Ministerial transition book 2023—Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

Table of contents

Welcome Minister

Congratulations on your appointment and welcome as the new Minister of Tourism.

As Minister, you have an important responsibility to support and champion the interests of Canadian tourism businesses and the communities they support, to position Canada for success in an ever-changing global economy, with a thriving and growing tourism sector. You are leading the work that fuels Canadians and Canadian businesses that make up and depend on the tourism industry, an important part of the Government's work to position Canada and the Canadian economy to be more resilient, digitally-enabled, and green.

Here to support your mandate are the Department of Innovation, Science and Economic Development (ISED) and Destination Canada, a Crown corporation that helps the Canadian tourism industry reach domestic and international markets. Both organizations are working together to help build and sustain a vibrant tourism industry and position Canada as a desirable tourism destination. Given the horizontal nature of your tourism mandate, the ISED team will also assist you in building and maintaining strong connections with other federal departments and agencies, such as the Regional Development Agencies (RDAs), Transport Canada, Parks Canada, Canadian Heritage, and the Canada Border Services Agency.

As Deputy Minister, I will assist in providing integrated lines of advice from across the Portfolio. ISED and the Portfolio support four ministers, who jointly work to support economic growth across Canada, for all Canadians and Canadian firms.

The Government's support for the tourism sector has been consistent and robust throughout the COVID-19 pandemic, which felt the full impact of public health measures and border closures. As of April 2022, pandemic supports for the sector had totalled $23 billion, in the form of rent and salary subsidies and other financial supports. In Budget 2022, the Government noted that it was time to turn the corner, and directed the Minister of Tourism to work with the tourism industry, provincial and territorial counterparts, and Indigenous tourism operators to develop a new post-pandemic Federal Tourism Growth Strategy that would plot a course for growth, investment, and stability for the sector for years to come.

There followed an extensive process of engagement from May to August 2022, in which the Department heard from stakeholders on challenges and opportunities facing the tourism sector.  It is based on this engagement that a new Federal Tourism Growth Strategy was developed, a Strategy that was launched on July 4, 2023. As you will see in the following materials, the Strategy sets out a whole-of-government approach built on a suite of priorities to guide partnerships with stakeholders and other governments in order to address major challenges and grow the visitor economy.  Notably, the Strategy boasts significant new investments announced in Budgets 2022 and 2023.

The following package is designed to provide you with an overview of ISED and the Portfolio's organizational structure and the diverse work related to your mandate. We look forward to briefing you on specific issues and files concerning programming to support the tourism industry in the coming days and weeks.

ISED and the Portfolio wish you the very best as you embark on your role, and stand ready to help advance the Government's mandate and support your vision for a prosperous future for Canada's tourism sector.

As your Deputy Head, I welcome you to your new role and offer the full support of the Department and the entire Portfolio.

Catherine Blewett

Deputy Minister

Getting Started: The fundamentals

Purpose

Overview

Provide an overview of the mandate and structure of the Portfolio

Partners

Provide a brief overview of portfolio heads and mandates

Mandate of ISED and the Portfolio

Raison d'être

Innovation, Science and Economic Development Canada (ISED) and the Portfolio work with Canadians in all areas of the economy and in all parts of the country to improve conditions for investment, enhance Canada's innovation performance, increase Canada's share of global trade, and build a fair, efficient, and competitive marketplace.

Mandate

ISED is responsible for the government's micro-economic policy agenda, aiming to foster a growing, competitive, and knowledge-based Canadian economy. It helps create the conditions for Canadian businesses to grow, innovate, and expand so they can create jobs and wealth for Canadians. It also supports scientific research and the integration of scientific considerations into investment and policy choices, and helps small businesses grow through trade and innovation and promotes increased tourism in Canada.

Leadership

ISED is the federal institution that forms the core of the Innovation, Science and Economic Development Portfolio.

Structure of the ISED Portfolio

Department, agencies

Ministers are accountable to the Prime Minister and Parliament for all organizations in their portfolio, including policy, program, and management issues
Department

  • Innovation, Science and Economic Development (supporting all ISED Ministers)

Agencies

  • Statistics Canada
  • Canadian Space Agency

Outside Portfolio:

  • Regional development agencies (under separate ministers)
  • Atlantic Canada Opportunities Agency
  • Canada Economic Development for Quebec Regions
  • Federal Economic Development Agency for Northern Ontario
  • Federal Economic Development Agency for Southern Ontario
  • Prairies Economic Development Canada
  • Pacific Economic Development Canada
  • Canadian Northern Economic Development Agency

Crown Corporations

Independent; Chairperson of Board reports to Minister

  • Canada Innovation Corporation
  • Destination Canada
  • Standards Council of Canada
  • Business Development Bank of Canada

Councils

Specialized; Deputy Head reports to Minister

  • Natural Sciences and Engineering Research Council of Canada
  • National Research Council Canada
  • Social Sciences and Humanities Research Council of Canada

Quasi-judicial tribunals

Make decisions and hear appeals at arm's length from the government following quasi-judicial processes

  • Competition Tribunal
  • Copyright Board Canada

Quasi-judicial tribunal administered through other portfolio

Organization responsible for the implementation of objectives set out in the Telecommunications Act.

  • Canadian Radio-television and Telecommunications Commission

Associated organizations

Government selects board member(s); in whole or part funded by ISED agreement

  • Canada Foundation for Innovation
  • Council of Canadian Academies
  • Pierre Elliott Trudeau Foundation
  • Sustainable Development Technology Canada
  • Genome Canada*

*Minister does not appoint board members

Biographies of the ISED Deputy Ministers

Simon Kennedy
Deputy Minister, Innovation, Science and Economic Development Canada

Simon Kennedy was appointed Deputy Minister of Innovation, Science and Economic Development in September 2019. Previously, Simon had served as Deputy Minister of Health. Mr. Kennedy began his career with the public service in 1990 and has served in a variety of senior roles in seven different organizations, including in six deputy minister-level appointments at the Privy Council Office, Industry Canada (as ISED was formerly known), Foreign Affairs and International Trade Canada, Health Canada, and now ISED.

Catherine Blewett
Deputy Minister, Economic Development, Innovation Science and Economic Development Canada

Catherine Blewett was appointed Deputy Minister of Economic Development in June 2022. Previously, Catherine served as the Chief Strategic Engagement Officer at the Ocean Frontier Institute. Ms. Blewett has held various senior leadership roles, including Deputy Clerk of the Privy Council, Associate Secretary to the Cabinet at the Privy Council Office, and Deputy Minister of Fisheries and Oceans. She is also a former Clerk of the Executive Council of Nova Scotia.

Francis Bilodeau
Associate Deputy Minister, Innovation, Science and Economic Development Canada

Francis Bilodeau was appointed Associate Deputy Minister of Innovation, Science and Economic Development in January 2022. Previously, Francis was the Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, at Innovation, Science and Economic Development Canada. Mr. Bilodeau held a variety of senior leadership roles, including as the Chief Information Officer of the Government of Canada and assistant deputy minister roles at the Treasury Board of Canada Secretariat and the Privy Council Office.

Overview of activities in support of the tourism sector

Tourism is an umbrella sector comprised of five industries

$105.1B Revenues in 2019

Transportation

Largest industry share of tourism GDP (26.4%)

Revenues: $40.1B

Jobs: 82,275

Other industries

Large number of firms in a broad range of industries (e.g., retail, fuel sales, publishing)

Revenues: $15.5B

Jobs: 128,575

Accommodation

Short-term rentals are disrupting the industry

Revenues: $16.0B

Jobs: 142,850

Food and beverage

Greatest share of jobs (33%) in sector

Revenues: $16.2B

Jobs: 230,050

Recreation and entertainment / travel services

Catalyst for tourism / Significantly disrupted by digital economy

Revenues: $17.2B

Jobs: 111,675

Source: Statistics Canada, National Tourism Indicators, 2019

All levels of government have a role

Federal:

  • Destination Canada – Destination marketing (country tourism brand)
  • Canadian Heritage and Parks Canada – own/operate tourism assets (national parks, museums) and fund festivals & events
  • Transport Canada - Air policy
  • Immigration, Refugees and Citizenship Canada - Visa policy
  • Regional Development Agencies – Investment in tourism product
  • Other (infrastructure, border policy, etc.)

Provincial/territorial:

  • Destination marketing (provincial/territorial brands)
  • Product and destination development
  • Hospitality and tourism education
  • Regulations (accommodations; travel agencies, etc.)

Municipal:

  • Destination marketing (city brand)
  • Festivals, business conventions, and events

Current mechanisms for intra- and inter-governmental collaboration include chairing the Ministerial Tourism Growth Council, which is a key initiative of the new Federal Tourism Growth Strategy, and the Canadian Council of Tourism Ministers, which you currently co-chair with Newfoundland and Labrador's Minister of Tourism, Culture, Arts and Recreation.

Program levers for tourism support

Tourism Branch

Develops tourism policy and guides implementation of federal tourism strategies, such as the new Federal Tourism Growth Strategy, launched in July 2023.

Oversees horizontal coordination between federal departments and other levels of government.

