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Canada’s New Government is committed to fostering a strong, competitive economy that benefits Canada and all Canadians. To achieve this goal, I firmly believe that our government must create an environment that encourages and rewards people who work hard, that stimulates innovation, and that avoids unnecessary regulatory burden. By modernizing and improving Canada’s marketplace frameworks, we will ensure stability and fairness while creating new opportunities and choices for businesses, consumers and all Canadians.
Over the past year, our government has taken significant steps to improve Canada’s economy. Early in our mandate we presented Budget 2006, which contained measures aimed at improving our quality of life by building a strong economy that is equipped to lead in the 21st century. These measures focused on making Canada’s tax system more competitive internationally, and outlined our commitments to reduce paper burden on businesses and to continue to support science and technology in Canada.
Last fall, we presented a long-term economic plan in the Economic and Fiscal Update. Advantage Canada: Building a Strong Economy for Canadians focused on creating five Canadian advantages that will give incentives for people and businesses to excel and to make Canada a world leader.
The Industry Portfolio consists of :
[1] Federal Crown corporations do not prepare Reports on Plans and Priorities. |
One of these proposed advantages, called the “Tax Advantage,” will create conditions more favourable to business in Canada by effectively establishing the lowest tax rate on new business investment in the G7. As well, the “Entrepreneurial Advantage” will ease the regulatory and paperwork burden imposed on business by ensuring that regulations meet their intended goals at the least possible cost.
Through Advantage Canada, our government committed to supporting science and technology in Canada, and underscored some of the elements of a science and technology strategy that will sustain research excellence in Canada and increase the competitiveness of the Canadian economy.
Canada’s New Government has repeatedly demonstrated that we are committed to getting things done for all Canadians. As we move forward, we will work more closely than ever with our stakeholders and the provincial and territorial governments, and we will continue to foster an environment where the marketplace functions as efficiently as possible, and keep encouraging investment in Canadian innovation and in research and development.
It gives me great pleasure to present the annual Report on Plans and Priorities for the Natural Sciences and Engineering Research Council of Canada, outlining its main initiatives, priorities, and expected outcomes for the upcoming year.
Maxime Bernier
Minister of Industry
NSERC works to make Canada a country of discoverers and innovators for the benefit of all Canadians. To achieve this, we invest in people, discovery and innovation in Canadian universities and colleges. |
2007-2008
|
2008-2009
|
2009-2010
|
$899.8
|
$899.3
|
$890.3
|
319 FTE1
|
319 FTE
|
319 FTE
|
Name
|
Type
|
1. Develop tomorrow’s discoverers and innovators |
Ongoing
|
2. Build on Canada’s strength in discovery |
Ongoing
|
3. Seize emerging research opportunities |
Ongoing
|
4. Realize the benefits of university research |
Ongoing
|
Expected Results |
Planned Spending2
($ millions) |
Supports Priority # | |||
2007-2008 | 2008-2009 | 2009-2010 | |||
Strategic Outcome #1: People Highly skilled science and engineering research professionals in Canada |
|||||
1.1 Promote Science and Engineering | Student interest in research in the sciences, math and engineering is encouraged |
$4.1
|
$4.1
|
$4.1
|
1
|
1.2 Support Students and Fellows | A supply of highly qualified Canadians with leading-edge scientific and research skills for Canadian industry, government and universities |
$136.4
|
$134.6
|
$130.3
|
1
|
1.3 Attract and Retain Faculty | Enhanced research capacity in science and engineering |
$167.8
|
$167.9
|
$167.9
|
1, 2
|
Strategic Outcome #2: Discovery High quality Canadian-based competitive research in the NSE |
|||||
2.1 Fund Basic Research | The discovery, innovation and training capability of university researchers in the NSE is enhanced |
$403.6
|
$403.2
|
$398.5
|
1, 2, 3
|
2.2 Fund Research in Strategic Areas | Research and training in targeted and emerging areas of national importance is accelerated |
$57.7
|
$59.7
|
$59.7
|
1, 2, 3, 4
|
Strategic Outcome #3: Innovation Productive use of new knowledge in the NSE in Canada |
|||||
3.1 Fund University-Industry-Government Partnerships | Mutually beneficial collaborations between the private sector and researchers in universities, resulting in industrial or economic benefits to Canada |
$115
|
$114.4
|
$114.4
|
4
|
3.2 Support Commercialization | The transfer of knowledge and technology from Canadian universities and colleges to the user sector is facilitated |
$15.2
|
$15.4
|
$15.4
|
4
|
TOTAL |
$899.8
|
$899.3
|
$890.3
|
2Includes costs for admnistration of NSERC programs totalling $40.8 million in 2007-08.
