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Section 2:
Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome: A Fair, Efficient and Competitive Marketplace

Each of the following program activities contributes to the strategic outcome through policy development, programs and initiatives, and service delivery. Both financial and non-financial information is provided for each program activity. The expected results and indicators are a demonstration of 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 Section 4.3.

Plans by Program Activity

Program Activity: Strategic Policy Sector — Marketplace

Description: Carries out research and analysis on a range of marketplace framework policies, laws and regulations; provides strategic information and advice to the Minister and Deputy Minister; and develops policy options, including legislation and regulations. These policies have a direct impact on Canadian businesses, as they set the conditions under which companies operate in the marketplace.
Expected Result Indicator
  • Development and coordination of economic policy frameworks that support a fair, efficient and competitive marketplace
  • Number of policy initiatives, including legislative and regulatory amendments tabled and approved, aimed at supporting a fair, efficient and competitive marketplace in Canada (e.g., corporate, insolvency, intellectual property, investment, international trade and competition policy)
2008–2009 2009–2010 2010–2011
$12.6M 113 FTEs $9.9M 113 FTEs $9.9M 113 FTEs

Competitive markets that drive innovation, productivity and growth, and increase consumer well-being are essential to Canada’s long-term prosperity. Industry Canada contributes to this overarching goal by working with other federal departments on initiatives to create a business climate that attracts and retains investment, innovative industries and talented workers. The department also seeks to reduce barriers to labour and capital mobility. Industry Canada develops policies that are flexible and responsive to changing technologies, marketplace opportunities and an evolving global marketplace. By doing so, Industry Canada helps build a fair, efficient and competitive marketplace.

Industry Canada supported the establishment of the Competition Policy Review Panel, which is reviewing Canada’s competition policies and its framework for foreign investment. In 2008–2009, the department will lead the development of the government’s response to the Panel’s recommendations to enhance the competitiveness of Canada’s markets and Canada’s economic performance.

Taking into consideration the Competition Review Panel’s recommendations, Industry Canada will lead a review of Canada’s foreign investment regime, in particular the Investment Canada Act, to ensure that it contributes to a highly competitive national economy that benefits Canadians. Industry Canada will also work with other departments on a national security test for foreign investment, which could take the form of an amendment to the Act to include a national security component.

As the federal lead for the Agreement on Internal Trade (AIT), Industry Canada will work in collaboration with other federal departments, provinces and territories, toward the completion of the AIT work plan, which was agreed to in August 2007 by provincial premiers, and toward further reduction of the barriers to the movement of goods, services, persons and investments within Canada. This initiative is intended to strengthen Canada’s economic union.

In the October 2007 Speech from the Throne, the government committed to improve the protection of cultural and intellectual property (IP) rights in Canada. In fiscal year 2008–2009, Industry Canada will continue to advance the government’s agenda for IP policy reform, including updating the Copyright Act in conjunction with the Department of Canadian Heritage. The department will also be working with other responsible departments to develop options to strengthen and modernize Canada’s IP enforcement regime, both at the border and domestically, in order to crack down on the trade in counterfeit and pirated goods. On the international front, Industry Canada will work with other government departments to prepare Canada’s participation in the Anti-Counterfeiting Trade Agreement (ACTA) negotiations with the objective of strengthening international efforts to address trademark counterfeiting and copyright piracy. The expected outcome of the ACTA negotiations would be the establishment of higher international standards, which would help form the basis for more effective enforcement globally.

By improving conditions in the marketplace through policy initiatives indicated above, Industry Canada can ensure that Canadians and Canadian businesses benefit from a fair, efficient and competitive marketplace.

Program Activity: Small Business and Marketplace Services and Regional Operations Sector — Marketplace

Description: Delivers strong and effective regulatory regimes as well as regulations, policies, procedures and standards in addition to governing Canada’s spectrum industry.1
Expected Result Indicators
  • Marketplace fairness, integrity and efficiency are protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management
  • Number of rules and requirements that are updated or reviewed to ensure relevance and responsiveness to marketplace needs
  • Client awareness of marketplace rules and regulations governing incorporation, bankruptcy, insolvency, and measurement
  • Percentage of authorized radio stations operating in compliance with their authorized parameters as determined by a statistically sound sample for a given category
2008–2009 2009–2010 2010–2011
$95.6M 1098 FTEs $95.1M 1096 FTEs $95.1M 1096 FTEs

1 The description above has been amended. The description submitted to Treasury Board in 2007 reads as follows: "Delivers strong and effective regulatory regimes as well as regulations, policies, procedures and standards governing Canada’s spectrum industry." The description listed above will be submitted to Treasury Board Secretariat.

Industry Canada significantly impacts the fairness, efficiency and competition of the marketplace through consultation with stakeholders, regulation of business, and timely delivery of complementary services that respond to the ever-changing demands and needs of the modern marketplace.

Protecting Canadians is at the root of developing regulations and policies. Through consultation, Industry Canada involves affected stakeholders in the development of rules and requirements that directly impact how the marketplace operates, including the level of protection Canadians receive. One example is the proposed modifications to the Weights and Measures Act and the Electricity and Gas Inspection Act. In 2008–2009, Industry Canada will work with stakeholders to obtain feedback and support for proposed solutions to key issues affecting the governance of trade measurement in Canada. The key issues were identified through preliminary consultations with affected stakeholders, and research on international approaches was used to achieve and monitor the accuracy of measurement-based transactions. Industry Canada will also continue its work to improve the efficiency and effectiveness of the regulatory framework governing trade measurement through the harmonization of Canadian requirements with internationally accepted standards and the development of regulations and policies to facilitate the introduction of new measurement technologies to protect Canadians against financial loss due to inaccurate measurement.

Regulations, policies, rules, procedures and standards all affect the cost of doing business and the manner in which it is done. In order to understand how companies are affected, Industry Canada consults stakeholders during the process of developing regulations and uses the information gained to develop strong and effective regulations that do not create unnecessary burdens for business. An example of this for 2008–2009 is the plan to implement the new policy on Radiocommunication and Broadcasting Antenna Systems and its complementary outreach program.

In Budget 2007, a commitment was made to reduce the administrative and paper burden on small businesses by 20 percent, which is important given the disproportionately high regulatory compliance costs that these companies face. By November 2008, thirteen federal departments are committed to eliminating 80 000 requirements they impose on business through the Paperwork Burden Reduction Initiative. Industry Canada is one of these organizations and is coordinating the overall effort.

To strengthen efficiency in the marketplace Corporations Canada will increase service of the NUANS® system to provinces and territories by strengthening inter-jurisdictional partnerships. The NUANS system is a computerized tool that compares a proposed corporate name or trademark with databases of existing corporate bodies and trademarks. In 2008–2009, Corporations Canada will implement a governance structure composed of federal, provincial and territorial counterparts to oversee the strategic directions and results of NUANS.

Industry Canada will also improve the quality of service provided to Canadians and visitors during the Vancouver 2010 Olympic and Paralympic Winter Games. Regional Operations Sector will focus its attention on the careful planning of activities and resources required to provide quality spectrum in Vancouver by 2010, thereby not interfering with the normal functioning of the marketplace.

