Innovation, Science and Economic Development Canada's 2024–2025 Departmental Plan

Table 2: Indicators, results and targets for departmental result: Canadian businesses and industries are innovative and growing.

Plans to achieve results

Departmental Result: Canadian businesses and industries are innovative and growing

Growing Canada's innovation ecosystems

Innovation Canada^{Footnote ii} offers programs and services to help Canadian businesses innovate and grow by accessing client-centered, simplified support to advance research and the development and commercialization of innovative technologies and products. Flagship programs like the Strategic Innovation Fund (SIF), the Global Innovation Clusters (GICs) and Innovative Solutions Canada are instrumental in fostering industrial innovation and growth while advancing other governmental priorities like reducing greenhouse gas emissions (GHG). With renewed funding of $750 million from Budget 2022, the five GIC's will continue their efforts to advance Canada's innovation ecosystems, promote investments in innovation and commercialization, expand their national and global presence, deepen their collaborations, and support the growth and scale-up of Canadian small and medium-sized enterprises (SMEs). In 2024–25, the GIC program will increase industry co-investments by raising the industry match ratio to $1.50 for every dollar committed by non-GIC partners by 2028. In addition, the program is expected to establish new collaborations involving funding partnerships for the Pan-Canadian Artificial Intelligence Strategy (PCAIS) and Canada's National Quantum Strategy. For instance, as part of the PCAIS, the Advanced Manufacturing Cluster^{Footnote iii} launched the AI for Manufacturing funding challenge, calling on companies to submit project proposals focused on commercializing AI or machine learning solutions in manufacturing. As a result, NGen, the organization leading the Advanced Manufacturing Cluster, will provide $19 million in funding for 12 AI projects in Canada's manufacturing sector. These projects are expected to enhance the competitiveness of Canadian manufacturing through the commercialization of Canadian AI innovations while building manufacturing capacity in the country.

In 2024–25, SIF will continue to support industrial transformation and growth, building on its $17 billion in research and development (R&D) investments to ensure the long-term sustainability of Canadian businesses in key industrial sectors including automotive, critical minerals and batteries, life sciences, semiconductors, aerospace, natural resources, and agri-food.

Through the Net Zero Accelerator Initiative, SIF will support Canada's goal of becoming a leader in clean technologies and help advance Canada's commitment to achieving net-zero emissions by 2050. For instance, SIF will advance the development of the battery innovation ecosystem by providing funding for the construction of E-One Moli's new $1 billion battery manufacturing and R&D facility in British Columbia, to support the production of lithium-ion batteries for industrial and consumer applications. SIF will also invest in electric vehicle (EV) battery manufacturing projects such as those by Volkswagen PowerCo, NextStar Energy and Northvolt Batteries North America, which will help reduce GHG emissions, decarbonize the transportation sector and strengthen Canada's domestic manufacturing capacity. ISED's partnership with Northvolt, in particular, will support the construction of its new EV battery manufacturing facility in Quebec—a $7 billion dollar investment—that will produce some of the greenest batteries in the world given its low carbon footprint. These investments in clean technology solutions demonstrate ISED's ongoing work toward meeting Canada's ambitious emissions reductions targets and securing Canada's battery supply chain. Supported by these investments, Canada ranked first in Bloomberg NEF's 2023 Global Lithium-Ion Battery Supply Chain Ranking.

Under Canada's Critical Minerals Strategy, in 2024–25, SIF will use targeted funds to accelerate investments in critical mineral projects, specifically prioritizing advanced manufacturing, processing, and recycling applications. To meet the rising demand for critical minerals and related manufactured products, ISED's investments will increase the supply of responsibly sourced critical minerals, while promoting innovation and sustainable practices across domestic and global critical minerals value chains. Since Canada is a leading global producer of many minerals, including nickel, potash, aluminum and uranium, investments in critical minerals have the potential to spur economic growth and manufacturing capabilities both domestically and internationally. Through ISED's expected  $551.3 million contribution to Umicore, a circular materials technology company, the federal government, in partnership with the Government of Ontario, will support Umicore's decision to build a new manufacturing facility in Loyalist Township, Ontario, to produce essential EV battery components using critical minerals such as nickel, lithium, and cobalt. This facility, the first of its kind in North America, will strengthen Canada's domestic EV and battery supply chain.

Supporting the industrial transformation of key sectors

Since March 2020, more than $2.1 billion has been invested in rebuilding Canada's vaccines, therapeutics and biomanufacturing capacity. In alignment with the Biomanufacturing and Life Sciences Strategy, ISED will support a $61 million project by Edesa Biotech—a biopharmaceutical R&D company focused on developing and commercializing novel clinical-stage drugs for autoimmune and inflammatory diseases, such as acute respiratory distress syndrome (ARDS). ISED is also investing through SIF to support a $119.3 million project by Pharmascience Inc. to expand its facility in Candiac, Quebec, by 2,500 square metres, increasing its capacity to produce sterile injectables. Both projects will be instrumental in increasing innovation in the life sciences sector, contributing to Canada's talent pipeline by creating new jobs, and developing world-class expertise and infrastructure to build a competitive biomanufacturing and life sciences industry.

Budget 2022 announced $30 million over four years to expand the CAN Health Network across Canada. By connecting health organizations with Canadian companies from coast-to-coast-to-coast, the Government of Canada's investment in expanding the CAN Health Network will support innovation in the health technology sector, grow businesses, create good well-paying jobs and generate prosperity for Canadians.

SIF will continue to provide targeted support to the aerospace industry—one of the most innovative and export-driven sectors in Canada, contributing close to $27 billion and more than 210,000 jobs to the economy. The SIF investment of $350 million to support the new Initiative for Sustainable Aviation Technology— a pan-Canadian, industry-led aerospace network focused on funding collaborative R&D projects with companies of all sizes across the Canadian supply chain—will help accelerate the green industrial transformation of the aerospace industry, generate high-value jobs, strengthen the sector's supply chains, and position Canada as a global leader in sustainable aviation.

