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Section 2: Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome: A Fair, Efficient and Competitive Marketplace

The strategic outcome of a fair, efficient and competitive marketplace refers to a marketplace that protects the interests of businesses and consumers, imposes minimal regulatory burden, and fosters fair competition. This is important because a responsive and attractive Canadian market provides incentive for innovation and economic growth, and it supports individual Canadians. Industry Canada conducts a variety of activities to achieve this strategic outcome, such as improving marketplace programs and services, increasing education and awareness, and enhancing compliance and enforcement with marketplace rules and regulations. The Department also works to harmonize the regulatory system to reduce duplication and regulatory overlap.

More specifically, in 2006-07 Industry Canada's work to modernize marketplace frameworks was seen with the deregulation of the telecommunications industry. On April 4, 2007, the Minister of Industry announced that the Government of Canada was accelerating deregulation of local telephone services. This announcement came as a result of Industry Canada's efforts to emphasize the need for a competitive infrastructure within local telephone exchanges. Furthermore, due to the regulatory processes, frameworks and policy structures developed by the Department, Canada is one of the leading Organisation for Economic Co-operation and Development countries regarding its performance in the telecommunications sector.

In 2006-07, Industry Canada also made recommendations that led to amendments to the Patented Medicines (Notice of Compliance) Regulations under the Patent Act. These amendments were passed on October 5, 2006, making it easier for generic drug companies to predict when they may enter the market with a lower-cost version of a patented drug. This will accelerate market entry of generic drugs once relevant patents expire, providing firms with innovative new drugs with a minimum period of market exclusivity that is internationally competitive. Finally, in 2006-07, Industry Canada developed a renewed Spectrum Policy Framework for Canada, which is the policy foundation for the Canadian Spectrum Management Program.

The following section provides further detail on the ways in which Industry Canada contributes to a fair, efficient and competitive marketplace through the work of its program activities. Additional information can be found at Section 5.2.1.

This strategic outcome is delivered through six program activities:

  • Policy Sector – Marketplace
  • Operations Sector – Marketplace
  • Spectrum, Information Technologies and Telecommunications Sector – Marketplace
  • Office of Consumer Affairs – Marketplace
  • Competition Bureau – Marketplace
  • Canadian Intellectual Property Office – Marketplace

Analysis by Program Activity

2.1.1 Program Activity: Policy Sector – Marketplace

Policy Sector – Marketplace develops marketplace frameworks policy.

Sub-Program Activities: Policy Sector – Marketplace is delivered via five sub-program activities:

  • Marketplace Framework Policy Branch
  • Strategic Policy Branch
  • Micro-Economic Policy Analysis Branch
  • Small Business Policy Branch
  • International and Intergovernmental Affairs
Expected Result

Development and coordination of policy frameworks that support a fair, efficient and competitive marketplace

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Tabled and approved legislative initiatives to improve Canada's broad marketplace frameworks (e.g., copyright, insolvency, intellectual property, competition policy)
  • Amendments to the Patented Medicines (Notice of Compliance) Regulations under the Patent Act
  • Amendment to Schedule I of the Patent Act
  • Introduction of Bill C-47, The Olympic and Paralympic Marks Act, in the House of Commons
  • Amendment to clarify the meaning of "eligible financial contract" in insolvency and financial sector legislation by regulation

Industry Canada committed to the following for 2006-07:

  • Continue to update marketplace frameworks and policies.
  • Establish more predictable and stable rules for the protection of patents in high-knowledge industries.
  • Promote the competitiveness and prosperity of small businesses by reducing their paperwork burden.

Results Achieved

Marketplace Frameworks and Policies

In 2006-07, the Policy Sector, in partnership with other sectors, continued to undertake a number of initiatives to update marketplace frameworks and policies. These initiatives are detailed in the following:

  • The Policy Sector developed recommendations that led to amendments to the Patented Medicines (Notice of Compliance) Regulations under the Patent Act. These amendments were passed on October 5, 2006, and make it easier for generic drug companies to predict when they may enter the market with a lower-cost version of an innovative, patented drug. This will accelerate the market entry of generic drugs once relevant patents expire. These amendments were passed jointly with another set of regulations sponsored by Health Canada, which will provide innovative new drugs with a minimum period of market exclusivity that is internationally competitive.
  • The Policy Sector also brought forward an amendment to Schedule I of the Patent Act, which came into effect on September 21, 2006. The amendment added a triple-dose combination HIV-AIDS drug to the list of patented pharmaceutical products that are eligible to be exported to developing countries under Canada's Access to Medicines Regime (CAMR).
  • Related to this, a consultation paper on CAMR was released by the Policy Sector in November 2006 to solicit comments as to how the regime can better deliver on Canada's commitment to improve access to less expensive medicines that are urgently needed in developing and least-developed countries, while respecting international trade obligations and maintaining the integrity of the domestic patent system. Approximately 30 submissions, mainly from members of the pharmaceutical industry, non-governmental organizations (NGOs), academia and parliamentarians were received following the report's release. These submissions have been posted on the CAMR website. In the interim, the House of Commons Standing Committee on Industry, Science and Technology (INDU) decided to undertake a parallel study of CAMR. Policy Sector officials also participated in an NGO-organized workshop to hear directly from developing and least-developed countries about the barriers they face in importing drugs under CAMR. The Policy Sector has completed its review of all public input on CAMR and is working with other departments to prepare the report to be tabled in Parliament by the Minister of Industry, as required by the Patent Act.
  • The Policy Sector also brought forward legislation that provides intellectual property rights protection for Olympic and Paralympic words and symbols. Bill C-47, The Olympic and Paralympic Marks Act, provides special, time-limited intellectual property protection for terms such as "Olympic Games," "Olympics," "Olympia" and "Canada 2010"; short phrases such as "Faster, Higher, Stronger" and "Spirit in Motion"; and images such as the Olympic rings and the Vancouver 2010 inukshuk logo (a traditional Inuit stone sculpture) in the lead-up to the Vancouver 2010 Winter Games. This bill was introduced in the House of Commons on March 2, 2007, and received royal assent on June 22, 2007. The legislation strengthens the exclusive rights of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games over these words and symbols, and improves the Organizing Committee's ability to negotiate sponsorship agreements with businesses interested in associating themselves with the 2010 Winter Games.
  • Part 9 of An Act to Implement Certain Provisions of the Budget, which was tabled in Parliament on March 19, 2007, introduced amendments regarding "eligible financial contracts" (EFCs). These amendments were developed jointly with officials from the Department of Finance. EFCs are financial instruments used to hedge against risk, such as currency rate fluctuations. The amendments move the definition of EFCs from various pieces of legislation to their regulations so that they may be updated with relative ease as financial markets evolve. The amendments also allow parties the right to terminate an EFC in the event of an insolvency filing and to collect on their collateral. All of these reforms are designed to maintain a competitive Canadian market relative to the United States and the European Union and to ensure that holders of EFCs are not prejudiced by an insolvency filing. These amendments obtained royal assent after fiscal year 2006-07 had ended.
Internal Trade
  • In September 2006, the Committee of Federal-Provincial-Territorial Ministers responsible for Internal Trade agreed to implement a strategy to improve labour mobility so that by April 1, 2009, Canadians will be able to work and have their occupational qualifications recognized anywhere in Canada. The Minister of Industry is the federal government's representative on this committee, which is composed of federal, provincial and territorial ministers. The Policy Sector prepares the Minister in his efforts to eliminate barriers to internal trade at meetings of this committee.
  • Policy Sector made recommendations to the Minister of Industry to advance progress toward an energy chapter for the Agreement on Internal Trade. At a meeting in September 2006 with the support of the Minister of Industry, provincial and territorial ministers responsible for internal trade agreed to complete this work.
Small Business Competitiveness
  • The Policy Sector is also committed to improving the competitiveness of small businesses by measuring and reducing their paperwork burden. Activities in 2006-07 focused on measuring the compliance burden on businesses. Preliminary findings, however, demonstrate that progress toward this outcome has been slow. Industry Canada's Small Business Policy Branch published the first Survey Briefing for the Survey of Regulatory Compliance Costs in November 2006. Key findings included the fact that only a very small proportion of Canadian businesses (3 percent) perceive a decrease in the costs of complying with regulation, despite numerous efforts by governments to reduce the burden of paperwork. Most businesses also perceive an increased cost of complying with regulation, owing principally to the growing complexity of compliance. Industry Canada actively worked to reduce the cost of compliance through a number of initiatives to streamline client interaction, including e-filing, updating of rules and requirements, and simplifying forms.

Policy Sector – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $9.0 million $7.4 million $6.2 million
Human Resources 86 FTEs - 71 FTEs

2.1.2 Program Activity: Operations Sector – Marketplace

Operations Sector – Marketplace is responsible for developing instruments and for compliance with the marketplace frameworks to foster competitive conditions that will attract investment, encourage innovation and protect the public interest.

Sub-Program Activities: Operations Sector – Marketplace is delivered via four sub-program activities:

  • Regional Operations – Spectrum
  • Measurement Canada
  • Office of the Superintendent of Bankruptcy
  • Corporations Canada
Expected Result

Marketplace fairness, integrity and efficiency are protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management.

Industry Canada measures progress toward this expected result, in part, through the following indicators:


Indicators Progress in 2006-07
Public confidence in the insolvency system Level of Trustee Compliance
  • 92.3 percent of summary estates files are not older than three years
  • 60.2 percent of ordinary estates are not older than three years
Feedback from reviews of sectors where measurement forms the basis for financial transactions Extensive stakeholder consultations with manufacturers, businesses, consumers and other government departments resulted in the establishment of consensus-based recommendations on how measurement accuracy should be achieved and monitored in the fisheries and forestry sectors.
Year-over-year level of federal incorporations 21,247 new federal incorporations were issued under the Canada Business Corporations Act in 2006-07, an increase of 372 incorporations compared with 2005-06; 84 percent of these incorporations were completed online.
Year-over-year number of radiocommunications investigations conducted and/or resolved by the Regions
  • 1,015 directed investigations, an increase of 215 compared with 2005-06
  • 776 radiocommunications investigations, a decrease of 56 compared with 2005-06
(Note: Investigations are complaint-driven and are not instigated by the Department without cause.)

Industry Canada committed to the following for 2006-07:

  • Modernize its framework instruments and their operations through the work of marketplace service organizations (MSOs) (i.e., Measurement Canada, Corporations Canada, the Office of the Superintendent of Bankruptcy).
  • Ensure that the marketplace is responsive to stakeholder needs.
  • Be an active participant in the Government of Canada's effort to reduce the regulatory burden.
  • The Office of the Superintendent of Bankruptcy was to complete another phase of its e-filing system.
  • Corporations Canada was to prepare for a parliamentary review of the Canada Business Corporations Act.

