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Section 2 – Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome - A Competitive Atlantic Canadian Economy

Performance indicator:	Five-year Target: (2008-2009 through 2012-2013))
Increase in Atlantic GDP for every dollar of ACOA expenditure in direct support of business (under review)	$4.50
Performance measurement strategy: Measuring the impact on income and employment in Atlantic Canada is a long term, multi-dimensional undertaking. Accordingly, the Agency will report results every five years, based on analysis of data from Statistics Canada and internal systems, using econometric modelling. This performance indicator is under review and may be adjusted at a later date.

ACOA aims to achieve a competitive Atlantic economy for the long-term benefit of Atlantic Canadians. A competitive region will produce higher levels of income for its citizens, and will grow faster over the medium to long run. A competitive Atlantic Canadian economy increases opportunities for economic development in the region, specifically through the growth of earned incomes and employment opportunities for Atlantic Canadians.

Competitiveness depends on the set of institutions, policies, and factors that determine the capacity of firms to sell their products globally. Productivity is an important determinant of competitiveness, and according to the Organisation for Economic Co-operation and Development (OECD), productivity is the most important source of long-term prosperity for a region. Productivity, defined as the efficiency with which resources are used in the economy, is a key measure of how well small and medium-sized enterprises (SMEs) in Atlantic Canada are performing when compared to those in other regions of the country and elsewhere around the world. Competitiveness and productivity are critical factors that allow companies and communities to adapt to changing market conditions.

Consequently, ACOA focuses its efforts on improving competitiveness in four key areas: productivity, innovation, international trade, and delivering on Canada's Economic Action Plan. To increase the performance of Atlantic SMEs, the Agency targets key productivity drivers, including innovation, the acquisition of technology and equipment, business skills development, and access to capital for firms and communities. ACOA also focuses on trade and investment to increase export capabilities and encourage international trade, and plays a strategic role in supporting community infrastructure required for economic development. By focusing on the four key areas of competitiveness, the Agency, along with its many partners, is able to link its regional economic development priorities to its goal of a competitive Atlantic economy.

[D]

The three program activities – Enterprise Development, Community Development, and Policy, Advocacy and Coordination – combine to address the Agency's strategic outcome of a competitive Atlantic economy. By emphasizing productivity, the Agency's various activities and programs are directed at helping Atlantic Canada prosper and compete on a global scale.

2.1.1 Program Activity: Enterprise Development

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A competitive Atlantic Canadian economy (1.0)	Enterprise Development (1.1)	Innovation (1.1.1)
		Entrepreneurship and Business Skills Development (1.1.2)
		Trade (1.1.3)
		Investment (1.1.4)
		Financing Continuum (1.1.5)

Expected results: Improved growth and competitiveness of Atlantic SMEs
Performance indicator:	Annual Target: (2010-2011)
Survival rate of ACOA-assisted firms	1.5 times higher than comparable firms
Performance measurement strategy: Analysis of data from Statistics Canada and internal systems data. The analysis is carried out by comparing ACOA clients to comparable firms ― those that are of similar age, size, sector and geographic region, but have not received a direct monetary contribution from the Agency. The analysis is used to determine the five-year survival rate of businesses starting up over a ten-year period (e.g. 1998 through 2007). Survival rates are calculated annually by tracking firm births (businesses newly identified in the Longitudinal Employment Analysis Program of Statistics Canada) and deaths (businesses no longer identified).

Financial Resources ($ millions)				Human Resources (FTEs)
2010-2011	2011-2012	2012-2013		2010-2011	2011-2012	2012-2013
174.3[7]	161.3	161.4		214	214	214

Program Activity Summary

ACOA works in partnership with Atlantic Canadian enterprises, stakeholders, industry and institutions to improve the growth and productivity of Atlantic Canada's economy, leading to increased competitiveness, earned incomes and job creation.

Through sustained efforts in innovation, entrepreneurship and business skills development, as well as in trade and investment, the Enterprise Development objective is to work with SMEs throughout their business life cycle by providing pre-start-up advice, assisting them to start, expand or modernize, or to establish and expand their export activities; partnering with universities and other institutions to increase the region's research and development capacity, commercialization and productivity; and promoting and participating in the region's transition to a knowledge economy.

