I last appeared before this committee in March, in the context of tabling main estimates, and today I'd like to take this opportunity to update you on several fronts.
I wish to provide a brief overview of current economic challenges and key elements of our government's response to date, and then update you on three departmental policy priorities going forward: one, strengthening manufacturing; two, boosting business innovation; and, three, supporting the digital economy.
As I indicated the last time, as the Minister of Industry, I am responsible for a large number of different policies and programs designed to strengthen the competitiveness of Canadian businesses. In reality, we are working hard to fulfil our mandate in the context of a fragile recovery of the world economy. Businesses throughout Canada are still facing numerous challenges.
Our government understands these challenges. That is why we have taken action to promote long-term, strong and lasting economic growth and to promote the creation of value-added, high-quality jobs for Canadians across the country. When the recession hit, we made a weighty decision to implement our Economic Action Plan so as to support the Canadian economy.
Our government provided vital support to businesses and workers across the country when they have needed it most. This targeted stimulus plan worked: since July 2009, employment has increased by almost 822,000 jobs. This means more than 390,000 additional jobs now than there were before the recession. More than 98% of all jobs created since July 2009 have been in full-time positions, more than 75% are in the private sector, and about two-thirds are in high-wage industries.
Our economic output is well above pre-recession levels, and Canada has been ranked the first among the G-7 in tax competitiveness. Now that the economy is recovering, we are continuing to take action in key areas to strengthen Canada's economy and ensure long-term prosperity.
To support business, we introduced a hiring credit to help companies recruit employees and we are keeping taxes low and reducing red tape.
To foster an innovative economy, in the economic action plan for 2012 we committed $1.1 billion over five years to directly support research and development and make $500 million available to address gaps in venture capital. That will support the most innovative of Canada's firms and help them grow and create jobs.
To advance the Canadian marketplace, our government has cut import tariffs on manufacturing equipment and has been driving an ambitious trade agenda.
To strengthen our infrastructure, we committed $14.8 billion in stimulus. We recently announced the conclusion of an agreement between Canada and the State of Michigan towards building a new publicly owned bridge crossing between Windsor and Detroit.
Furthermore, our debt-to-GDP ratio is the lowest in the G-7 and we have kept our Triple-A credit rating. We have a clear plan to return to a balanced budget.
This progress has not gone unnoticed. Both the IMF and OECD project that Canada's economy will be among the leaders in the industrialized world over the next two years, and Forbes magazine named Canada the best country in the world in which to do business.
Within my portfolio, I emphasize support for the creation of jobs and for growth. During the summer, I took part in a series of roundtables with business leaders. Their point of view is that the solidity of the main economic indicators in Canada make it an excellent place to do business. The messages they sent me were clear: they want our government to seek above all to create an environment of international scope for our businesses and enable them to prosper more easily throughout the country. We share this concern and we are committed to creating the conditions that will enable businesses to invest so that the private sector can prosper and create jobs.
One of the key priorities within my portfolio is to promote greater private sector investment in the manufacturing sector. As you know, the manufacturing industry is very important to Canada's economy. It employs more than 1.75 million people, with 60,000 in research and development. It is the top sector for foreign direct investment and accounts for more than 63% of our exports. Almost half of our country's R and D that is performed by business in Canada is done by the manufacturing sector.
But this sector is changing and is facing global challenges. The economic slowdown, the competition from low-cost countries, and the accelerated pace of technological advancements are adding to the pressures of Canadian manufacturers.
In the face of so much change, our companies must be at the forefront of technological improvement and adopt new processes to become more productive and competitive. In this context, innovation is critical. Research and development is crucial. Developing new markets is imperative. Training workers in the skills they need is essential.
The recent improvements made in the Industrial and Regional Benefits Policy will guarantee that government defence procurement will generate some very valuable activities for Canadian industry. Measures such as these will also help Canadian businesses to be more productive, so that they be competitive within the world economy.
The aerospace industry is another element in the manufacturing sector that is important for our country. We are a world leader in the production of goods and services responsive to aerospace and space activities. This major segment of the Canadian economy generates $41.2 billion in revenue and provides Canadians with close to 162,000 highly qualified jobs, whether direct, indirect or induced.
