Departmental Results Report 2017–18 - Planning and performance reporting

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Innovation, Science and Economic Development Canada

2017–18

Departmental Results Report

The Honourable Navdeep Bains, P.C., M.P.

Minister of Innovation, Science and Economic Development

________________________________________________

The Honourable Kirsty Duncan, P.C., M.P.

Minister of Science and Sport

_______________________________________________

The Honourable Mélanie Joly, P.C., M.P.

Minister of Tourism, Official Languages and La Francophonie

________________________________________________

The Honourable Mary Ng, P.C., M.P.

Minister of Small Business and Export Promotion

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This publication is available online at http://www.ic.gc.ca/eic/site/017.nsf/eng/h_07615.html.

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Cat. No. Iu1-23E-PDF ISSN 2561-164X

Aussi offert en français sous le titre Rapport sur les résultats ministériels 2017-2018.

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Ministers’ message

We are pleased to present the 2017–18 Departmental Results Report for Innovation, Science and Economic Development Canada.

Over the past year, through integrated work across the various organizations of the Innovation, Science and Economic Development Portfolio, the Government of Canada worked very hard to improve Canada’s global competitiveness while creating jobs, nurturing growth and

strengthening our country’s middle class.

In 2017-18, the Portfolio continued to implement the Innovation and Skills Plan to promote innovation and science, including support for scientific research and the commercialization of research and ideas. The Plan also encourages Canadian small businesses to grow, scale-up, and become more productive, more innovative and more export-oriented. An important area of this work included promoting increased tourism in Canada and the creation of new opportunities in our tourism sector. The Plan’s overarching aim to position Canada as an innovation leader has been the driving focus of the Portfolio’s programs.

The Department of Innovation, Science and Economic Development Canada is making great strides in its contributions to the Plan. These efforts have helped to support entrepreneurs and innovators in all regions of the country, by ensuring that Canadians have access to the training and skills they need, and by helping Canadian businesses innovate and promote sustainable growth. More specifically, in 2017-18 the Department delivered a number of high-profile programs to make Canadian industry more competitive, including the Innovation Superclusters Initiative, Innovative Solutions Canada, and the Strategic Innovation Fund.

In addition, significant progress was achieved in year-one of the implementation of Canada’s Tourism Vision. Investments of over $1.3 billion in science, technology and innovation capacity benefitted thousands of researchers and students across the country. This includes funding for

The Honourable Navdeep Bains Minister of Innovation, Science and Economic Development

The Honourable Mélanie Joly Minister of Tourism, Official Languages and La Francophonie

The Honourable Kirsty Duncan Minister of Science and Sport

The Honourable Mary Ng Minister of Small Business and Export Promotion

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2 Ministers’ message

the Canada Foundation for Innovation and the Post-Secondary Institutions Strategic Investment Fund. The Government of Canada firmly believes in the importance of science to improve the well-being of Canadians, as underscored by the historic investment of nearly $4 billion in

research and the next generation of researchers announced in Budget 2018. In addition, the Chief Science Advisor was also appointed to ensure that government science is fully available to the public, that scientists are able to speak freely about their work, and that scientific analyses are considered when the Government makes decisions. Furthermore, in preparation for the next steps of the Innovation and Skills Plan – announced in Budget 2018 – the Department began work on the Women Entrepreneurship Strategy, a comprehensive, whole-of-government plan to help women grow their businesses through access to financing, talent, networks and expertise.

Through deep collaborations and inclusive partnerships, the Innovation, Science and Economic Development Portfolio organizations have embarked on a shared journey to stronger, cleaner and more inclusive economic competitiveness that benefits all Canadians. This report documents the contributions that the Department is making towards this important work.

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Results at a glance

What funds were used?

(2017–18 Actual Spending)

Who was involved?

(2017–18 Actual Full-Time Equivalents)

$2,355,938,284 4,910

Implementing Canada’s Innovation and Skills Plan

Launched in Budget 2017, the Innovation and Skills Plan responds to the mandate letter commitment to implement Canada’s Innovation Agenda. Innovation, Science and Economic Development Canada (ISED) implemented several Innovation and Skills Plan initiatives, including the Innovation Superclusters Initiative, six Economic Strategy Tables, CanCode, the Strategic Innovation Fund, Innovative Solutions Canada, and the Innovation Canada one-stop shop for Canadian businesses. This work included extensive collaborations, which is essential in today’s knowledge-based economy. For example, Canada’s five superclusters represent

collaboration between more than 450 businesses, including over 300 small and medium-sized enterprises, 60 post-secondary institutions and 180 other participants from across Canada’s innovative industries.

Supporting scientific innovation and world-class research

ISED supported infrastructure projects to improve the facilities for research, innovation and specialized training at post-secondary institutions across the country through the Post-Secondary Institutions Strategic Investment Fund and the Canada Foundation for Innovation’s Innovation Fund that, combined, announced more than 200 projects in 2017-18. ISED also supported Canada’s Chief Science Advisor, Dr. Mona Nemer, and her mandate to provide advice to the Minister of Science and members of Cabinet as appropriate and requested on key scientific issues.