Results Achieved

  • Operations Sector business units have ensured a fair, efficient and competitive marketplace in the areas of insolvency, federal incorporation, weights and measures, and spectrum management. They have done so through the use of new and existing key framework instruments such as regulations, legislation, policies and procedures.
  • Departmental framework instruments and their operations have been modernized through the work of the MSOs. Several forms under the Bankruptcy and Insolvency Act were modified to facilitate electronic transactions in the solvency system. Corporations Canada streamlined the forms used to apply for amendments or revivals of a corporation governed by the Canada Business Corporations Act to reduce the number of rejected applications. Measurement Canada signed onto the International Organization for Legal Metrology's Mutual Acceptance Arrangement (MAA) concerning the approval of non-automatic weighing devices. By signing this MAA, Measurement Canada will now be able to accept test results from other countries when approving these devices for use in the Canadian marketplace. Additional results achieved by each of the MSOs are detailed in the following.
Measurement Canada
  • In 2006-07, Measurement Canada began the pre-consultation phase of a major legislative review of the Weights and Measures Act and the Electricity and Gas Inspections Act. Consultations will soon take place with various stakeholders, including manufacturers of measuring instruments, businesses, consumers, utilities and other key parties to obtain views on modifying the Acts.
  • Following extensive consultations, stakeholder consensus-based recommendations on how measurement accuracy will be achieved and monitored in the fisheries and forestry sectors were developed and accepted by Measurement Canada. Implementation of the recommendations will commence in 2007-08.
  • Measurement Canada proceeded with the implementation of modifications to program and service delivery (including the use of authorized service providers and mutual acceptance arrangements to facilitate the delivery of legislated services) to ensure continued marketplace measurement accuracy at reasonable cost. In 2006-07, 21 companies received authorization to perform inspections on behalf of Measurement Canada. As well, Measurement Canada signed an international mutual acceptance arrangement for non-automatic weighing devices and load cells.
Corporations Canada
  • Corporations Canada successfully implemented the change to the annual return filing period for corporations governed by the Canada Business Corporations Act, which came into effect July 1, 2006. To minimize confusion, Corporations Canada's communications strategy included developing an online annual return calculator. Many corporations found this very helpful in determining when to file their annual return.
  • To increase compliance of federally incorporated businesses that file annual returns, Corporations Canada offered them the option of receiving a reminder notice by email. The response was positive, with over 40 percent of active corporations opting to do so. The initiative also increased online filings of the annual returns from less than 65 percent to almost 80 percent.
  • Reliable and up-to-date information regarding corporations is important to the functioning of the marketplace. Corporations Canada plays a role by providing access to data it collects on federal corporations. Users of this data were surveyed. The results showed that 100 percent of respondents found the data to be reliable (83 percent felt it was highly reliable, and 17 percent found it to be reliable). The feedback validated Corporations Canada's efforts to ensure that the data collected is reliable and up to date.
  • The Province of Saskatchewan has joined the provinces of Ontario, Nova Scotia, and Newfoundland and Labrador in participating in the Joint Online Registration Program (JORP). This program, originally proposed and established by Corporations Canada with three provincial partners as a government online initiative, allows Canadian businesses that have chosen to federally incorporate their companies online to meet the additional provincial business registration requirements (in any) of the participating provinces. Approximately 8,000 new corporations used JORP to meet their provincial filing requirement. To prepare for the parliamentary five-year review of the Canada Business Corporations Act, Corporations Canada conducted research and outlined a report on the provisions of the Act based on issues raised by stakeholders. Corporations Canada is ready to provide this information to Parliament when it begins the review.
Office of the Superintendent of Bankruptcy
  • The marketplace service organizations undertook a preliminary investigation of possible paperwork reduction opportunities, and Corporations Canada and the Office of the Superintendent of Bankruptcy Canada (OSB) participated in the pilot testing of a proposed accounting methodology.
  • In January 2007, the OSB made its e-filing system mandatory for consumer bankruptcies and proposals. As of March 31, 2007, the percentage of trustees using the e-filing system was 97 percent, showing trustees are using the system fully. Building on the work completed to date as part of the organizational restructuring, the OSB continued to focus on moving to a proactive, risk-based approach for trustee and debtor compliance activities, improving client services, and improving outreach capacity to stakeholders, clients and partners. The OSB also continued to enhance compliance with, and enforcement of, marketplace rules and regulations by developing a Trustee Risk Assessment Module.
Spectrum/Telecommunications
  • Through the Spectrum/Telecom Program, Industry Canada's regional offices are responsible for ensuring that its clients, including Canadian citizens, private industry and public sector organizations, have access to a quality radio frequency spectrum within Canada's regulatory framework. To do so, regional program delivery focuses on three types of activities:

    • First, the regional offices provide clients with timely access to the radio frequency spectrum. In 2006-07, the Department approved 25,163 licensing requests, 97 percent of which were answered within established service standards. An increasing number of clients submitted their requests for radio authorizations using the Department's electronic services, which help clients access the radio frequency spectrum more quickly.
    • Second, the Department is responsible for ensuring compliance by users of the radio frequency spectrum with the Radiocommunication Act and Radiocommunication Regulations. Each year, Industry Canada's regional offices conduct a variety of radiocommunications investigations across the country. These investigations ensure compliance with legislation, regulations, policies and licence conditions, thereby ensuring a quality radio frequency spectrum for all our clients. In 2006-07, the regional offices conducted 776 investigations into complaints of harmful interference on licensed radiocommunications systems. The regional offices also completed a licence compliance survey that showed that 70 percent of stations that were inspected were in compliance with their authorized parameters.
    • Third, the regional offices influence the Department's regulatory framework by representing the needs of clients and by presenting regional perspectives in the development of spectrum policies and regulations. In 2006-07, Industry Canada's regional offices participated in the development of policy for installing radiocommunications and broadcast antenna structures, as well as the policy for the use of 700-MHz spectrum for public safety systems and to provide broadband Internet access to remote and rural communities.

Operations Sector – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $87.0 million $87.5 million $86.5 million
Human Resources 1,357 FTEs - 1,258 FTEs

2.1.3 Program Activity: Spectrum, Information Technologies and Telecommunications Sector – Marketplace

Spectrum, Information Technologies and Telecommunications (SITT) Sector – Marketplace is responsible for developing regulations, policies, procedures and standards that govern Canada's spectrum and telecommunications industries and the digital economy. It ensures a modern telecommunications policy and regulatory framework, and effectively manages the radio frequency spectrum in the public interest to meet the communications needs of all Canadians and to encourage the adoption of enabling technologies across the economy.

Sub-Program Activities: SITT Sector – Marketplace is delivered via two sub-program activities:

  • Spectrum/Telecom Program
  • Electronic Commerce Branch
Expected Result

A policy and regulatory framework to govern Canada's radiocommunications and telecommunications infrastructure in support of Canadian marketplace requirements, and to shape the digital economy

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Degree of client satisfaction in the Canadian marketplace with the current policy and regulatory framework Continuing the renewal of legislation and the regulatory framework, including issuing the first-ever policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC) under the Telecommunications Act. The policy direction to the CRTC requires it to rely on market forces to the maximum extent feasible. Overall, feedback from industry and media was positive.

Industry Canada committed to the following for 2006-07:

  • Publish a renewed Spectrum Policy Framework to oversee the Canadian Spectrum Management Program.
  • Follow up on the Canadian Wireless Telecommunications Association's implementation plan for wireless number portability.
  • Ensure that Canada is at the forefront in terms of new telecommunications services and equipment.
  • Assess the impact of restrictions on foreign investment in telecommunications.
  • Update the Department's antenna tower-siting procedures.
  • Develop the government's telecommunications policy agenda.
  • Ensure that Canadian communications networks are safe and secure.

Results Achieved

Spectrum Management
  • One of Industry Canada's key objectives is to ensure that radio frequency spectrum – a finite public resource used by wireless carriers to provide a growing range of telecommunications services and for broadcasting, public security, emergency, and private and commercial uses – is managed in a fair, efficient and effective manner.
  • The publication of a renewed Spectrum Policy Framework for Canada, which is the policy foundation for the Canadian Spectrum Management Program, was announced in late spring 2007. The new framework is a timely updating and modernization of the existing document that communicates the underlying principles that the Department and the Minister will rely upon in exercising their authority under the Radiocommunication Act to manage the radio frequency spectrum resource in Canada. The new framework will be streamlined, shortened, updated and reoriented to reflect current practices and current government policy.
  • Industry Canada launched a licensing initiative in July 2006 to authorize the development of Canadian satellite communications services that will increase and improve broadcasting and telecommunications services to Canadian entrepreneurs and consumers. The consultations process was completed in January 2007, and the Department provided a recommendation to the Minister of Industry on the assignment of the licences in spring 2007.
  • Another priority action in the area of spectrum management was the launch of a public consultation on a framework to auction spectrum in the 2-GHz range, including spectrum for advanced wireless services. The notice was published on February 24, 2007, in the Canada Gazette. This consultation is the first step in a process leading to an auction of spectrum licences, expected in early 2008. A total of 105 MHz of spectrum will be made available.
Wireless Number Portability
  • The availability of wireless number portability (WNP) in all major urban communities across the country was announced on March 14, 2007. WNP will enable wireless phone service subscribers to change service providers and keep their existing phone numbers. It will also allow consumers to move a phone number from a wireline phone to a wireless phone and vice versa.
Antenna Siting
  • The Department has reviewed the final report of the National Antenna Tower Policy Review and is in the process of drafting an update to its procedures. In finalizing these procedures, the Department is giving consideration to the report's recommendations as well as to the comments received through public consultation. The approval and implementation of the updated procedures will take place in the 2007-08 reporting period.
Telecommunications Policy
  • An assessment and analysis of the Telecommunications Policy Review Panel report proposal on foreign investment restrictions in the telecommunications sector was conducted by Industry Canada, leading to ministerial advice on this matter.
  • The Department also has a key role in representing Canada's telecommunications and spectrum interests internationally. In fiscal year 2006-07, Industry Canada successfully achieved all of the Canadian objectives at the International Telecommunication Union (ITU) Plenipotentiary Conference. The Canadian objectives were developed in consultation with Canadian industry and other government departments, and achieved through skilful negotiation at the conference. Canadian objectives included:

    • the re-election of Canada to the ITU Governing Council;
    • the election of a Canadian candidate to the Radio Regulations Board, giving Canada influence over the adjudication of issues and disputes concerning the Radiocommunication Regulations;
    • securing an agreement on a range of measures to make the ITU's budgeting and management functions more effective and transparent; and
    • the successful adoption of Canadian views on issues guiding the work of the ITU and its sectors for the next four years, including preparations for the 2007 World Radiocommunication Conference and Radiocommunication Assembly.
  • Industry Canada also plays an important role in shaping the digital economy. Industry Canada develops effective legal and policy frameworks that promote the growth of the online marketplace in Canada and the conduct of e-commerce and e-business across all sectors of the economy. According to recent Statistics Canada data (Survey of Electronic Commerce and Technology in Canada – SECT, 2006), growth in the value of online sales averaged 50 percent a year since 2001. The value of the Canadian online market in 2006 was approximately $50 billion. These results demonstrate that the Department's work in this area – including effective privacy policies, cooperation with the private sector in dealing with spam and related threats through the Task Force on Spam, and support for emerging e-business platforms – has been effective in promoting the growth of the online marketplace.
Communications Security
  • In support of shaping the digital economy, Industry Canada also works with its partners to improve confidence in the marketplace by protecting individual privacy and curbing threats to the Internet and online markets. Key actions led by the Department in 2006-07 included:

    • Initiating the mandatory review of the Personal Information Protection and Electronic Documents Act (PIPEDA). The Department made representations to the parliamentary committee reviewing PIPEDA. PIPEDA sets rules for the collection, use and disclosure of personal information used for commercial purposes, requiring organizations to take measures to protect the privacy of Canadians when handling personal data.
    • The development of the Stop Spam Alliance, an international association of policy and regulatory bodies that have agreed to work together to strengthen laws and enforcement cooperation to deal with spam and related threats to the Internet and the online marketplace. The Alliance and other forms of trans-border cooperation will help to make domestic laws and policies in Canada and other countries more effective in addressing the problem of spam.

