Reaction to Budget 2012

This year's federal budget has elicited a wide range of both praise and criticism. Below are highlights taken from statements issued by Canada's research and education communities:

Russell Williams, President, Canada's Research-based Pharmaceutical Companies (Rx&D)

"We are concerned that proposed changes to the Scientific Research and Experimental Development (SR&ED) tax credit could be detrimental to life science research and development in Canada.  Our industry has encouraged the government to expand the definition of Scientific Research and Experimental Development eligible research to better reflect the true investment being made today.

"The SR&ED tax credit program is one of several factors that contribute to attracting more health research investment to Canada. The changes announced in today's budget, notably the reduction to the investment tax credit rate and the removing of capital from the base of eligible expenditures, present potential concern for research-based pharmaceutical companies. Rx&D will be studying this issue to better understand its impact, both positive and negative, on emerging and established companies in Canada."

James Turk, Executive Director, Canadian Association of University Teachers

"With this budget, the government turns away from the kind of research that leads to new discoveries in favour of a narrow and short-term commercial agenda. By linking research only to business interests, the government will stifle rather than promote growth and scientific advancement.

"Tying research increasingly to commercial interests, as this budget does, will hinder real innovation. The government fails to understand that most fundamental advances in knowledge that lead to innovative applications come from basic research guided by scientists, not political or commercial interests.

"There is nothing in this budget to help students struggling with high fees and debt, to allow universities and colleges to expand student spaces and hire more teachers, or to permit researchers to conduct fundamental and ground-breaking work ... You can't cut your way to prosperity."

Dr. Michael Julius, Past Chair, Research Canada

While commending the government for its increased support of private sector innovation and targeted increases to the granting councils, Research Canada stresses that the budget provides no relief for the thinly stretched Tri-Council funding for discovery research.

Dr. Michael Julius, Past Chair, Research Canada; VP, Research at Sunnybrook Health Sciences Centre: "It is the strength of Canada's discovery research enterprise that has and will continue to attract the private sector. Research Canada underscores the need for the federal government to support the entire cycle of R&D, from discovery, through to product development and commercialization, to the market place and into health-care settings. Especially in times of fiscal constraint we need to be ever vigilant that investments are made in a balanced fashion across the continuum of these activities. If we jeopardize the discovery engine, the innovation system is at risk."

Deborah Gordon-El-Bihbety, President/CEO, Research Canada: Research Canada supports Economic Action Plan 2012's proposal for $500 million over five years to support advanced research infrastructure through the Canada Foundation for Innovation which is essential to a vibrant research enterprise in Canada.  "At the same time, Research Canada remains cautious because we have to be able to afford supporting that infrastructure once it is built. Budget 2012 does not contemplate the full costs of research, which is essential for sustaining our research infrastructure."

Digvir Jayas, VP Research and International, University of Manitoba
"The focus of the federal government's budget on jobs growth and long-term prosperity is not only in the caption of the budget document but is also through its actions and investments in research, innovation and commercialization. The federal government should be commended and congratulated for its long-term vision to increase productivity and prosperity for Canadians through investments in all aspects of research, development and commercialization (RDC). This is of particular significance because the government has done this under tight fiscal conditions.  
"These investments will help Canada in retaining the best and the brightest in Canada and in attracting the best minds from around the world at all levels: undergraduate and graduate students, postdoctoral fellows, researchers and knowledge workers.    
"Investments in research and innovation are through granting councils, Genome Canada, Canada Foundation for Innovation, CANARIE, Canadian Institute for Advanced Research, Industrial Research and Development Internship program, National Research Council's Industrial Assistance Research Program (IRAP) and other federal departments. All of these investments will contribute to different aspects of the RDC.
"Most entrepreneurs will tell you that in the process of taking an idea to a commercial product, the most difficult step is to raise funds in the early stages.  The government's investment of $400 million in early-stage risk capital to support creation of large-scale venture capital funds led by the private sector is an excellent and visionary move.  It mirrors what has been done in other successful innovative and knowledge economies such as Israel. "

Benefits to students: "First and foremost commercialization activities help students to learn about what is involved in commercialization.  It gives them opportunities to develop entrepreneurship skills through which they contribute to the growth of economy in Canada and the world. If an idea results in a product through a spin-off company, that company provides part-time and full-time job opportunities for students. If the idea is licensed to an existing company which then could grow a new product line and thus creating additional job opportunities. Converting an idea into a product or process could pose many challenges which provide further opportunities for students to learn while finding solutions to these challenges."

Stephen Toope, President, University of British Columbia

"Government has initiated an important dialogue on stimulating greater innovation and productivity in Canada and has included research universities as key interlocutors. Today's announcements reinforce that role and highlight the importance of research universities to our national economy and to the well-being of all Canadians."

Polytechnics Canada

"Our western members particularly welcome the announcement of the Western Innovation Program and look forward to its implementation of best practices adopted from programs at other regional economic development agencies, including programs that help applied research and commercialization."

Don Wright, President, British Columbia Institute of Technology: "These three new funding announcements (IRAP, NSERC and CFI) indicate that the Government continues to place a priority on fostering collaboration between Canada's colleges, institutes and polytechnics and the innovative firms that need access to our talent, facilities and equipment. We hope that NSERC moves swiftly to use today's new funding to make the pilot Technology Access Centre program permanent, building nation-wide capacity to assist companies that lack in-house R&D capabilities."

Paul Davidson, President, Association of Universities and Colleges of Canada

"The budget provides new opportunities for talented graduate students to gain research experiences in companies across Canada. We're also pleased the budget recognizes the importance of deepening international education and research linkages."

Bonnie Patterson, President/CEO, Council of Ontario Universities

"The commitments made in today's budget support our students with the funding and infrastructure required to ensure that Canada's workforce has the talent it needs to remain globally competitive. It will also ensure that Canada continues to be a global leader in research and innovation that is able to attract and retain the best and brightest researchers from around the world."

Patrick Deane, President, McMaster University

McMaster received $6.5 million for a new project to evaluate team-based approaches to health care delivery: "The Budget announcements are very good news for what they deliver to the people who are doing research. They also demonstrate the government's nuanced understanding of the important role university research plays in innovation and a strong and dynamic economy.

"The CFI funding is particularly important as its programs support the technology necessary for research. The increased funding provides a fabulous intersection with the provincial Budget announcement that continues the Ontario fund that matches CFI investments."