally. In fiscal year 2007–2008, Canadian positions and proposals will be negotiated at the World Radiocommunication Conference (WRC) 2007 to ensure that Canada has access to new spectrum allocations, while protecting existing services. Proposed allocations will include spectrum for next-generation personal communication services and equipment, high-frequency broadcasting, and the space sciences for weather services and earth exploration satellite services, among others.

Over the next two years, Industry Canada will also negotiate Mutual Recognition Agreements with Israel, Japan and the Asia–Pacific Economic Union (APEC) and negotiate 15 Canada–United States Arrangements to allow for the introduction of new services. The details of the DTV (Digital Television) Final Allotment Plan will also be negotiated and finalized with the United States in 2007–2008. This will allow for the full implementation of high-definition television in Canada.

Furthermore, Industry Canada will develop national standards for the introduction of new equipment for ultra-wideband technology in 2007–2008. National standards for broadband over power lines will be developed in 2007–2008 should the industry indicate a requirement. In addition, Industry Canada will continue to provide expert advice on the impact of next-generation networks.

Security and Infrastructure Protection

Telecommunications networks play a critical role in responding to emergencies, including alerting the public and providing disaster relief (e.g., public safety communications, 911 service and weather warnings) to ensure the safety and security of Canadians. Industry Canada will continue its activities related to emergency telecommunications planning, preparedness and response. Given Canada’s reliance on a variety of complex communications services, there is an increasing need to ensure that the highly developed telecommunications networks supporting such services are available and remain safe from criminals, terrorists and damage from electronic and natural disasters. In partnership with other government departments, Industry Canada will continue to work to assist law enforcement officials in their efforts to protect Canadians. The Department will also support the necessary R&D within government, industry and academia to sustain the knowledge base required to ensure that Canada’s telecommunications networks are secure.

E-Commerce

The rapid expansion of electronic commerce and the dramatic development of the online marketplace have become key elements of the 21st-century economy, increasing the competitiveness of Canadian businesses and enhancing their potential for innovation. Industry Canada develops effective legal and policy frameworks that promote the growth of the online marketplace in Canada and the conduct of e-commerce and e-business across all sectors of the economy. The Department also supports policy coordination to further the conduct of online trade and commerce internationally. Industry Canada will continue to work with its partners to improve confidence in the marketplace by protecting individual privacy and curbing harmful Internet content. The continued implementation of the Security and Prosperity Partnership (SPP) of North America agenda, and particularly those elements related to e-commerce, privacy and cyber-security, will contribute to a safer and more secure network economy and online marketplace. In support of the SPP, Industry Canada co-chairs the Electronic Commerce and Information and Communications Technologies Working Group. This group is tasked with maximizing online business and consumer confidence by adopting a framework of common principles for e-commerce, and stimulating and accelerating cross-border technology trade.

International Cooperation

In addition to the spectrum-specific international work outlined above, Industry Canada will also continue to work in multilateral forums — such as the Organisation for Economic Co-operation and Development (OECD), the United Nations (UN), the G8, the North Atlantic Treaty Organisation (NATO) and the Commonwealth — as well as bilaterally and trilaterally on critical issues such as Internet governance, the harmonization of marketplace principles for data and privacy protection in online commerce, the security of networks and services for business and the consumer, and telecommunications policy and frameworks in a rapidly changing environment. Canada is an active participant in the International Telecommunication Union (ITU). Industry Canada is actively working to implement the decisions of the 2006 ITU Plenipotentiary Conference, domestically, and as a member of the ITU Council.

Furthermore, after the successful conclusion of the two-phased UN World Summit on the Information Society (WSIS) in Tunis, Tunisia, in November 2005, a number of follow-up activities require departmental participation. These include reviews and initiatives undertaken at the ITU and the Internet Governance Forum, as well as participation in the Governmental Advisory Committee of the Internet Corporation for Assigned Names and Numbers (ICANN). Industry Canada will also be engaged in broader reviews of other stakeholder initiatives related to the use of ICTs for development and related to the continued deployment of communications infrastructure.

Program Activity: Office of Consumer Affairs — Marketplace

Description: Promotion of consumer interests
Expected Result			Indicator
Strengthened responses to consumer issues			Number of initiatives responding to consumer issues with active engagement of OCA
2007–2008		2008–2009		2009–2010
$5.3M	23 FTEs	$4.9M	23 FTEs	$4.9M	23 FTEs

The Office of Consumer Affairs (OCA) collaborates with other departments and governments, and continues to play a role in the development of policies and non-regulatory instruments for consumer protection. To enhance consumer protection, the OCA will work toward the harmonization of federal/provincial/territorial consumer policies through the Consumer Measures Committee.

The OCA will also continue to work with its governmental partners and other stakeholders on pressing consumer issues such as those with the payday lending industry, identity theft and consumer redress.

As a follow-up to the Consumer Trends Report published in July 2005, the OCA will further its research into issues of consumer vulnerability, sustainable consumption, and consumer issues in the virtual marketplace. With respect to these issues the OCA will examine the following: the consumer challenges faced by newcomers to Canada, options for deploying OCA resources to promote sustainable consumption, and consumer issues emerging from new technologies such as radio frequency identification (RFID).

Additionally, the OCA will continue to seek opportunities to develop cost-effective non-regulatory approaches with other stakeholders to address consumer marketplace issues (e.g., standards, guides, and initiatives to promote consumer awareness and self-protection in the marketplace).

The OCA also disseminates consumer information products and services, and contributes to capacity building for groups working in the consumer’s interest. In this regard the OCA will continue to enhance its consumer information website and the major tools that can be found there, such as a cellphone choices checklist and the Complaint Courier. Additionally, the OCA will continue its client outreach activities to increase consumers’ awareness of the wealth of useful information available to them.

In addition, management of the Contributions Program for Non-Profit Consumer and Voluntary Organizations will continue to be improved by addressing the recommendations made in the 2004–2005 evaluation study. This program provides funds to consumer groups to perform research on consumer issues that affect the marketplace, to develop policy advice that is credible and useful to decision makers, and to reach greater financial self-sufficiency through business planning.

