Canada's Innovation Budget
Canada's Innovation Budget
The Liberals want to spend their way out of Canada's current
economic doldrums, similar to the position taken by the US following the Great
Recession. Following the 2008 economic crash, the US signed into law the
"American Recovery and Reinvestment Act of 2009" also known as the
Stimulus. Many economists credit stimulus spending with the prevention of
further economic deterioration.
The US unemployment rate currently sits at 4.9%. In contrast, Canada languishes
at around 7.3%. So, maybe public sector spending to offset private sector
decline is the way to go. Only time will tell whether or not Keynesian
macroeconomic theory bears fruit this side of the border.
So, with the passage of the 2016 Federal Budget, the Liberals are drastically
increasing spending, leading to a proposed $29 billion deficit. Included is
increased support in the area of innovation. A budget summary, released March
22, 2016, contains a section titled "Building a More Innovative Canada". The
link is at the bottom of this post.
The summary does not refer to Scientific Research & Experimental
Development (SR&ED) in particular, however, the following is an outline of
key funding and proposals in related areas:
1. Budget 2016 proposes to provide up to $2 billion over
three years, starting in 2016-17, for a new Post-Secondary Institutions
Strategic Investment Fund, a time-limited initiative that will support up to 50
per cent of the eligible costs of infrastructure projects at post-secondary
institutions and affiliated research and commercialization organizations, in
collaboration with provinces and territories.
2. Budget 2016 proposes to provide an additional $95 million
per year, starting in 2016-17, on an ongoing basis to the granting councils—the
highest amount of new annual funding for discovery research in more than a
decade. These funds will be allocated as follows:
3. Budget 2016 also announces that the Minister of Science will undertake a comprehensive review of all elements of federal support for fundamental science over the coming year. In order to strengthen the granting councils and Canada's research ecosystem, the review will:
4. Budget 2016 proposes to provide up to $379 million over eight years, starting in 2017-18, for the Canadian Space Agency to formalize negotiations with the National Aeronautics and Space Administration and undertake the necessary activities to extend Canada's participation to 2024.
5. Budget 2016 proposes to provide $30 million over six years, starting in 2016-17, to Agriculture and Agri Food Canada to support advanced research in agricultural genomics… Over the coming year, the Minister of Agriculture and Agri-Food will develop an approach for additional investments in agricultural science and research, informed by the review of federal support for fundamental science to be undertaken by the Minister of Science. This will allow for future investments in agricultural research to be well-positioned within Canada's broader research ecosystem.
6. Budget 2016 proposes to make available up to $800 million over four years, starting in 2017-18, to support innovation networks and clusters as part of the Government's upcoming Innovation Agenda.
7. Budget 2016 proposes to launch a new initiative in 2016-17 to help high-impact firms scale up and further their global competitiveness… The initiative aims to target 1,000 firms in the first few years, and expand to more firms thereafter.
8. Budget 2016 announces the extension of the Automotive Innovation Fund, which is currently scheduled to sunset at the end of 2017-18, through to the end of 2020-21.
9. Budget 2016 announces the Government's intent to develop, in collaboration with provinces, territories, research institutions and other stakeholders, a nationwide Canadian Cluster Mapping portal.
10. The National Research Council's Industrial Research Assistance Program (IRAP) supports innovative and growth-oriented small and medium-sized companies through advisory services, research and development project funding and networking. While further work to develop the Innovation Agenda takes place, Budget 2016 proposes to provide the Program with an additional $50 million in 2016-17 to increase the number of companies served by the Program's highly qualified Industrial Technology Advisors nationwide.
11. Budget 2016 announces that the Government will work with stakeholders to develop a performance measurement framework for business accelerators and incubators in Canada.
12. Budget 2016 proposes to provide $4 million over two years, starting in 2016-17, to renew the Canadian Technology Accelerator Initiative.
"Building a More Innovative Canada"
http://www.budget.gc.ca/2016/docs/plan/ch2-en.html#_Toc446106698