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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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Table of contents

Ministers’ message ................................................................................ 1

Results at a glance ................................................................................ 3

Raison d’être, mandate and role: who we are and what we do .................... 7

Raison d’être .................................................................................... 7

Mandate and role .............................................................................. 7

Operating context and key risk ............................................................... 9

Operating context .............................................................................. 9

Key risk ......................................................................................... 10

Results: what we achieved ................................................................... 13

Programs ....................................................................................... 13

Marketplace Frameworks and Regulations ....................................... 13

Marketplace Competition and Investments ...................................... 16

Spectrum, Telecommunications, and the Digital Economy ................. 19

Science, Technology and Innovation Capacity .................................. 23

Industrial Research and Development Financing .............................. 26

Small Business Research, Financing and Services ............................ 29

Industrial Competitiveness and Capacity ......................................... 31

Community Economic Development ............................................... 35

Internal Services ............................................................................. 37

Analysis of trends in spending and human resources ............................... 41

Actual expenditures ......................................................................... 41

Actual human resources ................................................................... 44

Expenditures by vote ....................................................................... 45

Government of Canada spending and activities ................................... 45

Financial statements and financial statements highlights ...................... 45

Financial statements .................................................................... 45

Financial statements highlights ...................................................... 45

Supplementary information .................................................................. 51

Corporate information ...................................................................... 51

Organizational profile ................................................................... 51

Reporting framework .................................................................... 52

Supporting information on lower-level programs ................................. 53

Supplementary information tables ..................................................... 53

Federal tax expenditures .................................................................. 53

Organizational contact information .................................................... 53

Appendix: definitions ........................................................................... 55

Endnotes ........................................................................................... 59

2017–18 Departmental Results Report

Innovation, Science and Economic Development Canada 1

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


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.



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.


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



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.



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

http://pm.gc.ca/eng/mandate-letters


8 Raison d’être, mandate and role



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


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.



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


12 Operating context and key risk



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.

https://laws-lois.justice.gc.ca/eng/regulations/SOR-2018-120/index.html


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



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



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.



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 1st, 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 Thriftyiv

and Enterprise Rent-A-Carv.

https://www.canada.ca/en/competition-bureau/news/2017/12/federal_court_ofappealupholdsdecisioninfavourofrealestateinnovat.html

https://www.canada.ca/en/competition-bureau/news/2017/04/hertz_and_dollarthriftytopay125millionpenaltyforadvertisingunatt.html

https://www.canada.ca/en/competition-bureau/news/2018/02/enterprise_rent-a-carcanadatopaya1millionpenaltyforadvertisingun.html



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.

https://www.canada.ca/en/competition-bureau/news/2018/01/up_to_290_5_millionincompensationforcanadiansinvolkswagenaudiand.html

https://www.canada.ca/en/competition-bureau/news/2017/06/the_bureau_reachesagreementstoaddresscompetitionconcernsintheret.html


http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/04322.html

https://www.ic.gc.ca/eic/site/094.nsf/frm-eng/MBED-AJL22H




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 achieved

Expected 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.









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





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.



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.



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 initiativexi

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 programxii

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 CanCodexiii

and Accessible Technology programs, the Digital Literacy

Exchange programxiv

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 programxv

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.

https://www.ic.gc.ca/eic/site/111.nsf/eng/home

http://www.ic.gc.ca/eic/site/118.nsf/eng/home


http://ito.ic.gc.ca/eic/site/102.nsf/eng/h_00000.html





Results achieved

Expected results






Canada has a growing digital economy

Investment in dollars by telecommuni-cations 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).







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.





715 677 (38)



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.

http://www.ic.gc.ca/eic/site/093.nsf/eng/00008.html





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

researchxx

; 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

https://www.ic.gc.ca/eic/site/052.nsf/eng/00007.html

https://www.canada.ca/en/innovation-science-economic-development/programs/science-technology-partnerships/investment-fund/post-secondary-institutions-strategic-investment-fund.html





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 achieved

Expected 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.









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.





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.



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.


https://www.canada.ca/en/innovation-science-economic-development/news/2017/04/investing_in_regionalinnovationanddevelopment.html




Results achieved

Expected results


Target* Date to achieve target




Investment in leading-edge R&D in targeted Canadian industries

Dollar value to date of disbursement to firms for R&D activities

AIF (2008):

$476.3 million

ASIP (2015):

$44.7 million

SADI (2007):

$1.40 billion

TDP (2013):

$67.4 million

TPC (1996):

$3.16 billion

March 31, 2018

AIF: $387.6

million

ASIP: $20.7

million

SADI: $1.53B

TDP: $65.6M

TPC: $3.16B

AIF: $367.25 million

ASIP: $18.5 million

SADI: $1.23 billion

TDP: $46 million

TPC: $3.16 billion

AIF:

$342 million

ASIP:

$4.03 million

SADI:

$1 billion

TDP:

$15 million

TPC:

$3.16 billion

Dollars to date of investment leveraged per dollar of ISED disbursements in R&D projects

AIF (2008):

$7.25

ASIP (2015):

$1.00

SADI (2007):

$1.82

TDP (2013):

$1.00

TPC (1996):

$2.33

March 31, 2018

AIF: $7.03

ASIP: $1.05

SADI: $1.75

TDP: $1.00

TPC: $2.33

AIF: $7.21

ASIP: $1.07

SADI: $1.79

TDP: $1.00

TPC: $2.33

AIF: $7.08

ASIP: $1.00

SADI: $1.82

TDP: Nil

TPC: $2.33

* Program start dates in parentheses.

The variance between the target and actual result for the dollar value of disbursement under AIF,

ASIP and TDP is attributed to spending delays from certain projects that received funding

through these programs. The variance related to the actual results for the amount of investment

leveraged by AIF is due to the timing of when claims are submitted for reimbursement of

project-related eligible costs, as well as the associated percentage of the leveraged amount. For

SADI, the variance is due to some of the larger SADI projects, which also had lower leveraged

percentages than the average project, having been terminated prior to completion.