Planning Highlights

In 2010-2011 the Agency will continue to use its resources and programs to maintain its focus on improving the productivity of Atlantic Canadian companies. In the presence of a strong Canadian dollar and intense global competition, the Agency will continue implementing initiatives that improve the commercialization potential of technologies developed in Atlantic Canada.

In the areas of trade and investment, ACOA's efforts will be aligned with Canada's Global Commerce Strategy to increase exports and to attract foreign direct investment. Furthermore, the Agency will continue to encourage technology commercialization, and to promote Atlantic Canada as an exceptional business partner. The Agency will also undertake several projects in support of Canada's Atlantic Gateway, the Americas Strategy, and the India Initiative, in an effort to capitalize to a greater extent on strategic foreign markets and exploit a selection of markets where Atlantic Canada can succeed. For instance, launched by the Atlantic Gateway initiative, economic opportunities in Indian and South Asian markets will be expanded further by the Agency through sectors such as digital media, food processing, life sciences, education, and alternative/clean energy.

Other areas such as research and development, acquiring advanced technologies, and investing in the development of business skills and entrepreneurship will continue to be actively promoted and supported. Particular focus will be placed on facilitating business growth and productivity to ensure Atlantic Canadian SMEs are able to fully participate in the global supply chains.

The Agency will work to implement recommendations from the recent impact evaluation of the program sub-activity Innovation, which focused on reviewing the approach to cluster development; further developing its commercialization strategy; building on the effectiveness of its current innovation strategy and supporting activities; and reviewing the effectiveness and efficiency of its processes.

Finally, renewal of the suite of enterprise development programs will be undertaken in support of the Agency's long-term strategic direction to ensure that the repositioning is in accordance with the priorities of the Government of Canada.

Benefits for Canadians

Results provided through the recent evaluation of the Innovation program sub-activity demonstrated that ACOA has been successful in investing in R&D, enhancing productivity and commercialization capacity, and fostering partnerships and collaborative arrangements. Collectively, activities undertaken in each of these key areas are helping to strengthen innovation and commercialization capacity in Atlantic Canada. In addition, through the support of the AIF and the BDP (including the Productivity and Business Skills Initiative), the ACOA Innovation program sub-activity is considered to be effective and providing value for money.

Furthermore, ACOA strives to apply its limited resources to areas that offer the greatest potential impacts. Given its mandate, the Agency focuses on Atlantic enterprises that are of small and medium size because they have the most significant and sustained impact on jobs in Atlantic Canada[8]. By adopting a balanced rural/urban approach in helping SMEs to become more innovative, productive and competitive, the Agency assists all regions of Atlantic Canada to become stronger, thereby facilitating their increased contributions to the national economy.

Canada's Economic Action Plan Initiatives

•Canada Business

Budget 2009 provided $30 million over two years for the renewal of the national Canada Business program. Of this amount, ACOA receives $2.6 million annually to deliver this program in the Atlantic provinces.

Expected results: Access for Atlantic Canadians to accurate, timely and relevant business information
Performance indicator:	Two-year Target: (2009-2010 through 2010-2011)
Level of client satisfaction	80%
Performance measurement strategy: Undertake analysis of data from client surveys, Canada Business national client survey, and internal database systems/reports. Being able to proceed with a survey of Canada Business clients to determine satisfaction levels is contingent upon approval to conduct public opinion research.

Financial Resources ($ millions)
2009-2010	2010-2011
2.6	2.6

To reduce the complexity of dealing with various levels of government, Canada Business provides information on government services, programs, regulations and resources for business through a website, walk-in centres, and by phone. Fiscal year 2010-2011 will see further implementation of a revised service strategy involving enhancements to phone services, as well as an enhanced emphasis on outreach and awareness of services.

