IRAP delivers ICT support to SMEs as part of government's Digital Economy Strategy

The latest plank of the (to date unreleased) Digital Economy Strategy (DES) has been unveiled with an $80-million, two-and-a-half-year pilot program designed to assist small- and medium-sized firms (SMEs) enhance productivity through the adoption of information and communications technologies (ICT). Announced in the 2011 federal Budget, the Digital Technology Adoption Program (DTAPP) will be delivered through the National Research Council's Industrial Research Assistance Program (IRAP) with technical assistance and services from Canadian colleges.

DTAPP is the second temporary federal funding boost directed towards IRAP, which benefitted from $200 million in 2009 and 2010 from the federal economic stimulus program. For DTAPP, an additional 10 industrial technology advisors (ITAs) will be hired to help existing ITAs in delivering DTAPP funding of up to $100,000 to as many as 630 SMEs from all sectors of the economy. Another two or three staff will be added to IRAP headquarters in Ottawa to provide administrative support and oversee the collection, synthesis and analysis of data collected over the duration of the pilot.

Assistance to SMEs will comprise approximately $63 million of the pilot's funding, with another $10 million or so devoted to college participation. The remainder will be spent to hire new staff and undertake data collection and analysis.

DTAPP will also allow IRAP to expand the use of its new performance management system which became operational over the summer. The system will track all inputs into a company receiving IRAP support, allowing for a more accurate understanding of sales derived from IRAP's contributions to a firm's technological improvements, as well as R&D personnel, other investments received by the firm and overall productivity improvement. DTAPP will focus on assisting firms in enhancing productivity by deploying ICT to improve production lines and workflow processes and making supply chain and customer management systems more efficient,

"We've worked closely with SMEs, the regions, Industry Canada and our staff to adapt the program as closely to SME client needs as possible," says IRAP DG Bogdan Ciobanu, adding that the program will likely involve negligible R&D. "We will use mostly off-the-shelf technologies but there could be some adaptation."

In announcing the launch of DTAPP, Industry minister Christian Paradis noted that the program is intended to raise awareness of the of the benefits and importance of adopting ICT — a function which will engage community colleges, CEGEPs, polytechnics, not-for-profit private colleges and institutes of technology.

"Colleges provide technology expertise, cutting-edge facilities and a rich supply of students that can assist with the adoption process," said Paradis. "Engaging colleges in ... projects will provide entrepreneurs with an opportunity to enhance their technical skill set — a benefit that will endure long after their participation in the pilot program has ended."

"We will rely heavily on colleges for certain services such as raising awareness by organizing roundtables for SMEs, providing training for company adoption, facilities to test equipment and helping companies hire graduate technicians," says Ciobanu, adding that the program is targeting of the hiring of 100 college graduates.

How DTAPP fits into the government's DES isn't clear as the strategy has not been released. In addition to DTAPP funding in the last Budget, the government allocated:

* $60 million over three years to Human Resources and Skills development Canada to "promote enrollment in key disciplines related to the digital economy, such as science, technology, engineering and mathematics";

* $100 million into the Canada Media Fund to support creation of convergent digital content across multiple platforms, including television and leading-edge applications for Internet and wireless; and,

* a portion of $53.5 million over seven years to create another 10 chairs for the Canada Excellence Research Chairs program. Several will be devoted to aspects of the digital economy.

More recently, the Business Development Bank earmarked $200 million for an SME loan program to facilitate the adoption of ICT.

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