The plans and priorities of Industry Canada for 2008–2009 demonstrate the government’s commitment to ensure that the needs of small businesses are reflected in new policies, regulations, products and services that will increase the fairness, integrity and efficiency of the marketplace.

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

Description: Develops regulations, policies, procedures and standards governing Canada’s spectrum and telecommunications industries and the digital economy.
Expected Result Indicator
  • Canada’s radiocommunication and telecommunications infrastructure and online economy are governed by a modern and appropriate policy framework
  • Percentage of policies, legislation and regulations developed, updated or reviewed as identified in annual branch business plans/strategic plans
2008–2009 2009–2010 2010–2011
$58.9M 357 FTEs $57.8M 358 FTEs $57.8M 358 FTEs

As the underlying infrastructure of Canada’s economic activity, telecommunications services are key to Canada’s economy and future well-being. Industry Canada strives to ensure a fair, efficient and competitive marketplace for all Canadians by ensuring that Canada’s telecommunications infrastructure and online economy are governed by a modern policy and regulatory framework, and by effectively managing the radio frequency spectrum in the public interest. 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 its March 2006 report.

In 2008–2009, Industry Canada will advance the government’s agenda for telecommunications policy reform, including updating legislative and regulatory frameworks, as appropriate. The government will also consider appropriate responses to appeals of Canadian Radio-television and Telecommunications Commission (CRTC) decisions filed under the Telecommunications Act.

There is a growing demand for mobile services and, consequently, for spectrum, which is a finite resource. In 2008–2009, Industry Canada will undertake several priority actions to ensure a competitive marketplace that benefits Canadian businesses and consumers. They include:

  • Advanced Wireless Services (AWS) comprise a wide range of applications, including next-generation services like high-speed video and Internet, and faster access for cellphones, BlackBerry™ and other hand-held devices. The industry has supported the department in its plans to identify prime mobile spectrum for AWS in order to keep Canada in step with developments in North America and Europe that support a modern telecommunications infrastructure. On November 28, 2007, Industry Canada announced the policy framework for the auction of spectrum licences in the 2 GHz range, including spectrum for AWS. The centrepiece of this policy is the decision to set aside a portion of radio spectrum for new entrants. The policy decisions contained in the framework are final. The auction will begin on May 27, 2008 and is expected to provide further opportunities for the deployment of a growing range of innovative wireless services, thus accelerating innovation and choice in the wireless sector.
  • The CRTC has announced that August 31, 2011 is the shutdown date for analog over-the-air television. The transition to digital transmission of over-the-air TV signals will reduce the amount of radio spectrum currently dedicated to this service, thereby freeing up spectrum to be used for other purposes, including spectrum for public safety and for commercial auction. Having a fixed date for analog shutdown brings Canada in line with the United States and other countries. Industry Canada is now developing a post-transition Digital TV allotment plan in consultation with the industry. Industry Canada will also develop the necessary technical standards and regulations to support the licensing of new commercial and public safety systems in the 700 MHz band. New cross-border frequency arrangements with the United States, necessary for the rollout of Digital TV in Canada and the licensing of new wireless broadband and advanced public safety systems in the 700 MHz band, will be completed in 2008–2009.
  • Industry Canada issued a revised spectrum policy for the band 2500–2690 MHz in March 2006. The policy provided for the introduction of mobile services while allowing incumbent operators to stay in the band and pursue their business plans according to their existing licences. The policy does not provide for a firm transition date for the incumbent operators, but does indicate that the department will consult on the auction of unassigned spectrum and implementation matters. The consultation paper, planned for release in 2008, 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.
  • Additionally, the department expects to license spectrum for public air-to-ground radio service for use aboard aircraft. Annual licence fees will also be established for other spectrum being licensed on a first-come, first-served basis, including 1.4 GHz and 220–222 MHz. The department will also undertake consultations with stakeholders and interested parties on the renewal of auctioned licences for 24 and 38 GHz.
  • Industry Canada will also be working on new technical regulations and standards for advanced mobile wireless systems in the 2.5 GHz band, new cognitive wireless services in the 3.7 GHz band and ultrawideband devices.

Telecommunications networks play an increasingly vital role in today’s society. Consistent with the provisions of the new Emergency Management Act, Industry Canada will focus on identifying the risks related to telecommunications, spectrum management and technical aspects of broadcasting, including critical infrastructure in these areas. The risks affecting this sector derive from both physical and cyber threats. Emergency management plans with respect to these risks will address the prevention and mitigation of, preparedness for, response to and recovery from emergencies. In meeting these responsibilities, Industry Canada will work with its various partners in the private and public sectors to advance emergency management initiatives such as those related to cyber security, emergency alerts to the public, and all-hazard threats to the telecommunications infrastructure.

Industry Canada has a key role in representing Canada’s telecommunications and spectrum interests internationally. The International Telecommunication Union (ITU) is the United Nations Specialized Agency responsible for coordinating the global development of telecommunications and is the multilateral forum for the negotiation of binding international agreements on the use of the radio frequency spectrum, for the development of global standards, and for the promotion of all facets of the development of the global communications network. In 2008–2009, Industry Canada will be working to implement the decisions of the 2006 ITU Plenipotentiary Conference domestically.

In 2008–2009, the new international frequency allocations and regulations adopted at the World Radiocommunication Conference 2007 (WRC-07) will be incorporated into Canada’s national spectrum policies, standards and regulations. Manufacturers and service providers will be briefed on the impact of these new rules and the opportunities they present for Canada. In addition, work will start on the new agenda items for the next World Radiocommunication Conference in 2011. Industry Canada will work with industry to develop the technical basis for key agenda items and prepare necessary supporting studies for presentation at the appropriate International Telecommunication Union Radiocommunication Sector (ITU-R) meetings. Preliminary discussions with major regional groups such as the Inter-American Telecommunication Commission (CITEL) and the European Conference of Postal and Telecommunications Administrations (CEPT) are expected to take place in fiscal year 2008–2009.

Furthermore, over the next two years, Industry Canada will negotiate Mutual Recognition Agreements (MRAs) with Israel, Japan and with the Asia-Pacific Economic Cooperation (APEC) forum. The development of a new MRA is also under way to further streamline the certification process of telecom and radio equipment to facilitate trade between countries. Industry Canada will also negotiate 15 Canada–United States arrangements to allow for the introduction of new services.

In addition to the international work outlined above, Industry Canada will continue to work in important multilateral forums, 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.

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 have required 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 information and communications technologies for development and related to the continued deployment of communications infrastructure.

Industry Canada develops effective legal and policy frameworks that promote the growth of the online economy in Canada. The department will continue to work with its partners to measure the progress that Canada is making in the online marketplace. In 2008–2009, Industry Canada will introduce new and amended provisions to the Personal Information and Electronic Documents Act aimed at improving the effectiveness of the Act and strengthening the privacy protections it contains. The department will also develop options for introducing new legislation to combat spam and other related online threats and to strengthen enforcement.