359,430,758 359,430,758 412,030,007 394,993,951 35,563,193

The variance between Planned Spending, Total Authorities and Actual Spending is primarily due

to new funding received for SIF and the consolidation of the legacy programs.





50 52 2

Small Business Research, Financing and Services

Description

This program enhances the growth and competitiveness of small business and encourages

entrepreneurial activity across Canada. It raises awareness across government of the challenges

facing small businesses and provides knowledge and expertise on small and medium-sized

enterprises (SMEs) in a number of areas, including entrepreneurship, financing, innovation, and

growth firms. It also addresses obstacles to growth such as paperwork burden and delivers

programs that help support SMEs.

Results

In 2017–18, ISED continued to support SMEs across the country to help them grow and become

more internationally competitive. The Department also conducted outreach activities to promote

its services to businesses and to engage with provincial, territorial, and municipal governments to

align complementary services supporting entrepreneurs and SMEs.

The Canada Small Business Financing Program (CSBFP) helps businesses get access to loans

that would otherwise not be available or would only be available under less favourable terms.xxiii

In 2017–18, 5,901 loans worth $1.2 billion were registered with the CSBFP, an increase of 12

percent and 23 percent, respectively, relative to last year. Start-ups (i.e. businesses in operation

for less than one year) received the majority of the loans (57 percent). Accommodation and food

http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home



services and retail trade were the two largest industry sectors, representing 53 percent of the

loans in 2017-18.

To increase the efficiency of the CSBFP and make it easier for SMEs to access the capital they

need, ISED continued to encourage the use of the online loan registration application and direct

deposit payment initiative. As of March 31, 2018, 96 percent of the loans and registration fees

and 100 percent of the claims and refund payments were being processed electronically.

Results achieved

Expected results






Canadian small and medium sized-enterprises grow and become more internationally competitive

The percentage of businesses expecting to grow their total revenues over the next three years

77% November 30, 2019

N/A N/A 77%*

* For the calendar year 2014 (the survey is completed every three years).

Facilitating access to business permits and licences

The BizPaL service, led by ISED, is a unique collaboration between all levels of government, facilitating access for entrepreneurs and business owners to the permits and licences they require to start and grow their businesses.

Following BizPaL’s Restaurant Bundle pilot project with British Columbia in 2016–17, Ontario implemented an additional innovative bundle in the Toronto area in 2017–18.

This new BizPaL feature provides local restauranteurs with a dashboard view of their progress through the process of acquiring their required permits, inspections, and licences. It also provides an up-to-date tally of wait times and potential costs that help restauranteurs plan and budget efficiently. Additionally, users can see the optimal order in which to pursue permits and licences and share their progress via a reporting tool.

In 2017-18, there were close to 700 user sessions for this bundle pilot and early numbers for 2018-19 show that use of the bundle is on track to surpass 2017-18 numbers, with more municipalities across Canada showing interest in joining the pilot.









84,501,977 84,501,977 82,514,300 80,232,379 (4,269,598)





119 147 28

The variance between Planned and Actual full-time equivalents is primarily due to the transfer of

the Accelerated Growth Service to this program and new digital transformation activities.

Industrial Competitiveness and Capacity

Description

This program helps Canadian industries increase their competitiveness in global markets and

improve their capacity for developing and marketing innovative products and services. The

program develops expertise on Canadian firms and sectors through research and analysis and

engagement with associations, governments and leading firms. It applies this expertise to

develop and contribute to policy, legislation and regulations aimed at strengthening the

contribution of industry to Canada's innovation performance and economic well-being. This

program collaborates with the private sector on industry development; attracts investment and

promotes Canadian expertise; and advances initiatives for increasing productivity and supporting

growth.

Results

In 2017–18, ISED continued to strengthen the manufacturing sector to foster globally

competitive industries, while creating jobs and economic growth.

The Department undertook several policy, research and programming initiatives to help maintain

and attract future investments in a number of key sectors, including aerospace, automotive,

digital technologies and life sciences. ISED also conducted analysis and policy development in

areas of the Canadian economy such as manufacturing, life sciences, and consumer products.



This included significant undertakings in the areas of steel, aluminum and US tariffs, and inputs

into the NAFTA negotiations.

In collaboration with both internal and external partners, a key focus has been on conducting

research to help inform policy and programming in areas such as cybersecurity, innovative

technologies, and artificial intelligence.

ISED used its expertise in various industrial sectors to support the development of targeted

pitches for foreign direct investment by Global Affairs Canada and the Trade Commissioner

Service. It has developed printed pitch products and industry-specific key messages that have

been used by the Trade Commissioner Service in meetings

with a number of key stakeholders.

The Department established the Economic Strategy Tables

to support innovation and growth in advanced

manufacturing, agri-food, clean technology, digital

industries, health/bio-sciences and resources of the future.

In February 2018, the six Tables published interim reports

that identify priority themes to help ensure that Canada is

innovative to its greatest capacity.xxiv

In 2017–18, ISED implemented Canada’s Tourism Vision,

a five-year whole-of-government approach to support

growth in the Canadian tourism sector.xxv

Tourism is a

major driver of Canada’s economy, is Canada’s number

one employer of youth, and is an important provider of

employment for new Canadians. In its first year, the Vision

accomplished several key milestones.

Through the development of a strategic plan, ISED

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. xxvi

In 2017-18, ISED worked with the Chinese

government and Destination Canada to design a common

logo for the CCYT, which was launched in China by the

Prime Minister and Chinese Premier in December 2017.

ISED, in partnership with Agriculture and Agri-Food

Canada, commissioned a study of the culinary tourism

sector in Canada.

Progress of Canada’s Tourism Vision

In 2017, Canada welcomed a new record high 20.8 million international tourists, surpassing the previous record of 20.1 million established in 2002 by 3.9%. This tourism performance was in part due to celebrations marking the 150

th anniversary of Canada’s Confederation.