Increasing high-speed broadband coverage

To better position Canadians in all regions of the country to take advantage of the opportunities afforded by the digital age, ISED will provide improved Internet speed and coverage to 739 rural and remote communities through the Connect to Innovate (CTI) program. As of March 31, 2018, 138 CTI projects have been announced, totalling $300 million in funding since the program’s launch in December 2016, with $413 million of leveraged funds. High speed connectivity is critical to the prosperity and wellbeing of Canadians across the country, which is why ISED works closely with all of the provinces and territories to provide Canadians in rural and remote locations with access to high-speed Internet through CTI and to leverage funds so that the maximum number of communities can benefit from the CTI program.

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4 Results at a glance

Maintaining an efficient and competitive Canadian marketplace

ISED continued its role as a regulator in areas such as telecommunications, trade measurement, insolvency, federal incorporation and intellectual property to help maintain an open and efficient Canadian marketplace. Through Measurement Canada, ISED ensured the inspection of 153,400 gas pumps, scales and other measuring devices in 2017–18 in the eight sectors with mandatory re-inspection requirements. ISED also promoted competition through its investigations of anti- competitive behaviour, advocacy work and reviews of mergers and significant foreign

investments to ensure they provide benefits to Canadian businesses and consumers. In 2017-18, this included the Competition Bureau taking legal action against key players in the car rental industry and ISED receiving and certifying a total of 743 notifications filed by foreign investors.

Supporting Canada’s participation in trade agreements

To ensure Canadians can enjoy the benefits of increased trade and Canadian companies’

preferential access to various global markets, ISED supported negotiations for various free trade agreements, including the North American Free Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and negotiations towards free trade agreements with MERCOSUR and the Pacific Alliance. The Department also worked

successfully with provincial and territorial officials to strengthen internal trade and reduce trade barriers within Canada. The Canadian Free Trade Agreement (CFTA) came into force on July 1, 2017 and is helping to achieve a modern and competitive economic union. The Department made significant strides in collaborating with provinces and territories through the CFTA’s new

processes and working groups.

Supporting small businesses and the tourism sector

The Canada Small Business Financing Program (CSBFP) helped businesses get access to loans that would otherwise not be available or would only be available under less favourable terms. In 2017–18, 5,901 loans worth $1.2 billion were registered with the CSBFP, with start-ups (i.e.

businesses in operation for less than one year) receiving the majority of the loans (57 percent).

The BizPaL service, led by ISED with collaboration between all levels of government, continued to facilitate access for entrepreneurs and business owners to the permits and licences they require to start and grow their businesses. In 2017-18, a BizPaL Restaurant Bundle project was

implemented with Ontario in the Toronto area, providing local restauranteurs with a dashboard view of their compliance journey.

In 2017–18, ISED also implemented Canada’s Tourism Vision, a five-year whole-of-government approach to support growth in the Canadian tourism sector. In its first year, the Vision

accomplished several key milestones and progressed towards its overarching goals that will strengthen the industry and create prosperity and jobs. In 2017, Canada welcomed a new record high 20.8 million international tourists, surpassing the previous record of 20.1 million

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established in 2002 by 3.9%. Through the development of a strategic plan, ISED also launched the Canada-China Year of Tourism (CCYT) in 2018 which kicked off a series of events and activities that will strengthen people-to-people and business-to-business ties.

For more information on ISED’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.

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Raison d’être, mandate and role: who we are and what we do

Raison d’être

Innovation, Science and Economic Development Canada (ISED) helps Canadian businesses grow, innovate and export so that they can create good quality jobs and wealth for Canadians.

The Department works with provinces, territories, municipalities, the post-secondary education system, employers and labour to improve the quality and impact of its programs that support innovation, scientific research and entrepreneurship, in order to build a prosperous and innovative Canada. The Minister of Innovation, Science and Economic Development is responsible for this organization.

Mandate and role

ISED helps Canadian businesses grow, innovate and expand so they can create good-quality jobs and wealth for Canadians. It also supports science research and the integration of scientific considerations into investment and policy choices. The Department helps small businesses grow through trade and innovation and promotes increased tourism in Canada. The Department also works to position Canada as a global centre for innovation where investments support clean and inclusive growth, the middle class prospers through more job opportunities and companies become global leaders.

ISED's efforts focus on improving conditions for investment, supporting science, helping small and medium-sized businesses grow, building capacity for clean and sustainable technologies and processes, increasing Canada's share of global trade, promoting tourism, and building an efficient and competitive marketplace.

For more general information about the department, see the “Supplementary information”

section of this report. For more information on the department’s organizational mandate letter commitments, see the Ministers’ mandate letters.ⁱ

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8 Raison d’être, mandate and role

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Operating context and key risk Operating context

Canada is in a global innovation race. As we enter a new era of global competition driven by the accelerating pace of economic and technological change in an increasingly digital world, Canada must continue to build on its strong base of talent, knowledge and entrepreneurship to be at the frontier of global innovation-led competitiveness and reap social and economic benefits for Canadians.

To this end, in 2017-18, ISED advanced Canada’s Innovation and Skills Plan, a whole-of-

government approach designed to propel Canada’s innovation-led competitiveness. Developed in consultation with Canadians, the Innovation and Skills Plan focuses on four interconnected and mutually reinforcing themes to foster innovation through partnerships and targeted actions:

 Skills: Equipping Canadians with the tools, skills and experience they need to succeed in the marketplace, and attracting global talent.

