Economic Strategy Tables set the bar for achieving global competitiveness in six key sectors

The federally appointed Economic Strategy Tables (EST) have delivered their final report on schedule, with recommendations including a network of sector-specific Canadian Technology Adoption Centres that will be considered in the run-up to the next federal Budget. The collective report by all six tables contains “six signature initiatives” (see chart) with the economic potential to add $318 billion or 15% to the GDP by 2030 compared to 2017 levels, and boost median household income by $13,000.

The ESTs were originally announced in Budget 2017, responding to a recommendation by the Advisory Council on Economic Growth. The industry-led tables aim to significantly bolster Canada’s competitiveness and output in six key technology-driven sectors by 2025: advanced manufacturing, agri-food, clean technologies, digital industries, health and biosciences and resources of the future.

Budget 2017 challenged the tables to establish ambitious growth targets, set challenges and develop strategies. It also identified three bottlenecks they are required to address: the need to improve R&D investment, a lack of skilled workers limiting expansion, and better access to export markets. Each table issued interim reports earlier this year

All six tables have issued sector-specific reports, as well as contributing to an omnibus final report (Seizing opportunities for growth) that urges all sectors to “act now … to leapfrog other countries … We need to give our country a jolt”.

The umbrella report makes clear that its reports are the first phase of a long-term effort to boost the six tech sectors. Phase II is expected to maintain momentum, sustain the tables, refresh their membership and connect to the five approved superclusters which are still in the early stages of their formation.

[rs_quote source="Seizing opportunities for growth"] “We need to be competitive (by) establishing a competitive system that is attractive to private investors. It includes activating the potential of our entire domestic workforce and attracting talent from other countries to round out our capacity. It means investing in digital and physical infrastructure (and) making our regulations more modern and agile. It demands that all sectors ramp up their adoption of new technologies”[/rs_quote]

The sector-agnostic signature initiatives and measures required to achieve success comprise the bulk of the report.

Own the Podium – Taking its title from 2010 Winter Olympics program to successfully boost Canada’s medal count, this initiative will select and scale up companies with the greatest potential for becoming globally competitive. The report notes that, with proper selection, strong leadership, mentorship and existing market traction and validation, Canada can produce enough of these types of firms to achieve global market success and assist in cluster development. To do so, however, will require more agile and speedy government programs, access to financial services and use of existing programs such as Innovation, Science and Economic Development’s Accelerated Growth Service.

Technology Adoption - A network of sector-specific Canadian Technology Adoption Centres (CTAC) is being proposed to pursue a host of objectives: technology showcase adoption opportunities, support for company development of digital-first managerial skills and cultures, piloting value-based procurement, furthering Industry 4.0 and hosting digital assessment and adoption tools. The CTACs would be run by new or existing not-for-profit organizations.

The tables are also recommending a digital technology readiness tool, drawing on experience from past programs such as the National Research Council’s Digital Technology Adoption Pilot Program.

In addition, the tables call for a review of tax incentives in response to recent tax policy changes in the US. For instance, the report recommends matching the US 100% depreciation deduction in the first year for equipment investments. Perhaps more significantly, the tables urge the government to redesign the Scientific Research & Experimental Development tax incentive program “to support more high-performing scale-ups to increase our chances of building billion-dollar anchor firms”, while allowing low-performing firms to fail and free up tax dollars.

Brand Canada - The nation’s technology brand is not as nearly as strong as its major competitors such as the US, Germany and China. The tables recommend industry-government cooperation in enhancing the brands of the six key tech sectors, building on the work of Export Development Canada. This effort should also include Canada’s natural attributes of resources and open spaces as well as its multicultural makeup and reputation as a trustworthy partner. Recommended is a social marketing campaign to increase Canadian pride, based on programs such as Heritage Minutes, Bell Tel’s Talk and ParticipACTION.  Sweden’s successful efforts to build brand awareness is profiled.

Agile Regulations - The report contends that, while Canada’s regulatory system is world class, it’s also “complex and inefficient with no defined outcomes and timelines, layered with a multi-jurisdictional structure with no clear authority”. It recommends making the system more outcomes-oriented, assigning clear authority and aligning with global best practices. It must also be predictable, technology agnostic, use pilots and sandboxes “to ensure the regulatory system can keep pace with advances in technology and innovation” and be subject to continuous review. It calls for an Innovative and Competitive Regulations Council for each economic sector, reporting to First Ministers on a regular basis. A convenor body should also be created to act as a council secretariat. The tables also call on the minister of Intergovernmental and Northern Affairs and Internal Trade to “set an ambitious timeline” for breaking down internal trade barriers

Infrastructure (Digital & Physical) – Infrastructure – particularly digital — is viewed by the tables as “our nation-building imperative” requiring a “strategic approach with a rolling, long-term national infrastructure plan that maps projects against market opportunities and emerging technologies.” The report says the tables recognize the high cost of infrastructure and notes the Infrastructure Bank as an important mechanism for improving the country’s 16^th place ranking out of 137 countries last year. It says the aim should be to have, by 2025, “100% universal, affordable next-generation Internet access”. By establishing interoperable data platforms and big data libraries and utilizing existing programs such as Innovative Solutions Canada and the Strategic Innovation Fund, Canada can create the necessary infrastructure to achieve growth targets. It also mentions the need to update privacy frameworks and harmonize them into a single standard, in response to the European Union’s recent implementation of the General Data Protection Regulation (GDPR).

Skills & Talent – The creation of sector-specific skills and talent collaboration hubs would go far towards determining the kinds of skills required for the six key sectors, driving the “development of industry-led roadmaps” and engaging all players at the federal and provincial levels. Inclusion, lifelong learning and redesigned curricula would help to establish Canada as a leader in talent generation and attraction, the report contends. Like previous labour-focused reports, the tables recommend starting as early as kindergarten to “increase awareness of the opportunities available in a range of fields and careers.”

R$