Program Activity: Competition Bureau — Marketplace

Description: Development of and compliance with marketplace frameworks with respect to competition
Expected Result			Indicators
Increased compliance with legislation under the Competition Bureau’s jurisdiction			Volume of commerce affected by Competition Bureau enforcement activity Victim-to-complainant ratio (mass-marketing fraud)
2007–2008		2008–2009		2009–2010
$45.7M	446 FTEs	$44.2M	446 FTEs	$44.2M	446 FTEs

Maintaining and fostering a more competitive marketplace are among the government’s primary mechanisms for building a strong economy based on greater productivity and innovation, and for encouraging and stimulating trade and investment. The government’s commitment to these activities is evidenced in the Speech from the Throne, which stated that the government “will promote a more competitive, more productive Canadian economy.”

Competition and free markets promote the efficient allocation of resources and create strong incentives for research and development and the commercialization of new knowledge. Unnecessary government regulation in place of free markets imposes costs on business and stifles innovation and productivity.

The Competition Act sets out a range of business activities that may undermine the operation of competitive markets. It seeks to deter and remedy the following: cartels, where firms collude to fix prices and output; dominant firms that abuse their market position in order to lessen or prevent competition; anti-competitive mergers that have the effect of preventing or lessening competition substantially in a market; and misleading advertising and other deceptive marketing activity that erode trust and confidence in the marketplace. The role of the Competition Bureau (the Bureau) is to ensure that the Competition Act is enforced.

In addition to enforcement activities, the Bureau’s mandate includes appearing before federal and provincial boards, commissions or other tribunals with respect to competition-related matters. The Bureau’s role is to advocate that reliance on competitive, free markets — and not government regulation — is the best way to efficiently allocate resources. The Bureau played an important role in the deregulation of markets in key sectors of the economy, including telecommunications, energy and transportation. The Bureau typically advocates in two or three matters annually.

Competition Law Enforcement

The Bureau’s enforcement priorities continue to be fighting domestic cartels, and ensuring fair and accurate information in the marketplace by attacking deceptive and fraudulent practices.

Cartels demonstrate the worst type of anti-competitive behaviour. The increased costs to consumers as a result of domestic and international cartels under investigation by the Bureau in 2006–2007 are estimated to be in the range of $465 million. The Bureau will continue to build capacity in the regional offices to detect and combat price-fixing and bid-rigging cartels. The Bureau is planning an evaluation of its results and activities in combating cartels in 2007–2008.

A more recent phenomenon is the increasing number of misleading and fraudulent performance claims being made to consumers (in areas such as weight loss and cancer treatment), involving millions of dollars of bogus products being sold in North America over the Internet. Through partnerships with foreign counterpart agencies and various domestic private and public sector partnerships across Canada, the Bureau is seeking to achieve significant inroads in eliminating bogus claims from appearing in marketing materials and, where possible, removing the products entirely from the Canadian marketplace.

The Bureau is a member of six law enforcement partnerships across Canada devoted to combating mass marketing fraud — whether by mail, telephone or through the Internet, or a combination of these three vehicles. The Bureau has made mass-marketing fraud a key enforcement priority for 2007–2008. Education and awareness also enable consumers to protect themselves from such schemes. The Bureau continues to chair the Fraud Prevention Forum, a group of more than 70 private sector firms, consumer and volunteer groups, government agencies, and law enforcement organizations committed to fighting fraud aimed at consumers and businesses. Reducing fraudulent representations ensures that consumers have confidence in the marketplace.

Competition Advocacy

With limited resources, the Bureau has to focus its competition advocacy efforts on key areas where it can make a difference. The health care sector is critically important to Canadians and therefore will be an area of focus for 2007–2008.

Within this sector, the Bureau’s focus is on the pharmaceutical industry and self-regulated professions. The pharmaceutical industry is significant because it represents a large portion of Canada’s health care spending and has grown year over year in both absolute and relative dollars. The Bureau has developed a comprehensive work plan for advocacy in this area.

The Bureau has launched a study of the generic pharmaceuticals sector to enhance its understanding of how this market works. The issue of high generic pharmaceutical retail prices is a major area of concern, and reasons for the high prices are unclear. The Bureau’s study will examine the potential causes for high prices, and how to make related markets work better.

In addition, the Bureau is looking at restrictions on pharmacists, optometrists and opticians. The aim of the Bureau’s study of self-regulating professions in the health care sector is to determine to what extent, if at all, these professions use anti-competitive restrictions to limit access to their professions or to control the competitive conduct of their members. With the results of the study, the Bureau will publish a draft paper for public consultation followed by a final report that will inform the public and policy-makers of its findings and, if applicable, the costs to consumers and the economy in terms of reduced competition.

Program Activity: Canadian Intellectual Property Office — Marketplace

Description: Granting of intellectual property rights and the dissemination of intellectual property information in order to accelerate Canada’s economic development
Expected Results			Indicators
Deliver quality and timely intellectual property products and services			Turnaround times for: patents trademarks copyrights industrial design
Increase awareness and use of intellectual property			Percentage of increased awareness and use of intellectual property
2007–2008		2008–2009		2009–2010
$1.0M	1,037 FTEs	$10.0M	1,047 FTEs	$8.3M	1,036 FTEs

The Canadian Intellectual Property Office (CIPO) is a marketplace service organization under the responsibility of the Operations Sector. CIPO is a Special Operating Agency using a revolving fund and is therefore listed as a separate program activity (for financial information, see Table 7).

In partnership with the Policy Sector, CIPO will undertake further modernization of the intellectual property regime to encourage creativity and innovation, and to promote affordable access to new knowledge for Canadians.

Strategic Outcome: An Innovative Economy

Each of the following program activities contributes to the strategic outcome through programs and initiatives, policy development and service delivery. Both financial and non-financial information are provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Science and Technology (S&T) and Innovation

Description: Development of economic and scientific policy
Expected Result			Indicator
Development and coordination of policy frameworks in support of an innovative economy			Policy proposals that are brought forward reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the Sector
2007–2008		2008–2009		2009–2010
$52.6M	114 FTEs	$54.9M	115 FTEs	$54.8M	116 FTEs

Knowledge that is derived from R&D is a key driver of economic growth. The Policy Sector supports the creation of knowledge through R&D in a number of different ways. The following paragraphs will detail some of the key ways in which the Sector will promote S&T and innovation in 2007–2008.

