Editorial - 24-4

The federal Budget does little more than keep the hounds at bay as the government's deficit position plays havoc with a more comprehensive approach to S&T funding. Renewals for key organizations and facilities dominated the Budget's S&T provisions with several modest new initiatives that give an inkling of future directions (see lead story).

But for the major issues surrounding Canadian innovation, productivity and competitiveness, the overriding modus operandi appears to be one of delay. The lack of action on R&D tax credits, a digital economy strategy and commercialization means that at least another year will pass before Canada begins to act on issues that many competing nations have already dealt with.

Concern is also increasing that future Budgets could be even tougher on S&T as stimulus funding expires and the reality of a bulging deficit prompts a round of debilitating cuts. The comprehensive review of all federal support for R&D (including tax credits but excluding federal labs) may set the stage for such a scenario unless the S&T community convinces the Conservative government that innovation warrants a higher priority ranking. The same can be said for research into climate change and alternative energy sources, which were ignored in the latest Budget.

Canada's fiscal position is the envy of the world. It's therefore imperative that the country take advantage of its (natural resources driven) good fortune to aggressively establish a vibrant knowledge economy that's both globally competitive and sustainable. Speeding up the decision-making process is a good first step.