UNIVERSITYOFCALGARY

SUBMISSIONTOTHEHOUSEOFCOMMONS
STANDINGCOMMITTEEONFINANCE

Preparedfor:
HOUSEOFCOMMONSSTANDINGCOMMITTEEONFINANCE

August6,2014
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INTRODUCTION
Thepotentialforscience,technologyandinnovation,andcreativitytocontributetofurther
improvementsinthewellbeingofCanadianscannotbeoverstated.Investmentsresultinthetraining
ofhighlyqualifiedpeople,enhancementsinproductivityandthroughthetransferand
commercializationofnewknowledge,leadtothecreationofnewcompaniesandjobs.Theyalsoleadto
improvementsinenvironmental,cultural,socialandhealthconditions.Canadasqualityoflifeand
economicprosperitydependonthecountrysabilitytogrowitsknowledgebase,toinnovateandto
translatenewknowledgeintosignificantbenefitsforsociety.
TheUniversityofCalgaryisapproachingits50thanniversary.LocatedinoneofCanadasmost
entrepreneurial,energeticandlivablecities,theuniversitysannualeconomicimpactisalmost$8
billion.Theuniversityattracted$330millioninsponsoredresearchincomein2013.Ourvisionistobe
anevengreateruniversitywithglobalreach,whilefulfillingourcommunitysexpectationsbydelivering
academicandresearchexcellenceandsocietalimpact.TheuniversitysetthegoalinitsEyesHighvision
ofbecomingoneofCanadastopfiveresearchuniversitiesby2016andhasputinmotionamajorleap
forwardthroughitsAcademicPlanandStrategicResearchPlan.
Theuniversityrecognizesandappreciatesthegovernmentsongoingcommitmenttofundinguniversity
research.FederalfundingactsasakeystoneinCanadasresearchecosystem,creatingopportunities
andleveragingsignificantdollarsfromothergovernments,industry,thenotforprofitsectorandother
sources.
TheUniversityofCalgarywouldliketothanktheHouseofCommonsStandingCommitteeonFinancefor
theopportunitytoprovideinputintoBudget2015.ContinuingthemomentumofCanadasdedication
toresearchanddevelopmentthroughanewroundofinvestmentintheCanadaFoundationfor
Innovation,predictable,sustainablefundingoftheTriCouncilagencies,andimplementingtheCanada
FirstResearchExcellenceFund,aswellascreatingnewopportunitiesforourstudents,willhelpkeep
Canadaattheforefrontofresearchandinnovationworldwide.

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PREPARINGCANADIANSTOTAKETHEIRPLACEIN
OURMODERNECONOMY
Skills,Training,andHighlyQualifiedPeople
BetterforGraduates
Auniversitydegreecontinuestoshowgreatvalueforgraduates,leadingtolifelongimprovementsin
standardsofliving.Theearningspremiumassociatedwithabachelor'sdegreeissubstantialcompared
tocollege,tradesandhighschoolgraduates.Thesetrendsremainedstrongduringtherecentrecession,
with613,000netnewjobscreatedforthosewithauniversityeducationbetweenMay2008andMay
2012
1
.OfthenetnewjobscreatedinAlbertasince2008,56%haverequiredauniversityeducation
2
.
BetterforEmployers
Onethirdofallprojectedjobopeningsoutto2020areinoccupationsrequiringuniversityeducation
3
.
ShortagesofskilledlabourareprojectedbyEmploymentandSocialDevelopmentCanadain:business,
financeandadministrationoccupations;natural,appliedsciencesandrelatedsciences;health
occupations;occupationsinsocialscience,education,governmentserviceandreligion
4
.Skillsshortages
continueinmanyprofessionsrequiringuniversityeducation,suchasinhealthcare,engineeringandin
managementoccupationstheseshortagesareholdingbacktheeconomyfromitstruepotential.
Withthecontinuedgrowthinemploymentofuniversitygraduatesduringtherecession,itisclearthe
skillsprovidedbyauniversityeducationareinhighdemand.
BetterforSociety
ByimprovingtheeducationofCanadascitizens,weenableindividualstoacquireskillstoworkattheir
highestandbestability.ThebenefitofresearchanddevelopmenttoCanadianbusinessesandentire
communitiesissignificant,includingincreasedproductivity,economicgrowth,andindividualand
collectivewellbeing.

