The Globe and Mail

The federal government plans to boost Canadian productivity by increasing investments in scientific research and innovation – measures that in the long term are intended to drag Canada out of its pool of red ink.

Canada’s universities and colleges, which will reap another billion dollars for infrastructure from the stimulus funding announced last year, will also benefit from many pots of cash dedicated to boosting innovation.

Much of the new money is directed toward health and applied research. And most is aimed at bridging the work of academics to the private corporations that can put theoretical advancements into practical application.

“These investments will help create clusters of great new jobs on the frontiers of knowledge,” Finance Minister Jim Flaherty told the House of Commons.

“They will promote better health, a cleaner environment and a more sustainable use of natural resources.”

And if they create jobs and profits, they will increase the tax base and reduce the deficit.

In total, the government has increased its $4-billion in support of research and development by about $200-million, or about 5 per cent.

“It’s significant,” said Derek Burleton, a senior economist at the Toronto-Dominion Bank. “It represents a good step forward in supporting an area that is so important to Canada’s future prosperity. One can fold it into the general thrust toward productivity.”

In a budget that is short on new spending, innovation takes a relatively large slice of a meagre pie.

Genome Canada, an international leader in genomic research, will get $75-million for regional genomics innovation centres and targeted research on forestry and the environment.

Canada’s three research granting councils will receive a combined $32-million in new money for their annual budgets, after cuts last year. Half will go to the Canadian Institutes of Health Research, and $13-million to the Natural Sciences and Engineering Council. Research in the social sciences and humanities, which hold less profit-making potential, gets $3-million.

The granting councils also will receive $45-million over five years for fellowships of $70,000 each for recent doctoral graduates.

Noreen Golfman, dean of graduate studies at Memorial University and president of the Canadian Federation of the Humanities and Social Sciences, called the budget a “vote of confidence” for the research community.

Community colleges are clear winners, with the federal government doubling to $30-million the money for applied research done there. “We are one of the very few success stories here today,” James Knight, president of the Association of Canadian Community Colleges, said after the budget’s release. “This is a real recognition of the work we do.”

Universities also expressed relief at the increases in research funding. “Besides the money, for me it’s the recognition of research and innovation that is important,” said Paul Davidson, president of the Association of Universities and Colleges of Canada.

The group that represents university professors was less enthusiastic about the federal government’s practice of directing research money to projects or organizations rather than the granting councils. “This government continues to pick their spots,” said Jim Turk, executive director of the Canadian Association of University Teachers.

There is $19-million set aside in the coming year to search for new sources of medical isotopes. And $68-million will help to pay for the National Research Council of Canada’s 11 innovation clusters, networks that link business and science with the aim of promoting economic growth.

The Canadian Space Agency will get a dribble of new cash in the coming year, but has been allocated an additional $397-million over the next five years to help develop new satellite technologies. And there are smaller grants for a handful of things like spinal cord research.