Works with key industry stakeholders, including:

  • Tourism Industry Association of Canada
  • Tourism HR Canada
  • Indigenous Tourism Association of Canada
  • Restaurants Canada
  • Hotel Association of Canada

Destination Canada (Crown corporation)

Mandate (as per the Canadian Tourism Commission Act):

  • Sustain a vibrant and profitable tourism industry;
  • Market Canada as a desirable tourism destination;
  • Support a cooperative relationship between the private sector and the Government of Canada, and the provinces and territories with respect to Canadian tourism; and
  • Provide information on the Canadian tourism sector to stakeholders.

Traditionally focused on marketing, but mandate does not prevent broader business lines (e.g., destination development).

Focused on 9 high-yielding markets: US, UK, France, Germany, Australia, China, South Korea, Mexico, and Japan.

Regional Development Agencies

Now formally outside the Portfolio and led by separate ministers, the Regional Development Agencies are responsible for the delivery of the Tourism Relief Fund and the forthcoming Tourism Growth Program.

Supporting the economic recovery of the tourism sector

Liquidity

  • Through April 2022, the sector received over $23B through core liquidity programs – e.g., wage and rent subsidies, and lockdown support.
  • Highly Affected Sectors Credit Availability Program (HASCAP) to help the hardest-hit sectors, including tourism.
  • 25% of the $2B Regional Relief and Recovery Fund earmarked for tourism.

Sector-specific investments

Budget 2021 provided $1B in investments in the sector:

  • Tourism Relief Fund, $500M/two years, delivered by the RDAs
    • National stream for associations, $15M, delivered by ISED
  • Major Festivals and Events Support Initiative, $200M/two years, delivered by RDAs
  • Community-oriented events, $200M/two years, delivered by Canadian Heritage
  • Marketing, $100M/three years, delivered through Destination Canada

From recovery to long-term growth: the launch of the new Federal Tourism Growth Strategy

Launched in July 2023, the Strategy maps the sector's way forward, and prioritizes:

  • Investing in Canada's Tourism Assets
  • Embracing Recreation and the Great Outdoors
  • Partnering to Grow Indigenous Tourism
  • Attracting more International Events
  • Improving coordination with a Ministerial Tourism Growth Council

To advance these priorities, the Strategy contains funding from Budget 2022 and 2023:

  • $108 million for a Tourism Growth Program to support the development of local tourism projects and events;
  • $55 million to invest in the Trans Canada Trail to expand recreation resources and outdoor activities;
  • $20 million for a Indigenous Tourism Fund to help the Indigenous tourism industry recover from the pandemic and position itself for growth; and
  • $50 million to assist Destination Canada's efforts in bringing more major business conferences, conventions, tradeshows, and other events to Canadian venues.

Overview of current ISED portfolio activities in support of the economy

The ISED and Portfolio story

The Department has a long-standing history of supporting the Canadian economy through its evolving mandate and ongoing mission to meet the shifting needs of industry.

1892: The Department of Trade and Commerce (1892) primarily focused on the creation and expansion of national and regional transportation systems, export of natural resources, and growing the processing capacity of the manufacturing sector. The Department's focus shifted to mobilizing Canada's industrial capacity for war in 1939.

1963: The Department of Industry (1963) shifted the primary focus to industry and innovation. The Department's 10 sector-focused branches aimed to increase Canadian productivity and large-scale production. Regional economic development was also first recognized as a key component of industry policy in this era via the creation of the Area Development Agency.

1969: The Department of Industry, Trade and Commerce (1969) brought together trade and industrial policy. The Department's primary focus was to promote the establishment and growth of the manufacturing, processing, and tourism industries, improve the productivity of Canadian industry, and foster the expansion of Canadian trade.

1982: The Department of Regional and Industrial Expansion (1982) merged industry policy and regional economic development. Trade functions were removed and the Department's programming efforts focused on supporting large-scale industrial development.

1987: The Department of Industry, Science and Technology Canada (1987) was created in response to the growing prominence of science and technology as a key component of economic policy. Some shifts in the era included a more prominent role in encouraging technology transfer and basic and applied R&D, and ensuring the availability of a highly skilled labour force.

1993: Industry Canada (1993), essentially a merger of four existing departments (Industry, Science and Technology Canada; Consumer and Corporate Affairs; Department of Communications; and Investment Canada), was established in response to the unfavourable economic and financial climate in the early to mid-1990s. The role of the Department shifted toward micro-economic policy, with a raison d'être to promote productivity and innovation and create the conditions for a more competitive business climate.

2015: Innovation, Science and Economic Development Canada (2015) reinforced the centrality of innovation to industrial policy and economic development across all sectors and regions of the country. The ISED Portfolio has shifted toward being a more active and direct partner with businesses, innovators, entrepreneurs, the higher education sector, and civil society. This era has also coincided with a renewed emphasis on working collectively across departments and central agencies to generate whole-of-government solutions to growing the economy for all Canadians.

Overview of current ISED and portfolio activities

Overview of mandate-linked activities

  • Helping small businesses adapt, thrive, and scale
  • Supporting Canadian sectors
  • Regional development
Supporting Canadian sectors

Key sectors where ISED takes a lead role

ISED leads the Government's work with key industrial sectors to improve conditions for investment, enhance innovation performance, increase our share of global trade, and build a fair, efficient, and competitive marketplace.

ISED brings together the expertise, programs, and services of the Government to meet priorities and support businesses in reaching their potential.

ISED works directly with businesses to gain insights, respond to challenges, and develop solutions to drive economic growth by focusing on opportunities and building on Canada's strengths.

Key sectors where ISED takes a lead role
The referenced media source is missing and needs to be re-embedded.
Key sectors where ISED takes a lead role - Text version

Graph showing key Canadian sectors where ISED takes a lead role. These include aerospace, automotive, clean tech, critical minerals and energy, digital technology, food processing, life sciences and biomanufacturing, manufacturing, steel and aluminum and tourism. Together, these sectors represent 57% of R&D spending, 40% of goods exports, and 18% of GDP.

Pandemic response and readiness

Fostering recovery by strengthening and rebuilding biomanufacturing capabilities and supporting Made-in-Canada technologies, including personal protective equipment.

Innovation and R&D

Supporting the Canadian economy through strategic actions and investments to build Canada's innovation advantage in growing technology and promote digital adoption across all industries.

Sustainability and emissions reduction

Supporting the decarbonization of Canadian industries and the economy to accelerate the transition to sustainability and net-zero through expertise in clean technology capabilities and research to support new policies and programs enabling clean technologies.

Supply chain resiliency and trade

Supporting efforts to shape a more resilient and inclusive economy reinvesting in domestic manufacturing expertise and capacity, stabilizing global supply chains, and expanding trade relationships.

Skills and talent

Delivering skills programming focused on driving innovation and helping ensure that Canada's workforce meets industry needs by inspiring youth toward future careers and supporting work-integrated learning and training in high-growth sectors.

Program supports

ISED and the Portfolio's flagship innovation support programs each target support at a different critical stage of firm growth:

Support programs of ISED and the Portfolio at different stages of a company's growth
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Support programs of ISED and the Portfolio at different stages of a company's growth - Text version

Graph that shows the support programs of ISED and the Portfolio which aim for support at different stages of a company's growth (financing, scale & export, tech adoption, business R-D, facilities & equipment).

Program data and key figures

NRC-IRAP

9,690 firms assisted

3,083 new projects funded

2,342 firms funded

725 youth jobs supported, with 86% youth employed/self-employed
post-internship

13,973 jobs supported

$489.4M invested through grants and contributions

Data as of 2022-23

Strategic Innovation Fund (SIF)

(Launched July 2017)

116 projects supported

$8.2B in SIF contributions

$71.9B in total investment leveraged

$19.4B secured in R&D investment

27.5K commitments for co-op opportunities

116K in commitments for jobs created + maintained

Data as of July 11, 2023

ISED supports industry sectors by providing a one-stop shop for financing and expert advice and by driving new collaborations to help businesses innovate, create jobs, and grow Canada's economy.  

The Strategic Innovation Fund invests in innovative businesses and collaborative projects to support scale-up and research, develop and commercialize cutting-edge ideas, and collaborate in new ways (e.g. Net-Zero Accelerator to support clean technology development and adoption by Canadian businesses and ecosystems). 

The Global Innovation Clusters bring together entrepreneurs, researchers, accelerators, small and medium-size enterprises, and global firms to consolidate Canada's technology strengths in areas of global advantage. The five clusters are regionally anchored and have national reach (Digital Technology, Protein Industries, Advanced Manufacturing, Scale AI, and Ocean).

Innovative Solutions Canada is helping Canadian innovators who want to start, grow, and get to market by funding R&D and testing prototypes in real-life settings.

Canada Digital Adoption Program's Stream 2 will help SMEs with access to programs and services to digitize their businesses toward resilience and growth.

The Accelerated Growth Service, BizPaL, and Business Benefits Finder aim to help Canadian businesses grow from start-up to scale-up to global brand.

ExploreIP, Canada's IP Marketplace, and associated online tools help Canadian businesses access valuable publicly owned IP to licence, collaborate, and commercialize.