Through the National Shipbuilding Strategy Value Proposition (NSS VP), the department will help ensure the long-term sustainability of the Canadian marine industry by requiring that shipyards with large vessel contracts support investments in three key areas—human resources development, technology investment and industrial development—that are equal to 0.5% of the value of the contracts they receive. For 2024–25, Irving Shipbuilding Inc. and Seaspan's Vancouver Shipyards have forecasted more than $41 million in combined NSS VP investments in Canada's marine industry.

Helping businesses navigate government support

Connecting businesses with government programs and supports at the federal and the provincial, and territorial level to facilitate growth and innovation remains a key priority for ISED. In 2024–25, ISED will liaise with government partners to optimize service provided through the Business Benefits Finder, a platform that uses a client-centred approach to streamline the process of connecting businesses with the services and programs they need to bolster their performance. ISED's Accelerated Growth Service, which helps entrepreneurs and businesses innovate and scale up through its advisory and growth services, will complement the Business Benefits Finder by assisting existing, innovative businesses in accessing government programs and services.

Similarly, the Global Hypergrowth Project (GHP) will support businesses in scaling-up and growing by convening various federal, provincial, and broader ecosystem partners to identify programming gaps and opportunities for Canadian companies. Announced in July 2023, the GHP will help businesses develop into anchor firms, which are responsible for creating business clusters and incubating other businesses, by assisting them in navigating complex regulatory regimes, expanding to new markets, and acquiring the right talent. To achieve these goals, eight Canadian businesses have been selected to receive tailored support through the project, including Clarius Mobile Health Corp. With help from the GHP, Clarius will be able to propel its growth and make its innovative portable hand-held ultrasound imaging device available to more clinicians around the world.

In 2024–25, ISED's national BizPaL office will continue supporting cross-jurisdictional partnerships focused on helping Canadian businesses find and access business licences and reducing the burden of duplication for businesses to meet regulatory, permitting and licensing requirements. The program will help users navigate Canada's regulatory landscape via an interactive artificial intelligence interface, improving access to timely, complete information and analytics through an Open Service Platform and the Service for Regulators project.

Increasing access to capital for Canadian businesses

ISED, through the Canada Small Business Financing Program (CSBFP), will continue increasing the availability of financing for Canadian small businesses looking to start up, expand, modernize, and innovate. In 2024–25, the CSBFP will gather information to support and inform a statutory comprehensive review report assessing the extent to which the program has met its goals over the last five years, including examining the provisions and operations of the Canada Small Business Financing Act. The report will propose recommendations to ensure that the CSBFP continues to adapt to meet the current economic conditions and future needs of small businesses.

As announced in Budget 2021, ISED's Venture Capital Catalyst Initiative (VCCI), managed by the Business Development Bank of Canada, will support innovation and job creation in Canada by increasing the availability of private sector capital for Canadian entrepreneurs with high-growth potential, particularly for those in the life sciences sector and those belonging to under-represented groups. VCCI will accomplish this through three streams: $350 million for funds-of-funds, a $50 million for supporting VC investments in life science technologies, and a $50 million for an inclusive growth stream dedicated to increase access to VC programs for underrepresented groups. In 2024–25, funding recipients for the second intake of the inclusive growth stream and will invest up to $25 million in five Canadian VC funds through this stream. Through VCCI's inclusive growth stream, ISED aims to advance diversity, equity, and inclusion in the Canadian VC ecosystem by providing additional capital to invest in innovative under-represented entrepreneurs.

Supporting a modern telecommunications network

As the demand for spectrum and telecommunications services continues to grow, ISED will continue to advance Canada's position as a global centre for innovation and world-class wireless infrastructure. In 2024–25, the department will launch a new Non-Competitive Local Licensing framework, offering 80 MHz of mid-band spectrum, which will provide users— including wireless Internet service providers, vertical industries, and Indigenous communities—with localized access to shared 5G spectrum.

With a commitment to fostering greater universal connectivity, ISED will implement a new Access Licensing Framework in 2024–25 to facilitate greater access to unused licence spectrum in rural and remote areas, including supporting the expansion of broadband services. Under this framework, ISED will also consult on and implement an Indigenous Priority Window, which will allow Indigenous-led businesses and Indigenous service providers access to spectrum that strengthens their Internet connectivity, improves access to emergency response services, and establishes reliable cell service.

Reinvigorating tourism in Canada

Building on the progress made last year, ISED will continue to implement new strategies to advance the long-term growth of the tourism sector. In 2024–25, under the Federal Tourism Growth Strategy (FTGS), the department will coordinate and promote measures to support the growth of Canada's tourism industry, particularly positioning Indigenous communities as attractive tourist destinations, by continuing to implement the $108 million Tourism Growth Program, through the regional development agencies, to deliver key tourism projects.

As part of the FTGS, ISED will collaborate with its federal, provincial, and territorial partners, industry stakeholders and Indigenous people to ensure that the needs of tourism businesses are being served. The FTGS is based on five strategic priorities: investing in tourism assets, embracing recreation and the great outdoors, partnering to grow Indigenous tourism, attracting more international events, and improving coordination through a Ministerial Tourism Growth Council. ISED will also provide $50 million to Destination Canada, with the expectation of hosting more business events in Canada and invest in maintaining Canada's network of trails and outdoor spaces through the Trails Tourism Strategy.

Indigenous tourism is a key segment of the industry that differentiates Canada as a premier tourist destination. ISED's continued support of this segment through the $20 million Indigenous Tourism Fund (ITF), announced in Budget 2022, will help rejuvenate the Indigenous tourism industry and ensure long-term, sustainable growth for Indigenous businesses and communities. As a component of the ITF, the department is collaborating with the Indigenous Tourism Association of Canada to roll out the first $10 million of the Micro and Small Business Stream, which will provide financial assistance, specifically non-repayable contributions of up to $25,000, to support export-ready micro and small Indigenous tourism businesses.

Developing talent for the digital economy

As Canada's key industrial sectors continue to evolve and digitize, ISED remains committed to equipping youth, students, graduates, and mid-career workers with industry-relevant experience to enhance their professional experience and preparedness.

