Introduction

Innovation and Western Economic Diversification Canada

Since the inception of the Department, WD has played a leading role in promoting innovation in Western Canada. For example, from 1988 to 1999, WD invested $445 million in 2,590 innovation projects. ¹ Over the past three fiscal years (2001, 2002, and 2003), WD has approved almost $200 million more in Grant and Contribution contributions related to innovation priorities with additional funding provided through Western Economic Partnership Agreements (WEPAs). ²

Despite these significant resource commitments, relatively few people fully realize the extensive role that WD has played in promoting innovation in Western Canada. Some of the factors that make it difficult for even a knowledgeable observer to become familiar with the broad impact of WD on innovation activities include:

• Rather than delivering one major program, the activities of WD related to innovation are implemented through a wide variety of programs and initiatives such as Western Economic Partnership Agreements, the Western Diversification Program, Strategic Initiatives and Special Projects, the First Jobs in Science and Technology Program, the International Trade Personnel Program, the Canada Foundation for Innovation Support Program, the Conferences Sponsorship Program, the Innovation and Community Investment Program, the Loan Investment Fund Program, and the Western Canada Business Service Network.
  
• The role of WD goes beyond the financial assistance that is provided. For example, WD staff members work directly with other organizations to encourage and facilitate the development of projects, initiatives, and industry champions, to enhance the coordination and alignment of innovation priorities between the various government, industry, community and academic players, and to facilitate access to federal science and technology infrastructure programs.
  
• Rather than focussing on only one element of the innovation system, the activities of WD are targeted at a full spectrum of innovation drivers including the R&D infrastructure, partnerships/linkages between the various components of the innovation system, funding for R&D, technology transfer, financing of innovation companies, support for commercialization, skills development, industry research, and community development.
  
• The activities have focussed on a wide range of sectors and clusters (e.g. biotechnology, genomics, proteomics, fuel cells, design engineering, climate change, syncrotron, nanotechnology, geomatics, telehealth, new media, oceans, e-commerce, and value added manufacturing) as well as SMEs and communities.
  
• The activities have been implemented across four provinces and over an extended period of time.

As a result, while most members of the innovation system are familiar with at least some of the activities of WD, few are in a position to fully appreciate the extent to which WD has promoted innovation in Western Canada.

¹ Western Economic Diversification Canada, Performance Report, For the Period Ending March 31, 2002

² Western Economic Diversification Canada, 2002-2003 Estimates, Part III - Report on Plans and Priorities, pg. 8