In 1998, as the Internet was emerging in mainstream activity, the Organisation for Economic Co-operation and Development (OECD) convened a Ministerial Conference on E-Commerce in Ottawa. That meeting established policies that have been instrumental in nurturing online activity. Ten years later, the online world is at another critical juncture. The OECD Ministerial on the Future of the Internet Economy will take place in Seoul, Korea in June 2008. The meeting will discuss the role of the Internet in the 21st century and guiding principles for growth and development. Industry Canada chairs the organizing committee for the Ministerial and also holds vice-chair positions in two working parties responsible for analytical and policy development work in support of OECD policy principles and recommendations for the Internet economy.

Through these various priorities, Industry Canada will continue to ensure a fair and secure marketplace to meet the communications needs of all Canadians and encourage the adoption of enabling technologies across the economy.

Program Activity: Office of Consumer Affairs

Description: Works with the public and private sectors, using information, research and policy instruments to complement and support consumer protection regulation. The program is in accordance with Section 5 of the Department of Industry Act, which directs the Minister to promote the interests and protection of Canadian consumers, and with Chapter 8 of the Agreement on Internal Trade (Consumer-Related Measures and Standards).
Expected Result Indicator
  • Consumer interests are protected and promoted throughout Canada
  • Number of major challenges being addressed and/or documented that affect the consumer interest in Canada
2008–2009 2009–2010 2010–2011
$5.1M 23 FTEs $5.0M 23 FTEs $5.0M 23 FTEs

Industry Canada collaborates with other departments and governments, and plays a role in the development of policies and non-regulatory instruments to promote and protect consumer interests. Through its research, communications and outreach programs the department will support modern frameworks that promote consumer confidence and will address major consumer challenges, including identity theft, the alternative consumer credit market, consumer debt and literacy. By doing so, Industry Canada aligns itself with the Government of Canada objectives for a fair and secure marketplace.

In accordance with Chapter 8 of the Agreement on Internal Trade, Industry Canada will continue to work toward the harmonization of federal/provincial/territorial consumer policies through the Consumer Measures Committee. Over the planning period, the department will provide substantive analytical and administrative support to the Committee by carrying out a range of joint projects, including an examination of the potential to harmonize credit reporting requirements, and, with the Department of Justice, developing regulations to implement amendments to the Criminal Code pertaining to payday lending. Industry Canada will also assist the Committee by continually updating joint information products in response to new and emerging issues, such as the growing problem of identity theft, and by ensuring that other key consumer information products can be understood by consumers with low literacy skills. With Industry Canada’s support, the Committee will also engage in benchmarking best practices to improve cooperation in the interjurisdictional enforcement of existing consumer protection laws.

As outlined in the Office of Consumer Affairs Work Plan 2007–2009, Industry Canada will also further its own research and communication activities. Specifically, the department will:

  • examine how low-income consumers interact with certain essential consumer markets (financial, credit, housing, etc.);
  • refine and promote its online debt and financial management guides and ensure they can be understood by consumers with low literacy skills;
  • work with other federal departments to research and assess the financial capabilities of Canadians;
  • develop tools to assist regulatory and policy analysts in assessing the potential impact on consumers of new policy initiatives;
  • carry out research on how to better educate and equip consumers to deal with sustainable consumption of goods and services;
  • examine consumer issues in the rapidly developing online and ICT environments;
  • build on existing initiatives to inform retailers and consumers of the impending transition to over-the-air Digital TV signals; and
  • enhance its consumer information website through content and partnership renewal.

Industry Canada will continue to improve the Contributions Program for Non-Profit Consumer and Voluntary Organizations by offering electronic application services and implementing other administrative improvements recommended in the 2004–2005 evaluation study. This program provides funds to consumer groups to allow them to undertake research on consumer issues, develop evidence-based submissions to assist in the development of public policy, and assist them in reaching greater financial self-sufficiency through feasibility studies, pilot projects and business planning.

Through the Office of Consumer Affairs, Industry Canada can promote and protect consumer interests. By doing so, Industry Canada can provide Canadians with the confidence that the marketplace is fair, efficient and competitive.

Program Activity: Competition Bureau

Description: An independent law enforcement agency responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Promotes and maintains fair competition so that Canadians can benefit from competitive prices, product choice and quality services. Headed by the Commissioner of Competition, the organization investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction.
Expected Result Indicators
  • The Canadian economy is efficient and adaptable due to the competitiveness of prices and choices available to consumers
  • Percentage of economy subject to market forces
  • Dollar savings to consumers from Bureau actions that stop anti-competitive activity
2008–2009 2009–2010 2010–2011
$49.8M 452 FTEs $48.6M 452 FTEs $48.6M 452 FTEs

The Competition Bureau, as an independent law enforcement agency, is a vital player in ensuring that Canadians have a fair, efficient and competitive marketplace. 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, which have the effect of preventing or lessening competition substantially in a market; and misleading advertising and other deceptive marketing activity.

In addition to enforcement activities, the Competition Bureau’s (Bureau) mandate includes advocating that reliance on competitive, free markets, and not on government regulation, is the best way to efficiently allocate resources. The Bureau does this through several forums, including appearances before federal and provincial boards, commissions or other tribunals with respect to competition-related matters. 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.

When competitors collude to fix prices, allocate customers or geographic markets, manipulate the production or supply of a product or rig bids on public and private tendering, they prevent or lessen competition. This causes serious harm in the marketplace by affecting the price, quality and innovation that benefit Canadians in a competitive marketplace. These anti-competitive activities harm both consumers and businesses. Enforcing the conspiracy provisions of the Competition Act against illegal cartel activity is an important priority for the Bureau, which has recently increased the capacity of its regional offices to reflect its enforcement priority of detecting and combatting price-fixing and bid-rigging cartels in local Canadian markets. The Bureau’s work in detecting and deterring cartels also includes investigating and supporting prosecutions of international cartels, a crucial activity for competition agencies around the world.

The Bureau will continue to review mergers and acquisitions and challenge those few that would result in a substantial lessening or prevention of competition.

The Bureau is also targeting the increasing number of misleading and fraudulent performance claims affecting consumer health, such as weight loss and cancer cures or treatments. These claims are made to promote bogus products over the Internet and generate millions of dollars in loss for Canadian and foreign consumers. Through partnerships with Canadian private and public sector agencies and foreign counterpart agencies, the Bureau is determined to achieve significant progress in eliminating false health related claims, increase public awareness in this area and, where possible, remove the products entirely from the Canadian marketplace.

The Bureau is also looking at the issue of rebates, particularly delayed payment rebates such as mail-in or online rebates. Rebates in general offer a pro-competitive option for consumers in the market, but concern has been expressed about situations in which they may raise questions under the misleading advertising provisions. The publication of a document in the form of "Bright Lines" will educate consumers and articulate the Bureau’s positions of appropriate considerations under the law when using this form of marketing, in the hopes of influencing the manufacturing and retail sectors to establish industry-wide best practices for the use of rebate programs.

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 will therefore continue to be an area of focus for 2008–2009.

