INST Committee Report
If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.
CHAPTER 5: STRATEGIC S&T INVESTMENT OPPORTUNITIES
Once the Committee had completed its examination of the innovation system it started looking at some of the major enablers for innovation in the twenty-first century. These major future-oriented S&T investments are important to Canada’s long-term prosperity. Some have already received federal funding support while others are still being reviewed by the federal government. The Minister of Industry discussed the process and criteria that would be used in evaluating whether S&T initiatives should be funded.
I just would lay out a couple of principles. Certainly the most important principle is that we should be supporting excellence in our R&D. The merit principle should drive the examination of applications as they are brought forth, whether you’re talking NRC or NSERC or the centres of excellence program, or, more recently, because it's had a higher profile, the CFI. All of the decisions on all of these programs are made at arm’s length from me, from members of cabinet, from members of Parliament, from government generally. … [W]hen you have a block of funds … we could say to an expert panel — in the case of Genome Canada, a panel from outside the country — of international experts, "Give us your best advice, based on the applications before us, as to where these strategic investments across Canada should go." That’s what we’ve done with respect to the space program, or … the neutron facility. These are the questions that would be determined by cabinet, specifically because they’re large stand-alone projects. All the others are done independently. [The Honourable Brian Tobin, Minister of Industry; 3, 16:00-16:05]
The Committee did not have the time to review all of the potential major S&T investment opportunities in Canada but it did have the chance to hear about a number of important initiatives related to: a proposed long-range plan for astronomy, biotechnology, genomics, nanotechnology, a proposal for a replacement neutron facility, and the light source synchrotron project. Some of these are better known than others but all are important to Canada’s future. The Minister of Finance also recognizes the importance of these technologies:
It is all about timing. … I’m going to quote some words from Paul Martin talking about how Canada will build an innovative economy. He’s talking about transformative technologies: "... this is where the true new economy is to be found ... in the transformative cascade of new technologies" — wave after wave after wave of new technologies. "This is producing a shift that is ... giving rise to whole new fields of industrial endeavour — information technology and biotechnology today, fuel cells, nanotechnology, and genomics tomorrow." [Peter A. Hackett, National Research Council of Canada; 16, 9:52]
In reviewing these proposals the Committee grew concerned with the current review mechanism for major S&T investments, particularly those with an international component. This was especially evident with the proposed long-range plan for astronomy.
Astronomy — Long-Range Plan
The Committee was fortunate to receive an enlightening presentation on a major Canadian initiative/proposal with a distinctive international flavour. Canada’s long-range plan (LRP) for astronomy and astrophysics was developed by an expert panel and reflects the consensus and support of the entire astronomical community. It builds on Canada’s scientific and technical strengths to continue its international leadership in astronomy. The Committee learned that the LRP has also been publicly endorsed by all major stakeholders, including the presidents of all the government agencies involved in providing funding for astronomy in Canada: the National Research Council; the Canadian Space Agency; the Natural Sciences and Engineering Research Council; the presidents of all Canadian universities engaged in astronomical research; leaders of Canadian industry; and leaders in the field of public awareness in education and science. It has very broad support.
The Committee discovered that Canada has a prominent role on the world stage in the field of astronomy and astrophysics and that this field of research is poised to answer some fundamental questions.
To begin with, I’d like to give you a sense of the state of the discipline internationally and Canada’s prominent role on the world stage. Advances in the power of technology over the past few decades, many pioneered by Canadians, have brought the field of astronomy to the brink of charting a complete history of time. Our most powerful telescopes, such as the Hubble space telescope, show us the universe as it was at half its present age. We are now poised to observe even further back in time and to answer fundamental questions that have engaged the curiosity of human beings throughout the ages. How did the highly structured universe we see around us come into being? When was the dawn of first light and the birth of stars and galaxies? How has the universe evolved, and what is its ultimate fate? When did the building blocks of life first occur in the history of the universe? Does life and possibly civilization exist elsewhere in the universe? Are we alone? How does humanity fit into this cosmic history? [Russell A. Taylor, Coalition for Canadian Astronomy; 6, 9:25]
Witnesses informed the Committee that developing the new generation of telescopes requires international collaboration. Canada is an important player on the international front and, with respect to the science and technology community in Canada, astronomy leads all of the disciplines in international impact.
