Thank you, Mr. Chair.
Mr. Chair, committee members, thank you for having me here today representing Polytechnics Canada, and president of Saskatchewan Polytechnic, Larry Rosia.
As we enter into the fourth industrial revolution, Canada's future looks bright. We are well-positioned to harness new technologies, to adopt new production processes, and to develop a workforce that has the future-forward skills needed to succeed in this new world of work. However, as bright as the prospective future looks, our economy faces wide-ranging challenges. Two of these significant challenges are productivity and competitiveness. As I will outline today, polytechnics are one important economic development lever that addresses these persistent challenges, but are underutilized and under-leveraged in federal policy and programs.
Polytechnics are leaders in creating innovation-led inclusive growth and are leaders in the ways in which we contribute to made-in-Canada talent development. This is how Canada's polytechnics contribute to productivity and competitiveness most: innovation capacity and human capital development. Yet, we can do more, but only if the federal government can right-size, re-balance, and re-tool its support for polytechnic education and innovation.
Polytechnics build Canada's innovation capacity by helping firms bridge the commercialization gap. We move products from the laboratory and shop to markets and to people, and ultimately ensure that these products are creating revenue and income for Canadians.
As much as connecting people to products and makers to markets contributes to our productivity and competitiveness, in Canada we don't value the near to market end of the innovation spectrum as highly as we value basic research. Canada is great at supporting ideas, but we must be stronger in our support for the commercialization of those ideas.
Disappointingly, of the $3.1 billion the government spends annually on the higher education R and D, only 1.7% or $53 million is available to the entire sector of polytechnics in colleges, primarily through one program. The remainder goes to university-driven research, leaving important applied research successes to wither away or suffer from underutilization.
As you are aware, industry is critical to driving innovation. Institutions such as Saskatchewan Polytechnic are nimble, and have strong track records of working with industry on applied research projects. A lack of research funding and restrictive policies would prevent us from meeting the huge demand from companies for R and D projects that would lead to the commercialization of products and services, and would diversify and grow the provincial and national economies.
In 2016 alone, the college and community innovative program supported 2,815 firms across Canada. However, current funding levels cannot effectively meet the demand. Presently, the program is oversubscribed and faces a $13-million shortfall. The irony is that the message this sends to industry, that innovation is not that important particularly for the small businesses that want to work with us to solve their problems, contradicts the government's message.
To support innovation-led growth and productivity, we urge the committee to support our call for the federal government to right-size its funding to polytechnic innovation by doubling its current $53-million commitment.
On talent, we know the world of work is changing. It's critically important we invest in our people to support an innovative, productive, competitive, and inclusive new economy.
We have a number of recommendations on talent and skills. I want to focus in particular on the skilled trades. Canada's polytechnics produce highly skilled, multidisciplinary talent that grows both the knowledge economy and the know-how economy. Yet, we often forget that the knowledge economy and the know-how economy enable each other.
As the impact of technology increases, our skilled tradespeople are critical to the success of the new world of work. They are in fact automation enablers. The government's ambition to improve productivity and competitiveness, while reducing income inequality and growing Canada's middle class, requires smarter use of higher education's contribution to the economy and society.
Canada's polytechnics are ready to contribute, and today I urge the government to harness us better.
Thank you very much. I look forward to your questions.