The Short Report: August 14, 2024

GOVERNMENT FUNDING      

 Innovation, Science and Economic Development Canada (ISED) announced a contribution of $22.4 million, through the Strategic Innovation Fund (SIF) to support a $64.1-million project by Mississauga-based Eurofins CDMO Alphora Inc., whose parent firm is located in Luxembourg. This investment will support construction of a new biologics facility, increasing domestic production capacity for antibodies and protein-based therapeutics that will allow Canadians to better respond to future pandemics. The facility will also enable Eurofins CDMO Alphora to accelerate clinical testing and the speed at which novel therapeutics are brought to market. ISED said with the contribution, the company will create 120 jobs and 65 co-op positions, as well as have the ability to produce materials for clinical trials and meet commercial requirements for a production capacity of up to 24.9 million vials annually. ISED

Finance Canada announced enhancements to the Canadian Entrepreneurs’ Incentive (CEI) aimed at reducing the impact of changes to the capital gains tax inclusion rate on innovators, small business owners and farmers. In response to entrepreneurs’ desire for the CEI to be delivered sooner, the annual phase-in increases will be doubled to $400,000, to reach $2 million by 2029. That's in half the time announced in Budget 2004 which said the CEI would increase by $200,000 annually over 10 years, to reach $2 million by 2034. Finance Canada also proposes eliminating the requirement that business owners must be a founder who, at all times since founding the company, held 10 percent or more of all common shares. The minimum ownership levels will be reduced to five percent, and the minimum ownership time will be reduced to any continuous 24-month since the business’s founding, thereby eliminating the requirement to be a founder. Budget 2024 announced that business owners must be actively engaged on a regular, continuous, and substantial basis for the five years immediately preceding the sale of the business, to benefit from the CEI.  Under the enhancements, this active engagement period will be reduced to a regular, continuous and substantial basis to any combined three-year period since the founding of the business. Budget 2024 announced that small business corporation shares would be eligible property for the CEI, making eligible entrepreneurs better off when selling business shares worth up to $6.25 million. To expand the Incentive to more small business owners, including the next generation of business owners, eligibility will be expanded to all qualified farming and fishing property, and additional small businesses. Finance Canada released draft legislation on the CEI and is inviting comments by September 11, 2024, to be sent to consultation-legislation@fin.gc.ca Benjamin Bergen, president of the Council of Canadian Innovators (CCI) said in a statement that the "tweaks to the CEI fall short of addressing the harm caused by the government’s tax plans on Canada’s innovation economy. CCI continues to call for a full reversal of the government’s plan because taxing our way to prosperity isn’t a viable path.” Bergen said Canadians deserve “bold, forward-thinking economic policies that actually foster growth and give companies the talent and capital they need to scale. It’s time for the government to stop taxing ambition and start working with innovators to tackle Canada’s productivity and prosperity challenges.” Finance Canada

The Canadian Institutes of Health Research (CIHR) announced a federal investment of more $43 million to support 14 new clinical trials focused on preparing Canada to respond to future health emergencies and advancing the country’s life sciences sector. The 14 clinical trials will assess treatments, diagnostic tests, and prevention tools for a wide range of health concerns including the flu, sepsis, stroke, tuberculosis, antimicrobial resistance, hepatitis C, COVID-19, and pneumonia. These trials are being supported by the CIHR Clinical Trials Fund, an important part of Canada’s Biomanufacturing and Life Sciences Strategy, and Canada’s Strategy for Patient-Oriented Research. The full list of clinical trials can be found here: CIHR Clinical Trials Projects

The Ontario-based Next Generation Manufacturing Canada global innovation cluster is investing $21.4 million in 15 advanced manufacturing projects with a total value of $58.8 million. Industry partners from 15 project consortia contributing the remainder. The investments will support 31 companies in various manufacturing sectors across Canada. The announcement follows recent NGen programs including the Commercialization of Quantum Technologies  (National Quantum Strategy), Electric Vehicle Value Chain Program, and  Moonshot for Mining, Minerals and Manufacturing (Canadian Space Agency).  The projects and companies involved are:

• Commercialization of Quantum Technologies Stream (National Quantum Strategy)

($5.6 million NGen investment | $8.5 million industry contribution | $14.1 million total project value).

Quantum Simulations for Materials Discovery

• OTI Lumionics (Toronto, Ontario)
• Nord Quantique (Sherbrooke, Quebec)

Manufacturing of 3D Packaging for QPUs

• Anyon Systems (Dorval, Quebec)
• Centre de Collaboration MiQro Innovation (Bromont, Quebec)

Advanced Processes using Pulsed Lasers for Integrated Quantum Chips

• Femtum (Quebec City, Quebec)
• WhalePix (Quebec City, Quebec)
• Solution Novika (La Pocatière, Quebec)

Manufacturing of multisite atomic force microscopy for quantum device metrology

• ICSPI Corp. (Waterloo, ON)
• Applied Nanotools (Edmonton, AB)

Moonshot for Mining, Minerals, and Manufacturing (Canadian Space Agency)

($2.3 million NGen investment | $2.3 million industry contribution | $4.6 million total project value).

Automated Task Learning Technology for Easy and Fast Setup of Autonomous Robots

• Guidebolt (Mississauga, Ontario)
• Lauer (Amaranth, Ontario)

UGPS for Space Exploration

• Aposys Technologies (Mississauga, Ontario)
• Cheetah Networks (Ottawa, Ontario)

Swarm Construction

• Canadian Space Mining Corporation (Toronto, Ontario)
• Mission Control Space Services (Ottawa, Ontario)

Characterization and Presentation of Critical Minerals Reserves and Assets

• Sayona (La Motte, Quebec)
• MayaHTT (Westmount, Quebec)

Manufacturing of nano alumina dopped with Rare Earth Elements

• AEM Technologies (Montreal, Quebec)
• Neoctech (Montreal, Quebec)

Sustainable Copper Oxide for Lunar Applications

• Destiny Copper (St. Catharines, Ontario)
• Canadian Space Mining Corporation (Toronto, Ontario)

EV Value Chain Program

($13.5 million NGen investment | $26.5 million industry contribution | $40 million total project value).

Advanced manufacturing processes for EV power electronics heat exchangers

• Dana Canada (Oakville, Ontario)
• KA Imaging (Waterloo, Ontario)

Lithium-Ion Battery Innovations and Integrated Systems for Next Gen EVs

• Flex-Ion Battery Innovation Center (Windsor, Ontario)
• SPM Automation (Windsor, Ontario)

Recycling of Graphite from Secondary Sources for use in Lithium-Ion Batteries

• Green Graphite Technologies (Montreal, Quebec)
• Calumix Technologies (London, Ontario)

One Pot Reactor Optimization

• Nano One (Vancouver, B.C.)
• Chemetics (Vancouver, B.C.)

Sustainable and High-Performance Fuel Cells used in EVMPs

• Plasmagear (Montreal, Quebec)
• Ionomir Innovations (Vancouver, B.C.) Globe NewWire

Environment and Climate Change Canada (ECCC) announced nearly $12 million over 10 years to support the Fort Chipewyan Health Study in the Athabasca oilsands region in northern Alberta. Steven Guilbeault, minister of ECCC, visited Fort Chipewyan and met with community leaders and members to better understand their concerns about the environmental and human health risks associated with living near oilsands facilities. These concerns were heightened in February 2023, when the federal government and Indigenous communities were made aware of a release of approximately 5.3 million litres of industrial wastewater from Imperial Oil’s Kearl oilsands facility. The wastewater included dissolved iron, arsenic, hydrocarbons, sulphate and sulphide. The community-led health study, with the Athabasca Chipewyan First Nation, the Mikisew Cree First Nation and the Fort Chipewyan Métis Nation, will examine the impacts of the oilsands on community members’ health. The design of the community-led health study, currently underway, will outline the communities’ objectives and study methodology. They may include an assessment of whether there are heightened risks for cancer and other health and environmental impacts for downstream communities related to activity in the oilsands region. Indigenous community members re-affirmed that the impact of environmental incidents in the oilsands region is an environmental injustice, and expressed their deep concern for their continued exposure to the downstream impacts of the oilsands, ECCC said. Guilbeault said Ottawa had invited the Alberta government to help fund the study, but had not received any response. The Alberta government said in a statement it was committed to working with Indigenous partners on a health study and would seek more information about the study announced by the federal government. ECCC

Natural Resources Canada (NRCan) announced a federal investment of $7.5 million to various organizations to raise awareness and educate Canadians about zero-emission vehicles (ZEV), including public charging and refueling infrastructure, and clean fuels. This funding will support a variety of initiatives including mechanical training for students and EV test-drives in Edmonton, charger and use guides for first-time EV drivers in Dartmouth, N.S., and e-bike safety courses across British Columbia. The projects will help address challenges related to awareness, knowledge, confidence and adoption of ZEVs, lower-carbon trucks, and clean fuels through outreach, education and capacity-building activities. Funding for these projects was provided through NRCan’s Zero-Emissions Vehicles Awareness Initiative. NRCan

