ARCHIVED - Economic Development Agency of Canada for the Regions of Quebec

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2 Analysis of Program Activities by Strategic Outcome

This section provides information on the Agency’s strategic outcomes and program activities. For each program activity, a Program activity summary sub-section presents a brief description,and a Planning highlights and benefits for Canadians sub-section outlines how each program activity will support the plans, priorities and strategic outcomes set out in section 1.

2.1 Strategic outcome #1: Dynamic and revitalized communities that have a better socio-economic outlook and are developing their economic activity base

Several regions or communities whose economy is traditionally based on natural resources and which are generally far from the major markets are having difficulty diversifying their economic base. Moreover, owing to their heavy economic dependency on a small number of industries or sectors, these communities are often hardest hit in the event of a crisis in one of their dominant sectors. The global economic downturn is likely to lead to even greater adjustment difficulties for communities posting slow economic growth and those dependent on traditional economic sectors or the manufacturing sector.

It is in that perspective that the Agency pursues its object of helping Quebec communities posting slow economic growth increase their development capability and dynamism. Furthermore, it intervenes financially in all communities to renew and construct infrastructure to improve citizens’ quality of life.

The Agency achieves this strategic outcome through the following three components:

• Development of communities – by helping Quebec regions and communities maintain and develop their economic activity base by building on their own assets.
• Infrastructure – by renewing and constructing quality public infrastructure in rural and urban communities in Quebec.
• Special intervention measures – by supporting communities facing major economic shocks or natural disasters.

The Agency has grant and contribution programs to achieve this strategic outcome, namely, Community Diversification, Community Futures Program (CDP), and Infrastructure Canada Program – Canada-Quebec Agreement 2000.

Through its programs, the Agency provides financial assistance and easily accessible services based on quality service standards, delivered by advisors working in its 14 business offices: consulting services, information services, and guidance services.

Through its actions, the Agency sets itself a five-year target (2007-2008 to 2011-2012) for the vitality of communities to be maintained or increased. This first strategic outcome is in line with the Government of Canada’s outcome: Strong economic growth.

2.1.1 Program activity: Development of communities

Human resources (FTEs) and Planned spending (in thousands of dollars)1
2009-2010		2010-2011		2011-2012
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
118	138,936	111	134,262	111	136,694

Program activity expected results	Performance indicators	Annual targets (2009 2010)1
Communities are pursuing a development vision and implementing resulting initiatives.	Number of communities that have mobilized, established development or diversification plans and implemented development or diversification initiatives and projects	30
	Number of development initiatives and projects that have been or are being implemented	Ongoing performance measurement
Enterprises are contributing to community economic growth and maintenance.	Proportion of SMEs assisted that maintained or increased their sales	Seven out of 10 SMEs have maintained or increased their sales
	Number of jobs created, number of jobs maintained and number of enterprises maintained	Ongoing performance measurement
Communities are recognized for their distinctiveness, brand image and outreach.	Value of investment in community facilities	$100 million
	Increase in the number of tourists from outside Quebec	Ongoing performance measurement

Note :

¹ The table does not reflect measures announced in Canada’s Economic Action Plan.

Program activity summary

A community’s vitality depends on its ability to use its assets to develop, grow and flourish. The Agency fosters the dynamism of Quebec communities through the maintenance and development of their economic activity base.

The goals targeted by the Development of communities program activity are the following:

• Community mobilization: foster the development of communities and increase their mobilization through development of visions and projects of local and regional scope.
• Local development: assist communities through entrepreneurship support and the creation or maintenance of viable enterprises.
• Attractive communities: increase communities’ capability to attract tourists and skilled individuals.

Planning highlights and benefits for Canadians

This program activity enables Quebec regions and communities to maintain and develop their economic activity base. This is all the more crucial since the period of economic instability is likely to generate a negative impact on communities’ vitality, such as an increase in the number of vulnerable communities, closing down of SMEs of local and regional scope, or a drop in the number of tourists from outside Quebec.

