From the RE$EARCH MONEY Archives: Canadian STI can't get a break as economic and political forces hobble advancement

It's been a decade of highs and lows as science and technology struggles to position itself as a key component of the federal government's — and Canada's — priority agenda. High international rankings for science have earned Canadian researchers well-deserved praise for exploring the frontiers of several key fields. At the other end of the innovation spectrum, commercialization and corporate R&D are weak with little indication of a turnaround, presenting a policy challenge that has yet to be adequately addressed.

The last decade was disrupted by a severe recession, the aftershocks of which are still reverberating across an economy shaking once again with the collapse of oil and other commodity prices. An overwhelming policy and programmatic focus on Canada's resource industries has left Canada vulnerable. Yet the current environment offers an opportunity for S&T to come forward as the driver of a knowledge-based economy. And the federal government appears ready to finally embrace economic diversification — especially manufacturing — in the months leading up to a national election, likely this fall.

As Canada's primary outlet for news and analysis of R&D and S&T, RE$EARCH MONEY has reported on the key trends and events shaping the national innovation system for 29 years. Between 2005 and 2014, the image of Canada as a potent source of research and technological innovation has struggled with accusations of muzzling federal scientists, and policies that have weakened business R&D and reduced support for basic research. The refreshed science, technology and innovation (STI) strategy has done little to assuage concerns and criticism, as opposition to federal S&T policy and practice persists in academic and government circles.

RE$EARCH MONEY has combed through its archives to identify the most cogent trends and developments within the Canadian S&T enterprise. We've compiled a list of noteworthy, hot-linked headlines so that readers can revisit some of the stories that defined a decade of Canadian STI (see opposite page). A comprehensive list of highlights can be found on-line at www.researchmoneyinc.com.

The beginning of the decade (2005) captures the tail end of the Liberal government, which held power from 1993 to 2006. Money continued to flow to STI, a commercialization strategy was in the works and the Office of the National Science Advisor (ONSA) was gaining traction. That all changed when the January/06 election saw the Conservative Party gain power. Although the impact on STI with the change in government wasn't immediately evident, the shift in policy towards business innovation at the expense of basic science was underway.

A hastily assembled S&T strategy released in mid-2007 provided a loose framework for the introduction of new policies and programs focused on leveraging a triumvirate of advantages (entrepreneurial, knowledge, people) around a handful of broad S&T research priorities.

Those priorities were further enhanced with a series of sub-priorities by the Science, Technology and Innovation Council (STIC), which was formed following the elimination of the ONSA, leaving Canada as one of the few advanced industrialized nations without a national science advisor or chief scientist.

Corporate R&D declines

On the industrial front, the cracks in corporate R&D were beginning to appear. The demise of R&D juggernaut Nortel Networks — while offset somewhat by the rise of Research in Motion (Blackberry) — triggered a shift towards risk aversion that has only escalated, despite federal attempts to encourage industry-academic collaboration and the fostering of world class talent.

Compounding the dilemma was the 2008 recession and escalating globalization which has led to the hollowing out of several key Canadian high tech sectors, most notably pharmaceuticals, electronics and fuel cells. The continuing strength of Canada's aerospace industry is one of the few bright spots on the industrial S&T landscape, although information technology and telecommunications have managed to hold their own and succeed in the global market.

Given the depth of the declines in corporate R&D, it's not surprising that high-level policy advice from STIC appears to have had little impact on the shrinkage of Canada's high-tech sector. Indeed, it's near impossible to determine the impact (or lack thereof) of STIC, given its mandate of providing confidential advice to government.

However, STIC does issue public biannual reports on the state of S&T in Canada and the difference in tone between the 2010 and 2012 iterations is stark. Unlike the 2010 version, the 2012 State of the Nation report notes that even Canada's oft-cited top ranking in higher education R&D is being eroded, with other nations more aggressively supporting academic-based research.

And while noting Canada's "strong macroeconomic fundamentals", the STIC report also found corporate R&D performance worrisome.

The later part of the decade saw several key reports issued , recommending that the government shift the balance of support for industry R&D away from tax-based indirect mechanisms to include more direct support. Reports from the influential Council of Canadian Academies also sought to explain the paradox between Canada's research strength and innovation weakness.

Federal response was controversial as the government shifted the emphasis of its support for the research granting councils towards industry priorities at the expense of fundamental research, rather than increasing their overall allocations.

The government also had to contend with an increasingly activist research community that criticized government research communications policy for federal scientists and the continuing decline of support for basic research and federal labs.

Last year, expectations that the government's refreshed STI strategy would usher in a bold new era for S&T were largely dashed with the quiet release of the document. While the tone, language and context of the strategy had been updated, there was little new on display, other than the belated recognition of advanced manufacturing as an essential driver of the knowledge economy going forward.

Perhaps most disappointing is the inability of the government to rejuvenate its support for S&T in the forthcoming Budget. A projected surplus has been consumed by huge reductions in oil-based tax revenues and large family-oriented tax breaks, leaving no money for new initiatives. It appears that the patience of the S&T community will be stretched even further.

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