The federal government has invested substantially in research performed by federal laboratories, businesses and universities. In fact, since 1997 the Government of Canada has more than doubled its annual investments in university R&D. Industry Canada will continue to work with its partners in 2007–2008 to improve the effectiveness of funding for higher education research, and on measuring and maximizing the impact of these investments. This work will be undertaken in collaboration with several partners, including the three federal granting councils (the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council, and the Canadian Institutes of Health Research), the Canada Foundation for Innovation, Genome Canada and others.

The Policy Sector will also undertake research and analysis on issues of interest to Canadian small businesses. Some of the key issues the Sector will focus on this fiscal year include the characteristics of high-growth and innovative small businesses, the barriers faced by small business in the development and adoption of innovation, and the commercialization of research. Special attention will be paid to the role of venture capital in supporting the growth of innovative firms, and in increasing Canada’s ability to commercialize research through investment in SMEs in high-growth sectors of the economy.

As announced in Budget 2006 and in Advantage Canada — the government’s economic plan — the Minister of Industry is developing an S&T Strategy, in collaboration with the Minister of Finance. The Strategy will encompass a broad range of government support for research, including knowledge infrastructure. The government has also undertaken a review of the accountability and value for money of the granting councils’ activities. In 2007–2008, Industry Canada will work with the Natural Sciences and Engineering Research Council and the Social Sciences and Humanities Research Council to implement the recommendations that emerge from this review.

One of the responsibilities of the Policy Sector is to provide secretariat support, including research and analysis services, to two external advisory councils: the Advisory Council on Science and Technology, which advises the government on how to improve Canada’s innovation performance, and the Council of Science and Technology Advisors, which advises the government on the management of the federal science and technology enterprise. The Minister of Industry is reviewing the science advisory councils to ensure continued access to high-level, expert, external advice for government on science and innovation issues.

Another way in which the Sector contributes to an innovative economy is through its active engagement in the Federal Laboratory Infrastructure Project. This project was established in 2006 to identify options for long-term infrastructure investment needs and to develop a comprehensive federal policy framework for the governance and management of laboratory and S&T infrastructure. This project is expected to be completed in 2008.

The Sector will continue to work with provincial and territorial partners in a dialogue on S&T and innovation-related issues, and to collaborate in areas of mutually agreed interest. The Federal/Provincial/Territorial Deputy Ministers’ Working Group on Innovation met in early December 2006 and agreed to work on a collaborative agenda. Industry Canada will engage provincial and territorial ministries responsible for innovation in 2007 to continue to foster this collaborative relationship.

The Council of Canadian Academies (the Council), is a not-for-profit organization managed by a board of governors drawn from its three founding member academies — the Royal Society of Canada, the Canadian Academy of Engineering and the Canadian Academy of Health Sciences — together with public governors named by the Council and the Minister of Industry. The Minister of Industry refers issues of particular importance to Canadians to the Council on behalf of the Government of Canada. The Council provides the government with assessments of the state of scientific knowledge on these issues, and these assessments inform the policy decisions of government and support a more dynamic and innovative economy. The Council conducted its first assessment on Canada’s S&T strengths and published the report The State of Science & Technology in Canada in September 2006. The Council is currently working on several assessments related to gas hydrates research and groundwater.

Program Activity: Industry Sector — S&T and Innovation

Description: Development of initiatives that stimulate research and development in order to accelerate commercialization in emerging technologies and priority sectors
Expected Result			Indicators
Innovative Canadian industries			Innovation gap (R&D expenditures as a percentage of Canadian industrial expenditures — trend and international comparisons) Overall assessment of climate, programs, decisions and other major factors supporting innovation in Canadian industries, such as: intellectual property protection highly qualified personnel supply (scientists and engineers) tax incentives for R&D regulatory environment impact of other government department programs (subsidies, demonstrations) industry structure (concentration, profitability and ownership)
2007–2008		2008–2009		2009–2010
$11.8M	123 FTEs	$9.8M	120 FTEs	$9.8M	120 FTEs

Canada’s prosperity will depend increasingly on its ability to put knowledge to work. The Industry Sector of Industry Canada will apply its growing knowledge of the Canadian business landscape, including its knowledge of sector-specific innovation challenges and opportunities, to enhance government decision making and industry development activities. Several initiatives, described here, will be undertaken over the course of the year to create conditions that lead to increased R&D, commercialization and innovation, thereby enhancing Canada’s knowledge advantage for the benefit of Canadian industries.

The Industry Sector has an internationally recognized expertise in the development of Technology Roadmaps (TRMs). Developed in partnership with private industry, TRMs are a strategic tool that helps firms identify the technologies needed to capture future market opportunities, identify strategies to develop or access these technologies, and carry out research and apply new technology more cost-effectively through collaborative R&D arrangements. TRMs help the federal government identify national capabilities and technology gaps, and can be used by major research funders to focus on priority research areas. By helping firms better understand their markets and make informed technology decisions, TRMs can lead to increased and better targeted business spending on R&D, and faster development and diffusion of new technologies that address industry needs. To date, Industry Canada has developed or has been involved in the development of 26 TRMs, and seven more are under development for low-cost aerospace composites manufacturing, processing and repair; diagnostics, prognostics and health management; aerospace protective coatings; computational fluid dynamics; textiles; wireless; and contact centres. The Industry Sector will also work with the private sector and other government departments on a technology inventory for clean coal and carbon dioxide capture and storage technologies.