1
Statistics Canada, Labour Force Survey, May 2012
2
Association of Universities and Colleges of Canada, Back to School Quick Facts, July 2014
3
Employment and Social Development Canada, Imbalances Between Labour Demand and Supply 20112020
4
Ibid.
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Innovation
ExcellenceinresearchunderpinsCanada'sabilitytoimproveproductivityacrossallsectorsofsociety.
Universityresearchcontributessignificantlytothedevelopmentofnewproductsandservices,new
waysofdoingthingsandnewjobopportunitiesforCanadians.Theseoutcomesbuildtheknowledge
economyoftodayandtomorrow,andstrengthenthenation'soverallinternationaleconomic
competitiveness.
Throughtherecenteconomicdownturn,thegovernmentistobecommendedforitscontinued
investmentsinCanadasinnovationecosystem.TargetedincreasestotheCanadianInstitutesofHealth
Research(CIHR),theNaturalSciencesandEngineeringResearchCouncilofCanada(NSERC)andthe
SocialSciencesandHumanitiesResearchCouncil(SSHRC)havemeantCanadaremainsinastrong
positiontocompeteontheworldstageforthebeststudentsandresearchers.Otherprograms,suchas
theCanadaExcellenceResearchChairs,theBantingPostdoctoralFellowshipsandtheVanierCanada
GraduateScholarships,aremanifestationsofthegovernmentsworthwhilecommitmenttoinvestin
todaysandtomorrowsresearchleaders.
ThecreationoftheCanadaFirstResearchExcellenceFund(CFREF)deservesspecialattentionand
gratitude.ThegovernmentscommitmentwillenableandfurtherstrengthenCanadasleadingresearch
universitiestocompetewiththeirpeersaroundtheworld.Thefundwilldriveproductivitygrowth
throughdiscoveryandappliedresearch,andthetrainingofhighlyskilled,adaptablegraduates.
Canadasresearchintensiveuniversities(U15)collectivelyattract80%ofallcompetitivelyallocated
researchfundinginCanadaand87%ofallcontractedprivatesectorresearchinCanada.Asadirect
result,researchintensiveuniversitiesgenerate80%ofpatentsandstartupsand81%oftechnology
licensesofCanadianuniversities.Additionally,71%offulltimedoctoralstudentsstudyataresearch
intensiveuniversity
5
.Theseoutcomesareadirectresultofsustainedfederalinvestmentsinthe
researchecosystem.
Federalinvestmentsinuniversityresearcharepayingoff.Forexample,TriCouncilfundedresearcher
Dr.SamuelWeiss,theinauguralDirectoroftheHotchkissBrainInstitute,hastranslatedhispioneering
workinstemcellsandbrainreceptorsintoanewunderstandingofthecausesofschizophrenia,
Alzheimers,andCreutzfeldtJakobdisease.Hisworkhasledtoaportfolioofcommercializedpatents
andlicensesandtheUniversityofCalgaryspinoffcompanyNeuroSpheres.Federallysupported
researchattheUniversityofCalgarysPetroleumReservoirGroupischangingtheunderstandingoffluid
flowinenergyreservoirswhichimprovesindustrysabilitytopredictwherethebestqualityandmost
economicallyrecoverableoilcanbefound.ThisworkhasresultedinthespinoffcompanyGushorInc.,a
petroleumreservoirfluidanalysisandgeosciencescompanythatprovidesinnovativesolutionsto
practicalproductionandexplorationproblemsintheheavyoilindustry.

