Canada's policy for bilateral R&D in limbo as ISTP Canada funding expires end of this FY

Re-orientation of programs possible

Despite the federal government's enthusiasm for striking and strengthening bilateral trade deals with other nations, one of the few programs that encourages bilateral, industry-led R&D collaboration is in limbo. Funding for International Science and Technology Partnerships Canada (ISTP Canada) expires on March 31/15 with no indication that it will receive a third tranche of funding or expand to include more than the three countries Canada has working agreements with.

All approved projects have now been completed and no new initiatives are being launched while the funding uncertainty persists. As the operating arm of the International Science and Technology Partnerships program managed by the Department of Foreign Affairs, Trade and Development (DFATD), ISTP Canada's fate will be determined by the department.

ISTP Canada was last funded in 2010 with $20 million over five years. Of that amount, $13.5 million is directed towards funding Canada's participation in bilateral projects with China, India and Brazil, $2.1 million is devoted to partnership development activities. Approximately $5 million remains uncommitted. If that money is unspent when the agreement with DFATD expires at the end of this fiscal year, it will be returned to the receiver general.

In addition to DFATD support, project funding is provided by participating companies and ISTP Canada works closely with the granting councils, which fund the academic aspects of the bilateral projects. For the organization's projects with China, the Canadian Institutes of Health Research funds Canada's contribution to vaccine development while the Natural Sciences and Engineering Research Council contributes to projects focused on automotive technologies.

The international clout of universities was strengthened in the 2014 Budget with the announcement of $1.5 billion over 10 years to establish the Canada First Research Excellence Fund as well as a new International Education Strategy (R$, February 24/14).

Major changes in 2013

Last year, Dr Henri Rothschild, ISTP Canada's president and CEO stepped down and was replaced by Dr Pierre Bilodeau, who moved up from its VP operations to COO. (Rothschild continues to lead a parallel program, the Canada-Israel Industrial Research and Development Foundation – CIIRDF). In addition, several positions were eliminated to reduce operational expenses, reducing staff to just four employees.

Current activities are focused on matchmaking and proposal development in anticipation that a third round of funding may be approved. Bilodeau is a passionate advocate for the organization's continuation and although he's frank in assessing its shortcomings, he points to three value propositions that he says warrant further funding.

"As an organization, we have eight to 10 years experience focused on international S&T partnership program development. We've developed the expertise and we have a deep knowledge of what works and what doesn't from a Canadian perspective. I don't see a lot of other organizations that have that," says Bilodeau. "We've also developed a very strong governance structure with our board of directors and internal policies … We really understand what DFATD expects and there's very open discussion and communication. Thirdly, we have developed a very strong relationship with key organizations in China, India and Brazil. If you were to start from scratch, you would have to redo that."

In its latest annual report, ISTP Canada reiterates its vision to "be recognized as Canada's premier global S&T partnership development organization".

Program evaluation pending

An evaluation of the second five-year phase of the program has been completed but remains unreleased.

Bilodeau supports greater operating flexibility and more extensive collaboration between ISTP Canada and other government departments and agencies that are also pursuing greater international S&T collaboration.

"We need a bit more cohesion and collaboration between the different Canadian stakeholders before we can really succeed at international S&T partnerships. If we don't, we can survive but we can't really thrive," says Bilodeau, who first joined the organization in 2011. "Companies can't do it on their own. They are too focused elsewhere as they should be so there is a key role for government."

NRC seen as key partner

Greater collaboration with the NRC is seen as a key priority given the organization's size, technology strength, recent reorientation with a stronger business focus and its status as Canada's conduit to the European Union's EUREKA program.

Canada joined EUREKA as an associate member in 2012 and a national office was established at NRC's Industrial Research Assistant Program (IRAP) in Ottawa (R$, July 5/12). IRAP also recently launched a concierge service designed to match companies with potential public funding sources to assist in boosting R&D, enhancing innovation capacity and facilitating access to global markets.

"No one is better positioned than NRC to know Canadian industry ... They have a lot of knowledge and we would gain collectively to have access to some of that NRC-IRAP expertise in helping us make decisions — what countries we want to work with and what industry sectors in Canada are ready for the next step," says Bilodeau. "If ISTP Canada could tap into the EUREKA program's advisory system we can at least coordinate our efforts ... We could have the same policy environment to try and share best practices."

While greater Canadian collaboration and coordination are important issues facing ISTP Canada, the most pressing concern is funding. Without stable, long-term funding, the ability to attract promising companies to the program and negotiate agreements with other countries is compromised.

Bilodeau says his organization's current financial circumstances do not permit ISTP Canada to advocate or lobby for funding renewal.

"Ultimately it's DFATD that needs to push this file up ... It's clear they now see this file as theirs," he says. "It's basically the only mechanism that they have to try and secure some funding for collaboration between Canada and somebody else in the area of S&T.

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