Portfolio partners

ISED works with other departments on investment attraction to encourage foreign firms to invest in Canada to bring new jobs, adopt advanced technologies, and boost our economy. ISED is responsible for ensuring foreign investment benefits the Canadian economy via the administration of the Investment Canada Act.

The Portfolio delivers a broad suite of industry-focused programs to support business needs—from helping businesses access skilled talent to grow and innovate, through building innovation ecosystems, to exporting and scaling up globally. For example:

  • The National Research Council Canada labs and the Industrial Research Assistance Program work directly with individual businesses across the country on their research and commercialization needs.
  • The Canadian Space Agency supports the growth of the space industry and encourages the transfer and commercialization of space technology throughout Canadian industry.
  • Destination Canada promotes Canada as a tourism destination by uniting tourism leaders and providing a platform for businesses to connect with global customers.
  • Regional Development Agencies, now formally outside the Portfolio and led by separate ministers, work to address key economic challenges by providing regionally tailored programs, services, knowledge, and expertise, including delivering direct project funding for local enterprises, regional ecosystems, and community economic development and diversification, and implementing national programs such as the Women Entrepreneurship Fund.
Helping Small Businesses Adapt, Thrive, and Scale

Small businesses make up nearly 98% of businesses in Canada and are important to Canada's economy, employing 68% of workers. While Canada generally excels at creating new businesses, maximizing export potential and creating high-growth and large anchor firms remains a challenge.

A current function of the Portfolio is to support small businesses through access to financing. This includes direct funding through grants and loans, as well as support in raising capital. Many of the Portfolio financing programs include mentorship and capacity building, offering knowledge sharing, resources, and expert advice direct to entrepreneurs and small-business owners.

The Portfolio works to encourage market diversification and global market access by promoting key trade and investment agreements, advancing negotiations on new agreements, and helping entrepreneurs expand globally.

The Portfolio also supports the small-business ecosystem more broadly through its role in supporting effective regulation and access to talent pipelines, and through direct business-facing services, such as the Canada Business App, to help small businesses better access government services and programs.

Existing programs support a wide range of entrepreneurs (Women Entrepreneurship Strategy, Black Entrepreneurship Program, Futurpreneur, 2SLGBTQI+ Entrepreneurship Program and the Small Business and Entrepreneurship Development Program) to start a business, and small and medium-sized enterprises to grow in Canada and globally.

The Canada Digital Adoption Program's Stream 1 is intended to help SMEs take advantage of e-commerce opportunities, while Stream 2 helps businesses with the development and implementation of digital adoption strategies.

The Canada Small Business Financing Program enhances access to capital by working with Canadian financial institutions to risk share small business loans.

ISED further complements these SME supports through its business innovation programming:

  • The Strategic Innovation Fund supports innovation networks that facilitate collaborative innovation projects, often involving smaller companies.
  • 47% of Cluster project partners are SMEs, linking innovative SMEs with larger firms and research institutes to leverage the industry network.
  • Innovative Solutions Canada leverages procurement to enable the Government to act as a first customer and support innovative Canadian SMEs.
  • The Innovation Advisors within the Accelerated Growth Service help high-growth SMEs find government support—from financing to technical advice to foreign market expertise.

Portfolio partners

The Business Development Bank of Canada provides financing, advisory services, and capital investments for SMEs, intended to supplement or complete services available from commercial financial institutions.

The Business Development Bank of Canada also delivers programs on behalf of government, such as the Venture Capital Catalyst Initiative, which leverages private sector funds to increase the availability of funding targeting high-potential start-ups, and supports the Canada Digital Adoption Program by providing 0% interest loans to finance the implementation of business' technology adoption plans.

The National Research Council Canada delivers the Industrial Research Assistance Program*, which provides technical advice to over 8,000 SMEs and funding to over 3,500 SMEs each year.

Regional Development Agencies, now formally outside the Portfolio and led by separate ministers, address key economic challenges by providing regionally tailored programs, services, knowledge, and expertise, including delivering direct project funding for SMEs, regional ecosystems, community economic development and diversification, and marketing and destination development in support of tourism..

* IRAP will be transitioning to be a part of the recently formed Canada Innovation Corporation.

Regional development

The ISED Portfolio engages regionally via two principal avenues:

1. ISED's five Regional Offices, reporting through the Strategy and Innovation Policy Sector—Pacific, Prairie and Northern, Ontario, Quebec, and Atlantic—gather and report regional intelligence, provide support to ministerial and VIP outreach, support implementation of certain key departmental files; and enhance the Department's understanding of local and regional issues, opportunities and stakeholder networks.

2. Federal, Provincial and Territorial (FPT) Table for Innovation and Economic Development—supports FPT ministers and deputy ministers in sustaining and enhancing collaboration on innovation and economic development. Created in 2016, it is currently co-chaired by ISED and the Government of Ontario. It includes an assistant deputy minister-level FPT table.

With respect to tourism, ISED also engages regionally through the Canadian Council of Tourism Ministers:

  • Forum for FPT ministers and deputy ministers to collaborate to grow the tourism  sector and create opportunities for community economic growth;
  • Currently co-chaired by the federal Minister of Tourism and the Minister of Tourism of Quebec, supported by a deputy minister table.

Additionally, outside the ISED portfolio is a network of seven Regional Development Agencies, now under separate ministers—CanNor, PacifiCan, PrairiesCan, FedNor, FedDev Ontario, CED, ACOA:

  • Consists of federal organizations responsible for fostering long-term economic growth in the regions they serve, each led by a regionally based president;
  • Provides a key federal presence in the regions via long-standing relationships with local stakeholders and businesses, allowing them to provide "on-the-ground" knowledge and expertise for the federal government; and
  • Delivers direct project funding for SMEs, regional ecosystems, and community economic development and diversification projects, including key COVID supports and economic recovery initiatives (e.g. Regional Relief and Recovery Fund, Tourism Relief Fund) and national initiatives (e.g. Women Entrepreneurship Fund).

Overview of ISED

Departmental divisions

The units within the Department that help carry out the activities of ISED are:

  • Small Business, Tourism and Marketplace Services
  • Industry Sector
  • Strategy and Innovation Policy Sector
  • Innovation Canada
  • Science and Research Sector
  • Spectrum and Telecommunications Sector
  • Digital Transformation Services Sector
  • Office of Life Sciences and Biomanufacturing Readiness
  • Corporate Management Sector
  • Strategic Communications and Marketing Sector
  • Canadian Intellectual Property Office
  • Competition Bureau
  • Audit and Evaluation Branch
  • Legal Services

Deputy Minister, Simon Kennedy

Deputy Minister, Catherine Blewett

Associate Deputy Minister, Francis Bilodeau

The whole of ISED is here to support your mandate. In particular, the Small Business, Tourism and Marketplace Services Sector is a key area supporting your agenda.

Small business, tourism and marketplace services (SBTMS)

Mandate

SBTMS is responsible for small business, entrepreneurship, and tourism policy and programs and services. It undertakes financing and venture capital policy development and coordination, oversight of the Business Development Bank of Canada, and delivery of the Canada Small Business Financing Program. It further supports entrepreneurship ecosystems through tourism industry supports, the Women Entrepreneurship Strategy, the Black Entrepreneurship Program, the Canada Digital Adoption Program (Stream 1), the 2SLGBTQI+ Entrepreneurship Program, and Indigenous economic development policy. The sector is active on consumer policy coordination, protecting and promoting the interests of consumers. The Sector is also responsible for tourism policy and oversight of Destination Canada, which is mandated to market Canada overseas as a tourism destination.  Measurement Canada, Corporations Canada, and the Office of the Superintendent of Bankruptcy Canada are all part of SBMS. These organizations play strong regulatory management roles in the areas of trade measurement, insolvency, and federal incorporation, supporting the integrity of the marketplace and providing a competitive environment that contributes to Canada's innovation performance.

Étienne-René Massie
Assistant Deputy Minister

Étienne-René Massie was appointed Assistant Deputy Minister in 2023. He previously held the role of DG in the Small Business Branch, leading the creation of the Black Entrepreneurship Program, the Women Entrepreneurship Program, and the Canada Digital Adoption Program, as well as increased support through the Venture Capital Catalyst Initiative, and youth and Indigenous entrepreneur support. Before joining ISED, Etienne served as Senior Director at Employment and Social Development Canada.

Industry sector (IS)

Mandate

IS is the centre for the provision of advice on the Government's industrial policy, based on economic and technological expertise and industry outreach. In this capacity, the sector is responsible for the following industries: automotive, manufacturing, digital technologies, clean technologies, aerospace, space, marine, and defence. The sector also supports the Government's delivery of industry-focused programs, and supports the advancement of a skills agenda aligned with industry needs. IS undertakes investment attraction work in collaboration with other departments and the Invest in Canada Hub, including the Government's industry promotion efforts. The sector is also responsible for the management of the Industrial and Technological Benefits Policy.

Charles Vincent
A/Senior Assistant Deputy Minister

Charles Vincent has been working in the Department since February 2012 and served previously as Assistant Deputy Minister within Small Business, Tourism and Marketplace Sector from October 2021 to July 2023. Prior to that role, he held other executive positions in the Department, including being responsible for the Made-in-Canada industry mobilization initiative during the COVID-19 pandemic, and being the Director General of the Automotive, Transportation and Digital Technologies Branch. Before joining ISED, Charles served as an executive at the Treasury Board of Canada Secretariat.