 Research, technology and commercialization: Encouraging greater business investments in research and capitalizing on Canadian inventions through shared risk-taking and partnerships.

 Program simplification: Offering a timely, client-centric and single window in the delivery of business innovation programs.

 Investment and scale-up: Attracting investment and supporting the growth of leading Canadian companies and start-ups.

The following challenges continued to shape Canada’s future as our country becomes more open and interconnected within the global community. However, these challenges can be leveraged into opportunities with the innovation necessary to create and secure good-quality jobs for Canadians.

 Growth: Canada’s growth was strong in 2017-18, but complacency is not an option.

External factors such as trade barriers, fluctuating commodity prices, the competitive pressures of the global innovation economy and an aging workforce carry potential impacts for which continued efforts are necessary to ensure the strength of the middle class.

 Technology: Many technologies are completely changing the way people access information, buy goods and services, interact with one another and do business. As disruptive technologies enable vast economic and social benefits, any lack of access, awareness, literacy, or affordability to use them can challenge the inclusivity of the Canadian middle class and impact the competitive advantage of Canadian businesses.

Canada has strengths in these disruptive technologies that it can leverage. To respond to the pace of technological change, ISED continued to support Canadians and their

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10 Operating context and key risk

businesses as they need to invest in and adopt new technologies as well as learn the skills necessary to prepare for the future of work.

 Climate change: This defining issue of our generation is reshaping how countries around the world meet their energy needs and how they think about growth. Climate change will influence how Canada and other countries manage natural resources in a world of both rising energy consumption and rising climatic risk. Those focused on clean growth are already driving the next great wave of innovation. Many countries are transitioning to a low-carbon economy based on “clean technologies” that promote energy efficiency, reduce pollution and produce cleaner air and water. This shift to clean growth has the potential to improve productivity and create new markets and jobs.

Key risk

The challenges associated to economic uncertainties, disruptive technological developments and a global shift to clean growth continue to affect one of the Department’s main risks, as identified in ISED’s 2017-18 Departmental Plan. There is a risk that maintaining the status quo will result in insufficient investments in people, technology and companies to fuel innovation, thereby eroding Canada’s ability to translate advancements into economic growth for all Canadians.

To address this risk, the Department is leading the implementation of Canada’s Innovation and Skills Plan. Launched in Budget 2017 and following extensive consultations with Canadians, a number of the Plan’s signature initiatives are now underway, including the Innovation

Superclusters Initiative, six Economic Strategy Tables, CanCode, the Strategic Innovation Fund, Innovative Solutions Canada, and the Innovation Canada one-stop shop for Canadian businesses.

These measures help ensure that Canadians have the skills they need to compete in a global economy and Canadian businesses are supported as they innovate and grow. Budget 2018 builds on these signature initiatives through the results of the horizontal review of business innovation programs. The review proposes a series of fundamental changes to business innovation programs to create a suite of programs that is easy to navigate and will respond to the challenges and opportunities facing Canadian businesses today and into the future. Budget 2018 also provided significant investments that support Canada’s researchers and the new knowledge and

innovations that they help create.

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Key risk

Risk Mitigating strategy and

effectiveness

Link to the

Department’s Programs

Link to mandate letter commitments and any government-wide or departmental priorities Canada’s economy may

not generate the innovation necessary to drive sustainable growth.

In 2017–18, ISED continued to implement Canada’s Innovation and Skills Plan, with

measures designed to stimulate innovation and promote economic growth in all regions across the country.

While the Department does not control many of the external factors that influence sustainable growth, ISED consulted with stakeholders across Canada to help ensure that the Department’s programming for innovation-led growth meets Canadians’ needs and supports the

continued growth of an innovative economy. The resulting Innovation and Skills Plan measures are designed to foster Canadian

competitiveness, a key mitigation against external economic risk factors.

All Develop an Innovation

Agenda

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12 Operating context and key risk

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Results: what we achieved Programs

Marketplace Frameworks and Regulation

Description

This program regulates and provides oversight over a number of aspects of the Canadian marketplace, including trade measurement, insolvency, corporate governance including federal incorporation, intellectual property, market access and consumer affairs. The program develops and administers framework statutes, regulations, policies and procedures; develops, sets and assures compliance with related regulatory reforms and standards; and consults with a variety of stakeholders and portfolio organizations. Overall, the program benefits Canadian businesses and consumers by ensuring the integrity of the marketplace and providing a competitive environment that contributes to Canada's innovation performance.

Results

To protect consumers, improve the accessibility of the Canadian marketplace and ensure that Canadian businesses were well-placed to compete both domestically and in the international market, in 2017–18 ISED continued its oversight and enforcement roles with respect to the Canadian marketplace.

The Canadian Intellectual Property Office (CIPO) continued to support the modernization of intellectual property (IP) legislation in order for Canada to accede to various international IP treaties. Public pre-consultations were completed in July 2017 for changes to the Trademarks Regulations and the Industrial Design Regulations. Both sets of regulations were then pre- published in the Canada Gazette, Part I for public comment in late 2017 and early 2018. The final version of the Industrial Design Regulationsⁱⁱ were published in spring 2018 and will come into force on November 5, 2018, when Canada formally accedes to the Hague Agreement Concerning the International Registration of Industrial Designs.