Agriculture and Agri-Food Canada (AAFC) announced a joint Government of Canada and a Government of Ontario investment of up to $5 million, through the Sustainable Canadian Agricultural Partnership, to help small businesses in the agriculture and food industry enhance their food safety systems and stimulate growth. Through the Food Safety and Growth Initiative, funding will be provided to eligible food processors, producers and service providers to improve food safety systems, adopt new food safety and traceability equipment, technologies and standards, and provide related training to employees. This funding will also enable operators to respond to market and consumer demands and grow their business. The investment will help achieve goals laid out in the Grow Ontario Strategy, including strengthening the stability and competitiveness of the province’s agri-food supply chain. Successful projects are eligible to receive 50 percent of eligible costs, in cost-share funding, up to a maximum of $75,000 per project. AAFC

Prairies Economic Development Canada (PrairiesCan) announced nearly $3.2 million to support seven projects across Manitoba, through the Manitoba Indigenous Critical Minerals Partnership Initiative. The initiative was created to further support Indigenous communities to engage with, respond to, and benefit from mineral development and exploration opportunities based on their community plans and priorities. Projects receiving support are:

• Norway House Cree Nation – $300,000 to complete a business plan and deliver training programs that support sector opportunities and partnerships.
• Marcel Colomb First Nation – $387,957 to support Marcel Colomb First Nation to develop and deliver a workforce readiness program to community members.
• Nisichawayasihk Cree Nation – $200,000 to hold a Critical Minerals Conference for First Nations in Northern Manitoba.
• Indigenous Chamber of Commerce – $143,297 to engage with Indigenous communities across Manitoba and complete a mining readiness assessment.
• Indigenous Chamber of Commerce– $634,492 to coordinate and host a Manitoba Indigenous Business Showcase at the Prospectors & Developers Association of Canada convention from 2024-2026, and support the attendance and participation of Manitoba Indigenous communities and businesses.
• University College of the North – $1,264,805 to create and deliver targeted train-to-hire mine readiness programming to boost Indigenous and northern workforce to support growing sector opportunities.
• Communities Economic Development Fund – $265,000 to establish and expand community economic development corporations and support Indigenous participation in the mining sector through business and professional development opportunities. PrairiesCan

Pacific Economic Development Canada (PacifiCan) announced more than $1.6 million to support innovation by three Kamloops, B.C.-based businesses and organizations. The projects funded are:

• Axis Forestry Inc. – $978,175 to support the commercialization of the company’s Rebel Hydraulic Tree Processor and Cypress Controller Software System, and optimization of its 16,000-square-foot manufacturing facility. The Rebel Hydraulic Tree Processor attaches to the end of an excavator’s boom arm and fells trees, removes branches and cuts wood into specific lengths for transport to the sawmill. The Cypress Controller Software System enables loggers to more accurately measure, cut and process logs and offers onboard diagnostics. This innovation was developed by Axis Forestry’s engineering team in Kamloops and is the only tree processor manufactured in North America.
• Kamloops Food Policy Council (KFPC) and Community Futures Development Corporation of Central Interior First Nations – $650,650 to help improve the local food supply chain in the Central Interior by funding the expansion of KFPC’s Kamloops food hub so that more farmers and entrepreneurs can use the facility for food preparation and packaging. This work includes expanding the reach of the local Kweseltken Kitchen – a mobile food processing trailer serving Indigenous farmers and remote communities. The funding will also support the creation of an online marketing platform and regional branding strategy that will help local farmers market their goods more efficiently. PacifiCan

The Government of British Columbia is providing $1.2 million over three years to support Courtenay, B.C.-based North Island College’s new seaweed industry pilot training program. Developed in collaboration with industry stakeholders and community partners, the program will focus on sustainable seaweed cultivation, processing and marketing, providing people on North Vancouver Island with the skills needed to secure jobs in this growing industry. The program aims to create a skilled workforce that will support economic resilience and growth in the region. The project includes seven micro-credentials and hands-on field training that will be delivered over 18 months, benefiting an estimated 80 participants. Funding will cover students’ full tuition costs, as well as a variety of supports. Registration opens in October with participants starting courses for the winter and spring 2025 semesters. Govt. of B.C.

Agriculture ministers from the Governments of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and Prince Edward Island expressed serious concerns about changes to the capital gains tax proposed in the 2024 federal and the impacts on the agricultural sector. At an annual conference of federal, provincial and territorial agriculture ministers, held in Whitehorse, Yukon, provincial ministers called on Ottawa to reverse the capital gains tax changes. The changes will inadvertently, disproportionately and unfairly target agriculture producers and their succession plans, the ministers said. Intergenerational transfers play an integral part in succession planning for family farms. Increasing inclusion rates from one-half to two-thirds for individual capital gains above $250,000, and from one-half to two-thirds for corporations, will penalize farming operation transfers, the ministers said in a statement. “Farmers and ranchers who rely on selling their assets for retirement will also see their retirement plans diminished.” Govt. of Saskatchewan

Some universities in Quebec are suspending renovation and construction projects for the foreseeable future after the Government of Quebec announced new funding arrangements for education institutions’ infrastructure budgets. In a letter to the McGill University community, provost Christopher Manfredi and vice president Fabrice Labeau said the Legault government informed the university recently that there would be changes to the funding mechanism for capital projects "that severely affect McGill's financial capacity to proceed with such projects." The changes mean capital grants will be paid as repayments of temporary loans rather than through long-term debt servicing. Also, the government will impose a yearly cap, retroactive to May 1 of this year,  on the amounts the province will fund, “with the projected cap for the current year being much lower than the amount we had planned to spend," Manfredi and Labeau said.  "As such, no new project is to begin and all calls for tender for construction are hereby suspended until further assessment." Laval University and Concordia University said they face similar issues due to the changes. Quebec's ministry for higher education said Finance Minister Eric Girard announced the decision to modify the transfer payment standard in March after recommendations from the Quebec auditor general regarding accounting standards. CTV News

UK Research and Innovation (UKRI) announced £32 million (Cdn$56 million) for 98 new projects that will use artificial intelligence to improve productivity across the economy. The projects include improving safety on construction sites, reducing time spent repairing the railways, improving design of electric vehicle motors, and cutting emissions across supply chains. The funding, which will specifically support solutions in “high growth” is provided through the UKRI’s Technology Missions Fund, and delivered through the Innovate UK BridgeAI program, involving more than 200 businesses and research organizations. UKRI

RESEARCH, TECH NEWS & COLLABORATION

In a study by Western University, the artificial intelligence-powered ChatGPT, a large language model, got medical diagnoses correct only half the time when researchers asked ChatGPT to answer 150 medical case challenges – a series of diagnostic problems for doctors. The AI app wasn’t very sensitive in its answers and was overly complicated in half of its responses, according to the study led by Dr. Amrit Kirpalani in Western’s Department of Paediatrics, and published in the journal PLOS One. ChatGPT answered 49 percent (74/150) of cases correctly. “ChatGPT in its current form is not accurate as a diagnostic tool,” the researchers concluded. “ChatGPT does not necessarily give factual correctness, despite the vast amount of information it was trained on.” Based on the researchers’ qualitative analysis, ChatGPT struggled with the interpretation of laboratory values, imaging results, and may overlook key information relevant to the diagnosis. However, the researchers said ChatGPT still offers utility as an educational tool, given it was generally correct in ruling out a specific differential diagnosis and providing reasonable next diagnostic steps. Also, answers were easy to understand, offering a potential benefit in simplifying complex concepts for medical learners. PLOS One

YSpace, York University’s innovation hub, has partnered with York Region to launch the new ELLA Incubator program, an initiative designed to empower aspiring women entrepreneurs in the technology industry by offering essential resources and mentorship to help them grow and scale their business ventures beyond their launch. YSpace ELLA was created to support women entrepreneurs in launching and growing their businesses. Since 2020, it has achieved significant success, supporting more than 150 women entrepreneurs in raising over $10 million in capital, generating over $20 million in revenue and creating numerous jobs. The ELLA Incubator program is part of YSpace’s broader Project JumpSTART initiative, which focuses on driving economic development and innovation within York Region. The collaborative effort brings together YSpace, the Schulich School of Business’s Office of Innovation & Entrepreneurship, the Treefrog Accelerator and York Region to foster a supportive environment for entrepreneurs. York University

Canada’s Ocean Supercluster, based in Atlantic Canada, announced the launch of its fourth Ocean Startup Challenge. Innovators and entrepreneurs from across Canada are invited to apply for a chance to help transform their idea and early stage ocean startups into impactful, scalable businesses. The Ocean Startup Challenge offers up to $25,000 in awards for winning teams, along with valuable business development support, including mentorship, one-on-one sessions with industry experts, and extensive networking opportunities. This year’s program aims to continue the project’s mission of fostering innovation and growth within Canada’s ocean economy, propelling the nation to the forefront of the global blue economy. In addition to funding and training workshops, selected participants will receive in-kind support from ecosystem partners across the country; this includes co-working space, facilities, technical expertise and more. The Challenge Statements include areas of focus such as sustainable seafood, renewable ocean energy, decarbonized shipping and marine transportation, marine bio-resources and biotechnology, and autonomous vessels and robotics. Applications for the 2024 Ocean Startup Challenge are open until September 15, 2024. Canada’s Ocean Supercluster

