Canada's Innovation and Skills Plan

Canada's Innovation and Skills Plan
Name	Canada's Innovation and Skills Plan
Jurisdiction	Canada
Launched	2017
Minister	Bill Morneau
Agencies	Innovation, Science and Economic Development Canada, Business Development Bank of Canada, Natural Sciences and Engineering Research Council of Canada
Budget	C$ billion-level allocations

Canada's Innovation and Skills Plan was a federal policy initiative announced in 2017 to strengthen Canada's capacity in advanced industries and workforce training. It sought to align investment in research and technology commercialization with regional development objectives by coordinating agencies such as Innovation, Science and Economic Development Canada, Export Development Canada, and crown corporations. The plan emphasized collaboration among postsecondary institutions like the University of Toronto, polytechnics such as the British Columbia Institute of Technology, and private-sector actors including BlackBerry, Magna International, and Bombardier.

Background and objectives

The plan built on prior initiatives including the Strategy for Patient-Oriented Research and the Canada First Research Excellence Fund, aiming to respond to trends in automation and global competition exemplified by events like the US–Mexico–Canada Agreement negotiations and the rise of China's Made in China 2025. Objectives included boosting research commercialization capacity at institutions such as the University of British Columbia and the University of Waterloo, increasing investments through vehicles like the Business Development Bank of Canada, and expanding skills training through partnerships with provincial actors such as the Government of Ontario and the Government of Quebec. It targeted sectors exemplified by companies like Sierra Wireless and initiatives such as the Perimeter Institute to leverage strengths in quantum, artificial intelligence and clean technologies associated with locations like Waterloo, Ontario and Montréal.

Key programs and initiatives

Major components included the Innovative Solutions Canada program, the Strategic Innovation Fund, and enhancements to granting councils including the Natural Sciences and Engineering Research Council of Canada, the Social Sciences and Humanities Research Council, and the Canadian Institutes of Health Research. The plan supported talent pipelines through collaborations with Indigenous Services Canada and institutions such as Niagara College and Sheridan College while promoting entrepreneurship with accelerators like MaRS Discovery District and investors such as the Business Development Bank of Canada. Sector-focused initiatives targeted firms comparable to CAE Inc. and OpenText, and regional growth through programs tied to the Atlantic Canada Opportunities Agency, the Pacific Economic Development Agency of Canada, and the Federal Economic Development Agency for Southern Ontario.

Governance and funding mechanisms

Governance relied on federal departments including Employment and Social Development Canada and agencies like Export Development Canada alongside partnerships with provincial ministries such as Ontario Ministry of Research, Innovation and Science and municipal actors like the City of Montréal. Funding channels included targeted grants through the Canada Foundation for Innovation, repayable contributions via the Strategic Innovation Fund, and loan guarantees from the Canada Infrastructure Bank. Oversight and evaluation intersected with bodies like the Parliament of Canada's committees and independent advisers drawn from institutions including McGill University, Simon Fraser University, and think tanks such as the Fraser Institute and the Conference Board of Canada.

Impact and measurable outcomes

Reported outcomes cited increases in R&D investment by firms similar to Celestica and Linamar Corporation, growth in patent filings at offices like the Canadian Intellectual Property Office, and expanded enrolment in technical programs at colleges such as Conestoga College and George Brown College. The Strategic Innovation Fund supported projects involving multinational partners like Siemens and General Electric while the Innovative Solutions Canada program awarded contracts to startups akin to Element AI and Thalmic Labs. Metrics tracked by agencies such as the Statistics Canada included employment shifts in regions like Greater Toronto Area, export performance linked to Global Affairs Canada data, and commercialization outcomes measured by university tech transfer offices at McMaster University and Université de Montréal.

Criticisms and challenges

Critiques arose from stakeholders including labour organizations like the Canadian Labour Congress, academic bodies such as the Association of Canadian Universities, and provincial actors in Alberta and Saskatchewan who argued funding favored large firms over SMEs and regional priorities. Evaluators pointed to procurement hurdles criticized by entrepreneurs at incubators like Communitech and questioned the sufficiency of support compared to programs in United Kingdom and Germany. Concerns were raised about coordination between federal agencies including Innovation, Science and Economic Development Canada and research councils, and about measurement frameworks used by the Office of the Auditor General of Canada and parliamentary committees.

Legacy and subsequent policy developments

Elements of the plan influenced successor policies under ministers including Navdeep Bains and later François-Philippe Champagne, informing investments through initiatives such as expanded R&D tax credits, renewed strategic funds, and funding models echoing international programs like Horizon Europe and the National Science Foundation collaborations. Provincial programs in British Columbia and Nova Scotia adapted elements for regional innovation strategies, and public-private collaborations with firms such as Shopify and research centres like the Perimeter Institute continued to shape Canada's innovation ecosystem. Debates sparked by the plan informed later legislation and fiscal frameworks reviewed by the Parliament of Canada and advisory panels drawing members from Royal Society of Canada and industry associations.

Category:Innovation in Canada