Editorial - 23-10

A visit to Atlantic Canada is an opportunity to witness a region in transition. After years of strategic investment, innovation and innovative firms are emerging as increasingly critical components of the economic and social fabric as a host of recent indicators demonstrate. Multi-sectoral collaboration is becoming the order of the day, as partnerships amongst key players seek to gain competitive advantage over larger, better resourced jurisdictions.

The Atlantic Innovation Fund has been the single largest player in this remarkable evolution and is testament to the profound changes that have occurred in its host organization — the Atlantic Canada Opportunities Agency (ACOA). Once synonymous with pork, ACOA has used $600 million in AIF funding since 2000 to stimulate collaboration and private sector innovation. That has helped to spawn the creation or growth of many high-tech companies that are making gains in global markets.

But the AIF is nearly exhausted, with the last $50 million in funding now up for grabs in the latest competition. Expectations that another round of financing would be announced in the last federal Budget were not fulfilled, leaving many policy makers and businesses wondering if Ottawa is about to choke off a success story in the making.

AIF should be renewed and the decision shouldn't wait until the next Budget. Changes should also be considered to assist growth-stage firms as well as smaller companies. With R&D dollars about to flow from the oil and gas sector, now is the perfect time to build on nascent capacity and maintain critical momentum.