Mediaplanet interviewed Minister Champagne about Canada’s $1.4B investment in multidisciplinary research, fostering innovation and long-term benefits across health, sciences, and engineering sectors.
Minister Champagne, could you highlight a recent standout initiative supported by the Canada First Research Excellence Fund that exemplifies the fund's impacts on fostering innovation within Canada?
Our government supports scientific discovery, developing Canadian research talent, and attracting top researchers from around the world. To date, we’ve invested close to $1.4 billion through the Canada First Research Excellence Fund in support of 11 multidisciplinary research initiatives in health, natural and social sciences as well as in engineering. Each initiative will deliver impactful outcomes that forge strong partnerships, create long-term social and economic advantages for Canada and build upon areas of strength in the Canadian research ecosystem. From coast to coast to coast, our research institutes are undertaking projects that will deliver long-term benefits to Canadians like at Dalhousie University where research is aimed at designing and evaluating novel approaches to mitigate climate change or at the University of Ottawa where its Brain-Heart Interconnectome initiative will position Canada as the global leader in integrated brain-heart research to reduce the world-wide burden of interlinked diseases.
In your view, what key policies or initiatives are crucial for ensuring Canada remains a competitive force in
innovation, especially in sectors like technology, clean energy, and healthcare?
With its highly-educated workforce, Canada’s science and research sector is solving some of the world’s greatest challenges, while driving innovation, growth, and productivity. Our research community, comprising of some of the best talent in the world, is constantly pushing the boundaries of innovation. That’s why we’ve made it a priority to support the ecosystem. Canada’s spending on higher education, research and development, as a share of GDP, is second among the G7 and significantly higher than the OECD average. Budget 2024 put forward a $4.6 billion package of measures to maintain our capacity for cutting-edge research, including:
$2.4 billion to secure Canada’s AI advantage
$1.8 billion in core research grant funding; and $734 million to support Canada’s world-leading research infrastructure and institutes
These investments will ensure that our younger generations can access quality post-secondary education at an affordable cost while maintaining a skilled workforce in Canada. Through these investments, our government is creating opportunities, boosting innovation, and accelerating economic growth.
Generative AI’s Powerful Potential to Boost Productivity and Build Trust in Data
Ulrike Bahr-Gedalia, Senior Director of Digital Economy, Technology, and Innovation at the Canadian Chamber of Commerce, discusses the importance of trust in data and privacy protection, in the context of generative AI driving economic productivity, with Mike Branch, Vice-President of Data and Analytics at Geotab, and member of the Canadian Chamber’s Future of AI Council.
Ulrike Bahr-Gedalia: What is your concept of trust in data and its significance for productivity, especially in the context of generative AI?
Mike Branch: Gen AI relies heavily on trust in data. Trust in data is like the confidence placed in crossing a bridge. Solid data foundations instill confidence. Gen AI depends on this trust in its data for its acceptance and effectiveness. Maintaining this trust requires clear transparency, privacy safeguards, reliability, and quality data. These pillars of trust will help deliver on the technology’s promise to boost productivity.
UBG: In what ways do you see Gen AI impacting trust in data, and how does it influence productivity outcomes?
MB: Gen AI can speed up time-to-insight by allowing users to interact with complex business datasets using natural language to obtain answers. To build trust in its use, it’s essential to ensure responsible deployment of AI. Trusted AI boosts productivity by enabling quick, insightful decisions. For example, a fleet manager can use Gen AI to identify the least productive regions in seconds rather than hours or days. By democratizing data and providing actionable insights, Gen AI enhances decision-making, customer value, and competitive strategy.
UBG: With the increasing concern over data privacy and ownership, how are you navigating the complexity to ensure trust in data, while respecting privacy rights?
MB: Geotab adheres to diverse data privacy laws in its processing of data from over four million vehicles worldwide. Data standardization ensures customer access while respecting privacy, aligning with the Connected Vehicle Systems Alliance. We have a cross-functional team involving compliance, legal, data privacy, and engineering to
develop a global posture that coincides with data sovereignty requirements.
Geotab also innovates in data privacy through anonymization techniques, red teaming, and motivated intruder attacks, preserving customer privacy whilst delivering AI-driven insights to reduce collisions, downtime, and emissions.