Innovation, Science and Economic Development Canada (ISED) announced that under the Innovative Solutions Canada program, the Royal Canadian Mounted Police is seeking an artificial intelligence behaviour monitoring solution to monitor – without the use of a visual camera that could identify the subject – the behavioural movements and vital signs of person(s) held in custody within RCMP's holding cells. The solution will alert RCMP personnel when the subject in-custody is exhibiting concerning and/or destructive behaviour and may be in life-threatening medical distress. The maximum funding available for a Phase 1 contract is $150,000, and up to $1 million for a Phase 2 contract. Proposals are due on September 10, 2024, at 2 p.m. ET. ISED

Evidence for Democracy (E4D) launched its new Science Advocacy Hub, which serves as a one-stop portal designed to empower researchers across Canada with the knowledge, tools and resources necessary to effectively communicate with policymakers and engage in advocacy. In support of the Science Advocacy Hub's launch, E4D created a new blog series to share the stories of advocates from coast to coast: “The Roots of Change Blog” series. This series provides a unique opportunity to tell the stories of those who have led grassroots advocacy campaigns, and championed evidence in policy making. The blog series kicks off with a A Paulicyworks Reflection on Advocacy and a Look Forward, where longtime science policy expert Paul Dufour, fellow and adjunct professor with the Institute for Science, Society and Policy at the University of Ottawa, reflects on how early influences of his artistic parents, and teacher siblings led him to a path in science and public policy. Also in the series is Guidance on Speaking Truth to Power, with Dr. Alexandra Morton, PhD, director of the Salmon Coast Society, who raised the alarm of environmental harm of industrial salmon farms. Over the years, Morton’s activism grew, culminating in a 280-day occupation of salmon farms with First Nations, which led to significant policy changes and the closure of numerous farms. Evidence for Democracy

Toronto-based Space Flight Laboratory (SFL) has been contracted by GHGSat of Montreal to develop two additional greenhouse gas monitoring microsatellites. SFL will develop the new satellites on its low-cost, high-performance 15-kilogram NEMO bus, the same platform used to build the first nine GHGSat microsatelletes. GHGSat is a world leader in detecting and measuring facility-level greenhouse gas emissions from industrial sources on the Earth’s surface from space. Decision-makers across government and industries, including oil and gas, power generation, mining, waste management, and agriculture, rely on GHGSat emissions data to drive emissions reduction. In 2023 alone, GHGSat’s satellite constellation made more than three million measurements across 85 countries, enabling the mitigation of more than six million tonnes of carbon dioxide equivalent of methane emissions. All nine GHGSat spacecraft developed by SFL are in excellent operational health. Space Flight Laboratory

Through change.org, an anonymous person has started a petition – which to date has garnered more than 8,500 signatures – to save the Ottawa-based David Florida Laboratory (DFL), Canada’s national facility for space technology testing. The Canadian Space Agency (CSA) announced in early 2024 that they would be closing DFL in March 2025 due to government-mandated budget cuts. On May 1, the CSA issued a Request for Information, now closed, to gage interest in seeing if any organization would lease the lab. As a national test facility, the purpose of DFL isn't to be profitable, the petitioner said. “The purpose is to enable Canadian companies to prosper and to promote economic activity for the benefit of Canadians.” The return on investment in DFL is a 10-fold to 20-fold increase in national economic activity in the space sector, including revenue from exports, according to the petitioner. “The closure of DFL directly impacts active contracts at Canadian companies, jeopardizing their ability to deliver on schedule and under budget. It directly impacts the ability of Canadian companies to make future sales and to maintain viable business models.” Immediate action is needed before DFL capabilities are lost beyond the point of no return, the petitioner said. DFL houses major test equipment not found elsewhere in a single place, including but not limited to equipment for tests in thermal vacuum, vibration, antenna pattern, electromagnetic compatibility and mass properties. The expertise of the DFL staff is well known both nationally and internationally. “There is no facility like it in Canada.” Change.org

Kitchener, Ont.-based startup Vena Medical has developed technology that can suck clots out of tiny blood vessels deep inside the brain, significantly improving the odds for a complete recovery from stroke. The company developed a tiny balloon that can be inflated at the end of a catheter to momentarily stop the flow of blood pushing against a clot. As soon as the balloon is in place, the surgeon attaches a syringe to the catheter and sucks the clot out of the brain. The Ottawa Hospital is the first in Canada to adopt the technology – known as Balloon Distal Access Catheter – into its stroke treatment protocols, said Michael Phillips, co-founder and CEO of Vena Medical. An ultrathin catheter – a long, hollow and flexible tube – is inserted into the body through a tiny incision in the femoral vein near the patient’s groin. With imaging technology, the surgeon guides the catheter through the circulatory system and into the brain of the stroke victim. When the end of the catheter is as close as possible to the clot, the balloon is inflated, cutting off blood pressure that was holding the clot in place, and the clot is sucked into the catheter. About 30 years ago the clot-busting drug TPA was hailed as a breakthrough in stroke treatment. It is highly effective but must be administered within 4 ½ hours of the first symptoms of a stroke. The overwhelming majority of patients do not get to the emergency ward in time for TPA treatment, and the traditional catheter can remove clots in about 44 percent of patients, Phillips said. By comparison, the Vena medical balloon catheter successfully removed clots in 64 percent of patients on the first attempt. And it can be performed many hours after a stroke is first detected, Phillips said. Vena Medical was founded by two University of Waterloo mechanical engineering grads, Phillips and Phillip Cooper, president and chief operating officer. Waterloo Region Record

Melbourne, Australia-based AIM Defence (which has an office in Vancouver) bested 15 anti-drone technology local and international companies to win $1 million from the Department of National Defence (DND). During a three-week contest that ended in mid-June, AIM Defence’s Fractl:1 high powered laser, integrated with an in-house developed AI tracking system, neutralized 30 drones at distances up to 1.5 kilometres away. At Defence Research and Development Canada Suffield Research Centre in Alberta, AIM’s Fractl system and its competitors engaged quadcopter, first-person view and fixed wing drones. AIM Defence said there has been “significant follow-on interest” from the DND and Canadian Armed Forces. Joint second-place winners were Canadian firm Sherbrooke, Que.-based DARIT Technologies and Toronto-based Prandtl Dynamics, with both companies taking home $375,000. The next Counter Uncrewed Aerial Systems Sandbox, run through DND’s Innovation for Defence Excellence and Security (IDEaS) program, will be held in 2026. InnovationAus.com

Artificial intelligence pioneer Yoshua Bengio is joining a project funded by the U.K. government to embed safety mechanisms into AI systems. The project, called Safeguarded AI, aims to build an AI system that can check whether other AI systems deployed in critical areas are safe. Bengio, professor at Université de Montréal and scientific director of the MILA - Quebec AI institute, is joining the project as scientific director and will provide critical input and scientific advice. The project, which will receive £59 million over the next four years, is being funded by the U.K.’s Advanced Research and Invention Agency (ARIA), launched in January last year to invest in potentially transformational scientific research. Bengio said he wants to help ensure that future AI systems cannot cause serious harm. “We’re currently racing toward a fog behind which might be a precipice,” he said. “We don’t know how far the precipice is, or if there even is one, so it might be years, decades, and we don’t know how serious it could be . . . We need to build up the tools to clear that fog and make sure we don’t cross into a precipice if there is one.” ARIA is also offering funding to people or organizations in high-risk sectors such as transport, telecommunications, supply chains, and medical research to help them build applications that might benefit from AI safety mechanisms. MIT Technology Review

Boeing is investing $61 million to benefit two British Columbia aerospace enterprises and bolster Canadian economic growth. The investments are part of Boeing’s Industrial and Technological Benefits commitment to Canada for the country’s selection of Boeing’s P-8A Poseidon to fulfill Canada's long-range multi-mission aircraft role. Boeing’s investment includes $13 million to support COTA Aviation, a Parksville, B.C.-based Indigenous-owned aerospace and defence company. This investment will equip COTA with advanced manufacturing equipment, enhancing their capability and capacity to produce commercial and military aircraft components. Funding also will enable COTA to establish a dedicated hands-on aerospace manufacturing training facility. Boeing is also investing $48 million to fund a suite of research and development technologies at Boeing Vancouver in support of company programs, project management tools for increased collaboration with customers, and analytics to optimize aircraft maintenance, sustainability and performance for crewed and autonomous flight. The federal government announced its decision to acquire the P-8A Poseidon aircraft in November 2023 as part of the Canadian Multi-Mission Aircraft project. Boeing’s investments build on more than $2 billion in P-8 contracts with Canadian companies to date, contributing jobs and economic growth across the country. Techcouver

