Work on overarching strategy continues as Alberta lays foundation for building a knowledge-based economy

Alberta is moving forward on the implementation of a provincial science and technology (S&T) strategy that aims to take full advantage of the province's resources and knowledge assets by focusing on a select number of key priority areas. Conceived by the Alberta Science and Research Authority (ASRA) and embedded with the concept of "intelligent intervention", the strategy will take on new momentum if recommendations by a recent Task Force on Value-Added and Technology Commercialization are implemented in the next Budget.

"We're being challenged to take a holistic look at what we have in place and put a paradigm around it and move forward. The paradigm is evolving and will see the light of day in the next one or two years," says Dr Bob Fessenden, DM, Ministry of Advanced Education and Technology (AET) and ASRA CEO. "All of the things you see in the province are part of an overarching plan that has not been well articulated or in the public domain. We're working on it."

From its inception in 1994, ASRA is now firmly established as the province's S&T advisory body, roughly paralleling the new federal Science, Technology and Innovation Council (STIC). In 2007 alone, ASRA advice has informed decisions for a $130-million investment in nanotechnology (R$, May 15/07) and the launch of Cybera Inc and the Alberta Ingenuity Fund's Accelerator program (R$, October 29/07).

building on a solid foundation

The result has been a significant influx of top-flight talent into the province, positioned to leverage provincial strengths in energy, life sciences, bioproducts and information and communications technologies. The recommendations of the Task Force, if implemented, will accelerate the transition in research and skills investment into the marketplace.

Fessenden asserts that recent funding and program initiatives in Alberta are part of an overarching strategy defined by "intelligent intervention" and targeting the primary resources sector, technology supply companies and the value-added sector. But he acknowledges that the province lags the rest of Canada when it comes to tech-based venture capital investment and tax incentives to attract firms to relocate or help them grow.

That's where the recommendations of the Task Force — led by David Martin, executive chairman of Smart Technologies Inc — comes into play. The Task Force made seven inter-connected recommendations, highlighted by a $100-million provincial contribution to a $300-million fund of funds to encourage capital markets to invest in start-ups and early-stage firms. It also calls for the creation of a provincial R&D tax incentive to complement the federal tax incentive program. (R$, September 19/07).

"Canada needs to evolve its thought processes. Innovation is not about R&D and S&T. It's about fostering the creation and growth of technology supply companies that are R&D-intensive and knowledge-based," says Fessenden. "It's all about building capacity and building on provincial strengths. The Task Force is a piece of the puzzle and addresses some of the missing pieces. I'm optimistic we will see some positive expression in the 2008 provincial Budget. The premier (Ed Stelmach) and our minister (Doug Horner) are out making positive statements about the Task Force and its recommendations."

A key reason for the heightened emphasis on S&T and innovation is the transition in provincial leadership. Former premier Ralph Klein's long tenure was defined by non-intervention and small government. Fessenden says Stelmach's approach marks a return to what he describes as intelligent intervention as practiced by both Peter Lougheed and Don Getty during a period when Alberta made some of its early investments in research, innovation and knowledge infrastructure.

national S&Tcooperation urged

Alberta's status as a significant engine of Canadian economic growth and wealth is growing rapidly, giving its strategy for incorporating S&T into plans for sustainable economic growth added weight. The election of Stephen Harper as prime minister initially raised hopes that Alberta's S&T voice would become louder on the national stage. But to date, the actions of the Conservative government have been largely unilateral, with a suite of matching-fund programs introduced without prior consultation.

Frustration over the introduction of federal programs requiring financial input from the provinces is not new. The issue came to a head in 2001 as the Liberal government of Jean Chrétien was preparing its innovation agenda. At a Quebec City meeting of S&T ministers, an agreement was reached that Ottawa would not introduce any new S&T programs without prior consultation with the provinces (R$, October 10/01). That agreement now appears to have been jettisoned.

"They're going it alone," says Fessenden, adding that the new federal S&T Strategy and the Centres of Excellence for Commercialization and Research are just two examples of federal unilateralism. "We need a truly national innovation strategy … The federal and provincial deputy ministers should get together at least two times a year with an active agenda. In the absence of a national agenda and action plan, Alberta is going it alone. We have no choice."

The release of the federal S&T Strategy was preceded by a series of new programs, of which CECR is the largest and most ambitious. Launched in two parts, the program has either a formal or informal requirement for matching funding. Yet rather than consult with the provinces to ensure compatibility with provincial priorities, the federal government dealt directly with universities.

While successful Centres must correspond to areas the government has determined are critical, those priority areas have been criticized as excessively broad. In addition, universities are mandated to focus on basic research and skills development and are arguable not the best vehicles to achieve successful commercialization.

The new programs have created a feeding frenzy at the university level and confusion among provincial governments. For the CECR, three of the 24 proposals invited to submit full applications are from Alberta. But none correspond to the province's stated priority areas, forcing choices between securing federal funds and backing strategic priorities.

"Universities are all about attracting sponsored R&D and generating revenues from intellectual property. It's a sub-optimizing system but policy encourages them to do this," says Fessenden. "It's driving them to the wrong direction and outcomes."

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