These and many other questions are driving the development of the next generation of ground-and-space-based telescopes. These telescopes will be so powerful and push current technology so hard that no individual country has the resources to develop them on their own. Astronomy is moving into an era of internationalization, where groups of developed countries work together and combine their resources to develop and build facilities that redefine the cutting edge. Canada is an important player in these international efforts. Most Canadians know that this country is a world leader in science and technology, but across all scientific disciplines Canada does about 5% of the world’s research. The relative impact of a given discipline on the international stage is measured by the number of citations to published research — i.e., the uses of the published research by our international colleagues and other researchers. Within the science and technology community in Canada, astronomy leads all of the disciplines in international impact. … The impact per astronomer of Canadian astronomy makes this country the third most important player in this area in the world, behind the United States and the United Kingdom. We're ahead of all other major science and technology supporting countries. This is despite the fact that Canada has the lowest per capita funding level for astronomy among our G-7 partners, and in fact among the OECD. We’re seven times less than the U.S. and five times less than the U.K. [Russell A. Taylor; 6, 9:26]
The Committee has previously passed a motion suggesting that the federal government support the $160 million funding cost for the LRP.
The House of Commons Standing Committee on Industry, Science and Technology fully supports the Long Range Plan (LRP) for Astronomy and Astrophysics. The LRP proposes an additional $16.4 million per year for 10 years totalling $164 million to be allocated to the National Research Council of Canada (NRC) and the Natural Sciences and Engineering Research Council of Canada (NSERC).
The Committee found the LRP to be an excellent proposal but felt that the review process involved in evaluating whether it should be funded needs to be more inclusive and more information on the proposal should be made available. The problem with the review/approval process noted with the LRP applies to all large S&T projects. The increasing importance of international collaboration in major scientific facilities and projects as well as the number of "big science" projects that need to be considered for future funding makes the need for a better review process a priority and the Committee recommends:
7. That the Government of Canada develop a definitive advisory process for large scientific projects, particularly those with an international component.
Many Canadians frequently hear references to biotechnology in the press. The Minister of Industry noted the importance of biotechnology to Canada.
.Biotechnology is another key enabling technology for the future. This vital scientific knowledge will provide new ways of dealing with environmental challenges, drive growth in existing and emerging industries, and lead to new medicines and the means to prevent disease. All of this is part of our vision of a smart country, an innovative and more integrated Canada for the future
[The Honourable Brian Tobin; 3, 15:40]
This technology involves the application of science and engineering in the direct use of living organisms or parts or products of living organisms in their natural or modified forms. Although humanity has used biotechnology for centuries, it is only in the past 30 years that major discoveries have permitted its potential to be utilized.
It’s only 30 years ago that our researchers discovered recombinant DNA. Now recombinant DNA is simply a vehicle that has led to the development of the entire biotechnology industry. … [T]he first product of biotechnology in Canada that I would suggest benefited the population was the development of human insulin. Human insulin was the first product, if you like, of genetic engineering. That was in 1982. Since that time, many biopharmaceutical treatments for AIDS and other diseases have been introduced, and many other projects are underway.
[Barry D. McLennan, Coalition for Biomedical and Health Research; 17, 10:43]
The long-term potential impact of the application of biotechnology is enormous but already many applications are being seen.
Let me come now to some benefits. Across town we have been working for 20 years in the development of vaccines based upon glycoproteins. These vaccines have just come to market and have just been used in the U.K. ... I could talk about the 1,000 lives that will be saved worldwide by 2015 using this vaccine. … Children are the last host of meningitis. So with a vaccine we will be able to remove this disease from the face of the earth, and that will be the real benefit of this biotechnology advance. There are seven other childhood diseases that are being targeted by this same technology. They’re in the pipeline. They will come to market. …
Let me move on to benefits in the environment. … We have developed DNA chips to detect pathogens in water very cost effectively. Cryptosporidium parvum, etc., can now be detected with a $5 chip …
We’ve heard about Walkerton. Two days after Walkerton hit the news I had a brief on my desk from Dr. Malcolm Perry in our Institute for Biological Sciences. He said, "I have the answer; I’ve been working on this for 20 years." We now have a vaccine against E. coli 0157:H7 being developed with the VIDO organization at the University of Saskatchewan.
Osteoporosis. We’ve started a small company based upon synthetic PTH hormone. … This new technology not only repairs bone, it rebuilds bone. Of course, it will require many years of development and a large amount of investment to bring this technology to market, but we have started down that path
To talk further about benefits, on the economic side there is the incubation of small companies at the Biotechnology Research Institute in Montreal. There are currently, I think, about 20 small companies incubating. They have 260 employees. Some of these companies were attracted from the U.S., some from Europe.