Canadian Nuclear Laboratories (CNL) and BDC Capital (the Business Development Bank of Canada’s investment arm) announced a $20-million investment – $10 million each – in Vancouver-based General Fusion which is developing commercial fusion energy. The financing will enable General Fusion to continue advancing its innovative technology – Magnetized Target Fusion (MTF) – to provide clean fusion energy to the electrical grid by the early to mid-2030s. To fast track its progress towards commercialization, General Fusion is advancing its Lawson Machine 26 demonstration program in Richmond, B.C. This machine is designed to achieve two transformational milestones for fusion energy – temperatures of over 100 million degrees Celsius and scientific breakeven equivalent – using the company’s unique MTF technology. As a new lead investor in the financing, CNL will be represented on General Fusion’s board of directors by Doug McIntyre, vice-president, legal and insurance. BDC has been a major investor in General Fusion since 2019, and is represented on General Fusion’s board by Zoltan Tompa, senior partner at BDC Capital’s Climate Tech Fund. In addition to the lead investments, the first closing of this financing also includes investment from Mississauga, Ont.-based Hatch, a Canadian headquartered global consultancy firm specializing in the mining, energy and infrastructure sectors, and other company shareholders. This financing brings the total public and private investment into General Fusion’s LM26 program to more than $71 million since its launch in 2023. CNL

Outremont, Que.-headquartered carbon-removal company Deep Sky has selected a site in Innisfail, about an hour’s drive north of Calgary, and will start construction on Deep Sky Labs, what the company calls “the world’s first carbon removal and innovation centre.” The mission of Deep Sky Labs, the first commercial direct air capture (DAC) project in Canada, is to accelerate the path to low-cost, low-energy intensity and highly scalable carbon dioxide removal to produce high-integrity carbon credits. The Deep Sky Labs site is located within five acres of a municipality-owned industrial park, neighboring other proposed green projects including a solar farm and waste-to-energy plant. Engineering and design work has been conducted in partnership with engineering firm BBA. Deep Sky said the facility will be operational this winter, and will have the capacity to capture 3,000 tonnes of carbon dioxide per year, or 30,000 tonnes over a 10-year period, via up to 10 different technologies. It will also include room for future expansion. To start, eight state-of-the-art DAC technologies will be deployed at the facility. Proprietary Deep Sky software will track and benchmark all operational data to accelerate the R&D of technology partners and the industry at large. The DAC technology providers include Airhive, Avnos, Phlair (formerly Carbon Atlantis), Greenlyte Carbon Technologies, Mission Zero, NEG8 Carbon, Skyrenu, and Skytree. The CO₂ collected at Deep Labs will be trucked to an existing well at the Meadowbrook Carbon Storage Hub facility, north of Edmonton in Sturgeon County,  operated by Deep Sky’s storage partner Bison Low Carbon Ventures. Bison is advancing the Meadowbrook project through the regulatory approval process and has a dedicated injection well capable of handling all Deep Labs’ volume. Deep Sky

The nonprofit project Carbon Removal Standards Initiative (CRSI) launched, with the goal of helping develop standards for efforts to remove and sequester carbon dioxide. CRSI’s initial funders include Bill Gates’s climate investment firm, Breakthrough Energy Ventures. Carbon dioxide removal (CDR) encompass many different things — building an industrial facility to filter CO₂ out of the air or seawater, for example. However, there’s a risk that the carbon-removal accounting won’t help reduce CO₂ in the atmosphere that's accelerating global warming and climate change. New CDR industrial facilities use a lot of energy, for example, and the carbon they capture could potentially be used to produce more oil and gas. The European Union is developing the first certification framework of its kind for carbon removal technologies. Rather than developing its own guidelines for others to follow, CRSI said  it’s taking a “bottom-up approach to standardization.” The initiative aims to provide technical assistance to regulators and other organizations working on carbon removal policies. CSRI has already put together a publicly available database of academic papers, industry white papers and other resources on quantifying carbon removal. The Verge

Oakville, Ont.-based Algonquin Power Corp. has agreed to sell its renewable energy business (excluding hydro) to LS Power, a New York-based investment manager, for up to US$2.5 billion, Algonquin Power said the sale is part of its plan to transform the company into a pure play regulated utility, optimize its regulated business activities, strengthen its balance sheet, and enhance earnings. The sale consists of $2.28 billion cash at closing of the deal and up to $220 million in cash based on an earn-out agreement on certain wind assets. The sale still requires approval of the U.S. Federal Energy Regulatory Commission. The deal will leave Algonquin with its main and much larger business of delivering power in the U.S., Canada, Bermuda and Chile, which brought in US$2.37 billion in revenue in 2023. Algonquin Power

Ireland-headquartered Arcadium Lithium is pausing investment in its 40,000-tonne Galaxy lithium spodumene mining project in James Bay in northern Quebec, due to a global slowdown in production of electric vehicles which use lithium-ion batteries. The company is exploring the opportunity to bring in a partner interested in providing capital for the project in return for a long-term strategic investment. The pause in spending will be structured to minimize both cost and timing disruption when the project is ultimately resumed, Aracadium Lithium said. The company said it doesn’t plan to alter the development of Nemaska Lithium, a 32,000-tonne integrated spodumene-to-hydroxide project at the Whabouchi mine in northern Quebec. This project is owned in equal parts by Investissement Québec, the economic development agency of the Québec government, and Livent (now part of Arcadium Lithium). Arcadium also announced in early August that it acquired battery tech startup Li-Metal, including its intellectual property and pilot production facility in Ontario, for $11 million. Arcadium Lithium

China’s Zijin Mining Group Co. – the world’s sixth-biggest by market value – is challenging the federal government’s rules on investment in Canadian assets abroad. The federal government’s plan to potentially do a national security review, under the Investment Canada Act, of Zijin’s purchase of a gold mine in Peru, owned by Vancouver-headquartered Pan American Silver Corp., shouldn’t be allowed, Zijin argued in a court filing, the Canadian Press reported. Industry Minister François-Philippe Champagne, who oversees mergers and acquisitions, has repeatedly thwarted Chinese efforts to acquire – or just invest in – domestic critical-mineral companies. Jinteng claims in a judicial review application filed in Federal Court of Canada in late July that the minister “lacks jurisdiction under the act” to order a national security review of the La Arena deal. The government’s rules have triggered protest from domestic junior mining firms, as well. Vancouver-based Solaris CEO Daniel Earle called the foreign ownership policies “counterproductive” and “unfair.” The Canadian Press

Google said it will appeal a ruling by the United States District Court for the District of Columbia that found Google is a “monopolist” that violated U.S. antitrust law. Judge Amit Mehta ruled against Google under the Sherman Act, a key U.S. anti-trust and “unfettered competition” law, in a 286-page ruling following more than three years of proceedings. Mehta ruled that the tens of billions of dollars Google pays to make its search engine the default on numerous website browsers and devices has “thwarted true competition by foreclosing its rivals from the most effective channels of search distribution.” Google’s exclusive deals with Apple and other key players in the mobile device ecosystem were anticompetitive, Mehta ruled. In a statement on X, Kent Walker, president, global affairs of Google, said the court’s decision recognizes that Google offers the best search engine, “but concludes that we shouldn’t be allowed to make it easily available.” Walker added: “Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal.” The U.S. government launched the case in 2020, and followed up with a lawsuit against Facebook (now Meta). President Joe Biden’s administration has filed big tech competition suits against Apple and Amazon, plus a separate case against Google as an advertising broker. Mehta’s decision is expected to trigger a separate proceeding to determine what penalties Google will face. CNN

Scientists in Australia have recruited a team of sea lions to help map the ocean floor. Eight female sea lions outfitted with satellite-tracked body cams have so far captured about 90 hours of footage, mapping 5,000 square-kilometres of coast. The endeavour is aimed at helping researchers better understand the habitat of sea lions, whose population is rapidly declining. It also makes for the “best slow TV ever,” said researcher Simon Goldsworthy, of the South Australian Research and Development Institute. “They’re giving us a window into their world that we haven’t had before.” Mapping and understanding the seabed habitat is an expensive and laborious business, often done by towing cameras behind boats, or by leaving baited cameras underwater. The sea lions are faster, cover more ground, are untroubled by the weather and do the work for free. The Guardian

VC, PRIVATE INVESTMENT & ACQUISITIONS

California-based Muon Space raised US$56 million in Series B funding, in a round that included Toronto-based Radical Ventures. The round was led by Activate Capital, Acme Capital and existing investors Costanoa Ventures, Radical Ventures, and Congruent Ventures. Muon designs, builds and operates mission-tailored low-Earth orbit satellite constellations. Muon said the equity financing accelerates buildout of its Halo™ Platform and positions the company to scale the spectrum of capabilities it delivers to a growing customer base. The first Muon satellite block, for SNC’s Vindler constellation, is scheduled for launch in 2025. Muon Space