The Bureau uses the most appropriate means of detecting, correcting and deterring anti-competitive activity in Canada. In 2008–2009 and beyond, the Bureau will continue to:

  • improve the timeliness and quality of its analysis and outputs, including, for example, advance ruling certificates for proposed mergers, consent agreements in enforcement matters and filings before boards and tribunals;
  • protect and promote competitive markets and enable informed consumer choice so that consumers and businesses are able to self-protect against scams and other anti-competitive activity;
  • build, maintain and lever relationships with anti-trust and other law enforcement organizations in Canada and abroad to ensure that it produces high impact and timely results;
  • improve its ability to collect, manage, and share intelligence within the organization and with its law enforcement partners; and
  • improve its knowledge of emerging areas and markets, to be more flexible, proactive and focused, and to have a stronger influence on those who are most vulnerable.

The Bureau will continue to enable policy-makers to take competition concerns into account when developing new framework policies. This will ensure that new legislation and policies adopted do not impede competition. More broadly, the Bureau champions a "culture of competition" in Canada by promoting open, efficient and competitive markets to foster innovation and productivity, thus aligning itself with the Government of Canada objective for a fair and secure marketplace.

Program Activity: Canadian Intellectual Property Office

Description: Administers Canada’s system of intellectual property (IP) rights, namely patents, trademarks, copyright, industrial designs and integrated circuit topographies. Grants and registers IP rights as well as disseminates information related to these rights to businesses, educational institutions and Canadians in general. Operates under a revolving fund regime and aims to accelerate Canada’s economic development.*
Expected Results Indicators
  • The delivery of and quality of CIPO’s services respond to client needs and expectations
  • Increase awareness and use of IP by SMEs
  • Percentage overall satisfaction of clients with CIPO’s services
  • Percentage of SMEs that are aware/familiar with IP
2008–2009 2009–2010 2010–2011
$4.9M 1030 FTEs $7.1M 1040 FTEs $6.4M 1040 FTEs

* The Canadian Intellectual Property Office is a Special Operating Agency funded by a revolving fund and is therefore listed as a separate program activity (for financial information, see Table 4.2.8 "Canadian Intellectual Property Office (CIPO) Revolving Fund — Statement of Operations."

By delivering quality and timely IP rights in a modern IP system, and by promoting the dissemination and diffusion of IP knowledge, the Canadian Intellectual Property Office (CIPO) is contributing to the federal government’s efforts to ensure a business climate beneficial to the Canadian economy and society.

Mindful of the government’s efforts to increase the level and quality of IP activity by Canadians, CIPO has identified the following priorities for the following few years:

  • to provide clients with quality IP rights in a timely fashion;
  • to effectively respond to Canadians’ evolving IP knowledge needs and expectations, including the particular challenges facing SMEs ;
  • to administer a modern IP framework;
  • to play an active role of influence and collaboration with domestic and international IP partners and stakeholders; and
  • to be an innovative organization, with a proactive orientation, that strives to continually enhance the value and contributions of its products and services, and its people.

To accomplish these priorities, CIPO will be undertaking a business transformation initiative — Enterprise Business Renewal (EBR) — that will improve the quality and consistency of IP rights, simplify operational and administrative processes, improve its ability to keep up with application volumes and improve services that benefit staff and optimize client self-sufficiency.

Part of CIPO’s mandate is to build awareness and knowledge of IP and to support its effective use. Canadian innovators, in particular SMEs, need to realize the strategic value of IP in a knowledge-based economy. CIPO will continue to build awareness and knowledge of IP by cultivating strategic relationships with key partners and stakeholders that are pursuing related SME and educational initiatives, by sharing information about IP, and by developing and leveraging CIPO’s outreach capabilities.

Having a modern IP framework in place creates conditions for entrepreneurship, innovation, investment and competitiveness. In partnership with the Strategic Policy Sector, CIPO will undertake further modernization of the intellectual property administrative regime and will harmonize with other intellectual property offices.

The international nature of IP is a key determinant for CIPO’s operational and management strategies. CIPO intends to increase participation in and contribution to key bilateral, regional and multilateral settings to benefit from the experiences of other IPOs, to strengthen key relationships, and to enhance our sharing of information. The Canadian Intellectual Property Office seeks to strategically influence the international IP system to the benefit of Canadians.

In 2008–2009, CIPO will focus on improving client services in the areas of turnaround times, accessibility and communications; modernizing the IP administrative framework; increasing awareness of IP amongst Canadian businesses; and strategically influencing the international IP system for the benefit of Canadians. These initiatives will ensure that Canadian innovators work in a fair, efficient and competitive marketplace, thus strengthening the Canadian economy.

2.2 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 is provided for each program activity. The expected results and indicators are a demonstration of 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 Section 4.3.

Plans by Program Activity

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

Description: Develops Science and Technology policies to enhance Canada’s research and innovation capacity through promotion of investments in research and skills development, and by ensuring the technology adoption capacity of the marketplace.
Expected Result Indicators
  • Development and coordination of policy frameworks in support of an innovative economy
  • Policy proposals that are brought forward to reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector
  • The Science and Innovation Sector (SIS) is coordinating the entire government S&T Strategy, released by the Prime Minister on May 17, 2007. It contained 37 policy commitments. SIS is tracking advances against these commitments
  • Innovation indicators prepared by Statistics Canada and others, such as the OECD
2008–2009 2009–2010 2010–2011
$101.1M 74 FTEs $151.0M 74 FTEs $174.3M 74 FTEs

Innovation, driven by Science and Technology (S&T), is key to strengthening Canada’s competitiveness and productivity and improving the quality of life of Canadians. The recently released S&T Strategy, Mobilizing Science and Technology to Canada’s Advantage, highlights the importance of S&T to Canada and provides a framework to guide federal government decision-making in support of S&T over the coming years.

Budget 2007 announced $1.9 billion in funding for a number of the policy commitments in the S&T Strategy. Over the period 2008–2009 and beyond, Industry Canada will play a significant role in implementing the strategy. The Assistant Deputy Ministers’ Committee on S&T is the whole-of-government coordinating committee for science-based departments and agencies and is the appropriate venue to oversee implementation and monitor progress. Industry Canada co-chairs this committee and provides secretariat services.

To create an Entrepreneurial Advantage, the S&T Strategy recognizes the importance of marketplace framework policies (discussed in other parts of this document) and public–private research partnerships. Together with the three federal granting councils (the Natural Sciences and Engineering Research Council of Canada (NSERC), the Social Sciences and Humanities Research Council of Canada (SSHRC), and the Canadian Institutes of Health Research (CIHR)), Industry Canada improves public–private partnerships by establishing a new Centres of Excellence in Commercialization and Research program, negotiating and managing funding agreements with the eight Centres named in Budget 2007, creating business-led research networks under the Networks of Centres of Excellence program, and turning the College and Community Innovation Pilot Program into a permanent program.

To create a Knowledge Advantage, together with the three federal granting councils, the Canada Foundation for Innovation, Canadian Institute for Advanced Research, the Council of Canadian Academies, Genome Canada, and the Pierre Elliott Trudeau Foundation, Industry Canada will work to increase support for research in priority areas, research networks and research infrastructure. Industry Canada will also work with the granting councils to implement the S&T Strategy’s commitments to enhance their accountability and responsiveness through improved governance measures.