[Peter A. Hackett; 17, 11:07]
Other benefits of biotechnology to Canada include stemming the "brain drain" and creating wealth for Canadians. It is one of Canada’s fastest growth areas.
[B]iotechnology can contribute to stemming the brain drain, creating employment, and ultimately improving the personal and economic health of Canadians. ... Biotechnology cuts across many sectors. It should be noted that human and animal health dominate biotechnology activities in Canada, constituting 46% of industrial activity, about 87% of the research and development investment, and is the fastest growing job creation sector in our economy. [Barry D. McLennan; 17, 10:43]
The federal government has been very active in supporting biotechnology and the Committee actively encourages this support.
We’re a small country, but we rank second in terms of the number of companies that use biotechnology. On a per capita basis, we’re second in the world. Nonetheless, and even though our government—and we very much want to acknowledge the support of government. The federal government, already, has laid out some programs that are very important—the Canada Foundation for Innovation, the Canada Research Chairs Program, the Canadian Institutes of Health Research, and more recently Genome Canada. These are fantastic programs federally and provide opportunities in all the provinces for Canadian researchers to respond to the initiative. I compliment and want to thank the government right now for these very important strategic decisions. [Barry D. McLennan; 17, 10:43]
The Committee learned that biotechnology is converging with other technologies and that these mergers may well transform our economy.
We’re on the verge of yet another revolution. Biology is transforming to a science based upon information. That’s what genomics is all about. We’re seeing the convergence of biotechnology with information technology. We’re seeing the convergence of biotechnologies with materials technologies, and we’re going to see the impact of biotechnology across all sectors of the economy. This new economy only comes from intensive research and development. R&D is the currency of the bioeconomy, and the bioeconomy is the future of biotechnology.
[Peter A. Hackett; 17, 11:00]
Developments in biotechnology are accelerating and witnesses asked whether Canadians are prepared to meet the challenge of the global biotechnology race.
[Barry D. McLennan; 17, 10:48]Even though this biotechnology is developing at an accelerating speed, that presents us with a challenge, because as a nation and as a population we have to ask ourselves — and indeed that’s the title of our brief — are Canadians prepared to meet the challenge of this global biotechnology race? Can we keep up? Can we put the resources in place to play in this game?
The Committee’s answers to these questions are in the affirmative.
The recent completion of the preliminary draft of the genome3 is one of the major scientific developments in the past few years. The Committee had the opportunity to learn about some recent developments in this area in Canada. The potential long-term benefits from the developments in genomics are staggering in terms of providing insight into such areas as hereditary diseases, susceptibility to environmental carcinogens, and enhancing human health. With these developments in genomics will come many opportunities for innovation.
[O]bviously the mapping of the human genome is an important event in the history of humanity from a science perspective and ought to benefit humanity and not just private individuals who would seek to take profit from it.
[The Honourable Brian Tobin; 3, 17:10]
The Canadian Biotechnology Strategy of Industry Canada incorporated Genome Canada as a not-for-profit organization in 1999. Genome Canada’s objective is to support a national genomics research initiative. It comprises industry, government, Crown agencies, hospitals and universities. Genome Canada will coordinate research within, but not limited to, the areas of: (1) genomics and proteomics; (2) genotyping; (3) bioinformatics; (4) new technology development; and (5) ethical, legal and social implications. Genome Canada received $160 million in the 2000 Federal Budget and an additional grant of $140 million in February 2001. Funds from three sources — the Canada Foundation for Innovation, the private sector and provincial governments — will leverage the $300 million provided by the federal government and provide the total funding that Genome Canada projects will be required for its first five years of operation.
On February 28 I announced a further contribution of $140 million for Genome Canada. That brings total funding for that organization to some $300 million. That contribution is expected to leverage another $320 million in contributions from other partners by April 1, 2005. [The Honourable Brian Tobin; 3, 15:45]
Although Canada has not spent much on genomics in the past, the Committee applauds the government’s support of this very important research initiative that can benefit Canada and Canadians. The Committee was told that Genome Canada will face a number of challenges in the coming years which the Committee expects to be met.