Vancouver-based Miru Smart Technologies, a developer of next-generation electrochromic windows, closed a $27.4-million Series A all-equity round co-led by the Business Development Bank of Canada’s investment arm, BDC Capital, and Angelo Paletta of TNG Capital Corp., with follow-on investment from Greensoil Proptech Ventures. The financing will fund investment into Miru’s dynamic glass roofs for automobiles, and support the build of new pilot lines in North America and Europe that will service the automotive and architectural markets. Electrochromic windows can change their colour or opacity when electrical voltage is applied. Miru has three demonstration plants being designed across North America and Europe, and another two are in development. Miru is led by CEO and co-founder Curtis Berlinguette, a professor of chemistry and biological engineering at the University of British Columbia. Berlinguette’s research group at UBC focuses on exploring and discovering advanced materials for high-performance, low-cost alternative energy technologies. Miru Smart Technologies

Toronto-based Walnut announced the closing of a $4.6-million funding round, led by NAventures, National Bank of Canada’s corporate venture capital arm with participation from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta. The investment will be used to expand Walnut's embedded insurance technology platform for insurers, brokers and enterprise businesses looking to participate in the future of insurance distribution. By embedding insurance products directly into the products and platforms of enterprise businesses and financial institutions, Walnut removes significant marketing costs and drives insurance distribution through partner-driven channels. BusinessWire

Toronto-based Perceptive Space emerged from operating in stealth mode, announcing it raised $3.9 million in a pre-seed funding round. The round, led r by Montreal-based Panache Ventures, includes investments from backers such as Metaplanet, 7percent Ventures, Mythos Ventures, and AIN Ventures. The investment will help the startup develop AI-powered tools, including its innovative software scheduled for launch in 2025, to better predict space weather events, such as solar flares and geomagnetic storms, which can disrupt satellite operations and terrestrial power grids. Perceptive Space aims to leverage AI and sensor fusion to analyze decades of space weather data, producing predictions up to 10 times more accurate than existing methods. Founders Today

Montreal-based Inscora raised $2 million in a round led by Luge Capital, with participation from Desjardins Capital, Accelia Capital, Inovia Capital and angel investors from the cybersecurity industry. Inscora provides automated cyber risk assessment and sales enablement solutions for cyber insurance brokers. The company’s platform empowers insurance brokers with a next-gen cyber brokerage approach, enabling them to accurately and effortlessly assess a company's cyber risk posture, support their clients to incorporate cybersecurity best practices, and dramatically accelerate the cyber insurance application process. The funds will be used to further develop Inscora's platform, expand the team and launch the product in Canada and the U.S. Inscora

Toronto-based PureFacts, a revenue management software firm providing solutions to the wealth management industry, sold a majority stake in its business to New York City-based private equity firm GrowthCurve Capital. The purchase price and equity share acquired weren’t disclosed. A statement from PureFacts announcing the deal said that Robert Madej, the founder and CEO of PureFacts, and the company's employees will retain their interest in the firm following the transaction. The Globe and Mail reported that equity investors Round13 Capital and the Canadian Business Growth Fund sold all their shares as part of the deal. PureFacts said the partnership with GrowthCurve Capital will help PureFacts ramp up new product development, embed artificial intelligence and data-driven insights into its existing revenue management solutions, and accelerate the company’s entry into new markets. Scholars International Institute of Techology

Calgary-based AbaData Inc., which provides surface land mapping geographic information systems tools and ancillary software products, announced the acquisition of Edmonton-based opLYNX, which specializes in field operations and data management solutions. AbaData said opLYNX's expertise complements AbaData’s existing suite of products, including its field operations product for field data capture and preventative maintenance, and its artificial intelligence/machine learning-driven pipeline integrity risk management software solution. AbaData said the acquisition will enhance the company’s capabilities and offerings for the energy, renewables, environmental and utilities sectors. AbaData

Montreal-based fintech company Nuvei has agreed to acquire Pay2All Instituição de Pagamento Ltda, a licensed payment institution authorized by the Central Bank of Brazil. Nuvei said the acquisition will enhance its capabilities in the Brazilian market and reinforces its commitment to the Latin American region. The payment institution license will enable Nuvei to offer comprehensive payment services in Brazil as an issuer of electronic currency. These include accepting payments, managing e-wallets and betting accounts, and participating in all of Brazil's local payment systems, including processing Pagamentos Instantâneos (“PIX”) transactions. Nuvei

Canada’s fintech industry raised a record US$7.8 billion in the first half of 2004, according to KPMG International's H1'24 Pulse of Fintech report. However, two large private equity buyouts of Montreal firms Nuvei (acquired and taken private by Boston-based Advant International for $6.3 billion) and Plusgrade (bought by New York-based General Atlantic for $1 billion) accounted for 94 percent of all investments in the sector. Global investment in fintech across venture capital, private equity, and mergers and acquisitions fell from $62.3 billion across 2,287 deals in 2023 to $51.9 billion across 2,255 deals in the first half of 2024. At a regional level, every key jurisdiction saw total fintech investment slide. In the Americas, total investment dipped from $38.5 billion to $36 billion, while in Europe, Middle East and Africa, it fell from $19.1 billion to $11.4 billion, and in Asia Pacific it dropped from $4.6 billion to $3.7 billion. KMPG said the high cost of capital and geopolitical uncertainty have put a significant damper on global fintech investment so far this year. KPMG

REPORTS & POLICIES

Polytechnic institutions’ applied research generates strong return on investment and can play a crucial role in improving Canada’s productivity

Every dollar invested in polytechnic applied research generates a return on investment from a low estimate of $8.09 to a high of $18.49, says a report by Polytechnics Canada.

As a result of applied research collaborations, 51 percent of project partners reported increased R&D capability, 48 percent achieved improved competitiveness, and 12 percent said they created new jobs, according to the report, done in collaboration with Toronto-based Prism Economics and Analysis.

Additionally, there are other social benefits that accrue such as reductions in waste or carbon emissions and improvements in public well-being that are difficult to quantify in monetary terms, but which support an estimate closer to the upper boundary.

“Applied research plays a crucial role in generating the overall return to research investments. In the absence of applied research, there are no gains in productivity nor improvements in living standards,” the report says.

More than 85 percent of applied research partners are small or mid-sized organizations – a group that under-invests compared with other jurisdictions and faces unique barriers to investing in R&D, according to the report. Among the barriers identified are a shortage of technical staff, lack of facilities, capital constraints and regulatory burden.

“Closing the innovation gap among SMEs must be an important part of a broader strategy to accelerate innovation,” the report says.

The report notes that since 2017-18, funding for applied research in Canada’s polytechnics has been inconsistent, making it difficult to sustain innovation activity and retain research staff. “In light of Canada’s productivity challenge and the particular problem of lower rates of innovation among SMEs, this approach should be reconsidered.”

Polytechnics Canada is the voice of leading research-intensive, publicly supported polytechnics and institutes of technology.

The report, which used multiple databases including a special tabulation prepared by the Natural Sciences and Engineering Research Council of Canada (NSERC) estimates the return on investment from  the applied research carried out by the 13 leading, publicly assisted polytechnics and institutes of technology represented by Polytechnics Canada. The report includes several case studies.

Polytechnics engage in some 4,000 applied research projects each year. Between 2014-15 and 2021-22, the number of projects undertaken annually more than doubled.

Roughly 85 percent of the private sector partners in these projects are SMEs and they define the purpose of the research.

Approximately 20 percent to 25 percent of total research costs are contributed by private sector partners who also, in many cases, provide additional in-kind contributions. “The applied research of the polytechnics can therefore be described as demand-driven.”

The applied research carried out by polytechnics makes a distinct and important contribution to addressing Canada’s productivity challenge among SMEs, the report says.

For many SMEs, working with private consultancies on R&D projects or using private laboratory or testing facilities is too costly.

Collaborating with universities can be impractical owing to the extended timelines, the scale required and the inability to protect intellectual property. University researchers must be free to publish results – a requirement often incompatible with the IP needs of companies, but especially SMEs. Studies show that SMEs are more likely to rely on security protocols and non-disclosure agreements than patent protection.

Polytechnics accommodate the short timelines that characterize the R&D needs of many SMEs, the report says. They are also able to work with small and micro-enterprises since scale is not a constraint.

Because polytechnics allow IP to reside with the partnering company, a major impediment to collaboration with private sector partners is avoided. The polytechnics have historically developed close connections to regional businesses.

“For all of these reasons, the polytechnics are uniquely positioned to build the R&D capacity of Canada’s SME sector and produce direct and meaningful rates of return on research investment.”

The report says the economic benefits of polytechnic collaboration with non-governmental partners is apparent in the results reported to NSERC by project partners:

• 51 percent stated that their collaboration increased their R&D capability.
• 48 percent indicated improved competitiveness.
• 26 percent gained access to new markets, including export markets.
• 21 percent reported increased productivity.
• 14 percent reported that their collaboration assisted in attracting new investment.
• 13 per cent described improved access to specialized skills or hard-to-reach workers.
• 12 per cent created new jobs.

By supporting exporters and building export capacity, applied research partnerships directly contribute both to improved export performance and increased R&D investment, the report notes.

