Quebec Budget boosts investment in aerospace and pulp and paper, enhances innovation strategy, cuts S&T Council

S&T figures prominently in the Quebec government's efforts to curb its growing debt and stimulate economic activity with a major overhaul of key institutions and agencies combined with $1.1 billion in mostly new innovation-related spending. The March 30th Budget announced the merger of the province's three provincial research granting councils, the termination of the Council of Science and Technology (CST) and an updating of its research and innovation strategy backed by $461 million over three years.

Combined with initiatives to demonstrate and implement environmental improvements to aerospace and pulp and paper technologies, the Budget is a classic case of the holistic approach previous Budgets and administrations have taken towards economic and social development with S&T playing a major role.

An updating and extension of the 2006 Quebec Research and Innovation Strategy (QRIS) will revise the framework for many existing and new S&T initiatives, indicating that the government plans to take a more comprehensive role in its innovation policy.

"Over the next three years, the extension of the QRIS will make it possible to maintain the existing programs, including programs to support technology companies at the seed stage and technological intensification," said Finance minister Raymond Bachand in his Budget Speech. "It will ensure maintenance of the program of on-the-job training bursaries, will finance public research and will support the activities of commercialization and transfer organizations."

Bachand said that when the new funding is added to funds "carried over from the previous strategy" and new money committed to aerospace and pulp and paper demonstration projects and research infrastructure, "the government will devote more than $1.1 billion to innovation over three years".

The decision to terminate the Council of Science and Technology (CST) and integrate its functions into the Ministry of Economic Development, Innovation and Export (MDEIE) reinforces this element of central control.

In late February, Sylvie Dillard was appointed CST's interim president. Formerly president of Fonds québécois de la recherché sur la nature et les technologies (FQRNT) and most recently director of special projects for MDEIE, Dillard was reportedly unaware of the pending decision to close the CST. In recent years, tensions have arisen between the CST and government over the independence of the organization and the government's increasing requests for specific studies to be undertaken.

"Cutting it is a mistake. It was the only one that had a long-term view of S&T in Quebec," says Dr Yves Gingras, a history professor at the Univ of Quebec at Montreal and a Canada Research Chair holder in history and sociology of science. "Its budget was very small so there are not a lot of savings."

For the research community, the decision to integrate the three provincial granting councils — Fonds de le recherché en santé du Quebec (FRSQ) , FQRNT and Fonds québécois de la recherché sur la société et la culture (FQRSC) — came as a surprise. The consolidation of the granting councils is part of the termination, merging or integration of 28 Fonds and government agencies, a move designed to reduce public expenditures and "create productivity gains". A draft bill will be released soon clarifying how the merger will take place.

FRSQ president Dr Yves Joanette says he hopes to learn more details in the coming days when he and other council presidents meet with MDEIE officials but he's adamant that integration should occur at the administrative level only.

"At the level of science, the impact of a merger into one science-driven organization would be at the cost of a less competitive Quebec," says Joanette. "The indication we have from the ministry is that they share the view of distinct science functions."

Joanette adds that he's surprised that the councils are being targeted for efficiency gains when FRSQ has a low management expense ratio (6%) relative to other Canadian granting councils.

For Quebec's colleges, the Budget provides $75 million — $50 million to boost technical and vocational training with the acquisition of specialized equipment in the areas of health, educational services and information and communications technologies and $25 million to modernize training facilities.

For industry, the Budget contains several new initiatives including a $1.8-million investment over three years in Croissance Techno Quebec. The funding will be used to offer high-level coaching of carefully selected entrepreneurs to develop better business practices. Those selected will attend the Massachusetts Institute of Technology Entrepreneurship Centre.

More substantial are the Budget's investments in the pulp and paper and aerospace sectors. A $30-million catalyst project for the pulp and paper will support pilot plants and prototype production for biorefining facilities in the areas of nanocrystaline cellulose and biofuels. An undefined leverage factor will see industry contributions added to the public funds.

For the aerospace industry, the Budget provides $70 million through MDEIE augmented by $80 million in industry funding to test concepts developed in universities and research centres. Called the Environmentally Friendly Aircraft fund by the government and the Smart, Affordable, Green Efficient (SAGE) fund by industry, it will support demonstration projects already identified as key by an innovation committee jointly led by Aerospace Montreal and the Consortium for Research and Innovation in Quebec (CRIAQ).

SAGE's strong industry focus is similar in intent to the Green Aviation Research and Development Network (GARDN) — a Business-Led Network of Centres of Excellence — and Europe's massive Clean Sky program.

"This is very big for us ... It's very close to commercialization and industry-driven and led with the money going to industry," says Dr Hany Moustapha, formerly senior fellow and director for technology and collaboration programs at Pratt & Whitney Canada and a professor of mechanical engineering at École technologie supérieure, Univ of Quebec. "This is the biggest aerospace funded collaborative program in Canada although in the European context it's like petty cash, a very modest response."

Five projects have already been identified for funding and are led by industry mainstays P&WC, Bombardier and CMC Electronics. All projects will involve academic partners and smaller supply chain firms.

"This was six years in the making. We asked for $160 million and got $150 million (from government and industry sources) so we're very pleased," says Moustapha. "We wanted to look at the next step in collaboration and go for the higher level."

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