In 2024–25, ISED will continue to administer programs aimed at increasing digital skills and employment experience among Canadian youth, including the Digital Skills for Youth (DS4Y) program, the Computers for Schools Internship program (CFSI), and the Business + Higher Education Roundtable (BHER). Through DS4Y, which connects post-secondary graduates with internships in small businesses and not-for-profit organizations, nine not-for-profit organizations have been selected to provide 179 internships that will equip youth with the skills and experience needed to transition to career-oriented employment. In 2024–25, the CFSI will provide 148 internships to help young people develop digital skills through paid, on-the-job experience refurbishing digital devices, which will increase their employability and marketability to prospective employers. Likewise, the BHER will seek to help emerging talent develop skills that will prepare them for the labour market and support business innovation and growth. It will aim to create over 7,500 work integrated learning opportunities for post-secondary students in 2024–25.

Launched in 2022–23, the Upskilling for Industry Initiative (UII) has committed $125 million in 2024–25 to support employers and SMEs, in better identifying their skills needs and develop new upskilling programming to meet them. Through Palette Skills Inc., the selected lead delivery participant,^{Footnote iv} UII will continue to support demand-driven short-cycle programs to meet the needs of employers in six high-growth sectors: digital technology, cybersecurity, agriculture technology, advanced manufacturing, clean technology and biomanufacturing. ISED expects to connect 15,000 Canadians, including those from under-represented groups, with new work opportunities by March 31, 2025, creating a responsive pipeline of upskilled workers for Canadian industry.

Departmental Result: Businesses, investors, and consumers are confident in the Canadian marketplace, including in the digital economy.

Creating equitable market conditions is critical to Canada's economic growth on the global stage. Through a focus on modernizing key regulatory frameworks and intellectual property products and services, ISED will continue its progress towards leveling the playing field for businesses, investors, and consumers, creating a robust and fair marketplace that balances economic growth with national security considerations.

Modernizing Canada's marketplace regulatory frameworks

In 2024–25, the Competition Bureau will support the government's efforts to modernize and update the Competition Act^{Footnote v} to promote and strengthen competitive markets. The Affordable Housing and Groceries Act received Royal Assent on December 15, 2023. Among other measures to make life more affordable for Canadians, the Act empowers the Bureau to take action against collaborations that stifle competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby. It also removed the efficiencies defence, which allowed anti-competitive mergers to survive challenges if corporate efficiencies offset the harm to competition, even when Canadian consumers would pay higher prices and have fewer choices. With a modernized Competition Act, the Bureau will be better able to protect and promote competition in Canada leading to lower prices, while stimulating innovation and economic growth. The Bureau will also continue its work with regulators and policymakers to assess the impact of new or existing policies on competition, championing the essential role of competition in the economy. Through the Canadian Digital Regulators Forum, the Bureau will strengthen information sharing and collaboration on digital markets and artificial intelligence (AI) with the Office of the Privacy Commissioner of Canada and the Canadian Radio-television and Telecommunications Commission. To ensure that anti-competitive behaviour is detected and deterred, the Bureau will continue to implement proactive monitoring and enforcement measures in areas such as deceptive marketing practices, cartels, problematic mergers, and digital services.

To protect the integrity of the Canadian insolvency system, ISED's Office of the Superintendent of Bankruptcy (OSB) will continue to modernize its directives, regulations, and IT systems in 2024–25 to reduce unnecessary burden on those it regulates and support confidence in the Canadian marketplace. Through its newly launched Debtor Compliance Management System, the OSB will leverage AI capabilities to detect and address debtor non-compliance.

In 2024–25, Measurement Canada, which has the legislative mandate to approve and oversee all measuring devices used in Canadian financial transactions, will prioritize modernizing and renewing legislation governing trade measurement, especially the approval and inspection of electric vehicle charging devices.

Through legislative amendments to the Investment Canada Act, ISED will continue to strengthen Canada's reputation as the world's top destination to invest. The amendments propose new regulatory measures for foreign investments that aim to improve compliance and information sharing with international counterparts concerning foreign investment reviews and national security assessments. Additionally, the amendments will grant the Minister of Innovation, Science and Industry the authority to impose interim conditions during a national security review of investments and accept binding undertakings from investors to mitigate any national security risks. These measures will not only foster a stronger investment climate but also grant ISED greater authority in reviewing any national security threats from foreign investments. Through timely processing of foreign investment reviews under the Act, ISED will assess foreign investments in Canada for likely net economic benefits and potential national security injury as well.

Promoting compliance among federally incorporated businesses

In 2024–25, ISED will notify corporations of the new reporting requirements under the Canada Business Corporations Act (CBCA), whereby federally incorporated businesses must proactively submit information on their beneficial owners or individuals with significant control of their business. The publicly accessible beneficial ownership registry, governed under the CBCA, will provide information about the ownership and control of Canadian corporations governed under the CBCA to help reduce the misuse of these corporations and strengthen the detection of tax evasion and fraudulent activities through improved transparency of beneficial ownership.

Promoting and protecting consumer interests

As consumer spending patterns and trends change because of inflation and rising food prices, ISED will continue to ensure that the voice of the consumer is represented through the Contributions Program for Non-Profit Consumer and Voluntary Organizations. In 2024–25, the department will provide $1.7 million to consumer advocacy organizations in Canada to conduct research projects, addressing issues such as digital consumer protection, systemic barriers to vulnerable consumers, affordability, and sustainable consumption. The program will also receive a $3.3 million budget increase to strengthen support for consumer advocacy, with a particular focus on areas where consumers have expressed great concern, including retail practices and rising grocery prices.

Advancing inclusive economic growth through intellectual property

In 2024–25, ISED will work toward making Canada's intellectual property (IP) system more inclusive, with a particular focus on the intersection of IP and the protection of Indigenous knowledge and cultural expressions.