The final set of Trademarks Regulations are expected to be published in December 2018, and will come into force in spring or summer 2019, when Canada will accede to three international trademark treaties. Finally, CIPO held pre-consultations in September 2017 for changes to the Patent Rules and will publish them for public comment in late 2018.

As part of the Canada-European Union Comprehensive Economic and Trade Agreement

(CETA), CIPO implemented an expanded geographical indication system to include agriculture and food products, effective September 21, 2017.

CIPO delivered an enhanced IP awareness and education program designed to provide businesses with tools and information to better acquire, manage and leverage their IP assets.

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14 Results: what we achieved

CIPO also delivered a suite of seminars and training services for businesses and expanded its presence and partnerships in innovation-focused communities.

The Canadian Free Trade Agreement (CFTA) was announced by the Minister of Innovation, Science and Economic Development along with provincial and territorial trade ministers on April 7, 2017, and came into force on July 1, 2017. On December 14, 2017, federal

implementing legislation for the CFTA received Royal Assent. The agreement provides a framework to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services, and investments within Canada and establish an open efficient, and stable domestic market. In 2017–18, ISED also worked with provincial and territorial officials, and collaborated with Treasury Board of Canada Secretariat and other government departments to set up the various bodies and processes established by the CFTA, including the Regulatory Reconciliation and Cooperation Table, and a number of CFTA working groups, including those on Alcoholic Beverages, Northern Foods, Financial Services, and Trade in Fish and Fish Products.

In the area of international free trade, ISED collaborated with Global Affairs Canada, other government departments and industry stakeholders, including American industry representatives, on ongoing analysis and trade renegotiations for the North American Free Trade Agreement. The Department also contributed to the successful conclusion of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which will give Canadian companies preferential access to markets in Asia.

ISED continued to lead and facilitate negotiations among the provinces and territories on a modernized Internet Sales Contract Harmonization Template (ISCHT). As the online marketplace has changed substantially since the ISCHT was adopted in 2001, a modernized agreement will ensure Canadian consumers enjoy the protections they expect when shopping online or at a distance. A harmonized approach to provincially-based consumer protection law also supports businesses that operate across provincial borders since it reduces compliance costs and regulatory burdens and provides regulatory predictability. In 2017–18, advancements were made towards a draft agreement and a draft document for public consultation.

To help protect consumers in the lending market, ISED worked with federal, provincial and territorial partners to better understand high-cost credit use. In particular, the Department

commissioned a study on consumer use of such loans and circumstances of use. The results were disseminated to federal, provincial, and territorial partners to inform future policies to protect Canadian consumers.

To protect consumers and ensure the integrity and accuracy of trade measurement in Canada, ISED, through Measurement Canada, ensured the inspection of 153,400 gas pumps, scales and other measuring devices in 2017–18 in the eight sectors with mandatory re-inspection

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requirements. Measurement Canada continued to employ a graduated enforcement approach to correct measurement inaccuracy and other types of non- compliance, including issuing information and violation letters and requiring businesses to fix devices found in non-compliance. To promote compliance among device owners, Measurement Canada developed a fact sheet and a frequently asked questions infographic to explain the graduated

enforcement approach.

In line with ISED’s goal to deliver innovative, integrated client-centric digital services, the Office of the Superintendent of Bankruptcy introduced an updated Insolvency Records Search (IRS)

application to key stakeholders. The updated IRS service is designed to enhance access and increase usability and ease of navigation for clients.

Results achieved Expected

results

Performance indicators

Target Date to achieve target

2017–18 Actual results

2016–17 Actual results

2015–16 Actual results Service

standards are met

Average percentage of service standards met

91.5% March 31,

2018

93% 94% 95%

Budgetary financial resources (dollars) 2017–18

Main Estimates

2017–18

Planned spending

2017–18

Total authorities available for use

2017–18

Actual spending (authorities used)

2017–18 Difference (Actual spending minus Planned spending)

73,477,129 73,477,129 215,046,817 66,620,345 (6,856,783)

The Total Authorities Available for Use for this program in 2017–18 includes $169.5 million in unused authorities accumulated by CIPO since its creation in 1994. CIPO is an organization within the Department that is funded entirely from the revenues it generates, drawing from its unused authorities as required.

Improving access to common business registry information

ISED continued collaborative work with participating jurisdictions on the

development of a Business Registry Search pilot system.

Completion of Phase 1 of the pilot demonstrated data-sharing between the participating jurisdictions using real data in a test environment in order to facilitate multi- jurisdictional search, registration and notification.

The search functionality that this pilot successfully demonstrated is now being applied to a project that will connect Canada’s business registries to increase transparency and sharing of information, and make extra-provincial/territorial registration and reporting more seamless and efficient for Canadian businesses.

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The variance between Planned Spending and Actual Spending is primarily due to a delay in the upgrades to CIPO’s information technology infrastructure and greater than expected variance in deferred liabilities.