SITT Sector – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $59.9 million $68.9 million $67.0 million
Human Resources 375 FTEs - 342 FTEs

2.1.4 Program Activity: Office of Consumer Affairs – Marketplace

The Office of Consumer Affairs (OCA) plays a role in developing policies and non-regulatory instruments for consumer protection and in conducting consumer research, through working with other departments and governments, consumer organizations, industry and academia.

Sub-Program Activities: OCA's program activity is delivered via two sub-program activities:

  • Consumer Policy
  • Consumer Information and Coordination
Expected Result

Strengthened responses to consumer issues

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Number of initiatives responding to consumer issues with active engagement of the OCA 30 initiatives responding to consumer issues with active engagement of the OCA

Industry Canada committed to the following for 2006-07:

  • Explore appropriate responses to the rapid growth of the payday lending industry and the issue of identity theft.
  • Explore the following areas of internal policy research: virtual consumers, sustainable consumption and vulnerable consumers.
  • Continue to seek cost-effective non-regulatory approaches to address consumer marketplace issues such as standards, guides and codes of conduct.
  • Continue to enhance its consumer information website and its major tools to make it as effective as possible.
  • Address the recommendations from an evaluation in 2004-05 regarding the Management of the Contributions Program for Non-Profit Consumer and Voluntary Organizations.

Results Achieved

Payday Lending and Identity Theft
  • The OCA worked on intergovernmental projects to address common concerns regarding payday lending, identity theft and credit reporting. A joint identity theft consumer information campaign directed at law enforcement agencies was undertaken whereby over 20,000 copies of Identity Theft: A Checklist were distributed across Canada. This publication is available at the Consumer Measures Committee website.
  • Regarding payday lending, Bill C-26, An Act to amend the Criminal Code (criminal interest rate), received royal assent in May 2007. The amendments include specific provisions to address payday lending and enable provinces and territories to set limits on the cost of borrowing and regulate the business practices of payday lenders within their jurisdictions. The Act is the culmination of several years of collaborative work among the Department of Justice, the OCA, and provincial and territorial governments.
Internal Policy Research
  • The OCA has focused its internal policy research on vulnerable, virtual and sustainable consumers. Internal research on vulnerable consumers focused on consumer debt trends in Canada and supports continuing federal-provincial-territorial policy work on the alternative consumer credit market. Internal research on the virtual consumer was published in the 2006 fall publication of the Consumer Trends Update, available on the OCA's home website. The publication's research article "The Expansion of Cellphone Services" details the important consumer cellphone services market. Finally, OCA policy analysts initiated a broad scan of federal policies that affect sustainable consumption choices by Canadians; this work will continue into the next fiscal year and will support domestic and international policy development in this area.
Consumer Issues and Information
  • The OCA continued to enhance and add to its array of consumer information tools. The 2007 edition of the Canadian Consumer Handbook was released and included new consumer information specifically tailored for seniors and youth. This publication is available at the Consumer Measures Committee website. The OCA also released Cellphone Choices for Canadians: A Checklist, and Cellphone Choices for Canadians: A Guide. These publications are available online and in print. Online resources operated by OCA were enhanced to improve the ease with which consumers can find useful information from a variety of governmental and non-governmental sources. Navigation was improved between the OCA home site and the multi-partner Canadian Consumer Information Gateway, which provides integrated access to federal, provincial, territorial and non-governmental organization sources of consumer information.
  • One of the main tools on the partnering site, the Complaint Courier, was updated to improve its performance for consumers and to add additional complaint types to reflect emerging consumer issues. During 2006-07, the number of visitors to the OCA's websites averaged 66,875 per month. Compared with the previous fiscal year, there was a 67-percent increase in the number of visitors to the Canadian Consumer Information Gateway site alone. The OCA also developed and implemented successful strategies for reaching a greater number of consumers in a cost-efficient manner through the media, with particular emphasis on disseminating cellphone advice and tips for preventing identity theft. A direct mail campaign to 1,750 police stations across Canada was undertaken, which resulted in the distribution of more than 30,000 identity theft checklists. Media stories prompted the distribution of more than 35,000 copies of the cellphone checklist.
Contributions Program
  • OCA's Contributions Program provides consumer and voluntary organizations with the means to produce high-quality and timely research on consumer issues that affect the marketplace. Improvements to the program resulting from the 2004-05 evaluation include greater transparency in the selection process, improved assessment procedures in project proposals to ensure greater consistency and comparability in assessment outcomes, and better access to project summaries via OCA's online Consumer Policy Research Database.
  • During 2006-07, the Contributions Program funded 30 research projects designed to help advance knowledge on current and emerging consumer issues and to assist in consumer policy development that affects a wide range of issues, such as consumer laws and their application, consumers and the environment, consumer issues in the Far North, and the readability of food labels. Information on these projects can be found on the OCA website.
  • Under the Contributions Program, four organizations applied for and received funding to improve their capacity to carry out consumer research and raise consumer issues in various public policy and media forums. The funding allowed an environmental organization to incorporate sustainable consumption into their organizational focus; helped a coalition of consumer groups develop common, joint-action policy projects; improved Internet access to, and increased circulation for, an independent consumer magazine; and allowed a consumer organization to revise and improve its business and marketing plan.

Office of Consumer Affairs – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $5.6 million $6.0 million $5.9 million
Human Resources 23 FTEs - 23 FTEs

2.1.5 Program Activity: Competition Bureau – Marketplace

The Competition Bureau is responsible for ensuring development of, and compliance with, marketplace frameworks with respect to competition.

Sub-Program Activities: Competition Bureau – Marketplace is delivered via three sub-program activities:

  • Enforcement
  • Framework Policy and Advocacy
  • Services
Expected Result

Compliance with legislation under the Competition Bureau's jurisdiction

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Extent to which target groups comply with legislation under the Bureau's jurisdiction The Fair Business Practices Branch identified more than 150 potentially problematic websites that promote bogus and misleading diabetes schemes. Notices were sent to the most problematic sites, and of the Canadian firms contacted, 80 percent have complied by removing misleading claims.

Industry Canada committed to the following for 2006-07:

  • Contribute to policy development.
  • Be a competition advocate in the telecommunications and health sectors.
  • Continue to work on modernizing the Competition Act.
  • Combat fraudulent mass marketing, including telemarketing fraud and deceptive mass mail.
  • Promote fraud awareness among consumers and businesses.
  • Pursue enforcement action when businesses do not respond to the Bureau's concerns.
  • Fight domestic and international cartels.
  • Review mergers and acquisitions.

Results Achieved

Policy Development
  • In 2006-07, the deregulation of the telecommunications industry was one of the Competition Bureau's top priorities. The Bureau provided analysis and advice regarding some key government policy decisions and documents that were released during the fiscal year. These include:

  • For each of the above initiatives, the Bureau provided competition analysis and advice regarding policy issues, either through public consultations or within the Department. The Bureau's input is reflected in the government's final policy decisions.
  • To ease the transition for participants in the telecommunications industry from regulation to reliance on market forces and oversight under the Competition Act, the Bureau released a draft bulletin on its approach to the enforcement of the abuse of dominance provisions in the telecom sector. The bulletin was developed through a joint CRTC/Bureau working group and included comments received from industry stakeholders. In addition, the Bureau provided comments to the CRTC on the competition issues raised in its ongoing proceedings to review the regulatory framework for wholesale telecommunications services and the definition of essential facilities. The Bureau will continue to share its competition analysis and economic expertise with the CRTC throughout the remainder of this important public proceeding.
Competition Advocacy
  • As a result of the Bureau's advocacy in the health sector and with self-regulated professions, the Government of Alberta passed a new regulation that removed the requirement for dental hygienists to work under the supervision of a dentist. As a result, dental hygienists in Alberta will now be free to offer a number of services, including scaling and root planing, directly to clients. The new regulation allows dental hygienists and dentists to compete in the provision of dental hygiene services. The ability of dental hygienists to self-initiate, or provide services autonomously, without being restricted by their competitors, will likely increase access to dental hygiene services and decrease prices for Albertans. For more information consult the news article Competition Bureau supports Alberta decision to allow greater competition in dental hygiene services.
Fraud Prevention and Awareness
  • As Chair of the Fraud Prevention Forum, the Competition Bureau works closely with more than 75 public and private partners to raise awareness of the dangers of fraud, and to educate the public on how to "recognize it, report it and stop it." During Fraud Prevention Month, the Bureau provided consumers with information on many fraudulent activities they should be aware of, including bogus weight-loss schemes, cure-all products, products that claim amazing health effects, phoney employment opportunities and fake office supply scams.
Competition Enforcement
  • Promoting fair and accurate information in the marketplace is an ongoing priority of the Bureau. In pursuit of this priority, a key accomplishment of the Bureau in 2006-07 was to register a consent agreement stating that Canadian clothing manufacturer Grafton-Fraser Inc. had violated a provision of the Competition Act. Through an investigation, the Bureau concluded that Grafton-Fraser had significantly inflated the regular price of certain garments sold in its stores, resulting in an overstatement of consumer savings when these garments were on sale. For more information, consult the news article Grafton-Fraser pays $1.2 million to settle misleading advertising case with Competition Bureau.
  • The Bureau has transferred resources to its regional offices across Canada to fight domestic cartels closer to the scenes of the crimes. It is building its investigative skills, establishing strong local contacts and raising awareness. Over the past year alone, the regional offices conducted 50 seminars on how to prevent and detect bid-rigging.
  • Although there are no redeeming pro-competitive virtues associated with cartels, the situation is significantly more nuanced with respect to reviewing mergers. The Bureau always seeks to find the balance between guarding against anti-competitive mergers and imposing undue burdens on the positive transactions. The Bureau published several technical backgrounders and bulletins in 2006-07 to facilitate business decisions and ensure transparency and predictability with the business community.

Competition Bureau – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $48.1 million $49.3 million $42.1 million
Human Resources 406 FTEs - 399 FTEs

2.1.6 Program Activity: Canadian Intellectual Property Office – Marketplace

The Canadian Intellectual Property Office (CIPO), a special operating agency, is responsible for administering Canada's system of intellectual property (IP) rights, namely patents, trademarks, copyrights, industrial designs and integrated circuit topographies. In addition to granting and registering IP rights, CIPO disseminates information related to these rights to business, educational institutions and Canadians in general. It operates under a revolving fund regime and aims to accelerate Canada's economic development.

Expected Result

Delivery of quality and timely intellectual property products and services, and increase awareness and use of intellectual property

Industry Canada measures progress toward this expected result, in part, through the following indicators:


Indicators Progress in 2006-07
Turnaround times for:  
  • Patents
  • 77 percent of applications with a request for examination processed in less than 27 months
  • Trademarks
  • Processed within 5.5 months of filing date
  • Industrial design
  • Processed within 11.1 months of receipt of application
  • Copyrights
  • Processed within 2.3 days of receipt of application
Percentage of increased awareness and use of intellectual property (small and medium-sized enterprises segment) 36 percent are familiar with intellectual property (baseline)

Industry Canada committed to the following for 2006-07:

  • Undertake further modernization of the intellectual property regime to encourage creativity and innovation and to promote affordable access to new knowledge for Canadians.