In partnership with other federal government departments and agencies, Industry Canada will work to improve the federal government’s ability to access the S&T it requires in support of its policy, regulatory and operational mandates. Industry Canada and the Assistant Deputy Ministers’ Committee on S&T will work towards strengthening S&T collaborations among federal departments and agencies and between the federal S&T community and universities and colleges, industry and the domestic and international not-for-profit sectors.

To create a People Advantage, Industry Canada, in partnership with the granting councils, is expanding the Canada Graduate Scholarships program by an additional 1000 students per year and has launched a new industrial R&D internship program to support up to 1000 interns per year.

Industry Canada will support the new Science, Technology and Innovation Council, which will advise the government on S&T issues and produce regular state-of-the-nation reports that will benchmark Canada’s S&T performance against international standards of excellence.

The S&T Strategy calls for greater cooperation and alignment among the various federal programs, and between federal and provincial programs, in order to generate efficiencies and increase the effectiveness of these efforts. In 2008–2009, Industry Canada will contribute to this overarching goal by working with the Business Development Bank of Canada, the National Research Council and NSERC to identify opportunities for closer integration and cooperation, and will explore opportunities to further improve commercialization outcomes in collaboration with the provinces and territories.

The Minister of Industry has been designated as the lead Minister for the Security and Prosperity Partnership of North America (SPP), a trilateral means through which Canada engages in dialogue, priority-setting, collaboration and action with its North American counterparts to improve the security, prosperity and quality of life of North Americans. In this capacity, Industry Canada will support the Minister in working closely with his Canadian colleagues, and his U.S. and Mexican counterparts, to identify and advance initiatives within the five priority areas announced at the North American Leaders’ Summit in Montebello, Quebec, in August 2007: Enhancing the Global Competitiveness of North America; Safe Food and Products; Sustainable Energy and Environment; Smart and Secure Borders; and Emergency Management and Preparedness.

Through science and innovation initiatives, Industry Canada strives for an innovative economy for all Canadians.

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

Description: Provides value-added knowledge and expertise about Canadian industries to create conditions for research and development and commercialization, support innovation, encourage and promote technologies, and to strengthen synergies between industry and government.
Expected Result Indicators
  • Innovative Canadian industries
  • Increase year-over-year in industrial R&D expenditures
  • Increase year-over-year in output of high and medium technology industries relative to the total (for which the Industry Sector is responsible), subject to uncontrolled economic influence/impacts
2008–2009 2009–2010 2010–2011
$9.5M 83 FTEs $9.4M 83 FTEs $9.4M 83 FTEs

Canada’s prosperity depends increasingly on its ability to put knowledge to work to create an innovative economy and to foster the business environment. Industry Canada works towards this in part by segregating the economy into priority sectors and tailoring standard tools for each in order to maintain channels of communication and to enhance partnerships with industry.

Industry Canada has an internationally recognized expertise in the development of Technology Roadmaps (TRMs). Developed in partnership with private industry, TRMs are strategic tools that help firms identify the technologies needed to capture future market opportunities. TRMs also help the federal government identify national capabilities and technology gaps, and can be used by major research funders to focus on priority research areas. Technology Roadmaps are designed to increase and better target business spending on research and development (R&D) and the faster development and diffusion of new technologies that address industry needs.

In 2008–2009, five TRMs will be under development: low-cost aerospace composites manufacturing, processing and repair; diagnostics, prognostics and health management; aerospace protective coatings; computational fluid dynamics; and textiles. Three more roadmaps are about to begin in the areas of new media, sustainable housing, and electric mobility.

Industry Canada is collaborating with Human Resources and Social Development Canada’s (HRSDC) Sector Councils on the development of TRMs. Bringing together Sector Councils and TRMs both deepens and broadens the government’s understanding of competitiveness, helps to build a platform for focused and sustained action, and helps build a common perspective and partnerships to support and drive collective action. A compendium of government programs that could assist in securing funding for the implementation of the TRMs is also being updated, and will be shared with industry when developing roadmaps.

Industry Canada works to address specific sector needs by leading networks to bring innovative technologies to market. Industry Canada continues to lead the Public Service of Canada Nanotechnology Network. This network is three years old, with a membership across the federal government. Through this network, Industry Canada hosts seminars, develops background documents and international position papers for Canada; and shares information about, and raises the profile of, these emerging technologies.

Industry Canada also brings about innovation by leading other federal departments in government initiatives. Biotechnology is an enabling technology applied across diverse industry sectors. To enhance the commercialization efforts of biotechnology activities, Industry Canada will continue to encourage the global competitiveness of health industries that have led in the application of biotechnology. In collaboration with the Public Health Agency of Canada, the Canadian International Development Agency, the Canadian Institutes of Health Research, and Health Canada, Industry Canada will continue to implement the Canadian HIV Vaccine Initiative. Industry Canada 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 commercial-ization of sustainable fuels, chemicals and materials from renewable bio-resources.

Industry Canada will work with automotive industry–government–university R&D stakeholders, such as AUTO21, WatCAR, and Precarn, to identify approaches to enhancing R&D in areas of priority interest to industry. As Canada’s automotive industry is faced with the challenge of bringing higher quality and lower cost technology advances to markets in less time, it is important for the future of the sector that collaborative R&D initiatives effectively address industry needs and that company R&D mandates be established.

Industry Canada also uses its expertise to help identify commercialization and industrial development opportunities for emerging technologies. Growth in the renewable and alternative energy sectors is providing opportunities for industrial development through both technology commercialization and manufacturing. Sustainable energy from renewable and alternative pathways such as hydrogen fuel cells, wind and solar energy will improve the environment and the health of Canadians and is crucial to Canada’s future economic development. Industry Canada 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 sectors’ rapid growth, and explore domestic and international partnerships for business development.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Science and Technology (S&T) and Innovation

Description: Supports advanced and applied research within the Canadian information and communications technologies sector for the development of innovative technologies.
Expected Result Indicators
  • Improved science and research capacity and commercialization of information and communications technologies
  • Percentage of "big-science" projects that utilize CANARIE’s advanced network
  • Percentage of the top 50 Canadian R&D universities that utilize CANARIE’s advanced network
  • Number of new technologies and applications developed in the areas of intelligent systems and advanced robotics through Precarn’s collaborative model
2008–2009 2009–2010 2010–2011
$18.4M 4 FTEs $32.4M 4 FTEs $34.4M 4 FTEs

Innovative applications of information and communications technologies provide competitive advantages to Canadian companies, researchers and citizens.

The government’s strategic plan for Science and Technology, Mobilizing Science and Technology to Canada’s Advantage, aims to make Canada a world leader in S&T and innovation. The S&T Strategy outlined federal support for leading-edge research infrastructure. This included $120 million for the not-for-profit corporation CANARIE Inc. to support the operation and development of Canada’s next-generation advanced research network. In partnership with advanced research networks in every province, the CANARIE network (previously known as CA*net) connects research facilities, educational institutions, hospitals, and other science facilities to each other and to their international peers. In 2008–2009, CANARIE will continue to operate and develop the network as essential research infrastructure and to increase access to, and use of, the network. CANARIE will also facilitate Canada’s involvement in network-enabled platforms, which are viewed as enablers of big science (i.e. e-science, e-research and cyberinfrastructure).

