Current and Future Directions for the Canadian Research System

1. Current and Future Directions for the Canadian Research System Arthur J. Carty National Science Advisor to the Prime Minister Ryerson University Toronto May 18 2005 Office of the Bureau du National Science Advisor Conseiller national des sciences

2. Role and Priorities of National Science Advisor to the Prime Minister “The National Science Advisor is assisting the Government to ensure that investments are strategic, focused and delivering results, and is working to bring about a fuller integration of the Government’s substantial in-house science and technology activity.”Speech from the Throne, October 2004 • Position created in April 2004 • Provide sound, independent, non-partisan advice on directions and priorities • Long-term vision for Canadian S&T • Horizontal collaborations between various departments, agencies, institutions, and business • Balance excellence in S&T with benefits to society and the economy • International S&T and challenges of the developing world • Commercialization and innovation

3. International R&D: Trends • Government outlays on R&D as a % of GDP show the magnitude of government investments relative to the size of the economy • This measurement has been trending downwards since 1991 with the exception of Finland, Australia and Japan • Some reversal of this trend starting in 1998 and 1999 • Canada lost less ground than many countries in the 1990s and has seen some increases lately but remains at lower levels than those of its competitors Source: OECD MSTI, 2004 OECD data used for comparability – includes funding from all levels of governments

4. Canadian R&D Overview • In 2004-2005, total Canadian R&D expenditures are expected to reach $24.5 billion • Total Canadian federal S&T expenditures in 04-05 are projected to be $9.2 billion of which 63% ($5.8B) will be for R&D • R&D spending per capita in universities and research institutes is the highest in the G-8 • $13 billion in incremental investments committed to basic research from 1997-98 to 2003-04 • Almost 70% of this has been allocated in the last 4 years • Research environment has improved significantly in the academic sector

5. Federal R&D support - HERD

6. 1. Research Funding and Infrastructure Some Major Impacts of Recent Investments in University Research • More than doubling of Research Council Budgets (NSERC, CIHR, SSHRC) • Infrastructure and Equipment for Research Competitive with Best in World (CFI, GC, Councils) • Co-funding from provinces, partners has significantly enhanced investments • Networks of Centres of Excellence (now 21 NCEs) and 52 Community Research Alliances (SSHRC) have fostered collaboration and are models being followed around world • Canada is drawing international attention as a ‘hot spot’ and significant player in research internationally

7. 2. Attracting and Retaining Research Talent Some Major Impacts of Recent Investments in University Research • Canada Research Chairs Program and CFI funding have attracted outstanding young and established scholars from other countries • Rising Canadian stars have been retained • Faculty renewal occurring at a critical time. Over 3000 new faculty recruited at universities in 03-04 (incl. 700 from USA and 500 from other countries) • Significant growth in graduate student enrolment and post-doctoral community • 4000 new graduate fellowships • Overall employment in R&D community has risen

8. CANADA RESEARCH CHAIRS GRAND TOTAL CHAIRS: 1412 Breakdown of Total Foreign Chairs: 433

9. Investing in Canada’s Future • The federal government has committed $13B in incremental funding for research from 1997-98 to 2003-04 • Budget 2005 added a further $1.2B in direct S&T funding • Another $2.4B in new initiatives with a substantive science, technology and innovation component, particularly under themes of Climate Change and Sustainable Development and in Meeting our Global Responsibilities Federal direct and indirect expenditures on R&D, by performing sector (1992-2003*)

10. “The Scientific Impact of Nations 1993-2002” • David A. King, Nature, July 2004 • Analyses publication, citation and related data for a selected group of 31 countries (the comparator group) containing G-8 nations and 15 member countries of EU • Group accounts for 98% of world’s most highly cited papers • Top 8 countries produced 85% of top 1% most cited papers • Rank order (by share of top 1% cited publications), has Canada as 6th in the world • Canada also ranks 6th in share of total publications

11. Rank Order of Nations Based on Share of Top 1% Highly Cited Publications (1997-2001) NOTE: Top 8 countries produced 85% of top 1% most cited papers

12. Canada’s Research Input-output Footprint in the G8 PUBERD = Public expenditure on R&D HERD = Higher Education expenditure on R&D

13. Nations like Japan, China and Italy are on upswing US and Canada are sliding But impact of Canadian science is increasing Space science papers were 33% above the world average for last 5 years; Chemistry 28%; Clinical Medicine 34%... Moved from below to above average in physical sciences over past two decades Important to look at quality of research being produced Canadian Science, 1981-2001 Trends in Publications of Natural Sciences and Engineering China Canada Spain Italy South Korea Source: Science Metrix, 2004

14. S&T Funding Trends – A Federal Priority Federal Expenditures on S&T as a % of Federal Budget Estimates (1994-2003*) Average compound growth 1997- 2003 • Federal Spending (+ 2.7%) • S&T (+ 7%) * projected Source Statistics Canada Cat No. F88-204 XIE