Results Achieved

Modernization of the Intellectual Property Regime
  • In 2006-07, CIPO put forward proposed amendments to five intellectual property regulations to ensure that Canada's intellectual property regime is more user-friendly, cost-effective and responsive to the needs of Canadian universities and businesses. The main purpose of the regulatory changes was to clarify the patent regime for small entities (i.e., entities employing 50 or fewer employees, or a university) while providing a relief mechanism for regular-sized entities that mistakenly pay fees at the small entity level. The amendments also improved the intellectual property regime by simplifying procedures and reducing processing times and costs, in keeping with the legislative principles of Smart Regulation and the Paperwork Burden Reduction Initiative. These amendments come into force in 2007-08.

Additional Achievements

Service Improvement

In 2006-07, CIPO continued to focus on three main service improvement areas identified in CIPO's 2005 National Client Survey: communications, accessibility and turnaround times. Achievements in these three areas are detailed below:

  • CIPO expanded corporate vehicles for communicating with clients and stakeholders, including adding a new client service page to its website and providing regular electronic news updates to keep clients informed of new initiative and service enhancements. The news updates provide valuable information to clients, as demonstrated by a significant increase in the number of subscribers to CIPO's newsletter.
  • To improve accessibility, CIPO implemented a toll-free number to improve services to clients across Canada. CIPO also improved access to its services by expanding the information holdings and functionality of its website with the goal of making more services available online 24/7.
  • In the patents and industrial design areas, continued progress was made in reducing turnaround times and inventory levels. Recruitment and training are ongoing strategies to attain shorter turnaround times in all intellectual property areas. Efforts to deliver quality and timely intellectual property rights serve a key role in enhancing Canada's climate of innovation.

Canadian Intellectual Property Office – Marketplace 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources ($7.7 million)* $88.7 million ($28.5 million)*
Human Resources 951 FTEs - 897 FTEs

* For more detail on CIPO's financial information, see Section 3, Table 3: Voted and Statutory Items and Table 7: Canadian Intellectual Property Office Revolving Fund.

2.2 Strategic Outcome: An Innovative Economy

The strategic outcome of an innovative economy refers to the development of an economy that ensures global competitiveness by supporting the creation of knowledge and the effective translation of this knowledge into new products and processes. This is vital, since an enhanced quality of life, better-paying jobs and the capacity to support social goals require an innovative and competitive economy. In today's knowledge-based economy, innovation is a key driving force for the creation of wealth and economic growth for Canadians. Industry Canada conducts a variety of activities to contribute to this strategic outcome, such as promoting the development, application and diffusion of new technologies, and assisting in harnessing the social and economic benefits of research and development.

More specifically, in fiscal year 2006-07 Industry Canada was responsible for bringing forward several policy initiatives that promote research and development in key innovation areas, including commercialization, health sciences, the environment and many more. Industry Canada championed for and successfully ensured that money was included in Budget 2007 for these initiatives. The Government of Canada also developed a science and technology (S&T) strategy – Mobilizing Science and Technology to Canada's Advantage – which highlights the importance of S&T to Canada and provides a framework to guide federal government decision making in support of S&T over the coming years. The S&T Strategy aims to strengthen Canada's position as an innovation leader by creating a business environment that is conducive to innovation, while sustaining Canada's research excellence. Furthermore, Industry Canada has been actively engaged in the development of Canada's hydrogen and fuel cell industry and completed a comprehensive national hydrogen and fuel cell framework, which offers a long-term vision for sector commercialization and outlines clear sector opportunities and priorities.

Additional accomplishments in 2006-07 include renewed support for the operation and development of CANARIE's advanced research network – Canada's not-for-profit advanced Internet development organization – in order to promote further progress in Canada's intelligent systems and advanced robotic industries. In 2006-07, Industry Canada also concluded a major demonstration of an experimental tactical communications network that highlights new capabilities that are possible with the use of advanced wireless and network technologies. Such demonstration projects allow other departments, such as the Department of National Defence, to make better-informed decisions regarding communications-related procurements.

The following section provides further detail on the ways in which Industry Canada is contributing to an innovative economy. Additional information can be found online at Section 5.2.2.

This strategic outcome is delivered through five program activities:

  • Policy Sector – S&T and Innovation
  • Industry Sector – S&T and Innovation
  • Spectrum, Information Technologies and Telecommunications Sector – S&T and Innovation
  • Communications Research Centre Canada – S&T and Innovation
  • Technology Partnerships Canada – S&T and Innovation

Analysis by Program Activity

2.2.1 Program Activity: Policy Sector – Science and Technology and Innovation

Innovation, science and technology (S&T) are key drivers of economic growth that support the long-term productivity and competitiveness of the Canadian economy. S&T also underpins the government's ability to address public policy issues that matter to Canadians, such as health care, the environment and sustainable energy.

Sub-Program Activities: Policy Sector – S&T and Innovation is delivered via four sub-program activities and six sub-sub-program activities:

  • Advisory Council on Science and Technology Secretariat
  • Strategic Policy Branch
  • Micro-Economic Policy Analysis Branch
  • Innovation Policy Branch
    • Canadian Institute for Advanced Research
    • Pierre Elliott Trudeau Foundation
    • Canada Foundation for Innovation
    • Canada-Israel Industrial Research and Development Foundation (this program has been moved to Foreign Affairs and International Trade Canada)
    • Council of Canadian Academies
    • Pilot Fund for the Commercialization of University and Federal Lab Research

Expected Result

Development and coordination of policy frameworks in support of an innovative economy

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Policy proposals that are brought forward to reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector The Policy Sector brought forward several proposals to advance an innovative economy and championed their inclusion in the budget. Budget 2007 invested approximately $1.9 billion in S&T, including the following:
  • $195 million over the next two years to support Centres of Excellence in Commercialization and Research that will position Canada as a global leader in priority research areas
  • $85 million per year through the federal granting councils for research targeted on key priorities: health sciences, natural resources and energy, the environment, information and communications technologies and management, business, and finance
  • $510 million to the Canada Foundation for Innovation to enable it to undertake another major competition before 2010 (it is anticipated that $70 million will be provided to institutions in 2008-09)
  • $100 million in 2006-07 to Genome Canada to sustain funding for the regional genome centres and related technology platforms, extend promising research projects and support Canada's participation in strategic international research collaborations

Industry Canada committed to the following for 2006-07:

  • Develop an S&T Strategy that will encompass a broad range of government support for research.
  • Continue to conduct research and analysis on the issues of interest to Canadian small businesses.
  • Undertake a review of the accountability and value for money of the granting councils' activities.

Results Achieved

S&T Strategy
  • In 2006-07, the Government of Canada developed its S&T Strategy – Mobilizing Science and Technology to Canada's Advantage – which highlights the importance of S&T to Canada and provides a framework to guide federal government decision making in support of S&T over the coming years. The S&T Strategy will aim to strengthen Canada's position as an innovation leader by creating a business environment that is conducive to innovation while sustaining Canada's research excellence.
  • To achieve this goal, the Strategy sets out three key advantages distinct to S&T: an Entrepreneurial Advantage to translate knowledge into commercial applications that generate wealth for Canadians; a Knowledge Advantage to position Canada as a leader in generating new ideas and innovations; and a People Advantage to make Canada a magnet for highly skilled people and create an economy with the best educated, most skilled and most flexible workforce in the world. The government signalled its commitment to the S&T Strategy by announcing $1.9 billion in new resources in Budget 2007 to support S&T initiatives.
Research and Analysis
  • Research undertaken during 2006-07 included case studies of research and development (R&D) and commercialization that highlighted the challenges of collaborative innovation efforts such as attracting key personnel and financing and anticipating customer needs. Research and stakeholder analysis were also conducted on the supply of risk capital in Canada. This identified a number of challenges, including tax barriers that impede access to sources of foreign capital by Canadian firms. This work supported the government's commitment to update the Canada-U.S. Tax Treaty to remove barriers. The research has also provided an indication of the magnitude of Canadian informal investment, and explored reasons for Canada's relatively low returns on risk capital investments.
Review of Granting Councils
  • In September 2006, pursuant to a commitment in the May 2006 Budget, Industry Canada commissioned a review of Canada's research granting councils. Its focus was on two of the councils – the Social Sciences and Humanities Research Council (SSHRC) and the Natural Sciences and Engineering Research Council (NSERC). The Canadian Institutes of Health Research (CIHR) was not included, however, as CIHR recently went through a statutory five-year review by an international panel of experts. A key finding of the evaluation was that the research funded by SSHRC and NSERC represents an essential and increasingly important contribution to almost every dimension of Canada's national life, and notably to the growth of an internationally competitive economy and a strong, diverse society.

Policy Sector – S&T and Innovation 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $46.2 million $11.5 million $10.6 million
Human Resources 76 FTEs - 83 FTEs

2.2.2 Program Activity: Industry Sector – Science and Technology and Innovation

Canada's prosperity depends increasingly on its ability to put knowledge to work. As the centre of analysis and knowledge on industrial sectors, the Industry Sector applies its expertise in the Canadian business landscape to enhance government decision making and industry development activities, and to help create conditions in which Canada exploits its knowledge. Several activities were undertaken in 2006-07 to create conditions leading to increased R&D and innovation, thereby enhancing Canada's knowledge advantage.

Sub-Program Activities: Industry Sector – Science and Technology and Innovation is delivered via eight sub-program activities and two sub-sub-program activities:

  • Manufacturing Industries Branch
  • Energy and Environmental Industries Branch
    • Hydrogen Economy
  • Service Industries Branch
  • Aerospace, Defence and Marine Branch
  • Life Sciences Branch
    • Genome Canada
  • Industrial Analysis and Sector Services Branch
  • Automotive and Industrial Materials Branch
  • Canadian Biotechnology Secretariat
Expected Result

A stronger knowledge-based economy in all industrial sectors

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
R&D expenditures by industry in selected manufacturing and service sectors All industries' Business Expenditure on Research and Development (BERD): $14.85 billion for 2006, up 1.3 percent over 2005

Industry Canada committed to the following for 2006-07:

  • Enhance the research and analytic capabilities of the Department in order to identify challenges and opportunities that affect the manufacturing sector.
  • Review the Industrial and Regional Benefits Policy and other initiatives to improve federal government procurement decisions.
  • Deliver on the Government of Canada's sustainable development commitments with the development of Sustainable Development Strategy IV.
  • Complete development of Technology Roadmaps.
  • Examine the most appropriate role for Genome Canada and other agencies in providing support for genomics research.
  • Ensure that the renewable energy sector has continued opportunities for development.
  • Ensure that the federal government's commercialization strategy reflects the interests of Canadian Industry.

