Government’s Innovation Agenda buffeted by events beyond its control

RE$EARCH MONEY Analysis

What a difference a few months make. This fall was supposed to usher in the triumphant unveiling of Ottawa’s comprehensive Innovation Agenda and establish a key milestone in the quest to make Canada a globally competitive knowledge-based society. But events both sobering and tragic are threatening to wreak havoc with the federal government’s ambitious plans.

The recent attacks on the US have recast government priorities worldwide and Canada has not been immune to the fallout. Innovation is just one of the pressing issues suffering collateral damage from the tragedies south of the border. Instead of devoting the funds required to deal with key agenda items, issues of national security, solidarity with our neighbour and airline bailouts are threatening to take precedence.

Initial statements by our senior political leaders were initially encouraging. Despite the inevitable expense of participating in the US-led reaction to the terrorist attacks, the federal agenda was going to proceed, albeit at a somewhat slower pace. The determination to forge ahead was bolstered by last week’s announcement by Finance minister Paul Martin that the FY00-01 surplus was a record $17.1 billion. What’s more, the current year promises another substantial surplus, although not likely as large as the previous year. There was enough money, it seemed, to commit to the fight against terrorism and maintain current commitments to innovation.

Unfortunately, the economic slowdown that preceded the tragic events of September 11 has escalated dramatically. With a full blown recession now a distinct reality, increased federal spending in areas not related to battling the short term impact of a shrinking economy will be an exceedingly tough sell.

Ensuring the safety and security of Canadians and the nation’s allies is a given, yet the further delay of the innovation agenda would be a mistake. The initial investments made in research infrastructure and specialized areas like genomics and nanotechnology will never realize their full potential without serious investment in other areas.

The untold hours of work that have gone into the economic and skills portions of the Innovation Agenda will be largely squandered, and the momentum (such as it is) to date will be lost.

There’s still confidence among Canada’s S&T community that the government will forge ahead with the Innovation Agenda this fall, but the scale of the effort and the resources it devotes remain worrying question marks. The war against terrorism will be waged and the economy will eventually rebound. So it’s essential that the tough decisions to be made are the right ones for Canada’s long term prosperity. Economic innovation and advances in skills and learning remain as vitally important as they were just a few short weeks ago. The necessity of providing the financial support to implement them remains undiminished.

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