Additionally, there was progress on a number of action items:

Mexican visa restrictions have been lifted and, as a result, Mexican tourists account for the fastest growing tourist market, with a 24.8% increase in the first quarter of 2018 over 2017;

Transport Canada legislation on modernizing the air traveller experience, including a passenger bill of rights, received Royal Assent in May 2018;

32 Indigenous tourism businesses participated in Rendez-vous Canada 2017 in Calgary;

The Government of Canada opened seven new visa application centres in China in 2017;

ISED provided funding to support LGBTQ2 representation at tourism trade shows as well as the development and delivery of six inclusion training sessions across the country. These sessions resulted in over 140 LGBTQ2-certified “inclusive” tourism businesses.



http://ito.ic.gc.ca/eic/site/100.nsf/eng/home



ISED also continued to collaborate with its provincial and territorial partners in growing the

competitiveness of Canada’s tourism sector through the Federal-Provincial-Territorial Tourism

Strategy under the 2016 Nunavut Declaration.

The Industrial and Technological Benefits (ITB) Policy is Canada’s principal tool to leverage

economic benefits from defence procurement. It requires the winning bidder on defence and

major Canadian Coast Guard contracts to undertake business activities in Canada at least equal to

the value of the contract. In 2017, $1.8 billion in additional ITB obligations were added to the

ITB portfolio, which has grown to $43.8 billion since 1986.

To inform its decision-making under the Defence Procurement Strategy, Canada relies on a

combination of in-house research and analysis, industry consultations, and third-party expertise.

In support of this need, ISED launched a request for proposal (RFP) for defence sector research

and analysis. The Department also improved its own procedures for analyzing collected data,

allowing the branch to provide more detailed reports on new ITB commitments, particularly in

relation to SME and R&D content.

In addition to expanding its data analytic capabilities, ISED reached key milestones on major

upcoming procurements. RFPs were issued on the Canadian Surface Combatant project,

Canada’s largest acquisition to date and which will help to drive innovation and growth for years

to come, while greatly strengthening the Canadian shipbuilding industry. The Department also

began industry engagement on the Future Fighter Capability Project, meeting with firms across

Canada to discuss industrial participation in the procurement and develop a strategy for

leveraging economic benefits that will support innovation, grow the economy, and create middle-

class jobs in Canada.



Results achieved

Expected results






Canadian industries have the capacity to prepare for and respond to risks and opportunities in domestic and global markets

Canada's ranking among G7 countries for "value chain breadth"

6th March 31, 2018

7th 7th 7th

Canada's ranking among G7 countries for "firm-level technology absorption"

6th March 31, 2018

5th 5th 6th

The variance between the Target and Actual result for the indicator, “Canada’s ranking among

G7 countries for ‘value chain breadth” is due to the fact that, although Canada’s overall score

improved, it remained behind Italy in the G7-specific ranking.







35,618,706 35,618,706 37,090,097 36,987,511 1,368,805





210 231 21

The variance between Planned and Actual full-time equivalents is primarily due to the creation

of the Economic Strategy Tables.



Community Economic Development

Description

This program advances the economic development of Northern Ontario communities in the same

manner that regional development agencies support similar activities in other regions of Canada.

Its main goal is to strengthen the Northern Ontario economy by providing financial support

through contribution agreements for economic and community development projects led by the

private, not-for-profit and public sectors, including support for official language minority

communities. This program also contributes to improving the availability of broadband Internet

access across Canada and provides computers for schools and not-for-profit organizations.

Results

In 2017–18, ISED continued to deliver the Connecting Canadians program, which provides

improved broadband coverage to rural and remote regions so that Canadians can participate in

the digital economy no matter where they live. Of the 87 projects approved under the program as

of March 31, 2018, 30 are complete, while the remainder are planned for completion by March

31, 2019. In total, the program is expected to provide high-speed broadband coverage to 300,000

households, exceeding the original target of 280,000.

Building on the success of Connecting Canadians, the

Department also implemented the new Connect to

Innovate (CTI) program, which will bring high-speed

Internet to a further 900 rural and remote communities by

2021, an increase to the initial target of 300. xxviii

This

program supports new backbone infrastructure to connect

institutions like schools and hospitals with a portion of

funding for upgrades and last-mile infrastructure to

households and businesses. As of March 31, 2018, 138

CTI projects have been announced, totalling $300 million

in funding.

The Technical Work Experience Program (TWEP) is a

companion program to Computers for Schools. It provides

students and recent graduates with paid, practical work

experience in refurbishment centres across Canada. In

2017–18, 261 interns were hired through the program,

which is considered a part of the Youth Employment

Strategy. One challenge the program has faced is low

female participation. TWEP partners are developing a

strategy to encourage more female applicants and have set a hiring target of 20 percent female

youth interns in 2018–19. In 2017-18, 16 percent of interns hired were female youth.

Computers for Schools

In 2017–18, the Computers for

Schools programxxvii

refurbished

76,653 computers and distributed them to schools and not-for-profit organizations, Indigenous communities, eligible low-income families, seniors and new Canadians.

In the past 25 years, Computers for Schools has refurbished more than 1.5 million computers, reducing the environmental impact of electronic waste, and distributed them across all provinces and territories.

Budget 2018 provided ongoing funding for the program, which is refining its donation strategy and expanding its mandate to include newer technologies, such as tablets and smartphones.



https://www.ic.gc.ca/eic/site/cfs-ope.nsf/eng/home




In 2017–18, through the Federal Economic Development Initiative for Northern Ontario

(FedNor), ISED led the development of the Prosperity and Growth Strategy for Northern

Ontario, an economic development roadmap for the region aligned with Canada’s Innovation and

Skills Plan.xxix

This process included extensive engagement efforts with approximately 1,000 key

stakeholders to ensure the strategy will effectively address issues important to Canadians living

and working in Northern Ontario. With the results of these consultations, FedNor is working

with federal and provincial partners on issues and opportunities identified by stakeholders.

FedNor, along with the other regional development agencies, refocused its programming to align

with the Government of Canada’s Innovation and Skills Plan. This helped to meet the specific

outcomes for regional development agencies and resulted in funding application approvals

focused on strong results for Northern Ontario including those promoting the growth of

Indigenous communities.