Partner completion reports gathered by NSERC and reviewed for the report suggest intent to continue or extend collaboration with a polytechnic, many at their own cost. “This implies that applied research encourages private sector investment by addressing risk factors.”

These results illustrate in concrete terms the implications of the macro-economic estimates of the return on investment to polytechnic applied research, according to the report. Among the 30 projects profiled are research projects that:

• enabled small businesses to grow their market share, including for export.
• supported automation, extended equipment life and de-risked the adoption of new technologies and software.
• optimized environmental systems, leading to greater energy efficiency and diverting materials from landfill.
• improved environmental systems, including those affecting forests, soil, water, animals and food.
• Optimized the design and delivery of social programs.

“With additional support, polytechnics have the potential to significantly increase their contribution to Canada’s applied research ecosystem and increase the rate of innovation and productivity growth in the Canadian economy,” the report says. “The return on such an investment will be substantial.” Polytechnics Canada

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Jobs increased in environmental and clean tech sector, but women still being paid less than men: Statistics Canada

Environmental and clean technology (ECT) activity generated 327,506 employee jobs in the Canadian economy in 2022, up 1.3 percent from the previous year, surpassing pre-COVID-19 pandemic levels, according a report by Statistics Canada.

The ECT sector represented 1.6 percent of all jobs in Canada in 2022.

Almost two-thirds of ECT jobs (62.7 percent) in 2022 were found in the clean technology products subsector, which includes the production of manufactured goods (e.g. solar panels, efficient turbines, electric batteries), as well as the delivery of professional, scientific and technical services, construction services and support services.

The remaining ECT jobs (37.3 percent) were found in the environmental products subsector, which includes the production of clean electricity, biofuels and primary goods, as well as the delivery of waste management and remediation services.

Women benefitted slightly more from the increase in the ECT jobs sector form 2021 to to 2022. The number of jobs held by women increased by 1.8 percent (from 92,508 jobs in 2021 to 94,210 in 2022), while the number of jobs held by men increased by 1.1 percent (from 230,870 to 233,296) over this period.

Nevertheless, men held 71.2 percent of jobs in the ECT sector in 2022, while the remaining jobs (28.8 percent) were held by women.

More than two-thirds (67.3 percent) of the ECT sector's workforce was 25 to 54 years old, and this proportion was slightly driven by employees aged 25 to 34 and those aged 35 to 44.

Average annual compensation in the ECT sector increased year-over-year by 5.3 percent, from $96,438 in 2021 to $101,595 in 2022. This was $28,962 higher than the average annual compensation of $72,633 seen in the Canadian economy as a whole in 2022.

Among full-time workers in the ECT sector, women ($89,896) earned on average 22.8 percent less than men ($116,457) in 2022. The annual compensation gap between these women and men narrowed by 1.1 percentage points from 2010 to 2022.

Meanwhile, Canada exported $20.9 billion of environmental and clean technology products in 2022, accounting for 2.2 percent of total Canadian exports, according to a separate report by StatsCan.

The imports value of ECT products ($25.1 billion) was higher than that of exports and represented 2.6 percent of total Canadian imports. As a result, the trade deficit in ECT products in 2022 reached $4.2 billion, which is larger than the $3.7 billion annual trade deficit for the entire Canadian economy.

Canada exported $16.2 billion worth of ECT products to the United States in 2022, representing just over three-quarters (77.7 percent) of total Canadian exports of ECT products.

Environmental products accounted for more than half (53.4 percent) of the exports to the U.S., followed by manufactured goods associated with clean technologies (38.6 percent) and clean technology services (eight percent).

Europe was Canada's second-largest export partner in 2022, receiving over one-tenth ($2.2 billion) of the total ECT exports. Combined, three countries purchased just over half of these exports: the United Kingdom (18.1 percent), the Netherlands (16.6 percent) and Norway (15.5 percent).

In 2022, Canada exported $413.5 million of ECT products to China, accounting for nearly one-quarter (23.6 percent) of the exports destined for Asia, the third-largest export partner. China was Canada's largest export partner in Asia, followed by India ($348.4 million).

In 2022, Canada imported $18.4 billion worth of ECT products from the U.S., representing almost three-quarters (73.5 percent) of its total ECT product imports.

The largest share of imports consisted of manufactured goods associated with clean technologies ($9.8 billion) and biofuels and primary goods ($4.8 billion). This ranking was relatively unchanged from one year earlier.

Other major regions for the import of ECT products were Asia (13.4 percent or $3.4 billion) and Europe (eight percent or $2 billion). Canada's principal import partners in Asia were China, Japan and South Korea, while in Europe, they were Germany and the U.K. StatsCan

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Canadian Chamber of Commerce urges tariffs on imported Chinese electric vehicles

Canada’s growing electric vehicles sector is at risk of being undermined by Chinese EVs entering our market and the federal government needs to introduce a surtax on Chinese EVs, the Canadian Chamber of Commerce says.

“We’ve seen China repeatedly and systematically undercut global supply chains and markets through unfair, non-market practices. And the potential for significant cybersecurity vulnerabilities in EVs needs to be better understood and addressed by government with the close involvement of industry partners,” Matthew Holmes, the Chamber’s senior vice-president, policy and government relations, said in a statement.

The U.S. and the European Union have already taken steps to address this issue, he said.

After consulting more than 20 associations and companies that are deeply engaged on this issue, Holmes said, the Canadian Chamber of Commerce is calling on the government to align with our key international trading partners and introduce a surtax on Chinese EVs, while mitigating the risk of trade retaliation to key Canadian export sectors.

The government must also redouble its efforts to bolster long-term North American competitiveness across the EV supply chain, he said.

With Canada’s auto-manufacturing sector so highly integrated between Canada and the U.S., it is critical that we demonstrate unity ahead of the 2026 review of the Canada-U.S.-Mexico trade agreement, Holmes said.

“Economic security is a pressing concern for Canada and our key trading partners, and the Canadian Chamber feels strongly that this is a lens through which the government must evaluate all threats and opportunities in global trade. More can be done to ensure we are protecting our economic and national interests in the face of shifting and volatile global markets.”

China has been accused of using forced labour in its EV supply chain, and tariff proponents have warned that Chinese stockpiles of super-cheap critical minerals and cheaply produced cars would make it impossible to compete.

Lobbyists for Chinese EV manufacturer BYD Co. have filed notice with Canada’s federal registry that they plan to approach officials and lawmakers to advocate for BYD’s entry into the Canadian market.

The Canadian Vehicle Manufacturers’ Association has pushed strongly for alignment with U.S. policy so that the more than $40 billion in Canadian EV industry investments announced over the past four years have room to succeed.

Groups like Unifor and the Global Automakers of Canada have also expressed support for tariffs, while Clean Energy Canada, a climate and clean energy program at Simon Fraser University, has pushed back over concerns the move would cut off more affordable options for EVs.

GM Canada president Kristian Aquilina told the Canadian Press her company welcomes the potential of tariffs on Chinese EV imports, to ensure a “fair playing field.”

In May, the U.S. boosted its tariffs to 100 percent from 25 percent, while the EU has set tariffs that could run upwards of 38 percent.

In Canada, the federal government wrapped up a 30-day consultation the first week of August on whether to follow the lead of the U.S. and the EU on imposing steep tariffs to counter the volume of EV production coming out of China. Canadian Chamber of Commerce, The Canadian Press

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Ottawa cancelled the $4-billion Canada Digital Adoption Program because of budget cuts, not the program’s success

The federal government cancelled the $4-billion Canada Digital Adoption Program (CDAP) because of budget cuts and not because of the program’s success as Ottawa said at the time, The Globe and Mail reported.

The CDAP was first announced in the 2021 budget and was touted as a centrepiece of the government’s efforts to help businesses emerge stronger from the depths of the COVID-19 pandemic.

The program launched in 2022 with a suite of different funding options, including $2,400 microgrants for website creation, $15,000 grants to hire digital consultants to create business plans, and interest-free loans of up to $100,000 to support technology upgrades. It was budgeted to run for four years.

In February this year, the government abruptly ended the grant and loan portion of the program – which was the bulk of CDAP’s budget – and posted a notice on its website that the program was ending because it was a success and it was “fully subscribed.” (The microgrant stream is continuing to accept applications until September 30.)

Although the government did not say so publicly at the time, the budget was used up because it had been sharply reduced, according to internal documents obtained under access to information law.

CDAP’s budget had been slashed in late 2023 as part of broader efforts in the federal government to reduce expenses, the office of Small Business Minister Rechie Valdez confirmed.

Spokesperson Callie Franson said the part of the budget devoted to grants and advisory services had been reduced to $755 million, from $1.4 billion. And the budget for the interest-free loans was reduced to $494 million, from $2.6 billion.

Derek Froese, an information technology consultant and owner of Koala Technology in Abbotsford, B.C., was one of hundreds of digital advisers who helped small businesses navigate the program. He said the program helped the businesses he worked with and the sudden cancellation was disruptive.

