Perennial issue won't go away

The ability of some of the country's most successful research networks to extend their impact on Canadian innovation and competitiveness is being severely limited due to an ironclad sunset clause in the program that funds them. The restriction is highlighted in a new paper by Dr Peter Frise, until recently AUTO21's scientific director and CEO. The network received $81.3 million over 15 years through the Networks of Centres of Excellence (NCE) program before shutting down last year.

Similar fates are now facing the Stem Cell Network (SCN), the Canadian Water Network and ArcticNet, all due to sunset in 2017 or 2018.

"This "Sunset Rule" makes no sense, adds no value, is illogical and represents a loss to the country and its economy that is inexplicable," writes Frise. "(For AUTO 21) it seems like an inopportune time to close down an innovation program that was created by, and specifically for, the Canadian auto sector. This "blindness" to external events in the economy is, in my view, very unwise and greatly weakens our programs."

The NCE program has been hailed as one of Canada's most innovative research programs yet there is no provision for extending support beyond three five-year terms (previously two seven-year terms) plus a funding extension to wind up operations. The program has three main components — classic or traditional NCEs, Business-Led NCEs and Centres of Excellence for Commercialization and Research (CECRs). All have set limits for how long a network can continue to receive NCE funding, regardless of their impact or research excellence.

The clause has been unsuccessfully challenged in the past although a few NCEs have thrived beyond program funding. Mitacs has evolved from an NCE narrowly focused on mathematics research to a highly effective industry research internship program for all sectors, while the SCN set a precedent in the last federal Budget by securing $14 million to extend its funding by two more years (R$, April 4/16).

Dr Michael Rudnicki, SCN's scientific director, says the NCE program is a "crucible for innovation that plays an important role in nation building" and that the SCN has "facilitated the growth of what is now a vibrant and innovative sector". While declining to comment on NCE policy he says "the consequence of eliminating networks that have generated considerable success, and have great potential, either economically or for the health of Canadians, must be a factor in the decision making process".

Rudnicki notes SCN's potential for ongoing success was acknowledged and rewarded in the last federal Budget, which provided an additional $12 million over two years, making possible a new program to support early-stage trials beginning this year.

AUTO21's success in stimulating automotive innovation also yielded further funding with the 2015 Budget announcement of the Automotive Supplier Innovation Program (ASIP), providing $100 million over five years to strengthen the innovative capacity of the sector's supplier companies. Frise says AUTO21 was asked to design a program that could extend the network's legacy.

"We wanted to have a successor program to continue to support automotive innovation in Canada and for AUTO21 to continue through this new program," says Frise.

The Liberal government has placed considerable emphasis on providing scale up support for promising firms and Frise says the same rationale could easily be applied to successful NCEs that remain relevant and effective in their spheres of influence.

"We need to scale up successful NCEs and do it at an important level ... Don't shut it down regardless of impact", he says. "My board had a major issue with the sunset clause."

Secretariat defends clause

For its part, the NCE secretariat stands behind the sunset clause, arguing 15 years is ample time to establish enduring relationships with Canada's best researchers and funders. The clause's main objective is to free up funding for future networks that form in response to emerging challenges.

"The networks are considered and operate at arm's length. They're fully autonomous and take the networks in the directions they set, looking for additional funding and different ways of operating," says Jean Saint-Vil, acting associate VP in charge of the secretariat. "Top researchers can re-invent themselves and create or join new networks. It's not really true that networks last 15 years and disappear. They can re-invent and re-apply."

Saint-Vil says the NCE program was never meant to be the sole source of funding for the networks it supports. He notes that without the sunset clause new networks won't get funded.

"We participate in and are proud of success but people with new ideas need space and there's no way to create that space if there isn't a time line," says Saint-Vil. "(Sunsetting funding) should not preclude boards of directors from adapting to the realities of the time. Some NCEs have raised more money provincially than federally."

The NCE program is actively participating in the development of a new Innovation Agenda and the review of fundament science. Saint-Vil says the program is relevant to all six themes of the Innovation Agenda, particularly its aspiration to create world leading networks and clusters.

"We're making the case that 30 years of programming makes it logical that the program adapt to be a tool to help all research and innovation," he says.

Duncan weighs in

Science minister Kirsty Duncan raised the issue of NCE's sunset clause at an April 14th meeting of the House Committee on Industry, Science and Technology. In the context of the SCN and the review of fundamental science review, she asked: "Is there something that needs to be available afterwards?"

For ArcticNet — which sunsets in 2018 — Duncan's question is particularly relevant. After 12 years of helping to bring Canadian Arctic research back from near oblivion, the NCE is facing the reality of shutting down just when Arctic issues are coming to the fore.

ArcticNet executive director Leah Braithwaite says an extension similar to that received by the SCN would be helpful in ensuring that ArcticNet's impact will endure beyond its funding envelope.

"We would welcome similar treatment ... The sunset clause is a challenge for the Arctic research community and we could use the breathing room," says Braithwaite. "Canada now has a leadership role in Arctic science and the sustainable development issue is accelerating. We would also like to move more into continental (inland) Arctic research."

For Dr Louis Fortier, ArcticNet's scientific director, the work his network does in the Canada's north is too important to be sidelined by the sunset clause.

"Climate change and industrialization impacts in the Arctic are not going away and there is no going back to the dark ages of northern research in the 1980's and 1990's. Canada must sustain and further develop the integrated research approach developed by ArcticNet with the northern science community" he says. "The most direct way to achieve this is through a continuation of ArcticNet beyond its sunset date in 2018. The alternative of starting with a clean slate would be counterproductive and a set-back for Canada."

Fortier is proposing the creation of a multi-nodal Pan Arctic Research Institute with research centres across the north and incorporating other organizations such as the High Arctic Research Station, northern colleges and the Canadian Network of Northern Research Operators.

"Canada is the only northern nation without an institute and it could be a focal point for all the researchers and organizations working in the north,." says Braithwaite.

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