SUSTAINING A RENEWABLE RESOURCE
Dr. Art Olson, CFBS Executive Director
Dr. Bruce Sells, CFBS Executive Director-Emeritus
September 28, 2006
CANADIAN FEDERATION OF BIOLOGICAL SOCIETIES:
The Canadian Federation of Biological Societies (CFBS), representing
12 national Life Science organizations with members from industry, government
and academic sectors, was founded in 1957. Its purpose is to promote
forward-looking science policies and to show case Canadian life sciences
research through scientific conferences. CFBS is supported financially
by income derived from the scientific meetings, by funds provided by
each member society and contracts for services to societies.
Overview:
Canada’s continued productivity depends on the availability of
highly qualified personnel, investment and cooperation. Recent investments
by the Federal Government, some provincial governments and some private
sector interests have improved Canada’s ability to attract and
retain outstanding scientists. At the same time, however, similar and
even larger investments in research are being made by many of our international
competitors as they too realize that their future depends on technology.
If Canada is to remain amongst the top countries involved in innovation,
carefully crafted and forward looking policies must be devised and supported
over long enough periods to ensure that we have highly qualified personnel,
attractive research environments and time to harvest value from the
research dollars invested.
RECOMMENDATIONS:
1) Accelerate the evolution of Canada’s science and technology
framework.
2) Continue to develop and acquire highly qualified personnel.
3) Sustain the investment.
4) Maximize return from research investment.
INTRODUCTION
Canada’s economy continues to be based primarily on non-renewable
resources in oil, gas and minerals. Other countries recognize this potential
but unless multinational companies establish head offices in Canada,
we are not likely to see their investment in research happen here. Our
natural resources have provided us with a high standard of living; however,
we must be more productive and effective in creating value-added products.
To achieve this goal, ensuring commitments to growing our most renewable
resource - creative people – must be sustained.
Our future economic and social development depends on
Canada’s continuing to value innovation and our reputation as
a country with intellectual and creative resources. Over the last decade,
large investments in publicly funded research have resulted in both
retention as well as an influx of bright minds from other countries.
In fact, among the G-8 nations, Canada leads, in public research support.
Unfortunately, Canada’s corporate community has not made the same
investments in research. The Federal Government’s expressed concern
over the lack of research carried out in Canada by both Canadian and
foreign companies doing business in this country led to the Report of
the Expert Panel on Commercialization1 which suggests encouraging development
and access to highly qualified personnel that can deliver the needed
individuals to create and produce new products in an efficient manner.
In fairness, Canada’s history of commitment to innovation over
the past 50 years has, at times, been spotty and, therefore, we need
to demonstrate that this nation is serious in sustaining the presence
of an intellectual/creative resource.
The following “brief” and its recommendations
are suggestions to ensure an environment that will help government achieve
these desired goals.
RECOMMENDATIONS:
1) Accelerate the evolution of Canada’s
science and technology framework
We recommend placing greater urgency on the development of a national
S&T framework. This initiative is being led by Industry Canada in
collaboration with the Department of Finance. We are concerned that
the longer this process takes, the less likely it is that Canada will
retain the brightest and the best personnel, the confidence of industry
and such leadership as we currently have. In addition, we are concerned
that a narrow focus on benefits to industry will damage the underpinning
of Canada’s scientific effort, basic research as well as areas
outside of the interests of Industry Canada, for instance, health, environment
and defence.
2) Continue to develop and acquire highly qualified
personnel
Highly qualified personnel are a mobile resource and thus require assurance
that their capabilities can be effectively utilized. Canada is currently
seen as “a place to do research”, a significant accomplishment
but one that continues to be challenged by the investments by other
industrialized countries in searching for new ideas and individuals
who can contribute to that search. The emergence of India and China
as global competitors and their investments in postsecondary education
with the intent of changing their economic base has put additional pressure
on the pool of creative scientists. The consequence of this initiative
is that these sources of talent are drying up. Considering the changing
landscape Canada cannot be complacent and must continue to encourage
research-minded individuals and corporations to come to this country.
“…it is indisputable that a strong
educational system is needed to foster innovation.”1
To ensure a continuous supply of creative personnel, the institutions
that train/educate the next generation of our research community must
be attractive places to work. Universities must possess the necessary
up-to-date infrastructure that will allow the university faculty members
to offer the best possible education/training for the next generation
of scientists. CFBS appreciates that the primary responsibility for
education lies with the provinces and that a dialogue has been initiated
on how best to provide support to this system. We support these discussions
and the development of a more transparent system for tracking how transfers
are used. The operating budgets of universities have dropped significantly
over the past two decades with these institutions having difficulty
in providing the highest quality educational experience. Measured in
constant dollars, grants to universities have declined by about 19%
in the decade leading up to 2001. This is not solely a provincial problem.
The Department of Finance’s data indicate a 40% decline in federal
cash support for post secondary education between 1992 and 2004 including
a 9% drop in full time faculty between 1992 and 2002. This translates
into a loss of almost 3500 scientists thus far with the problem compounded
by the expected 10,000 retirements coming over the next decade. The
federal initiative of establishing 2000 Research Chairs has been extremely
welcome. Continued support for programs such as the Canada Research
Chairs would relieve the financial pressures on universities and provide
an environment that allows more effective interactions between students
and professors.
Canada must encourage students to achieve their maximum
potential - without creating major financial impediments. Exempting
the first $10,000 of student scholarship or bursary from taxation and
providing students or their parents with a federal tax credit on spending
up to $500 per year on textbooks are welcome changes. The impact of
tuition increases and other costs, however, is skewing attendance away
from middle and lower income groups. The debt load carried on graduation
by students and in particular on middle class parents appears to be
compromising the incentive to enter graduate school and thus the capacity
to meet Canada’s future needs for highly qualified personnel.
