ARCHIVED - Western Economic Diversification Canada

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Section II – Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome: The western Canadian economy is developed and diversified

WD's programs encourage business development, innovation and community economic development, and are supported by the department's leadership and coordination role in furthering western interests and responding to western challenges.

WD works to improve the long-term economic competitiveness of the West and the quality of life of its citizens by supporting a wide range of initiatives aiming to increase western firms' competitiveness, create employment opportunities and ensure prosperity for its citizens and communities over the long term. Furthermore, the department aims to stimulate economic activity, increase the business productivity and competitiveness of western firms, reduce the region's dependence on primary industries, and encourage investments in innovation.

WD will track its contribution against the following performance indicators. These indicators are:

Strategic Outcome Expected Results	Performance Indicators	Targets
The western Canadian economy is developed and diversified	Real gross domestic product (GDP) growth in Western Canada	3% (stable growth rate)
	Labour productivity growth in Western Canada, as measured by year-over-year change in real GDP per hour worked	1.2% (stable growth rate)
	Primary production as a % of GDP	14% (continuation of downward trend)
	Research & Development (R&D) intensity: gross domestic expenditures on R&D (GERD) as % of GDP	1.3%  (stable growth rate)

The department's four program activities and management related program activity (Internal Services) support the achievement of its strategic outcome. Specifically, they are:

1. Business Development: strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace.
2. Innovation: a stronger knowledge-based economy.
3. Community Economic Development: communities have increased economic opportunities and capacity to respond to challenges, as well as the necessary investments in public infrastructure.
4. Policy, Advocacy and Coordination: policies and programs that strengthen the western Canadian economy.
5. Internal Services: effective and efficient support for the delivery of the organizational strategic outcome.

In addition to these areas, WD was given the responsibility of delivering Canada's Economic Action Plan initiatives on behalf of the Government of Canada. A more detailed explanation of these initiatives is found in section 2.1.5.

2.1.1 Program Activity: Business Development

Program Activity: Business Development

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
6513	39,157	78	42,575	78	42,575

Program Activity Expected Results	Performance Indicators	Targets
Strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace	SME revenue (all SME sizes) (excluding non-employee)	$322M (stable level of revenue)
	SME employment (all SME sizes) (excluding non-employee)	2.5M (stable employment level)
	Annual international trade: value of exports excluding primary production sectors	$47B

Program Activity Summary:

WD works with western Canadian businesses, industry and research organizations to support initiatives to enhance business productivity and competitiveness; to increase the penetration of western Canadian technologies, services and value-added products into international markets; and to improve access to capital. Through this program activity, WD partners with other stakeholders, such as the provincial governments, to provide business programs and services to entrepreneurs and SMEs.

WD will implement this program activity through the following sub-activities:

• Improved business productivity
• Market and trade development
• Industry collaboration
• Foreign direct investment
• Access to capital

Planning Highlights:

WD plans to undertake the following activities in 2010-2011:

• Invest in business development projects in conjunction with business associations and organizations, as well as encourage and enable industry-led solutions to productivity challenges.
• Support international business development and investment promotion projects.
• Advance western Canada's advocacy, trade and investment, and science and technology interests in the United States and Mexico through the North American Platform Program.
• Enable western Canadian aerospace and defence companies to access federal procurement and industrial regional benefits opportunities through initiatives such as supplier development tours.
• Make strategic investments in infrastructure and collaborative projects, and promote value-added opportunities related to Western Canada's trade gateways and corridors.
• Deliver entrepreneurship programs and services through the Western Canada Business Service Network in both rural and urban areas within Western Canada, including continuing to increase the availability of risk capital to SMEs affected by the global decline in access to credit.

Benefits for Canadians:

Small businesses are a key driver of the western Canadian economy, accounting for a greater percentage of the employment in the West as compared to the rest of Canada. Ongoing support for the creation and expansion of SMEs will be important during the economic recovery in order to contribute to job creation and maintenance in Western Canada.

Productivity growth is considered to be the most important source of long-term economic growth and the only way to increase the long-term material standard of living of Canadians. Consequently, businesses that expand to foreign markets create jobs and enhance their competitiveness and productivity.

2.1.2 Program Activity: Innovation

Program Activity: Innovation

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
54	59,455	54	49,207	54	49,207

Program Activity Expected Results	Performance Indicators	Targets
A stronger knowledge-based economy	Total income from the commercialization of intellectual property	$28.14M (stable growth rate)
	Business expenditure on research and development (R&D) as % of total employment	0.55% (stable growth rate)
	Employment in natural and applied science and related occupations as a % of total employment	7.0% (modest increase)

Program Activity Summary:

Innovation is the process of translating knowledge into new products and services, or improving on existing products and services for economic and social benefit.  Successful innovation starts with a new idea and moves through the research and development stage into a ready-for-market product.  The innovation process is not linear, but involves a web of interconnected activities and actors that is called an innovation system.  WD works with universities, research institutes, other federal departments, provincial governments, and industry associations to strengthen the western Canadian innovation system.