ISED also delivered the final year of the Canada 150 Community Infrastructure Program in

Northern Ontario, which celebrated Canada’s 150th anniversary through the rehabilitation or

improvement of existing community infrastructure assets and facilities. In 2017–18, FedNor

authorized $2.9 million for 43 projects, which leveraged $5.0 million in additional funding.

Results achieved

Expected results






Targeted businesses and organizations in Northern Ontario create economic growth

Number of Northern Ontario businesses created, expanded or maintained with FedNor assistance

1,700 March 31, 2018

1,504 1,776 2,313

The variance between the target and actual result for the number of Northern Ontario businesses

created, expanded or maintained with FedNor assistance is due to the fact that ISED supports

long-term, multi-year projects in Northern Ontario and that the types of projects funded are often

influenced by regional, national and sometimes global economic factors. In this context, longer-

term trends are emphasized rather than specific results in a given fiscal year.

http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/h_fn04509.html










213,105,186 213,105,186 221,867,323 124,776,980 (88,328,206)

The variance between Planned Spending and Actual Spending is primarily due to unforeseen

delays in a certain number of the private-sector led projects that are supported under the Connect

to Innovate and Connecting Canadians programs. As a result, program recipients did not request

their entire allotted funding as expected in 2017-18. Of the lapsed funding, a total of $83.6 will

be reprofiled to future years (Connect to Innovate: $70.9M, Connecting Canadians: $12.7M).





114 116 2

Information on ISED’s lower-level programs is available in the GC InfoBase.xxx

Internal Services

Description

Internal Services are those groups of related activities and resources that the federal government

considers to be services in support of programs and/or required to meet corporate obligations of

an organization. Internal Services refers to the activities and resources of the 10 distinct service

categories that support Program delivery in the organization, regardless of the Internal Services

delivery model in a department. The 10 service categories are: Management and Oversight

Services; Communications Services; Legal Services; Human Resources Management Services;

Financial Management Services; Information Management Services; Information Technology

Services; Real Property Services; Materiel Services; and Acquisition Services.

Results

ISED’s internal services provide behind-the-scenes support for the Department’s programs in

areas such as human resources, financial management and information technology to ensure the

efficient and effective delivery of programs to benefit Canadians.

https://www.tbs-sct.gc.ca/ems-sgd/edb-bdd/index-eng.html



ISED continued to implement its Innovation 2020 agenda, which is the Department’s approach

to public service renewal and is inspired by the Blueprint 2020 vision. The agenda includes

activities in three areas: creating an agile workforce, ensuring sound stewardship and instilling a

culture of openness and transparency by adopting an ‘operating as one’ work style.

Agile Workforce: In 2017–18, ISED developed a departmental talent acquisition and

retention strategy that focuses on efficiently identifying, attracting and retaining a skilled

and diverse workforce. The Department also continued to streamline its human resources

processes using Lean methodology, so that HR services shift from a focus on transactions

to a strategic, efficient, client-based focus. ISED reviewed most of its staffing and

classification processes, with significant reductions made in the number of steps and the

time required to complete them.

Sound Stewardship: In 2017–18, ISED continued to implement its Respectful, Healthy

and Inclusive Workplace initiative and promoted open discussions on the results of the

2017 Public Service Employee Annual Survey. Reflecting the Federal Public Service

Workplace Mental Health Strategy, the Department developed a Workplace Mental

Health and Wellness Strategy. The Strategy was launched in April 2018, coinciding with

the opening of ISED’s Canadian Innovation Centre for Mental Health in the Workplace,

an innovative pan-government approach to creating a healthy and respectful work

environment.

Operating as One: In 2017–18, ISED implemented an internal change initiative called

Organizing for Success, which included a new structure, culture and governance to better

suit the Department and support its efforts to promote innovation and deliver results for

Canadians.

ISED also established a Portfolio and Intergovernmental

Engagement Secretariat (PIES) in 2017–18 to support

horizontal collaboration among the ISED Portfolio

organizations and cross-Portfolio alignment with the

Innovation and Skills Plan.

To give employees improved and more efficient access to

the information they need to do their jobs, ISED continued

to implement the GCDOCS file management system and

more than 60 percent of departmental employees have

access to the system.

In fall 2017, the Digital Office Transformation Program

was initiated to leverage the Workplace 2.0 office environment by untethering employees

through new digital tools and capabilities. The Digital Office is being implemented through five

streams:

HR-to-Pay Stabilization efforts

ISED collaborated with central agencies and other federal departments on HR-to-Pay Stabilization efforts.

The Department also hosts periodic meetings with heads of human resources from the ISED Portfolio organizations, to share information and tools, and seek opportunities for collaboration.



Digital Lounge: A kiosk-style help desk for on-the-spot IT support.

Smart Communication: Digital display screens located in lobby spaces to facilitate

engagement and keep ISED employees informed.

Collaboration Tools: Enabling ISED employees to connect and share with others,

regardless of location, through improved meeting room technology, Skype for Business,

digital whiteboards and instant messaging.

Productivity Tools: Mobility and collaboration enabled through new portable device

technology, Office 365, Enterprise Wi-Fi and remote access solutions.

Engagement and Adoption: A Workplace Transformation supporting the adoption of the

new digital workplace.







152,780,251 152,780,251 187,833,143 180,989,728 28,209,477

The variance between Planned Spending, Total Authorities and Actual Spending is due to

additional funding received during the year, including the operating budget carry forward to

support unfunded priorities and compensation adjustments as a result of collective bargaining.





1,417 1,462 45



2015–16 2016–17 2017–18 2018–19 2019–20 2020–21

Sunset Programs – Anticipated 0 0 0 5,400,000 5,400,000 5,400,000

Statutory 171,999,686 210,024,024 155,481,757 194,935,684 179,589,382 173,839,191

Voted 997,834,811 1,876,889,761 2,200,456,525 2,709,945,754 1,964,283,991 1,608,097,440

Total 1,169,834,497 2,086,913,785 2,355,938,282 2,910,281,438 2,149,273,373 1,787,336,631

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

Do

lla

rs

Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph

The increase in spending since 2016–17 is mainly explained by funding for the Post-Secondary

Institution Strategic Investment Fund (Budget 2016 provided $2 billion over three years, starting

in 2016–17). The Department’s authorities for 2018–19 increased as a result of new funding

from Budget 2017 to support various programs, such as the Innovation Superclusters Initiative,

Strategic Innovation Fund and Sustainable Development Technology Canada.


