Government Operations committee  It's called a reference buy, so you're able to refer to the fact that the government has bought this product and around the world that's what's expected first.

Government Operations committee  That's exactly it. The evidence is starting to show that we have to go through the evaluation process, but I will say anecdotally that at this point there are a number of companies that have gone from an innovation, having successfully tested it with us, to sales and exports abroad, which is the biggest driver for growth, and those companies are starting to be successful.

Government Operations committee  We are not far enough into the program to do it.

Government Operations committee  We're seeing growth. We're seeing that these companies are now hiring people and manufacturing and scaling up their products.

Government Operations committee  The essence or most important thing in the program is fundamentally to get the first sale, because the thing that helps you most in marketing is that you have actually sold to your government. For many entrepreneurs, when they go abroad, the very first question that a government or a large company will ask them is whether their own government has ever bought any of these.

Government Operations committee  No, the program is really about taking your invention and seeing whether you're ready to do it and whether the government can test it for you.

Government Operations committee  —do some inventions—

Government Operations committee  I suspect that is probably happening. As the program gets better known, people who have ideas may pursue them in order to participate in the program, but you do have to take your product and do quite a bit of work to get it to a rating of level seven. That means you have to invest; you have to invent; your proof of concept has to be done; you actually have to have a product ready to go, etc.

Government Operations committee  The real value is that in a lot of cases if you don't get the reference buy, you're stopped. It's not whether you can put money into it. It's that you're stopped. I'm speculating here, but you'd probably have to convince a larger company to take your product and take it away.

Government Operations committee  I am not familiar with that article. Our program accounts for only a small part of the sector. It is used for the specific development of small and medium-sized companies that have innovations to present. Other departments, including Industry Canada, are in charge of large innovation programs.

Government Operations committee  That is exactly right. A significant portion of that work is done by regional offices of Canada Economic Development in the west and in Quebec, and by FedNor in northern Ontario. Those are the offices in charge, I think, under the auspices of the Department of Industry.

Government Operations committee  I don't have the number.

Government Operations committee  It is not limited; it is intended for all of Canada. We are very engaged with urban centres and more remote areas. Last month, we participated in a seminar in Banff on innovation for small and medium-sized businesses. We are making presentations across the country. The total value of contracts issued for 67 projects in three years was $24 million.

Government Operations committee  The pilot project has undergone a formative evaluation. That is an initial evaluation. The results will be posted on the website of the Department of Public Works and Government Services over the next few weeks. The evaluation found that the program supported the government's mandates and priorities, and that it seemed to be effective.

Government Operations committee  We appoint the members of the committee, which is made up of three people from the department—the government—and eight people from the private sector. We also have some additional members from the university world. Those are entrepreneurs-in-residence. They are professors from the University of Waterloo, the University of Ottawa, the University of Manitoba and the École de technologie supérieure.