Mary Gregory
Assistant Deputy Minister

Mary Gregory has been working in the Department since March 2012. Prior to this position, she held various senior leadership roles in the organization, including Director General of the Aerospace, Defence and Marine Branch and Executive Director of the Industrial and Regional Benefits Directorate. Before joining ISED, Mary held executive positions with the Treasury Board of Canada Secretariat and Health Canada.

Andrew Noseworthy
Assistant Deputy Minister

Andrew Noseworthy has been working in the Department since March 2016. Over the past five years, he has overseen policy and operational activities related to clean technology in Canada, including the  Clean Growth Hub, and served as co-secretary to one of the Economic Strategy Tables. Prior to joining the public service in 2003, he had an 18-year career with the Government of Newfoundland and Labrador, where he held a number of senior appointments.

Strategy and Innovation Policy sector (SIPS)

Mandate

SIPS plays a key role in implementing the Government's microeconomic policy agenda and in supporting departmental alignment. It develops and supports the Department's horizontal policy and strategy by ensuring robust marketplace frameworks and by deepening international and regional relations and promoting trade. It also coordinates for the federal budget and is responsible for telecommunications and digital policy. Also within SIPS are the regional offices, which gather intelligence in the regions and act as the Portfolio's public face with regional stakeholders, and the Centre for Rural Economic Development, which takes a federal oversight role for rural affairs and federal responses. The sector is also responsible for the administration of the Investment Canada Act.

Mark Schaan
Senior Assistant Deputy Minister

Mark Schaan has served as Senior Assistant Deputy Minister of SIPS since July 2022. Prior to becoming a Senior Assistant Deputy Minister, Mark was the Associate Assistant Deputy Minister of SIPS. Before that, he was the Director General, Marketplace Framework Policy Branch, at ISED. In this role, Mark advised on the policy, legislative, and stakeholder issues relating to privacy and data protection, artificial intelligence, patents, trademarks, copyright, competitions, and insolvency. Mark's public service career has included roles across the policy spectrum, as well as leading on revitalizing the public service through innovative recruitment models. Mark holds a degree in political science, a master's degree in comparative social policy, and a doctorate in social policy.

Kasi McKicking
Associate Assistant Deputy Minister

Kasi McMicking has served as Associate Assistant Deputy Minister of SIPS since April 2023. In this role she contributes to the advancement of the Government's microeconomic policy agenda with special responsibility for rural and regional economic development. Prior to joining ISED, Kasi was the Director General, Ottawa Operations for the Atlantic Canada Opportunities Agency (ACOA). Kasi was previously ISED's Director General, Aerospace, Defence and Marine, and in the preceding years held senior positions at the Treasury Board Secretariat, Privy Council Office, Health Canada, and the Public Health Agency of Canada. Kasi hails from rural New Brunswick, and earned her BA (Honours) from St. Francis Xavier University in Political Science.

Innovation Canada Sector (ICS)

Mandate

ICS is a sector formed in 2017 that serves as a collaborative platform to make it easier and faster for Canada's innovators and entrepreneurs to find and access government programs and services. Through ICS, ISED supports various industry sectors across the Canadian economy by providing funding and expert advice, and driving new collaborations. As part of this role, ICS's flagship programs and services are designed to help businesses innovate, create jobs, and grow Canada's economy. These include: the Global Innovation Clusters; the Strategic Innovation Fund; Innovative Solutions Canada; the Canada Digital Adoption Program; ExploreIP (Canada's intellectual property marketplace); BizPal; Business Benefits Finder; and the Accelerated Growth Service.

Andrea Johnston
Assistant Deputy Minister

Andrea Johnston was appointed Assistant Deputy Minister of ICS in July 2018. She first joined the Department in May 2017 as the Director General of the Economic Strategy Tables and Skills Branch. Prior to joining the Department, Andrea had an extensive career at Agriculture and Agri-Food Canada.

Mitch Davies
Senior Assistant Deputy Minister, Strategic Innovation Fund

Mitch Davies was appointed Senior Assistant Deputy Minister of ICS in 2023, overseeing the Strategic Innovation Fund. Previously, he was the Senior Advisor to the Deputy Minister of ISED where he participated in the Blueprint for the Canada Innovation Corporation. He also served as President of the National Research Council of Canada and has held various senior executive positions at ISED and across government since 2006.

Science and Research Sector (SRS)

Mandate

SRS leads the development and implementation of the Government of Canada's science and technology policy agenda to optimize federal investments in science and research, foster an innovative economy, and improve the wealth and well-being of Canadians. The sector provides advice on external research, relationships with post-secondary institutions, granting agency policy, programs, and operations; and also advises on and manages contribution agreements with a variety of external organizations. The sector also provides advice on a range of science policy issues, including the broader intramural science enterprise and international science co-operation, and leads the development of strategies to enhance the translation of Canada's research leadership in key disruptive technology areas into commercial and societal benefits for the country (e.g. quantum, AI, genomics).

Nipun Vats
Assistant Deputy Minister

Before his role in SRS, Nipun Vats held a variety of positions within the federal government, including in the Priorities and Planning Secretariat of the Privy Council Office, and in the policy and administration of the major transfer payment programs to the provinces and territories at the Department of Finance. He has also served as Secretary to a National Advisory Panel on Energy Science and Technology. Nipun also served as the lead federal official in the successful negotiation of the Canadian Free Trade Agreement.

Spectrum and telecommunications Sector (STS)

Mandate

STS is responsible for regulating telecommunications equipment, extending and enhancing broadband service in rural and remote regions of Canada, and working with other organizations on the safety and security of existing and future telecommunications infrastructure. The sector's objective is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum. The sector works across the Department, with other federal government departments, at the international level and with our stakeholders to support a competitive wireless industry, strong investment, cyber-resilience, and economic growth.

Eric Dagenais
Senior Assistant Deputy Minister

Eric Dagenais has served as Senior Assistant Deputy Minister, STS, since June 2019.  He has held the post of Assistant Deputy Minister in the Department since 2015 within various other sectors. Prior to this, Eric was the Director General of the Small Business Branch; Director General, MacKenzie Gas Project Office at Environment Canada; and Director General, Investment Review of ISED.

Ray Edwards
Chief Equity and inclusion Officer and Associate Assistant Deputy Minister

Ray Edwards, ISED's Chief Equity and Inclusion Officer (CEIO), has served as the Associate Assistant Deputy Minister, Spectrum and Telecommunications Sector, with special responsibility for broadband and digital programming, since 2023. As CEIO, he provides strategic leadership to drive department wide inclusion, antiracism, equity, diversity and accessibility initiatives. He also champions the transformation to break down systemic barriers to the full representation and participation of equity-seeking communities within the workforce and in the Canadian marketplace. His career has encompassed executive leadership roles both in social and economic policy development and coordination both domestically and internationally.

Digital Transformation Service Sector (DTSS)

Mandate

DTSS leads the Department's digital service channels, in close collaboration with different areas of the Department, to accelerate digital services for businesses and innovators. DTSS is building new capabilities in digital transformation supported by a backbone of a modern information technology and information management infrastructure and is placing special emphasis on the power of disruptive technologies that can reduce the administrative burden for Canadians and public servants as we deliver digital services and programs.

Shaifa Kanji
Assistant Deputy Minister and Chief Digital Officer

Shaifa Kanji assumed her role as Assistant Deputy Minister and Chief Digital Officer in August 2021. She began her career in the public service in 2011 and has led digital transformations in municipal government (Region of Peel) and not-for-profit (Toronto and Region Conservation Authority) organizations. Prior to joining the public sector, Shaifa worked in multiple sectors, such as telecommunications, finance, and consulting. Shaifa holds an Executive MBA from the Ivey Business School and a computer science degree from York University.

Office of Life Sciences and Biomanufacturing Readiness (OLSBR)

Mandate

The Office of Life Sciences and Biomanufacturing Readiness (OLSBR) is responsible for providing policy analysis, leadership and support aimed at ensuring the growth, sustainability and resilience of the life sciences and biomanufacturing sector in Canada. OLSBR provides leadership in implementing Canada's Biomanufacturing and Life Sciences Strategy, launched in 2021, which aims to rebuild a strong life sciences and biomanufacturing ecosystem, through coordinated governance and effective collaboration with stakeholders across governments, industry and academia. OLSBR maintains and develops strong relationships with a wide variety of stakeholders.

Ritu Banerjee
Assistant Deputy Minister

Ritu Banerjee recently joined ISED as the Assistant Deputy Minister, Office of Life Sciences and Biomanufacturing Readiness (OLSBR). Prior to that she was the Executive Director of the Results Division, Expenditure Management Sector at the Treasury Board Secretariat. Ritu has also worked at Employment and Social Development Canada on youth policy and has held various executive positions at Public Safety Canada, primarily working on national security policy issues.  She started her career in the federal government at the Department of Justice. In addition to a Bachelor of Arts degree from McGill University, she has a Master of Arts in Political Science from the School of Oriental and African Studies, University of London and a Law degree from the University of Ottawa. She has been a member of Ontario Bar since 2000.