42 Analysis of trends in spending and human resources

Budgetary performance summary for Programs and Internal Services (dollars)

Programs and Internal Services









Marketplace Frameworks and Regulations (1)

73,477,129 73,477,129 68,908,556 69,559,914 215,046,817 66,620,345 50,124,282 42,207,494


41,903,401 41,903,401 41,209,734 40,569,081 43,078,858 45,359,615 41,153,360 46,107,684

Spectrum, Telecommunications and the Digital Economy (2)

98,327,554 98,327,554 90,667,780 89,897,757 108,138,900 112,498,906 98,326,709 117,906,335

Science, Technology and Innovation Capacity (3)

1,531,761,184 1,531,761,184 1,470,171,495 963,477,313 1,657,975,852 1,313,478,869 1,197,358,867 311,415,582

Industrial Research and Development Financing (4)

359,430,758 359,430,758 586,702,247 428,466,853 412,030,007 394,993,951 280,593,734 244,450,612

Small Business Research, Financing and Services

84,501,977 84,501,977 90,430,178 85,323,729 82,514,300 80,232,379 86,209,989 85,392,842

Industrial Competitiveness and Capacity

35,618,706 35,618,706 38,032,814 36,972,236 37,090,097 36,987,511 32,364,461 33,947,199

Community Economic Development (5)

213,105,186 213,105,186 352,222,148 264,067,978 221,867,323 124,776,980 146,688,614 156,421,933

Subtotal 2,438,125,895 2,438,125,895 2,738,344,951 1,978,334,862 2,777,742,154 2,174,948,556 1,932,820,016 1,037,849,681

Internal Services (6)

152,780,251 152,780,251 166,536,487 165,538,511 187,833,143 180,989,726 154,093,769 131,984,816

Total 2,590,906,146 2,590,906,146 2,904,881,438 2,143,873,373 2,965,575,297 2,355,938,282 2,086,913,785 1,169,834,497



Budgetary performance summary explanation

1. 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. The variance in Actual Spending for

previous years is primarily due to a delay in the upgrades to CIPO’s information

technology infrastructure.

2. 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.


primarily related to new funding for the Innovation Superclusters Initiative (some of

which was unspent), Innovative Solutions Canada, Sustainable Development Technology

Canada (SDTC), CanCode, Mitacs, the Canadian Institute for Advanced Research and the

Institute for Quantum Computing, as well as a reprofiling of funds for PSI-SIF to future

years and a lapse by SDTC.


primarily due to new funding received for SIF and the consolidation of the legacy

programs, as well as a reprofiling of SADI funds from the previous year.

5. The variance between 2017–18 Planned Spending and Actual Spending is primarily due

to a reprofiling of $70.9 million for Connect to Innovate to future years and a lapse of

$17.3 million for Connecting Canadians. The variance between 2015–16 Actual

Spending and Planned Spending for future years reflects approved funding for the

Connect to Innovate program.

6. The variance between Planned Spending, Total Authorities and Actual Spending is due to

additional funding received during the year, including the operating budget carry forward

to support unfunded priorities and compensation adjustments as a result of collective

bargaining.



Actual human resources

Human resources summary for Programs and Internal Services

(full-time equivalents)

Programs and Internal Services







Marketplace Frameworks and Regulations

1,729 1,743 1,801 1,769 1,835 1,843


379 347 351 339 349 348

Spectrum, Telecommunications and the Digital Economy (1)

806 700 715 677 708 708

Science, Technology and Innovation Capacity (2)

68 101 98 117 125 124

Industrial Research and Development Financing (3)

73 48 50 52 56 56

Small Business Research, Financing and Services (4)

100 123 119 147 143 140

Industrial Competitiveness and Capacity (5)

235 220 210 231 237 237

Community Economic Development

119 109 114 116 108 108

Subtotal 3,509 3,391 3,458 3,448 3,561 3,564

Internal Services (6) 1,202 1,410 1,417 1,462 1,428 1,428

Total 4,711 4,801 4,875 4,910 4,989 4,992

Human resources summary explanation

1. The variance between Planned and Actual FTEs is a result of a reduction in the

program’s activities, overestimated planned staffing and higher attrition than anticipated.

2. The variance between Planned and Actual FTEs is related to new funding received for the

implementation of the Innovation Superclusters Initiative.

3. The variance between 2015–16 Actual FTEs and future years is mainly due to a change

in requirements for how corporate services functions are reported. Previously, if

corporate services functions were reported exclusively in the delivery of one program,

they were reported as part of that program. New requirements mean all corporate services

functions are reported under Internal Services.



4. The variance between Planned and Actual FTEs is primarily related to the transfer of the

Accelerated Growth Service to Innovation Canada and the creation of the Digital

Transformation Service Sector.

5. The variance between Planned and Actual FTEs is primarily due to the creation of the

Economic Strategy Tables.

6. The variance between Planned and Actual FTEs is primarily due to the creation of

Innovation Canada and staffing delays related to an internal reorganization.

