The core of the new federal budget is an 鈥淚nnovation and Skills Plan鈥� to encourage business investment and jobs in Canada.
This is the second budget of the Justin Trudeau government, which means the second year of borrowing and spending billions for 鈥渋nfrastructure鈥� with little to show for it so far. I have no argument with skills training, a must in our fast-changing economy. But what about this 鈥渋nnovation鈥� business, and is it really the business of governments?
According to the latest Trudeau budget, innovation will help move Canada beyond reliance on our 鈥渞ich natural resources,鈥� and of course 鈥済row the middle class.鈥�
One of the headings is 鈥淧rogram Simplification,鈥� which tells you where this is all going wrong.
鈥淭he Government of Canada鈥檚 vast array of innovation programs makes it difficult for business to find and secure the support they need,鈥� it says. The more than 140 existing programs will be reviewed.
Yes, Ottawa has been trying for a long time to move us beyond 鈥渉ewers of wood and drawers of water,鈥� to use the decades-old clich茅. Stephen Harper gave us a $400 million 鈥淰enture Capital Action Plan,鈥� seed money to attract private capital to startups.
Trudeau doubled down last year with $800 million to create 鈥渃lusters鈥� of universities, business and government to spawn the next Silicon Valley. This year, Ottawa has dedicated $950 million to grow 鈥渟uperclusters,鈥� which Innovation Minister Navdeep Bains assures us are 鈥渏ob magnets.鈥�
Alas, Canada sucks at innovation, and producing entrepreneurs. Everything from our auto industry to our environmental movement consists mainly of American branch plants.
We鈥檝e had a few breakout successes, like BlackBerry, but now Canadians mostly laugh at how un-cool they are. And while taxpayers鈥� money keeps pouring into this 鈥渧ast array鈥� of programs, business investment in research and commercialization still lags behind.
B.C.鈥檚 got innovation fever too. In January, Premier Christy Clark re-launched her 鈥渏obs plan,鈥� a flexible beast that isn鈥檛 so much about natural gas exports right now as new technology, climate change and yes, innovation.
Clark appointed UBC president Santa Ono as the government鈥檚 chief advisor on innovation. He鈥檚 got clusters on his mind, no doubt.
NDP leader John Horgan hasn鈥檛 shown us much on innovation yet, but give him time. It鈥檚 the hot political fashion trend this spring.
Green Party leader Andrew Weaver is clustering as we speak. He launched his 鈥渋nnovation and sustainable enterprise plan鈥� in Vancouver last week, starting with an 鈥渆merging economy task force鈥� to start work as soon as a BC Green government takes over.
There will be $20 million a year 鈥渢o support ideation, mentoring and networking at post-secondary institutions,鈥� $50 million for 鈥渂usiness incubators鈥� and 鈥渁ccelerators,鈥� and $70 million over four years 鈥渢o leverage seed or angel funding.鈥� (No, I don鈥檛 know what ideation is either.)
The CBC had an innovation a while back, a show called Dragon鈥檚 Den. If you鈥檝e seen it, you know the drill. Angel investors take a hard look at a new product and offer financing for part ownership.
My favourite dragon is Jim Treliving, a no-nonsense ex-RCMP officer who built Boston Pizza into a three-country empire. He doesn鈥檛 spew insults like former panelist Kevin O鈥橪eary, he just tells would-be entrepreneurs what in his view works and what doesn鈥檛.
So now politicians assure us they can pick winners, with our money. Here鈥檚 Innovation Minister Bains, explaining it to The Globe and Mail last week:
鈥淚nnovation is fundamentally about people. And it鈥檚 about better outcomes, better communities. It鈥檚 finding solutions so that people can live better lives.鈥�
Right.
Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca Twitter: @tomfletcherbc