“The government killed the program almost two years early with 43 hours’ notice over a long weekend,” Froese said. “The way they handled their withdrawal was irresponsible, damaging and suspicious.”

Froese obtained the government memo through an access to information request and shared it with The Globe and Mail.

CDAP was seriously flawed from the start but Ottawa didn’t take any steps to fix the program’s many problems, according to an article by Noah Zon, co-founder and principal of Springboard Policy, in Policy Options. (See “Failure to recognize and fix Canada’s Digital Adoption Program ‘risks dooming us to the same mistakes,” under Reports & Policies in the May 22, 2024 Short Report). The Globe and Mail

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Federal program to encourage equality, diversity and inclusion in research ecosystem ended without formal assessment or due notice

The federal government ended the Dimensions program – focused on equality, diversity and inclusion – without any formal explanation, assessment or due notice to Canada’s research ecosystem, even though the pilot program was successful, says a blog from Evidence for Democracy.

Dimensions was wrapped up at the end of March last year even though the pilot was successful, without informing participating institutions or being based on a publicly released formal program assessment, Farah Qaiser,  researcher at Evidence for Democracy, and Karine Coen-Sanchez, a PhD candidate at the University of Ottawa, wrote in their blog.

“How was such a high-performing program cancelled, without any formal explanation or due notice to the broader research ecosystem? Were the Tri-Agencies consulted on this decision?” they ask.

Dimensions, launched in 2018, was an initiative under the Tri-Agency EDI Action Plan. It was jointly administered by the Natural Sciences and Engineering Research Council (NSERC), the Canadian Institutes of Health Research, and the Social Sciences and Humanities Research Council – all under the leadership of the Canada Research Coordinating Committee.

Dimensions aimed to address barriers and discrimination faced by equity-deserving groups, including but not limited to, women, Indigenous Peoples, and people with disabilities, at postsecondary institutions (including CEGEPs, colleges, polytechnics and universities).

Ultimately, Dimensions aimed to drive “deeper cultural change within the research ecosystem by identifying and eliminating obstacles and inequities.”

The program involved two components:

• A charter, which could be endorsed by post-secondary institutions at any point. The charter was endorsed by 143 organizations across Canada, including post-secondary institutions, government agencies, and national organizations.
• A recognition program, which recruited a pilot cohort of 17 post-secondary institutions (out of 40 applications) for the opportunity to be “recognized for their efforts and progress made to advance EDI in the research ecosystem.” Ultimately, 10 participating institutions applied for and received Dimensions recognition in 2023.

On October 23, 2023, Kirsty Duncan, Liberal MP for Etobicoke North and previously the minister of science and sport, asked questions about the Dimensions program.

In response, the federal government in December 2023 stated that “the cost to administer the pilot program was $294,000 in 2018-19, $909,525 in 2019-20, and $806,325 annually in 2020-21, 2021-22 and 2022-23.”

“I am very disappointed that a successful program that has received international recognition has ended,” said Duncan, an EDI advocate and who was minister of science and sport when the pilot project was launched.

“Millennia of patriarchy and centuries of colonialism and slavery cast long shadows. This is not the time to stop, but rather to continue, and fix well-known, long-standing inequality,” she said in a statement to University Affairs. (See item under Reports & Policies in March 6, 2024 Short Report).

In a statement, NSERC said the project “received only temporary funding. Given current budgetary constraints, it would be extraordinarily difficult to extend pilot programs with no corresponding budget.” 

A program evaluation of Dimensions was conducted by Toronto-based Cathexis Consulting, in collaboration with the NSERC Evaluation Division. The evaluation has not been released, but the federal government’s response to Duncan noted that:

Dimensions raised the profile of equity, diversity, and inclusion (EDI) within participating post- secondary institutions and helped to consolidate EDI-related activities.

It takes time for institutional culture shifts, but EDI-related changes have occurred within participating institutions, including:

• raising the profile of EDA
• institutions creating dedicated EDI positions, offices, and committees
• institutions changed hiring practices
• supporting the increased use of EDI data to make informed decisions
• some institutions improved physical spaces.

The  institutional representatives whose institutions applied for recognition spoke about the value of a Dimensions recognition and said that it:

• validates institutional commitment to EDI principles
• provides accountability for institutions’ EDI efforts
• provides an opportunity to recognize the institution’s EDI efforts
• motivates institutions and reinforces their commitment to work towards the next stage of recognition
• it may enhance institutions’ reputations.

The government’s response demonstrates that Dimensions helped to move the needle on progress related to equity, diversity and inclusion in the Canadian research ecosystem, Quaiser and Cohen-Sanchez said.

Beyond this response, stakeholders have noted that Dimensions helped to foster a “community of practice,” and was a “lever that motivated us to act.” Notably, the Canada Research Coordinating Committee’s website still continues to list Dimensions as one of their three key initiatives.

The cancellation of Dimensions sends a larger message: that addressing social inequalities has an expiration date, Quaiser and Cohen-Sanchez said. “This setback is a blow to crucial efforts to address systemic barriers and advance equity and inclusion in the Canadian research community.”

The authors urged members of the research ecosystem and other Canadians to advocate for the reinstatement of the Dimensions program, whether as a part of the government or hosted externally, “as a cost-effective way of securing a sustainable research and innovation ecosystem that delivers for all Canadians.” Evidence for Democracy

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Government restrictions on developing open AI models aren’t yet warranted but may be in the future: U.S. report     

Given the present state of open artificial intelligence models today, current evidence isn’t sufficient to determine what restrictions are warranted for their development or that restrictions will never be appropriate in the future, according to a report by the U.S. National Telecommunications and Information Administration (NTIA).

Government should actively monitor a portfolio of risks that could arise from dual-use foundation models [which can be  can be adapted for both beneficial and potentially harmful applications] with widely available model weights, and take steps to ensure government is prepared to act if heightened risks emerge, the report says.

Model weights are the learnable parameter of AI models; they’re essentially the building blocks of a language model’s intelligence.

Many developers provide limited or no public access to the inner workings of their advanced AI models, including their weights. But some developers such as Meta, Google, Microsoft, OpenAI and others have released models with weights that are widely available (ChatGPT is an open AI model, for example) and can be downloaded by the public through the internet or other mechanisms.

These open AI models – dual-use models with widely available model weights – offer a spectrum of benefits, including diversifying and expanding the array of actors that participate in AI research and development, the report says. They also enable users to leverage models without sharing data with third parties, increasing confidentiality and data protection.

However, the report notes that making the weights of certain AI foundation models widely available could also engender harms and risks to national security, equity, safety, privacy or civil rights, through misuse, failures of effective oversight, or lack of clear accountability mechanisms.

              The report’s recommends that government:

1. Collect evidence through:

• Encouraging standards and – if appropriate – compelling audits, disclosures and transparency for dual-use foundation models (including those without widely available model weights).

            To the extent reasonable, the federal government should standardize testing and auditing methods, which may vary based on the capabilities, limitations and contexts of use of particular models and systems. The federal government should establish criteria to define the set of dual-use foundation models that should undergo pre-release testing before weights are made widely available, with the results of such testing made publicly available to the extent possible.

• Supporting and conducting research into the safety, security, and trustworthiness of foundation models and high-risk models, as well as their downstream uses.
• Supporting external research into the present and future capabilities and limitations of specific dual-use foundation models and risk mitigations.
• Developing and maintaining a set of risk portfolios, indicators, and thresholds.

The U.S. government should identify specific risks, and then, for each identified risk, maintain one or more risk indicators. These can be technical indicators, such as multi-modal capabilities or the ability of AI agents to manipulate the external environment, or measurements of confabulation or racial bias.

They could also be societal indicators, such as the breadth of adoption of a particular AI system or the availability of certain physical materials which could be used in conjunction with AI to create a threat.

It is important that the government maintain robust leading indicators of model capabilities, because harms from open models are difficult to undo once the weights are released,” the report says.

To actively monitor the open-weight foundation model ecosystem, the federal government should maintain a portfolio of risk cases, including unlikely risks and sociotechnical risks, that might arise from future open foundation models.

2. Evaluate evidence through:

• Assessing the lag time – including the time required for new policy – between developers introducing capabilities in leading proprietary models, and those same capabilities being made available in open models.

Once a capability appears in an open-weight model, it may be impossible to wholly remove that capability from the open-weight foundation model ecosystem, the report notes. Therefore, restrictions on open-weight models can be most effective only before a particular capability is released in an open weight model.

• Developing benchmarks and definitions for monitoring and potential action if deemed appropriate
• Maintaining and bolstering federal government expert capabilities in technical, legal, social science and policy domains to support the evaluation of evidence.

3. Act on evaluations through actions such as:

• Restrictions on access to models.

At one end of this category is complete restriction of a model from being publicly distributed, including model weights and API access. A less extreme step would involve restricting the open sharing of model weights and allowing public access only to hosted models.

• Other risk mitigation measures.

These mitigations will likely depend on the specific risk. For example, in cases where dual-use foundation models with widely available model weights enable creation of dangerous physical objects, restrictions on physical materials may be warranted.