Encouraging scientists to establish and stay in Canada
is key to ensuring our business community has highly trained individuals
and the immediate access to scientific competence they require. For
those scientists with entrepreneurial skills, the venture capital environment
that is essential to exploit new discoveries and technologies is inadequate.
3) Sustain the investment
Investments by the Federal government and some provinces have been successful
in making Canada into an “innovative society”. Investments
in the life sciences area, as an example, created opportunities for
rapid growth of the biomedical industries in this country. Recently
announced commitments to support research related to cancer, mental
illness and heart disease will further strengthen our abilities.
a) Statistics Canada estimates 2006 expected investment
in research at about $28.4 billion3. Research support in the past has
gone through boom and bust cycles. Consistent investment is essential
as exceptional researchers are an increasingly mobile resource. Sustaining
the research enterprise will also communicate to the corporate sector
Canada’s ongoing commitment to innovation.
b) With the increased world-wide investment in research
and creative individuals Canada’s ability to attract and keep
highly qualified personnel depends to a large extent on continued support
for the federal granting agencies. The Canadian Institutes for Health
Research (CIHR) and the National Science and Engineering Research Council
(NSERC) have both reached the stage where their allocations are fully
committed. Without additional resources, their options are to either
cutback on existing commitments or limit the number of new researchers
they support with consequences for developing areas such as nanotechnology,
environmental studies, biotechnology and novel diseases.
c) CFBS applauds the Governments recent announced increase
to the indirect costs program. This program has been beneficial to universities
and to research institutes. A transparent reporting mechanism is essential
to ensuring that these funds are spent for the purposes designated.
d) Creation of the Canadian Foundation for Innovation
(CFI) has resulted in huge benefits in the needed development of research
infrastructure and has been a major attraction in recruiting outstanding
scientists to Canada. At the same time, this program also places considerable
pressures on granting agencies to contribute to equipment maintenance
and other costs after the first 3 year phase of operation. Closer working
relationships between the granting councils and other federal research
efforts would be of value.
e) A significant research capacity exists within the Federal
Government. This expertise is essential to ensuring that the Government
has the best and most current advice available to it in dealing with
major challenges such as infectious disease, environmental issues, energy,
product safety and national security. While these capabilities exist
within the public service; they require financial support, an effective
peer review system and re-investments in physical infrastructure to
be successful. Recruiting the most creative scientists will be enhanced
by an attractive research environment.
4) Maximize return from research investment
a) Canadian taxpayers expect that their investments be
closely monitored and managed efficiently.
i) Informed research decisions:
(1) Decisions on where future investments should be made requires a
broad understanding of where we are at, where we have been successful
and an appreciation of future opportunities. An ability to balance competing
interests requires structures that encourage co-operation and coordinated
response. Options include a return to a central agency approach, strengthening
the Science Advisor’s role or utilization of vehicles such as
the Council of Canadian Academies to bring balance and coherence to
Canada’s research investments.
(2) Rigorous peer review, while not a perfect process,
is an effective means of distinguishing potential. Such reviews are
an ongoing challenge, as science evolves into new patterns requiring
integration and breadth of understandings. Reviews involving international
competence are an effective means of raising the bar.
(3) Funds allocated through cost sharing or indirect costing
arrangements require commitment and subsequent audit to ensure accountability.
ii) At the same time, administrative roadblocks should
be reduced. For instance, the granting agencies receive their funding
on a year by year basis and must spend the allocation prior to the end
of the fiscal year as there is no allowance for carryovers. As support
provided by the granting agencies to researchers is normally about 4
years in duration, should new funds not be provided to the agencies
in any particular year, the only funds available for disbursement result
from turn-over of support awarded 4 years earlier. With this in mind,
we suggest that the granting agencies be allowed to carryover funds
and that allocations be escalated over a 3 year period to allow for
this forward planning and hence more efficient use of funds. Similar
problems occur when federal departments agree to share research efforts.
It is our understanding that precedents exist for such carry-overs.
b) Review co-funding:
(1) “…many components of Canada’s
commercialization system are functioning well, and these should be re-inforced.”1
“…but commercialization of research lags compared with that
in the United States in many areas.2” The Rotman report1
recommends a superfund to address key commercialization issues and expansion
of resources available to new firms. These recommendations have merit
but the current plethora of co-funding programs and consequent arrangements
requires analysis and integration. As well, peer review should be implicit
in any science related decision process.
(2) Co-funding that requires support from provincial research
agencies has been resisted by many provincial governments as intrusive.
As well, ability to contribute varies considerably. As a consequence,
excellent proposals can be denied because of the absence of appropriate
partners. A closer working relationship between the two levels of government
is essential.
Prepared by:
Dr. Art Olson, CFBS Executive Director
Dr. Bruce Sells, CFBS Executive Director-Emeritus
REFERENCES:
1 People and Excellence – The Heart of Successful Commercialization,
Rotman, J.L. et al, (wwww.strategis.ic.gc.ca/commercialization), 2006
2 Kevin Lynch “Canada’s Success Is No Accident, And It Isn’t
A Given”, Policy Options, Page 12, April-May 2006
3 Statistics Canada – Total spending on research and development
in Canada, 1990 to 2006, and provinces, 1990 to 2004. Catalogue 88-001–XIE
/ ISSN1209-1278, Vol. 30, no.7
Updated: October 26, 2006