The Industry Sector is co-lead, with Foreign Affairs and International Trade Canada (DFAIT), of the Manufactured Goods and Sectoral and Regional Competitiveness Working Group within the Security and Prosperity Partnership (SPP) of North America. Under this Working Group, the National Research Council (NRC) is leading an initiative that will help identify research that can be undertaken in the area of nanotechnology to improve the performance and reduce the cost of existing products and industrial processes. The SPP will facilitate collaboration between the United States National Nanotechnology Initiative and the NRC, including exploring Canada–U.S. projects in measurement science for particle size. Additionally, the Industry Sector continues to lead the Public Service of Canada Nanotechnology Network. This network is three years old, with membership drawn from across the federal government. It hosts seminars, develops background documents, develops international position papers for Canada and shares information about and raises the profile of these emerging technologies.

The Industry Sector’s expert knowledge and its broad understanding of Canada’s commercialization environment will play a key role in helping Canadians turn knowledge into commercial success. The Industry Sector will work with the Policy Sector to ensure that the federal government’s efforts to improve commercialization outcomes reflect the needs and interests of Canadian industries.

Industry Canada will continue to work with Genome Canada to strengthen the environment for genomics and proteomics research in Canada. To date, the federal government has committed $600 million to Genome Canada for large-scale genomics research. It is expected that this funding will leverage an additional $640 million from provinces, firms and other institutions.

Biotechnology is an enabling technology applied across diverse industry sectors. To enhance the commercialization efforts of biotechnology activities, the Industry Sector will continue to encourage the global competitiveness of health industries that have led in the application of biotechnology. The Industry Sector will also continue to promote the uptake of biotechnology within established industry sectors, including the agriculture, energy, forestry and chemical sectors, by promoting innovation and the commercialization of sustainable fuels, chemicals and materials from renewable bio-resources.

Sustainable energy from renewable and alternative pathways such as hydrogen fuel cells will improve the environment and the health of Canadians, and is crucial to Canada’s future economic development. Growth in the renewable and alternative energy sectors is providing opportunities for industrial development through both technology commercialization and manufacturing. The Industry Sector will work closely with renewable and alternative energy stakeholders to examine advances in Canadian technology capabilities, identify commercialization and industrial development opportunities presented by the Sector’s rapid growth, and explore domestic and international partnerships for business development.

The 2006–2007 fiscal year marks the completion of Sustainable Development Strategy (SDS) III, and the development of SDS IV. The Industry Sector will continue to contribute to the Government of Canada’s sustainable development commitments by examining opportunities to accelerate the greening of the Department’s operations in the areas of waste, facilities and fleet management in the context of the development of SDS IV.

Advances in government procurement are providing important opportunities to achieve key Government of Canada objectives related to sustainable development, as well as technology commercialization and diffusion. The Industry Sector will also continue to be engaged in federal procurement policy decisions in support of strategic industrial interest. One example of the Sector’s engagement in procurement policy is its ongoing work with stakeholders with the Industrial and Regional Benefits Policy to ensure that appropriate long-term, high-quality economic benefits flow to Canadian companies.

Program Activity: SITT — S&T and Innovation

Description: Support advanced and applied research within the Canadian ICT Sector for the development of innovative technologies
Expected Result			Indicator
Improved research capacity and commercialization of ICTs			Access to advanced research networks across Canada and the application of ICTs to industrial sectors
2007–2008		2008–2009		2009–2010
$27.0M	4 FTEs	$27.0M	4 FTEs	$27.0M	4 FTEs

The government’s economic plan, Advantage Canada, aims to make Canada a world leader in R&D and innovation. To help achieve this goal, Industry Canada intends to support the operation and development of CA*net 5 by obtaining renewed funding in 2007–2008 for the not-for-profit corporation, CANARIE Inc. CA*net 5 is a high-performance network that links research networks and institutions throughout Canada, enabling the country’s research community to pursue advanced research across Canada and around the world.

Industry Canada also provides support to Precarn Inc. Precarn Inc. is a national, not-for-profit, industry-led consortium that supports pre-competitive R&D projects in the fields of intelligent systems and advanced robotics. To maintain its research support and to promote further progress in Canada’s intelligent systems and advanced robotic industries, Precarn received a $20-million conditional grant for Phase 4 of its program, which will run until 2010.

Program Activity: Communications Research Centre Canada — S&T and Innovation

Description: Conducts research on advanced telecommunications and information technologies to ensure an independent source of advice for public policy and to support the development of new products and services for the ICT Sector
Expected Results			Indicators
Telecommunications policies, regulations and standards are developed using Communications Research Centre Canada (CRC) technical input			Number of CRC technical inputs (trends and assessments) to groups developing policies and regulations related to the telecommunications sector, including the Spectrum Information Technologies and Telecommunications Sector of Industry Canada, the International Telecommunication Union (ITU), the Institutes of Electrical and Electronics Engineers (IEEE), and the Canadian Radio-television and Telecommunications Commission (CRTC)
Canadian companies in the telecommunications sector use CRC-developed technology to improve their product lines and their competitiveness			Number of intellectual property licences issued to Canadian companies Sales revenue of Canadian companies in the telecommunications sector that were formed as a result of CRC involvement or are spinoffs from these companies
2007–2008		2008–2009		2009–2010
$41.5M	411 FTEs	$38.7M	411 FTEs	$38.7M	411 FTEs

Communications Research Centre Canada (CRC) performs R&D on communications technologies of significant importance to Canada: radio, satellite, broadcasting and fibre optics. As a result, CRC is well positioned to provide strategic advice as well as direct assistance for the development of policy, regulations, standards and the economy in the telecommunications sector, as new technical developments and challenges arise.

CRC collaborates with the SITT Sector by providing independent technical advice related to Industry Canada’s mandate for spectrum management, communications policy and regulatory decision making. CRC also works with organizations such as the ITU and the IEEE in the development of standards to facilitate the efficient delivery of telecommunications and broadcasting applications. This allows CRC to address challenges such as network security, emergency communications and spectrum research, and to develop innovative and affordable solutions for bringing broadband services to all regions of Canada, especially underserved rural and remote areas.

One beneficial outcome of CRC’s research program is the development of new technologies and associated intellectual property that can be of potential interest to Canadian industry. Through partnership activities or licensing, these technologies are often transferred to companies, particularly SMEs, for commercialization and sales to a worldwide market.

