A visit to Atlantic Canada is an opportunity to witness a region in transition. After years of strategic investment, innovation and innovative firms are emerging as increasingly critical components of the economic and social fabric as a host of recent indicators demonstrate.

Canada’s venture capital (VC) supply is broken. The industry is in near collapse with little activity beyond small follow-on investments in existing companies. The federal government should therefore be congratulated for utilizing one of its most effective mechanisms — the Business Development Bank of Canada — to address one of the biggest shortcomings in the financing system for tech-based firms.

Nearly two years after its formation, the federal government’s primary body for S&T and innovation advice has weighed in with its first public report. State of the Nation 2008 is the Science, Technology and Innovation Council’s (STIC) mandated report on how Canada stacks up against other innovation nations and its findings are far from encouraging.

The federal government appears increasingly anxious to demonstrate its support of university research. In the past week, two high-profile events have been staged to announce the results of new research chairs programs unveiled in the Feb/08 Budget.

Canada’s research-intensive universities are somewhat schizophrenic places these days. From a financial perspective, many have taken a pounding with the recession slicing billions off the books as endowments shrink in value.

How long is too long between the decision to fund a particular R&D proposal and its public disclosure? For the 16 months it took for NSERC to announce its decision to fund seven new strategic networks, the answer is clearly far too long.

David Fung relays a story about the difference between the Chinese and Canadian approach to tech-based commerce that should resonate with anyone concerned about Canada’s ability to compete on the international stage.

Most people would agree that Canada’s research funding organizations should not be excused from a strategic review of their activities. Reviews of this nature are an essential component of ensuring that any publicly funded enterprise remains on a clear and productive path towards its stated objectives.

There have been many criticisms of the S&T provisions of the recent Budget but the one that resonates most forcefully is lack of vision. Perhaps more pointedly, is displays a lack of comprehension for where research fits in the overall system of innovation.

There’s increasing speculation that next week’s Budget may mark a turning point in the government’s attitude towards S&T. Recent comments by a cabinet minister (Dr Gary Goodyear) and a senator (Dr Wilbert Keon) suggest that the Harper administration may be following the US lead and employing S&T as a means to weather the deepening recession.