[O]ur major challenge in the coming year, or perhaps over the next 18 months, is to move up from sixth to third place in terms of publications, because if we publish more while maintaining the same quality, Canada will definitely be a major player in specific areas. Our second challenge is to create international partnerships. This process has already begun. We currently have a list of 17 projects involving the best Canadian researchers. These projects are internationally competitive and it is now up to us to develop a partnership with foreign partners. Lastly, our final challenge is to make Genome Canada funding available to industry. We hope that over the coming year, an increasing number of Canadian biotechnology companies will be eligible for Genome Canada funding in co-operation with universities. [Martin Godbout, Genome Canada; 16, 9:25]
Witnesses informed the Committee of the many excellent results from Genome Canada in its first year of operation.
As early as July 2000, the five Canadian centres and their respective boards had been set up. An inventory of over 275 projects had been submitted in the five genomics centres in Canada by September 2000. In November, the five centres submitted 73 letters of intent corresponding to 73 large-scale projects. These 73 projects were assessed by an international peer committee. On January 26, 2001, the five genomics centres each submitted a business plan. A total of 31 projects were presented in the five business plans representing maximum investments of over $600 million. … On March 22, 2001, a little less than a month ago, the board of Genome Canada selected 17 projects for the whole of Canada in five areas: health, the environment, forestry and fisheries and agriculture. These projects represented a total investment of $270 million, of which $135 million would be provided by Genome Canada and the remaining $135 million would come from the provinces. [Martin Godbout; 16, 9:20]
The Committee was very pleased to see the federal and provincial governments actively supporting such a vitally important research initiative. It hopes to see more examples of this type of collaborative support in the area of S&T investments.
One of the key technologies of the future will be nanotechnology. At its fundamental level, this technology consists of making ultra-small machines to perform tasks. Nanotechnology has the potential to transform many aspects of society. It is very much in its infancy in terms of development and many of its applications are either yet undreamed of or are still in the realm of science fiction.
So what is nanotechnology? It’s the fusion of life sciences and physical sciences, which one day will lead to faster computers, smarter robots, and even tiny probes that could engineer tasks within our body. Just to give some perspective, a nanometre is a billionth of a metre, or about four atoms placed side by side. So it’s about making materials at the absolute fundamental limit.
[Peter A. Hackett; 16, 9:56]
One of the witnesses explained this technology in very practical terms.
We all are nanotechnology. Each of us operates because of biological machines that have been designed over millennia to be very, very efficient and very, very selective. Biology teaches us all about making molecular devices that carry out engineering type functions. And we need to bring this knowledge and this approach to the world of materials and the world of micro-electronics.
[Peter A. Hackett; 16, 9:56]
The Committee was concerned to hear that other nations are already investing heavily in this revolutionary technology while Canada is still only thinking about it.
The U.S., Europe, and Japan each spent $180 million in nanotechnology in 1997. In 2002, President Bush is requesting $485 million in the United States. Japan has just announced a $410 million program. In Osaka, 61 Japanese companies are forming a nanotechnology institute. In New York state IBM is co-funding a centre of excellence in nanotechnology this year. In Switzerland they have a well-integrated national effort, $24 million for advanced science and $55 million for commercialization. In Germany there are a number of large-scale efforts, including a $100 million program for early commercialization efforts. [Peter A. Hackett; 16, 9:55]
On nanotechnology, we’re working on it. We’re currently seized with that question. I don’t want to get ahead of the process, but we’re very much interested. [The Honourable Brian Tobin; 3, 17:12]
Clearly, government action is required.
Canada has one of 20 neutron facilities in the world. Neutron facilities generate neutrons that are used to conduct materials research. These facilities are a key S&T facility/tool that are used extensively by industry and academia. The current facility in Chalk River is nearing the end of its useful life and a new facility needs to be built if we are to continue this work. There seems to be a fair amount of agreement among the research community that one component of Canada’s twenty-first century scientific infrastructure should be this Canadian neutron facility at Chalk River.
Neutron beams are a probe that are used to investigate materials. This is the business of generating new knowledge about materials, things that people don’t know already. Neutron beams give especially unique information about materials, and this unique information enables you to be competitive with how you make materials and how you implement them in the things we build in industry and in society. So this knowledge is used by three parts of Canada’s knowledge infrastructure: universities for training and basic science; government laboratories, basic science directed at economic impact; and industry itself. [John Root, National Research Council of Canada; 16, 10:10]
Today, thousands of researchers use neutron scattering in materials physics, chemistry, biology and engineering. This requires a specialized facility with highly trained staff and very expensive equipment.
