Quebec devotes $2 billion to new jobs plan, integrating policies for research and innovation, industry and external trade

Quebec's is allocating $581 million over the next four years towards research and innovation as part of a comprehensive $2-billion jobs creation strategy unveiled October 7th. Entitled Quebec's Economic Policy — Putting Jobs First, the plan pulls together three policies — including the National Research and Innovation Policy (NRIP) — and its Transportation Electrification Strategy into an integrated attempt to boost the province's economy, stimulate innovation, attract foreign investment and reduce unemployment, currently standing at 7.9%.

The plan states current conditions for business investment are favourable but firms remain hesitant due to "uncertain global economic conditions". It notes that "Quebec appears to be straying from its goal of devoting 3% of GDP to R&D expenditures" with business gross expenditures on R&D stalled at 2.4% as of 2010.

Funding for the plan is being secured through $972.2 million in budgetary appropriations, $315.3 million in tax measures and $711.6 million provided for in the financial framework defined in the recent Budget

In response, the plan has a strong research- and knowledge-based industry slant that dedicates more than a quarter of the new funding to research and innovation. That breaks down as $200.8 million in support of research, $366.5 million for innovation and $13.4 million for public policy research. Of the total, however, all but $2 million won't begin to flow until FY14-15, suggesting that the province remains committed to achieving the difficult goal of eliminating its deficit by next year.

Although it has not been officially launched, the NRIP replaces the former Quebec Research and Innovation Strategy (QRIS) with a commitment of $2.16 billion in funding, $495.2 million more than was allocated to the QRIS.

The NRIP is being bundled with Quebec's Industrial Policy, the External Trade Development Plan and the Transportation Electrification Strategy. It states that the $200.8 million in research funding will be focused on two objectives:

* training next-generation workers and promoting scientific culture, and

* supporting higher education to ensure research excellence

Details on the research portion of the jobs plan will be announced when the policy is unveiled, likely in the coming weeks.

For innovation, the plan contains a host of new and enhanced initiatives as part of a commitment to support businesses "engaging in technological innovation from the development phase through to the demonstration and commercialization phases".

The largest portion ($103.2 million) will go towards the creation of a new Recherche Innovation Quebec Network (RIQN).

Modelled on Germany's Fraunhofer Society, the RIQN pulls together the province's knowledge transfer support organizations within a single entity that will be encouraged to establish alliances with industry, government and other organizations. It will also launch a web platform (Québec Innove) "to ensure optimal sharing and dissemination of information".

The plan also calls for $40.5 million to enhance large research platforms such as Genome Québec, NanoQuébec, Institut national d'optique, Calcul Québec and the Centre de recherche industrielle du Québec (CRIM).

An additional $71.5 million will be devoted to integrating small- and medium-sized enterprises in industrial research clusters by providing funds for their participation in projects with a " a higher overall level of technological maturity".

Further support for SMEs will be provided with the creation of a First Patent program and financial assistance for product development and commercialization and support for world-class centres of excellence.

The plan also calls for $50 million to create Capital Émergence, following a measure included in the 2013-14 budget. It will "facilitate start-ups with a contribution of venture capital, in collaboration with tax-advantaged funds".

The province's ongoing mobilization projects will receive $50 million to add two or three new projects to the six that are already underway: phase two of the greener aircraft catalyst project, a transportation electrification project and a third to be confirmed. The projects will establish public-private partnerships with public funding leveraging an equal amount from the private sector.

Putting Jobs First can be found at www.finances.gouv.qc.ca/en.

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