2.1.2 Program Activity: Community Development

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A competitive Atlantic Canadian economy (1.0)	Community Development (1.2)	Community Mobilization (1.2.1)
		Community-based Business Development (1.2.2)
		Community Investment (1.2.3)
		Infrastructure Programming (1.2.4)

Expected results: Dynamic and sustainable communities for Atlantic Canada
Performance indicator:	Annual Target: (2010-2011)
Increased capacity in community decision making, planning and delivery	Evidence of impact, resulting from evaluations, and supported by data
Number of new business start-ups that have received funding from CBDCs	766
Number of businesses that have received funding from CBDCs to stabilize or expand operations	876
Performance measurement strategy: Analysis of CBDC report data, internal systems data, and evaluation reports, when available.

Financial Resources ($ millions)				Human Resources (FTEs)
2010-2011	2011-2012	2012-2013		2010-2011	2011-2012	2012-2013
160.4[9]	89.3	87.2		93	93	93

Program Activity Summary

The Atlantic economy is built on the region's many geographic, linguistic and cultural communities. From small remote villages to larger urban centres, the opportunities and challenges vary significantly. ACOA recognizes the importance of these communities in an economic development framework, and supports their efforts to assume full responsibility for their own economic development. The Agency believes that effective community development is a bottom-up process, and that many communities require help to develop the tools, resources and initiatives that support individual and unique strategic development. This kind of development requires a flexible approach, based on the particular realities of the communities being targeted. Working in close co-operation with communities and community-led organizations involved in economic development planning and mobilization efforts, ACOA provides strategic funding that enables communities to strengthen their economic base and increase prosperity for their citizens. The Agency continues to focus efforts on promoting the vitality of official language minority communities and Aboriginal communities.
 
ACOA uses its various programs, in particular the Business Development Program, Innovative Communities Fund, and the Community Futures Program, to stimulate economic development at the community level. In addition, the Agency works with other federal departments (such as Infrastructure Canada) and provincial governments to ensure the flow of federal funds allocated to each region through the various federal and provincial infrastructure funding streams. These programs serve to provide significant economic stimulus, while at the same time ensuring the maintenance of quality public infrastructure and services, which are essential building blocks to the future economic well-being of communities. These investments are key in laying a foundation for addressing the region's productivity and competitiveness issues.

Planning Highlights

Significant efforts will be made in the delivery of Canada's Economic Action Plan initiatives such as the Community Adjustment Fund (CAF) and Recreational Infrastructure Canada (RInC). ACOA will work closely with federal and provincial partners, as well as with municipalities, to ensure that infrastructure investments deliver maximum benefits to the region in a timely fashion. (Additional details are provided later in this subsection under the title Canada's Economic Action Plan Initiatives.)

In 2010-2011, ACOA will continue to develop strategies that support opportunities benefitting the region's rural and urban areas by investing in initiatives that provide value for investment, while at the same time addressing local, community-based priorities. ACOA will accomplish this by working directly with communities, as well as through a network of community development organizations.

The Agency will focus its investment on sustainable, high-quality projects through strategic use of resources and expertise, and rigorous management of projects. The Agency also plans to act on improvements suggested in evaluations and audits to develop and implement new approaches with the Regional Economic Development Organizations (REDOs), including performance-based models and increased engagement with key community development stakeholder groups.

ACOA will continue its work with the 41 Community Business Development Corporations (CBDCs) across Atlantic Canada that provide important access to capital to small businesses in rural communities. Success will be measured through the number of CBDC investments to start up new businesses or stabilize or expand operations of existing businesses.

The renewal of ACOA's community development program activities will be implemented in a manner that is consistent with Government of Canada priorities and responds to the emerging opportunities of urban and rural communities in the region.
 
Benefits for Canadians

Atlantic Canada remains one of the most rural regions in Canada, with more than 40% of its population located in rural communities. The region did not escape the impacts of the worldwide economic downturn that began in late 2008 – including tightened lending conditions. Through ACOA's programs and networks, which include rural community development organizations, small and medium-sized businesses are able to access capital and adjust to the changing economy and thereby retain jobs that would have otherwise been at risk. ACOA is well positioned to implement the stimulus funding programs established in Canada's Economic Action Plan. Through these efforts, Atlantic businesses, as well as communities, will be better equipped to recover from the downturn.

