Editorial - 25-15

Reading the Jenkins Panel report on federal support for business R&D is a lot like riding a rollercoaster. The panel's articulation of its vision for an innovative Canada is often exhilarating, with a suite of recommendations clearly intended to move Canada up the ranking of innovative economies. On the other hand, there is at least one inescapable low — namely its call for the dismantling of the 96-year-old National Research Council.

The NRC is Canada's largest S&T organization providing research and assistance to a range of industry sectors. The call to break up the NRC is based on the premise that its component parts can be more effective if shifted to new and existing mechanisms. And while there is merit to its reasoning, it would mean the end for one of Canada's most enduring and respected S&T organizations.

The report treads on equally contentious ground with its recommendation for redressing the imbalance Canada currently has in the methods it employs to stimulate private sector R&D and innovation. Taking money away from its massive R&D tax credit program and redirecting it towards sectorally based direct support programs will provide much needed assistance to promising industry.

But expect to see a battle royale from large businesses that stand to lose tax-based support for their R&D, and from consulting firms who assist smaller companies in navigating the program's complex eligibility rules. There will be vigorous debate over the Jenkins report in the next few months and government will ultimately have to decide if its advice is worthy of implementation.