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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 $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 the analysis of data from Statistics Canada and internal systems, using econometric modelling.

ACOA aims to achieve a competitive Atlantic economy for the long-term benefit of Atlantic Canadians. A competitive region produces higher levels of income for its citizens and grows faster over the medium to long term. 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. A result of such activity is increased tax revenue, which benefits all levels of government.

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 four key areas to improve competitiveness:

  1. Enhancing the productivity capacity of Atlantic Canadian businesses – 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.
  2. Innovation – Building on its successes, ACOA continues to engage stakeholders and develop partnerships to increase innovation capacity within Atlantic Canada and facilitate the commercialization of research.  
  3. International business development – ACOA provides leadership in helping Atlantic Canadian businesses and communities to succeed in a global marketplace.
  4. Infrastructure support – The Agency plays a strategic role in supporting community infrastructure required for economic development.

ACOA works with businesses and communities to help them position themselves for the opportunities of the future. By focusing on these 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.

Flow chart depicting the process by which ACOA and other federal and provincial department activities ultimately lead to economic prosperity.

[D]

Three of the Agency’s 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 Enterprise Development 
  • Innovation
  • Entrepreneurship and Business Skills Development
  • International Business Development
  • Financing Continuum


Expected results: Improved growth and competitiveness of Atlantic SMEs
Performance indicator Annual target (2011-2012)
Survival rate of ACOA-assisted firms 1.3 times higher than comparable firms
Performance measurement strategy: Analysis of data from Statistics Canada and internal systems. 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)
2011-2012 2012-2013 2013-2014 2011-2012 2012-2013 2013-2014
170.2 178.4 179.0 214 214 214
Program Activity Summary

Notwithstanding recent overall economic progress, some significant challenges remain and great opportunities exist for development. One of the most telling indicators of this is that, in a number of sectors, productivity remains significantly lower than in leading countries and other regions of Canada. ACOA will work 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.

ACOA works to improve the region’s capacity for economic growth through a variety of strategically focused mechanisms: assisting enterprises, particularly small and medium-sized ones, to help them start, expand or modernize their businesses, and establish and expand 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-based economy.

Planning Highlights

In 2011-2012, the Agency will continue to use its resources and programs to maintain its focus on improving the productivity and competitiveness of Atlantic Canadian companies. In the presence of a strong Canadian dollar and intense global competition, the Agency will continue to implement initiatives that improve innovation and the commercialization potential of technologies developed in Atlantic Canada. 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. ACOA will continue to focus on facilitating business growth and productivity to ensure Atlantic Canadian SMEs are able to fully participate in the region’s economy.

In the area of international business development, 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. For instance, ACOA will undertake projects to identify and nurture Atlantic Canada’s more promising sectors, while at the same time assessing Atlantic Canada’s trade potential in emerging economies, including the BRIC countries (Brazil, Russia, India and China). As opportunities are identified, the Agency will support projects that propose innovative strategies to international business development, such as workforce mobility, the expanded use of e-commerce and technology, and “out-of-the-box” thinking to access distribution channels, with the goal of maximizing the benefits for Atlantic Canada.

The Agency will implement recommendations from the recent impact evaluations conducted on Enterprise Development program sub-activities. Under Entrepreneurship and Business Skills Development (EBSD)15, it will renew its EBSD strategy and build on the effectiveness of its current activities and stakeholder relationships. It will also continue to implement recommendations from the impact evaluation of the Innovation program sub-activity16, including advancing the development of a regional commercialization strategy as well as renewing its strategy to guide regional innovation activities. As a result of the Financing Continuum (FC) evaluation,17 ACOA will clarify its approach to developing investor readiness among SMEs. The scope of the FC program sub-activity will be revisited to better reflect the Agency’s current priorities and expectations of the program sub-activity. Finally, the Agency will address recommendations from the Trade and Investment evaluation18 by merging Trade and Investment into one program sub-activity, named International Business Development (IBD), by permanently integrating the Atlantic Trade and Investment Partnership into the regular budget, by folding the International Business Development Program into the Business Development Program and by streamlining performance indicators.