NSERC aims to maximize the value of public investments and to advance prosperity and quality of life in Canada by supporting the creation and transfer of knowledge in the natural sciences and engineering (NSE) and by ensuring that people are trained to discover, develop and use that knowledge. NSERC has a track record of success demonstrated by sound investments reinforced by a rigorous peer review process.
NSERC is the primary federal agency investing in postsecondary research and training in the natural sciences and engineering (NSE).Through its grants and scholarships programs, NSERC:
Virtually all aspects of modern social and economic life are affected by advances in the natural sciences and engineering. The benefits of discovery, skilled people and innovation are the foundation on which to build national prosperity, adding value to goods and services as well as developing the skilled people that are able to conduct research, generate new knowledge, access knowledge created elsewhere, and adopt and adapt new technologies for businesses.
Wealth is created by adding value in goods and services that are sold in world markets. Knowledge, created through investments in R&D, is the basis for adding value. This is well understood worldwide by both established and emerging economies. Countries like China and India have increased their R&D expenditures as a percentage of GDP by 37% and 50% respectively since 2000 and have set ambitious targets to increase them even more in the coming years. In the global, knowledge-based economy, Canada faces growing competition from both established and emerging economies with excellent educational systems and a large and skilled workforce. Beyond our traditional competitors among the G8, smaller economies such as Finland, Denmark, Israel and Sweden have surpassed Canada in research intensity5. These smaller economies are largely knowledge-based and focused on maintaining global leadership in key economic sectors.
Currently, Canada’s expenditures in R&D as a percentage of GDP (1.99) are lower than the OECD average (2.26). Canada ranks at or near the top however in terms of the proportion spent in the higher education sector, including the proportion that is provided by business (8.3% vs. 6.1% OECD average)6. These figures reflect the importance of a strong academic sector to the country; without it, our companies would lose a crucial source of knowledge and skilled people.
These realities are reflected in the Government of Canada’s high-level outcome areas within the whole of government framework. Specifically, under the economic affairs cluster, a key Government of Canada outcome is an innovative and knowledge-based economy (see Departmental Links to Government of Canada Outcomes). As described above, NSERC is a key instrument in managing federal investments in higher-education R&D in support of business productivity and Canada’s prosperity in a global knowledge-based economy.
As a result of the significant federal investments made since 1997, many of which are managed by NSERC, Canada’s S&T environment has been revitalized. World-class researchers are being recruited to Canadian universities7, state-of-the-art research equipment and infrastructure are being installed and used, while many important new research projects have been launched. The momentum in Canada’s research, training and innovation capacity has allowed the nation to perform above its class in international benchmarks of knowledge production and impact. Canadian students are highly sought after on the international scene and widely considered to be very well trained. Canadian researchers are welcome partners and strong contributors in international research projects8. There has been strong growth in the last six years in the commercialization outputs of university research9, 10. NSERC has also seen strong growth in the number of companies investing in its partnership programs. Currently, more than $45M/year is invested by Canadian industry in the Collaborative Research and Development Program alone. Companies contribute $1.50 for every dollar awarded by NSERC to their university partners.
The Granting Council Review announced in Budget 2006 examined a number of issues including governance, performance measurement and results, value for money (in particular, ensuring the excellence of funded research), relationships with government, and cross-agency coordination and alignment. NSERC provided extensive input to the review and will work with Industry Canada and NSERC’s Council to determine what further actions will be undertaken.
The anticipated federal science and technology strategy, which was also announced in Budget 2006, is expected to address research and development activities undertaken in the private sector and in universities and, therefore, may include recommendations that relate to NSERC’s mandate and activities.
