Ambitious Canada-California research initiative facing make-or-break decision

"We need to see some action"

The next few weeks could determine the future of the Canada-California Strategic Innovation Partnership (CCSIP) as Canadian officials pitch the idea of employing an established delivery mechanism to implement the multi-faceted bilateral research model. The Canadian delegation attending a meeting this week in Oakland CA is proposing the use of International Science and Technology Partnerships Canada (ISTPCanada) but must get buy-in from Univ of California (UC) officials before proceeding.

Representing Canada are Dr Denis Thérien, VP research and international relations at McGill Univ, and ISTPCanada president Dr Henri Rothschild. They will discuss the future of CCSIP and the possible use of ISTPCanada with UC president Dr Robert Dynes, and Dr Gretchen Kalonji, UC's director of International Strategy Development.

"In the next two weeks, decisions will be made that will have a profound influence on the future of the organization including the possibility that it will be an organization without a future," says Thérien. "It's been two years now and at some point we need to see some action … There needs to be an agreement on the mechanism to deliver this as well as further representations to the federal government to see how it can increase the (funding) envelope."

Launched with considerable fanfare in 2006, CCSIP is an ambitious yet complex attempt to match promising research in Canada and California in several areas where both jurisdictions possess world class expertise. Its backers were encouraged by the prompt pact between CANARIE and the Corporation for Education Network Initiatives in California (CENIC) to link their high-speed networks to facilitate distance research collaboration. Separately, a cancer stem cell agreement was initiated, with the Ontario government pledging $30 million in support for a new Cancer Stem Cell Consortium (CSCC) (R$, June 18/07).

These initiatives — combined with a high-profile visit to Canada last year by California governor Arnold Schwarzenegger and at least one meeting between Dynes and clerk of the Privy Council Kevin Lynch — led many to believe that CCSIP was ready to blossom into a flurry of collaborative research projects that held great potential for both jurisdictions. Optimism was also enhanced by CCSIP's inclusion in the federal S&T Strategy as an example of how Canada is working to become a global innovation leader (see box).

Federal inaction leading to frustration

Eight months later, however, the CCSIP steering committee and other supporters are growing increasingly concerned that the initiative will falter without forceful input from the federal government. The university community has come forward with some bridge funding — $1 million from UC and $600,000 from 10 Canadian institutions — but many supporters contend that more substantial support is urgently required to maintain CCSIP as an overarching entity.

"It's still largely an unfunded program," says Dr John Hepburn, VP research at the Univ of British Columbia and Canadian co-leader along with Thérien of the CCSIP steering committee. "We have yet to receive a firm commitment from Ottawa that this is a project similar to Canada-India and Canada-China. We're always hopeful."

Even though the CSCC is more advanced than the other research areas, efforts to secure federal financial support have yet to bear fruit. Health Canada DM Morris Rosenberg is a strong supporter of CSCC and is currently engaged in due diligence. Several key health research organizations are also on board.

Canada and the State of California have embarked upon a strategic partnership to achieve world-class research in areas such as cancer stem cell research, infectious diseases, sustainable energy and ICT/Broadband. Strategic international and inter-sectoral collaboration among governments, researchers, industry and investors is pointing the way toward new approaches to positioning Canada as a global R&D and innovation leader." — S&T Strategy

"I have been spending a lot of time trying to advance CSCC within the federal government," says Dr John Hassell, a professor of biochemistry and biomedical sciences and director of the Centre for Functional Genomics at McMaster Univ. "I've been happy with the response from the (Health Canada) deputy minister and optimistic that it will be supported at the federal level. We're looking for a significant, realistic level of support. ... The next decision may be a political one."

Despite the early success of CCSIP's networking and stem cells groups, the larger issue of central coordination and delivery remains in limbo. That could change if the bid to involve ISTPCanada is successful A December/07 meeting of the steering committee approved the decision to push for ISTPCanada's inclusion after it emerged as a viable option in the fall. Thérien sits on the board of ISTPCanada and has witnessed its progress in developing bilateral research projects between Canada and India and China. He believes the decision on whether to use ISTPCanada could make or break CCSIP.

"In less than one year, I'm very proud of what ISTPCanada has succeeded in doing. They're not just talking the talk," says Thérien. "There needs to be some agreement that ISTPCanada is a vehicle to be used … We could have a call for proposals by the summer if there is agreement."

Thérien has also been engaged with several provincial governments and has discussed CCSIP with Raymond Bachand, Quebec's minister of Economic Development, Innovation and Export Trade. Bachand has given a tentative commitment to host a third CCSIP summit in Montreal this June conditional upon an ITSPCanada mechanism being approved.

"People are exploring how to do international collaborations all over the world. There's no recipe book to follow," he says. "It's important to get started because we need a framework first as opposed to separate initiatives."

ITSPCanada appears well suited to taking on the task of infusing CCSIP with organizational discipline. Modelled on the long-standing Canada-Israel Industrial Research and Development Foundation, it is currently managing bilateral projects with Israel, India and China, and may soon add Brazil to its portfolio. ITSPCanada president Dr Henri Rothschild describes CCSIP as a "magnificent concept with huge potential" He says its success would represent the creation of a new model for conducting bilateral research, given the asymmetry among the players.

"It's a bilateral concept between the University of California which is a single system and a consortium of Canadian universities that may or may not be in the game," he says. "ISTPCanada's track record is its ability to run bilateral processes quickly and efficiently with credible results. We have the confidence of DFAIT and Canadian universities and this could help move CCSIP from step one to step two. Of course if we had a larger budget it would be a lot easier."

Quantum computing is another area of research that may be added to CCSIP pending the outcome of a workshop in California in March. Dr David Fransen, executive director of the Institute for Quantum Computing, says if researchers can identify areas of research of value to both sides, funding sources will become available.

"There's no huge pot of money and no realistic prospect of getting one," says Fransen, adding that researchers shouldn't automatically look to the federal government for support . "At IQC, we're engaged in a range of international partnerships and we're willing to participate in CCSIP workshops to explore where collaboration may take place if it's realistic to do so."

The original concept for CCSIP was focused on research, development and delivery. The latter required the input of industry and the financial community. But until the issue of a central coordinating mechanism is resolved, it's unlikely interest from the investment community will be piqued.

Work conducted by the CCSIP working committee for venture capital and intellectual property (IP) recommended in a July/06 report that measures be taken to remove regulatory barriers to enhance the cross-border flow of IP and financing.

"There's been progress on the LLC (limited liability companies) issue but no progress on IP," says Tom Sweeney, general partner and managing director of Garage Technology Ventures Canada. "The Canadian side has agreed to allow for LLCs to be exempt from double taxation but it still needs to be ratified by the US Congress."

Sweeney says an International Taxation Committee is preparing a report to be issued by the end of 2008.

On the IP front, a report is being prepared for CCSIP by Smart and Biggar on IP as it pertains to cross-border, early-stage collaborations between universities.

"CCSIP is a program that's trying to do interesting and innovative work between a country and a state. It's not as simple as a bilateral agreement," says Sweeney.

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