Maintenance or improvement of qualify of life within communities is a pre-condition for creating an environment that enables enterprises and regions to become more competitive. In conjunction with other economic and regional development stakeholders, the Agency intends to support communities so they can reinforce their economic activity base by stimulating the emergence of new entrepreneurs and enterprises, and by attracting and retaining tourists from outside Quebec and a skilled labour force.

The Agency’s intervention in Development of communities is in line with the Accelerate regions’ and communities’ adjustment to the new economic context priority. To pursue this priority, the Agency intends to implement regional plans, placing special emphasis on renewal of the entrepreneurial base and on increasing communities’ attraction capability through their tourist and industrial attractions.

2.1.2 Program activity: Infrastructure

Human resources (FTEs) and Planned spending (in thousands of dollars)1
2009-2010		2010-2011		2011-2012
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
14	45,588	7	768	3	305

Program activity expected results	Performance indicators	Targets1, 2
Rural and urban communities have quality public infrastructure.	Municipalities have quality drinking water available Municipalities benefit from safe transportation infrastructure Maintenance and renewal of assets improve communities’ economic activity base	3,873 households will have access to a municipal water supply 549,744 households will have access to a municipal water supply providing higher quality drinking water 19,063 additional households will have access to a municipal wastewater collection and treatment system 847,788 households will have access to a municipal wastewater collection system providing higher quality treatment 262 municipalities will benefit from the establishment or upgrading of transportation infrastructure

Notes:
¹ The table does not reflect measures announced in Canada’s Economic Action Plan.
² Targets cover all Infrastructure Canada Program project since its inception.

Program activity summary

Quality infrastructure is fundamental to prosperous communities. It attracts enterprises and workers, guarantees efficient movement of goods, or yet contributes to quality of life and a healthy environment. The Government of Canada has created a series of programs to renew and construct public infrastructure. This effort is made in conjunction with the provinces, territories, municipalities, First Nations and the private sector. In Quebec, all programs are implemented in partnership with the Government of Quebec.

The Agency manages the Infrastructure Canada Program in Quebec. Announced in 2000, this program aims to

• enhance the quality of the environment
• support long-term economic growth
• upgrade community infrastructure
• build 21st-century infrastructure through best technologies and practices and new approaches.

To contribute to achieving these goals, ICP funds the restoration, replacement and construction of drinking water, wastewater and local transportation infrastructure, or infrastructure that has an urban or regional economic impact. ICP should terminate in 2009-2010, since all projects accepted under the program have to be completed by March 31, 2010.

Other infrastructure programs follow the ICP. The Agency takes part in their implementation, and Infrastructure Canada is accountable for them. Both announced in 2005, the Municipal Rural Infrastructure Fund pursues the goals of the ICP, while the Canada Strategic Infrastructure Fund is aimed at large-scale infrastructure projects.

Planning highlights and benefits for Canadians

The human resources and planned spending indicated in the table above cover all the Agency’s activities with respect to infrastructure. Since the Agency is accountable only for the ICP, however, this section concerns that program alone. Planning highlights with respect to the other programs can be found in Infrastructure Canada’s Report on Plans and Priorities.

In implementing this program activity, the Agency will increase the number of households that have access to new drinking water and wastewater infrastructure, or to existing infrastructure that provides higher quality drinking water or better wastewater treatment. The Agency will also increase the number of municipalities benefiting from new cultural, sports, local transportation or recreational infrastructure or from the upgrading of such infrastructure.

Since the ICP will be in its final year in 2009-2010, the Agency will provide cumulative data on the program in its corresponding Departmental Performance Report.

2.1.3 Program activity: Special intervention measures

Program activity summary

The Agency does not have funds devoted to this program activity. Special intervention measures come to the assistance of communities and regions facing significant economic shocks or natural disasters. In those situations, in the event of additional dedicated funding from the Government of Canada, the Agency temporarily puts special adjustment measures in place whereby communities can support their economic activity and initiate action to help them regain a balance or find economic stability.

This program activity has two goals:

• Community adjustment to economic shocks: facilitate the definition and implementation of development and diversification opportunities in communities affected by the disappearance of major sources of employment. The Agency assists communities and regions facing major economic shocks.
• Community adjustment to natural disasters: facilitate the adjustment of communities facing natural disasters.