Human resources (full-time equivalents) 2017–18

Planned full-time equivalents

2017–18 Actual full-time equivalents

2017–18 Difference

(Actual full-time equivalents minus Planned full-time equivalents)

1,801 1,769 (32)

Marketplace Competition and Investments

Description

This program administers federal laws relating to the investigation of anti-competitive behaviour and the general regulation of trade and commerce in respect of business practices, including the review of mergers and significant foreign investments. It protects, promotes and advocates for efficient markets in a manner that encourages ongoing economic growth and innovation, providing consumers and businesses with competitive prices and increased product choices.

Results

To build confidence in the digital economy and ensure an innovative and competitive

marketplace in Canada, ISED, through the Competition Bureau, used enforcement, outreach and advocacy to increase compliance with Canada’s competition laws, prevent and deter anti-

competitive conduct, ensure mergers do not substantially lessen or prevent competition, and stop deceptive marketing practices that threaten the growth of the Canadian economy and consumer confidence.

The Bureau’s case against the Toronto Real Estate Board (TREB)ⁱⁱⁱ, which was upheld by the Federal Court of Appeal on December 1^st, 2017, set a precedent for putting digital innovation first. It was found that TREB had blocked its members from offering certain online brokerage services, preventing home buyers and sellers from taking advantage of a wide range of options when making one of the most significant financial transactions of their lives. By lifting

restrictions on access and use of real estate data, agents will be able to offer consumers innovative services that provide insights into home sales prices and trends online.

The Bureau also worked to strengthen Canadians’ trust that prices advertised online are ones they will actually pay. That trust is easily broken when online retailers add hidden fees and charges to products and services. In 2017-18, the Bureau took on key players in the car rental industry over hidden fees, resulting in a total of $2.25 million in administrative monetary penalties for Hertz/Dollar Thrifty^iv and Enterprise Rent-A-Car^v.

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In January 2018, as part of a class-action settlement related to false environmental marketing claims by Volkswagen, Audi and Porsche, buyers and lessees of certain 3.0 litre diesel vehicles were awarded up to $290.5 million in compensation.^vi The Bureau also reached a consent agreement with the three Canadian automobile

distributors. Volkswagen Canada and Audi Canada committed to paying a total administrative monetary penalty of $2.5 million.

As part of continued efforts to preserve competition in the retail gas industry, the Bureau reached separate consent agreements with Alimentation Couche-Tard Inc. and Parkland Industries Ltd.^vii These agreements related to Couche-Tard’s proposed merger with CST Brands Inc. and its decision to sell a number of retail gasoline sites and dealer contracts to Parkland. As these mergers and

acquisitions would have resulted in decreased competition in certain local markets, the Bureau stepped in to address the competition concerns in this important sector.

In December 2017, the Bureau published a market study of innovation in the financial services industry (FinTech).^viii Focused on emerging FinTech services in retail payment systems, peer-to-peer lending and equity crowdfunding, and investment dealing and advice, the study provides

policymakers and regulators with 30 recommendations on how to promote greater competition and innovation in financial services.

In April 2017, the Bureau launched a dedicated tip line that allows the public to report suspected instances of fraud, collusion or corruption affecting federal government contracts, helping build trust in government procurement.^ix In its first year, the Bureau received 140 tips through the telephone tip line and online form. This joint initiative with Public Services and Procurement Canada and the Royal Canadian Mounted Police complements measures already in place to ensure that federal contracts are lawful, ethical, and fair.

The Bureau also worked to ensure that consumers are well-informed and confident in their buying decisions. To help consumers recognize, reject and report fraud, the Bureau participated in the Fraud Prevention Month campaign in March 2018. In addition to participating in

awareness campaigns like the Top 10 Scams, and the #fraudchat and #2G2BT Twitter chats, the Bureau launched the second edition of The Little Black Book of Scams, a guide that exposes 12 of the most prevalent scams in Canada.^x

Understanding big data’s policy impacts

The amount of data being used to drive innovation and quality

improvements across many industries has grown exponentially, but this also introduces many challenges for competition law enforcement.

In September 2017, the Bureau published a discussion paper on big data to spark dialogue on how to address these challenges in ways that support innovation and competition. This work was

recognized by the International Anti- trust Writing Awards as one of the top

“Soft Law” publications of 2017.

The discussion paper informed the release of a final report outlining themes and considerations relevant to enforcement analysis of anti- competitive conduct and deceptive marketing practices in Canada.

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The Department also continued to monitor and review in-bound foreign investments into Canada. In 2017–18, ISED received and certified 743 notifications filed by foreign investors.

ISED also provided the Minister of Innovation, Science and Economic Development with the information required to help determine the likely net benefit to Canada of various proposed investments. In 2017–18, 10 applications for review were filed and certified, of which the Minister approved nine applications, with one of the applications blocked under Part IV.1 national security provisions.

results

2017–18 Actual results

2016–17 Actual results

2015–16 Actual results Consumers

benefit from a competitive marketplace

Dollar value estimate of annual consumer savings from Bureau actions that stop anti- competitive activity

$3.99 billion March 31, 2018

$2.8 billion $2.7 billion $2.9 billion

Anticipated total consumer savings for the duration of the remedy from Bureau actions that stop anti- competitive activity

$17.17 billion March 31, 2018

$18.7 billion $15.2 billion N/A*

Timely and accurate reviews lead to

marketplace certainty

Percentage of mergers and foreign investments reviewed within service standards

85% for complex matters and 90% for non- complex matters (for merger reviews)

March 31, 2018

Complex matters: 86%

Non-complex matters: 96%

* New indicator for 2016–17.