WD will implement this program activity through the following sub-activities:

• Technology Adoption and Commercialization
• Technology Linkages
• Technology Research and Development
• Community Innovation
• Technology Skills Development
• Knowledge Infrastructure

Planning Highlights:

WD plans to undertake the following activities in 2010-2011:

• Continue to support capacity building that enables the facilitation of technology commercialization and bringing products to markets. Potential approaches include getting technologies to the marketplace through demonstration, first use, or unsolicited proposals. This support will enable firms to prove their products in the marketplace, penetrate domestic and international markets, and facilitate firms in attracting scarce venture capital.
• Create effective linkages among players in the innovation system in order to facilitate the commercialization of technologies into new products and services.
• Explore approaches to improve the performance of firms in getting technologies to the marketplace.
• Invest in equipment and infrastructure to support industry and build sector capacity.

Benefit to Canadians:

WD invests in innovation because it is internationally recognized as a key driver of competitiveness and prosperity. Innovation is also the foundation of a diversified, knowledge-based economy, which is core to WD's mandate. The importance of innovation is reflected in the many international, federal and provincial innovation strategies that focus on technology commercialization, applied research and development (R&D), and highly qualified personnel.

2.1.3 Program Activity: Community Economic Development

Program Activity: Community Economic Development

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
76	58,031	73	54,206	73	41,269

Program Activity Expected Results	Performance Indicators	Targets
Communities have increased economic opportunities and capacity to respond to challenges, as well as the necessary investments in public infrastructure	Employment: number of new jobs created	39,000 (growth at a slower rate)
	Net migration rate (international and domestic)	95,000 (stable net migration)
	Percentage of key informants with the opinion that WD delivery of infrastructure programs resulted in investments that reflect western Canadian infrastructure priorities	50%

Program Activity Summary:

This program activity involves economic development and diversification initiatives that support both rural and urban communities to sustain their economies as well as adjust to changing and challenging economic circumstances. It includes facilitating economic recovery and public infrastructure investments in Western Canada to meet the Government of Canada's commitment to strong economic growth and improving the standard of living of all Canadians.  Furthermore, it ensures that economic, social and environmental considerations are taken into account in initiatives designed to foster community growth. The activities include community-based consultations or facilitation and planning. The program activity strives to integrate federal programs, services and horizontal initiatives directed towards western Canadian communities.

WD will implement this program activity through the following sub-activities:

• Community Planning
• Community Development
• Community Economic Adjustment
• Community Infrastructure

Planning Highlights:

WD plans to undertake the following activities in 2010-2011:

• Support projects in rural areas to help communities diversify and strengthen their economies.
• Invest in initiatives that enhance Aboriginal participation in the economy.
• Continue to deliver, monitor and evaluate the Community Economic Diversification Initiative and Airport Improvements Initiative components of the federal mountain pine beetle response in British Columbia on behalf of the federal government.
• Support Community Futures organizations and Francophone Economic Development Organizations to provide community planning and development services to rural and Official Language Minority Communities.
• Continued work with Infrastructure Canada to improve the delivery of national infrastructure programs such as the Infrastructure Canada Program, Municipal Rural Infrastructure Fund, Canada Strategic Infrastructure Fund and Building Canada Fund.

In addition to these highlights, WD is responsible for delivering a number of Canada's Economic Action Plan (CEAP) initiatives in Western Canada. While these programs are being delivered under the Community Economic Development program activity, more specifically under the Community Economic Adjustment sub-activity, a detailed explanation of these initiatives and WD's planned CEAP activities can be found in section 2.1.5.

Benefits for Canadians:

This program activity contributes to the development of strong and economically vibrant communities that in turn, contribute to strong, economic growth for Canada. Through WD's investments, both rural and urban communities will have increased opportunity and capacity to respond to economic challenges.

Investment into Canada's infrastructure system will result in a stronger economy, a cleaner environment, and better communities, while addressing local and regional infrastructure needs.

2.1.4 Program Activity: Policy, Advocacy and Coordination

Program Activity: Policy, Advocacy and Coordination

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
60	8,873	60	8,879	60	8,879

Program Activity Expected Results	Performance Indicators	Targets
Policies and programs that strengthen the western Canadian economy	Percentage of key informants with the opinion that WD activities provide policies and programs that support the economic development of Western Canada	90%
	Percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets	85%

Program Activity Summary:

WD's activities under this program activity promote the development and diversification of the economy of Western Canada; and advance the interests of Western Canada in national economic policy, program and project development and implementation. This includes supporting policy research and consultation in order to better understand issues facing the West, leading federal and intergovernmental collaboration to pursue key opportunities and strategic investments for long-term growth and diversification in areas of federal or shared federal-provincial jurisdiction, and improving the targeting of investments through policy development related to the design and delivery of WD programming. The expected result of the program activity is that federal policies and programs are responsive and strategic; focused on addressing the West's economic development and diversification challenges; and maximize economic opportunities for the region.