IP protections, services and resources remain widely underutilized by Indigenous businesses and entrepreneurs in Canada as they face barriers to accessing Canada's IP system. As a result, the Canadian marketplace has been flooded with fraudulent imported Indigenous arts and goods, posing a threat to the economic viability of Indigenous communities. To address these barriers and support the protection of Indigenous IP, ISED will provide $150,000 in grants to Indigenous organizations through Indigenous Intellectual Property Program (IIPP) grants. The program will fund both small scale Indigenous-led projects, up to $15,000, and larger, more complex projects up to $50,000. The IIPP grants will also fund representatives from Indigenous organizations, up to $5,000, for their participation in World Intellectual Property Organization events and negotiations related to intellectual property, Indigenous knowledge, and Indigenous cultural expressions policy.

Through the IP Clinics Program—a grant program designed to foster the development of future IP experts by increasing university students' exposure to IP issues—ISED will provide $400,000 to eligible projects with a commitment to improving the understanding of IP and increasing access to IP services, including for women and Indigenous-led businesses. In support of the Government of Canada's Intellectual Property Strategy, the program will continue to deliver low cost or free IP services and resources to promote inclusive access.

In an effort to provide quality, timely IP services and resources to innovators, as well as safeguard IP rights, the Canadian Intellectual Property Office (CIPO), an agency under ISED, will continue optimizing turnaround times and enhancing client services through new technologies. Specifically, CIPO will continue implementing its Trademark Recovery Plan to reduce application backlogs by increasing examination capacity to restore turnaround times to internationally comparable standards by 2026.

As part of the National IP Strategy, CIPO will continue to advance IP awareness among Canadian entrepreneurs and innovators through the IP Awareness and Education Program. In 2024–25, CIPO will offer a number of training opportunities and information resources on IP, developed in partnership with Indigenous organizations, government departments, businesses, academia, and regional offices. For instance, through the IP Village—a collaboration between Canada's leading IP organizations—ISED will deliver a range of targeted educational resources and tools to support SMEs and women, Indigenous and Black entrepreneurs in managing and levering IP assets as part of their business and growth strategies.

Departmental Result: Canada has a clean and sustainable economy.

As Canada transitions to a cleaner, more sustainable economy, ISED remains committed to supporting the development of a globally competitive clean technology sector that addresses environmental challenges and provides high quality jobs for Canadians. Through the provision of key supports to researchers and businesses to develop and adopt clean technologies and products, ISED will contribute to Canada's annual incremental reductions in GHG emissions and the number of clean technology projects underway, helping Canada progress towards its net-zero emissions goal by 2050.

Helping to grow the clean technology sector

In 2024–25, ISED will support project proponents that have the potential to transition the Canadian economy toward a net-zero future and seek to deploy clean technology in economic sectors and technology areas such as carbon capture and storage, agriculture, electricity, and clean fuels, including hydrogen. The department will continue offering services and resources to Canadian companies to facilitate the development and financing of transformative projects in Canada's industrial sectors, while helping Canada achieve its 2030 and 2050 emissions reduction targets and its transition toward a competitive, low-carbon economy. These activities include acting as a central point of contact in the government for project proponents; coordinating and identifying funding opportunities, in partnership with key federal departments and their funding programs; and working with companies to position high-potential project concepts for success. 

Leveraging improved data on clean technologies

As the federal focal point for clean technology, ISED's Clean Growth Hub—an inter-departmental initiative co-led by ISED and Natural Resources Canada and in partnership with 16 other departments and agencies—will continue to ensure that clean technology stakeholders are better equipped to make decisions related to clean technology innovation and deployment.

In 2024–25, the Hub will address emerging needs of clean technology stakeholders, including: leveraging government procurement to support clean technology development, facilitating stronger collaborations between clean technology innovators and adopters; strengthening awareness of unique regional clean technology needs, and leveraging new digital resources to improve client experience. It will also play an important role as a focal point in facilitating connections, coordinating leading clean tech companies across Canada, and providing assistance to new or existing clients, ranging from young clean tech innovators with high potential for disruption to large firms in high-emitting industries. Through the implementation of its strategy and action plan to advance reconciliation, equity, diversity and inclusion, which seek to better understand and address the needs of under-represented groups in the clean tech sector, the Hub will proactively leverage existing government efforts to increase inclusion and provide targeted support to these groups.  

In parallel, ISED, in collaboration with Statistics Canada and Natural Resources Canada, will publish macroeconomic, industry and administrative data related to Canada's cleantech sector to help support private and public sector decision making. The Clean Growth Hub, which is the only source of authoritative data on Canada's clean tech sector, will conduct an analysis of economic trends and policy impacts on the sector. The Hub will further publish data measuring the contribution of Canada's cleantech sector to the Canadian economy— including data on employment and disaggregated data on the basis of labour force characteristics— and measure various economic, social, environmental and governance indicators. With the aid of the administrative data pillar of the Clean Tech Data Strategy, the Hub will work with federal programs in improving the consistency of data collection on federal cleantech investments and will lead an annual data collection exercise on these investments, which will allow for deeper analysis and understanding of federal programs that support clean technology.

Key risks

Canada, like many other countries, is dependent on global markets for its supply of critical minerals and lithium batteries. This reliance on external supply chains, combined with a lack of global market share in this industry, creates a risk that Canada will not be able to successfully transition to a low-carbon economy. Additionally, as the battery market is already very competitive, there is a risk that firms receiving funding will not be able to compete in the global market. To mitigate these risks, Canada will continue to strengthen its domestic supply chain through the Government of Canada's recently announced special agreements with industry partners—NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America— to anchor the production of lithium batteries in Canada, helping to develop more resilient supply chains. These three major investments will help solidify Canada's position in the global supply chain and attract the business of automotive manufacturers and critical minerals suppliers, thereby creating a sustainable domestic ecosystem.