CRC also has an ongoing research program in photonics technologies. To accommodate expansion of research activities, construction of a new photonics lab was completed in 2006–2007 and, when combined with existing facilities, will create an integrated CRC Laboratory for Photonic Components and Systems Research. This laboratory will enable CRC to conduct leading-edge research in photonics components and optical networking for Canadian interests. A second laboratory for antenna systems testing is also being completed to support higher-frequency wireless research.

As the federal government’s primary telecommunications research laboratory, CRC also assists or partners with several other departments and agencies on communications issues. Significant R&D and program delivery is undertaken for National Defence and the Canadian Space Agency on a cost-recovery basis. A growing number of other departments are being helped in their deployment of broadband technologies and applications.

Program Activity: Technology Partnerships Canada — S&T and Innovation

Description: Encouragement of commercialization through strategic investments in innovative research and development
Expected Result			Indicator
Commercialization encouraged through strategic partnering in innovative research and development			Total number of projects (which represents the number of strategic partnerships)
2007–2008		2008–2009		2009–2010
$397.3M	118 FTEs	$266.9M	114 FTEs	$220.0M	116 FTEs

Technology Partnerships Canada (TPC) provided funding support for R&D and demonstration projects with a goal of producing economic, social and environmental benefits for Canadians. TPC’s terms and conditions expired on December 31, 2006; therefore, no new projects will be contracted. Existing contribution agreements with companies will continue according to their specific terms and conditions.

Strategic Outcome: Competitive Industry and Sustainable Communities

Each of the following program activities contributes to the strategic outcome through programs and initiatives, policy development and service delivery. Both financial and non-financial information are provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Economic Development

Description: Development of industry and international business policy
Expected Result			Indicator
Development and coordination of policy frameworks that support competitive industry and sustainable communities			Ongoing policy and program oversight and development is advanced with a view to enhancing industry competitiveness
2007–2008		2008–2009		2009–2010
$11.2M	89 FTEs	$10.8M	90 FTEs	$10.8M	90 FTEs

Competitive industry and sustainable communities are vital to a healthy economy and Canada’s long-term success. The Policy Sector will work to reduce barriers to mobility of investment capital, goods, services and people, as well as supporting the advancement of sustainable development.

The Policy Sector is responsible for the administration of the Investment Canada Act (ICA). This responsibility includes reviewing and assessing significant investment proposals by non-Canadians to determine if they demonstrate a net benefit to Canada. This is followed up by monitoring the implementation of investors’ plans and undertakings. The ICA and regulations prescribe the legal responsibilities of non-Canadians investing in Canada, as well as the information that they are required to submit. Canada’s investment regime encourages foreign investment that is of benefit to Canadians. Foreign investors bring with them knowledge, capabilities and technology that can increase the productivity, efficiency and competitiveness of Canadian firms.

The presence of barriers to the movement of goods, services, persons and investments within Canada can compromise the competitiveness of key Canadian industries. To address this, the federal, provincial and territorial governments have agreed on an ambitious action plan under the Agreement on Internal Trade (AIT) aimed at eliminating these types of barriers. As the federal lead for the AIT, Industry Canada will continue to encourage and collaborate with other federal departments, provinces and territories to develop a work plan that will seek to achieve the following:

• remove all restrictions on labour mobility by April 1, 2009;
• finalize negotiations on an energy chapter of the AIT that will lay the policy framework for a national electrical grid;
• expand the chapter on agriculture and food goods;
• modify the dispute-resolution process to ensure that it is more effective; and
• develop measures toward harmonization of regulations.
  

Addressing the financing needs of SMEs contributes to their competitiveness and will therefore remain an important priority of Industry Canada in 2007–2008. The Sector will continue to work closely with the Business Development Bank of Canada concerning its mandate to fill financing gaps in the marketplace, focusing particular attention on venture capital. Further to findings from the comprehensive review of the Canada Small Business Financing (CSBF) Program in 2004–2005, Industry Canada will advance regulatory amendments that reduce the administrative burden on program lenders by bringing CSBF Program policies in line with conventional lending practices. The Sector will continue research to ensure this program’s effectiveness.

Industry Canada will continue to deliver an ongoing program of research and analysis on SME financing issues through the SME Financing Data Initiative — a partnership among Industry Canada, Statistics Canada and the Department of Finance. Results will continue to be reported and used to help advance understanding of the adequacy of financial products and services available to small businesses in the marketplace and the need, if any, for government intervention.

The Policy Sector is committed to advancing sustainable development to support the development of more productive, innovative and globally competitive businesses, resulting in a higher quality of life for Canadians. Industry Canada’s fourth Sustainable Development Strategy 2006–2009 (SDS IV) seeks to broaden and deepen the practical implementation of the business case for sustainable development in Canadian industry. SDS IV is characterized by the theme “selling the sustainability value proposition,” which supports the Department’s mandate to strengthen the national economy and promote sustainable development. The new strategy is structured around three strategic outcomes that represent what the Department aims to achieve over the next three years:

• sustainability-driven technologies and commercialization;
• sustainability tools, practices, research and awareness; and
• sustainability practices and operations within Industry Canada.
  

The three strategic outcomes will be advanced by delivering 26 action plan items. SDS IV presents Industry Canada’s renewed path forward in terms of advancing sustainable development with its partners and stakeholders (for more information, see Table 15 in Section 3).

International trade and improved access to foreign markets are key drivers of economic growth and competitiveness in Canada. As an open economy, Canada relies more on international trade than any other G8 member to stimulate growth and innovation. Industry Canada works closely with Foreign Affairs and International Trade Canada in the government’s efforts, as outlined in the Global Commerce Strategy, to reduce market access barriers to Canadian products and services, improve rules that govern international trade and facilitate investment. The Policy Sector will continue to coordinate and integrate departmental positions on a wide range of trade policy issues that affect Industry Canada. In carrying out this role, the Policy Sector will:

• conduct analysis on trade and other issues related to the trade–industry relationship;
• identify the need for Industry Canada’s involvement in trade initiatives;
• provide advice to Industry Canada officials on the rules and articles of the World Trade Organization as they apply to departmental operations; and
• advance Industry Canada’s interests in multilateral, regional or bilateral trade negotiations.
  

