Innovation Canada: A Call to Action

Innovation Canada: A Call to ActionFigure 3.2 The Largest Direct Expenditure Programs in the Envelope, 2010–1118%16%14%12%10%8%6%4%2%0%Largest 5 programs: 40%of expendituresLargest 15 programs(shown at right): 72%Industrial Research Assistance Program (NRC)Strategic Aerospace and Defence Initiative (IC)Support for FPInnovations (NRCan)Networks of Centres of Excellence (Tri-Council)SD Tech Fund (SDTC)Western Diversification Program (WD)Atlantic Innovation Fund (ACOA)Strategic Project Grants (NSERC)Collaborative Research and Development Grants (NSERC)Business and Regional Growth Program (CED-Q)Centres of Excellence for Commercialization and Research (Tri-Council)Industrial Materials Institute (NRC)Strategic Network Grants (NSERC)Agricultural Bioproducts Innovation Program (AAFC)Institute for Aerospace Research (NRC)0% 2% 4% 6% 8% 10% 12% 14% 16% 18%Source: Based on figures provided by departments and agencies.Envelope Expenditure by Form of SupportThe SR&ED tax credit is by far the largestprogram of federal support for business R&D,projected to comprise about 70 percent ofenvelope expenditure (Figure 3.3).In the category of direct expenditure, nonrepayablegrant and contribution programsmake up the largest proportion — $901 millionin 2010–11, or 60 percent of the directexpenditure category. IRAP is by far the largest,with 2010–11 expenditure of $237.3 million,although it should be noted that this reflects asubstantial two-year increase in budget as partof the government’s stimulus program. (IRAPexpenditure in each of 2007–08 and 2008–09was about $86 million, or only a little more thana third of its 2010–11 budget, and about8–9 percent of direct expenditure in thoseyears.) There is a total of 29 programs orprogram components in the non-repayablegrant and contribution group.Programs providing repayable contributions aresmaller — $248.7 million in 2010–11, or about17 percent of direct spending. The StrategicAerospace and Defence Initiative (SADI) is thelargest of these programs, with 2010–11expenditure of $112.7 million, although thisannual amount will rise substantially as theprogram ramps up. There are seven programs inthis group, with the remaining total largelydelivered by the regional development agencies(see Figure 3.1).Envelope Expenditure by Type of RecipientFigure 3.4 breaks down total expenditure byrecipient and shows that 81 percent is projectedto go to businesses, with the great majoritymade available through the SR&ED program.Much of the direct support for large businessesis repayable. The allocation of expenditure fromdirect programs in 2010–11 was roughly asfollows: 11 percent to large businesses,26 percent to small businesses, 27 percent to3-8