Additionally, in light of increasing interest rates and inflation combined with budgetary constraints , there is a risk that some programs, such as the Strategic Innovation Fund, the Global Innovation Clusters and the Accelerated Growth Service may be unable to deliver the planned level of activities and projects in 2024–25. In response, ISED has implemented several measures to minimize disruptions to funding and planned activities. For example, ISED is developing strategies to manage potential project cancellations or delays, including project pipelines that can be leveraged to reinvest this funding. The department is also conducting forecasting exercises with funding recipients to ensure that their spending is on track and that potential lapses are identified and addressed as early as possible. Furthermore, ISED will implement quarterly results monitoring and reporting, through committee reviews, and improve strategies for recipient selection to ensure that the expected results of projects are met.

Related government priorities

Program inventory

Companies, Investment and Growth is supported by the following programs in the program inventory:

• Business Innovation
• Spectrum and Telecommunications
• Digital Service
• Economic Outcomes from Procurement
• Tourism
• Support for Small Business
• Talent Development
• Intellectual Property
• Competition Law Enforcement and Promotion
• Marketplace Protection and Promotion
• Clean Technology and Clean Growth

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase.^{Footnote vii}

Description

Support and enable business-led investment and strategic collaborations for leading- edge technology development and commercialization; maintain and strengthen Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

Quality of life impacts

The Science, Technology, Research and Commercialization core responsibility aligns with the "Prosperity" domain of the Quality of Life Framework. The program within this core responsibility focuses on maintaining and strengthening Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

Under the "Prosperity" domain, the "investment in in-house research and development" indicator aligns with ISED's departmental results indicator, "percentage of Canada's higher education research and development funded by business." Both indicators recognize the importance of investments in research and development to support innovation and the commercialization of new products, services, and technologies. ISED also tracks Canada's rank among OECD nations on the average relative citation (ARC) score of science and research publications. Key initiatives under this core responsibility focus on the transfer of knowledge within the Canadian research ecosystem.

Results and targets

The following tables show, for each departmental result related to Science, Technology, Research and Commercialization, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved for 2024–25.

Plans to achieve results

Departmental Result: Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer.

Supporting coordinated federal investments

The government allocates funding to TPOs that play an important role in the Canadian science and research ecosystem by seizing unique opportunities, filling gaps in federal programming in areas of priority to the government, providing services nationally, or deriving advantages from ST&I activities being delivered at arms-length from the federal government. TPOs are independent, not-for-profit organizations that have highly diverse mandates and areas of expertise and cover a wide spectrum of ST&I activities.

In response to the need for greater transparency and accountability related to funding decisions, Budget 2019 established the SSF, administered jointly by ISED and Health Canada. This new competitive approach to investing in TPOs affirms the importance of a credible, principles-based merit-review process informed by the advice of independent external experts chosen based on high ethical standards, expertise, and diversity of perspectives. This approach was recommended by an independent advisory panel and external monitoring of this approach will ensure that it is fair and appropriately targeted.This marks a foundational change in how funding is provided to organizations in the science and research ecosystem. Through this coordinated approach, ISED and Health Canada are better equipped to make funding decisions and assess where there may be gaps in the ecosystem.

The SSF will act as a key funding vehicle for the science and research community and will ensure clear alignment with program objectives and expected outcomes. Activities funded under the SSF are expected to enhance internationally competitive, leading-edge research in areas critical to the health, and the economic and social well-being of Canadians; to develop, attract and retain world-class research and innovation talent in scientific areas that are aligned with Canada's priorities; to accelerate the exchange of research results and the translation of this knowledge into action in Canada and abroad; and to strengthen evidence-based decision making, innovation skills development and science culture.

Following a competitive process, 24 successful applicants have been selected^{Footnote ix} to receive funding through the SSF in 2024-25, pending the finalization of contribution agreements. This first year of a five-year cycle of funding under the SSF will allow the government to provide direct financial support for organizations to advance both fundamental and applied research. ISED, in partnership with Health Canada, will work closely with SSF recipient organizations in 2024–25 to ensure their activities are aligned and positioned to meet expected program outcomes.

Accelerating the adoption and commercialization of artificial intelligence

In 2024-25, the Department will continue to support research and development in key emerging sectors such as artificial intelligence (AI) through the ongoing implementation of the Pan-Canadian Artificial Intelligence Strategy (PCAIS).

The PCAIS aims to drive the adoption of AI across Canada's economy and society. Through the three pillars—commercialization, standards, and talent and research, the PCAIS seeks to connect Canada's world-class talent and research capacity with federal programs that facilitate commercialization and technology adoption in order to ensure that Canadian ideas and knowledge are mobilized and commercialized domestically.

In support of the commercialization and talent and research pillars of the PCAIS, the $60 million fund for the national AI institutes —Amii in Edmonton, Mila in Montréal, and the Vector Institute in Toronto— aims to help translate research in AI into commercial applications and increase the capacity of Canadian businesses to adopt these new technologies. These three not-for-profit corporations are each receiving funding of up to $20 million over five years to support the advancement of AI research, training, and innovation. For example, Amii will advance leading-edge research in AI by funding academic research and encouraging industry leaders to invest in Alberta's world-leading talent and expertise. In 2024‒25, contributions to these institute will support capacity-building among business, health, and not-for-profit partners.

In 2024‒25, ISED will continue to monitor and support the ongoing implementation of the Digital Research Infrastructure (DRI) Strategy, to ensure Canadian researchers have the tools they need to conduct leading-edge research. Under the strategy, ISED is providing funding to the Digital Research Alliance of Canada (DRAC) for the planning, procurement, installation, operation and allocation of computing infrastructure to increase computing capacity for AI researchers. In 2024‒25, DRAC will continue to coordinate and deliver national services in advanced research computing, research data management and research software, while also promoting innovation and expanding the network of support and resources that are available to academic and research communities.

CANARIE, the Canadian Network for the Advancement of Research, Industry and Education (CANARIE) will advance the DRI Strategy by funding initiatives such as the expansion and maintenance of the National Research and Education Network (NREN)—which connects more than 750 Canadian universities, colleges, cégeps, research hospitals, government research labs, school boards, business incubators and accelerators. Specifically, through the Digital Accelerator for Innovation and Research (DAIR) program, CANARIE will continue to accelerate innovation and the commercialization of products and services by providing Canadian start-ups with free cloud resources and access to expertise in next generation technologies.