2.2 Strategic outcome #2: Presence of conditions conducive to sustainable growth and the competitive positioning of SMEs and regions

Enterprises and regions operate in a context featuring a strong process of economic integration including, among other things, the increased presence of emerging economies (China, India). Combining with the growing pace of technological progress, this generates multiple opportunities (access to new markets and new ideas) but also brings substantial adjustments (redeployment of workers, new business models). It is through an increase in the competitiveness of SMEs and regions that wealth and employment will be created.

Over the next year, the economic downturn should have a negative impact on the growth and competitive positioning of SMEs and regions. In that context, the Agency will have to continue to work with the other economic development stakeholders to help enterprises and regions become better equipped to negotiate this period of economic instability. The Agency will also have to be innovative in its intervention so as to support enterprises and regions more effectively.

Taking this environment into account, the Agency’s action with respect to competitiveness fosters development of enterprises’ strategic capabilities, networks, innovation and knowledge, and the inflow of investment. This intervention ultimately aims at reinforcing the conditions conducive to sustainable growth and the competitive positioning of regions and SMEs.

The Agency achieves this strategic outcome through the following components:

• Competitiveness of enterprises – by helping enterprises improve their performance, become more competitive and engage in more innovation to facilitate their sustainable growth.
• Competitive positioning of sectors and regions – through the development of clusters, transfer of technology and research outcomes to enterprises and creation of conditions conducive to attracting foreign investment and international organizations.

Of these components, the Agency intends to focus its efforts on Competitiveness of enterprises.

The Agency has grant and contribution programs to achieve this strategic outcome, namely: Business and Regional Growth and the Canadian Apparel and Textile Industries Program (CATIP– CANtex component).

Through its programs, the Agency offers financial assistance as well as consulting services, information services and guidance services provided by its advisors in the 14 business offices.

Through its action, the Agency sets itself a five-year target (2007-2008 to 2011-2012) for the competitiveness of SMEs assisted and the regions to be maintained or increased. This second strategic outcome contributes to attainment of the Government of Canada’s outcome: Strong economic growth.

2.2.1 Program activity: Competitiveness of enterprises

Human resources (FTEs) and Planned spending (in thousands of dollars)1
2009-2010		2010-2011		2011-2012
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
53	71,961	50	74,260	50	74,260

Program activity expected results	Performance indicators	Annual targets (2009-2010)1
Assisted enterprises are using their strategic capabilities.	Proportion of SMEs assisted having maintained or increased their sales	Seven out of 10 SMEs have maintained or increased their sales
	Number of enterprises which have improved their value chain management or integrated a value chain	140
	Average increase in foreign sales	Ongoing performance measurement
Products and services derived from R&D are being commercialized.	Average increase in sales of products and services deriving from R&D	Ongoing performance measurement
New enterprises and strategic capital investments are consolidating the economic base of the regions.	Number of innovative enterprises created or expanding	Ongoing performance measurement
	Number of jobs created	Ongoing performance measurement

Note:
¹ The table does not reflect measures announced in Canada’s Economic Action Plan.

Program activity summary

This program activity enables enterprises to improve their performance and become more competitive by increasing their productivity, revenue earned and job levels, thus contributing to creating conditions conducive to sustainable growth.

To support the competitive of enterprises, the Agency has two goals:

• development of enterprises’ capabilities – by improving capabilities with respect to management, innovation, adoption of advanced technology, market development, and integration with globalized production chains; and by encouraging support for organizations dedicated to improving enterprises’ strategic capabilities in order to enhance SMEs’ performance and contribute to their adjustment
• support for strategic enterprises – by supporting the establishment and first phases of expansion of enterprises in economic activities deemed strategic for a region’s development so as to consolidate its economic base.

Planning highlights and benefits for Canadians

To help Quebec SMEs and regions negotiate the period of turbulence generated by the global economic downturn, the Agency will have to continue to support intervention that enables enterprises to improve their productivity. The Agency will use the tools available to it to help enterprises improve their performance and increase their competitive capability with respect to a highly competitive market.

