More information has come to light on the new strategic direction being forged by the National Research Council (NRC) that aims to improve its economic outputs and impact by carving out a new and distinct role for the organization within the larger context of the Canadian innovation system. A second staff memo from NRC president John McDougall and a list of R&D programs being considered indicate that a re-allocation of resources is intended to bring its activities in closer alignment with the needs of select industrial sectors where Canada has opportunities to achieve world class excellence in R&D and commercialization.

McDougall's March 2nd staff memo provided broad brushstrokes of his plan to move NRC more towards a market-driven organization and set off a firestorm of speculation on the NRC's future commitment to basic research. The memo provides some details on how financial resources will be apportioned, with NRC's senior executive committee taking a much larger role (R$, March 17/11). The March 24th follow-up memo - issued in response to some press reports - makes clear that the intent for the changes are in part motivated by the dramatic changes in the Canadian research landscape.

"I respect the value of basic research and knowledge, but I also understand how the innovation system in Canada has evolved so that most "researcher directed" and basic work is now carried out in academic institutions," wrote McDougall. "Duplicating efforts of universities at NRC doesn't make much sense, and I have said that since I was appointed a year ago."

collaboration encouraged

The degree to which NRC and universities overlap in the area of basic research is a point of contention. After nearly 15 years of investment in university-based research and related infrastructure, collaboration and movement between academia and NRC has increased substantially - a trend the new NRC direction intends to encourage.

One former senior NRC official says there's already a distinction between the roles of academia and the NRC and that worrying over the state of basic research is a red herring. He argues that the key emphasis for NRC should be on selection criteria, management and performance measures, whether it's for research or the large flagship programs it is planning - printable electronics, resilient wheat, bio-composite materials and algae to achieve CO2 reductions .

"NRC needs to justify why it selects these particular research areas and performance objectives and how can you manage towards them," says the official.

"Researchers are so far removed from it. The managers and policy makers need to have this sort of discussion because Canada is weak in this area."

The official adds that diverting funding to large showcase programs is something the NRC has done in the past in the areas of photonics and optooelectronics, canola and aerospace. In all instances there was heavy industry engagement.

"It's not unusual for NRC to take on larger integrated R&D programs so in that sense it's nothing new," he says.

Another veteran research manager applauds the NRC's new direction as a necessary move to adjust to the new realities of Canada's innovation system. Dr Tom Brzustowski, the Univ of Ottawa's RBC Financial Group professor in the Commercialization of Innovation, says there has already been considerable movement in research areas between universities and the NRC in as university-based research infrastructure and funding has expanded.

"There's a natural flow of NRC scientists that engage in basic research to universities," says Brzustowski. "The data show that Canadian science and engineering is competitive with countries we compete with. We're not competitive in converting that competence to connect with wealth creation so any move by the NRC is welcome."

Brzustowski's main concern with the NRC is the size of its budget, which he has long contended is far too small.

"NRC is several times too small given the size of the economy and the broad expectations of it, not to mention IRAP," he says. "It should also get IP (intellectual property) into the hands of the wealth creators ASAP. That should be the driving philosophy of the NRC."

R$