In 2007-08, NSERC will fund research, training and innovation to support four critical priorities:
3Observatoire des Sciences et des Technologies |
4Statistics Canada and NSERC Departmental Performance Report, 2004-05, pages 23-24 (http://www.tbs-sct.gc.ca/rma/dpr1/04-05/NSERC-CRSNG/NSERC-CRSNGd45-eng.asp) |
5OECD Main Science and Technology Indicators, November 2005 |
6OECD Main Science and Technology Indicators, November 2005 |
7For example, 359 researchers have been attracted from abroad to take up a Canada Research Chair (http://www.chairs.gc.ca/web/about/publications-eng.asp) |
8For example, the Neptune project in the field of oceanography (http://www.neptunecanada.ca/) is a joint Canada-USA initiative and the network on ultra-fast laser science led by Japan (http://www.jsps.go.jp/english/core_to_core/outline.html). |
9Statistics Canada |
10AUTM 2004 Canadian Licensing Survey (http://www.autm.net/surveys/dsp.surveyDetail.cfm?pid=28) |
NSERC will continue to support the development of new researchers in the NSE and, increasingly, the development of HQP for a highly educated workforce with experience in meeting the technology needs of industry and business. NSERC will also continue to support research to improve the ability of educators at the primary and secondary levels to help youth develop an interest in science and mathematics.
Canada needs a workforce which is both highly educated, and skilled in the natural sciences and engineering for it to compete in the knowledge economy. Such people are trained in university laboratories and classrooms by our scientists and engineers, using NSERC’s scholarship and training programs and research support. Qualified science and engineering graduates represent the most important mode of transfer of scientific and technical knowledge from academia to the user sector.
Canada ranks low in terms of the percentage of the 30-34 year old population holding a doctoral degree in the NSE11. The gap with the U.S. at the master’s and doctoral levels was noted in the recent report of the Institute for Competitiveness and Prosperity as a factor that negatively affects Canadian productivity12. Given our relatively small population base and the increased reliance on human talent for economic development, Canada needs to ensure that every individual has the opportunity to develop to his/her full potential.
In supporting this priority in the future, the following needs will be taken into consideration:
11National Science Foundation and OECD |
12Institute for Competitiveness and Prosperity, Rebalancing Priorities for Canada’s Prosperity, March 2006 |
13People and Excellence: The Heart of Successful Commercialization, April 2006 (http://strategis.ic.gc.ca/epic/internet/inepc-gdc.nsf/en/tq00068e.html) |
NSERC is one of many players contributing to the education and training of these highly qualified people; its critical role lies in supporting the development of the next generation of research professors as well as industrial and government scientists and engineers. The following management priorities are aligned to NSERC’s program priority to train the next generation of NSE knowledge professionals in Canada:
NSERC will continue to provide stable multi-year support for Canadian professors’ research programs to ensure Canadian universities can attract and retain excellent researchers and maintain advanced research laboratories and facilities. This will result in the creation of knowledge, a capacity to access discoveries made around the world and a highly educated workforce.
Countries around the world are recognizing the importance of a strong base of research excellence and a highly educated workforce for prosperity and sustainable development in today’s world. There are numerous examples, including the United States, based on its National Academies’ report “Rising above the Gathering Storm”14, and Germany15, which has recently reviewed its science policy. Both these countries (and many others such as Japan) plan to put increased emphasis, and investment, in basic research and nurturing excellence in science.
The number of scientists and engineers active in research has been growing rapidly since 1998. This is great news for Canada as it means our research capacity is building. In the most recent Discovery Grants competition, NSERC received funding applications from more than 924 first-time applicants. Across all Discovery Grant holders, 30% have received their first grant in the period since 2002 and will be seeking funding renewals in the years ahead. These well-qualified researchers need research funding from NSERC to be able to contribute to the creation of new knowledge and discoveries, and to help educate the next generation of scientists and engineers.
Some of the factors that underpin this priority include the following:
14http://www.nap.edu/catalog/11463.html |
15Science, Vol. 313 14 July 2006 . |
16http://www.sno.phy.queensu.ca/, http://www.lightsource.ca/, http://www.neptunecanada.ca/ |
In order to build on Canada’s strength in discovery, the following actions will be taken.