The Security and Prosperity Partnership (SPP) of North America, launched in March 2005, has provided a framework to improve North American competitiveness and ensure that citizens benefit from high standards of health, safety and joint stewardship of the environment. The Minister of Industry has been designated by the Prime Minister as Canada’s lead for the prosperity agenda of SPP. In this capacity the Minister works closely with his U.S. and Mexican counterparts, as well as with Canada’s Minister of Public Safety and Minister of Foreign Affairs, and their counterparts, on SPP initiatives.

Program Activity: Operations Sector — Economic Development

Description: Delivery of programs, information and intelligence on investment and technology opportunities to the business community. Provision of a multi-channel, common entry point for business on behalf of the Government of Canada, and encouragement of client-centred service delivery and design
Expected Result			Indicators
Improved access to capital and information for SMEs and communities targeted by Operations Sector programs			Number of loans — year over year — registered through the Canada Small Business Financing Program Number of SMEs — year over year — created or strengthened through FedNor Percentage of Ontario population that has benefited from investments made under the Canada-Ontario Infrastructure Program Level of funding that official-language minority communities have received from Industry Canada Increase in number of SMEs served through Canada Business service centres (service usage)
2007–2008		2008–2009		2009–2010
$282.7M	323 FTEs	$192.8M	317 FTEs	$190.3M	316 FTEs

Regional Development

FedNor, as a regional development organization in Ontario, will continue to work with partners to help create an environment in which communities can thrive, businesses can grow and people can prosper. FedNor achieves this through the delivery of several strategic programs that promote the sustainable development of communities, encourage innovation and strengthen the competitiveness of SMEs. These programs include the Northern Ontario Development Program, the Community Futures Program and the Eastern Ontario Development Program.

Northern Ontario Development Program: The Northern Ontario Development Program (NODP) invests in projects that promote economic growth in Northern Ontario by providing support in the following areas:

• community economic development;
• innovation through R&D and enhanced technology;
• telecommunications infrastructure and ICT applications;
• trade and tourism;
• attraction, retention and development of human capital; and
• business financing.
  

Some of the priority areas for the NODP in 2007–2008 include supporting SME growth and responding to the needs of communities and key sectors, in particular the mining, forestry and tourism sectors.

Community Futures Program: FedNor also administers the Community Futures Program in Ontario, which supports a network of 61 Community Futures Development Corporations (CFDCs) throughout rural Ontario. Through the CFDCs, FedNor will continue to provide repayable financing for local small businesses and for strategic community planning and socio-economic development. This includes providing support for community-based projects as well as business information and advisory services.

Eastern Ontario Development Program: As a federal presence in Northern and rural Ontario, FedNor’s organizational capacity and established networks also allow it to deliver other national initiatives and targeted regional programming that promote socio-economic development in Ontario. For example, FedNor delivers the Eastern Ontario Development Program (EODP), which promotes rural socio-economic development in rural Eastern Ontario. Under the EODP, FedNor will provide investment through the 15 CFDCs for community economic development initiatives, including business development, skills development, access to capital, retention and attraction of youth and technological enhancements.

Infrastructure Programs

Industry Canada delivers, on behalf of Infrastructure Canada, the Ontario components of the following three national infrastructure programs: the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF), the Canada-Ontario Infrastructure Program, and projects in Ontario under the Canada Strategic Infrastructure Fund. In 2007–2008, Industry Canada’s focus with respect to COMRIF is to recommend new projects to the responsible minister for approval and, for all of the Infrastructure Canada programs, to provide oversight to existing projects. In addition, Industry Canada will continue to review and approve funding-request claims and to fulfill departmental responsibilities under the Environmental Assessment Act.

Assisting Canadian Business

Network for Women Entrepreneurs: Officially announced on May 16, 2005, the Network for Women Entrepreneurs (NWE) will continue to be delivered through the Canada-Ontario Business Service Centre under the Canada Business program managed by Industry Canada. The NWE builds on existing federal, provincial and municipal business networks to avoid duplication and overlap. The NWE provides women entrepreneurs in Ontario with information on programs and services to start and grow their businesses, guidance in locating key community support services, networking opportunities, and other services tailored to the needs of businesswomen. In 2007–2008, the NWE will undertake extensive outreach activities to build awareness of existing resources and support. To enhance women’s entrepreneurship, the NWE will also deliver skills development workshops throughout the province.

Canada Small Business Financing Program: In 2007–2008 Industry Canada will continue to deliver the Canada Small Business Financing (CSBF) Program, an important initiative designed to benefit small businesses. The CSBF Program increases the availability of loans and leases for establishing, expanding, modernizing and improving small businesses by encouraging financial institutions and leasing companies to make financing available to small businesses. The CSBF Program helps businesses establish, grow and create jobs, which results in a more dynamic Canadian economy and benefits for Canadians.

Over the past four years, Industry Canada has also been leading the development of a government-wide service-to-business vision through extensive consultation with stakeholders and various interdepartmental and inter-jurisdictional committees. The service-to-business vision looks to enhance business competitiveness by improving the effectiveness of service delivery across government and by building on existing partnerships and government-wide platforms to deliver seamless, multi-channel, multi-jurisdictional information and services, at low cost, to businesses.

Industry Canada has delivered on the service-to-business vision through two specific initiatives: Canada Business, a multi-channel government information service for businesses and start-up entrepreneurs in Canada, and BizPaL, an online service that simplifies the business permit and licence process for entrepreneurs, governments and third-party business service providers. Both of these initiatives will implement a number of activities in 2007–2008 to further improve service to business.

Canada Business: This fiscal year, Canada Business will undertake a comprehensive review of its content and information products to ensure that it covers the most important topics, and offers timely information in the most suitable format to small businesses and entrepreneurs. Canada Business will also continue to enhance its key business applications, including the Multi-Channel Service Delivery Assistant (client tracking system) and the Content Management System (web publishing system) in order to ensure the delivery of high-quality information services across the Canada Business network. In addition, Canada Business will continue to regularly enhance and update its website through user-centred design and evaluation practices, and sustain the increased level of awareness regarding the range of services for business offered by the Government of Canada.

The evolution of content syndication will also remain a priority for Canada Business in 2007–2008. Content syndication is a new and highly effective way of extending the reach of Canada Business information and services by rendering relevant information directly on partners’ websites, thereby significantly improving access to relevant information for small businesses and entrepreneurs. In 2006–2007, Canada Business introduced several content syndication pilot projects with partners across the country, and in 2007–2008 it plans to increase the number of partners and offer a wider selection of syndicated content and services based on client needs.

BizPaL: BizPaL will continue to support the Government of Canada in realizing its commitment to address regulatory burden and streamline government service for business, as articulated in Advantage Canada, the government’s economic plan.

To help lower the cost of doing business for a greater number of clients, Budget 2006 provided $6 million over two years to accelerate expansion of the BizPaL initiative. In 2007–2008 Industry Canada will continue to work with provincial, territorial and local governments to offer the BizPaL service in more locations across Canada. The service will expand to cover more types of Canadian business sectors such as rural and agricultural. It will also include other business regulation information beyond permits and licences that Canadian businesses need to know to start or grow their business. In addition, ongoing improvements to the technology infrastructure will improve the functionality to better meet client needs. To ensure the long-term sustainability of this innovative initiative, BizPaL participating organizations will share the costs associated with the ongoing, long-term operations of BizPaL as of April 1, 2007.

The collaboration within and among governments that is at the core of the BizPaL service delivery model will ultimately lead to more streamlined and efficient multi-level government services. Government front-line staff will also be able to use the BizPaL tool to more efficiently serve clients through other service delivery channels such as the telephone and in-person services.

Student Connections: Another Industry Canada initiative that provides service to businesses is Student Connections. This initiative encourages SMEs to adopt e-business practices in order to improve their productivity and competitiveness. Student Connections delivers affordable Internet and e-business training to Canadian SMEs through 14 centres across the country. In 2007–2008 Student Connections will continue to build new partnerships with business and industry associations and the private sector in order to effectively serve the ICT interests of SMEs.

Program Activity: Industry Sector — Economic Development

Description: Development of initiatives that support global competitiveness and sustainable economic growth in priority sectors and emerging technologies
Expected Result			Indicators
Competitive and sustainable Canadian industries			Sales, trade and employment statistics Overall assessment of climate, programs, decisions and other major factors supporting competitiveness and sustainability in Canadian industries, such as: labour market (not just highly qualified personnel) corporate taxation regulatory compliance burden impact of other government department programs industry structure trade conditions
2007–2008		2008–2009		2009–2010
$68.6M	234 FTEs	$38.0M	229 FTEs	$38.0M	229 FTEs

In support of continuous economic growth and a high quality of life for Canadians into the future, the Industry Sector is leading several initiatives that are intended to help Canadian firms move up the value chain by becoming more competitive and integrated within global and domestic value chains. The following describes several key initiatives that will be undertaken by the Industry Sector to support the enhancement of the global reach and agility of Canadian industries.

Global Value Chains: Global value chains (GVCs) are becoming a more established way of doing business. Firms are increasingly outsourcing some of their activities to third parties, located in Canada or abroad, allowing them to focus on core competencies and exploit differences in production costs and resource endowments. To ensure that Canada is a key link in GVCs, the Industry Sector will deepen its understanding of GVCs and their policy implications for Canada. This will involve building on research, such as case studies, to highlight the role of Canadian firms in the GVC of specific industries. Work will continue with Statistics Canada to develop relevant indicators, and further collaboration with Canadian and international experts in policy-based research is expected to take place this year.

One significant example of the Industry Sector’s efforts to ensure that government policy reflects the evolving realities of GVCs is the Industrial and Regional Benefits Policy on defence procurement. The Industry Sector is working with National Defence and Public Works and Government Services Canada to ensure that Canadian companies participate in or move up the GVCs of large foreign multinationals that receive procurement contracts from the Government of Canada.

Trade and Investment: The Industry Sector is a partner in the Government of Canada’s efforts, led by Foreign Affairs and International Trade Canada (DFAIT), to stimulate trade and investment flows that can benefit the Canadian economy. Recognizing that trade liberalization and globalization have a significant impact on the Canadian economy, the Industry Sector works in partnership with industry and other government departments to regularly assess trade policy initiatives and determine the potential challenges and opportunities they represent for Canadian firms. Additionally, the Industry Sector will provide support to selected major trade shows and trade missions to showcase and broaden understanding of Canadian capabilities.

As an example, the Industry Sector will lead the Canadian delegation at BIO 2007, the world’s largest biotechnology conference. Canada’s presence at BIO is expected to raise international awareness of Canadian companies and capabilities, and brand Canada as a key global player in biotechnology. In addition, in June 2007, the Industry Sector will support the aerospace industry’s participation in the biennial Paris Air Show – Le Bourget, the world’s largest and most prestigious air show. Canada’s participation in this show will help solidify Canada’s position in the global aerospace and defence industry.

The Pacific Gateway Strategy, announced by the Government of Canada in October 2005, builds on Canada’s geographic advantage in the Asia–Pacific region to stimulate trade and investment for the benefit of Canadians. The Strategy adopts an integrated approach to address issues relating to transportation infrastructure, logistics, security, skills, regulation and governance. As the Industry Canada lead on the Pacific Gateway Strategy, the Industry Sector will contribute to the implementation of the Strategy and to the development, by Transport Canada and Western Economic Diversification Canada, of a more comprehensive gateways and corridors policy.

Security and Prosperity: The Security and Prosperity Partnership (SPP) of North America was launched in 2005 to increase security and to enhance prosperity among Canada, Mexico and the United States through greater cooperation. Under the prosperity pillar of the SPP, the Industry Sector and DFAIT co-lead the Manufactured Goods and Sectoral and Regional Competitiveness Working Group. The working group will continue to focus on developing initiatives to reduce the cost of doing business in North America. Signature initiatives of this working group include the development of a regulatory cooperation framework, a trilateral steel strategy, and a strategy to combat counterfeiting and piracy.

Smart Regulation: The Smart Regulation Implementation Strategy aims to strengthen Canada’s regulatory performance and establish a culture of continuous improvement in regulatory management across all levels of government. The Industry Sector contributes to research and analysis in this area to increase the government’s understanding of the sectoral impacts of regulation, in part through co-chairing the interdepartmental Theme Table on Innovation, Productivity and Business Environment. A major study on identifying priority sectors with key regulatory differences between Canada and the United States that have an impact on trade and investment will be concluded, and opportunities to develop new analytical frameworks and tools to measure the business impacts of regulation will be identified. The Industry Sector will also analyze and advocate for regulatory effectiveness, efficiencies and technological foresight on health industries that enhance the ability of firms to commercialize innovative products without undue delays or costs.

Tourism Industry: The 2010 Olympic and Paralympic Winter Games present an opportunity for Canadian companies to improve their ability to compete in the global marketplace. The Industry Sector will work to inform Canadians of business opportunities associated with the 2010 Winter Games and other major events, educate companies on how to respond effectively to procurement contract notices and requests for proposals, as well as help identify potential partners and networks. In addition, the 2010 Winter Games offer an excellent opportunity for the tourism industry in Canada. In cooperation with the Canadian Tourism Commission, provincial and territorial tourism departments and agencies, DFAIT and Canadian Heritage, efforts will be undertaken to brand Canada as a destination of choice.

The National Tourism Strategy (NTS) was developed by the federal, provincial and territorial governments in consultation with industry to foster collaboration between governments and industry in addressing tourism issues of national or regional importance. It is a framework that enables governments to collaboratively focus and maximize the impact of their existing resources on issues of common interest. As a result of the extensive industry analysis that went into the development of the NTS, six priority areas were identified where governments can collaborate more closely to improve tourism industry competitiveness and accelerate its growth. The six priorities are border crossings, transportation infrastructure, product development, human resource development, tourism information and statistics, and tourism marketing. As co-chair of the federal-provincial-territorial (FPT) tourism working group, an action plan will be developed to address key issues facing the tourism industry. Initially, focus will be on developing an FPT approach to mitigate the effects of the implementation of the Western Hemisphere Travel Initiative on tourism. Another priority for the Industry Sector will be to use the 2010 Olympics to strengthen Canada’s brand by developing a cooperative FPT tourism marketing/branding approach.

Competitiveness in Manufacturing and Key Canadian Industries: The Industry Sector provides leadership on a broad range of issues affecting manufacturing competitiveness. It will continue to work with stakeholders to address policy issues raised in such documents as the Canadian Manufacturers & Exporters’ (CMEs’) Manufacturing 20/20: A Call to Action. In this context, the Industry Sector will continue to lead a government-wide Manufacturing 20/20 Network that brings together roughly 20 organizations from across the federal government to strengthen the Government of Canada’s capacity to review and improve public policy on manufacturing issues. Finally, the Industry Sector will play a leading role in reviewing the recommendations of and developing an official government response to the February 2007 Report of the House of Commons Standing Committee on Industry, Science and Technology: Manufacturing: Moving Forward — Rising to the Challenge.

Other efforts to help improve the competitiveness of the Canadian economy will include a focus on the aerospace, automotive, and oil and gas industries, and on emerging energy technologies. This will involve working with a broad range of partners to advance the interests of these important sectors, analyze issues and challenges, develop solutions, and identify capabilities and opportunities both domestically and internationally to increase awareness of Canadian technologies and expertise abroad.

Environmental Initiatives: In 2007–2008 the Industry Sector will continue to work in partnership with industry and other government departments on various environmental initiatives to implement the government’s environmental agenda. While Environment Canada has the lead role for the implementation of the Clean Air Act, Industry Sector participation is key to ensuring that competitiveness considerations are factored into the debate. The Industry Sector is also contributing to other important environmental policy initiatives such as the Chemicals Management Plan and the review of the Canadian Environmental Protection Act. In support of a sustainable and globally competitive industry, the Industry Sector will also collaborate with industry stakeholders from the energy equipment and services sectors to identify and capitalize on evolving industrial development opportunities created by policy frameworks such as the SPP agenda. Work will also be undertaken with Transport Canada and other federal government departments to develop fuel efficiency regulations and initiatives pursuant to a Clean Transportation Strategy.

Program Activity: SITT Sector — Economic Development

Description: Promotes economic development by ensuring that Canadians, communities and businesses have access to reliable, modern ICT infrastructure and the skills to fully participate in the digital economy. Enhances entrepreneurship and lifelong learning by fostering the creation of advanced, enabling applications and technologies. Supports the development of a competitive ICT industry in Canada
Expected Results			Indicators
Canadians and communities overcoming barriers to, and gaining access to, modern ICT infrastructure			Number of Canadians and communities accessing and using ICTs
Canadian ICT companies positioned for growth in the global marketplace			Level of awareness of opportunities, gaps and barriers affecting ICT Sector growth
2007–2008		2008–2009		2009–2010
$44.7M	139 FTEs	$28.4M	139 FTEs	$28.4M	139 FTEs

Information and communications technologies (ICTs) are powerful enablers across the economy. They drive economic development, productivity and innovations, and are key to the social and economic inclusion of Canadians. Through programs such as the Community Access Program and Computers for Schools (CFS), Industry Canada supplements the access that Canadians have to ICTs and modern ICT infrastructure, and thus, the opportunity to effectively participate in the economy.

The government is presently reviewing the future of the Community Access Program, and a decision about future spending will be forthcoming.

Industry Canada will also continue to undertake economic analyses and monitor industry trends and emerging sectors that are critical to priority setting and decision making for the ICT Sector. In addition to influencing government decision making and policy development, the Department will provide business development services to exploit commercial opportunities for the ICT Sector, and will continue to support the growth of the assistive technology industry in Canada.

 

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