5
U15 Group of Canadian Research Universities, Our Impact
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RECOMMENDATIONS
TheUniversityofCalgaryrecommendsthefederalgovernmentbuilduponitslegacyof
investmentsinresearchandinnovation.Itisimperativethatanynewinvestmentsinclude
sustainableandpredictablefundingtoensureresourcescanbedeployedtotheirfullesteffect.
CanadaFoundationforInnovation(CFI)
TheUniversityofCalgarysupportsanewroundofinvestment,overafiveyearperiodbeginningin
2016,fortheCanadaFoundationforInnovation.Updatedlabandequipmentinfrastructureis
criticaltomaintainingresearchexcellenceandaleadershippositionforCanada.Theavailabilityof
appropriatelabsandinfrastructureiskeytoattractingthebestofworldwidetalenttoconduct
researchinCanada
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.AsCanadaincreasesfundingforresearchexcellencethroughotherprograms,
itisvitalthatinfrastructuresupportremainsinplacetoensureresearchershavethepropertools
toconducttheirwork.Onthiskeypoint,withoutthenecessaryinfrastructureinplacetoconduct
worldleadingresearch,majoropportunitiesforattractingandretainingtopresearchersinCanada
wouldbelost.
In2013,ProfessorGarnetteR.SutherlandoftheUniversityofCalgaryreceivedCFIfundingforhis
workindevelopingtheneuroArm:aninnovativerobotdesignedforimprovedsafetyandoutcomes
ofneurosurgery.CFIfundinghascreatedfacilitiesthatnotonlyenableworldleadingresearch,but
supportasectorialadvantageforentireindustries.TheCatalysisSurfaceScienceLaboratoryledby
Dr.PedroPereiraAlmaoandtheSchulichSchoolofEngineeringforexample,isutilizedbyindustry
toanalyzeoilandgassurfacesamplesfrominsitutesting.
Withoutadditionalinvestment,CFIsupportsforresearchinfrastructurewillfallprecipitouslyby
theendofthedecadefromthecurrentfiveyearannualaverageof$444milliontounder$100
millionannually.TohelpputthisinperspectivefortheUniversityofCalgary,thiswouldmeana
dropofresearchinfrastructuresupportfromanaverageof$14.3millionperyeardowntoless
than$3millionperyear.Suchanimpactwouldhaveasignificantimpactontheuniversitys
researchactivities.