WD will implement this program activity through the following sub-activities:

• Collaboration and Coordination
• Research and Analysis
• Advocacy

 

 

Planning Highlights:

WD plans to undertake the following activities in 2010-2011:

• Work with western provincial Deputy Ministers responsible for economic development and innovation to identify opportunities and challenges across the West, continuing to lead or participate in western-based fora such as the Regional Federal Councils, the Senior Officials Forum on Innovation, and regional trade teams.
• Continue WD's partnerships with the four western provinces through agreements such as the Western Economic Partnership Agreements and other joint federal-provincial arrangements to identify and support significant investments in projects that support federal and provincial priorities.
• Undertake informed advocacy on policy issues relevant to Western Canada, including key areas such as industrial regional benefits related to federal procurement, enhanced value from gateways and corridors, and strengthened trade and investment opportunity.
• Support research that assists in the development of policy options for Western Canada, which will in turn improve the West's competitiveness in the global economy.

Benefits for Canadians:

Through this program activity, WD engages stakeholders, utilizes information and resources in a coordinated manner to pursue opportunities, and represents western interests (and challenges) in federal decision-making. This helps to ensure that national priorities, policies, programs, and procurements are regionally sensitive and reflective of western economic priorities.

2.1.5 Program Activity: Canada's Economic Action Plan

Program Activity: Canada's Economic Action Plan

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
88	245,022	-	-	-	-

Program Activity Expected Results	Performance Indicators	Targets
Successful community adjustment to mitigate economic crises	Number of jobs created or maintained (CAF)	3,048
	Number of public-private partnerships (CAF)	28
	Number of businesses created, maintained or expanded (CAF)	250
	Number of participants trained (CAF)	846
	Number of new and improved local infrastructure elements (RInC)	922
	Number of jobs created or maintained (RInC)	2,024
	Total infrastructure funding expended (federal, provincial, municipal and private – as a proxy for local economic stimulus) (RInC)	$258.6M

Planning Summary:

Under Canada's Economic Action Plan in Budget 2009, WD was tasked with delivering the Community Adjustment Fund (CAF) and the Recreational Infrastructure Canada (RInC) program in Western Canada to provide timely, targeted and temporary economic stimulus to communities.

CAF focuses on creating employment opportunities and supporting adjustment measures in communities impacted by the global economic downturn. The initiative is focused on helping to create and/or maintain short-term employment opportunities that support rural and single-industry communities.  The RInC program provides support for timely, targeted, and temporary economic stimulus for local communities by increasing the total amount of construction activity. Both programs leverage funds from the provinces, territories and other funding partners. WD funding is delivered over the 2009-2010 and 2010-2011 fiscal years. Implementation of these programs is also incremental to existing resources and will result in substantial increases in WD's programming activities.

As part of the CEAP, WD is also administering the Building Canada Fund – Communities Component to accelerate the construction of community projects throughout Western Canada. In addition, the department received $3.9M annually for the renewal of the Canada Business Network, which provides small businesses with information on government services, programs and compliance requirements. WD partners with all four provincial governments to fund and manage the four Canada Business Networks in Western Canada.

Activities under the CEAP area are categorized under the Community Economic Development program activity of the department's Program Activity Architecture.

Planning Highlights:

To achieve the intended outcomes, WD will continue to deliver CAF and RInC throughout Western Canada.   All approved projects must be materially completed by March 31, 2011. Planning highlights are as follows:

• Commit remaining funds to eligible projects.
• Ensure sound management and stewardship of programming to ensure funds are fully utilized by the end of 2010-2011.
• Ensure approved projects are meeting timelines and performance indicators are reported in a timely and accurate manner.
• Work with clients to maximize the impact and results of investments and ensuring effective communication of these results to the public.

Benefits for Canadians: 

WD's investments in CAF and RInC will create new jobs and maintain employment for affected workers and contribute to more viable communities. In addition, investments will provide a legacy of longer-term economic and/or ecological benefits including renewed recreational infrastructure in western Canadian communities.

2.1.6 Program Activity: Internal Services

Program Activity: Internal Services

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
131	18,420	131	18,239	131	18,239

The Internal Services program activity supports all other program activities and the department's strategic outcome.

Program Activity Summary and Planning Highlights:

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization (e.g. corporate planning, program management, internal audit, and evaluation). These groups are: management and oversight services; communications services; legal services; human resources management services; financial management services; information management services; information technology services; real property services; materiel services; acquisition services; and travel and other administrative services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

WD will implement this program activity through the following sub-activities:

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

 

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