The variance between the target and actual results for the dollar value estimate of annual

consumer savings from Bureau actions that stop anti-competitive activity is due to the difficulty in anticipating whether and how quickly complex investigations will conclude.

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Main Estimates

2017–18

41,903,401 41,903,401 43,078,858 43,359,615 3,456,214

2017–18 Difference

351 339 (12)

Spectrum, Telecommunications and the Digital Economy

Description

This program enables Canadians to benefit from a globally competitive digital economy that drives innovation, productivity and future prosperity. This includes developing and administering domestic regulations, procedures and standards that govern Canada's radiocommunication and telecommunications industries. The program sets legislative and policy frameworks to encourage competition, innovation, private sector investment in digital infrastructure, confidence in the online marketplace, and greater adoption of information and communications technologies by business. The program maximizes the public benefits of spectrum by managing it efficiently and effectively, through spectrum and radio licensing including auctions, compliance and

enforcement. The program protects Canadian interests in the radiocommunications and

telecommunications industry globally and facilitates international online trade and commerce by negotiating international treaties and agreements. This program also performs research in

advanced telecommunication and information technologies to promote innovation and assist in the development of policies, regulations and program delivery.

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Results

In 2017–18, ISED continued to ensure Canadians benefitted from the digital economy, in part through the administration of policies and regulations governing the radiocommunication and telecommunications industries. The Department also continued to manage spectrum and radio licensing to the benefit of all Canadians and conduct research on advanced communications systems and technologies to inform public policy and further innovation.

ISED is committed to delivering on Canada’s Innovation and Skills Plan by ensuring that Canada has a world-class telecommunications infrastructure and that Canadian consumers, businesses and public institutions continue to benefit from advanced wireless telecommunications services and applications.

With this goal in mind, ISED published the following consultations and decisions in 2017-18:

 the Consultation on Releasing Millimetre Wave Spectrum to Support 5G published in June 2017;

 the Consultation on the Spectrum Outlook 2018 to 2022, a multi-year spectrum release plan to support next generation services, published in October 2017;

 the Spectrum Licence Renewal Process for Advanced Wireless Services (AWS-1) and Other Spectrum in the 2 GHz Range published in February 2018, and;

 the Technical, Policy and Licensing Framework for Spectrum in the 600 MHz Band published in March 2018.

On May 8, 2017, the Minister of Innovation, Science and Economic Development opened the Communication Research Centre Canada’s (CRC) Big Data Analytics Centre. Using big data

analytics, cloud computing, crowdsourced information, data fusion and state-of-the-art visualization, the Centre enables researchers to work with big data in ways that were previously not possible to support sustainable spectrum management.

ISED completed consultations with industry stakeholders in support of a potential public safety broadband network in Canada, which would allow first responders to benefit from up-to-date

telecommunications products and services to keep Canadians and themselves safe.

Enabling new, innovative applications of wireless

technologies

In 2017-18, ISED deployed, under the CRC’s Grand Challenges research program, a collaborative 5G Test Site at Ottawa City Hall.

The implementation of 5G will impact every aspect of society, allowing billions of devices to connect better and faster.

The CRC used the 5G Test Site to successfully demonstrate how low-cost engineered surfaces developed by the CRC can enhance 5G coverage in a real-world environment without the use of additional base stations.

The Test Site will continue to be used by the CRC to move this research forward, and will continue to be made available to Canadian innovators to use the facility for their own research and showcase 5G wireless applications in Ottawa.

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ISED supported proposals to ensure the efficient operations of the International

Telecommunications Union’s Telecommunications Standardization Sector, and facilitated private sector contributions to establish new international standards. As a result, Canadians will benefit from standards that support secure and reliable communication while protecting personal data and privacy, and enable the growth of Canadian companies looking to export their

innovation in markets abroad.

The Connecting Families initiative^xi connects low-income Canadian households with Internet service providers offering low-cost Internet solutions, and provides these households with free refurbished computers through the Computers for Schools program. In 2017–18, an agreement was signed with Computers for Success Canada to develop a web portal to connect households with participating Internet service providers. The program will provide hundreds of thousands of Canadian families with low-cost Internet and up to 50,000 computers for eligible households.

The Accessible Technology program^xii supports the development of assistive and adaptive technology for people with disabilities. Projects are co-funded with for-profit, not-for-profit or academic organizations with the objective of enabling people with disabilities to fully engage with digital technology. The program launched in December 2017 and has received 30 applications to date.

As a companion to the CanCode^xiii and Accessible Technology programs, the Digital Literacy Exchange program^xiv launched on February 19, 2018 and 151 applications were received by the March 30, 2018 deadline. The Digital Literacy Exchange program supports fundamental digital literacy skills training with a focus on under-represented groups to promote participation in the digital economy.

The Digital Skills for Youth program^xv is a component of the Government’s Youth Employment Strategy horizontal initiative. It provides under-employed youth with digital skills training, soft skills training and work-integrated learning experience using a third party delivery model that connects youth with Canadian not-for-profit organizations and small businesses. The program was announced on January 4, 2018, and 22 applications were received by the February 7, 2018 deadline.