Corporate Management Sector (CMS)

Mandate

CMS is responsible for the comptrollership of the Department's finances, the management of human resources, the stewardship of facilities and assets, and the provision of physical and personnel security services. CMS also oversees the Department's corporate planning and accountability reporting regimes and provides strategic advice on performance measurement, risk management, the affordability of program proposals, and the integrity of grants and contributions. In addition, CMS leads the Department's efforts on the Return to the Workplace and the Future of Work.

Douglas (Doug) McConnachie
Assistant Deputy Minister and Chief Financial Officer

Doug McConnachie joined ISED in October 2019 as Assistant Deputy Minister and Chief Financial Officer, Corporate Management. He has 25 years of experience in public sector management and corporate finance and has served in senior management roles at Environment and Climate Change Canada, Public Safety Canada, and Public Services and Procurement Canada.

Strategic Communications and Marketing Sector (SCMS)

Mandate

SCMS has a mandate to deliver high-impact communications and marketing initiatives that effectively support Government of Canada priorities across the entire ISED portfolio, in order to reach Canadians and build public trust in government. SCMS reaches national, regional, local, and commercial audiences through a variety of channels, including web and social media, television, radio, and print. The sector actively seeks to break through a competitive environment with proactive, targeted media, marketing, and online strategies. The team of 200+ professionals is responsible for media relations, ministerial communications and events, marketing and advertising, social media, issues management, and corporate communications with ISED employees.

Kendal Hembroff
Assistant Deputy Minister

Kendal Hembroff was appointed as Assistant Deputy Minister, Strategic Communications and Marketing, in May 2023. Previous to this role, she was Director General of the Clean Technologies and Clean Growth Branch. Prior to joining ISED, Kendal spent 22+ years in various roles at Global Affairs Canada, overseeing the negotiation of Canada's bilateral and regional free trade agreements and multilateral trade negotiations, and was Canada's Chief Negotiator for negotiations with India, ASEAN, Indonesia, Ukraine and the Pacific Alliance. She served abroad as Consul and Senior Trade Commissioner from 2011 to 2014 at Canada's Consulate in Hong Kong, providing support to Canadian companies in the Greater China Region .

Canadian Intellectual Property Office (CIPO)

Mandate

CIPO, a special operating agency of the Department, is responsible for administering Canada's system of intellectual property (IP) rights: patents, trademarks, copyrights, industrial designs, and geographical indications. CIPO is also an international searching authority and international preliminary examining authority under the Patent Cooperation Treaty administered by the World Intellectual Property Organization. CIPO's mandate is to deliver high quality and timely IP products and services to clients, and to increase awareness, knowledge, and effective use of IP by Canadians. This mandate, along with the directions outlined in CIPO's business strategy, contributes to the strategic outcomes of the organization.

Konstantinos Georgaras
Chief Executive Officer

Konstantinos Georgaras joined CIPO in 2010 and was appointed as Chief Executive Officer in fall 2020. He also represents Canada at the World Intellectual Property Organization, one of the specialized agencies of the United Nations. He began his career in the public service in 1984 and has held strategic and executive positions within the departments of Innovation, Science and Economic Development Canada and Human Resources and Skills Development Canada, and within the Science, Technology and Innovation Council. He has extensive experience spanning strategic, economic, and legislative policy, with direct responsibilities for IP, innovation, insolvency, and industrial and labour market policies.

Konstantinos holds a Master of Arts in Public Administration from Carleton University and an Executive Certificate in Public Leadership from the John F. Kennedy School of Government at Harvard University.

Competition Bureau (CB)

Mandate

CB, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace. The Bureau is responsible for:

  • administering and enforcing the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act, and the Precious Metals Marking Act;
  • advocating for competition at all levels of government; and
  • promoting corporate compliance and consumer awareness through outreach.

Competition leads to lower prices, higher quality goods and services, and higher levels of innovation and business efficiency, and is thus a key driver of broad-based economic growth. The Bureau protects and promotes competition in the marketplace, saving Canadians an estimated $2.8B per year through actions that stop anti-competitive conduct and deceptive marketing. The Bureau continues to set a course to tackle the emerging challenges of the digital economy, and ensure that competition can underpin a strong post-pandemic recovery.

Matthew Boswell
Commissioner of Competition

Matthew Boswell was appointed Commissioner of Competition on March 5, 2019, for a five-year term. Prior to his appointment, he served as a Senior Deputy Commissioner. Before joining CB, he was Senior Litigation Counsel in the Enforcement Branch at the Ontario Securities Commission (OSC), where he prosecuted securities fraud and other white-collar crimes. Prior to his work at the OSC, Matthew was an Assistant Crown Attorney in Toronto with the Ministry of the Attorney General of Ontario.

Audit and Evaluation Branch (AEB)

Mandate

AEB provides independent, professional, and quality audit, evaluation, and practice management services founded on sound values and ethics to support informed decision-making and enhanced performance and accountability. It also fulfills the Department's obligations under the Treasury Board of Canada Secretariat's policies, directives, and standards on internal audit and evaluations, as well as conformance with the Institute of Internal Auditors international standards.

Kimberley Accardi
Chief Audit Executive and Director General

Kimberley Accardi was appointed the Chief Audit Executive and Director General, Audit and Evaluation, in September 2022.  Prior to this, she was the Deputy Director General of the Department's People Operations Branch where she was responsible for large scale operations and policy expertise in classification, compensation and staffing and program areas in learning, talent management and awards. Kimberley was responsible for the design and implementation of a multi-faceted HR-to-Pay stabilization strategy.  Prior to joining the Department in 2018, Kimberley held positions at Immigration, Refugees and Citizenship Canada and the Canada Border Services Agency.

Legal services (LS)

Mandate

ISED's LS is a departmental legal services unit that is a part of the Business and Regulatory Law Portfolio of the Department of Justice. LS strives to deliver timely and effective professional legal services to all sectors of ISED, as well as to other government departments and agencies of the ISED Portfolio, according to the service agreements and standards set by the Department of Justice.

Alain Vauclair

Senior General Counsel and Executive Director

Alain Vauclair has been Senior General Counsel and Executive Director for the Portfolio's Legal Services (Department of Justice) since September 2018. From 2013 to 2018, he was the Senior General Counsel and Executive Director for the Public Services and Procurement Canada and Shared Services Canada LS. He was also responsible for the creation and launch of Department of Justice's Centre of Expertise in Procurement Law in 2017.

Canadian economic snapshot

Major economic indicators in Canada have recovered to pre-pandemic levels

Real GDP growth, quarterly growth (percent)
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Real GDP growth, quarterly growth (percent) - Text version

Graph showing real GDP growth, in quarterly growth (%) from 1980 to 2022. The trend has been overall constant with a major decline in 2020.

Source: Statistics Canada. Table 36-10-0104-01 Quarterly gross domestic product, expenditure-based, Canada.

Data highlights
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Data highlights - Text version

Snapshot of key data on Canada's GDP and export levels and of top export markets. The image reveals that Canada had the 9th largest economy in the world in the first quarter of 2023, and an economy with exports at more than a quarter of GDP. Canada had a GDP of $2,814B, and a GDP per capita of $71,633. Canada's exports were at $948B and its business investment at $522B. Data also reveals that Canada's top export markets include US, China and the UK.

Unemployment rate, monthly (percent)
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Unemployment rate, monthly (percent) - Text version

Graphic showing unemployment rate monthly (percent) since 1980. It has been steadily decreasing, with a major spike in 2020 that has since returned to pre-2020 levels.

Source: Statistics Canada. Table 14-10-0287-01 Labour force characteristics, monthly, seasonally adjusted and trend-cycle, last 5 months.

Data highlights
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Data highlights - Text version

Snapshot of key data on Canada's unemployment levels post-pandemic. The image reveals that post-pandemic, the unemployment rate reached a record low of 4%. In May 2023, the employment level was at 20.1M. The working-age population was 25.1M. The participation rate was 65.5%. The economy reached pre-pandemic employment levels in September 2022.

Manufacturing's share of employment and GDP has been on the decline since the 1970s, while services have steadily increased

GDP share by sector
- Primary Manufacturing Services
1965 20% 24% 56%
2022 19% 10% 71%
Employment share by sector
- Primary Manufacturing Services
1976 16% 19% 65%
2022 12% 9% 79%

Canada is relatively more reliant on resources compared to many other developed nations.

Note: Primary industries include agriculture, mining and oil & gas, utilities and construction.

Source: Statistics Canada. Table 36-10-0434-03  Gross domestic product (GDP) at basic prices, by industry, annual average. Table: 14-10-0355-01, Employment by Industry, monthly.