Results Achieved

Manufacturing
  • The Industry Sector provided leadership on a broad range of issues that affect the manufacturing sector, and worked with stakeholders to address policy issues raised by the Canadian Manufacturing Coalition, Canadian Manufacturers & Exporters and other industry experts. The Sector also developed indicators of manufacturing performance as well as information on sustainable manufacturing practices, and led a manufacturing network that brought together organizations from across the federal government to strengthen the Government of Canada's capacity to analyze, review and improve public policy on issues that affect Canada's manufacturing sector.
  • In 2006-07, Industry Sector promoted the adoption of lean and sustainable manufacturing principles and practices through its Internet-based Canadian Resource Guide to High Performance Manufacturing and through its outreach activities. The Sector partnered with Environment Canada and the National Research Council to pilot test a "lean and clean" workshop, aimed at training lean practitioners and advocates. The Industry Sector also initiated the development of a review of lean performance metrics to benchmark operational excellence and best practices.
  • To increase industry awareness of sustainable manufacturing practices, the Industry Sector published a workbook, Going for the Green: A Manufacturer's Guide to Lean and Green, which was developed by a Canadian expert on sustainable practices in cooperation with Environment Canada.
Government Procurement
  • The Sector continued to assess, on an ongoing basis, the Industrial and Regional Benefits (IRBs) Policy, to ensure that it adapts to changes in the marketplace. For additional information, visit the Industrial and Regional Benefits Policy website.
  • The Industry Sector enhanced the economic benefits to Canada of federal procurement decisions in areas of strategic industrial interest, such as the aerospace, defence and marine industries. IRBs enable innovations to come to market and enhance the competitiveness of Canadian firms by providing opportunities in contractor supply chains. Unprecedented levels of IRBs will apply on the "Canada First" defence procurements that the government announced in areas such as the Medium Support Vehicle System Project (logistics trucks), medium- to heavy-lift helicopters, joint-support ships, and tactical and strategic air lift.
  • The Industry Sector also worked with Public Works and Government Services Canada (PWGSC) through 2006-07 on several procurement-related initiatives, including co-sponsoring a workshop on small and medium-sized enterprises (SMEs), innovation and public procurement. The workshop brought together departmental representatives involved in promoting innovation and PWGSC staff, and focused on the procurement process and, specifically, SMEs in that process. Next steps include engaging several industry sectors in further workshops to better understand their concerns over, and perspective on, procurement and innovation.
Sustainable Development Strategy IV
  • Industry Canada, along with 30 federal departments and agencies, tabled its fourth Sustainable Development Strategy (SDS IV) in Parliament on December 13, 2006. A number of activities contributed to the development of SDS IV, including an internal issues scan, an external issues scan, a mid-term evaluation of SDS III (completed) and public consultations.
  • SDS IV outlines Industry Canada's sustainable development priorities for 2006-2009 in order to achieve the following strategic outcomes: sustainability-driven technologies and commercialization; sustainability tools, practices, research and awareness; and sustainability practices and operations within Industry Canada. Industry Canada's SDS IV supports a competitive Canadian economy by positioning the Department as a leader in supporting sustainable development technologies and practices for businesses and consumers. To access Industry Canada's SDS IV, visit the Sustainable Development website.
Technology Roadmaps
  • Industry Sector has achieved an internationally recognized level of expertise in the development of Technology Roadmaps (TRMs), with 26 completed to date. TRMs are strategic tools through which sectors can determine their technology and skills priorities 5 to 10 years into the future. They also help identify collaborative R&D arrangements that are critical to the long-term competitiveness of Canadian industries.
  • In partnership with private industry, the Sector developed or was involved in the development of five TRMs in 2006-07: aluminum transformation, the biopharmaceutical industry, the welding and joining industry, the language industry, and carbon dioxide capture and storage. For more information on TRMs, visit the Technology Roadmaps website.
  • Through the interdepartmental Technology Roadmap Working Group, the Sector led strategic planning activities for sectoral competitiveness. The Sector also signed a Memorandum of Understanding with Human Resources and Social Development Canada (HRSDC), with a key deliverable being TRMs done with HRSDC's sector councils. This linkage of technology and skills improves both the productivity and competitiveness of Canadian companies.
Genome Canada
  • A genomics review process was launched to examine the most appropriate role for Genome Canada and other agencies in providing support for genomics research. Budget 2005 committed to strengthening the environment for research in Canada by providing Genome Canada with an additional $165 million for research in genomics. With this investment, Genome Canada launched a third competition, resulting in funding for 33 innovative research projects and sophisticated S&T platforms across Canada in key areas such as agriculture, environment, fisheries, forestry and health.
Renewable Energy
  • The Industry Sector increased the exposure of Canadian capabilities in renewable energy sectors to domestic and international stakeholders by completing the first phase of a wind power technology transfer study. The goal was to identify firms and support the development of wind energy supply chains within Canada. The Sector also supported an international networking session on investment attraction at the Canadian Wind Energy Association's annual conference. The Industry Sector is actively engaged in the development of the hydrogen and fuel cell industry in Canada and completed a comprehensive national hydrogen and fuel cell framework, which offers a long-term vision for sector commercialization and outlines clear sector opportunities and priorities.
Commercialization
  • Ensuring that Canada turns knowledge into commercial success is an important goal that the Sector strives to achieve by providing advice and bringing more new technologies and products to the marketplace to benefit all Canadians. The Sector has helped coordinate and oversee federal government initiatives domestically and internationally in the hydrogen and fuel cell sector with an overall objective of achieving full-scale commercialization.

Additional Achievements

Biotechnology
  • The Industry Sector has focused on Canadian challenges and opportunities for biotechnology companies in the health sector and in the development and use of biotechnology (bio-products and processes) in new and traditional industries. The Sector has also made efforts to establish ongoing capacities within the Industry Portfolio and with other federal programs to better coordinate existing commercialization programs.
  • Through efforts within Industry Canada, and work with the Organisation for Economic Co-operation and Development, the Sector has helped to better benchmark Canada's capacity to develop and use innovative biotechnology-derived human health products, as well as contribute to the identification and development of international best practices and mechanisms to deliver the health and economic benefits of these products. With federal, provincial and industry partners, the Sector has been able to identify the conditions and opportunities for encouraging greater uptake of biotechnology in other sectors, such as agriculture, forest, chemical and energy.
Nanotechnology
  • The Industry Sector helped facilitate the promotion and adoption of nanotechnology through targeted activities, the development of an inventory of companies that are actively engaged in the nanotechnology area, and the development of an inventory of products within Canada that are manufactured using nanotechnology. This work is designed to identify the levels of activity currently undertaken in Canada and aid efforts to support the commercialization of particular research. This has been accomplished through partnerships with provincial and federal government departments and with regional groups such as NanoQubec and the National Institute of Nanotechnology.

Industry Sector – S&T and Innovation 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $19.4 million $5.0 million $4.9 million
Human Resources 100 FTEs - 129 FTEs

2.2.3 Program Activity: Spectrum, Information Technologies and Telecommunications – Science and Technology and Innovation

Spectrum, Information Technologies and Telecommunications (SITT) Sector – Science and Technology (S&T) and Innovation supports advanced and applied research within the Canadian Information and Communications Technology Sector for the development of innovative technologies.

Sub-Program Activities: SITT Sector – S&T and Innovation is delivered via one sub-program activity and two sub-sub-program activities:

  • Information and Communications Technologies Branch
    • CANARIE
    • Precarn
Expected Result

Improved research capacity and commercialization of information and communication technologies (ICTs)

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Accessibility to advanced research across Canada
  • CANARIE's advanced research network is a public good, providing essential network infrastructure that makes it possible for universities and labs across Canada to carry out research in all fields of science that benefits Canadians in areas such as physics, life sciences and the environment.
  • Precarn supports market-driven ICT project innovations in the areas of intelligent systems technologies and robotics.

Industry Canada committed to the following for 2006-07:

Through the provision of funding:

  • Enable the Canadian research community to pursue advanced research across Canada and around the world.
  • Promote further progress in Canada's intelligent systems and advanced robotics industries.

Results Achieved

Advanced Research
  • As announced in Budget 2007, Industry Canada was successful in renewing support for the operation and development of CANARIE's advanced research network. Industry Canada is responsible for administering the $120-million, five-year conditional grant to the not-for-profit corporation, CANARIE Inc. Through this essential network infrastructure, researchers in Canadian universities, colleges, research institutes and government laboratories have the capacity to conduct collaborative research on a global basis in all fields of science that benefits Canadians in areas such as physics, life sciences and the environment.
Intelligent Systems and Advanced Robotics
  • Precarn Inc. is a national, not-for-profit, industry-led consortium that supports pre-competitive R&D projects in the fields of intelligent systems and advanced robotics. To promote further progress in Canada's intelligent systems and advanced robotic industries, Precarn received a five-year, $20-million conditional grant for Phase 4 of its program in 2005-06. In 2006-07, Precarn funded 21 projects across the country (total funding of $4.4 million). Industry Canada is responsible for administering the funding agreement with Precarn Inc.

SITT Sector – S&T and Innovation 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $2.9 million $25.4 million $24.1 million
Human Resources 4 FTEs - 4 FTEs

2.2.4 Program Activity: Communications Research Centre Canada – Science and Technology and Innovation

Communications Research Centre Canada (CRC) is the federal government's centre of excellence for R&D in telecommunications. As part of its mandate, CRC is an independent source of technical advice for public policy decisions and regulations (e.g., spectrum management and telecom policy); a contributor to telecommunications standards; a technology supporter of public health, safety and environmental and defence needs; and an enabler of economic and social development. CRC conducts research on advanced telecommunications and information technologies to ensure an independent source of advice for public policy, and to support the development of new products and services for the ICT Sector.

Sub-Program Activities: CRC is delivered via three sub-program activities:

  • CRC – Wireless and Photonics Research
  • CRC – Defence and R&D
  • CRC – Research Support
Expected Results

Develop and maintain a high level of expertise and knowledge in technologies of importance to the Canadian telecommunications sector

Excellence in government and industrial client support through R&D and advice

Industry Canada measures progress toward these expected results, in part, through the following indicators:


Indicators Progress in 2006-07
Number of scientific publications (published and presented) Journal papers: 93
Conference presentations: 155
Technical memoranda: 18
Number of patents Active patents in CRC portfolio: 237
  • New patent applications in fiscal year 2006-07: 18
  • New patents granted in fiscal year 2006-07: 8
Number of research partnerships Total active collaborative agreements in place with industry: 33 (10 new in fiscal year 2006-07)

Total active collaborative agreements in place with university or government: 45 (7 new in fiscal year 2006-07)
Contracted R&D Contracting-in agreements: 58 (48 new in fiscal year 2006-07)
  • Revenue: $1.15 million
Number of intellectual property licences Intellectual property licences: 401 (42 new)
  • Revenue: $1.16 million

Industry Canada committed to the following in 2006-07:

  • Perform R&D on communications technologies of significance to Canada, including radio, satellite, broadcasting and fibre optics.
  • Undertake R&D and program delivery on a cost-recovery basis for key partners, such as the Department of National Defence and the Canadian Space Agency.
  • Work with key partners to develop standards to facilitate the efficient delivery of telecommunications and broadcasting.
  • Provide strategic advice as well as direct assistance for the development of policy, regulations and standards in the telecommunications sector.
  • Provide independent, technical advice relating to spectrum management, communications policy and regulatory decision-making applications.