On September 2, 2017, the Government of Canada published draft regulations that specify how organizations must notify individuals when they are victims of data breaches that pose a real risk of significant harm. Comments received on the draft regulations were addressed in the final regulations, which were published on April 18, 2018.

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22 Results: what we achieved Results achieved Expected

results

2017–18 Actual results

2016–17 Actual results

2015–16 Actual results Canada has a

growing digital economy

Investment in dollars by telecommunications providers

$9 billion March 31, 2018

$11.8 billion (2016)*

$13.3 billion (2015)

$14.7 billion (2014)

Percentage of population with broadband subscriptions

83% March 31,

2018

84% (2016) 82% (2015) 80% (2014)

* Larger figures for investment in 2015 and 2016 due to wireless spectrum auctions. Excluding investments made in spectrum, total investment would be $10.4 billion (2015) and $11.6 billion (2016).

Main Estimates

2017–18

98,327,554 98,327,554 108,138,900 112,498,906 14,171,352

The variance between Planned Spending, Total Authorities and Actual Spending is primarily due to new funding for the Public Safety Broadband Network and the Prime Minister’s Teaching Awards, intellectual property royalties received, the reprofiling of funds from the 2014 and 2016 Federal Infrastructure Initiatives, internal realignments and the implementation of new collective agreements.

2017–18 Difference

715 677 (38)

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Science, Technology and Innovation Capacity

Description

This program sets the strategic direction for policies and programs that support and stimulate research, development and innovation in Canada. In collaboration with portfolio partners, other government departments and external stakeholders from the private and public sectors, the program fosters an environment that is conducive to innovation and promotes scientific excellence.

Results

Launched in Budget 2017, the Innovation and Skills Plan responds to the mandate letter

commitment to implement Canada’s Innovation Agenda. As a result of the input received from broad consultations with Canadians, a number of signature initiatives from the Plan are now underway, including the Innovation Superclusters Initiative, six Economic Strategy Tables, CanCode, the Strategic Innovation Fund, Innovative Solutions Canada, and the Innovation Canada one-stop shop for Canadian businesses.

On May 24, 2017, following consultations with stakeholders across the country that included a series of roundtables on innovation, the Minister of Innovation, Science and Economic

Development launched the Innovation Superclusters Initiative, a $950 million initiative to support business-led consortia with bold and ambitious proposals to strengthen Canada’s most promising clusters and build superclusters at scale.^xvii

The process to select these superclusters consisted of a Letter of Intent phase in which more than 50 applications representing over 1,000 businesses and 350 other

organizations from all regions of Canada were received. A shortlist of nine candidates was announced on October 12, 2017, and the final selection of the following five

superclusters was announced by the Minister of Innovation, Science and Economic Development on February 15, 2018: the Ocean Supercluster (Atlantic Canada), the AI-Powered Supply Chains Supercluster (SCALE.AI) (Quebec), the Advanced Manufacturing Supercluster (Ontario), the Protein Industries Supercluster (Prairie Provinces) and the Digital Technology

Supercluster (British Columbia).

Canada’s five superclusters represent collaboration between more than 450 businesses, including over 300

small and medium-sized enterprises, 60 post-secondary institutions and 180 other participants Clean Growth Hub

In January 2018, the Clean Growth Hub was officially launched as the Government of Canada’s focal point for clean technology businesses.^xvi The Hub is focused on helping clean technology producers and users identify the federal programs and supports most relevant to their needs, as well as coordinating existing federal programs to better support clean technology companies and tracking the results of this support.

In 2017-18, the Hub provided advisory services to just over 300 clean technology clients.

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from across Canada’s innovative industries. They are forecast to generate over $50 billion to Canada’s gross domestic product and create an estimated minimum of 50,000 jobs over the next 10 years.

On September 26, 2017, the Prime Minister announced the appointment of Dr. Mona Nemer as Canada’s new Chief Science Advisor (CSA). Through the Office of the CSA, ISED supports Dr.

Nemer’s mandate to provide impartial scientific advice on topics such as ensuring that government science is fully available to the public and that scientific analyses are considered when the government makes decisions. On January 31, 2018, the CSA wrote to the Prime Minister and Minister of Science, reporting on her first 100 days in office.^xviii The letter highlights the engagement and outreach activities undertaken by the CSA, some observations about the current state of government science and plans for the coming year.

In June 2017, the Canada Foundation for Innovation (CFI) made award decisions under the 2017 Innovation Fund, investing more than $554 million in 117 new infrastructure projects at 61 universities, colleges and research hospitals across Canada. The CFI also continued to run competitions under the John R. Evans Leaders Fund, the College-Industry Innovation Fund and the Cyberinfrastructure Initiative.

The Post-Secondary Institutions Strategic Investment Fund (PSI-SIF) continued to implement projects to improve the scale, quality and environmental sustainability of facilities for research, innovation and specialized training at post-secondary institutions across the country.^xix The program announced 98 new projects in 2017–18, bringing the total number of PSI-SIF projects to 299. Considering that some projects have faced unforeseen delays, PSI-SIF was granted a seven-month extension changing the substantial completion date for eligible projects from April 30, 2018 to November 30, 2018.