Research and development (R&D) spending and exports are concentrated in a few sectors, with manufacturing remaining a major player despite its long-term decline
- - Share of R&D (2022) Share of value-added in exports (2021) Labor productivity (2022; Dollars per hour in 2012 prices)
Primary industries Agriculture 1% 4% 61$
Mining, oil and gas 3% 25% 294$
Utilities 2% 1% 206$
Construction 1% 0% 50$
Manufacturing Manufacturing 29% 41% 63$
Service industries Wholesale trade 10% 6% 66$
Retail trade 0% 0% 35$
Transportation and warehousing 0% 7% 45$
Finance and insurance 2% 4% 90$
Real estate, rental and leasing 0% 4% 147$
Professional, scientific and technical services 33% 8% 49$
Admin support services 1% 2% 30$
Educational services 0% 0% 25$
Health care and social assistance 1% 0% 45$
Information and culture industries 16% 2% 93$
Arts, entertainment and recreation 0% 0% 27$
Accommodation and food 0% 1% 22$
Other private services 0% 0% 27$

Mining, oil and gas industries generate the highest per-hour value-added, followed by utilities and real estate/rental/leasing.

Source: Statistics Canada. Table 27-10-0333-01 for R&D; Table 12-10-0100-01 for exports and Table 36-10-0480-01 for labour productivity.

Note: R&D and Export values do not sum to 100% due to rounding.

Canada remains an underperformer among its peers, ranking low on labour productivity and on innovation performance

The Canada-US gap in labour productivity has widened due to Canada's weak performance over the past two decades.

Labour Productivity Level in Canada Relative to Selected Countries (US=100)
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Labour Productivity Level in Canada Relative to Selected Countries (US=100) - Text version

Labour Productivity Level in Canada Relative to Selected Countries (US=100). The Canada-US gap in labour productivity has widened over the past two decades.

Source: OECD Productivity Statistics Database.

Canada's long-term underperformance in innovation, technology adoption and R&D may hold back productivity from catching up.

Business R&D as a % of GDP
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Business R&D as a % of GDP - Text version

Graph showing business R&D as a % of GDP from 1995 to 2021 of Australia, Canada, France, Germany, Japan, UK, USA and OECD countries average. The graph shows Canada has been underperforming.

Source: OECD Main Science and Technology Indicators.

Canadian firms in comparison to the OECD

  • 22nd: Business expenditure R&D (2021)
  • 22nd: Cloud computing (2019)
  • 10th: E-commerce (2019)
  • 19th: SME digitalization since onset of COVID

Source: OCDE, Statistique Canada

Headwinds are also weighing on the Canadian economy

  • Demographic challenges as population ages with more workers expected to exit than to enter into the labour force
  • Reliance on resource sector hinders global competitiveness
  • Net zero will not be a quick transition

Reliance on natural resources hinders trade sophistication in goods.

Industry composition of Canada's goods exports to the world, percentage
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Industry composition of Canada's goods exports to the world, percentage - Text version

Graph showing industry composition of Canada's goods exports to the world, percentage. Comparison between 2022 and 2007. In 2022, the industries with the greatest weight were oil and gas extraction, transportation equipment, as well as chemical, plastics and rubber.

Source: Trade Data Online Webpage.

Canada's population growth is expected to depend entirely on immigration by the 2040s, highlighting the importance of improved productivity.

Components of projected population growth, by projection scenario
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Components of projected population growth, by projection scenario - Text version

Graph showing components of projected population growth, by projection scenario. Canada's population growth is expected to depend entirely on immigration by the 2040s.

Source: Statistics Canada. Table 17-10-0058-01 Components of projected population growth, by projection scenario.

Canada's emissions have been persistent, underscoring transformative changes required in the green transition

Total GHG emissions, Mt CO2 eq.
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Total GHG emissions, Mt CO2 eq. - Text version

Graph showing total GHG emissions, Mt CO2 eq, from 1990 to 2050 (ECCC projection).Canada's emissions have been persistent and have to reduce drastically to meet 2030 target of 40% emission reduction on level in 2005.

Source: Environment and Climate Change Canada; OECD Economic Survey Canada

Canadian businesses invest less in both intangible and tangible assets

Investment is critical to boost labour productivity, allowing for greater capital deepening. However, Canadian businesses.

  • Invest less per worker compared to G7 peers (except UK)
  • Invests less in Machinery & Equipment (M&E); in stark contrast to the US at a nearly doubled rate
  • Invests less in intangibles; i.e., intellectual property products (e.g., R&D, software, data) 
  • Following the recovery many businesses planned to increase M&E investment. These plans however have softened to pre-pandemic trends amid higher borrowing costs.

Canadian businesses invest less per worker

Business investment per worker, 2021
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Business investment per worker, 2021 - Text version

Graph showing business investment per worker (USD), 2021, of France, US, Germany, Japan, Italy, Canada and UK. Canadian businesses invest less per worker.

Source: OECD, National Accounts of OECD Countries (Volume 2022) and OECD Labour force statistics 2022.

Canada invests less in capital related to productivity

Gross fixed capital formation as a % of GDP, 2021
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Gross fixed capital formation as a % of GDP, 2021 - Text version

Graph showing gross fixed capital formation as a % of GDP, 2021, given three categories: ICT, other M&E, and IP products. The graph shows the data for Canada and the US. Canada invests more in IP products and less in capital related to productivity, similarly to the US.

Source: OECD 2019, Measuring the Digital Transformation

Nevertheless, the use of digital technologies has sustained post the pandemic years as businesses in Canada continue to adapt.

Retail trade and e-commerce sales
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Retail trade and e-commerce sales - Text version

Graph showing retail trade and e-commerce sales from 2017 to 2022. Canada has invested more in retail e-commerce sales following Covid.

Source: Statistics Canada. Table 20-10-0056-03 Monthly retail trade e-commerce sales.

Proportion of businesses planning to adopt or incorporate new digital technologies over the next 12 months, Q1 2023
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Proportion of businesses planning to adopt or incorporate new digital technologies over the next 12 months, Q1 2023 - Text version

Graph showing proportion of businesses planning to adopt or incorporate new digital technologies over the next 12 months, Q1 2023. There is a higher proportion of businesses planning to adopt cloud computing, security software tools and collaboration tools.

Source: Statistics Canada Canadian Survey on Business Conditions, 2023 Q1

The economy continues to recover, with most sectors back at the pre-pandemic levels

Economic recovery has been strongest among higher-skilled sectors

(GDP Index February 2020 = 100)

Monthly gross domestic product at basic prices by industry (GDP Index February 2020 = 100)
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Monthly gross domestic product at basic prices by industry (GDP Index February 2020 = 100) - Text version

The graph shows GDP (Index February 2020 = 100) from 2020 to 2023 across different industries. Economic recovery has been strongest among higher-skilled sectors such as ICT.

Source: Statistics Canada. Table 36-10-0434-01 Monthly gross domestic product at basic prices by industry.

Most sectors have recovered, though Tourism-related industries still lag

(As of May 2023)

Monthly employment by industry, seasonally adjusted (as of May 2023)
Monthly employment by industry, seasonally adjusted (as of May 2023) - Text version

The graph shows monthly employment by industry, seasonally adjusted, as of May 2023. Most sectors have recovered (such as public administration, professional services and utilities), though tourism-related industries still lag.

Source: Statistics Canada. Table 14-10-0355-01 Monthly employment by industry, seasonally adjusted.

While most sectors have recovered, economic headwinds remain:

  • The level of economic activity in hard-to-distance sectors (e.g., tourism-related industries) remains well below pre-pandemic level.
  • Supply chain issues may persist and weigh on Canadian exports and imports.
  • Although job vacancies are generally tending down, they remain significantly above pre-pandemic levels.
  • Some sectors are currently experiencing labour shortages, and the number of long-term unemployed remains elevated.

What's up with inflation?

  • Inflation eased to 3.4% (year-over-year) in May 2023, the smallest pace in two years.
  • Temporary factors keeping up inflation include food and home prices.
  • While inflation is expected to ease towards the middle point (2%) of the Bank of Canada's target range, inflation may remain high in the coming months.

Canada provided significant support to firms to navigate the pandemic, the majority of it through wage subsidy and interest-free loans

Significant fiscal policy support announced across G7 countries
Significant fiscal policy support announced across G7 countries - Text version

The graph shows significant fiscal policy support (percent to GDP) announced across G7 countries, either as deferred revenue and accelerated spending or as direct fiscal and health measures. Canada has had a higher percentage of fiscal policy support through direct fiscal and health measures.

Funding to date ($ Billions)
Funding to date ($ Billions) - Text version

Graph showing funding to date ($ Billions) of different Canada programs such as the Canada Emergency Wage subsidy, Canada Emergency Business Account, and Canada Emergency Rent Subsidy. The highest funding has been to Canada Emergency Wage Subsidy.

Note: Funding figures as of October 10, 2021 (CEWS, CERS), October 7, 2021 (CEBA), June 30 2021 (HASCAP).

*Includes support from both the Canadian Emergency Rent Subsidy and its predecessor (Canadian Emergency Commercial Rent Assistance)

**Value is total funding for the program; other program values are for approved claims.

Industries receiving the most support in terms of dollar values were harder hit (e.g., accommodation and food services) or employing workers paid higher wages (e.g., manufacturing).

Uptake (share of firms claiming support) was widespread across the economy and especially high in hard-hit sectors.