Recently completed independent evaluations[10] of ACOA's community development programming confirm that this type of assistance not only helps small businesses grow and prosper in rural communities, but also directly contributes to the capacity and readiness of communities to develop and carry out further community economic development initiatives. In Atlantic Canadian rural communities, traditional sources of funding are limited, and these outcomes would not be achievable in the absence of ACOA programming. These evaluations also conclude that this programming is relevant to the needs of communities across the region, and continues to be well-aligned with government-wide priorities. ACOA believes that, through its community-based initiatives, it is providing appropriate and targeted responses to the unique and challenging economic circumstances throughout Atlantic Canada.

Canada's Economic Action Plan Initiatives

As indicated above, ACOA will continue to be the region's primary instrument for delivering the federal economic development measures under Canada's Economic Action Plan as announced in Budget 2009, through CAF and RInC. The following two subsections provide additional information on the financial resources invested, as well as the performance objectives for both stimulus programs.[11]

In an effort to avoid duplication and ensure consistency, ACOA will rely on the national estimates of job creation produced by the Department of Finance. This will be further supported by examples of job creation provided by ACOA clients that receive funding under Canada's Economic Action Plan programs.

• Community Adjustment Fund

Expected results: Projects will result in viable and more diversified communities, as evidenced by a greater degree of integrated community-based decision making, improved strategic community infrastructure, improved skills in the community and improved access to the skills needed in the community, strengthened community, and sustained partnerships after the projects.
Performance indicator:	Two-year Target: (2009-2010 through 2010-2011)
Number of projects and initiatives generated	150
Dollar value of investments created in enterprises or communities	$260 million
Enterprises created, maintained, or expanded	12
Performance measurement strategy: Analysis of data collected from internal systems and other client and project tracking systems.

Financial Resources ($ millions)
2009-2010	2010-2011
50.3	50.1

Budget 2009 recognized that communities across Canada were suffering as a result of an economic downturn, and provided $1 billion over two years to establish the Community Adjustment Fund (CAF) to provide economic stimulus to mitigate the short-term impacts of the economic downturn by creating employment opportunities and to address transitional and adjustment challenges in restructuring communities. CAF is aligned with ACOA's Community Development Program activity, and is tied to the expected result of improved capacity to address economic and business development needs and opportunities. ACOA anticipates investing over $98 million during the two-year program's lifespan.

• Recreational Infrastructure Canada

Expected results: Timely, targeted, and temporary stimulus to the Canadian economy, and mitigation of the impacts of the global economic recession, by increasing the total amount of construction activity related to recreational infrastructure.
Performance indicator:	Two-year Target: (2009-2010 through 2010-2011)
Demonstrated linkages between projects and economic opportunities	Evidence of impact through examples provided by clients
Dollars leveraged on federal investments	2:1 (every dollar invested by RInC will leverage two dollars)
Number of projects successfully completed	200
Performance measurement strategy: Analysis of data collected from internal systems, client progress reports and anecdotal information from client interviews.

Financial Resources ($ millions)
2009-2010	2010-2011
10.4	24.3

Another initiative under the Economic Action Plan, Recreational Infrastructure Canada (RInC), provides $500 million nationally for projects to rehabilitate recreational facilities across Canada, which must be completed by March 31, 2011. Through RInC, the Government of Canada has committed over two years to support upgrades and repairs of existing recreational assets, including new construction that adds to or replaces existing recreational infrastructure asset or capacity. This national initiative is expected to provide a timely, targeted, and temporary stimulus to the Canadian economy, and help mitigate the impacts of the global economic recession, by increasing the total amount of construction activity related to recreational infrastructure. ACOA anticipates investing $34 million through RInC and leveraging another $68 million from other funding partners.

2.1.3 Program Activity: Policy, Advocacy and Coordination

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A competitive Atlantic Canadian economy (1.0)	Policy, Advocacy and Coordination (1.3)	Policy (1.3.1)
		Advocacy (1.3.2)
		Coordination (1.3.3)

Expected results: Policies and programs that strengthen the Atlantic economy
Performance indicator:	Annual Target: (2010-2011)
Atlantic regional economic policies and programs that respond to regional development opportunities	Continued government support to Agency priorities, collaboration with other federal departments, and engagement with other partners in Atlantic Canada in areas that will contribute to increasing the competitiveness of Atlantic Canada's economy
Performance measurement strategy: Analysis of information from ACOA's Policy Network and key informant surveys, evaluations and qualitative reviews, as well as indicators from the federal budget, Speech from the Throne, and decisions by central agencies.