Expenditures by vote

For information on ISED’s organizational voted and statutory expenditures, consult the Public

Accounts of Canada 2017–2018.xxxi

Government of Canada spending and activities

Information on the alignment of ISED’s spending with the Government of Canada’s spending

and activities is available in the GC InfoBase.xxx

Financial statements and financial statements highlights

Financial statements

ISED’s financial statements (unaudited) for the year ended March 31, 2018, are available on the

departmental website.xxxii

Financial statements highlights

The financial results are shaped by the Department’s programs and internal services that aim to

help make Canada a world-leading centre for innovation, to help create better jobs, to strengthen

and grow the middle class and to provide better opportunities for all Canadians.

http://www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html






Condensed Statement of Operations (unaudited) for the year ended March 31, 2018

(dollars)

Financial information 2017–18 Planned results



Difference (2017–18 Actual results minus 2017–18 Planned results)

Difference (2017–18 Actual results minus 2016–17 Actual results)

Total expenses 2,662,387,979

2,450,494,699

2,236,821,778

(211,893,280)

213,672,921

Total revenues 257,686,915

223,712,577

229,530,814

(33,974,338)

(5,818,237)

Net cost of operations before government funding and transfers

2,404,701,064

2,226,782,122

2,007,290,964

(177,918,942)

219,491,158

* As per the 2017–18 Future-Oriented Statement of Operations.

Planned Results

The $177.9 million net variance between the 2017–18 Planned Results and the 2017–18 Actual

is primarily due to the reprofile of funding for existing Grants and Contributions programs, in

particular, the Post-Secondary Institutions Strategic Investment Fund (PSI-SIF) and Connect to

Innovate.

http://www.ic.gc.ca/eic/site/017.nsf/eng/h_07601.html



68%

23%

9%

Expenses by Type

Transfer Payments

Salaries and EmployeeBenefits

Other Operating Expenditures

75%

21%

4%

Revenues by Type

Radio Spectrum Licenses earnedon behalf of Government

Sales of services

Other revenues

Expenses

Total expenses were $2.5 billion in 2017–18, an increase of $214 million from 2016–17. This

variance is mainly attributable to increased spending for transfer payment programs such as the

Strategic Aerospace Defence Initiative and the Canada Foundation for Innovation. Furthermore,

salaries and employee benefits expenses increased due to collective agreements changes.

Revenues



90%

6%3% 1%

Liabilities by Type

Deferred revenue

Accounts payable and accruedliabilities

Allowance for loan guarantees

Other Liabilities

Total gross revenues were $1.5 billion in 2017–18, an increase of $17.8 million from 2016–17,

while net revenues of $223.7 million in 2017–18 increased by $5.8 million compared to the

previous fiscal year. Revenues from fines account for the majority of the increase in gross

revenue since last year. Revenues from spectrum licences represent the majority of gross

reported revenue in the Departmental Financial Statements. It is reported as revenue earned on

behalf of Government as it cannot be accessed by the Department. Sales of services represent

legislative fees and registrations collected by organizations such as the Canadian Intellectual

Property Office, the Office of the Superintendent of Bankruptcy and the Canada Small Business

Financing Program. A portion of these revenues is non-respendable and is reported as revenue

earned on behalf of Government.

Condensed Statement of Financial Position (unaudited) as of March 31, 2018

(dollars)

Financial information 2017–18 2016–17 Difference

(2017–18 minus

2016–17)

Total net liabilities 907,364,535 946,520,309 (39,155,774)

Total net financial assets 424,606,106 420,220,966 4,385,140

Departmental net debt 482,758,429 526,299,343 (43,540,914)

Total non-financial assets 146,450,975 128,945,894 17,505,081

Departmental net financial position (336,307,454) (397,353,449) 61,045,995

Liabilities



Total gross liabilities were $8.1 billion for 2017–18, a decrease of $967.3 million year-over-year,

while net liabilities were $907.4 million, a decrease of $39.2 million compared to 2016–17. The

decrease in gross liabilities is mainly attributable to deferred revenues. There were no new

spectrum auctions in 2017-18 and as a result, the recognition of revenue from previous year

auctions resulted in a decrease of the liabilities. The majority (99%) of the deferred revenue

cannot be accessed by ISED and is therefore reported as a liability held on behalf of

Government.

Assets

Total gross financial assets were $1.9 billion for 2017–18, a decrease of $195.5 million from

2016–17, while net financial assets were $424.6 million, an increase of $4.4 million year-over-

year. The decrease in gross financial assets is primarily attributable to the repayment of

unconditionally repayable contributions.

20%

70%

7%3%

Assets by Type

Due from CRF

Loans Receivable held onbehalf of government

Tangible Capital Assets

Other



Supplementary information

Corporate information

Organizational profile

Minister of Innovation, Science and Economic Development:

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

Minister of Science and Sport:

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

Minister of Tourism, Official Languages and La Francophonie:

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

Minister of Small Business and Export Promotion:

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

Institutional head:

John Knubley

Ministerial portfolio:

Innovation, Science and Economic Developmentxxxiii

Enabling instrument:

Innovation, Science and Economic Development Canada’s founding legislation is the

Department of Industry Act, S.C. 1995, c.1.xxxiv

Year of incorporation:

1892

http://www.ic.gc.ca/eic/site/icgc.nsf/eng/h_00022.html

http://laws-lois.justice.gc.ca/eng/acts/i-9.2/


52 Supplementary information

Reporting framework

ISED’s Strategic Outcomes and Program Alignment Architecture of record for 2017–18 are

shown below.

Strategic Outcome: The Canadian marketplace is efficient and competitive

Program: Marketplace Frameworks and Regulation

Sub-program: Trade Measurement

Sub-program: Insolvency

Sub-program: Federal Incorporation

Sub-program: Intellectual Property

Sub-program: Market Access

Sub-program: Consumer Affairs

Program: Marketplace Competition and Investments

Sub-program: Competition Law Enforcement

Sub-program: Investment Review

Program: Spectrum, Telecommunications and the Digital Economy

Sub-program: Spectrum and Telecommunications Policy and Legislation

Sub-program: Spectrum Management and Regulation

Sub-program: Communications Technologies Research and Innovation

Strategic Outcome: Advancements in science and technology, knowledge, and innovation

strengthen the Canadian economy

Program: Science, Technology and Innovation Capacity

Sub-program: Science and Technology Policy and Analysis

Sub-program: Science and Technology Partnerships

Program: Industrial Research and Development Financing

Sub-program: Automotive Innovation

Sub-program: Aerospace and Defence Innovation

Strategic Outcome: Canadian businesses and communities are competitive

Program: Small Business Research, Financing and Services

Sub-program: Small Business Financing and Growth

Sub-program: Service for Business

Program: Industrial Competitiveness and Capacity

Sub-program: Industry-Specific Policy and Analysis

Sub-program: Economic Outcomes from Procurement

Program: Community Economic Development

Sub-program: Northern Ontario Economic Development

Sub-program: Computer and Internet Access

Internal Services



Supporting information on lower-level programs

Supporting information on lower-level programs is available on the GC InfoBase.xxxv