Enhancing Canada's research ecosystem and leading-edge technology development in quantum science

In 2024–25 the National Quantum Strategy (NQS) Secretariat will continue to oversee the coordination and integration of quantum R&D in Canada, guiding investments through the strategy's three pillars: quantum research, talent and commercialization. To do so, the secretariat will continue to work with key partners such as the Quantum Advisory Council, the Natural Sciences and Engineering Research Council of Canada, the National Research Council of Canada, Mitacs, Canada's Global Innovation Clusters, Innovative Solutions Canada (ISC), and ISED's Regional Development Agencies to look for solutions in several quantum technology areas such as computing, software, communications and sensors.

Additionally, under the NQS, ISED will provide another year of funding to Quantum Industry Canada, a consortium of Canadian quantum technology industries, which will increase internal capacity and improve the effectiveness of knowledge transfer between key groups to support the development, scaling and commercialization of innovations.

In 2024–25, work will continue developing of the Pan-Canadian Genomics Strategy in partnership with the NRC, taking into consideration the 'What We Heard' report published in the spring of 2022, which underscored Canada's potential in genomics with existing strengths in genomics research.

Canada has a small number of lab-to-market programs that aim to increase commercialization awareness and skills among early researchers and students. Budget 2022 provided funding for a national lab-to-market platform for students and researchers at post-secondary institutions to explore the commercial potential of their work, with the aim of filling gaps in funding to support post-secondary institutions in creating or expanding lab-to-market programming. In 2024-25, ISED will work with program delivery partners to launch the new national lab-to-market platform whereby successful post-secondary institution applicants will receive funding to develop shared training curriculum, leverage respective areas of sectoral or technology specialization, and engage in cross-promotion and networking as they build and expand their lab-to-market program offerings. A new annual survey, to be launched in fall 2024, will assess how knowledge created at Canada's universities, colleges and research institutes generates commercial outcomes, as well as broader social and economic benefits for Canadians.

Strengthening international scientific collaboration

In 2024–25, in collaboration with Global Affairs Canada, ISED will be joining Horizon Europe, the world's largest collaborative science, research and innovation program. As a result, Canadian researchers and innovators will be able to access a broader range of research opportunities in areas such as health; culture, creativity and inclusive society; civil security for society; digital, industry and space; climate, energy and mobility; and, food, bioeconomy, natural resources, agriculture & environment. The benefits of association to Horizon Europe include the ability to lead projects, receive direct funding and collaborate with European partners and other associated countries in various research and innovation areas.

Investing in Cybersecurity

In 2024–25, the Cyber Security Innovation Network (CSIN) program will seek to enhance R&D, increase commercialization, and further support the development of skilled cyber security talent across Canada. ISED's role is to implement, oversee and monitor the CSIN program, as well as provide funding for the selected successful projects. The CSIN program will help foster a strong national cyber security ecosystem and position Canada as a global leader in cyber security.

As the program's lead, the National Cybersecurity Consortium (NCC) launched an initial call for proposals in April 2023, which led to a partnership between telecommunications company Ericsson, and researchers from Concordia University, the University of Waterloo, and the University of Manitoba for a project to investigate the security of 5G networks. The project will receive $1 million in funding from the NCC over three years and aims to design and implement technologies that can prevent, predict, detect, and mitigate cyber threats in 5G networks using machine learning and AI. In 2024–25, a second national call for proposals will be launched to continue to support the growth of a comprehensive and collaborative Canadian cyber security innovation ecosystem through academia-industry collaboration.

Key risks

Due to the sensitive nature of cyber security R&D and the innovation activities undertaken by the NCC in leading the CSIN, the network may be targeted for its data and intellectual property. While Canada maintains an open and collaborative research environment, it has increasingly been the target of foreign interference activities that, pose a threat to Canada's research ecosystem, and to as national security.

To mitigate the risk of targeted espionage, in collaboration with national security and intelligence organizations and Canada's granting agencies, ISED will continue with the phased implementation of the National Security Guidelines for Research Partnerships in 2024–25. These guidelines are used to assess whether aspects of a research project pose unacceptable risks to national security and if these risks cannot be mitigated, the project will not be funded. The guidelines already apply to the Alliance Grant program and the Canada Biomedical Research Fund.

Related government priorities

Program inventory

Science, Technology, Research and Commercialization is supported by the following program in the program inventory:

• Science and Research

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase.^{Footnote x}

Description

Support the creation, transfer and diffusion of knowledge to ensure that Canadians, including under-represented individuals, are equipped with the skills and tools to participate in an innovative, high-growth economy; advance a culture of innovation where Canadians are driven to address local, regional, national and/or global challenges; benefit from growth of the middle class across communities; have increased access to affordable broadband and mobile Internet, including in rural and remote regions; and are protected and informed consumers.

Quality of life impacts

The People, Skills and Communities core responsibility aligns with the "Prosperity" domain of Canada's Quality of Life Framework, with its focus on improving participation in the Canadian economy for various segments of the population, particularly the emphasis on broadband access. For example, one of the indicators in the "Prosperity" domain is "access to high-speed Internet," measured by the proportion of households that have access to high-speed Internet services, which is also one of ISED's Departmental results indicators.

This core responsibility also aligns with the inclusion lens of the Quality of Life Framework, as several of ISED's programs focus on reducing barriers and enhancing access to financial and non-financial supports for entrepreneurs from various equity-deserving groups, including women, racialized people, and members of the 2SLGBTQI+ communities.

Results and targets

The following table shows, for each departmental result related to People, Skills and Communities, the indicators, the results from the three most recently reported fiscal years, and the targets and target dates approved for 2024–25.

Plans to achieve results

Departmental Result: : People and communities from all segments of Canadian society participate in the economy.

