S&T’s lackluster performance in Budget reflects unstable political environment, lack of commercialization strategy

A politically charged federal Budget left little room for new S&T initiatives as the minority Liberals sought to preserve previously funded programs and agencies while positioning themselves for the next election. With some exceptions, the Budget provided modest increases in funding for a host of S&T initiatives from the granting councils to TRIUMF, while boosting investments in those linked to sustainable development.

If any winner can be declared, it is Atlantic Canada, which received hundreds of millions in funding through the regional development agencies including a $300-million renewal of the Atlantic Innovation Fund and a $110-million renewal of the National Research Council’s ambitious technology cluster program. The economic development package for the region is worth $708 million over five years, dwarfing all other S&T funding. The main delivery agent for the cash infusion is the Atlantic Canada Opportunities Agency (ACOA), which received a $41-million permanent increase to its base budget, augmented by $95 million in new money over five years.

Notable by its absence was the highly anticipated commercialization strategy (CS). Without the CS, Treasury Board was apparently unwilling to consider funding for any proposals involving commercialization. That left Industry minister Dr David Emerson with the challenge of ensuring that other S&T investments weren’t lost in the shuffle or overwhelmed by the Budget’s main priorities of defence, child care and modest tax reduction.

“My agenda with this budget was to make sure that we didn’t lose ground in some of the research and innovation building blocks that we put in place in the past,” says Emerson. “Where we need to be putting more emphasis going forward is on how to become more successful in infusing technology and innovation throughout the economy. That’s an area that’s going to take a bit more work.”

It’s generally accepted that the CS was delayed by a variety of intersecting factors, including a change in political leadership, a minority government and major changes in the executive suite at Industry Canada. Emerson says the lack of a coherent strategy meant he was unwilling to go forward to Cabinet and Finance minister Ralph Goodale

“I didn’t want to be putting words to the minister of Finance that I wasn’t ready to absolutely stand behind and put some substance to,” he says. “I will take responsibility for wanting to take a little bit more careful approach and making sure that we get it right.”

Emerson says the CS will emerge later this year after a small task force is assembled and reports back by the fall. The plan, he says is to develop a “cohesive, focused package in strategic initiatives” that encompass all aspects of commercialization and identifies the missing pieces in time for the next Budget cycle.

Without any new commercialization measures being proposed, the Budget did provide funds for existing programs and the research base. But by all virtually all accounts, the amounts approved were inadequate, forcing many organizations and agencies to reconvene their boards of directors to make tough decisions how to spend the new money.

The lack of a CS had a major impact not only on S&T initiatives being positioned for this Budget but for several that were funded in last year’s Budget. Pilot commercialization programs for universities and federal laboratories, for instance, respectively received $50 million and $25 million over five years. But to date, that money has not been released, prompting it to be re-profiled beginning this year.

It also caused frustration for Genome Canada, which received $60 million to sustain core facilities, its regional genome centres and head office. That funding was mistaken for commercialization, however, leading to protracted negotiations which were completely only in January. As a result, that funding will be released this year, along with $165 million in year-end funds announ-ced in the current Budget (see page 4).

For TRIUMF, the Budget’s 11% increase in its five-year funding envelope to $222 million falls short of its request for $277 million. That could reduce its researchers participation in the CERN program and prompt a scaling back of its Isotope Separation and Acceleration (ISAC) facility. TRIUMF executive director was not available for comment, but he will be in Ottawa this week to meet with the president of the National Research Council and the National Science Advisor.

“More money will have to come from the centre,” says one observer. “It could get messy is no more money is forthcoming.”

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