Supplementary information tables

The following supplementary information tables are available on the ISED’s websitexxxvi

:

Departmental Sustainable Development Strategy

Details on transfer payment programs of $5 million or more

Evaluations

Fees

Internal audits

Response to parliamentary committees and external audits

Up-front multi-year funding

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special

measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of

Finance Canada publishes cost estimates and projections for these measures each year in the

Report on Federal Tax Expenditures.xxxvii

This report also provides detailed background

information on tax expenditures, including descriptions, objectives, historical information and

references to related federal spending programs. The tax measures presented in this report are the

responsibility of the Minister of Finance.

Organizational contact information

Corporate Management Sector


235 Queen Street

2nd

Floor, East Tower

Ottawa ON K1A 0H5

Email: [email protected]

Fax: 613-954-2340



http://www.fin.gc.ca/purl/taxexp-eng.asp

mailto:[email protected]


54 Supplementary information



Appendix: definitions

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government,

organizations or individuals; and payments to Crown corporations.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a three-year

period. Departmental Plans are tabled in Parliament each spring.

Departmental Results Report (rapport sur les résultats ministériels)

A report on an appropriated department’s actual accomplishments against the plans, priorities

and expected results set out in the corresponding Departmental Plan.

evaluation (évaluation)

In the Government of Canada, the systematic and neutral collection and analysis of evidence to

judge merit, worth or value. Evaluation informs decision making, improvements, innovation and

accountability. Evaluations typically focus on programs, policies and priorities and examine

questions related to relevance, effectiveness and efficiency. Depending on user needs, however,

evaluations can also examine other units, themes and issues, including alternatives to existing

interventions. Evaluations generally employ social science research methods.

experimentation (expérimentation)

Activities that seek to explore, test and compare the effects and impacts of policies, interventions

and approaches, to inform evidence-based decision-making, by learning what works and what

does not.

full-time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person-year charge against a

departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to

scheduled hours of work. Scheduled hours of work are set out in collective agreements.

gender-based analysis plus (GBA+) (analyse comparative entre les sexes plus [ACS+])

An analytical approach used to assess how diverse groups of women, men and gender-diverse

people may experience policies, programs and initiatives. The “plus” in GBA+ acknowledges

that the gender-based analysis goes beyond biological (sex) and socio-cultural (gender)

differences. We all have multiple identity factors that intersect to make us who we are; GBA+

considers many other identity factors, such as race, ethnicity, religion, age, and mental or


56 Appendix: definitions

physical disability. Examples of GBA+ processes include using data disaggregated by sex,

gender and other intersecting identity factors in performance analysis, and identifying any

impacts of the program on diverse groups of people, with a view to adjusting these initiatives to

make them more inclusive.

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2017–18 Departmental Results Report, those high-level themes outlining

the government’s agenda in the 2015 Speech from the Throne, namely: Growth for the Middle

Class; Open and Transparent Government; A Clean Environment and a Strong Economy;

Diversity is Canada’s Strength; and Security and Opportunity.

horizontal initiative (initiative horizontale)

An initiative where two or more departments are given funding to pursue a shared outcome,

often linked to a government priority.

Management, Resources and Results Structure (structure de gestion, des ressources et des

résultats)

A comprehensive framework that consists of an organization’s inventory of programs, resources,

results, performance indicators and governance information. Programs and results are depicted in

their hierarchical relationship to each other and to the Strategic Outcome(s) to which they

contribute. The Management, Resources and Results Structure is developed from the Program

Alignment Architecture.

non-budgetary expenditures (dépenses non budgétaires)

Net outlays and receipts related to loans, investments and advances, which change the

composition of the financial assets of the Government of Canada.

performance (rendement)

What an organization did with its resources to achieve its results, how well those results compare

to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of

gauging the performance of an organization, program, policy or initiative respecting expected

results.

performance reporting (production de rapports sur le rendement)

The process of communicating evidence-based performance information. Performance reporting

supports decision making, accountability and transparency.



plan (plan)

The articulation of strategic choices, which provides information on how an organization intends

to achieve its priorities and associated results. Generally a plan will explain the logic behind the

strategies chosen and tend to focus on actions that lead up to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those

amounts that receive Treasury Board approval by February 1. Therefore, planned spending may

include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The

determination of planned spending is a departmental responsibility, and departments must be

able to defend the expenditure and accrual numbers presented in their Departmental Plans and

Departmental Results Reports.

priority (priorité)

A plan or project that an organization has chosen to focus and report on during the planning

period. Priorities represent the things that are most important or what must be done first to

support the achievement of the desired Strategic Outcome(s) or Departmental Results.

program (programme)

A group of related resource inputs and activities that are managed to meet specific needs and to

achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture (architecture d’alignement des programmes)

A structured inventory of an organization’s programs depicting the hierarchical relationship

between programs and the Strategic Outcome(s) to which they contribute.

result (résultat)

An external consequence attributed, in part, to an organization, policy, program or initiative.

Results are not within the control of a single organization, policy, program or initiative; instead

they are within the area of the organization’s influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The

legislation sets out the purpose of the expenditures and the terms and conditions under which

they may be made.


58 Appendix: definitions

Strategic Outcome (résultat stratégique)

A long-term and enduring benefit to Canadians that is linked to the organization’s mandate,

vision and core functions.

sunset program (programme temporisé)

A time-limited program that does not have an ongoing funding and policy authority. When the

program is set to expire, a decision must be made whether to continue the program. In the case of

a renewal, the decision specifies the scope, funding level and duration.

target (cible)

A measurable performance or success level that an organization, program or initiative plans to

achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an Appropriation Act. The Vote

wording becomes the governing conditions under which these expenditures may be made.