Share of total funding received by industries and uptake by employer businesses (CEWS, CEBA, CERS).
Share of total funding received by industries and uptake by employer businesses (CEWS, CEBA, CERS) - Text version

Graph showing share of total funding received by industries and uptake by employer businesses (CEWS, CEBA, CERS). Industries receiving the most support in terms of dollar values were harder hit (e.g., accommodation and food services) or employing workers paid higher wages (e.g., manufacturing). Uptake (share of firms claiming support) was widespread across the economy and especially high in hard-hit sectors.

Note: Share and uptake % based on ISED internal analysis on CEWS, CEBA, CERS and CECRA program data linked to tax data as of Feb 15, 2021, Jan 26 2021, Apr 12 2021, and Mar 14 2021.

Small businesses are economically important but are more vulnerable during turbulent times

Vast majority of businesses are small (98% have less than 100 employees); these businesses employ 68% of workers
- Distribution of employer businesses, 2021 Distribution of employment, 2021
Small (1-99 employees)

97.9%

68%

Medium (100-499 employees)

1.9%

20%

Large (500+ employees)

0.2%

12%

Small businesses accounted for 69% of net employment growth from 2020–2021.

In 2021, 90% of exporters were small businesses…

… and, accounted for 20% of the value of exports.

Source: ISED. Key Small Business Stats 2022.

Smaller businesses had higher uptake of CEBA loans, which helped them maintain liquidity during the pandemic.

Uptake of program support by employee size class
Uptake of program support by employee size class - Text version

Graph showing uptake of program support by employee size class. Smaller businesses (1-9 employees) had higher uptake of CEBA loans, and larger businesses (100+ employees) had a higher uptake of CEWS.

Note: Share and uptake % based on ISED internal analysis on CEWS, CEBA, CERS and CECRA program data linked to tax data as of Feb 15, 2021, Jan 26 2021, Apr 12 2021, and Mar 14 2021.

Despite support, smaller businesses are less likely to be able to take on more debt and less likely to have revenues capable of sustaining their operations.

Business stability (Survey, Q3 2021)
Business stability (Survey, Q3 2021) - Text version

Graph showing business stability based on a Canadian survey in Q3 2021. The survey shows smaller businesses are less likely to be able to take on more debt and less likely to have revenues capable of sustaining their operations.

Source: Statistics Canada. Canadian Survey on Business Conditions, Q3 2021.

Businesses are cautiously optimistic as business outlook improves

Canadian Survey on Business Conditions—Q2 2023

  • Overall conditions and business sentiment have improved in 2023, with 3/4 of firms reporting positive prospects.
  • However, rising inflation worried businesses the most, with 56% businesses expecting it to remain an obstacle.
  • Rising input costs, including labour, capital, energy and raw materials, were also a major concern, with 40.3% of businesses viewing it as an obstacle.
  • Despite the pessimism with inflation and input costs, supply chain worries have subsided: only 23% of businesses expects supply chain issues.
  • Business Outlook: Over the next 12 months, firms …

… have a somewhat pessimistic outlook

11.8%

… have a very pessimistic outlook

2.9%

… are uncertain of their outlook

11.8%

… have a very optimistic outlook

22.8%

… have a somewhat optimistic outlook

50.7%

Source: Statistics Canada. Job Vacancy and Wage Survey Q1 2023 for job vacancies and labour shortage. Canadian Survey on Business Conditions Q2 2023 for the remaining statistics.

  • Businesses with < 20 employees, Tourism-related industries:
    • More optimistic outlook
    • Better able to take on more debt
    • Better able to continue operating for 12+ months under current conditions
    • Tourism-related industries continue to experience large labour shortages.

Growth prospect for Canadian GDP is encouraging despite higher interest rates on housing and private consumption.

Canada's GDP growth is expected to outperform other G7 countries (except Germany), and to advance at nearly the same pace as the Euro area.

Growth expected to remain strong, but likely to normalize in 2024

Annual GDP growth (%)
Annual GDP growth (%) - Text version

Graph showing annual GDP growth (%) from 2016 to 2024 in Canada, US, Euro area and the World. It shows that Canada's GDP growth is expected to advance at nearly the same pace as the Euro area.

Source: OECD, Economic Outlook Interim Report (March 2023).

What has the pandemic changed?

  • Over the short term, some hard-hit sectors are still reliant on direct support; labour shortages are hampering the recovery in many sectors; and inflation is currently unusually elevated, higher than in the last decade.
  • Accelerated adoption of digital technologies, including clean technologies, could act as a catalyst for business investment, productivity growth, and innovation.
  • As a small open economy, Canada could be suffering from world-wide reorganization of supply chains that were disrupted by the pandemic.
  • The way of work, including automation and teleworking, could impact labour market participation, skill accumulation and mismatch, and ultimately labour productivity.
  • Demographic forces are likely to limit long-term growth and living standards prospects. This requires strong labour market participation, including from underrepresented groups and those most affected by the pandemic.

Strategic Communications and Marketing (SCMS)

SCMS Services

General products

  • Media advisories
  • News releases
  • Special backgrounders (key messages and Q&As)
  • Speeches / speaking notes
  • Op-eds
  • Communications plans
  • Post-event reports
  • MP kits

Logistical support

  • Scenario notes
  • On-site support
  • Virtual platform support
  • Transcriptions (for ISED Ministers only)
  • Social media livestreams
  • Electronic invitations to events open to media
  • Event-related contracting and procurement (e.g., A/V support, facilities).

Media relations & monitoring

  • Media clippings
  • Media reports and analyses
  • Media responses
  • Detection and correction
  • Technical briefings
  • Tailored media distribution lists
  • Requests for transcripts of TV/radio via service providers
  • Proactive media strategies
  • Proactive pitches to reporters
  • Support on teleconference organization and communications line
  • Organization of media pools for announcements.

Analytics and insights

  • Data governance across SCMS
  • Corporate reporting
  • Campaign report creation and evaluation
  • KPIs and benchmarks
  • Data visualizations
  • Campaign evaluations and tracking.

Research and consultations

  • POR evaluations, approvals
  • Survey and focus group design, contracting, analysis and reporting
  • Public environmental scans and analysis
  • Registration of public consultations
  • Consultation plans
  • Consultation design, analysis and reports.

Marketing, advertising and creative services

  • Promotional campaigns
  • Advertising
  • Creative products (e.g., podium signs and pull-up banners)
  • Videos and video scripts
  • Branding and templates.

Web

  • Web development to support new initiatives
  • Web coding
  • Web analytics.

Social media

  • Channel strategies
  • Social media plans (ISED accounts only)
  • Social media analyses and snapshots.

Annex A: Overview of portfolio bodies with key linkages to your mandate

Portfolio bodies with key linkages to your mandate

  • Destination Canada

Destination Canada (DC)

Marsha Walden, President and Chief Executive Officer

Effective August 24, 2020

The honorable Liza Frulla, Chairsperson

Effective August 6, 2021

Budget : $96.2 M*

FTEs : 131 (in 2022)

Headquarters : Vancouver, BC

*2022–2023 Main Estimates

Mandate

DC works to sustain a vibrant and profitable Canadian tourism industry. It does so by conducting research on tourism trends and market opportunities, and marketing Canada as a tourism destination in the Americas, Europe, Asia, and Australia in order to grow tourism export revenues in markets where Canada's brand has strong recognition. DC's regional structure allows it to adjust its marketing programs to reflect changing market conditions and to capitalize on new marketing opportunities as they arise.

Governance

The President, Chairperson, and directors of the Board of DC are appointed by the Governor in Council on the recommendation of the responsible Minister. The President is responsible for DC's day-to-day operations. The Canadian Tourism Commission Act identifies the Deputy Minister of ISED as an ex-officio director.

Mandate

Destination Canada's (DC) role is to market Canada as a premier tourism destination.

Governance

DC (legally known as the Canadian Tourism Commission) is a federal Crown corporation established in 2001 through the Canadian Tourism Commission Act.

DC reports to Parliament through the responsible Minister of Innovation Science and Economic Development, delegated to the Minister of Tourism.

DC is headquartered in Vancouver, with a small office in Ottawa, and regional offices in the UK, Japan, and China.

President and Chief Executive Officer: Marsha Walden, effective August 24, 2020, until August 23, 2025

Chair of the Board of Directors: The Honourable Liza Frulla, effective August 6, 2021, until August 5, 2026

DC is governed by a Board of up to 12 directors who provide stewardship and strategic direction

  • The DC Board includes the President and Chief Executive Officer, the Chair, and the Deputy Minister of Innovation, Science and Economic Development, who is an ex-officio Board member.

Roles and responsibilities

In 2016, DC successfully launched a multiyear strategic partnership with all provinces, territories, the Indigenous Tourism Association of Canada, major Canadian destination marketing organizations and private sector partners such as Air Canada. This unified approach, known as the North Star marketing partnership, has resulted in a stronger alignment of investments and marketing decisions.

Core business segments:

  • Leisure travel (Canada, Australia, China, France, Germany, Japan, Mexico, South Korea, the UK, the US)
  • Business events
  • Research
  • Destination development

Delivering funding in support of federal tourism growth strategy

As one of the 5 priorities of the Federal Tourism Growth Strategy, DC will deliver an International Events Hosting Program to attract business events, conferences and meetings to Canada. Funding of $50M over three years was provided in Budget 2023.