The world markets for the aerospace and space industries are marked by very strong competition and are focused on the development of innovative technologies. To maintain their status as a leader internationally, Canadian businesses must continue to invest heavily in R&D. Canada’s aerospace industries have responded to this challenge by every year investing more than $1.5 billion in R&D in order to create state-of-the-art next-generation technologies.
Canadian businesses working in these industries are therefore among the most innovative in the country. In light of the importance of their sector for the economic future of our country, in February I launched the Review of Aerospace and Space Programs and Policies, for which the Hon. David Emerson is responsible.
This review aims to produce concrete and neutral recommendations on the financial plan about the way in which federal policies and programs can maximize the competitiveness of the aerospace and space industries. Mr. Emerson has worked in close cooperation with the Aerospace Industries Association of Canada in order to study the key issues. For example, innovation and access to markets and their development, skills development, procurement and development of the supplier network were among the topics discussed. Mr. Emerson is giving a press conference — it may be over by now — about this, in connection with the launch of the report.
Mr. Emerson's review also touches on issues related to the space sector. Canada has a long history of leadership in space, and this will continue. I recently announced that Canada intends to renew its commitment to be a continuing partner in the International Space Station. I am particularly proud that Chris Hadfield will become the first Canadian commander of the ISS during his mission, which is scheduled to begin in December of this year.
I look forward, as I said, to receiving Mr. Emerson's report today.
The manufacturing sectors also demonstrate the importance of innovation to the competitiveness of our businesses. That's why, since coming to office, our government has made science and technology a priority. We introduced this strategy in 2007, and it recognizes that innovation is driven by collaboration between researchers and entrepreneurs, and by commercialization of new technologies.
Since 2006, our government has invested nearly $8 billion to support S and T. These investments have made a difference. We have been able to support new world-class policies and programs, and we are working more closely with the private sector.
As you are aware, Canada must continue to work to improve in terms of business innovation performance. Business innovation is increasingly vital to maintaining both Canada's global competitive advantage and high standard of living. Despite the high level of federal support for business R and D, Canada continues to lag behind other countries in a number of areas: business R and D spending, commercialization of new products and services, and productivity growth. It was for this reason that we called for an expert panel for a review of federal support to research and development.
Through our budget 2012, the government has acted on many elements of the R and D review panel's advice by increasing support for high-growth companies, research collaborations, innovation procurement opportunities, and support to grow venture financing. Indeed, the budget is providing $1.1 billion for direct research and development support.
I would also like to talk to you about the digital economy.
Late last month, I had the pleasure of speaking to the members of the International Institute of Communications. As I said then, a vigorous digital economy is essential to our future prosperity. We understand the importance of the information and communications technologies, in which investments in R & D are the largest in the private sector. This sector supplies over 500,000 high-quality, well-paid jobs in Canada. ICTs are an essential element in our future. To become more productive and competitive, businesses in all sectors of the economy need ICTs. This is why we have taken measures to foster greater use of ICTs by investing $80 million over three years to implement the Digital Technology Adoption Pilot Program, designed to help small- and medium-sized businesses to adopt these technologies. It is estimated that this program should help over 600 businesses.
Similarly, through the Business Development Bank of Canada, we are providing support to businesses seeking to acquire digital technologies. We have taken a number of steps to increase consumer and business confidence in the online marketplace by modernizing the Copyright Act and passing anti-spam legislation.
As you will recall, earlier this year, we announced details for the auction of spectrum for the next generation of wireless networks that will help sustain competition and robust investment. After that announcement, another round of consultation was launched on the auction format and conditions of licence. The views we heard are being analyzed, and decisions will be announced early in the new year. We believe, with these efforts currently under way, that Canada has the potential to be a global leader in the creation, adoption, and use of digital technology.
In conclusion, Chair, I believe these initiatives will help strengthen the competitiveness of the Canadian economy. Taken together, they support our government's goal of generating jobs and growth for all Canadians.
Thank you very much for your time today.
