Thank you, Mr. Chair.
I appreciate the witnesses coming forward today. Many of you are speaking about investments in the next budget, and that puts you on the same wavelength as the official opposition. We've been saying that because of the economic slowdown that's anticipated over the next few months, this budget has to be a budget that looks to investment in a number of key sectors in order to push a jobs agenda.
I want to come back to Mr. Conway and Mr. Kennedy, because both of you have spoken about the scientific research and experimental development program that exists. As you know, according to the Jenkins report, we've seen a real failure in research and development. Canada is the last among industrialized countries in direct investment in R and D. We're last among industrialized countries in the development of PhDs, and we're among the last industrialized countries in patent development. So there's been a real failure in R and D, there is no doubt. And if we want to have an innovation economy, we need to make significant changes.
I'd like you to speak to the changes you are proposing for the SR and ED program. Number one, what would the fiscal impact be? And number two, I'd like you to speak to the government's failure around the development of PhDs and the development of higher education and access to higher education as well as the fact that we're last among industrialized countries for direct investment in R and D.
We've had a number of presentations that have obviously called for more direct investment in R and D by the federal government, but to what extent do you think the federal government should be investing directly in R and D so that we can stimulate that innovation economy?
That's directed to Mr. Kennedy and Mr. Conway.