Fate of innovation agenda uncertain as political turmoil in Ottawa explodes

Strong Finance team, Rock question mark

The seismic shifts currently buffeting the political landscape in Ottawa have shaken the momentum of the innovation strategy, pushing it further on to the periphery of the government’s agenda while the outcome of the battle between the prime minister and the former finance minister is played out. Assuming that the innovation agenda remains on the political radar screen, the onus appears to fall on Industry minister Alan Rock to deliver the goods with a package that will sell to both his Cabinet colleagues and the Liberal caucus.

The departure of Paul Martin from the key Finance portfolio and yet another recent shuffle in the secretary of state position for science, research and development could have profound ramifications for outcome of the federal innovation strategy. The latter suggests that the Chrétien-led government does not view the strategy as a key component of its agenda at this time (see chart next page). But that could change, depending on the outcome of his battle with arch leadership rival Martin.

Opinion within the S&T community is split over whether the innovation strategy will emerge unscathed. The majority of those contacted contend that a strong innovation team at Finance — led by newly appointed minister John Manley and DM Kevin Lynch — has the will and the muscle to push through key measures.

“We’ve got the deadly duo of Manley and Lynch again, this time with feeling,” says one official. “You probably couldn't write a better scenario for the innovation strategy.”

But that scenario will only unfold if the Industry department can produce a visionary economic platform reflecting all sectors and key players, and containing realistic deliverables. The anecdotal evidence so far suggests that Rock must first increase the visibility of the innovation agenda. The process requires a forceful champion who has the ability to build the necessary industry, academic and government coalitions required to generate a common front.

RE$EARCH MONEY interviewed several government insiders on the prospects of the innovation agenda and all agreed that the next few weeks and months will be critical in determining its success. Opinion on the agenda’s ultimate success ranged from cautious to optimistic and unanimous consensus that the ball is in Rock’s court. An even larger question is whether Rock will remain in the Industry portfolio, given his leadership aspirations and the hard line now being taken by the prime minister.

“The big question is, will Rock stay? He usually leaves a legacy of things undone,” said one veteran insider. “And if Rock stays, how much leeway does Manley have in this whole exercise.”

Most agree that the Finance team now assembled under Manley would work hard to secure funding for measures stemming from the innovation agenda. But Manley has yet to be unburdened of his other sizeable duties as deputy PM with responsibility for the security portfolio. And the removal of Maurizio Bevilacqua from the science portfolio at Industry to international financial institutions at Finance doesn’t necessarily send a strong pro-innovation message to the community.

One observer asserts that it “sends absolutely the wrong message” while another says it was probably the most disappointing aspect of the recent Cabinet shuffle.

“Bevilacqua has demonstrated that he could be an effective player and this shows that innovation is not on the radar screen,” he says. “In the course of changing Don Boudria and Ralph Goodale, there was no need to take Bevilacqua out of science.”

COMMITMENT QUESTIONED

The innovation agenda was a core element of Liberal policy last year, dominating the Speech From the Throne which followed up Martin’s watershed speech the previous fall to the Toronto Board of Trade. Then came September 11, which saw security co-opt innovation’s spot on the government agenda. Some argue that it has battled back with the launch of the consultation process, and the need to act is now.

“It’s incumbent upon the community to develop their ideas and get them in before the fall,” says the government official. “They should assume the innovation agenda is going ahead and go for it.”

With a strong Finance team in place to receive the innovation strategy, all eyes are now on Rock to see how he handles the task of marshalling it through government.

“The government wants to get back on track with the innovation agenda and Rock’s carrying the ball to come up with ideas and a case. He still has to sell it,” says one official. “It’s an opportunity for him to shine.”

The signals Rock has been sending up until now are far from encouraging. Rock has reportedly attended none of the regional meetings held to date. Like Brian Tobin before him, many expected Rock to use the innovation consultation process to travel the country and build a leadership team while garnering valuable exposure.

“If innovation was ever to become a core element of the Liberal agenda again, some minister has to seize it and make it an essential thing for the Liberals to do. He has to really believe in innovation as an economic and social tool,” says an observer. “Manley would be a natural alley for Rock to make to build Cabinet and caucus support, but does Rock know how to build coalitions. Lots of files have blown up on him in the past so at this point innovation is really up in the air.”

All speculation at this point is moot until the leadership struggle between Chrétien and Martin is resolved. Some view the events of the past few days as a Martin powerplay which Chrétien has tried to foil by ejecting him from Cabinet. It’s high drama that will be unfold in the weeks ahead leading up to the February leadership review.

“The Innovation agenda may well become a casualty. But if Chrétien staves off the Martin coup attempt, the focus will shift back towards government and governing,” says one source. “The agenda could be brought back to the centre and pushed. But until the political machinations are resolved, none of these things are on the agenda.”

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