On April 10, 2017, the Independent Advisory Panel that oversaw the Fundamental Science Review (FSR) released its report. In response, ISED supported the implementation of measures to improve Canada’s research ecosystem, including: the launch of the Canada Research

Coordinating Committee to strengthen coordination and governance of government support for research^xx; measures to improve equity, diversity and inclusion in science in federally funded research chair programs; a cap on renewals of Tier One Canada Research Chairs to ensure that emerging researchers have the opportunity to hold one of these prestigious positions; and a commitment to replace the existing Science, Technology and Innovation Council with a new science and innovation advisory body that will provide independent, expert advice and public reports.

With respect to Open Science—which is intended to maximize access to federally funded scientific research to encourage greater collaboration and engagement with the scientific community, the private sector, and the public—a draft Statement of Principles on Open Access

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to Publications Supported through Grants and Contributions has been shared within the federal Open Science community. The Department will continue to refine the Statement of Principles in 2018–19.

In December 2017, Statistics Canada released data showing how clean technologies and environmental goods and services benefit the Canadian economy. This is part of the Clean Technology Data Strategy developed by Natural Resources Canada and Innovation, Science and Economic Development Canada to improve data on clean technology development and use in Canada. The Data Strategy is the foundation for collecting and measuring the economic, environmental, and social impacts of clean technology in Canada and will help industry and government understand the clean technology landscape.

The Strategy consists of three pillars:

 Authoritative data from Statistics Canada will help government understand the contribution clean technology provides the Canadian economy;

 Industry data will establish a common set of indicators across industries, allowing for better understanding of the challenges and opportunities faced by clean technology companies; and

 Administrative data will measure the efficiency and impact of government clean technology program delivery.

results

2017–18 Actual results

2016–17 Actual results

2015–16 Actual results Canada's

scientific research excellence is maintained

Canada's Average Relative Citation index

1.35* March 31,

2018

1.41 1.40 (2015

data)

1.37 (2014 data)

Researchers are attracted to Canada, and retained

Total full-time equivalent researchers in Canada per thousand total employment

8.8 March 31,

2018

9.1 (2015 data)

9.3 (2014 data)**

8.8 (2013 data)**

* The target for Canada’s Average Relative Citation index is set using a three-year moving average, as the expected result is to maintain Canada’s scientific research excellence. Therefore, the target is lower than some previous actual results.

** This data is collected and compiled by Statistics Canada and could contain estimates that undergo revisions over time. The data presented here is consistent with the information available at the time the target was set.

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Main Estimates

2017–18

1,531,761,184 1,531,761,184 1,657,975,852 1,313,478,869 (218,282,315)

The variance between Planned Spending, Total Authorities and Actual Spending is primarily related to new funding for the Innovation Superclusters Initiative (some of which was unspent), Innovative Solutions Canada and various other transfer payment programs, as well as a

reprofiling of funds for PSI-SIF to future years and a lapse by Sustainable Development Technology Canada.

2017–18 Difference

98 117 19

The variance between Planned and Actual full-time equivalents is primarily due to the creation of the Innovative Superclusters Initiative.

Industrial Research and Development Financing

Description

This program helps Canadian businesses increase research and development activities by investing in innovative projects and collaborations through repayable and non-repayable

contributions. Projects supported under this program are expected to produce benefits to Canada, including generating strategic research and development investment, developing new

technologies, and enhancing Canadian innovation capacity and expertise.

Results

In 2017–18, ISED continued investing in research and development activities to encourage the development of new technologies in targeted industries and to enhance innovative Canadian products and processes.

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The Strategic Innovation Fund (SIF) was launched in July 2017.^xxii Budget 2017 provided funding of $1.26 billion over five years to consolidate four existing programs—the Automotive Innovation Fund (AIF), Automotive Supplier Innovation Program (ASIP), Strategic Aerospace and Defence Initiative (SADI) and Technology Demonstration Program (TDP)—while also extending funding to other sectors of the economy. SIF provides funding in four streams to support innovative Canadian businesses:

accelerating technology transfer and commercialization;

facilitating growth and expansion; attracting and retaining large scale investments; advancing industrial research, development and technology demonstration. In 2017-18, a total of 14 projects were approved, including – on January 15, 2018 – the first project announced under the new SIF program. New projects included investments in automotive innovation, R&D and innovation that will result in more environmentally friendly chemical production and next- generation wireless technology.

ISED continues to collect repayments from SADI and Technology Partnerships Canada (TPC) recipients. So far, SADI repayments have totalled $319.6 million.

Repayments under the TPC program have totalled $1.72 billion.

Investing in Regional Innovation and Development

In 2017–18, ISED continued to support the ministerial mandate letter commitment to work with the

Regional Development Agencies to pursue strategic investments that build on regional advantages and support economic diversification where appropriate through the development and launch of the Investing in Regional Innovation and Development national framework.^xxi In alignment with the Innovation and Skills Plan, the framework’s priorities include:

 strengthening regional innovation ecosystems and supporting regional clusters;

 assisting businesses in scaling up and becoming world-class

players;

 investing in clean technology, and;

 implementing regional growth strategies with local targets.

Departmental Results Report 2017–18 - Planning and performance reporting

Innovation, Science and Economic Development Canada

2017–18