Annex B: Departmental services and supports

Departmental services and supports

The Portfolio is here to support you and ensure a successful and seamless transition.

The Deputy Ministers (DMs) are your key interlocutors, providing non-partisan advice to help implement the Government's agenda. The DM is supported by an Associate Deputy Minister (ADM).

The Department will work closely with your office to provide support on a wide-range of policy, corporate, and operational issues, including:

  • Providing briefings and responding to requests for information;
  • Providing communications support;
  • Coordinating support on Cabinet, parliamentary, Governor-in-Council, and ministerial appointments and correspondence; and
  • Providing support on day-to-day operations and general administrative and budgetary information.

While you and your staff are responsible for discussing possible conflicts of interest and disclosing them to the Conflict of Interest and Ethics Commissioner, the DMs, supported by his Chief of Staff and the Corporate Secretary, is responsible for putting measures in place to ensure appropriate delegations of authority and to prevent potential or perceived conflicts of interest that could arise in the execution of your mandate.

Supporting the DM in providing you and your staff with corporate services and support are the following individuals and their teams:

  • Departmental Liaison;
  • Chief of Staff, Deputy Minister's Office;
  • Corporate Secretary; and
  • Assistant Deputy Minister of Strategic Communications and Marketing

Departmental liaison

Nicholas Koutros (ISI)

Nicholas.koutros@ised-isde.gc.ca

Cell: 343-597-2906

Daria Alshehabi (RED and TOUR)

Daria.Alshehabi@ised-isde.gc.ca

Cell: 819-360-2049

Sarah Trottier (Departmental Liaison)

sarah.trottier@ised-isde.gc.ca

Cell: 613-299-2406

Departmental contact for Minister's Office

The Departmental Liaison is the primary contact between your office and the Department and provides integrated and coordinated timely advice on behalf of the Department and in response to requests from your office, including:

  • Coordinating requests for information, briefing materials, and staff briefings for your office;
  • Managing and tracking documents entering your office, including the distribution and processing of decision dockets and ministerial correspondence
  • Communicating Ministerial decisions and requests for information from exempt staff back to the depart.

Day to day operations and administrative issues

The Departmental Liaison will also assist your office with day-to-day office requirements and liaise with the Office of the Corporate Secretary on administrative issues (i.e., finance and human resources, facilities and assets, IT and information management).

Chief of Staff, Deputy Minister's Office

Katherine Burke (DM Kennedy)

Katherine.burke@ised-isde.gc.ca

Cell: 613-513-4537

Office: 343-291-2830 

Matt Lundie (DM Blewett)

Matthaeus.lundie@ised-isde.gc.ca

Cell: 343-999-8152

Alexandre Dang (Associate DM Bilodeau)

Alexandre.dang@ised-isde.gc.ca

Cell: 343-571-7264

Liaison between DMs and Minister's Office

The DM's Chief of Staff acts as a liaison between DMs and your office, working closely with your Chief of Staff and the Department, ensuring ongoing communications and oversight of key files.

DM Office Operations

The Chief of Staff manages the operations of the DM's Office, including the requesting, tracking, and distributing of materials for information, discussion, and approval to you and your office.

Corporate Secretary

Ana Maia

ana.maia@ised-isde.ca

Cell: 613-323-2325

Office: 343-291-2811

Your office at 235 Queen Street is on the unceded and traditional territory of the Algonquin Anishinabeg.

Main contact for Minister's Chief of Staff on corporate services

The Corporate Secretary is the main point of contact for your Chief of Staff on budget and human resources, and provides a range of corporate services and supports to assist you and your office in delivering on your mandate.

Cabinet affairs

Manages the Memoranda to Cabinet process for ISED's portfolio and all related briefing materials; provides advice and updates on Cabinet committee agendas and coordinates/produces briefing material in support of committees for both ISED-led and OGD items.

Appointments

Provides advice and support on all Governor in Council and ministerial appointments within the ISED Portfolio, in coordination with the Privy Council Office and ISED Portfolio organizations as required.

Parliamentary affairs

Coordinates committee appearances, parliamentary returns, late shows and Opposition Day speeches, and the tabling of reports from the Department and Portfolio; provides advice on the drafting of Parliamentary Strategies for Memoranda to Cabinet; provides support for legislation and legislative processes; and provides general information on matters related to Parliament. Note that Question Period is supported by the Strategic Communications and Marketing Sector.

Executive correspondence

Manages and tracks incoming and outgoing ministerial correspondence relevant to the Minister's mandate, including invitations and meeting requests; coordinates proposed draft responses for ministerial review and signature; and provides professional editing services for ministerial correspondence and documents as required.

Executive planning and outreach

Plans and develops trip programs for ministerial tours (including support for Parliamentary Secretaries, when they are travelling on behalf of a Minister, and MP Pairings), domestically or internationally, to advance mandate and policy priorities; coordinates briefings and material in advance of trips, and provides logistical support working with ISED's sectors, regional offices, and embassies abroad. Trips also works with the Strategic Communications and Marketing Sector to receive information on events open to media outside the NCR. This includes ensuring adherence to protocols for regional and/or international health and safety, as well as for gifts and official hospitality.

Protocol and reception services

Manages the Executive Complex and related ministerial boardrooms which includes capability for hybrid meetings, interpretation, braille, and other accessibility features; provides hospitality and reception services for ministerial and/or departmental events as required; provides advice, support, and recommendations on all aspects of conference and meeting planning, protocol, and official visits (i.e. welcoming delegations, following government protocol on gifts for official hospitality); and provides phone reception services during regular business hours.

Finance

Ministers have a budget for exempt staff and for operating their offices. The Corporate Secretary will assist your office in areas such as the following: managing resources including budgets, salaries, assets, expenditures, and providing monthly reports; preparing forecasting estimates for operational requirements; reviewing and auditing of travel and hospitality claims; ensuring that proper signing authorities are in place; and providing advice and guidance on all financial matters, including contracting and acquisition regulations if required.

Human resources

All new exempt staff will receive information detailing compensation, leave, and benefits, and any required forms and supplementary documents to complete their onboarding process.

Ongoing support will be provided to the Chief of Staff and exempt staff for all HR related issues.

Facilities, IT assets & IM

Ministers and exempt staff have 24-hour access to the building at 235 Queen Street, 11th Floor, East Tower.

You will receive workspaces, mobile devices, laptops, and office equipment consistent with the departmental standard in place.

You will have full network access and access to MS Teams to hold online meetings (in addition to hybrid meetings from the office)

Ministerial staff are supported by a dedicated team of departmental IT specialists for informatics support, including after-hours and weekend support.

Ministers' offices are supported in information and records management for Cabinet documents, government records, ministerial records, and personal and political records.

Security

Security briefings will be arranged for ministers and their staff by the Privy Council Office and/or the Department's Chief Security Officer.

All ministerial staff will be informed of applicable security requirements, notably with respect to Cabinet documents.

The Minister and Chief of Staff will also be provided with secure phone, mobile, and videoconferencing capabilities.

The Privy Council Office will provide e-tablets for Cabinet business assigned to identified exempt staff.

Access to Information and Privacy (ATIP)

The Office of the Corporate Secretary processes requests and proactive disclosure requirements for the Department, administers the Privacy Impact Assessment Policy, provides training and advice to the Department, and provides notifications of impending requests and proactive disclosures and related sensitivities.

  • The Access to Information Act gives every Canadian citizen, permanent resident, individual, or corporation in Canada the right to request access to records that are under the control of federal government institutions, regardless of their format.
  • Now that you are working alongside a federal department, this means that the information you share and receive with officials in the Department is subject to this act. 
  • Proactive Publication:
    • The Access to Information Act calls for the proactive disclosure of certain documents, including your mandate letter; the briefing binder prepared for ministerial transition; the list of briefing notes sent to your office; Question Period notes that were prepared and used; and ministerial briefing materials prepared for parliamentary committee appearances.
    • The following items are also subject to proactive publication: departmental contracts, grants, and contributions over $25K; Portfolio reports tabled in Parliament; departmental and ministerial travel and hospitality expenses; Minister's office annual expenses; reclassifications of positions within the public service within the Department; and a list of completed ATIP requests. Deadlines for publication vary from 30 to 120 days.

Departmental services and supports: Key contacts

Title Name Contact information

Deputy Minister

Innovation, Science and Economic Development Canada

Simon Kennedy

simon.kennedy@ised-isde.gc.ca

Cell: 613-614-7684

Office: 343-291-2888

Deputy Minister

Economic Development, Innovation, Science and Economic Development Canada

Catherine Blewett

Catherine.blewett@ised-isde.gc.ca

Cell: 343-571-8523

Office: N/A

Associate Deputy Minister

Innovation, Science and Economic Development Canada

Francis Bilodeau

Francis.bilodeau@ised-isde.gc.ca

Cell: 613-415-6651

Office: N/A

Communications

Assistant Deputy Minister

Strategic Communications and Marketing Sector

Kendall Hembroff

Kendall.hembroff@ised-isde.gc.ca

Cell: 343-291-1652

Office: N/A

Annex C: List of commonly used acronyms