Throne Speech’s emphasis on innovation ensures place among government priorities

Funding reallocation increasingly likely

The S&T community breathed a collective if tentative sigh of relief following the September 30 Speech from the Throne and prime minister Jean Chretien’s official reply. Both addresses included sections on Ottawa’s commitment to innovation, helping to alleviating fears that it may be severely downgraded or dropped entirely from the government’s list of priorities.

The Throne Speech devoted considerable space to Ottawa’s commitment to research, skills and innovation, pointing to several initiatives such as additional funding for the granting councils, assistance for smaller firms, indirect costs of university research and “strategies” to commercialize post-secondary research output.

Optimism over the speech’s contents was tempered, however, with the wording that accompanying the section on innovation, suggesting that significant new spending may not be forthcoming in the next Budget.

After stating that the government will build on investments in research, literacy and education, it added: “The government will reallocate resources to the highest priorities and transform old spending to new purposes”.

Over the past two months, the government has vigorously spread the word that the healthy Budget surpluses enjoyed for the past three years likely won’t be repeated this year or next. Finance minister John Manley has stated unequivocally that he will not table a deficit Budget, meaning far fewer resources for priority items. Therefore innovation must compete with higher profile issues such as health care, climate change, child poverty and international aid.

NEW INNOVATION FUNDING MAY BE SCARCE

Within the new context of pending fiscal austerity, however, the Throne Speech and Chretien’s reply were music to the ears of those who feared that innovation had slipped down or fallen off the government’s agenda. Those concerns were fanned by several factors, such as the delay of the National Innovation Summit, rumours that Industry minister Alan Rock was about to resign from Cabinet to jump-start his leadership campaign and Rock’s absense from the regional summits taking place across the country.

But Rock has not resigned, and he has begun to make appearances at the regional summits in late September and October.

SEARCHING FOR SIGNS

The Throne Speech is typically a poor place to look for deriving information on specific initiatives or proposals, and this version was no exception. Instead, analysts and observers resort to a variation on the reading of tea leaves to develop opinions on what may go forward for funding. More than three pages of the Throne Speech were devoted to issues directly and indirectly relating to innovation and cover a broad range of issues that have been on the government’s radar for some time (see chart). Particularly interesting is the broadening of the innovation agenda to include the environment and cities, while any mention of innovation or R&D being utilized for security or anti-terrorism initiatives were notably absent.

Once again, university research funding is front and centre, with no mention of the role colleges could potentially play in the innovation system. Commercialization is also tied to the university system, suggesting that a fund or program controlled from outside of the academic realm has yet to resonate within Cabinet.

A note of hope for federal departments and agencies was delivered with the mention of strengthening government science. The statement was followed of a thumbnail description of the Federal Innovations Networks of Excellence (FINE), the proposed new program which is the focus of a $170-million anti-terrorism pilot program. The likelihood of FINE being expanded to other areas of national priority is certainly good news for government scientists.

What’s uncertain, however, is whether such a dramatic re-orientation of federal S&T will be accompanied by more money. A recent two-day forum on federal S&T heard from a senior departmental bureaucrat that new funding may be wishful thinking, at least in the short term. (A feature article on the Federal S&T Forum will be featured in the next issue of RE$EARCH MONEY).

The Throne Speech also committed the government to develop a new regulatory strategy tied to innovation and economic growth as well as health and sustainability. It will also aim to reduce the administrative burden on business.

CHRÉTIEN’S INNOVATION COMMENTS BRIEF

The inclusion of innovation in Chrétien’s reply to the Throne Speech have also allayed concern that he was not committed to innovation as part of his so-called legacy agenda. Perhaps mindful that the results of innovation rather than innovation per se resonate with the electorate, the subject was given relatively short shrift. Points raised in the Throne Speech were telegraphed into just four sentences, touching on indirect costs, graduate studies, increased R&D investments, skills and learning and his participation in the National Summit.

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