Scientific research is experiencing a fundamental change; it is global, data-intense, multidisciplinary, collaborative and network-based. CANARIE, together with stakeholders, is well-positioned to address the future of advanced networks and the role of e-science to enable Canadian researchers and scientists to capture the benefits of international collaborative research.

Industry Canada also provides support to Precarn Inc. Precarn 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. The $20 million has already been committed to various ongoing projects in all sectors. Some examples are: the CoastWatch Project (Defence and Security); Non-Invasive Glucose Monitoring (Health and related Life Sciences); and an Intelligent Robotic Vision Project (Manufacturing). Specific examples of ongoing Precarn projects for the period 2008–2009 include a working prototype of an Automated Laser-Scanning System for the detection of deformation during automobile assembly, and an Advanced Automotive Component Failure Prediction and Simulator Control System.

Through these actions, Industry Canada ensures Canadian researchers have access to leading-edge tools to participate in international collaborative research and supports the development of innovative technologies.

Program Activity: Communications Research Centre Canada

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 information and communications technologies sector.
Expected Results Indicators
  • Communications sector clients receive the required technical input to develop telecommunications policies, regulations, programs and standards
  • Canadian companies use CRC-developed technology to enhance their product lines and competitiveness
  • Extent of client satisfaction (related to content, timeliness and usefulness) with Communications Research Centre technical inputs and assessments used to develop telecommunications policies, regulations, programs and standards
  • Sales revenue of Canadian communications companies with a technology link to Communications Research Centre
2008–2009 2009–2010 2010–2011
$43.1M 400 FTEs $41.0M 400 FTEs $41.0M 400 FTEs

Communications Research Centre Canada (CRC) performs R&D on communications technologies of significant importance to Canada, including radio, satellite, broadcasting and fibre optics. As part of Industry Canada, CRC provides independent technical advice related to the department’s mandate for radio spectrum management, communications policy and regulatory decision-making. Through CRC, Industry Canada also works with organizations such as the International Telecommunication Union (ITU) and the Institute of Electrical and Electronic Engineers (IEEE) on the development of standards to facilitate the efficient delivery of telecommunications and broadcasting applications, and to support Canada’s position related to global management of the radio frequency spectrum and satellite orbits.

In 2008–2009 and in preparation for the World Radiocommunication Conference 2011 (WRC 11), Industry Canada will contribute to ITU activities related to audio and video quality assessment, propagation studies for new radio services, and will chair the study group dealing with spectrum allocations for all satellite services. CRC will also continue its role as vice-chair of an IEEE working group tasked with the development and approval of a new world standard for wireless regional area networks, and is working to establish policies and technical regulations for the operation of such networks within existing television bands in Canada.

In support of the development of policies and regulations for new future communications services in Canada, as well as to provide forward-looking technical assessments to Industry Canada and the Canadian Radio-television and Telecommunications Commission (CRTC), CRC will continue to target several technologies of future importance within its overall R&D program, including cognitive radio, software-defined radio, convergence of Internet and broadcasting, network security and sensor networks.

Information and communications technologies (ICTs) were identified in the recent federal Science and Technology Strategy as one of four technology priority areas for Canada. In 2008–2009, CRC will work closely with CANARIE Inc. and the National Research Council (NRC) to provide broadband infrastructure support for network-enabled platforms that can be used by a distributed community of users (such as those involved in health care and teaching) for collaborative projects. Communications Research Centre Canada will also attempt to engage additional partners in ICT-related projects to increase the adoption of ICTs in sectors that can benefit from its use.

Industry Canada also assists or partners with several other departments and agencies on communications issues. Significant R&D and program delivery are undertaken for the Department of National Defence (DND) and the Canadian Space Agency (CSA) on a cost-recovery basis. In 2008–2009 and following years, CRC will conduct directed research activities in several areas of importance to DND, including tactical radio and network technologies to enhance operations and improve interoperability with coalition partners and public agencies; cognitive radio concepts for efficient use of radio spectrum; and battlefield sensor networks to enhance the protection of personnel; and will participate in developing a prototype communications system for Northern protection. In support of the CSA, CRC will take the lead for the definition and approval process of the next-generation satellite communications program.

Commercialization of new technologies is another key component of the federal Science and Technology Strategy. One beneficial outcome of CRC’s research program is the development of intellectual property (IP) 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. Although CRC has already been shown to be a top performer among all federal laboratories in this regard, additional efforts will be made to further increase Canadian SME awareness and uptake of CRC’s IP portfolio.

As the primary federal laboratory for research and development in advanced telecommunications, Industry Canada’s work is crucial to achieving the Government of Canada’s priority for an innovative and knowledge-based economy.

Program Activity: Industrial Technologies Office — Special Operating Agency

Description: Administers and delivers the Strategic Aerospace and Defence Initiative, the Program for Strategic Industrial Projects, and the h2 Early Adopters Program, as well as manages the remaining contribution agreements under the Technology Partnerships Canada program. Its objective is to accelerate technological innovation in Canadian companies to improve their competitiveness and productivity, while assuring sustainable development.
Expected Result Indicator
  • Leading-edge research and development in Canadian firms
  • Dollar of private-sector investment leveraged per dollar of Agency investment in ITO projects
2008–2009 2009–2010 2010–2011
$311.8M 98 FTEs $210.4M 96 FTEs $200.6M 95 FTEs

Industry Canada, through the Industrial Technologies Office, supports the Government of Canada priority of an innovative and knowledge-based economy. Research and development (R&D) is a key force spurring innovation-based economic growth. Partnering with businesses and fostering innovation in science and technology ensures that discoveries and breakthroughs happen here in Canada, and that the social and economic benefits of these innovations contribute to Canadians’ standard of living and quality of life.

Industry Canada delivers the Strategic Aerospace and Defence Initiative (SADI) via repayable contributions that will leverage crucial private-sector R&D investment in the aerospace, defence, security and space industries. SADI has three main objectives: to encourage strategic R&D that will result in innovation and excellence in new products and services; to enhance the competitiveness of Canadian aerospace and defence (A&D) companies; and to foster collaboration among research institutes, universities, colleges and the private sector.

Strategic R&D projects under SADI will use technologies that either: support the development of next-generation A&D-related products and/or services; build on existing Canadian strengths in A&D technology development; enable Canadian companies to participate in major platforms and supply chains; or assist the A&Dndustries in achieving Canada’s international obligations.

In 2008–2009, Industry Canada will continue to make investments in industrial research and pre-competitive development in Canada’s A&D industries through its SADI program. It will also ensure effective management of the $3.5 billion Technology Partnerships Canada legacy R&D program and the existing h2 Early Adopters and Strategic Industrial Projects programs. This includes managing the successful wind-down of the h2 Early Adopters program, which ends on March 31, 2008.

By accelerating technological innovation in Canadian companies, Industry Canada works towards the government’s priority of ensuring Canadians have an innovative and knowledge-based economy and that Canadian companies become more competitive and productive.