Results Achieved

Research and Development
  • During 2006-07, CRC continued to conduct R&D on communications technologies of significant importance to Canada, including radio, satellite, broadcasting and fibre optics. This resulted in the publication of 248 external scientific and technical publications, 18 new patent applications, 42 new licences for companies to use CRC technology, and 48 new contracting-in arrangements.
  • In support of the Department of National Defence, CRC carried out research projects in 2006-07 valued at $5.3 million on a cost-recovery basis. During the past year, CRC concluded a major demonstration of an experimental tactical communications network that highlighted new capabilities that are possible with the use of advanced wireless and network technologies. Such demonstration projects allow National Defence to make better-informed decisions regarding communications-related procurements to support ongoing and future operational requirements.
Telecommunications and Broadcasting
  • In order to help extend access of broadband data networks to all Canadians, especially in underserved rural areas, CRC continued its work in 2006-07 with the Institute of Electrical and Electronics Engineers to develop a cognitive radio standard that would allow wireless broadband services to be delivered over unused TV channels in sparsely populated areas. Recent progress in this area has resulted in convincing the Federal Communications Commission in the United States that this technology can be implemented without negatively affecting current television band incumbents. This is an important step toward approval of an international standard in 2008, which in turn will allow volume (and therefore lower-cost) production of broadband access equipment for the user community.
  • CRC also collaborated with the Canadian Space Agency in 2006-07 to expand broadband Internet in Nunavut and the Northwest Territories. High-frequency ground terminals linked to the Anik F2 satellite were installed in Pond Inlet and Arviat as part of CRC's Satellite Multimedia Applications Research and Trials (SMART) Program. This program demonstrates the feasibility and benefits of providing broadband satellite communications services such as Internet access and video conferencing to Northern Canada so that local government agencies and the private sector can make decisions on future deployments.
  • Following eight years of research and development, in November 2006 CRC launched a new development tool kit for Software Defined Radio (SDR), a product that can accommodate any communications protocol and frequency band by simply downloading the appropriate software on the selected radio hardware. This new development tool kit will speed the adoption of SDR in civilian markets, including the space, avionics, automobile, public safety and consumer electronics markets. SDR offers many significant benefits; for example, it would enable paramedics, police, firefighters and other emergency personnel to quickly reconfigure their radios to a common communications protocol in order to interconnect and communicate in a crisis situation.

Communications Research Centre Canada – S&T and Innovation 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $44.1 million $54.7 million $50.6 million
Human Resources 412 FTEs - 385 FTEs

2.2.5 Program Activity: Technology Partnerships Canada – Science and Technology and Innovation

Technology Partnerships Canada (TPC) provides funding support for strategic research, development and demonstration projects that produce economic, social and environmental benefits to Canadians. On December 31, 2006, TPC's terms and conditions ended, and the program closed its doors to applications. Although Industry Canada has stopped entering into TPC contribution agreements, the Department will continue to manage TPC's $3.5-billion portfolio for the next 27 years.

Sub-Program Activities: Technology Partnerships Canada – Science and Technology and Innovation program activity is delivered via two sub-program activities:

  • TPC – Research and Development Support Program
  • TPC – Hydrogen Early Adopters (h2EA) Program
Expected Result

Commercialization encouraged through strategic partnering in innovative research and development

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Total number of projects (which represents the number of strategic partnerships)
  • During 2006-07, TPC contracted a total of 20 projects valued at $497.2 million.
  • Nine projects valued at $416.4 million were contracted in the area of aerospace and defence, six projects valued at $34.9 million were contracted in the area of enabling technologies, and five projects valued at $45.9 million were contracted in environmental technologies.

Industry Canada committed to the following for 2006-07:

  • The Program for Strategic Industrial Projects (PSIP) will contribute to the achievement of Canada's objectives of increasing economic growth, creating jobs and wealth and supporting sustainable development.

Results Achieved

Program for Strategic Industrial Projects
  • TPC investments helped partner companies leverage new and increased investment on a ratio of close to $4 per $1 invested by TPC. TPC's repayable contributions assisted Canadians in developing new technologies and innovation, as well as increasing our knowledge base. TPC's total cumulative repayments as of March 31, 2007, amounted to more than $224.2 million.
  • The TPC portfolio will be managed by the Industrial Technologies Office (ITO). ITO will administer the TPC legacy portfolio, the Hydrogen Early Adopters (h2EA) Program and the Program for Strategic Industrial Projects (PSIP), along with a new program, the Strategic Aerospace and Defence Initiative (SADI), which was launched on April 2, 2007. PSIP continues to manage existing projects and is in negotiation with other potential investment projects in the automotive sector.
  • The goal of the h2EA program was to foster the development of hydrogen and hydrogen-compatible technologies, such as fuel cells and those used to produce, store and distribute hydrogen. The h2EA program did not contract any new projects during 2006-07 and is no longer accepting new applications for funding. The program will sunset on March 31, 2008.

Technology Partnerships Canada – S&T and Innovation 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $510 million $459.8 million $409.9 million
Human Resources 142 FTEs - 100 FTEs

2.3 Strategic Outcome: Competitive Industry and Sustainable Communities

The strategic outcome of competitive industry and sustainable communities refers to developing Canadian industry that can compete globally for resources and customers, and provide Canadian communities with the skills and resources that will ensure their success. The ability of Canadian industries to compete globally is especially important given that Canada is a trading nation. Furthermore, because many Canadians live in rural and northern communities, it is essential that these people have access to the same opportunities as people living in larger cities. Industry Canada conducts a variety of activities to achieve this strategic outcome, such as articulating the interests of Canadian businesses in international trade negotiations, developing policies that will reduce the administrative burden on businesses, and delivering programs to specific community groups to develop the skills that are required to compete in today's marketplace.

More specifically, in 2006-07, Industry Canada worked with other departments to influence Canada's trade agenda. Industry Canada helped ensure that the interests of Canadian businesses were represented in multilateral trade forums such as the ongoing Doha Round of multilateral trade negotiations at the World Trade Organization, as well as regional trade talks with the European Free Trade Association and with South Korea.

Industry Canada also continued to deliver a number of programs and services in 2006-07 with the goal of helping small and medium-sized businesses manage their regulatory and paperwork burden. Initiatives such as Canada Business, a multi-channel government information service for businesses and start-up entrepreneurs, and BizPaL, an online service that simplifies the business permit and licence process, both continued to expand their reach and services in 2006-07. The response from clients of these programs has been extremely positive.

Industry Canada recognizes that sustainable communities are better positioned to grow. Industry Canada continued to support community development in 2006-07 by delivering significant funding through FedNor, thus supporting Northern Ontario's participation in the knowledge-based economy.

The following section provides further detail on the ways in which Industry Canada is contributing to competitive industry and sustainable communities through the work of its program activities. Additional information on the programs and initiatives mentioned in the following can be found online at Section 5.2.3.

This strategic outcome is delivered through four program activities:

  • Policy Sector – Economic Development
  • Operations Sector – Economic Development
  • Industry Sector – Economic Development
  • Spectrum, Information Technologies and Telecommunications Sector – Economic Development

Analysis by Program Activity

2.3.1 Program Activity: Policy Sector – Economic Development

Policy Sector – Economic Development is responsible for the development of industry and international business policy.

Sub-Program Activities: Policy Sector – Economic Development is delivered via four sub-program activities and one sub-sub-program activity:

  • International and Intergovernmental Affairs
  • Strategic Policy Branch
    • Sustainable Development Strategy
  • Micro-Economic Policy Analysis Branch
  • Small Business Policy Branch
Expected Result

Development and coordination of policy frameworks in support of competitive industry and sustainable communities

Industry Canada measures progress toward this expected result, in part, through the following indicator:


Indicator Progress in 2006-07
Ongoing policy and program oversight and development is advanced with a view to enhancing industry competitiveness Provided ongoing policy and program oversight and development, as demonstrated by results for individual programs

Industry Canada committed to the following for 2006-07:

  • Develop and coordinate policy frameworks.
  • Promote sustainable development both within and outside the Department.
  • Coordinate and encourage other federal departments to make progress on trade initiatives.
  • Ensure that investment proposals by non-Canadians demonstrate a net benefit to Canada.
  • Conduct research and analysis in order to address the financing needs of small and medium-sized enterprises.
  • Lead the prosperity agenda of the Security and Prosperity Partnership of North America.

Results Achieved

Policy Development and Coordination
  • The Policy Sector has worked to advance programs that support the Department's legislated mandate. Initiatives stemming from economic and policy research and proposals submitted by the administrators of existing programs must be presented in a clear, succinct way. Proposals have demonstrated not only that they fill gaps, such as those created by a changing marketplace or international pressures, but also that they have addressed issues in the most efficient and effective way. The Policy Sector provided advice, guidance and recommendations to partners developing these proposals. Some proposals were reviewed, assessed and considered in anticipation of putting them forward for possible inclusion in government budgets and fiscal updates.
Sustainable Development
  • Industry Canada is a proponent of sustainable development and has made efforts to increase awareness of corporate social responsibility (CSR) and sustainability practices among Canadian industry, institutions and communities. The Department worked to broaden CSR information and awareness by supporting and participating in the National Roundtables on Corporate Social Responsibility and the Canadian Extractive Industries Operating in Developing Countries hosted by Foreign Affairs and International Trade Canada; the National Round Table on the Environment and the Economy on Capital Markets and Sustainability; and the National CSR Conference hosted by the Conference Board of Canada. All these activities served to improve the knowledge capacity as well as the promotion of innovative sustainability tools and practices within Canadian industries. Using these practices can help firms become more responsive to the social, environmental and economic needs of the communities in which they operate. These practices can also help firms reduce business risks and enhance their brand value, reputation and bottom-line performance. In addition, the Policy Sector has worked to integrate sustainability principles into the decision making of the Department by providing sustainable development training and awareness-raising seminars, and renewing the strategic environmental assessment guidance for departmental policies, plans and programs.
Trade Policy
  • The Policy Sector continued to develop and articulate departmental positions on a wide range of trade policy issues that affect Industry Canada. In 2006-07, the Policy Sector directly supported Canada's international trade agenda in a number of ways:

    • by providing advice on industrial issues to Foreign Affairs and International Trade Canada and other departments, including Finance Canada, Health Canada, Environment Canada and Natural Resources Canada;
    • through its participation in trade talks under the mandate of the Doha Round of multilateral trade negotiations at the World Trade Organization; and
    • by negotiating trade and investment issues that affect Industry Canada and Canadian industrial sectors on a regional basis with partners such as the European Free Trade Association, and bilaterally in the context of free-trade negotiations with South Korea and investment negotiations with Peru.
  • Furthermore, the Policy Sector provided advice to Industry Canada officials on the consistency of funding for projects under Technology Partnerships Canada and the Structured Financing Facility with international trade rules such as the World Trade Organization's Agreement on Subsidies and Countervailing Measures.
Investment Review
  • The Investment Review Division (IRD) of Industry Canada continued to administer the Investment Canada Act in 2006-07 to ensure that investment proposals submitted by non-Canadians demonstrate a net benefit to Canada. A total of 39 applications were approved by the Minister of Industry subsequent to the review process undertaken by IRD. Also, 30 post-implementation reviews were concluded to ensure that investors' commitments were fulfilled.
Research and Analysis
  • Research undertaken by the Sector in 2006-07 included case studies of R&D and commercialization that highlighted the challenges of collaborative innovation efforts, such as attracting key personnel and financing, and anticipating customer needs. Research and stakeholder analysis were also conducted on the supply of risk capital in Canada. This identified a number of challenges, including tax barriers impeding access to sources of foreign capital by Canadian firms. This work supported the government's commitment to update the Canada-U.S. Tax Treaty to remove barriers. The research has also provided an indication of the magnitude of Canadian informal investment and explored reasons for Canada's relatively low returns on risk capital investments.
  • Industry Canada officials have worked closely with the Business Development Bank of Canada (BDC) to ensure that its activities remain consistent with its public policy mandate and the government's agenda, and directed the commissioning of an independent report entitled "Analysis of BDC Venture Capital Activities and Strategies," an assessment of BDC's venture capital strategy and activities and its role in the Canadian marketplace. The report's findings have been, and will continue to be, used to refine BDC's strategies with respect to its venture capital activities.
  • The program of research and analysis on the financing issues confronting small and medium-sized enterprises (SMEs) continued in 2006-07. Five research reports on various aspects of financing of SME exporters and a number of financing profiles were completed and disseminated to small business stakeholders. The research improved Industry Canada's understanding of the financing needs of SMEs by revealing that it is more difficult for early-stage SME exporters to obtain commercial loans than it is for established firms. This information is available through the Financing Data Initiative (FDI) website.
  • The activities of the Policy Sector are supported by the economic analysis provided by its Micro-Economic Policy Analysis Branch (MEPA). MEPA's research and analysis contributes to building the knowledge base required for sound micro-economic policies aimed at supporting a strong Canadian economy and a high standard of living for Canadians. During 2006-07, MEPA held several major workshops and conferences on various current and emerging economic issues such as productivity, the international mobility of highly skilled workers, and industrial competitiveness. In addition, it completed and commissioned numerous research papers on a variety of micro-economic issues. These workshops, conferences and research papers provide the foundation for the policy advice the Department provides for modernizing Canada's marketplace frameworks in support of a highly competitive economy. Furthermore, these activities assist in the dissemination of research findings and contribute to an informed public debate on key micro-economic policy issues, such as productivity, commercialization, investment and innovation. Published research papers and research volumes can be viewed on the Industry Canada website Strategis: Industry Canada Economic Research.
Prosperity Agenda
  • In 2006-07, the Government of Canada hosted a trilateral Security and Prosperity Partnership (SPP) ministerial meeting. With its launch in March 2005, the SPP has provided a framework to improve North American competitiveness and ensure that citizens benefit from high standards of health, safety and joint stewardship of the environment. The meeting, which took place on February 23, 2007, facilitated discussions among SPP stakeholders and built consensus toward new priorities and next steps on key SPP issues. The meeting established a forward agenda leading to the upcoming leaders' summit with the Prime Minister of Canada and the presidents of the United States and Mexico, to be hosted by Canada in August 2007.

Policy Sector – Economic Development 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $11.5 million $14.0 million $12.2 million
Human Resources 82 FTEs - 84 FTEs

2.3.2 Program Activity: Operations Sector – Economic Development

The Operations Sector – Economic Development is responsible for delivering programs, information and intelligence on investment and technology opportunities to the business community. The Sector provides a multi-channel, common entry point for business on behalf of the Government of Canada, and encourages client-centred service delivery and design.

Sub-Program Activities: The Operations Sector – Economic Development is delivered via nine sub-program activities and three sub-sub-program activities:

  • Canada Small Business Financing Program (CSBF)
  • FedNor
    • Community Futures Program
    • Northern Ontario Development Program
    • Eastern Ontario Development Program
  • Sectoral Strategies and Services Branch / Canada-Ontario Infrastructure Program (COIP)
  • Aboriginal Business Canada (ABC; transferred to Indian and Northern Affairs as of December 2006)
  • Regional Delivery
  • Section 41, Official Languages Act
  • Service to Business: Strategy and Innovation
  • Canada Business – National Secretariat
  • Student Connections
Expected Result

Improved access to capital and information for SMEs and communities targeted by Operations Sector programs

Industry Canada measures progress toward this expected result, in part, through the following indicators:


Indicators Progress in 2006-07
Number of loans – year-over-year – registered through the CSBF Program Loans Registered by Fiscal Year
2006-07: 9,621
2005-06: 10,840
2004-05: 11,143
Number of SMEs – year-over-year – created or strengthened through FedNor and ABC 3,652 SMEs created or strengthened by FedNor through the Community Futures Development Corporation investment fund, an increase of 381 from 2005-06

ABC transferred to Indian and Northern Affairs, effective December 1, 2006
Percentage of Ontario population that has benefited from investments made under COIP 83 percent
Percentage of official-language minority communities (OLMCs) that have benefited from investments made under the Section 41 program A 2004-05 report verified that investments are proportional to the demographic weight of OLMCs. A study to update these results is under way.
Increase in number of SMEs served through Canada Business service centres (service usage)
  • 237,915 clients were served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), an increase of 1.1 percent over 2005-06
  • 5.5 million Internet visits to Canada Business Network websites (not including British Columbia)

Industry Canada committed to the following for 2006-07:

  • Work with partners to help create an environment, in which communities can thrive, businesses can grow, and people can prosper in rural and Northern Ontario.
  • Canada Business to expand its content syndication pilot project.
  • Support the Government of Canada in realizing the objectives of its Paperwork Burden Reduction Initiative and Smart Regulations through BizPaL.
  • Provide e-business and Internet training to SMEs.
  • Continue to provide services tailored to the needs of businesswomen.
  • Fulfill Industry Canada's responsibilities under the Environmental Assessment Act.

Results Achieved

Business and Community Development
  • In 2006-07, FedNor committed $68 million to businesses and community organizations, which leveraged more than $72 million in additional funds from other sources. Combined, these funds supported business development and long-term economic growth in rural and Northern Ontario.
  • To ensure Northern Ontario's effective participation in the knowledge-based economy, FedNor committed almost $6.5 million in 2006-07 to ICT projects, including the development of applications such as distance education, telehealth, and e-business and web portals. These activities are helping rural and Northern Ontario residents overcome distance barriers to ensure competitive businesses and sustainable communities.
  • FedNor also committed more than $3.5 million through its Youth Internship Program to support 135 internships, providing recent graduates with valuable work experience that could lead to permanent employment in Northern Ontario. Of the interns employed through the program since 1998, 70 percent are still working in Northern Ontario, helping the region to retain and develop highly qualified people who contribute to competitive businesses and sustainable communities.
  • Through the Community Futures Program, FedNor also continued to support a network of 61 Community Futures Development Corporations (CFDCs) in Ontario, which provided support to SMEs through strategic community planning and implementation, repayable financing for local businesses, and a variety of business services for SMEs. During 2006-07, rural business communities were enhanced through a total investment of more than $56 million through CFDC lending activities, leveraging more than $101 million from other sources and helping create or maintain 3,652 jobs.
  • FedNor also delivered the Eastern Ontario Development Program, designed to promote socio-economic development in rural Eastern Ontario. In 2006-07, $10 million was committed through the region's 15 CFDCs in five priority areas: business and community development, skills development, access to capital, retention and attraction of youth, and technological enhancements. These investments helped build local capacity for development and create the conditions for increased business and employment opportunities.
Assisting Canadian Businesses
  • Industry Canada amended regulations for the Canada Small Business Financing Program, based on stakeholders' comments. The goal was to reduce the administrative burden on lenders and to bring the program in line with current lending practices. A research agenda has also been implemented to begin preparations for the 2009 statutory comprehensive review. A review of the Capital Leasing Pilot Project concluded that the vast majority of Canada small business capital leasing needs are being met in the marketplace without government assistance. Following the review, Industry Canada decided not to extend the pilot project or make capital leasing permanent.
  • Canada Business, a multi-channel government information service for businesses and start-up entrepreneurs in Canada, continued to offer business clients access to key information and services through their preferred channel. Canada Business implemented client-centric design and development processes to ensure continual improvements to all of its online information and applications, which is a key principal of the service delivery strategy. There were 5.5 million visits to the Canada Business website in 2006-07. Canada Business handled approximately 237,915 telephone, in-person and email contacts with Canadian entrepreneurs during 2006-07, an increase of 1.1 percent over the previous year.
  • Canada Business conducted its first national client satisfaction survey encompassing the 13 service centres across Canada. Results showed a high degree of support for the service: 83 percent of clients expressed satisfaction with the overall quality of service, 81 percent expressed satisfaction with service delivery and 91 percent of surveyed clients experienced no problems with all aspects of the service. The survey confirms that Canada Business supports business development and responds to the particular challenges and opportunities facing SMEs.
  • In 2006-07, Canada Business also added five new pilot content syndication partnerships and expanded the scope of content. This increased the reach and accessibility of Canada Business information and services to a wider range of businesses in a cost-effective manner by directly rendering relevant information to partners' websites.
  • A partnership among Canada Business, the Canada-Ontario Business Service Centre and the Network for Women Entrepreneurs was honoured with a Gold Award at the Public Sector Quality Fair in Toronto. The award recognized the highly effective and low-cost, client-centric delivery of information, through syndication, from Canada Business directly to the Network for Women Entrepreneurs' new website.
  • In 2006-07, BizPaL, an online service that simplifies the business permit and licence process for entrepreneurs, governments and third-party business service providers, continued to expand. It was made available in five provinces and 20 municipalities. The service continued to receive recognition and won several prestigious awards, including the Diamond Award of Excellence, Best of Show, from the Canadian Information Productivity Awards program, which recognizes excellence in information technology and innovative implementation.
Student Connections
  • Fiscal year 2006-07 marked the 10th anniversary of Student Connections, and the program celebrated a milestone with more than 200,000 clients trained. Over the past decade, more than 6,400 youth have gained valuable work experience by participating in Student Connections, and have learned first-hand about the challenges and opportunities of entrepreneurship faced by small and medium-sized businesses. In 2006-07 alone, Student Connections provided e-business and Internet training to more than 16,600 clients, exceeding its target by more than 10 percent.
Environmental Assessment
  • Industry Canada continued to fulfill its responsibilities under the Environmental Assessment Act by completing 158 project screenings and initiating four comprehensive studies of projects delivered by the Canada-Ontario Municipal Rural Infrastructure Fund, and the Canada-Ontario Infrastructure Program.
Services for Women Entrepreneurs
  • The Network for Women Entrepreneurs (NWE), delivered by Industry Canada through the Canada-Ontario Business Service Centre, provides women entrepreneurs in Ontario with access to business information and services. Through the continual enhancement of the information available through its website, NWE saw its web traffic increase from 7,646 visits and 6,256 unique visitors in 2005-06 to 53,757 visits and 48,113 unique visitors in 2006-07. In addition, by building on existing resources and working with local partners, NWE presented 10 learning events across the province and participated in 28 trade shows and networking events. Feedback from hosting organizations and participants has been extremely positive.

Additional Achievements

  • Regional offices provided logistical and briefing support in 2006-07 for over 95 events and announcements involving the Minister, the Secretary of State (Small Business and Tourism), other federal ministers, and departmental senior management. In 2006, the regional offices also provided on-the-ground support to a cross-country series of ministerial round tables with senior representatives from research, industry, labour and education examining the issues of commercialization, prosperity, and a science and technology strategy.

Operations Sector – Economic Development 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $349.4 million $353.1 million $352.8 million
Human Resources 465 FTEs - 328 FTEs

2.3.3 Program Activity: Industry Sector – Economic Development

In support of continuous economic growth and a high quality of life for Canadians in the future, the Industry Sector led several initiatives to help Canadian firms move up the value chain by becoming more competitive both domestically and globally. The following was undertaken by the Sector in 2006-07 to support the global reach and agility of Canadian firms in the marketplace.

