Overhauls coming to grant programs

The federal government is boosting funding for research and innovation while dramatically reorganizing how it doles out money to industry and academic institutions, reducing the number of grant programs from 92 to 35.

In its 2018 budget released Tuesday, it also said it was mulling ways to “simplify” the 22 grant programs administered by Canada’s five regional development agencies — a move that is likely to cause a rift between local agencies and the feds.

The changes come as part of broader efforts by the Trudeau government to spur innovation. The 2018 budget layers new, albeit smaller, funding increases on top of the massive spending on innovation introduced in 2016. The moves announced in the budget are said to be the most significant streamlining in recent memory.

The 17 programs administered by the National Research Council of Canada will be reduced to around five programs; six programs under the Natural Sciences and Engineering Research Council of Canada will be consolidated into one “collaborative research and development” program.

The nine grant programs administered by Natural Resources Canada, including the Forest Research Institutes Initiative and the Energy Innovation Program, will be consolidated into three separate programs focused on forestry, energy and mining.

The government also said it was looking to reorganize the programs offered under Canada’s regional agencies to focus more directly on “helping firms scale up, develop new markets and expand.” The country’s five regional development agencies are locally governed and autonomous from Ottawa, unlike federal bodies that allocate subsidies for businesses.

Private firms have long complained that applying for funds is a tough process, largely due to a confusing thicket of grant programs, advisory services and financial supports. Last month, the government set up its Innovate Canada online portal, which is meant to funnel all funding applicants through a single, centralized service.

The federal government’s program reorganization comes alongside a spending boost. Funding for academic institutions for researchrelated activities is set to rise $340 million in fiscal year 2018-19, for a total increase of $3.2 billion, or 25 per cent, from current levels. Direct research funding, excluding program costs, is currently around $3.1 billion every year.

Direct funding to industry for innovation is set to rise $434 million in 2018-19, for a total increase of $2.5 billion over five years.