Endnotes

i. The Ministers’ mandate letters, https://pm.gc.ca/eng/mandate-letters

ii. Industrial Design Regulations, http://laws-lois.justice.gc.ca/eng/regulations/SOR-2018-120/index.html

iii. Federal Court of Appeal upholds decision in favour of real estate innovation,

https://www.canada.ca/en/competition-

bureau/news/2017/12/federal_court_ofappealupholdsdecisioninfavourofrealestateinnovat.html

iv. Hertz and Dollar Thrifty to pay $1.25 million penalty for advertising unattainable prices and discounts,


bureau/news/2017/04/hertz_and_dollarthriftytopay125millionpenaltyforadvertisingunatt.html

v. Enterprise Rent-A-Car Canada to pay a $1 million penalty for advertising unattainable prices,

https://www.canada.ca/en/competition-bureau/news/2018/02/enterprise_rent-a-

carcanadatopaya1millionpenaltyforadvertisingun.html

vi. Up to $290.5 million in compensation for Canadians in Volkswagen, Audi and Porsche emissions case,


bureau/news/2018/01/up_to_290_5_millionincompensationforcanadiansinvolkswagenaudiand.html

vii. The Bureau reaches agreements to address competition concerns in the retail gas industry in Quebec,

Ontario and Atlantic Canada, https://www.canada.ca/en/competition-

bureau/news/2017/06/the_bureau_reachesagreementstoaddresscompetitionconcernsintheret.html

viii. Technology-led innovation in the Canadian financial services sector,


ix. Federal Contracting Fraud Tip Line, https://www.ic.gc.ca/eic/site/094.nsf/frm-eng/MBED-AJL22H

x. The Little Black Book of Scams, http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03074.html

xi. Connecting Families initiative, https://www.ic.gc.ca/eic/site/111.nsf/eng/home

xii. Accessible Technology program, http://www.ic.gc.ca/eic/site/118.nsf/eng/home

xiii. CanCode, http://www.ic.gc.ca/eic/site/121.nsf/eng/home

xiv. Digital Literacy Exchange program, http://ito.ic.gc.ca/eic/site/102.nsf/eng/h_00000.html

xv. Digital Skills for Youth program, http://www.ic.gc.ca/eic/site/122.nsf/eng/home

xvi. Clean Growth Hub, http://www.ic.gc.ca/eic/site/099.nsf/eng/home

xvii. Innovation Superclusters Initiative, http://www.ic.gc.ca/eic/site/093.nsf/eng/00008.html

xviii. The first 100 days in office, https://www.ic.gc.ca/eic/site/052.nsf/eng/00007.html

xix. Post-Secondary Institutions Strategic Investment Fund (PSI-SIF), https://www.canada.ca/en/innovation-

science-economic-development/programs/science-technology-partnerships/investment-fund/post-

secondary-institutions-strategic-investment-fund.html

xx. Canada Research Coordinating Committee, http://www.ic.gc.ca/eic/site/127.nsf/eng/home

xxi. Investing in Regional Innovation and Development national framework,

https://www.canada.ca/en/innovation-science-economic-

development/news/2017/04/investing_in_regionalinnovationanddevelopment.html

xxii. Strategic Innovation Fund (SIF), http://www.ic.gc.ca/eic/site/125.nsf/eng/home

xxiii. Canada Small Business Financing Program, http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home

xxiv. Canada’s Economic Strategy Tables: Interim Reports http://ito.ic.gc.ca/eic/site/098.nsf/eng/h_00013.html

xxv. Canada’s New Tourism Vision, https://www.ic.gc.ca/eic/site/095.nsf/eng/00002.html

https://pm.gc.ca/eng/mandate-letters

http://laws-lois.justice.gc.ca/eng/regulations/SOR-2018-120/index.html












https://www.ic.gc.ca/eic/site/094.nsf/frm-eng/MBED-AJL22H


https://www.ic.gc.ca/eic/site/111.nsf/eng/home















http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home




60 Endnotes

xxvi. Canada-China Year of Tourism (CCYT), http://ito.ic.gc.ca/eic/site/100.nsf/eng/home

xxvii. Computers for Schools program, https://www.ic.gc.ca/eic/site/cfs-ope.nsf/eng/home

xxviii. Connect to Innovate (CTI) program, http://www.ic.gc.ca/eic/site/119.nsf/eng/home

xxix. Prosperity and Growth Strategy for Northern Ontario, http://fednor.gc.ca/eic/site/fednor-

fednor.nsf/eng/h_fn04509.html

xxx. GC InfoBase, https://www.tbs-sct.gc.ca/ems-sgd/edb-bdd/index-eng.html#start

xxxi. Public Accounts of Canada 2017–2018, http://www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html

xxxii ISED Financial Statements, http://www.ic.gc.ca/eic/site/017.nsf/eng/07616.html

xxxiii. Innovation, Science and Economic Development portfolio,


xxxiv. Department of Industry Act, http://laws-lois.justice.gc.ca/eng/acts/i-9.2/

xxxv GC InfoBase, https://www.tbs-sct.gc.ca/ems-sgd/edb-bdd/index-eng.html#start

xxxvi Supplementary information tables, http://www.ic.gc.ca/eic/site/017.nsf/eng/07617.html

xxxvii. Report on Federal Tax Expenditures, http://www.fin.gc.ca/purl/taxexp-eng.asp

http://ito.ic.gc.ca/eic/site/100.nsf/eng/home





https://www.tbs-sct.gc.ca/ems-sgd/edb-bdd/index-eng.html#start




http://laws-lois.justice.gc.ca/eng/acts/i-9.2/

https://www.tbs-sct.gc.ca/ems-sgd/edb-bdd/index-eng.html#start


http://www.fin.gc.ca/purl/taxexp-eng.asp

2017 18€¦ · institutions strategic investment fund and the canada foundation for innovation’s...

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