Benefits for Canadians

In 2010-2011, four Enterprise Development program sub-activities underwent impact evaluations. The evaluation of the EBSD program sub-activity demonstrated that ACOA has been successful in building interest in entrepreneurship as a viable career option and in enhancing the business skills or capacity of entrepreneurs to establish, maintain and/or grow their businesses. Collectively, activities undertaken in each of these key areas enhance the capacity of institutions, and other stakeholders, to support business-skills development in the region. Delivering EBSD programming through third-party organizations with enhanced reach and expertise was recognized as an efficient practice.

The evaluation of the FC program sub-activity concluded that the Agency’s assistance addressed the financing gap experienced by Atlantic SMEs. This assistance enabled SME projects to proceed, thereby helping them achieve significant growth in sales and improvements in productivity.

ACOA evaluated the Trade and Investment program sub-activities together, and the evaluation confirmed the need, relevance of and positive impact of trade and investment on the Atlantic Canadian economy. The efficiency issues raised through the evaluation have been addressed by the Agency, which took steps to improve planning and coordination.

ACOA strives to apply its limited resources to areas that offer the greatest potential impact. 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.19 By adopting a strategic 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.

 

2.1.2 Program Activity: Community Development


STRATEGIC OUTCOME PROGRAM ACTIVITY PROGRAM SUB-ACTIVITY
A competitive Atlantic Canadian economy Community Development
  • Community Mobilization
  • Community-based Business Development
  • Community Investment
  • Infrastructure Programming

Expected result:  Dynamic and sustainable communities for Atlantic Canada
Performance indicator Annual target (2011-2012)
Increased capacity in community decision making, planning and delivery Evidence of impact resulting from evaluations, and supported by data20
Impact of ACOA projects on Community Development in Atlantic Canada as demonstrated by qualitative reviews 70% of projects successful in achieving intended objectives
Growth in sales of CBDC-assisted clients versus comparable firms A baseline is to be established in collaboration with other regional development agencies
Performance measurement strategy: Analysis of CBDC report data, internal systems data, Statistics Canada data and evaluation reports, when available.

Financial Resources21
($ millions)
Human Resources
(FTEs)
2011-2012 2012-2013 2013-2014 2011-2012 2012-2013 2013-2014
100.4 90.2 88.1 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. Communities are the foundation of economic development and are critical for economic prosperity. The Agency recognizes the importance of these communities in an economic development framework and supports their efforts to develop the resources they need to assume full responsibility for their own economic development. For those reasons, ACOA focuses targeted efforts and strategies toward community development and also aims to provide and maintain quality public infrastructure.

ACOA works in co-operation with other levels of government, other federal government departments, non-governmental organizations, and community groups to lever support, coordinate economic development, react to economic challenges and, finally, work with Infrastructure Canada and the provinces to oversee/ensure the flow of federal funds allocated to each region through the various infrastructure funding streams. This requires a flexible, holistic approach based on the realities of a given community’s capacities, strengths and challenges. Community development is a bottom-up process that helps to develop the tools, resources and initiatives that support individual and unique strategic development.

Planning Highlights

In 2011-2012, ACOA will continue to develop strategies that support opportunities benefiting 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. The Agency will accomplish this by working directly with communities as well as through a network of community development organizations.

ACOA uses its various programs, in particular the Business Development Program (BDP), the Innovative Communities Fund (ICF), and the Community Futures (CF) program, to stimulate economic development at the community level. The Agency will also ensure clients meet the extended deadline of October 31, 2011, for the completion of projects under the Recreational Infrastructure Canada program and the Building Canada Fund – Communities Component Top-Up.

The Agency will continue to focus on investment in sustainable high-quality projects through strategic use of resources intended to improve productivity and competitiveness of Atlantic communities and SMEs. The Agency also plans to act on improvements suggested in an evaluation22 to develop and implement new approaches with the Regional Economic Development Organizations (REDOs), including performance-based models and increased engagement with key community development stakeholders.