UBG: Are there any jurisdictions you can point to that lead by example in terms of trust in Gen AI and data practices, while respecting privacy rights?
MB: As Gen AI adoption grows, jurisdictions are developing frameworks and regulations that foster trust and ensure privacy rights are respected — the EU's AI Act and Singapore's AI framework are leading examples.
In Canada, several new acts and charters promote responsible AI use in commercialized offerings. Each of these regions and countries show how a balanced approach between innovation in Gen AI and robust data protection can encourage trust in Gen AI technologies, alongside respect for individual privacy rights. At Geotab, we view Gen AI as a driver of data democratization and insight generation, employing a nuanced deployment approach to ensure optimal value extraction and system safety for users.
How Mitacs Accelerates AI Adoption by Linking Research and Industry
Artificial intelligence can transform Canada's economy by boosting productivity, jobs, and living standards — but bold action is needed to connect industry with research and put AI to work.
Ken Donohue
Mitacs is leading the charge, helping Canada take centre stage as a leader in artificial intelligence (AI). The secret to implementing AI effectively lies in Mitacs's ability to attract and deploy top talent to onboard AI and provide businesses with the skills they need for successful implementation. Through Mitacs's unique model, combining strategic connections, talent, and financial support, over the past five years, Mitacs has supported more than 14,000 AI internships, partnered with over 117 academic institutions, and invested more than $200 million in Canadian AI research and development. Projects span all sectors, including cleantech, biotech, agritech, and advanced manufacturing.
Partnerships with results
Mitacs played a pivotal role in Unilever's decision to establish its Global AI hub in Toronto. Since 2019, this partnership has scaled to enable Unilever to launch its AI Horizon3 Lab last year. These projects are already leveraging world renowned AI expertise to transform Unilever's global business needs. Through this initiative, Unilever is recruiting approximately
twelve graduate-level Mitacs interns from Canadian universities to enable AI capabilities across its supply chain, consumer engagement, e-commerce, and digital marketing.
Another Mitacs partner is Ericsson, the communication giant that chose Canada as its fourth global AI hub. Mitacs and Ericsson forged a three-year agreement to build a talent pipeline for the Montreal-based Global Artificial Intelligence Accelerator. This hub is tapping into a deep pool of highly skilled talent, capable of advancing critical research and development in artificial intelligence and machine learning. This initiative also resulted in Ericsson recruiting approximately 90 graduate-level Mitacs interns from Canadian universities to enable the creation of robust, intelligent, data-driven ICT systems, including a 5G network in Canada.
With the Government of Canada’s recent $2.4 billion investment announcement to secure the country’s AI advantage, now is the time for businesses of all sizes to embrace AI integration across the Canadian economy.
Mediaplanet: What impact can AI have on our society?
John Hepburn: AI is widely expected to have a major impact on economic growth and labour productivity by revolutionizing all industries in Canada. AI will help us create ambitious solutions to some of our most pressing challenges. We’ve already seen the positive impact of AI, but we need to scale up adoption. If not, Canadian businesses will fall behind and Canadians won’t reap the benefits. According to the International Monetary Fund, AI has the potential to reshape the global economy. Its recent analysis for the U.K. indicates that productivity gains from AI are expected to range from 0.9 to 1.5 per cent a year.
MP: How does Canada compare to other countries when it comes to AI adoption?
JH: Considering Canada has a world-leading AI ecosystem and has been at the forefront of AI research and development, it might surprise some that we lag behind other countries in AI adoption. In 2020, Canada ranked fourth on the Global AI Index. The country has since dropped a spot, and its position could tumble further without bold action. Less than five per cent of Canadian firms have deployed AI in their business in any capacity. Global leaders, such as Denmark, have so far had more than double the rate of AI adoption as Canada. Furthermore, AI adoption in Canada has been uneven, with 20 per cent of large companies reporting the use of AI, while just three per cent of small firms have done so. This shows the work we need to do to increase AI adoption across our economy.
We sat down with Mitacs CEO John Hepburn to learn what businesses and researchers need to do to leverage the full potential of AI and how Mitacs is playing a leading role.
