Perimeter Institute donation may pave way for golden era in Canadian philanthropy supporting basic research

A contribution of $120 million by three Research in Motion Ltd (RIM) executives to establish an institute for theoretical physics is being viewed as a powerful incentive that could trigger a massive increase in philanthropy dedicated to fundamental research. That's the hope of Mike Lazaridis, RIM's president and co-CEO, who contributed $20 million to help found the Perimeter Institute for Theoretical Physics and has committed another $80 million over the next year.

RIM colleagues Jim Balsillie (chairman and co-CEO) and Douglas Fregin (VP operations) are also contributing $10 million each, making it the largest private donation to basic research in Canadian history. The donations are being made in the form of RIM stock and will be converted into cash at the discretion of the Institute's board of director (see chart page 2). An endowment will be established to fund the Institute's work.

In order to sustain the Institute indefinitely, Lazaridis and Institute executive director Dr Howard Burton say much more funding will be required. While the details of exactly how much will be needed have not yet been released, both men say the ultimate size of the endowment for the Institute will have to be double or even triple the amount committed so far. That translates into an endowment of between $250 million and $350 million to support the 40 on-site researchers it anticipates once the Institute hits full stride within five years.

Lazaridis says that the explosion in wealth created by the New Economy has created a unique opportunity which governments should encourage and exploit. He intends to seek out other individuals with the view to convincing them that philanthropic support for research is an appropriate way to invest back into the system of innovation.

"The New Economy has put many successful people in the position where they can support things that they felt they could never have supported before," he says. "I want to find like-minded people and work with them. There's never been this kind of opportunity before to invest back."

The Perimeter Institute was officially incorporated last fall, but it took more than one year before its official unveiling. But several months prior to the announcement, the pending donations were well known in government circles, and meetings were held with key officials at both the provincial and federal levels. As a result, the Ontario government is now exploring the feasibility of creating a new fund that will match philanthropic donations, and the federal government is also reportedly planning a response. Both Burton and Lazaridis acknowledge discussions have taken place at Queen's Park and in Ottawa, and they're "very optimistic" that an announcement on supplementary funding could come later this year or early in 2001.

"We want government to understand that they should be supporting something like this," says Lazaridis. "The key is to work with government. Don't go to government first, but make the contribution and get it started."

For governments, the potential for leveraging private sector funding for research initiatives carries undeniable appeal, allowing them to laud the benefits of partnership and fund research initiatives at a fraction of the cost. Ontario in particular, is ideologically predisposed towards working with industry to fuel its innovation agenda, as illustrated by the Ontario R&D Challenge Fund (CF) which requires one third private sector support for any project it funds. But CF funds projects that are considerably closer to the marketplace than the basic research the Perimeter Institute will be conducting.

Lazaridis says the economic impact of theoretical physics may take decades to materialize and he's adamant that the long-range benefits will be enormous but only if individuals as well as governments do their part. That requires a much stronger tradition of philanthropy in support of research than currently exists, he contends.

"We need to plant the trees of basic research for the next century. No one can predict what's going to happen, but it will be profound," he asserts. "I believe innovation comes from an inexhaustible source and keeps going higher and higher.... There needs to be a balance between applied research and theoretical research, and we've underfunded theoretical research in this country."

Lazaridis says he has held the idea of creating a research institute since his days as an undergraduate student at the Univ of Waterloo where he earned a degree in co-op electrical engineering with a computer science option. Two years ago, he decided to put his idea into action and began seeking people who shared and supported his vision.

"I had to find the right people like Howard (Burton) and the people who are now on the board. It made sense and all the pieces fell into place," he says. "Howard flew around the world to visit other research institutes because I wanted to make sure this idea would bear fruit. This is a true labour of love and it will take decades to have an impact, but it will."

Burton's fact-finding mission to other institutes allowed him to gather information that was used to determine the Perimeter Institute's administrative structure, programs and even architectural design. Once city approval is secured, the Institute will be constructed in Waterloo Park backing onto a large pond. The facility will eventually house 30-40 permanent researchers as well as visiting researchers and associate researchers from regional institutes.

"The central premise of the Institute is that we believe that basic research is extremely important. It's important to Canada for its future intellectual capital," says Burton. "The Perimeter Institute also carries more weight because it involves a captain of industry yet it supports basic research."

The government inroads achieved by the Institute's backers were significantly enhanced by the involvement of Douglas Wright and fellow board members Lynn Watt and George Liebbrandt. According to Wright, the three provided the Institute with considerable advice on how the RIM donations could be leveraged by government support. They were instrumental in ensuring that the right people within government were made aware of the pending donation to the Institute, helping spark the potential for federal and provincial programs to encourage philanthropy.

"The Ontario government has been very impressed, and they do want to encourage this institute and the precedent it symbolizes," says Wright, former president of the Univ of Waterloo, CF board member, member of the RIM board of directors, chairman of the Canadian Software Human Resources Council and an adjunct professor in the university's engineering department. "They have said publicly that they are thinking about some way to do some matching funding, but they didn't give any details."

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