Sub-Program Activities: The Industry Sector – Economic Development is delivered via seven sub-program activities and four sub-sub-program activities:

  • Manufacturing Industries Branch
    • Canadian Apparel and Textile Industries Program
  • Energy and Environmental Industries Branch
    • Border Air Quality Strategy
  • Service Industries Branch
    • Language Industry Initiative (LII)
  • Aerospace, Defence and Marine Branch
    • Structured Financing Facility (SFF)
  • Life Sciences Branch
  • Industrial Analysis and Sector Services Branch
  • Automotive and Industrial Materials Branch
Expected Result

More firms capable of competing in global markets

Industry Canada measures progress toward this expected result, in part, through the following indicators:


Indicators Progress in 2006-07
Dollar value of exports
  • $525.6 billion
  • 1.1-percent growth
Number of Canadian firms in the export market as a proportion of all firms in operation in Canada
  • 2.00 percent of Canadian firms exported a physical good in 2005, up from 1.96 percent in 2004
Dollar value of investments (domestic and foreign)
  • Canadian direct investment abroad:
    • $523.3 billion
    • 13.8-percent growth
  • Foreign direct investment:
    • $448.9 billion
    • 10.1-percent growth

Industry Canada committed to the following for 2006-07:

  • Build on several initiatives to deepen understanding of developments in global value chains and their economic implications for Canada and continue to ensure that policy initiatives reflect the realities of today's global supply chains.
  • Continue to assess trade policy initiatives to determine potential challenges and opportunities for Canadian firms and to strengthen the Department's ability to analyze industrial trade issues.
  • Advance the Smart Regulation Implementation Strategy and lead a program of policy research and evidence-based analysis of regulatory initiatives aimed at promoting regulatory efficiency.
  • Continue to strengthen the position of Canadian businesses with foreign markets.

Results Achieved

Global Value Chains
  • The Industry Sector expanded its expertise in global value chains (GVCs) through economic and policy research initiatives, such as the Policy Research Data Group feasibility project, logistics and supply chain management key performance indicators initiative, sectoral case studies in various industries (automotive and apparel), as well as analysis of appropriate metrics to assess Canada's involvement in GVCs.
  • The Sector also began identifying policy implications of GVCs through various analytical decks and building an outreach strategy to engage other government departments and stakeholders, as well as represent the Department of Industry at the Organisation for Economic Co-operation and Development committee and working group meetings.
Trade
  • In order to advance Canada's trade policy agenda, the Industry Sector contributed to Free Trade Agreement negotiations by providing expert advice and sectoral analysis in several areas (pharmaceuticals and medical devices sectors, wood products, shipbuilding, and automotive).
  • The Sector also helped stimulate trade and investment flows that benefit Canadian firms by participating in domestic and international visit programs and by disseminating marketing tools, information and intelligence. Key initiatives include several trade shows (such as BIO 2006, Interbuild, AMERICANA 2007, and Aerospace Maintenance Repair and Overhaul) and business development missions for Canadian environmental forest equipment, textiles and aerospace companies.
  • Industry Sector's role enabled Canadian companies to maintain and enhance market presence, access new markets, secure key contacts, identify sales leads and opportunities for strategic alliances, and seek investments. Some key conferences that were attended by Industry Canada representatives included AMERICANA 2007 – Canada's premier biennial international environmental conference – and BIO 2006, among others. Industry Canada's participation in these events and conferences provided an opportunity for the Department to exhibit Canadian organizations, establish contact with key representatives in important industries, and promote investment and business development in Canada. The Sector also worked with other departments to develop an automotive trade and investment strategy, and contributed economic analysis to the development of the Clean Air Regulatory Agenda.
Smart Regulation
  • Since 2004-05, the Industry Sector has contributed to the Smart Regulation Implementation Strategy, which aimed to strengthen Canada's regulatory performance and establish a culture of continuous improvement in regulatory management across all levels of government. The Industry Sector advanced the strategy by contributing research and analysis to increase the government's understanding of the sectoral impacts of regulation, in part through co-chairing the interdepartmental Theme Table on Innovation, Productivity and Business Environment.
  • The Sector also undertook a study to identify key regulatory differences between Canada and the United States in priority sectors, which advanced our knowledge base and helped determine priorities for further sectoral research and regulatory analysis. Furthermore, the Sector initiated improvements to the federal regulatory system by working with the Treasury Board Secretariat to develop a guide to help regulators analyze the impact of new regulatory proposals on Canadian businesses and industries.
  • During 2006-07, the Smart Regulation Implementation Strategy was replaced with an Action Plan for implementing the Cabinet Directive on Streamlining Regulation.
SourceCAN
  • SourceCAN is a secure electronic doorway to the global e-marketplace led by the Industry Sector that matches Canadian companies and their products and services with opportunities posted daily by 48 domestic and foreign corporations and governments. In 2006-07, SourceCAN received about 850,000 opportunities, and 7.6 million bid matches were generated. For more information on SourceCAN, visit the SourceCAN website.

Additional Achievements

Tourism Industry
  • In December 2006, federal, provincial and territorial ministers approved the National Tourism Strategy framework, encouraging a higher level of collaboration on issues that affect the competitiveness of the Canadian tourism industry. Within the context of the framework, federal, provincial and territorial governments decided to focus on six priority areas where they can collaborate to grow the industry. These are border crossings, transportation infrastructure, product development, human resource development, tourism information and statistics, and tourism marketing.
  • In addition, the Industry Sector signed a Memorandum of Understanding with the Canadian Tourism Commission to guide the Commission in aligning its activities with government policy and objectives, both domestically and abroad.
Security and Prosperity Partnership of North America
  • The Industry Sector contributed to the development and implementation of initiatives under the Manufactured Goods and Sectoral and Regional Competitiveness (MGSRC) Working Group of the Security and Prosperity Partnership of North America (SPP).
  • The Sector worked to enhance Canadian sectoral competitiveness by providing sector and policy expertise in support of the SPP and by developing the Regulatory Cooperation Framework with co-leads from other government departments. Other important initiatives under the MGSRC working group included a trilateral steel strategy and a strategy to combat counterfeiting and piracy.
Special Programs
  • The Industry Sector has managed a small number of targeted interventions, through which the Government of Canada sought to encourage selected Canadian industries to become more competitive in the face of particularly intense international pressures through investing in capital, equipment and skills.
  • Examples of these interventions included the Structured Financing Facility, which stimulated economic activities in the Canadian shipbuilding and industrial marine sector, and the Canadian Apparel and Textile Industries Program. The Textile Production Efficiency Component of the Canadian Textiles Program (CANtex) helped Canadian textile manufacturers improve their productivity and reorient their production toward higher-value-added products for niche markets.

Industry Sector – Economic Development 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $95.5 million $73.3 million $68.4 million
Human Resources 257 FTEs - 246 FTEs

2.3.4 Program Activity: Spectrum, Information Technologies and Telecommunications Sector – Economic Development

Spectrum, Information Technologies and Telecommunications (SITT) Sector – Economic Development promotes economic development by ensuring that Canadians, communities and businesses have access to reliable, modern ICT infrastructure and the skills to fully participate in the digital economy. It also enhances entrepreneurship and lifelong learning by fostering the creation of advanced, enabling applications and technologies. Finally, it supports the development of a competitive ICT industry in Canada.

Sub-Program Activities: SITT Sector – Economic Development is delivered via two sub-program activities and three sub-sub-program activities:

  • Information and Communications Technologies Branch
  • Information Highway Applications Branch
    • Broadband for Rural and Northern Development Pilot Program
    • Francommunauts virtuelles
    • National Satellite Initiative
Expected Results

Canadians and communities overcome barriers and have access to modern ICT infrastructure.

Canadian ICT companies are positioned for growth in the global marketplace.

Industry Canada measures progress toward these expected results, in part, through the following indicators:


Indicators Progress in 2006-07
Number of Canadians and communities accessing and using ICTs The 2005 biennial Canadian Internet Use Survey reported that 68 percent of Canadians were using the Internet (58 percent in rural areas and in small towns).
Level of awareness of opportunities, gaps and barriers affecting ICT sector growth To maintain current analysis on the sector, Industry Canada produced statistical reports on ICT sector performance and briefs on other critical issues and emerging trends, including highly qualified people, research and development, intellectual property transfer, scientific research and experimental development, science and technology, and investment and trade.

Industry Canada committed to the following for 2006-07:

  • Ensure that Canadians have access to ICTs and modern ICT infrastructure.
  • Provide economic analysis that is critical to priority setting and decision making for the ICT sector.

Results Achieved

Access to Information Communication Technologies (ICTs)
  • In 2006-07, Industry Canada secured additional funding to continue supporting programs such as the Community Access Program and Computers for Schools (CFS), which have played a key role in supplementing Canadians' access to ICTs and modern ICT infrastructure.
  • In 2006-07, the Community Access Program supported approximately 4,000 public Internet access sites located in every Canadian province and territory.
  • Industry Canada's Computers for Schools initiative has refurbished and distributed approximately 800,000 computers, of which almost 86,000 were in fiscal year 2006-07. The refurbishment system devised by Computers for Schools has been recognized as a sustainable and best practice both domestically and internationally.
  • Industry Canada programs such as the Broadband for Rural and Northern Development Pilot Program and the National Satellite Initiative helped bring high-capacity Internet to remote and rural communities. The Broadband for Rural and Northern Development Pilot Program is responsible for connecting 875 communities (14 percent of all communities in Canada), of which 540 communities were connected during the 2006-07 fiscal year.
  • Industry Canada's National Satellite Initiative also provided some level of broadband service to a total of 91 communities, 51 of which were connected during the 2006-07 fiscal year.
  • Industry Canada also continued to deliver Francommunauts virtuelles through funding provided by the Action Plan for Official Languages. This program promotes the use of ICTs by the country's Francophone and Acadian communities by funding projects that aim to expand French-language Internet content, applications and services. During the 2005-2007 period, support was provided to 35 projects that were evaluated and recommended by the program's National Advisory Committee and approved by Industry Canada. These are multi-year projects; therefore, data for the 2006-07 period could not be isolated.
Economic Analysis
  • In 2006-07, Industry Canada supported the development of a competitive ICT industry in Canada by publishing several analytical reports on the ICT sector. Some of the topics addressed in these reports included telecommunications wireless equipment and the e health, e-security and e-gaming industries. These reports discuss what constitutes the industry, its past and current performance, global technology trends, business opportunities, Canada's strengths, the current policy environment and key issues, and current and future challenges. Industry Canada also supported the development of a competitive ICT industry by addressing key issues – such as highly qualified people, scientific research and experimental development, intellectual property transfer and commercialization – in policy forums and securing intelligence in these areas.

Additional Achievements

Industry Canada also supported Canada's ICT sector's efforts to compete globally by generating 533 sales leads through the coordination of Canadian pavilions at international trade shows and by organizing 31 corporate calls on investment targets. These activities contribute to the ongoing growth of the Canadian ICT sector and, in turn, create economic growth and jobs for Canadians.


SITT Sector – Economic Development 2006-07
Planned Spending and Resources Total Authorities as Per Public Accounts Actual Spending and Resources
Financial Resources $76.0 million $81.5 million $76.9 million
Human Resources 165 FTEs - 146 FTEs