Canada lags in race to build autonomous vehicles: report

On-road testing, looser rules urged by panel

TORONTO • Canada is lagging behind when it comes to autonomous-vehicle technology development and adoption and must fast-track policy to spur innovation that could potentially add thousands of high-skilled jobs to the economy, according to a report released Thursday.

The report by the Ottawabased Information and Communications Technology Council (ICTC), titled, Autonomous Vehicles and the Future of Work in Canada, says there needs to be greater integration between policy-makers, industry and academic experts in order to facilitate investment in autonomous-vehicle technology in Canada “at a rate closer to our international competitors.”

“While Canada has pioneered some important technological developments in the past ... in comparison to its international counterparts, Canada is currently lagging behind in AV technology development and adoption,” reads the report, which was funded by the Canadian government’s sectoral initiatives program.

“With moderate pace of technological development among Canada’s (small and medium-sized enterprises) coupled with the slow movement of discussion on the topic, much work is needed to get Canada near the level of the world’s key AV players.”

The report estimates that Canada’s connected and autonomous vehicle industries could see a growth of 34,700 jobs by 2021 — more than double the average growth rate seen across the Canadian economy. By 2035, the global market for autonomous vehicles is expected to reach $77 billion.

“Given this increased demand, along with the growth and implementation of connected and autonomous vehicle technology, it is crucial that we take steps now in order to ensure that Canada remains competitive in this quickly developing and revolutionary field,” the report says.

Namir Anani, president and chief executive of the ICTC, said while Canada has made strides in the past year with new autonomousvehicle testing, there are many areas where technology and policy could be fasttracked to spur growth in the field and potentially attract direct foreign investment. For example, Anani said Canada should fast-track spectrum auctions for fifthgeneration mobile technology — something he says is a key “lifeline” in enabling innovation for autonomous vehicles.

Canada could also accelerate the deployment of a regulatory framework when it comes to testing autonomous vehicles. In 2016 Ontario was the first province to allow onroad testing of automated vehicles, Anani said.

The Ontario government announced this week it is proposing to change the rules of its 10-year automated-vehicle pilot project to allow for driverless testing. Currently, the testing of fully autonomous vehicles is only allowed with a driver behind the wheel, but the government is seeking public comment on a proposal to scrap that requirement.

The proposed automatedvehicle changes also include allowing members of the public to drive vehicles that are less than fully automated — capable of driving automatically in limited scenarios — once they are available for purchase.

“Fast-tracking is going to be important because Canada’s terrain, geography and also climate is different than other countries,” Anani said. “We need to pave the way for testing in Canada.”

In November, Ontario opened a new testing centre in Stratford, as part of its $80-million autonomousvehicle innovation network, where researchers and companies can test their technology in a range of real-life scenarios. That project has supported the development of connected and autonomous-vehicle technology within Ontario, says Raed Kadri, the centre’s director of automotive technology and mobility innovation.

“It’s really about helping support the development of the next generation of these technologies that will enable vehicles of the future, but also helping to make sure that Ontario SMEs continue to be the suppliers of these technologies,” Kadri said.

The report noted that while Ontario leads the way with automated-vehicle testing, notable plans are being put forth in B.C. and Alberta.

The Senate’s Transportation and Communications committee is currently studying the issues that need to be addressed so Canada can bring driverless cars to the roads. In late October, the committee had conducted witness panels for its report, which has yet to be released.

“In essence, it is a growing market globally and we need to position ourselves as a country — quite rapidly — to take advantage in this arena,” Anani said.

The report makes five recommendations, including that policy-makers work with industry experts and other groups to further research about autonomous vehicles and smart city development. The report also recommends that policymakers, in combination with experts, should work on furthering research. companies, he said. “Subsidizing corner grocery stores, restaurants and retail stores is not how you create a wealthier society,” he said, with the enthusiasm of an economist who does not need to get re-elected.

Governments of all stripes choose degrees of equity over efficiency — regional development subsidies generally result in lower overall income, as do policies aimed at sustaining agricultural production.

But Lester’s study suggests that in 2014-15, business subsidies cost half of the money raised in corporate income tax revenues — and were largely ineffectual.

The case is there to argue for a recalibration.

Lester’s paper should be read widely and form the bulwark of a general-interest revolt against the special interests in the aerospace, agriculture, auto, film production and small-business lobbies that will fight to preserve subsidies that provide no net benefit for taxpayers.