NRC cluster strategy makes breakthough with $110 million in Budget funding

The National Research Council (NRC) has received a ringing endorsement of its cluster and regional innovation strategy with $110 million over three years and the likelihood of much more to come. The new funding allows the NRC to kick-start previously announced technology clusters in photonics (Ottawa) and aluminum (Quebec), while boosting existing institutes in fuel cells (Vancouver), biodiagnostics (Winnipeg), biotechnology (Saskatoon) and the recently announced nanotechnology initiative (R$, September 5/01).

“This Budget is a great step forward for the NRC. We haven’t had many good budgets in the past seven years so this is a welcome change,” says NRC president Dr Arthur Carty. “This is phase two of our strategy if you like, following the first tranche of $110 million for our portion of the Atlantic Investment Partnership.”

The Budget award provides $40 million for the next two years and $30 million in year-end money, about half of which will go towards the immediate purchase of badly needed equipment across the agency’s constellation of institutes. And in a surprise move, the NRC is devoting the remaining $15 million to a key component of Canada’s Long Range Plan for Astronomy (LRP), and combining it with $20 million derived from a variety of internal sources.

ASTRONOMY SUPPORTED

The astronomy funding package will be used to assist an application currently before the Canada Foundation for Innovation (CFI) for Canada’s participation in the international Atacama Large Millimeter Array (ALMA) project under development in Chile. Funding of the ALMA project was a key recommendation of an expert panel report released last year (R$, May 12/00).

The Univ of Calgary is the lead institution for the CFI application, which is seeking approximately $22 million, bringing the ALMA total to nearly $60 million. If negotiations with the international consortium behind ALMA are successful and the CFI proposal is approved, Canadian scientists will get full access to US observatories as well, helping to strengthen what is already a shining light on the Canadian scientific scene. In addition, Canadian firms will be able to bid on contracts once Canada becomes an official signatory. The deadline for signing on is in February.

“Astronomy is a high priority for Can-ada. We’re third in the world behind the US and the UK and if we don’t participate in ALMA, Canadian scientists will be shut out,” says Carty.

Given the importance and time sensitivity of Canada’s participation in the ALMA project, the absence of funding in the Budget is odd. Even the Standing Committee on Finance stressed the need to fund Canada’s LRP in a report issued shortly before the Budget was tabled. In addition, Canadian industry has developed world-leading expertise in niche areas of astronomy and astrophysics, including optics, specialty steel, manufacturing and construction.

One observer says the NRC’s decision to jump into the breach reflects its commitment to the astronomy community as well as its contribution to good public policy. “This is the Canadian success story in science. It would be crazy to walk away,” he says.

The NRC is still working out the details on funding for each of its initiatives for cluster development and regional innovation, but the typical range is $20-30 million over five years. The Budget announcement also included funding for the previously announced National Institute for Nanotechnology. At that time Cabinet made a firm commitment to provide the new Institute with $60 million over five years, leading to speculation that the $110 million announced last week represents only a portion of the overall government commitment to the NRC’s cluster strategy.

ALUMINIUM

The Aluminium Technology cluster at the Univ of Québec a Chicoutimi has already received a commitment of $25 million from the regional development agency, Development Economique du Québec. NRC will contribute the remaining portion of the $52-million price tag. The objective is to build a cluster around existing industry by developing advanced manufacturing technologies to produce value-added products. This would reduce reliance on the export of raw aluminium. Currently more than 90% of Canada’s aluminium is exported as raw metal.

PHOTONICS

The Canadian Photonics Fabrication Centre will be associated with the NRC’s Institute for Microstructural Sciences in Ottawa. It will focus on growing the photonics industry with development and prototyping facilities, training personnel and providing a R&D resource for firms and university researchers. A new building will be erected and operational within two years.

FUEL CELLS

The dominant activity at the Vancouver Innovation Centre is fuel cells development, although lack of funding has limited the Centre’s usefulness to BC’s growing fuel cells cluster. The new funding will significantly ramp up activity by building on existing programs through a Fuel Cell Research, Technology Development and Commercialization Program, linking BC expertise to R&D strengths across Canada

MEDICAL TECHNOLOGIES

The centrepiece of the expansion to the Institute of Biodiagnositics is a new industry partnership facility (incubator). New manufacturing technologies in the area of medical diagnostics will be emphasized and the new facility will be used to house spin-offs from companies and the institute itself. The attached industrial workshop will be the first of its kind in Winnipeg.

NUTRACEUTICALS

Saskatoon-based Plant Biotechnology Institute will make a major expansion into nutraceuticals, functional foods and pharmaceuticals with a new research program called Crops for Enhanced Human Health. The objective is to accelerate growth of a prairies-based industry. A wide range of stakeholders have all expressed support for the new program and will likely contribute significantly to the funding.

R$