MP: Why is there a disconnect between industry uptake of AI and Canada’s role as an AI research powerhouse?
JH: One of the key reasons is the lack of investment in new technologies, particularly the reluctance of Canadian businesses to embrace AI, especially among small- and medium-sized companies. When compared globally, Canadian firms are generally smaller, and adopting new technology has often been seen as expensive and complex. But with the right supports and partnerships, the kind Mitacs can bring, AI may ease the integration of new technology to existing processes and optimize costs, allowing smaller firms to leapfrog innovation.
MP: How can the strength of Canada’s AI ecosystem help Canadian businesses accelerate AI adoption?
JH: Canada is recognized as a global-leading AI research hub. We’ve nurtured an environment that attracts and retains the world’s top AI talent, who not only are contributing to innovative programs and solutions but are training the next generation of AI leaders in Canada. We were the first country to release a national AI strategy and since 2017, over $2 billion have been invested to support AI and digital research and innovation. Being a leader in AI research isn’t enough, though — we need to leverage our advantage by forging a pathway for research to connect to the business level.
We’ve invested over $1.3 billion into research and development since 2010, directly supporting over 11,000 small businesses across the country.
2010, directly supporting over 11,000 small businesses across the country. Almost two thirds of the AI innovation we’ve supported is being led by small- and medium-sized businesses. We’re embedded in the AI ecosystem and continuously collaborate with prominent stakeholders in the Canadian AI community, including Mila, the Vector Institute for Artificial Intelligence, the Alberta Machine Intelligence Institute (Amii), and IVADO. These unique partnerships support the adoption of AI across diverse industries. One such initiative, Vector's FastLane program, involves facilitating access to AI talent for industries through collaborative efforts. Mitacs supports startups integrating AI into various applications by leveraging the expertise of the Vector Institute. This initiative allows startups to benefit from Vector's pool of AI talent and accommodates their interns within the dynamic heart of the AI ecosystem.
MP: How important is government investment in AI?
MP: How does Mitacs play a role in connecting AI research and industry?
JH: Through the generous support of our government partners, we’ve invested over $1.3 billion into research and development since
JH: Mitacs plays an important role as catalyst in AI adoption for Canadian businesses, but we can't do this important work without government investment and support. Funding enables Mitacs to significantly enhance the competitive edge of small- and medium-sized businesses through advanced AI applications. This strategic investment boosts AI infrastructure and research, enabling Mitacs to effectively channel these advancements directly into industry. By facilitating collaborations between academia and businesses, we serve as the conduit to transforming innovative AI research into practical, industry-specific solutions that spur growth and productivity across Canada’s economic landscape.
John Hepburn CEO, Mitacs
Why This Alberta Town Is Your Ideal Startup or Expansion Solution
As Alberta diversifies its economy, industries are exploring more rural locations. Affordable land and other incentives make Vegreville a popular industry choice.
Anne Papmehl
Vegreville, Alberta, known for its iconic world's largest Easter egg (Pysanka) monument and a vibrant calendar of festivals and events, attracts tens of thousands of visitors each year. However, this town is rapidly redefining its image from a sleepy community home to a famous 'roadside attraction' to a dynamic hub aimed at drawing new residents and businesses through affordability, accessibility, and innovation.
Affordability and incentives a draw
What’s drawing industries to Vegreville is the fact that the town offers them pretty much everything they need to start up, scale up, or expand — affordably. “We have fully serviced industrial land available at $50,000 per square acre,” says Tim MacPhee, Mayor of Vegreville. “I don’t know of anywhere else in Canada where they could buy land at that price.” The town is also immediately adjacent to Trans-Canada Highway 16, one of the country’s major transportation corridors, as well boasts a rail line right beside its new fibre optic-connected Prosperity Industrial Park. Vegreville also offers several incentives that accelerate the local permitting process, reduce red tape and save money. “Businesses can get all their permitting done much faster here, typically in under two days, and we recently passed a bylaw allowing businesses to apply for a machinery and equipment tax exemption,” says Mayor MacPhee.
A further advantage is that Vegreville is home to InnoTech Alberta, an applied research institute offering world-class expertise and industrial-scale facilities. “Some of the brightest minds in the agricultural industry are located here,” says Mayor MacPhee.
