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 Meeting of the G-10 VP’s Research Banff, Alberta 31 March 2005 Office of the Bureau du National Science Advisor Conseiller national des sciences

2. “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 Role and Priorities of National Science Advisor to the Prime Minister • Position announced in December; took office in April 2004 • Provide sound, independent, non-partisan advice on directions and priorities • Long-term vision for S&T in Canada: balance excellence in R&D with benefits to society and the economy • Commercialization and Innovation • Revitalising government science: horizontal collaborations between departments, agencies, institutions, and business • International S&T and challenges of the developing world • Major science investments (Big Science)

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 and Australia Some reversal of this trend starting in 1998 and 1999 Canada lost less ground than many countries but remains at lower levels than those of its competitors Source: OECD MSTI, 2004 OECD data used for comparability – includes $ from all levels of governments (different % than if only federal gvmt is included).

4. S&T Funding Trends Federal Expenditures on S&T as a % of Federal Budget Estimates (1994-2003*) * projected Source Statistics Canada Cat No. F88-0006XIE

5. Investing in Canada’s Future The federal government has committed $13B in incremental funding in Higher Education Research and Development over last 7 years 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*)

6. 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 new Federal S&T funding has been committed for the Higher Education R&D system in Canada over the past 7 years and more than $11 billion allocated up to 04-05 • Almost 70% of this has been allocated in the last 4 years • Research environment has improved significantly in the academic sector

7. Federal R&D support - HERD

8. 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

9. 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

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

11. Some Challenges Ahead Stay the course on investments in the knowledge base Increase flexibility of granting council budgeting through greater year-year carryover provisions and sustainable multi-year increases Resolve problems of operating funds for research equipment and infrastructure acquired through CFI grants Develop a long term strategy for science and technology to ensure a leadership position for Canada Counter growing criticism about the value and accountability of Foundations

12. How Does Canada Rank Internationally in Scientific Research & Development? • In 2001 Canada’s GERD/GDP Ratio of 1.91 ranked 14th in OECD • But GERD/GDP Ratio is only one input measure of R&D intensity • But a nation’s scientific standing in the world is best measured by direct outputs – the quality, quantity and impact of published research papers and reviews and the citations they generate • Canada performs very well in comparisons of international metrics, ranking in the top 6 countries in the world on several measures

13. “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

14. 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

15. Value for Money Invested: Inputs and Outputs/Outcomes • Important considerations in terms of value for money are: outputs (publications, citations) per researcher; per unit of GDP; per unit of investment • The Footprints provide a snapshot of value for money as measured by international impact of research outputs • Canada is second only to the UK on citations/researcher; citations/unit of GDP; publications/ researcher • Canada is # 1 on HERD/GDP – highest Higher Education Expenditure on R&D/per capita of G8

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

17. Canada’s Research Footprints in the G8 (US excluded) disaggregated by discipline & base on national share of citations Note: excludes US

18. Industry-University Collaboration • Should indicate extent of knowledge/technology transfer between sectors • One measure is level of investment by private sector in higher education research i.e. Business investment as % of HERD (Higher Education R&D) • Canada ranks highly: • UK (11%) • Canada and Germany (7%) • France (5.5%) • USA (3.5%)

19. Indicators of R&D Activity Related to Innovation and Economic Growth • Ranking of G-8 nations for BERD (Business Expenditure on R&D)/GDP is very different from rankings based on research impacts • JAPAN is # 1, USA # 2, GERMANY # 3, UK # 5, CANADA # 6 • In terms of PhD’s awarded per capita, CANADA ranks 5th (ahead of JAPAN, ITALY, RUSSIA) • For FTE researchers per 1000 employed CANADA ranks higher than UK, almost equal to GERMANY and FRANCE but well below JAPAN and USA * NOTE: Knowledge based-economic performance of a nation is developed and driven by HQP

20. 50 45 40 35 30 25 20 15 10 5 0 Trends in Publications of Natural Sciences and Engineering Canadian Science, 1981-2001 • Nations like Korea, 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 Canada Spain Papers in Natural Science and Engineering (Thousands) Italy China S. Korea 1995 2000 2005 2010 2015 Source: Science Metrix, 2004

