December, 17, 2024 – Ottawa, ON

Yesterday, the Government of Canada tabled its 2024 fall economic statement. After spending the past few weeks managing expectations and signalingsignalling fiscal restraint, Minister Chrystia Freeland announced her sudden departure from the role as Federal Finance Minister hours before the scheduled release. Instead, the fall economic statement was quietly launched, unveiling a budget with new spending focused on artificial intelligence and clean energy, as well as tax incentives for businesses and entrepreneurs. 

So, what does this budget table for science and research-related investments? 

A Quick Recap

Earlier this year, the 2024 budget announced significant funding for science and research, including investments in core funding for federal granting councils, research infrastructure projects, graduate student scholarships, grant management systemsystems, AI research and infrastructure, and strategic science partnerships. In the period between the significant investments announced in both the 2024 and 2018 budgetbudgets, the federal government had taken the approach of wide-ranging targeted investments from year to year. 

These include the 2019 commitments to expand support for research trainees, followed by pandemic-focused funding throughout 2020, and investments in artificial intelligence, quantum technologies, and bioinnovation in 2021. The 2022 budget prioritized measures to accelerate innovation and build intellectual property, including the creation of a federal innovation and investment agency (newly coined the Canadian Innovation Corporation). Budget 2023 saw few investments in science and research, focusing more specifically on funding for applied research and innovation partnerships, natural resources R&D initiatives, and high-tech projects in quantum computing and AI. 

Finally, the 2023 fall economic statement focused more particularly on themes of clean energy research and advancing technologies, and skills development training for roles in science, technology and infrastructure. 

A Summary of Science-Related Commitments in This Year’s FES

When it comes to science and research in the 2024 FES budget, there are investments in a few targeted areas – namely, artificial intelligence, clean energy and natural resource development, business-driven research and development (BERD), and workforce training.

But when it comes to the long-standing challenges in Canada’s science and research ecosystem, the 2024 fall economic statement more or less kicks the can down the road. The federal government alludes to previous 2024 budget investments and the importance of investing in Canadian research, indicating that “further details will be announced in the coming months”. 

Gaps in Science-Related Commitments in This Year’s FES

As highlighted in Budget 2024, the government proposed it “will create a new capstone research funding organization…to maximize the impact of federal research support across Canada’s research ecosystem”. While no additional announcements were made on the funding, status, or structure of the new capstone organization, or regarding an increase to base funding for federal funding agencies, the government proposed it would introduce additional federal research support, indicating that “further details will be announced in the coming months”. 

Below, we highlight key science and research-related investments in the 2024 Fall Economic Statement.

Investments in Artificial Intelligence

• “$60 million to support AI institutes Mila, Vector, and Amii, to provide compute capacity to their researchers and clients.
• “$150 million over 3 years to invest in the Global Innovation Clusters, to support the continuation of their AI commercialization activities.
• “$24 million over 2 years to invest in the National AI Institutes, to support the continuation of their AI commercialization activities.

Investments in STEM Training

• “$3 million over 5 years (and $600,000 ongoing) to support Shad Canada (Mila, Vector, Amii), to expand their programming and operations to help more high school students discover their passions for STEM and innovation.

Investments in Clean Energy

• “$3.1 billion over 2 years to allocate from the Budget 2024 to the Atomic Energy of Canada Limited, to support nuclear research and environmental protection initiatives.

Investments in business-enterprise R&D

• “$1.1 billion to boost the Scientific Research and Experimental Development tax incentive program, administered by ISED, to better incentivize private and public corporations to contribute to research and development (R&D) initiatives across Canada.

Proposed Regulatory Measures

• The government proposes to permit the Financial Transactions and Reports Analysis Centre (FINTRAC) to disclose information to support the Office of the Commissioner of Canada Elections to detect and deterin detecting and deterring illicit financing and foreign interference in Canadian elections. 
• $27.8 million over 5 years for a new Red Tape Reduction Office, sourced from existing resources of the Treasury Board Secretariat. This new office will be asked to “improve accountability, oversight, and transparency”

Opportunities for Science and Expert advice

• The government proposes to legislate the role and mandate of the Chief Science Advisor, however, no further details are provided as to when this may be put forward.