The Agency’s intervention with respect to Competitiveness of enterprises is directly in line with the Reinforce the performance of innovative, competitive SMEs program priority. To pursue this priority, the Agency intends to implement regional plans, paying special attention to development of enterprises’ capabilities (management, innovation, adoption of advanced technology and integration with value chains) and startup of innovative SMEs.

2.2.2 Program activity: Competitive positioning of sectors and regions

Human resources (FTEs) and Planned spending (in thousands of dollars)1
2009-2010		2010-2011		2011-2012
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
36	22,842	33	12,038	33	12,038

Program activity expected results	Performance indicators	Annual targets (2009 2010)1
Competitiveness poles are being developed and consolidated. Clusters or networks of enterprises in the same sector or region are better structured. The innovation commercialization process is generating medium-and long-range social and economic spinoffs.	Number of enterprises networked or taking part in networks	Ongoing performance measurement
	Average investment in applied research projects	Ongoing performance measurement
	Number of technology transfers	Ongoing performance measurement
	Number of spinoff enterprises	Ongoing performance measurement
Competitive regions are attracting direct foreign investment and international organizations.	Jobs created and maintained in Quebec as a result of foreign direct investment	Ongoing performance measurement
	Number of international organizations established in Montréal	Ongoing performance measurement

Note:
¹ The table does not reflect measures announced in Canada’s Economic Action Plan.

Program activity summary

This program activity aims to improve regions’ international competitiveness by enhancing their knowledge and competitive advantages on the international stage.

The two goals targeted by this program activity are:

• Development of regional competitiveness poles and national- and international-calibre poles of excellence. To achieve this, the Agency supports innovation and networking of knowledge players; development of a critical mass of knowledge in sectors and regions; and technology enhancement and transfer.
• Enhancement of the international competitiveness of Quebec regions. To achieve this, the Agency supports the integrated promotion of locational factors, attraction of foreign direct investment and reinvestment by foreign firms already established in Quebec.

Planning highlights and benefits for Canadians

This program activity aims primarily to develop and consolidate competitiveness poles by fostering alliances among enterprises in the same sector. With the global economic downturn, it will be all the more important to encourage enterprises to work together and form alliances that will help them get through it more effectively.

The Agency’s intervention with respect to this program activity contributes to the regions becoming more competitive and to the poles helping enhance Canada’s competitive positioning.

2.3 Strategic outcome #3: Policies, programs and cooperative actions that strengthen the economy of Quebec regions

Under its Act, the Agency draws up policies and programs to promote the development and diversification of the economy of Quebec regions by fostering cooperation and complementarity with Quebec and communities in Quebec.

Through this strategic outcome, the Agency analyses the needs of Quebec regions and communities in relation to regional economic development, and aims to cater to those needs by drawing up policies, programs and initiatives, and through representation and collaborative activities, while ensuring alignment with Government of Canada priorities.

In particular:

• The Agency helps development stakeholders make enlightened decisions by conducting and disseminating analyses and research on regional development trends, challenges and issues.
• The Agency improves its policies, programs and initiatives through the integration of best practices and emerging approaches in regional economic development.
• The Agency moves forward the issues of Quebec’s regions through representation and influence activities so that Government of Canada decisions with an impact on regional economic development are more closely geared to the realities of the regions, including the identification of opportunities for enterprises.
• The Agency ensures sound management of public funds by collaborating with other government agencies working in economic development.

With the implementation of its third priority in 2009-2010, the Agency will have a grant and contribution program to achieve this strategic outcome, in the form of the Regional Development Research program. This strategic outcome contributes to attainment of the Government of Canada’s outcome: Strong economic growth.