17Including $133.2 million in funding for the tri-agency Canada Research Chairs program. |
NSERC will continue to identify promising research opportunities and rapidly expand support for research, training and innovation in areas where Canada has the potential to be a world leader.
The fields of scientific and engineering research are undergoing dramatic renewal. Increasingly, dynamic research partnerships, reaching across disciplinary and national boundaries, combine talents and experience in ways that allow insights and breakthroughs to flourish.
With the rapid pace of such new scientific breakthroughs, a number of countries, e.g. Ireland (development of a successful software industry), Singapore (gaining world-class expertise in the biomedical sciences) and Britain, pursue a selective strategy aimed at focusing efforts on a few areas where they can achieve leadership and impact. Canada too must compete globally, but it is clear that we cannot be research and business leaders in all sectors. With substantial input from the Leaders’ Roundtable on Commercialization, in April 2006 the Conference Board released a report entitled, “Picking a Pathway to Prosperity: A Strategy for Global-Best Commerce.” The report advocates for building upon Canada’s broad base of research excellence, setting priorities and targeting some of our resources on areas where Canada has the potential to achieve maximum impact and global-best status. This Roundtable of more than fifty industry leaders, university presidents and deputy ministers argue that choosing priority niches is the most important element of a strategy to compete successfully in the global economy.
NSERC is already targeting major investments toward strategic opportunities in order to more rapidly expand research, training, and innovation in emerging strategic areas. Our capacity to compete at the world scale rests on our ability to form strong strategic partnerships, both at home and internationally so as to integrate research expertise and resources for increased benefits and maximum impact. The investment of significant funds will enable Canadian researchers to seize the research opportunities that will lead to a greater impact for their work and enable Canada to play a major role in subsequent innovation.
NSERC estimates indicate that it allocates approximately 60% of its total funding toward research activities within the four clusters of Canadian S&T strength that were identified in the Council of Canadian Academies’ recent study. In June 2006 , the Council was asked by the Government of Canada, via Industry Canada, to explore Canada’s strengths in Science and Technology (S&T). Their report, The State of Science and Technology in Canada,18 helps to set the context for the government’s consideration of S&T policy. The report identifies the following four clusters of S&T strength in Canada: natural resources; information and communication technology; health and related life-sciences and technologies, and environmental sciences and technology.
18The complete report is available online at: http://www.scienceadvice.ca/documents/Complete%20Report.pdf. |
The following initiatives support this program priority:
The following management priorities for 2007-08 will help NSERC achieve its objective of identifying and funding new research opportunities as they become apparent:
NSERC will increase the impact of research and training on Canadian industries’ competitiveness and accelerate the translation of research results into commercially successful innovations.
NSERC’s partnership programs have a proven record of increasing collaboration between the academic, industrial and government sectors, and provide a full spectrum of support for students from the undergraduate to the postdoctoral level to gain industry-based research training. Through such collaborations, industry is able to access knowledge, ideas and technologies, as well as specialist expertise that can lead to the development of new products, processes and services. Industry also gains access to students, which often leads to hiring new staff with the most advanced skills and knowledge. In short, such collaborations result in greater productivity. University researchers, in turn, address issues of interest to industry, develop new research directions and are often able to use these experiences to develop more relevant curricula for the benefit of future students. Students and fellows involved in these programs develop important professional skills and are often hired by the supporting company once the project is completed. With experienced staff and an excellent record of accountability in the effective use of public funds, NSERC is well-positioned to actively promote research, training and innovation with relevance to, and in partnership with, Canadian businesses and industries.
The following considerations and analysis underpin NSERC’s actions to realize the benefits of university research:
19This program is being undertaken as a partnership between NSERC, the Association of Canadian Community Colleges and the Canadian Manufacturers and Exporters. |
NSERC will continue to support a broad spectrum of activities that include targeted research, strategic networks, university-industry collaborative projects, technology transfer and capacity building for the mobilization of intellectual property. In 2007-08, the following management priorities will help Canada realize the benefits of federal investments in research, training and innovation: