Amid Criticism, Industry Canada Transforms Focus of Technologies Program

To support innovation and technology with increased accessibility for small-and medium-sized firms, Canada's Minister of Industry, David Emerson, announced a new program that will replace Technology Partnerships Canada (TPC).

Minister Emerson said in a press release that the new program will be accessible to more industries, tightly focused on transformative technologies, and more transparent to taxpayers. The goal of TPC is to ensure leading-edge industrial research continues in Canada and that Canadian firms remain competitive in the global economy.

Created in 1996, TPC has been an operating agency of Industry Canada, providing financial support for strategic R&D and demonstration projects including Environmental Technologies, Aerospace and Defense, and Enabling Technologies. However, since its inception, the program has been riddled with criticism. Critics have accused the program of abysmal repayment rates on its investments, lack of clarity on eligibility, and favoritism toward large Liberal party-supporting corporations, according to an article in The Globe and Mail. In addition, a recent scandal has surfaced over investment money being used by clients to pay illegal commissions to lobbyists, the article reports.

Minister Emerson, who has acknowledged accountability issues with the program, recently unveiled a status report on audits into the compliance of some recipient companies. A routine audit by Industry Canada uncovered evidence of company non-compliance with its agreement, and a subsequent forensic audit found four companies to be in violation of their agreements with the government, according to a press release. Minister Emerson reiterated that the new program will seek outside advice to ensure its pledge of "performance at the highest standard of governance and due diligence."

Under the Transformative Technologies Program, the federal government will share with Canadian industry the costs of innovation and technology adoption projects. Rather than targeting selected technology sectors as TPC did, the new program will be open to all Canadian businesses. Specific strategies to support the aerospace and defense strategies, however, will proceed at their current funding levels. Details for the new program are expected in the coming year.

More information is available at: http://tpc-ptc.ic.gc.ca/epic/internet/intpc-ptc.nsf/en/Home