New Tory government would be wise to counter renewed US push on innovation

The renewed prominence of S&T south of the border is being viewed as a golden opportunity for Canadian backers of increased R&D spending to convince the new Conservative government that Canada must follow suit or risk being left behind in the global economic arena. The success of the US S&T community in moving R&D and innovation back onto highest rungs of the White House agenda is being closely watched in Canada as the reins of power in Ottawa change hands.

Canadian observers say the US rationale for greater R&D spending in the physical sciences, tax assistance for business and increased instruction in math and science also apply to Canada, where the future of the innovation agenda is uncertain.

Dr David Wolfe, a professor of political science and co-director of the Program on Globalization and Regional Innovation Systems at the Univ of Toronto's Centre for International Studies, has been watching the US lobbying effort closely. He says the US decision to boost R&D spending, coupled with the lack of debate about innovation during the recent Canadian election campaign, is cause for concern.

"The American Competitiveness Initiative should serve as a wake-up call for our new government, and focus attention on where S&T infrastructure fits into their broader conception of making a stronger Canada," says Wolfe. "It's imperative that people in Ottawa take notice and decide what we should be doing on a comparable basis. This has implications for the National Research Council, the Canada Foundation for Innovation, the granting councils and the commercialization agenda."

Other than an occasional comment by former prime minister Paul Martin, election campaign rhetoric did not mention innovation, competitiveness or productivity. The Liberal Economic and Fiscal Update contained several measures for boosting spending, but there's no indication the Conservative government will honour them. If the US succeeds in increasing the gap in innovation-related funding, the groundwork laid by the Liberal government could be squandered.

"The $50 billion in new funding in the US is driven by intersecting concerns and other countries are emulating the US model," says Wolfe. "It's a clear example of how a whole series of reports get translated into a public policy initiative at the highest level."

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