2.3 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 is provided for each program activity. The expected results and indicators are a demonstration of 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 Section 4.3.

Plans by Program Activity

Program Activity: Strategic Policy Sector — Economic Development

Description: Carries out research and analysis on issues relating to industrial competitiveness and sustainability, provides strategic information and advice to the Minister and Deputy Minister, and contributes to the development of policy options. These policies have a direct impact on Canadian businesses, as they influence the conditions under which companies compete.
Expected Result Indicator
  • Development and coordination of policy frameworks in support of competitive industry and sustainable communities
  • Development and coordination of economic policy frameworks that support the competitiveness of Canadian industries and help ensure the sustainability of communities across the country
2008–2009 2009–2010 2010–2011
$6.6M 38 FTEs $6.2M 38 FTEs $6.2M 38 FTEs

Industry Canada is committed to advancing sustainable development by supporting more productive, innovative and globally competitive businesses, resulting in a higher quality of life for Canadians. The department’s fourth Sustainable Development Strategy 2006–2009 (SDS IV) aims to extend the practical implementation of the business case for sustainable development in Canadian industry. The three strategic outcomes: sustainability-driven technologies and commercialization; sustainability tools, practices, research and awareness; and sustainability practices and operations within Industry Canada are the department’s sustainability objectives over the life of the Strategy (see Table 3.2: Sustainable Development Strategy (SDS), for more details). Beginning in 2008, the department will be developing the fifth Industry Canada Sustainable Development Strategy, covering the years 2010 to 2013. It will be tabled in Parliament in late 2009.

International trade and access to foreign markets are important contributors to economic growth. Exposure to international trade provides incentives to firms to access new technologies, apply research and development to innovate and create greater economies of scale in production. Trade and investment abroad give domestic firms access to new knowledge and greater opportunities to profit from their investments. Further, new trade opportunities stimulate both new investment and reinvestment, activities that are crucial to increasing Canada’s prosperity.

Industry Canada will work closely with the Department of Foreign Affairs and International Trade Canada (DFAIT) on Canada’s trade and investment initiatives given the positive role that the reduction of trade barriers plays on the domestic performance of firms, particularly its ability to generate innovations. The focus will be to enhance the competitiveness of Canadian firms, develop new and improved rules for international trade, and ensure that Canada’s approach across a range of international forums is dynamic, keeps pace with technological change and supports the Government of Canada’s priority of a stronger Canadian economy.

Industry Canada will develop and articulate its position on a wide range of trade policy issues. In 2008–2009, Industry Canada will support Canada’s international trade agenda by:

  • providing advice to DFAIT and other departments on issues related to Industry Canada’s mandate;
  • participating in the Doha Round of multilateral trade negotiations at the World Trade Organization (WTO), particularly the negotiation of sectoral agreements in the non-agricultural market access negotiations and rules for subsidies; and
  • advising on, and participating in, trade and investment negotiations, regionally with partners such as the Andean and Caribbean communities, bilaterally with Korea and the Dominican Republic and in investment negotiations with China and Jordan.

Industry Canada will continue to develop its position on international trade rules, specifically the consistency of financial investments with the WTO Agreement on Subsidies and Countervailing Measures and investment proposals with NAFTA in the context of investment negotiations.

Through policy initiatives aimed at improving the competitiveness of Canadian industry and sustainable development, Industry Canada can help Canadians take advantage of economic opportunities while supporting business and sustainable development.

Program Activity: Small Business and Marketplace Services and Regional Operations Sector — Economic Development

Description: Supports and enhances the role and contribution of small and medium-sized enterprises to Canada’s economic well-being, and provides regional intelligence and presence across Canada as well as the delivery of programs, services, and information.
Expected Result Indicators
  • A business environment that supports entrepreneurship, sustainable communities, growth and competitiveness across Canada, and recognizes regional perspectives
  • Number of new government policies or initiatives that address SME needs, encourage entrepreneurship, or reflect regional perspective
  • Number of new or improved departmental programs, services and information products that target SMEs
2008–2009 2009–2010 2010–2011
$235.6M 523 FTEs $179.8M 505 FTEs $172.3M 505 FTEs

Industry Canada has linked its plans and priorities to enhancing the roles and contributions of small and medium-sized enterprises to the priorities identified in the Speech from the Throne, namely effective economic leadership and improving our environment. SMEs play a pivotal role in the Canadian economy, helping to improve the Canadian standard of living and quality of life. Industry Canada’s programs and services address small business challenges and are tailored to address regional needs, and overall make it easier for small businesses to start up or grow.

One example is the unique collaboration between federal, provincial, territorial and local governments to create BizPaL. In 2008–2009, Industry Canada will work with its partners to increase the number of locations using BizPaL. This service supports the Government of Canada’s commitment to reduce the regulatory burden on business by helping businesses identify their permit and licence requirements quickly and easily, reducing the time it takes entrepreneurs to understand their compliance requirements.

National and regional programs increase access and availability of loans for establishing new businesses, growth of enterprises, and create jobs for community members. For example, the Canada Small Business Financing Program (CSBFP) increases the availability of loans for establishing, expanding, modernizing and improving small businesses by encouraging financial institutions to make financing available to them. The CSBFP helps businesses establish, grow and create jobs, which results in a more dynamic Canadian economy and benefits for Canadians. Other programs promote sustainable development and advise on the socio-economic impacts in the mining and resource sectors as Canada responds to the modern expectations of responsible development.

The realities of protecting our environment while encouraging sustainable growth in SMEs have financial costs that smaller businesses and municipalities cannot afford to bear. Industry Canada is responding to those previously unforeseen burdens through many of its programs and services, such as the Ontario Potable Water Program (OPWP). OPWP will provide $50 million in funding to Ontario municipalities that incurred increased costs in ensuring their Canada-Ontario Infrastructure Program (COIP) drinking water projects comply with Ontario drinking water regulations. The funding provided will support community capacity to respond to economic development opportunities and challenges.

Regionally specific programs enhance the Government of Canada’s ability to provide individual community support. FedNor 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.

Through program delivery that supports entrepreneurship, sustainable communities, growth and competitiveness, Industry Canada recognizes regional perspectives through its work with SMEs.

Program Activity: Industry Sector — Economic Development

Description: Provides value-added knowledge and expertise about Canadian industries to position Canada as an ideal environment for foreign direct investment, ensure a strong link in global value chains and assist firms to strengthen global partnerships and business capacity to respond to risks and opportunities.
Expected Result Indicators
  • Competitive and sustainable Canadian industries
  • Increase in year-over-year Industry Sector's GDP
  • Increase in year-over-year Industry Sector's exports
  • Increase in year-over-year Industry Sector's productivity
2008–2009 2009–2010 2010–2011
$66.8M 235 FTEs $56.1M 235 FTEs $53.5M 235 FTEs

In support of competitive industry and sustainable communities, Industry Canada has a lead role in increasing the government’s expertise on industrial development in order to better respond to risks and seize market opportunities. Industry Canada also seeks to encourage firms to move up the value chain and become more competitive.