ACOA will continue its work with the 41 Community Business Development Corporations (CBDCs) across Atlantic Canada to increase access to capital for small businesses in rural communities. Success will be measured through the number of CBDC investments in Atlantic-based businesses as well as through the number that participate in training and business counselling.

The Agency continues to work with Official Language Minority Communities and Aboriginal communities to identify investments that will stimulate transformative change and support strategic development.

The Agency will pursue its role in delivering infrastructure funding under the Building Canada Fund – Communities Component in collaboration with Infrastructure Canada and the provincial governments in the most efficient way possible.

Benefits for Canadians

Atlantic Canada remains one of the most rural regions in Canada, with more than 40% of its population located in rural communities23. 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, thereby becoming better equipped to recover from the impacts of the worldwide economic downturn that began in late 2008 – including tightened lending conditions.

Recently completed evaluations of ACOA’s community development programming, covering the CF24 and ICF25 programs, confirm that this type of assistance helps small businesses grow and prosper in rural communities. The Atlantic provinces generally have lower participation rates, higher unemployment rates and lower worker earnings than Canadian averages, which suggests an ongoing need for these programs. In Atlantic Canadian rural communities, traditional sources of funding are limited, and these outcomes would not be achievable in the absence of ACOA programming. The evaluations also conclude that the 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

ACOA will continue to be the region’s primary instrument for delivering federal economic development measures under Canada’s Economic Action Plan as announced in Budget 2009. The Community Adjustment Fund sunsets March 31, 2011, but the Recreational Infrastructure Canada (RInC) program has been extended to October 31, 2011.

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 data will be further supported by examples of job creation provided by ACOA clients who receive funding under Canada’s Economic Action Plan programs.

Recreational Infrastructure Canada

Expected result:  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 October 31, 2011)
Demonstrated linkages between projects and economic opportunities Evidence of impact through examples provided by clients
Dollars leveraged on federal investments 2:1 (every $1.00 invested through RInC will leverage $2.00)
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.

RInC provides $500 million nationally for projects to rehabilitate recreational facilities across Canada, all of which must be completed by October 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 assets or capacity. This national initiative is expected to provide a timely, targeted and temporary stimulus to the Canadian economy and to 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 funding partners.

2.1.3 Program Activity: Policy, Advocacy and Coordination


STRATEGIC OUTCOME PROGRAM ACTIVITY PROGRAM SUB-ACTIVITY
A competitive Atlantic Canadian economy Policy, Advocacy and Coordination
  • Policy
  • Advocacy
  • Coordination

Expected result:  Policies and programs that strengthen the Atlantic economy.
Performance indicator Annual target (2011-2012)
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 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, the Speech from the Throne and decisions by central agencies.

Financial Resources
($ millions)
Human Resources
(FTEs)
2011-2012 2012-2013 2013-2014 2011-2012 2012-2013 2013-2014
11.4 11.4 11.4 91 91 91
Program Activity Summary

The Agency’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. In offering strategic, researched policy positions that reflect the region’s potential, to influencing national policies and programs that affect Atlantic Canada’s development and interests, and in coordinating other policies and programs within the region to form integrated approaches to development, PAC helps carry the Agency’s agenda forward and helps ensure that ACOA as a whole remains relevant and responsive to the opportunities and challenges in Atlantic Canada.

Planning Highlights

In 2011-2012, ACOA will focus its efforts on key issues reflecting both Atlantic Canadian priorities and the federal agenda so that federal government initiatives and Atlantic regional economic policies and programs respond to the challenges and opportunities facing the Atlantic region. ACOA will continue to advocate for the interests of Atlantic Canada in areas such as energy and the environment, science and technology, resource industries, and population and immigration. The Agency’s procurement advocacy efforts will work to secure ongoing industrial and regional benefit commitments for Atlantic Canadian firms that have contributed to the region’s aerospace and defence industry.