21. 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 S&T and Innovation: Policy Challenges for Canada

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

23. Towards a Sustainable Environment and Sustainable Communities Addressing Climate Change Establishment of a Clean Fund - $1B over 5 years $200 million to support the development of a Sustainable Energy Science and Technology Strategy. An estimated $295 million in enhanced tax incentives for efficient and renewable energy generation

24. Meeting our Global Responsibilities PM’s challenge: 5% of Canadian R&D expenditures committed to needs of developing countries Combating Diseases in Developing Countries (Aids, Tuberculosis, Malaria; Global Alliance for Vaccines & Immunization (GAVI); Global Polio Initiative: $342M Pandemic Influenza Plan: additional $34M over 5 years S&T Cooperation with India, China: $20M over 5 years

25. 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

26. 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

27. Research Agencies Canada (RAC) • RAC is the forum providing coherence and common purpose in the strategic directions of the major agencies of the Government of Canada that fund research in universities, research hospitals and other research entities • CIHR • CFI • Genome Canada • NRC • NSERC • SSHRC • CSA • Chaired by the NSA

28. Research Agencies Canada (RAC)- Future Plans Steer the development of national research strategies in emerging new areas Coordinate development and implementation of a big science framework Work continuously to close gaps in the research funding system develop strategic advice to the government on the long-term funding of research in Canada Steer the process of evaluating joint research funding programs Implement new approaches to inter-agency programming Develop and share partnerships with users of research knowledge Identify opportunities for participation in international programs

29. 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 to ensure that we are active participants in leading research fields • 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 • Process to be managed by a central body (Major Science Investment Panel and small secretariat) • Discussion paper released for comment in February • Feedback deadline 15 May • Final Draft Fall 2005.

30. 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

31. Canadian Nanotechnology • Heavy investment - over $300 million in nanotechnology infrastructure since 1998 • Extensive support by the National Research Council, Federal Granting Councils and Provincial Governments • National Institute for Nanotechnology • $120 million joint venture between Government of Canada, Government of Alberta and University of Alberta • Established in 2001, new facility to open in 2005 New National Institute for Nanotechnology

32. Canadian Nanotechnology: Strengths • Outstanding talent in areas such as quantum computing, quantum devices; lab on a chip/biodiagnostic devices; materials self assembly, nanophotonics; instrument development • Quality of Nanotechnology Research1 • Canada ranked 3rd in international comparison of nano-related US patents filed by foreign patenting countries from 1975-2000 • Canada places 1st in citation rate of these patents • Expertise in environment, agriculture, manufacturing, health and energy, communications and security - prime nanotech opportunities 1. Source: Marinova and McAleer, Nanotechnology 14, R1-R7 (2002)

33. Development of a National Strategy • Research and Development • Covering the broad spectrum of scientific disciplines from the natural, engineering and health sciences to the social sciences and humanities • Innovation and Commercialization • Looking at the wide range of applications covering existing and emerging markets in Canada and internationally, as well as the barriers and incentives to commercializing disruptive technologies; • Regulatory Considerations • Dealing with health, safety, security, environment, trade, intellectual property and economic development • Education and Engagement • Ranging from public awareness and engagement, to new curriculum development in universities colleges and secondary schools

34. Nanotechnology Canadian Initiatives – University Research • NINT (NRC – Univ. of Alberta joint initiative) • Nano Quebec (McGill, Université de Montréal, Sherbrooke) • Universities of Toronto, Waterloo, McMaster, Western Ontario • University of British Columbia, Simon Fraser University • Canadian Institute for Advanced Research • Canadian Institute for Photonic Innovations • CERION (Canada-European Nanostructures Network) • Canadian Light Source: Nanostructures Beam Line

35. Process would involve: Development of a National Strategy • Engagement from Industry, Academia and Government • Agreement on vision, goals and objectives • Comprehensive assessment of international positioning • Environmental scan and foresight of future opportunities and challenges • Covering societal, environmental, health, economic and legal issues • Identification of key areas where Canada can be globally competitive • Agreement on action plan with clearly identified roles and milestones ACST to consider an expert panel assessment