Introduction

1.1 Background

Western Economic Diversification Canada (WD) introduced the ITPP and FJST business development programs in 1995 and 1997 respectively to provide small and medium-sized enterprises (SMEs) and industry associations the opportunity to hire staff with needed expertise that they otherwise could not afford.

The International Trade Personnel Program (ITPP) addresses two important concerns in the Canadian economy:  enhancing competitiveness in the global marketplace and facilitating youth employment.  Specifically, the Program objectives are as follows:

The Program will assist small and medium sized western Canadian firms to improve their international competitiveness;

Over time, the Program will also assist western Canadian business by increasing the pool of qualified experienced trade professionals.

For many SMEs, having the right personnel skills to enable the companies to move from local to global markets is a major obstacle.  Through the Program, companies receive support for salary costs to hire unemployed or underemployed graduates as incremental staff.  Assistance through April 2002 was based on a maximum of $37,500 per graduate for a three-year period.  Beginning in fiscal 2002/03, the program was changed so that the maximum assistance is $20,000 per graduate for one year.

The First Jobs in Science and Technology Program (FJST) is intended to help SMEs become more competitive in the national and international economy, and to offer employment to recent graduates.  The Program objectives are as follows:

To provide SMEs with the necessary assistance to enhance their competitive positions through the development and adoption of productivity enhancing technologies;

To provide science, technology and engineering graduates with their first, entrepreneurial work experience in a SME.  Over time, it is anticipated that this will lead to the development of a workforce of science, technology and engineering professionals who have the entrepreneurial skills necessary to start and run their own businesses.

The Program is focused on “new economy” firms, concentrating on a limited number of highly competitive markets where rival firms have state of the art technology.  FJST helps the firms capitalize on these business opportunities, while offering career opportunities in the technology industry to youth.  WD funding assistance to firms is the same as that offered under ITPP.