4. Keep open the possibility of additional government action.

 While actively monitoring risks, the government should also support openness in ways that enhance its benefits. This should include incentivizing social, technical, economic and policy research on how to ensure open foundation models promote human well-being.

The report says these recommendations support the ability of developers electing to make model weights widely available at this time, while bolstering the government’s ability to monitor whether future models pose risks that indicate it may be appropriate to limit model weight availability or apply other appropriate risk mitigation measures.

The report provides relatively little insight to future releases of dual-use foundation models with widely available model weights. However, it says the recommended action to monitor risks would help the government determine the capabilities of future dual-use foundation models with widely available model weights.

This dynamic may persist without changes in research and monitoring capabilities, the report says. Any evidence of risks that would justify possible policy interventions to restrict the availability of model weights might arise only after AI models with those capabilities, closed or open, have been developed or released.

“This report outlines a cautious yet optimistic path that follows longstanding U.S. government policies supporting widespread access to digital technologies and their benefits, while nonetheless preparing for the potential future development of models for which an alternate approach may be justified.” NTIA

THE GRAPEVINE – News about people, institutions and communities

David Vigneault, who stepped down after seven years as director of the Canadian Security Intelligence Service, is joining Salt Lake City, Utah-based security firm Strider Technologies as the managing director of its global intelligence unit. Vigneault had come under pressure about the spy agency's handling of foreign interference in Canada and said he was leaving public service when he retired. At Strider, which sells software and services to protect firms from state-sponsored threats, Vigneault will work on engaging private and public sector organizations and advance research and development, the company said. Reuters

Toronto-based Kepler Communications, which is building internet connectivity for space, appointed Dan Budlovsky as its new chief financial officer. Before joining Kepler, Budlovsky held executive roles at Wattpad and Rakuten Kobo. He specializes in leading finance teams at technology startup and scale-up organizations, critically evaluating and transitioning business models in hyper-growth environments, managing mergers and acquisitions activities, and leading international expansions.  Kepler is focused on scaling operations to deploy the first tranche of its next-generation satellite constellation and expects to offer initial optical services in 2025. Kepler

Veteran banker Stephen Stewart, who was most recently managing director, Mergers & Acqiuisitions (M&A) at TD Securities, jointed Barclays PLC as head of M&A Execution for Canada. Stewart is based in Toronto, and dually reports to Ryan Voegeli, head of Investment Banking for Canada, and Dan Grabos, Head of Americas M&A. Stewart is responsible for the leadership of the Canadian M&A Investment Banking business. Barclays

John Schulman, one of the co-founders of artificial intelligence company OpenAI, has left the ChatGPT maker for rival Anthropic. "This choice stems from my desire to deepen my focus on AI alignment, and to start a new chapter of my career where I can return to hands-on technical work," Schulman said in his X post. OpenAI's president and co-founder Greg Brockman is taking a sabbatical through the end of the year, Brockman said in a X post. Peter Deng, a product manager who joined OpenAI last year, has also exited the company. Aleksander Madry, the company’s AI safety leader, was reassigned to another role in July. Ilya Sutskever, another one of OpenAI's co-founders and chief scientist who once led OpenAI’s “Superalignment” safety team, left the company in May. Andrej Karpathy, who was also one of the AI firm's founding members left OpenAI in February and started an AI-integrated education platform in July. Reuters

Western University unveiled the Michael Newark Digitized Tornado Archive, the result of years of dedicated efforts to preserve and make accessible Canada’s rich history of tornado data, most originally compiled by the archive’s namesake Michael Newark. A retired Environment Canada meteorologist, Newark created the country’s first national tornado database, a treasure trove of information that spanned decades of meticulous record-keeping and dates back to 1792. Newark began his work on the tornado database in response to a lack of comprehensive information on tornadoes in Canada. Environment Canada wouldn’t part with the physical archives, but agreed to have them digitized so Western Libraries, in collaboration with the Northern Tornadoes Project, could have an online archive. The digitized files are openly available for anyone to access on a platform that’s easy for users to navigate. Western University

Assiniboine College in Winnipeg and Siemens Canada are partnering to launch a new Mechatronics Engineering Technology (Robotics and Automation) program in fall 2025. The program will offer students access to the internationally recognized Siemens Mechatronics Systems Certification Program. The program is an international industry standard comprehensive skills certification in mechatronics systems offered with partner schools worldwide. Assiniboine’s Mechatronics program will equip students with cutting-edge skills in an interdisciplinary field that combines mechanical engineering, electronics, computing and automation. Applications for the Mechatronics program are now open. Assiniboine College received a $500,000 donation from the Anthony Matlashewski Charitable Foundation to support the college’s new program in purchasing teaching robots and equipment. Assiniboine College

McMaster University launched its new five-year Strategic Research Plan, Transforming our region, impacting our world. The plan, designed to advance the university’s collective research strengths and maximize the impact – locally and globally – of its research outcomes for the benefit of society, became effective July 1, 2024. Andy Knights, vice-president, research (acting), said the plan, developed in consultation with all faculties and key stakeholders over the last year, builds on McMaster’s goal to positively transform lives through excellence and inclusivity. “The plan captures our expertise in fundamental and mission-driven research, promotes collaborations across disciplines, sectors and borders, and aligns with the university’s broader strategic ambitions,” he said. “Its intent is to empower our research community in their efforts to drive solutions with impact through partnerships and programs that advance our collective output to address complex global challenges.” Knights said the plan also outlines operational priorities to gauge success and ensure essential institutional support. McMaster University

Victoria, B.C.-based W Venture, an organization focused on supporting female entrepreneurs, has launched a new program to help more women-led tech companies in B.C. to scale in a rapid and sustainable way. Named W Venture Growth, the one-year program begins September 23, 2024, and offers access to resources, mentorship and a community of female entrepreneurs. Twenty startups will receive guidance from seasoned CEOs, partake in monthly accountability groups to keep their ventures on track, and learn from quarterly strategy sessions for key priorities and market strategies. The program is now accepting online applications. W Venture Growth is made possible thanks to funding support from the National Research Council of Canada Industrial Research Assistance Program. Only 19.6 percent of SMEs in Canada are owned by women, and just one in five scale-ups are women-owned. AccessWire

The Government of Alberta is sponsoring the University of Calgary’s School of Public Policy to host Canada’s Productivity Summit on October 16 and 17 at the BMO Centre in Calgary. The two-day summit will bring together academia, business leaders, policymakers, leading commentators and influential voices with a range of insights and viewpoints to shine a light on Canada’s productivity challenge and shape solutions. While the provincial government said Alberta has the highest level of productivity in Canada, steps need to be taken to ensure that productivity continues to increase. On a national level, Canada’s productivity level has fallen behind comparator nations and is continuing to fall, putting a strain on investment, wages and affordability. Delaying action risks undermining Canadians’ living standards, place at the forefront of innovation, and capacity to provide vital public services and infrastructure, the Alberta government said. Govt. of Alberta

Livestock Gentec, an Alberta Innovates centre based at the University of Alberta, is tackling one of Canadian beef producers’ most problematic obstacles: paying for DNA testing to improve the breeding efficiency of their herds. Alberta-based Results Driven Agriculture Research, through the Sustainable Canadian Agricultural Partnership funded by the governments of Alberta and Canada, recently provided $2.2 million to Gentec for a project to cover 50 percent of the cost for producers who sign up for genotyping. Over the next four years, Gentec will test the DNA of 40,000 cattle and provide producers with clear reports that rank the animals on desirable traits such as fertility, lifetime productivity, feed efficiency and carcass quality. This will allow producers to breed cattle that eat less and produce less methane, reducing greenhouse gas emissions while maximizing profits and sustainability. Producers will report their results to Gentec, allowing researchers to improve the accuracy of their genomic tools to support the beef industry into the future. University of Alberta

A team of researchers from the University of Calgary and the University of British Columbia is investigating hydrogen as an alternative for gas burners at both the industrial and household levels. The team includes Dr. Leo Fang, PhD, and Dr. Mustafa Mohamad, PhD (co-principal investigator on on the project),  from UCalgary’s Schulich School of Engineering, along with Dr. Sina Kheirkhah, PhD, from the UBC. Their research received $1.2 million from Alberta Innovates’ Hydrogen Centre of Excellence and CONVERGENT Science for studying hydrogen flashback. This is when burner flames propagate backward where the fuel is being injected or mixed, causing potential safety hazards. The Schulich professors also received $300,000 from the Alberta Innovates Advance Program for exploring hydrogen combustion instabilities.  Using hydrogen instead of natural gas would reduce carbon emissions associated with combustion, Fang said. However, a challenge with hydrogen lies in creating the right mixture condition of hydrogen and air for safe use. Fang’s team will be seeking solutions to resolve issues such as this and the “flashback phenomenon.” His team has also received funding from the Natural Sciences and Engineering Research Council of Canada (NSERC) Advantage Program and NSERC Discovery to further their research. UCalgary

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