Finding a labour force and addressing the housing challenge
Enticing new businesses to a rural area is not without challenges. “We get the same two questions from industry people when we talk to them about relocating here: where’s the labour force going to come from and how are you going to house the employees,” says Mayor MacPhee.
The solution to these and other challenges may reside with one of the new enterprises moving to Vegreville. Arctic Response Canada has announced plans to create an immigration onboarding and training centre. In collaboration with the Edmonton Newcomer Centre, this facility will offer newly landed Canadians the opportunity to experience the affordability and accessibility of a smaller community while receiving training for careers in high-demand industries. “We know there are a lot of new Canadians with skills and education, and we, with the help of Arctic Response Canada, want to connect them to the industries that are presently in Vegreville, or that have expressed interest in coming to Vegreville,” says Mayor MacPhee.
AJN Investment & Development is another innovative business that will be moving to Vegreville, having recently announced a plan to build in the municipality’s Prosperity Industrial Park. AJN Investment & Development produces cementitious wall panels that have the potential to greatly ease Canada’s affordable housing shortage. “These are highly insulated, fireproof, waterproof, and meet or exceed all necessary certifications for use in Canada,” says Miles Berry, AJN’s Corporate Head of Innovation, Marketing, and Business Development. In May of this year, AJN signed an agreement with the Town of Vegreville to build the first of several $10.6-million-dollar factories in Alberta, using many materials available nearby.
Innovative approach leads to lower-cost housing AJN’s approach to these prefabricated wall panels allows for markedly reduced costs and a more condensed and predictable construction build cycle. “They can be quickly and easily installed on houses at a much more affordable price,” says Berry. “With that kind of efficiency, we can help address the challenge of housing the influx of new workers coming to town and possibly achieve a meaningful dent in the national housing crisis as well.”
That’s significant given Canada’s current three-million-unit shortfall. To address this,
federal and provincial governments are partnering with municipalities to speed up new home building, often offering subsidies so they can be built and sold below market value. “Our view is that if we can substantially reduce the high construction costs, we don’t need to ask for government subsidies and we believe that’s a more innovative and sustainable way to balance the need for housing with economic growth,” says Berry.
As for handling Vegreville’s
We’re trying to bring Vegreville into a whole different light. We want to be a cutting-edge place to do business, educate our youth, and create jobs for them to come home to.
to build their manufacturing facility in Prosperity Industrial Park and we’re now working with them and other developers to build new neighbourhoods in our communities” adds Mayor MacPhee.
Showing Vegreville in a new light
Just as Alberta is growing by leaps and bounds, so is Vegreville. “We’re not going to be your grandfather’s Vegreville anymore,” says Mayor MacPhee. “We’re trying to bring Vegreville into a whole different light. We want to be a cutting-edge place to do business. We take pride in educating our youth and now we're creating jobs for them so they can continue to call Vegreville home. We have a lot going on right now and AJN and its panel system are just the start.”
Tim MacPhee Mayor, Vegreville Miles Berry Corporate Head of Innovation, Marketing, and Business Development, AJN Learn more about Vegreville’s affordability
This article was sponsored by the Town of Vegreville
How the City of Fredericton Has Embraced a Culture of Innovation
The City of Fredericton’s transformation into a thriving knowledge-based economy has made it a hot spot for innovation and investment.
Tania Amardeil
The city of Fredericton, the capital of New Brunswick, has come a long way. Its population, talent base, knowledge economy, entrepreneurial spirit, and smart city infrastructure are all growing.
Historically, Fredericton was seen primarily as a government and university town. However, starting in the 1990s, the city recognized the need to diversify its economic base and foster growth other industries.
The resulting strategic investments and planning saw Fredericton evolve into a diversified knowledge-based economy, with significant growth in IT, engineering, environmental industries like geomatics and geodesy, computer science, including cybersecurity, and emerging biotech sectors. In the past decade, the city’s population has increased by 20,000, currently sitting at approximately 74,000 residents. If ever there was a city on a remarkable upward trajectory, it’s Fredericton.
