Perimeter Institute seeking to enhance endowment with government funding

Nearly three years after its incorporation, the Perimeter Institute for Theoretical Physics is still waiting for the federal and Ontario governments to back up their expressions of support with funding for its ambitious plans to make Canada a world centre for quantum physics research. Armed with the largest philanthropic donation to basic research in Canadian history, the Institute has made three applications for funding. But the requests are challenging the status quo due to the size of the private sector donation, the esoteric nature of the project and its focus on basic research.

Based in Waterloo ON, the Perimeter Institute was founded with $120 million from three executives of Research in Motion Ltd (RIM) (R$, November 3/00). It is seeking an additional $100 million from three government sources to develop the size of endowment it contends is required to operate at maximum research capacity. When it was officially launched in late 2000, the Ontario and federal governments were reportedly planning their responses, but to date nothing has been announced.

Two of the applications have been made to existing funds — the Canada Foundation for Innovation (CFI) and the Ontario R&D Challenge Fund (CF). The third is being formulated within Industry Canada and the Finance department in response to requests by the Institute for assistance in developing a world class centre for basic physics research.

“All told we’re seeking about $100 million in addition to the $120-million endowment. It’s a lot of money but we’ve also raised a lot,” says Dr Howard Burton, the Institute’s executive director, adding that $40 million of the $120 million pledged by three RIM executives has been received to date. “If we can be self-sustaining with 70 scientists, we would be a dominant player in the international forum of ideas. This is a competitive field.”

The Institute’s application to the CFI is seeking $7 million, which will leverage a matching amount from the Ontario Innovation Trust. Part of the funding would be used for the construction of a permanent facility in downtown Waterloo and an announcement of competition results is expected within weeks. Burton acknowledges that the CFI isn’t geared towards funding physical infrastructure. But he notes that, given the nature of the institute’s mandate, the building is all the equipment it needs to carry out its research.

“The building is the equipment we need to attract and retain talent. It’s not a laboratory facility,” he says. “It will be interesting to see how elastic they (CFI) are in terms of their circumscribed mandate.”

A much larger amount is being sought through the CF, which was established by the Ontario government in part to motivate the private sector to increase its investment in academic research. The application has been made under the CF’s new funding formula, which now requires institutional funding to equal four-ninths of the total, with the CF providing two-ninths. The one-third share required from industry remains the same. If successful, the CF award would be $34 million, with the remaining seven-ninths coming from the Institute itself.

FEDERAL DISCUSSIONS ONGOING

Far less certain is the fate of the third application to the federal government. Institute officials have been in discussions with Industry and Finance officials for more than two years, with the most recent talks occurring last fall between former Industry minister Brian Tobin and Mike Lazaridis. Lazaridis is the president of RIM who spawned the idea for the Institute and provided the largest funding commitment ($100 million). He has already delivered $20 million and RIM executives Jim Balsillie and Douglas Fregin have contributed $10 million each.

Discussions have also be ongoing with the Natural Sciences and Engineering Research Council (NSERC) to see whether Perimeter researchers will be eligible for its funding even though the Institute is not a post-secondary institution. One possibility would be to give Perimeter researchers joint appointments with universities although details remain to be resolved.

“There would be a certain cache to have the CFI or NSERC associated with the Institute and the same thing goes with support from the provincial government., It increases your stature,” says a government official. “From our perspective, it’s useful to have participation from government to twin with the private sector. This is an active file at a mature state, but politicians make decisions not bureaucrats.”

There were heightened expectations that the government would provide funding for the Perimeter Institute in the most recent Budget. But no announcement was made and there is uncertainty as to when, how and if funding will be made available. Government officials acknowledge that the file is still active but understandably will give no details on the precise status of the file given the recent Cabinet shuffle and its impact on the Industry department.

CABINET SHUFFLE MAY IMPROVE ODDS

With the recent shuffle, Ontario has strong representation at the Cabinet table, potentially enhancing initiatives proposed for the province. Industry minister Alan Rock, secretary of state for science, research and development Maurizio Bevilacqua and secretary of state (FedNor) Andy Mitchell all hail from Ontario — the first time in many years the province has had such strong representation in portfolios with a direct impact on S&T.

But observers say the chances of federal funding would be greatly enhanced if the Institute succeeds in its efforts to secure funding from the CFI and OIT and the importance of philanthropy is mentioned in the final version of the Innovation Paper.

“If the Government of Canada wants to double R&D in this country, its obviously not going to do it alone. And the weak link is the private sector, so initiatives like this should be supported,” says one observer. “The government should signal its support for private sector champions...Finance and Industry know they have to get this one right because other opportunities might pop up. The Perimeter Institute needs more publicity and credibility within government but right now it’s invisible.”

Researchers at the institute will explore foundational issues of theoretical physics research in areas such as quantum gravity, string theory, quantum information theory, foundations of quantum theory and elementary particle physics. The permanent facility will be located on a prime tract of land donated by the City of Waterloo, complete with lake, park and treed walkway.

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