6
Lam, Alice. What Motivates Academic Scientists to Engage in Research Commercialization: Gold, Ribbon
or Puzzle? Research Policy 40: 135468, 2011
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TriCouncilAgencies
WeproposethattheTriCouncilagencies(CIHR,NSERC,andSSHRC),thedriversofdiscoveryand
appliedresearchactivityacrossthecountry,besupportedbyadditionalsustainablefunding,
includinganincreaseofpartnershipprogramswhichsupportuniversityindustrycollaboration.
Increasedfundingthroughthegrantingcouncilsfacilitatesdiscoveryandappliedresearch,and
strengthensresearchcapacityatCanadianuniversities.Partnershipfundingfacilitatesresearchers
collaboratingwithbusiness,governmentandthenonprofitresearchsupportingcommunity,
transferringknowledgeandcommercializingdiscoveries.
OneexampleoffundingreceivedthroughtheCanadianInstitutesofHealthResearch,Karl
Riabowol,PhD,aUniversityofCalgaryresearcherandmemberoftheSouthernAlbertaCancer
ResearchInstituteandAlbertaChildrensHospitalResearchInstitute,studiesthebiochemical
underpinningsofagingandhowitrelatestocancer:namely,facilitatingtheaginganddyingof
cancercells.Thisworkhasledtothediscoveryanewfamilyoftumorsuppressorsthathas
implicationsforcancerdiagnosisandtreatment.
Further,smallandmediumsizedenterprises(SMEs)facesignificantriskwheninvestingin
research,developmentandinnovation.Thisriskwouldbereducedbyencouragingnewand
deeperresearchpartnershipsbetweenbusinessesanduniversities,enablingmoreSMEsto
increasetheirproductivityandimprovetheirproducts.Enhancingcurrentprogramsthat
encouragefirsttimepartnershipsbetweenSMEsanduniversitieswouldbebeneficialtoindustry
andtheeconomy.Universityindustrypartnershipsalsoimprovestudentlearningexperiencesand
prepareshighlyqualified,adaptablegraduatesreadytosucceedintoday'sandfuturelabour
markets.WiththesupportofNSERCEngageGrants,theUniversityofCalgaryhasactively
partneredwithSMEstoresolveproblemsandimproveproductivity.Ourresearchersworkedwith
PasonSystemsCorp.andTelvent,twoCalgarybasedSMEs,toimprovesoftwaretestingsolutions,
forexample.
CanadaFirstResearchExcellenceFund(CFREF)
TheCFREFhasthepotentialtobeagamechangerforCanadasresearchandinnovation
ecosystem.InBudget2014,theUniversityofCalgarywaspleasedtoseethefundingenvelopefor
thisprogramannounced.Thisinvestmentwillensureinternationalcompetitivenessinattracting
andretainingglobaltalent;supportbreakthroughdiscoveriesinouruniversities;fosterdisruptive
aswellasincrementalinnovationsthatleadtonewindustriesandimprovedproductivity;and,
reinforceglobalnetworksofcreativityanddiscoverythatarestronglyassociatedwithworldclass
universities.CFREFwillsupportuniversitiesnationwideinmatchingtheirstrengthswith
opportunities.ItwillhelptheUniversityofCalgary,agloballeaderinenergyresearch,implement
ourcomprehensive,industrypartnered,EnergyResearchStrategy.Thestrategyfocuseson
discoveringnewenergysources,minimizingenvironmentalimpact,openingnewmarkets,and
planningforthefuture.Thegovernmentshouldcontinuewithitscommitmenttobeginflowing
CFREFfundinginBudget2015andbeyond.

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SupportingExperientialLearningOpportunities

Fosteringnewpartnershipsbetweenindustryanduniversitiesshouldnotbelimitedtoformalresearch
partnerships.ThereremainsgreatpotentialtoprovidecareerboostingopportunitiesforCanadian
studentsthroughcooperativeeducationandinternships.Bysupportingpathwaysbetweenuniversities
andtheworkplace,morestudentswillbeequippedwiththetoolstheyneedtogetgoodjobs.Initiatives
suchasavoucherprogramorafederaltaxcredittosupportinternshipsandthehiringofcoopstudents
bySMEsandnotforprofits,wouldpaydividendsforsociety.Inaddition,fundingtosupport
institutionsdevelopmentofcoopplacementsisneeded.Thefederalgovernmentshouldalsocommit
toincreasingthenumberofcoopstudentsithiresinthepublicservicetoprerecessionlevels.

CONCLUSION
ContinuingthepositivetrajectoryofinvestmentinCanadasresearchecosystemisparamounttothe
successofCanadasresearchintensiveuniversitiesinattractingglobaltalent,conductingworldleading
research,anddevelopingthenextgenerationofresearchersforcompaniesanduniversities.Through
continuedinvestmentintheTriCouncilAgencies,theCanadaFirstResearchExcellenceFund,andthe
CanadianFoundationforInnovation,aswellasenhancingsupportforstudentlearningopportunities,
theGovernmentofCanadaensuresCanadasplaceasaglobalcentreforresearchexcellence.

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For more information contact:

Dr. Elizabeth Cannon
President and Vice-Chancellor
Administration Building 100
+1 (403) 220-5617

John Alho
Associate Vice President, Government and Community Engagement
MacKimmie Block 325C
+1 (403) 220-5634


University of Calgary
2500 University Drive NW
Calgary, AB T2N 1N4
ucalgary.ca