Editorial - 30-13

Canada has succeeded in creating research and commercialization networks that have proven highly successful in stimulating knowledge-based scientific and economic activity. Many of these networks have been, or are currently funded, by the tri-council Networks of Centres of Excellence (NCE) program — a Canadian invention that has been replicated by other nations.

Then there's the sunset clause. Regardless of a network's effectiveness or its potential for continued impact, the funds are cut off after 15 years. It's an ironclad element that continues to wreak havoc on years of collective public and private sector expertise residing in networks that often have more to contribute.

The reasons for such a clause make sense. With limited funding, money needs to be freed up so that new networks can compete. NCE funding was never intended to be the sole source of support for networks. Yet at a time when scaling up what works and shutting down less effective organizations is a defining component of many innovation strategies, the sunset clause stands out as a serious impediment.

As the Innovation Agenda takes shape in the coming months, policymakers should examine how successful networks can be extended. One solution is to increase the level of funding directed to the NCE program. As one administrator of a sunsetting NCE quipped, "Don't throw the baby out with the bathwater. Make a bigger bathtub". Developing criteria for successful networks to continue receiving NCE funds past the 15-year mark constitutes the reasonable and flexible use of public funds.