It’s widely recognized that Canada is pretty darned good at the research and development of innovations, including those in clean technology arena, but fails when it comes commercializing cleantech. Budget 2017 is attempting to fix what Canada doesn’t do well with both money and new approaches.
For all the money related matters, refer to the Budget 2017: Feds give greater support to cleantech Canadian Green Tech article.
The Liberals appear to have heard from many upstart and emerging companies that securing federal grants or applying for other funding opportunities is a challenge. With myriad government programs spread across various government departments, these firms simply don’t know where to start or where to go. With that in mind, the federal government is looking to establish Innovation Canada, an organization that will in time, “serve as a one-stop-shop for Canada’s innovators.”
To be housed within the Department of Innovation, Science and Economic Development (ISED), Innovation Canada will create innovation opportunities across six key sectors: advanced manufacturing, agri-food, clean technology, digital industries, health/bio-sciences and clean resources. Described as Economic Strategy Tables, they will also identify sector specific challenges and bottlenecks to innovation.
“Canadian innovators and entrepreneurs will no longer need to spend time figuring out which department to go to or which program best meets their needs. Innovation Canada will host the federal government’s simplified suite of innovation programs that will better enable and support Canadian innovators,” reads Budget 2017.
As part of the new single window approach, the Liberals also plan to review all existing innovation programs. This whole of government evaluation will encompass all relevant federal organizations, including ISED, Natural Resources Canada, and Agriculture and Agri-Food Canada. As well, the government is going to review the Scientific Research and Experimental Development (SR&ED) tax incentive program to ensure its continued effectiveness and efficiency.
Leveraging clusters into Superclusters
Citing successful efforts in Silicon Valley, Tel Aviv, Berlin and the Toronto-Waterloo corridor, the Liberals want more of these in Canada and is offering up $950 million over five years, starting in 2017-2018 for the creation of superclusters. The government will award the funding on a competitive basis to a small number of business-led clusters “that have the greatest potential to accelerate economic growth.”
Expected to launch in 2017, the competition will focus on a number of sectors including clean technology. Others are: advanced manufacturing, agri-food, digital technology, health/bio-sciences and clean resources, as well as infrastructure and transportation.
The $950 million isn’t new money, it’s being taking from previously announced initiatives - $800 million from the Budget 2016 provision for innovation networks and clusters and $150 million from the public transit and green infrastructure allocations provisioned in the 2016 Fall Economic Statement.
Solving Canada’s big challenges
The Liberal government is a big believer in using innovation to solve challenges and this is exactly what it’s doing with its proposed Impact Canada Fund. It will initially focus on two areas: clean technology and smart cities.
The clean technology stream will have up to $75 million over two years, starting this fiscal year, to help Canada’s rural and remote communities reduce their reliance on diesel-based power.
The smart cities stream, with $300 million over 11 years, will support a smart cities challenge. Based on a similar competition in the US, the challenge wants participating communities to develop plans that improve the quality of life for urban residents, through better city planning and implementation of clean, digitally connected technology including greener buildings, smart roads and energy systems, and advanced digital connections for homes and businesses.