Financial Resources ($ millions)				Human Resources (FTEs)
2010-2011	2011-2012	2012-2013		2010-2011	2011-2012	2012-2013
11.5	11.5	11.4		91	91	91

Program Activity Summary

ACOA's Policy, Advocacy and Coordination (PAC) program activity is central to identifying and effectively responding to opportunities and challenges facing the regional economy. PAC provides intelligence, analysis and well-grounded advice on a broad range of issues and topics, and informs and supports decision making by the Agency and the minister. PAC helps carry the Agency's agenda forward, and ensures that ACOA remains relevant and responsive to the opportunities and challenges facing Atlantic Canada. PAC offers strategic, researched policy positions that reflect the region's potential; influences national policies and programs that affect Atlantic Canada's development and interests; and coordinates other policies and programs within the region to form integrated approaches to development.

Planning Highlights

During the upcoming year, ACOA will work to ensure that government initiatives are responsive to the challenges and opportunities of the Atlantic Canadian economy. The Agency will continue its PAC procurement advocacy efforts that, over the past five years, have helped secure over $1.5 billion in industrial and regional benefit commitments for Atlantic Canadian firms, and have helped contribute to a strong and thriving aerospace and defence industry in the region. ACOA will also advocate for the interests of Atlantic Canada in other key horizontal or sectoral files to make government initiatives more responsive to the needs of Atlantic Canadians. The Agency will also focus its efforts on key issues reflecting both Atlantic Canadian priorities and the federal agenda, so that Atlantic regional economic policies and programs respond to regional development opportunities.

Analysis, coordination and advocacy support to better align the productivity and competitiveness priorities of the Agency will remain a top priority in 2010-2011. ACOA will continue its work to ensure programs and activities are responsive and relevant to national priorities, while emphasizing the Agency's critical role in delivering the federal agenda in Atlantic Canada.

The Agency will continue in 2010-2011 to lead the coordination and integration of Atlantic Gateway activities across federal departments, provincial governments, private sector partners, gateway councils, and other stakeholders in the region.

Under the direction and leadership of the ACOA Energy Team/Atlantic Canada Energy Office, the Atlantic Energy Gateway initiative will aim to facilitate development of the Atlantic renewable energy sector by fostering collaboration, common understanding, and communication among governments, and between governments and the private sector, to maximize and expedite the development of renewable energy resources in the region.

Efforts will also continue toward ACOA program renewal by providing analytical and policy support to the Agency's implementation of renewed priorities.

Benefits for Canadians

The PAC program activity assists the Agency in aligning itself with federal government priorities. PAC efforts in areas relating to the Atlantic Gateway, human capital development, urban and rural issues, the competitiveness of businesses, and the overall economic expansion of the region will benefit Atlantic Canadians, as well as the country as a whole. Through PAC, ACOA continues its collaborative efforts with other government partners and various stakeholders to ensure the Agency has an approach that corresponds to opportunities and challenges facing businesses and communities in the region.

In 2010-2011 ACOA's PAC program activity will assist the region in facing challenges affecting Atlantic Canada's overall economic vitality. Demographic trends and an uncertain economic environment will be key factors as ACOA works with its partners to move forward on initiatives related to promoting Atlantic Canada as a business destination, the attraction of new businesses, and the undertaking of new research.

2.1.4 Program Activity: Internal Services

Financial Resources ($ millions)				Human Resources (FTEs)
2010-2011	2011-2012	2012-2013		2010-2011	2011-2012	2012-2013
36.0	36.0	36.0		313	313	313

Program Activity Summary

Internal Services are groups of related activities and resources that support the needs of programs and other corporate obligations of an organization. These groups are management and oversight services, communications, legal services, human resources management, financial management, information management, information technology, real property services, materiel services, acquisitions, and travel and other administrative services. Internal Services includes only those activities and resources that apply across an organization, and not those provided specifically to a program.

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