Thank you very much, Chair.
It really is great to be here.
Thank you very much for the opportunity and the invitation today. I really do appreciate the opportunity to meet with you on the occasion of tabling supplementary estimates (A) for 2018-19. In doing so, I am seeking approval for spending that is aligned with our government's priorities, in particular promoting economic growth, which is our number one priority.
Mr. Chair, despite a challenging global climate, Canada's economy remains rock-solid. In fact, our jobless rate, as mentioned by the Minister of Finance in the House of Commons today, is at a 40-year low, with over half a million full-time jobs having been created since 2015. Of course, there's no coincidence to this, Mr. Chair.
We have been making strategic and targeted investments. And our middle class has benefited from the creation of new jobs and now has a better and sustained quality of life.
Many of these investments are reflected in the supplementary estimates that we are discussing today. The primary mechanism under which we are doing this work is called the Innovation and Skills Plan.
Through our plan, Mr. Chair, we're taking a partnership-based approach to innovation-driven competitiveness in Canada, one that includes strategic investments and first-of-their-kind programs to develop innovation ecosystems and foster growth.
This new approach to innovation funding is accelerating and building on Canada's economic strengths. For example, it's really supporting the scale-up of Canadian firms and helping expand their roles in regional and global supply chains. It's about how we can compete not only within Canada, but internationally as well. It's attracting the kind of investment that creates good-quality well-paying jobs for the middle class.
It is my pleasure, Mr. Chair, to share with you some of the accomplishments under the innovation and skills plan, which is really our new smart industrial policy, as well as a view to where we're headed.
One of our most successful programs has been the strategic innovation fund, and I want to highlight this because it was a key initiative that was introduced in our plan.
It encourages research and development to speed up technology transfer and the commercialization of Canadian innovations. It facilitates the growth and expansion of Canadian firms and helps attract and retain large-scale investments. And, because industry boundaries are blurred in today's economy, it is open to all industries.
As of November 1 of this year, the fund has announced over 30 projects totalling $775 million in contributions that we've made, investments that we've made. What's more impressive is that these investments have leveraged a total investment of $7.3 billion, and we can all be very proud of this.
In a similar vein, another initiative that many of you are familiar with was highlighted last week. We've been making great progress on the $950-million innovation superclusters initiative. It's a collaborative effort between industry, academia and government through which we are building up existing areas of industrial strength to grow globally competitive companies.
Just last week I was pleased to announce contribution agreements with the Ocean, Advanced Manufacturing, and Protein Industries Supercluster.
The government really couldn't have asked for better partners.
I've also been very impressed with the ability to mobilize the innovation ecosystem, from small and large companies to universities and research partners, and from entrepreneurs and investors to other government agencies as well. The end result of this initiative—and I think this is really important to highlight, Mr. Chair—is that more than 50,000 new jobs will be created over the next 10 years, and these superclusters will add over $50 billion to our economy in the coming years as well. These are huge numbers, so we're super excited about these two programs: the superclusters initiative and the strategic innovation fund initiative. Again, this speaks to our government's overall new smart industrial policy, which is really focused around growth and jobs.
The innovation and skills plan is not simply about dollars and cents. It's about making it easier for businesses to grow. That's what we're truly here to talk about: growth. We made it easier for companies to access government programs through Innovation Canada. This is a one-stop shop. If entrepreneurs want to deal with the Government of Canada, rather than dealing with different levels and trying to figure out different programming, they answer a few short questions and in minutes they will get tailored, clear information about the programs that best meet their needs. I'm talking about federal, provincial and territorial information. It is a way to streamline the process for businesses to be business-focused and business-centric.
Complementing this, we've launched Canada's intellectual property strategy, the first such strategy. Imagine, in a knowledge economy, this is the first time the federal government has put forward such an ambitious strategy. As the members of this committee know, IP is integral to growing firms and fuelling innovation in today's technology-driven economy. Looking at other successful innovation nations, we always knew that our innovation and skills plan needed to include a proper IP plan. Members of the committee, as you heard from stakeholders when you undertook your study on IP, businesses armed with a strong, modern IP strategy make more money and pay their employees higher wages than those without. Those that have an IP strategy pay on average 16% more. This is good for companies, but more importantly this is really good for workers.
Furthermore, small and medium-sized businesses that use IP are two and a half times more likely to be involved in innovation activities. Again, it's about creating a culture of innovation and building that ecosystem. Our strategy, therefore, contains several measures to increase IP awareness and to make the system more transparent and predictable so businesses can focus on what matters, which is innovating and coming up with new ideas for new solutions.
Let me also take this opportunity to thank this committee once again for its thoughtful report and recommendations on this issue, because again it was a collective effort. You stepped up in a big way. We heard you loud and clear, and we implemented your recommendations.
These are just a handful of the government's accomplishments under the Innovation and Skills Plan, but rest assured, we are not done.
Mr. Chair, I want to quickly highlight that we're moving in a direction that also addresses issues around data and privacy, particularly the consultations we've done under the national digital and data consultations. Of course, our country's competitive advantages are increasingly defined by the ability to create, commercialize and implement digital technologies to harness the power of data. That's why we held the national digital and data consultations from June to October, engaging more than 550 thought leaders right across the country. We wanted to genuinely understand how Canada can drive digital innovation, prepare Canadians for the future of work, and ensure they can trust how their data is used. These consultations were a first step and will help guide us as we continue to make sure that Canada is in a leadership role.
I would also be remiss if I did not mention the continued renaissance of our regional development agencies. This truly is a point of pride because we brought the agencies together, provided additional money for them, and allowed them to focus on innovation-related projects as well. Again, they've done a tremendous job of focusing on helping companies scale up. They helped with diversification. This speaks to the concerns—and more importantly, the opportunities—that innovation occurs everywhere and not just in the big cities. It's important that all Canadians benefit from innovation.
Colleagues, as you can see, this is a very comprehensive innovation and skills plan.
The global economy is more competitive than ever. Canada must move quickly or risk being left behind. That is why these measures are so important. For Canada to succeed, innovation is imperative.
All the middle-class families from coast to coast to coast are counting on us to set this country on the right path, and that is exactly what we're doing.
I want to thank you, Chair, for this opportunity, and the committee members for their time. I'd be happy to answer any questions you may have.
Thank you very much.