It’s a specialized resource. It requires a local team of experts to help non-expert users get the information they need out of the technique. As you saw, the team we have at Chalk River is very small. The members find opportunities in other countries very attractive; two of my six people have standing job offers in Australia. Two are very senior and will likely retire shortly. It will be difficult for me to bring in highly qualified people to replace them, so the essential personnel needed to make this technique available to Canadians will be gone. I feel it will happen soon. There’s a threat. You need that expertise to help Canadians benefit from neutrons, and this situation means that Canadians will not have that access any more. Over the next few years I think you’ll find that Canada’s ability to exploit neutron information will dissipate across the nation. There will always be a few profs who go to international labs and benefit from the expertise there, but as you saw, there’s an increasing demand on neutron sources worldwide. Canadians who aren’t contributing may not be as welcome at these international labs as those who are players in the field. I think if you don’t practise these advanced technologies and develop the knowledge on how to really exploit the information you get, you can’t really benefit from access to foreign sources. I believe you'll be taking away from Canada one of the three pillars of advanced technology that support materials research. [John Root; 16, 10:10]
There is a shortage of neutron facilities and other nations are replacing their neutron sources that are instrumental in some areas of advanced research.
While all around the world people are scrambling to replace their neutron sources, and here is the list of some of the projects that are going on right now. Small countries, non-nuclear countries, such as Australia, Korea, Taiwan, all recognize the neutron source is essential to support advanced-materials research and they’re building them now. Larger projects, based on a different method for creating neutrons, are also underway, most notably in the United States. A $2-billion project called The Spalatian Neutron Source will be ready to produce neutrons in 2007. [John Root; 16, 9:34]
The Committee learned that a Canadian proposal for a new facility called the Canadian Neutron Facility has been submitted to the federal government but that no decision has yet been made.
In Canada, we also have a proposal for a new neutron source. It has been called for over a decade by the neutron scattering community that Canada needs a new and improved source over what we already have at Chalk River. And this source is called the Canadian Neutron Facility. We’re looking down from above a large laboratory. Here is the neutron source. It’s very small, about the size of a bucket, and it shines neutrons out in many directions to feed a number of instrument stations. This project is going to cost around $466 million, escalated over six to eight years, but it will be a facility that has a life of 40 years and will support 20,000 research projects. So this is not a big science project that just answers one question; it answers thousands of questions and has an impact all across the economy of Canada. [John Root; 16, 9:34]
The … (neutron facility) is one that is a priority for review, certainly, but I don’t think government is ready at this stage to pronounce itself. We haven’t completed the proper review and examination that’s required, measuring this priority against all other priorities and seeing at the end of the day which meets the test for expenditure. [The Honourable Brian Tobin; 3, 16:00
]Light Source Synchrotron Project
The Committee heard about another important scientific facility whose inception goes back to the late 1970s. On March 31, 1999, funding was announced for the Light Source Synchrotron Project, with the Canada Foundation for Innovation being the biggest contributor.
In Saskatoon, many of you will know, the Canadian light source synchrotron project at the University of Saskatchewan is providing an opportunity for basic research affecting a range of products, including newer drugs and vaccines, microscopic machines, implants, and more powerful computer microchips. This project is the largest initiative funded by the Canada Foundation for Innovation since its inception. Indeed, with all funding partners in, the capital cost of that project is about $170 million.. [The Honourable Brian Tobin; 3, 15:47]
Synchrotron radiation is the light produced when an extremely high-speed beam of charged particles (such as electrons) is bent in a magnetic field. This light covers the range of the electromagnetic radiation spectrum from infrared to gamma rays, and it is modern technology’s best available source of X-rays. Canada is currently the only major industrial nation without its own dedicated synchrotron radiation facility in operation. This important project will provide Canadian researchers in many areas with an invaluable tool.
Virtually all of the scientific areas from biology, medicine, physics, chemistry, geology, agriculture, biotechnology, environmental sciences, mining, and archaeology can potentially benefit. … [B]iotechnology and pharmaceuticals and medicine can benefit from this, as well as advanced materials, information technologies and micro-systems, mining, natural resources, and the environment. [Walter Davidson, National Research Council of Canada; 16, 9:40]
Although the Canadian Light Source Project expects to eventually get 25% of its revenue from industrial contracts, the project still lacks in approximately 18% of its operating funding needs. The Committee finds the approval of such important S&T facilities encouraging but questions how the project came to be funded by government while missing some of its required operating funding.