The Subsidization of Innovation Projects by the Government of Canada

Stephen J. Kees was Chief Librarian, Niagara College of Applied Arts and Technology, Welland, Ontario.

In order to encourage firms to undertake activities (such as research and development) that they would not undertake on their own, governments have developed various methods of persuasion, including direct subsidization of such projects.

Following a chapter on the economic theory relating to such subsidization, the author goes on to discuss its application to two specific programs, the Enterprise Development Program (EDP) and the Defense Industry Productivity Program (DIPP). Both programs ran under the control of the Department of Industry, Trade and Commerce. A further chapter considers in less detail three programs administered by the National Research Council.

The reviews are generally critical of the administration of the programs and offer suggestions as to how the programs could have been better administered.

The work concludes with a recapitulation, technical and statistical appendices, and a short bibliography. As a critical review of some probably typical government programs, this work is enlightening to those who have sufficient prior understanding to be able to appreciate it.