In the run up to next month's federal Budget, the annual reading of the tea leaves is once again in full swing. Cuts of 5-10% are about to be inflicted on federal departments and agencies, but the government has made it clear that they won't be uniformly applied.
Therefore the inclusion of R&D in a recent letter from the prime minister to his cabinet caucus is cause for cautious optimism. In the January 15th communiqué, prime minister Stephen Harper says "investing in research and development" will be one of six key areas in the (read Budget) that his government is finalizing.
Harper has also been quoted as saying that at least some recommendations in the Expert Panel Report on Federal Support for Business R&D could make their way into the Budget. Hopefully it will be the panel's call to make the R&D tax incentive program labour-based and less prone to filling the pockets of a growing army of R&D tax consultants, with savings ploughed into programs that offer companies direct R&D support.
The Conservative government is running an unacceptably high budgetary deficit but any action it can take to lessen the impact of its fiscal constraint measures on R&D in Canada would be most welcome. R&D and innovation remain Canada's best hope for building a successful, knowledge-based economy. Tangible evidence that the government accepts this reality will send a positive message to researchers, innovators and technology entrepreneurs that the government is on their side, ready and willing to be a champion for the cause.