Analysis, coordination and advocacy support for the Agency’s key activities will continue to ensure that ACOA’s programs and activities are responsive and relevant to both national priorities and the needs of Atlantic Canadians. The Agency will work to advance innovation leading to commercialization in Atlantic Canada by ensuring that federal policies and programs take into account the challenges and potential of the region and by revitalizing its own innovation and commercialization strategies.

The PAC program activity will also provide policy support and direction as the Agency renews its entrepreneurship and business skills development strategy. Research and analysis will help identify opportunities for community development and more effective approaches to local economic development, and will support international business development by exploring what Atlantic businesses need to know to better connect to global value chains. The Agency will also develop a coordinated research agenda, which will increase collaboration within the Agency and provide strategic research to support sound decision making.

The Agency will continue to play a critical role in delivering the federal agenda in Atlantic Canada, with ACOA’s regional offices providing research and analysis as well as on-the-ground policy and program coordination. The PAC program activity will also provide policy support during the implementation of program adjustments stemming from the Agency’s Strategic Review.

Theme I: Addressing Climate Change and Air Quality  The Agency, in co-operation with Transport Canada, will continue 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 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 the private sector to maximize and expedite the development of renewable energy resources in the region.
Benefits for Canadians

The PAC program activity assists the Agency in aligning itself with federal government priorities and ensuring that government initiatives are responsive to the challenges and opportunities of the Atlantic Canadian economy. ACOA’s efforts in areas relating to the Atlantic Gateway, human capital and skills development, urban and rural issues, innovation and commercialization and the competitiveness and productivity of the region benefit Atlantic Canadians as well as the country as a whole. ACOA continues its collaborative efforts with other government partners and various stakeholders and engages with policy thinkers on the international stage to ensure the Agency’s programs and services address opportunities and challenges facing businesses and communities in the region.

The Agency’s Atlantic Policy Research Initiative (APRI), ACOA’s primary policy research and engagement funding program, was recently evaluated26. The evaluation concluded that there is a demonstrated need for research activities conducted under the program; the program plays a significant role in meeting policy research and engagement responsibilities identified by the Government of Canada; and the program supports the Agency’s activities in terms of policy decision and direction.

In 2011-2012, ACOA’s PAC program activity will assist the region in facing challenges affecting Atlantic Canada’s overall economic vitality. Demographic trends and recovery from the economic crisis will continue to be key factors as ACOA works with its partners on initiatives to increase innovation and the commercialization of research and new technologies, promote entrepreneurship and business development, and facilitate Atlantic Canada’s success in the global marketplace.

2.1.4 Program Activity: Internal Services


Financial Resources
($ millions)
Human Resources
(FTEs)
2011-2012 2012-2013 2013-2014 2011-2012 2012-2013 2013-2014
35.9 35.9 35.9 313 313 313

Internal Services are groups of related activities and resources administered to 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 services; information technology; materiel services; acquisition services; and travel and other administrative services. Internal Services includes only those activities and resources that apply across the entire organization and not to those provided specifically to support a program.

The priority for Internal Services will be to focus on the four management priorities as described in section 1.4.1 Contribution of Priorities to Strategic Outcome. They are Public Service Renewal, efficiency, management information, and values and ethics.

Another strong focus area will be the continued implementation of the Treasury Board of Canada Secretariat Policy on Internal Control. The Agency will test and validate the effectiveness of its key internal controls and make any adjustments required.

Theme IV: Shrinking the Environmental Footprint – Beginning with Government  ACOA is a participant in the Federal Sustainable Development Strategy and contributes to Theme IV: Shrinking the Environmental Footprint – Beginning with Government, and to other areas related to Greening Government Operations (GGO) through the Internal Services program activity. The department contributes to the following GGO target areas:
  • electronic waste
  • printing units
  • paper
  • green meetings
  • green procurement

For additional details on ACOAs activities, please see the supplementary information table titled Greening Government Operations on the website of the Treasury Board of Canada Secretariat.