15. “The next challenge is to turn more of Canadians’ bright ideas into dynamic businesses, great jobs and growing export earnings. To that end, the Government will ensure a supply of venture capital, particularly for early-stage businesses.” -Speech from the Throne, October 2004 Innovation & Commercialization • Improve risk financing • Enhance Canadian skills and training for commercialization • Facilitate partnerships, collaboration between business and the research base • Facilitate linkages of Canadian firms to international markets

16. Innovation & Commercialization • Foster early use and procurement of new technology based products and processes • Ensure the regulatory and tax environment supports commercialization • Support and grow SMEs • Generate effective indicators and measures

17. Investments • Industrial Research Assistance Program (NRC-IRAP) • Linkages to over 12,000 SMEs • National network of 260 Industrial Technology Advisors • $167 M/year • $ 25 M in new funding in Budget 2004 • Sustainable Development Technology Canada (SDTC) • $350 M fund for demonstration and pre-commercialization • Business Development Bank of Canada (BDC) • New financing announced in 2004 • $100 M for pre-seed and seed investments • $100 M to support the creation of specialized VC funds • $50 M for innovative start-up and early-stage companies • Pilot Programs for Technology Transfer • Universities - $50 M / 5 years • Federal Laboratories - $25 M / 5 years

18. Budget 2005 Overview A Productive, Growing and Sustainable Economy

19. Overall Assessment Budget 2005 Overview • S&T remains a continuing priority for the federal government in support of its public policy goals • Close to $1B identified as Higher Education Research Support • Rest of $1.2B will have university components • Another $2.4B in new initiatives with a substantive science, technology and innovation component particularly under the themes of Climate Change and sustainable development and in meeting our Global responsibilities • Research Councils and Agencies have been exempt from Expenditure Review Process

20. S&T and Innovation: Policy Challenges for Canada • Maintain leading G8 position for HERD/GDP and build on the strong research base • Harvest economic and social benefit to Canadians of R&D investments through knowledge transfer and commercialization • Stimulate industrial R&D expansion and collaboration • Increase international collaborations across the innovation spectrum • Revitalize government science to respond to the priority policy challenges facing Canadians • Develop national strategies in emerging areas – e.g. nanotechnologies, quantum information technology, biotechnology, sustainable energy and environmental technologies, northern science

21. The Canadian Academies of Science • Federally -incorporated, not-for-profit organization which joins together Canada's three internationally recognized national academies – Modelled after the US National Academies of Science • Budget 2005 announced $30M: • Carry out government requests for independent expert assessments on the state of scientific knowledge underpinning policy issues facing Canadians • Ensure that Canada is represented effectively in international fora where important questions of scientific methods and findings are being discussed • Agreement now signed by all three founding agencies and Industry Canada • Treasury Board has approved CAS Treasury Board Submission

22. Big Science • Large scale scientific projects and facilities have become more complex, costly, interdisciplinary and international • Poses important science policy challenges for governments and academia on how we agree on priorities, make decisions and manage investments in big science • Need for an accountable and transparent procedure to manage major science investments including evaluation, revision, approval, prioritization, and monitoring of projects from creation, through operation to decommissioning • Discussion paper released for comment in February • Final draft planned for fall Photo courtesy of Canadian Light Source Inc.

23. Big Science Process for Evaluation, Funding and Oversight of Major Science Investments Government of Canada Funding decision Recommendations on Priorities Proposal Development Oversight and Management Committee Major Science Investment Panel Proposal Evaluation Secretariat Logistical and Analytical Support

24. Canada’s International Legacy • Mobilize Canada’s S&T assets in support of foreign policy goals especially with respect to international development • Prime Minister’s challenge to devote 5% of S&T investments to developing world issues • $20M in Budget 2005 for new international S&T agreements: India, China and Israel • Need to bring together the leaders of Canadian research community to discuss issues and opportunities: October 2004 Roundtable • Embedding S&T in International Policy Statement as an essential driver of trade, investment, development and diplomacy • Partner with the UK in lead up to the G8 summit in Gleneagles; Canada-UK-Africa workshop on partnerships for S&T • Canada hosts Carnegie meeting in Victoria – June 2005

25. Canada’s International Legacy “Our strategy for international commerce has moved well beyond simply looking for export markets, and marketing our natural resources . . . In today's economy, it is ever more important to promote strong international investment and scientific and research relationships around the world . . . The future belongs to knowledge-based economies, and steps are being taken now by government and the private and academic sectors to make sure Canada is equipped to benefit.” Prime Minister Paul Martin, Foreword to Canada’s International Policy Statement April 2005

26. International Polar Year 2007-08 • Commitment for the creation and support of a national steering committee and secretariat • Milestone for delivering on a Northern Science Strategy for Canada • A major, exciting opportunity to show national and international leadership • Focus on human dimensions will provide a unique opportunity to link social and natural sciences • Critically important issue given arctic vulnerabilities to climate change

27. Conclusions • Canada has built a strong base in research and development but we must not be complacent • Continued, sustainable investment in all sectors of science and technology – university, industry, and government - is key to reaching Canada’s social and economic goals • Collaborations that cross disciplines, institutions, and national borders are imperative if Canada is to reap the benefits of its investment • International cooperation at all stages of the science, technology and innovation spectrum is key