In 2024–25, ISED will continue to provide people from all regions of the country with the necessary access, tools, and skills to participate in the digital economy. In support of Canada's Connectivity Strategy, ISED will continue to advance connectivity and bring reliable high-speed Internet access to households and businesses across Canada through the $3.225 billion Universal Broadband Fund (UBF). For instance, ISED will continue to roll out UBF projects across Canada to further advance connectivity in rural and remote areas of the country, such as in the example of Saskatchewan, where the UBF brought fibre-optic Internet to the communities of Thode and Shields, allowing nearly 350 households and other local businesses (e.g., those in the tourism industry) to benefit from access to remote schooling, work, healthcare and connecting with loved ones. These efforts will support our goal of 98% of Canadian households having access to high-speed internet by 2026, and 100% by 2030.

To provide high-speed Internet service to the hardest to reach households, the Government of Canada has entered into a $600 million agreement with Telesat to secure capacity on its low Earth orbit (LEO) satellite constellation, Telesat Lightspeed. Through Telesat Lightspeed, Internet service providers (ISPs) will be able to offer services to Canadian households at a reduced rate, bringing Canada closer to meeting its 2030 100% connectivity target. ISED will continue to monitor Telesat's progress towards a 2026 launch and 2027 service date, working with Telesat to connect a total of 40,000 rural , remote and Indigenous households in satellite-dependent communities, including in the Far North.

Through the Connecting Families Initiative (CFI), ISED will continue to promote affordable Internet access for low-income families and seniors who face affordability barriers. In partnership with ISPs, ISED will continue to facilitate access to affordable Internet plans for the hundreds of thousands of households that need it most. Specifically, in 2024–25, ISPs will provide the newest service package of 50/10 Mbps Internet speeds for $20 per month, along with the previous package (10/1 Mbps) at $10 per month.

To enhance awareness and access among those who are eligible , the CFI will be promoted through mailouts to eligible individuals and households, inviting them to register through the program's web portal. Working with the Canada Revenue Agency and Employment and Social Development Canada, ISED will explore additional means beyond mailouts to reach the target population, potentially through emails. A social media campaign, coupled with other social media engagement strategies and webinars with community-based partner organizations, will also help broaden awareness of the CFI. These efforts will serve to provide more information about the program and support organizations in helping those who have language barriers or digital literacy challenges to register and to participate in the CFI.

In addition to improving Internet access, ISED, through the Digital Literacy Exchange Program (DLEP), will continue to support not-for-profit organizations in developing and delivering digital literacy skills training for those who face barriers to participating in the digital economy. The program's second phase, DLEP 2.0, aims to provide digital literacy training to 100,000 individuals, including persons with disabilities, Indigenous people, individuals who do not speak English or French at home, seniors, individuals who have not completed high school, individuals with low-income, residents in rural and remote areas, newcomers to Canada, and individuals from official language minority communities.

Through these collective efforts and their focus on tackling systemic barriers to economic participation, the Department will help foster an increasingly accessible, and inclusive digital economy by providing everyone in Canada with the access, tools, skills, and affordable services they need.

Diversifying Canada's entrepreneurial ecosystem

As Canada's entrepreneurial landscape continues to evolve, various groups, including women, Indigenous people, and other racialized minorities, remain under-represented in the entrepreneurial ecosystem. In 2024–25, ISED's programs will continue to dismantle the barriers faced by these groups by providing access to financing, business tools and support services so that all equity-deserving groups have equal access to the resources needed to start and grow their businesses. By investing in diverse entrepreneurs, ISED will unlock new and existing potential in the business community, making Canada's entrepreneurial ecosystem more accessible by providing opportunities and support for individuals from equity-deserving groups to start, scale, grow, and maintain their businesses.

Through the Women Entrepreneurship Strategy (WES), the Black Entrepreneurship Program, and the newly established 2SLGBTQI+ Entrepreneurship Program, ISED will continue to facilitate access to financing, networks, mentorship, and business supports, such as financial planning services and training, for under-represented entrepreneurs across Canada.

In 2024-25, the WES Ecosystem Fund will continue to strengthen capacity within the entrepreneurship ecosystem and offer business supports to diverse women entrepreneurs, as well as those in rural and remote areas. An investment of $65 million will fund 24 projects led by not-for-profit organizations to offer supports such as training, mentorship and financial literacy. Furthermore, the WES Ecosystem Fund will continue to strive to serve at least 12,000 women entrepreneurs across Canada annually. The WES Ecosystem Fund will support the École des entrepreneurs du Québec FAIR.E project, which will deliver three transformational learning programs—free-of-charge—to help women entrepreneurs launch, boost and grow their businesses. The project will serve up to 1,800 women in six provinces: Quebec, Ontario, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador. Finally, financing and access to capital will be offered to women entrepreneurs through the $55 million Women Entrepreneurship Loan Fund, which provides individual loans of up to $50,000.

To bolster the representation of under-represented groups in Canada's entrepreneurial ecosystem, the $160 million Black Entrepreneurship Loan Fund (BELF)—made up of $30 million from the Government of Canada and $130 million from the Business Development Bank of Canada (BDC)—will continue to provide individual loans of up to $250,000 for Black business owners and entrepreneurs. The BELF administrator, the Federation of African Canadian Economics (FACE), in partnership with BDC, has approved over 500 applications, representing more than $46 million in loans. In 2024-25, the Black Entrepreneurship Ecosystem Fund will continue to support 43 not-for-profit organizations across the country, in providing training, mentorship, networking and financial literacy services to Black entrepreneurs and business owners. Entrepreneurs who identify as 2SLGBTQI+ (Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, or other sexually or gender diverse people) make sizable contributions to the Canadian economy, yet they continue to face systemic barriers to starting and growing their businesses. Through the 2SLGBTQI+ Business Scale-Up program, totalling $13.5 million in funding, and in partnership with Canada's 2SLGBTQI+ Chamber of Commerce (CGLCC), ISED will help 2SLGBTQI+ entrepreneurs across Canada grow their businesses by implementing a national mentorship program, improving access to corporate procurement opportunities, and helping 2SLGBTQI+ entrepreneurs and businesses become export ready. The Business Scale-Up program plans to support 250 small and medium-sized enterprises (SMEs) by March 31, 2025, including 55 SMEs owned and managed by 2SLGBTQI+ individuals who also identify as members of another equity-deserving group.