2.3.1 Program activity: Policies, programs and initiatives

Human resources (FTEs) and Planned spending (in thousands of dollars)
2009-2010		2010-2011		2011-2012
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
48	5,689	44	5,324	44	5,324

Program activity expected results	Performance indicator	Performance indicator
Quebec communities and regions benefit from adapted, consistent and effective federal action (policies, programs and initiatives) that generates socio-economic spinoffs, and Quebec communities and regions can grasp development opportunities.	Extent to which policy analysis and research projects are helpful	Production and dissemination of knowledge on regional development issues, problems and best practices

Program activity summary

This program activity gives Quebec regions and communities the opportunity to benefit from federal action which, in particular, helps create and disseminate knowledge with respect to economic and regional development that is helpful for development stakeholders, and grasp business and development opportunities.

Four goals support this program activity:

• Analysis and research: help development stakeholders have overarching facts and data available to them to enlighten their reflection and facilitate their decision-making with respect to development trends, challenges and issues.
• Policies and programs: meet the needs of Quebec communities and regions by drawing up strategic directions, programs, initiatives, policies and guidelines that are adapted and timely.
• Representation and influence: ensure that the realities of Quebec regions and communities are taken into account in the government’s directions and programs, and enable them to grasp more effectively such business and development opportunities as may stem from national initiatives. This translates, for instance, into access to Canada-wide funds and programs and industrial and regional spinoffs from large-scale government projects, including National Defence contracts.
• Cooperation and collaboration: give Quebec regions and communities the opportunity to take advantage of coherent, effective, concerted action when issues, needs or opportunities arise that can benefit from federal collaboration or cooperation with non-federal agencies, or when such collaboration is necessary or beneficial for the Agency or the government.

Planning highlights and benefits for Canadians

The significant results obtained in 2007-2008 (Performance Report) were proof positive of the importance of consolidating the contribution of Quebec communities and regions to Canada-wide economic growth. The growth outlook for the global economy has since deteriorated substantially. In that context, Quebec’s enterprises and communities will be directly hit by the world economic downturn, and especially by declining export demand and the credit crunch.

Bearing in mind the numerous challenges arising from the current economic context and building on the attainment of the goals targeted by this program activity, the Agency gives priority to reinforcing the foundations for future prosperity. To that end, the Agency’s plan in the short term is to reinforce capabilities to prepare the future. The goal is to generate and disseminate knowledge on regional development issues, problems and best practices. Exploring themes associated with current Agency programming will make it possible to share knowledge in order to create collaboration among decision-makers, experts and economic development organizations. In a medium-term perspective, the plan also calls for development of strategies geared to specific, area-related challenges while paying particular attention to the development of policies to increase innovation capability, facilitate globalization and stimulate SMEs’ investment. Beyond these new avenues, the Agency will continue to work in collaboration with its federal partners to see through the policies and initiatives that are in line with its mandate.

Thus, the Agency will be in a position to guide and equip Quebec’s regions, enterprises and communities more effectively to address the new challenges and issues of the current economic context while preparing them for future prosperity.

2.4 Program activity: Internal Services

This program activity supports the achievement of all the Agency’s strategic outcomes.

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other obligations of an organization. For the Agency, these groups are:

• Governance and Management Support
• Resource Management Services
• Asset Management Services.

Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Financial resources (in thousands of dollars)			Human resources (FTEs) (full-time equivalent)
2009-2010	2010-2011	2011-2012	2009-2010	2010-2011	2011-2012
20,376	19,037	18,911	142	133	132

2.5 Performance measurement strategy

The performance measurement strategy applied at the Agency is based on the systematic observation of outcome indicators identified in its 2007 performance measurement framework. These indicators will be used to conduct ongoing measurement of targeted outcomes and provide material for the Agency’s strategic decision-making during Fiscal Year 2009-2010. Among the indicators that will be tracked are both output (activity) indicators and outcome indicators.

Owing to their nature, anticipated outcomes will occur over a relatively long period of up to five years. Most will not be observable in the year in which disbursement is made. For instance, it is often only after two years that an enterprise’s expected increase in sales fully materializes following an investment carried out with Agency assistance. That is why the Agency’s performance measurement strategy is spread over a five-year horizon and why the yearly performance measurement reports will, in the initial years, be limited to outputs, immediate outcomes and intermediate outcomes

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