Canadian firms have been increasingly outsourcing their activities to low-cost countries and third parties focusing on core competencies and high-value activities. To better inform policy development within Industry Canada and other government departments, Industry Canada will conduct research and discussions with industry, other departments, the provinces, and other countries through the working parties of the Organisation for Economic Co-operation and Development. This research will include: case studies to highlight the role of Canadian firms in the global value chains (GVCs) of specific industries; a pilot project to develop relevant indicators with Statistics Canada and DFAIT; work on the involvement of Canadian industries' GVCs, and the impact of various barriers on these industries.

One significant example of the department’s efforts to ensure that government policies reflect the evolving realities of GVCs is Industrial and Regional Benefits and defence procurement. Industry Canada is working with DND and Public Works and Government Services Canada (PWGSC) 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.

Industry Canada contributes to research and analysis related to streamlining regulation in order to increase the government’s understanding of the sectoral impacts of regulation. With the Treasury Board of Canada Secretariat (TBS), Industry Canada will sponsor the development of a replacement for the Business Impact Test and the development of an overall framework for assessing the impacts of regulation. This framework will integrate the impacts of proposed regulations on business, competition and the consumer. Industry Canada will continue its analysis of key sectoral regulatory differences between Canada and the United States that impact trade and investment. The department will also provide analysis and advocacy for regulatory efficiency and effectiveness for health industries to enhance the ability of firms to commercialize innovative products without undue delays or costs.

Industry Canada also remains a major partner in the Government of Canada’s efforts to stimulate trade and investment flows that can benefit the Canadian economy as well as improve market access. For example, by leading the Canadian delegation to annual Canada–USA–Japan government-to-government talks on building codes and product standards, Industry Canada works with key government and industry stakeholders to improve market access in Japan, Canada’s second largest export market for wood building products. Industry Canada also provides expert sector knowledge through trade policy activities and trade negotiations with Singapore, Korea, Colombia and Peru (Andean), Dominican Republic, the Caribbean Community (CARICOM) and the Central America 4 (El Salvador, Guatemala, Honduras, Nicaragua).

Industry Canada also contributes to major trade shows and missions to showcase Canadian capabilities as part of its business and industrial development activities, by providing strategic sectoral analysis and by fostering international strategic partnerships. For example, Industry Canada will be present at BIO 2008 to brand Canada as an attractive investment location for the global biotechnology and biopharmaceutical industries; the Farnborough International Airshow to help solidify Canada’s position in the global aerospace and defence industry; and GLOBE 2008 to showcase Canadian environmental technology capabilities.

As well, Industry Canada will continue to be involved in the Security and Prosperity Partnership of North America (SPP) by contributing input and background analysis toward the implementation of the Regulatory Cooperation Framework, which was announced at the Leaders' Summit that took place in Montebello on August 20–21, 2007.

As a centre of knowledge and analysis on key industrial sectors of the economy, Industry Canada delivers various programs and services to support Canadian industries’ efforts to become more competitive and sustainable. For example, Canada’s shipbuilding and industrial marine sectors are important to our country’s national security and defence and to regional economics. In order to support these sectors, the Structured Financing Facility (SFF) will continue to buy-down the financing costs for qualified clientele who place orders to Canadian shipyards. The SFF was renewed in September 2007 with a contribution budget of $45 million for a period ending March 2011. It will help to place Canadian shipbuilders on a more competitive footing by stimulating demand, maintaining capacity and helping them develop sustainable markets in niche shipyard products.

Similarly, the textile and apparel industries continue to undergo substantial adjustment pressure due to globalization and trade liberalization. In 2008–2009, Industry Canada will support the textiles industry’s efforts to become more competitive through the Canadian Apparel and Textile Industries Program (CATIP). The department will contribute funds to projects aimed at reorienting production towards higher-value-added products, implementing new technologies and accelerating the adoption of best practices to improve productivity.

Industry Canada also provides leadership on a broad range of issues affecting manufacturing competitiveness. As mentioned in the October 16, 2007 Speech from the Throne, manufacturing is a key sector of the Canadian economy. Industry Canada will continue to work with stakeholders and follow up on commitments and intentions resulting from the government’s response to the report of the Standing Committee on Industry, Science and Technology, Manufacturing: Moving Forward — Rising to the Challenge. Options for possible further measures to create the conditions necessary for a strong and successful manufacturing sector will be identified. In this context, the department will consider potential measures to ensure the continuing competitiveness of the automotive sector in a number of key areas, including border improvements, regulatory harmonization and innovation. An updated inventory of federal government activities relevant to manufacturers will be created, and lean and sustainable manufacturing practices will be promoted through a range of conferences and information products. Value-added analysis of the manufacturing sector’s performance will be developed and shared with key decision-makers.

In 2008–2009, Industry Canada will partner with industry and other government departments on various environmental initiatives to implement the "made-in-Canada" environmental agenda. The department’s participation will ensure that key sectoral considerations are factored into the development of the agenda. Industry Canada is also contributing to the review of the Canadian Environmental Protection Act. Additionally, Industry Canada will be an active participant in the sector-specific Asia-Pacific Partnership on Clean Development and Climate (APP), Task Forces. It will be engaged in domestic consultation sessions with firms and associations to identify project activities that Canada could pursue through the APP based on the interests of industry participants.

Industry Canada’s planned initiatives, in support of competitive industry and sustainable communities, will help achieve competitiveness and sustainable economic growth in priority sectors and emerging technologies.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Economic Development

Description: Supports the development of a competitive information and communications technologies (ICTs) industry in Canada. It also facilitates the use of reliable, modern ICT infrastructure to promote the full participation of Canadians and communities in the digital economy.
Expected Result Indicators
  • Aid Canadian ICT companies in positioning themselves for industrial opportunities and growth in the global marketplace
  • Number of website hits for ICT information products created to increase the level of awareness of Canadian ICT companies of domestic and international trends (e.g., quarterly monitoring of ICT sector)
  • Number of requests by Canadian ICT companies for business development services (e.g., investment)
2008–2009 2009–2010 2010–2011
$26.1M 49 FTEs $12.9M 49 FTEs $12.9M 49 FTEs

Information and communications technologies (ICTs) are powerful enablers across the economy. They drive economic development, productivity and innovation and are key to the social and economic inclusion of Canadians.

Through programs such as the Community Access Program (CAP) and Computers for Schools (CFS), Industry Canada supplements Canadians’ access to ICTs and modern ICT infrastructure. A decision about program spending in 2008–2009 and beyond is forthcoming.

Industry Canada will continue to consult with ICT industry stakeholders to gauge and address relevant issues. Through intelligence gathering and sector analysis, the department supports a wide range of private and public sector entities with a stake in the ICT sector, and advocates policy positions to benefit the industry. In 2008–2009, it will continue to provide business development services to enhance Canadian ICT companies’ competitiveness internationally and promote technological and commercial opportunities, particularly in markets in India, China, Brazil, and the United States.

Through these planned actions aimed at improving the competitiveness of the Canadian ICT sector and supporting the access of Canadian communities to these enabling technologies, Industry Canada can help Canadians take advantage of economic opportunities while supporting business development.