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 Federal initiative boosts aerospace research
Attracting
investment and accelerating innovation can be difficult at the best of
times no matter what industry you are talking about. For example, if
you are a Canadian aerospace manufacturer, accomplishing those goals in
today’s rapidly changing and fiercely competitive global market can be
even more daunting. However,
a new initiative recently introduced by the federal government is
designed to ensure the Canadian aerospace industry’s continued success
and assist the sector in accelerating innovation and research and
development.
Under
the new Strategic Aerospace and Defence Initiative (SADI) nearly $900
million will be invested over the next five years with maximum funding
set at $225 million each year to support Canada’s aerospace, defence,
security, and space industries.
The
new initiative, which is a repayable contribution program, takes the
place of the former Technology Partnerships Canada program which the
Conservative government decided not to renew last year.
SADI
will support strategic research and development, particularly
technologies that focus on next generation products or services, build
on Canadian strengths, enable Canadian companies to participate in
major platforms and assist in meeting Canada’s international
obligations.
In
making the announcement, Maxime Bernier, federal Minister of Industry,
noted that “SADI will support innovation by Canadian players which is
critical to accelerating new technologies so they can continue to be at
the leading edge of the knowledge-based economy.”
Adds
Bernier, “Canada’s aerospace and defence industries are among the
world’s best, and they are important economic drivers in all regions of
the country. All Canadians will benefit from the economic growth and
technological advancements developed under this new initiative.”
Typically,
research and development within the aerospace and defence industries is
characterized by high development costs, long development lead times
and long payback periods-making it difficult for private sector firms
to entirely fund a research and development project.
Don
Campbell, chairman of the Aerospace Industries Association of Canada
(AIAC), believes that SADI should help spark research and development
in the Canadian aerospace sector. “This new initiative strengthens the
business case for investment and scientific innovation here at home.
Government partnerships with industry serve a valuable purpose in
stimulating technology development which would not otherwise occur,”
Campbell said in commenting on the new program.
Continues
Campbell, “The new program will require aerospace companies to invest
three to four dollars of their own capital for every federal dollar
received. It’s a risk-sharing partnership that is critical to
sustaining the more than $1 billion our companies invest each year in
aerospace research and development in Canada.”
Programs
such as SADI are critical in helping the Canadian aerospace sector
achieve success in the global market, says Peter Boag, president and
chief executive officer of AIAC.
“Canada
needs a versatile, flexible framework to meet the shifting political
and economic realities that define the aerospace industry’s global
landscape,” says Boag.
In
addition to the economic benefits resulting from research and
development projects funded under SADI, the program is also designed to
foster collaborative partnerships with universities, colleges and
research institutions.
Obviously,
the federal government recognizes how important the Canadian aerospace
and defence industries are to the overall Canadian economy. In 2005,
the aerospace sector alone had sales of $21.8 billion, exports of $18.5
billion, and employed 75,000 people.
Likewise,
Ottawa has recognized the important role that research and development
and innovation play within the aerospace and defence sectors and has
decided to support those efforts through SADI.
The
aerospace and defence industries are vital sectors within the Canadian
economy and the SADI program should help ensure that they don’t fall
behind their global competitors in the areas of research and
development and innovation.
Jerry Cook
Editor, MPP
jcook@clbmedia.ca
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