Synergy between academia and industry
Because Fredericton is home to New Bruns-
wick’s largest university, the University of New Brunswick (UNB), the city has always had a natural strength in knowledge industries. The evolution that began 30 years ago was a logical progression from these academic roots. As Fredericton looked to diversify its local economy this was the start of Fredericton’s knowledge economy.
Post-secondary institutions, including UNB, St. Thomas University, New Brunswick Community College, and the New Brunswick College of Craft and Design, collaborated with the City to foster innovation and entrepreneurship, attracting talent and investment.
“The government and universities provide a stable base for Fredericton,” says Ken Forrest, the City of Fredericton’s Director of Planning and Development. “The knowledge industry creates opxportunities for commercialization, generating employment and economic activity. This growth has spurred the expansion of other sectors, like construction, retail, and services.”
Supporting and fuelling innovation Fredericton has implemented smart city initiatives to drive ongoing growth and
Should Food Be Seen as a Human Right or as a Privilege?
Up to 783 million people globally are going hungry, and rising inflation is making food even less affordable.
Christina Philips, Canadian Foodgrains Bank Director of Resources & Public Engagement
The human right to food is affirmed by governments and religions around the world. Yet, up to 783 million people live with chronic hunger. And inflation, driven by the lingering effects of the pandemic and major conflicts, is exacerbating the global hunger crisis.
In Ethiopia, the cost of beans increased by 237 per cent between 2019 and 2023 in Canadian Foodgrains Bank’s food assistance programming. In Syria, partners had to adapt the content of their food assistance boxes because certain items became inaccessible or unaffordable due to inflation costs. And in places like Venezuela, hyperinflation has pushed thousands of people to flee to neighbouring countries in search of affordable food.
For humanitarian workers on the frontlines in crisis situations, the rising cost of food means being forced to make tough decisions. Do they choose to feed fewer people, or serve more people with less food?
Responding to inflation
Through its network of member agencies, Canadian Foodgrains Bank works with partner organizations in 35 countries to end hunger. This includes humanitarian food assistance during crises caused by conflict or climate events like floods, droughts, and earthquakes, and long-term food stability through trainings for small-scale farmers in techniques such as conservation agriculture.
A dollar may not go as far as it did before. But the challenge of inflation spurs us on even more toward our mission of ending hunger around the world — to help every woman, man, and child yearning to experience food security.
innovation. It was one of the first cities to provide ubiquitous free WiFi. And now Fredericton has invested in digital infrastructure such as a municipally owned fibre optic network, and physical infrastructure, including the Innovation District as well as large district for innovation and technology in the city's uptown.
Fredericton has emerged as one of Canada’s most dynamic and successful small cities.
To grow its knowledge industry, Fredericton has launched programs such as Boost Fredericton (a living lab for civic innovation), Ignite Fredericton (economic development and startup support), and the Planet Hatch incubator (space and programming for new ideas).
The benefits are widespread. The city offers a good quality of life, and its economy is stable and diverse. “Fredericton has emerged as one of Canada’s most dynamic and successful small cities,” says Forrest.
An interview with Michelle Auger, Senior Policy Analyst at the Canadian Federation of Independent Business (CFIB), on Canada’s new importing system and why it’s important for small businesses to get registered.
What is CARM and what is it meant to do?
The Canada Border Services Agency (CBSA) Assessment and Revenue Management System (CARM) will be the official system that all importers must use to pay duties and taxes.
Recently, CARM’s public launch was rescheduled from May to October 2024. This was a welcome decision given that only a quarter of SMEs involved in trade are currently registered with CARM. Our data shows that most importers are simply not aware of the portal’s existence, and most small businesses only import about once or twice a year, so it’s important to raise awareness and give them more time to familiarize themselves with the system.
What should CBSA do to ensure the system’s smooth transition for small importers?
From the onset, we’ve been requesting better communication in plain language, and more education for business owners to understand CARM changes by October 2024. Businesses aren’t experts in customs procedure, so we would also welcome alternative options, such as allowing a broker to manage all CARM functionalities within the portal on their behalf.
Want to learn more about CARM? Scan the QR code for CFIB's webinar with CBSA
Michelle Auger
Senior Policy Analyst, Canadian Federation of Independent Business (CFIB)