Within the venture capital (VC) ecosystem, women entrepreneurs continue to face systemic barriers to accessing venture capital funding. To address these barriers and build a more inclusive risk and venture capital environment for women in Canada, the Venture Capital Catalyst Initiative (VCCI) will continue to increase women entrepreneurs' access to VC funding, contribute to increasing the representation of women in the VC industry, and help ensure that the VC industry is sensitive to gender and potential unconscious bias. VCCI's projects seek to facilitate capacity building and skills development opportunities as they relate to training and education, mentorship and coaching, and advisory services.

Additionally, the Small Business and Entrepreneurship Development Program (SBEDP) General Fund received $101.4 million, as announced in Budget 2021, to support national/pan-Canadian not-for-profit organizations into assisting SMEs across Canada, including those led or owned by members of equity-deserving groups, to develop and grow. The SBEDP General Fund has been used to support several entrepreneurship initiatives, including the $25 million 2SLGBTQI+ Entrepreneurship Program and the renewal of the Trade Accelerator Program

The Department will also continue to build knowledge and collect data on under-represented entrepreneurs to create a more inclusive and supportive business environment through the Women Entrepreneurship Knowledge Hub (WEKH), the Black Entrepreneurship Knowledge Hub (BEKH), and the 2SLGBTQI+ Knowledge Hub, which conduct research on the state of the entrepreneurial ecosystem for each group. To provide evidence-based research to inform the design and delivery of targeted supports for women entrepreneurs, the WEKH, led by Toronto Metropolitan University, will continue to publish the State of Women's Entrepreneurship annual report, as well as reports and articles on women entrepreneurs across a variety of sectors, such as cleantech, agriculture, arts and culture, and procurement. To further dismantle the barriers experienced by women entrepreneurs, the WEKH will continue to add more women entrepreneurs to its See It. Be It. database of over 1,800 diverse Canadian women entrepreneurs.

The BEHK, administered by Carleton University's Sprott School of Business and the Dream Legacy Foundation, will continue to work with community partners to advance research on the state of Black entrepreneurship in Canada and help identify barriers to success, as well as opportunities for growth, for Black entrepreneurs. To support this work, the BEKH will conduct a range of research activities. BEKH will also continue to convene Black Entrepreneurship Program stakeholders, building on the successes and lessons learned from its annual symposiums in 2022 and 2023. Similarly, the 2SLGBTQI+ Knowledge Hub will conduct research and collect data to create a clearer picture of the entrepreneurship landscape for the 2SLGBTQI+ community and the challenges 2SLGBTQI+ entrepreneurs face.

In 2024–25, ISED will continue to challenge Canadian organizations to increase the representation and inclusion of diverse groups in senior leadership positions through the 50 – 30 Challenge, which aims to achieve gender parity (50% women and/or non-binary people) and significant representation (30%) of members of other equity-deserving groups on Canadian boards and/or in senior management. The five Ecosystem Partners — Colleges and Institutes Canada, UN Global Compact Network Canada, the Ted Rogers School of Management's Diversity Institute, the Women's Economic Council and Egale Canada— will continue to support challenge participants by delivering tools, services and resources to help them meet the 50 – 30 Challenge objectives.

Bolstering the digital presence of Canadian businesses

ISED is committed to helping Canadian businesses, especially SMEs and businesses owned by under-represented entrepreneurs, take advantage of digital technologies. Through the Canada Digital Adoption Program (CDAP), ISED will provide funding opportunities and expert advice to help SMEs digitalize their operations. In 2024–25, the Department will continue to help SMEs establish a digital presence and to provide job opportunities to youth—by hiring and training them as e-commerce advisors—through CDAP.

Through its Grow Your Business Online component, CDAP will continue to provide eligible businesses with micro-grants of up to $2,400 for costs associated with the adoption of digital technologies and with assistance and e-commerce advisory services. By focusing on awareness-building activities and user-centric enhancements, CDAP will continue to increase its uptake to maximize the value and impact of the program for participating businesses.

Through CDAP's Boost Your Business Technology component, additional incentives will be offered in the form of interest-free loans through BDC and individual wage subsidies of up to $7,300 for youth employment placements, to support SMEs in implementing their digital adoption plans to improve their productivity and competitiveness.

ISED, through the Trade Accelerator Program (TAP), will continue to help SMEs take advantage of international market opportunities by increasing their exporting capabilities. TAP is delivered by six regional chambers of commerce across Canada and will support these organizations in guiding participating SMEs to achieve an increase in the value of their exports over the course of their participation in the program through access to networks, training and advice from Canada's top export advisors.

Key risks

Due to ongoing procurement and supply chain challenges, labour shortages, and inflation, combined with unexpected events such as extreme weather and wildfires, there is a risk of delays and cost overruns for some projects under the UBF and Telesat's LEO satellite constellation. ISED will continue to monitor the progress of these projects and to work closely with funding recipients to mitigate risks on a case-by-case basis to ensure that the programs remain on track to meet the government's connectivity targets.

Given the systemic barriers that people from under-represented groups continue to face in accessing financial and non-financial support services, there is a risk of insufficient program uptake or use by eligible recipients. In addition, there is a risk that ISED's programs may not sufficiently address the needs of their target populations because of the changing economic climate, the evolving needs of SMEs and entrepreneurs, and the limited availability of data on the specific entrepreneurship barriers that some equity-deserving groups face. To mitigate these risks, ISED will undertake targeted outreach and engagement activities to ensure that programs reach their audience and that eligible individuals benefit from key services. ISED will also continue to leverage research and data from the various knowledge hubs and work closely with community-based organizations to co-develop services and supports, such as training, to ensure that programming is relevant, useful and culturally appropriate for the target audience.

Related government priorities

Program inventory

People, Skills, and Communities is supported by the following programs in the program inventory:

• Support for Under-represented Entrepreneurs
• Bridging Digital Divides

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase.^{Footnote xii}

Description

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Plans to achieve results

Related government priorities