Peter Stoicheff, is president and vice-chancellor of the University of Saskatchewan, and chair of the U15 Group of Canadian Research Universities.
Finance Minister Chrystia Freeland’s Fall Economic Statement signalled to the world that Canada is committed to escalating the fight against inflation, accelerating the move toward a net-zero economy and strengthening the country’s social safety net.
To ensure that the 21st century truly “belongs to Canada,” however, will also require ambitious investments in university research to meet growing competition – not only from the U.S., but also Britain, Germany and Japan, all of which have recently increased R&D funding by significant amounts.
U.S. President Joe Biden’s Inflation Reduction Act (IRA), which includes US$370-billion for climate and energy-focused initiatives, is referenced as a model for Ms. Freeland’s strategy. What must be recognized, however, is that the IRA is just one part of an ambitious two-part approach to relaunch the U.S. postpandemic economy.
On July 28th, in a rare display of bipartisan support, the U.S. House of Representatives passed the other part of the strategy – the CHIPS and Science Act – that will enhance fundamental research by investing in the most innovative ideas across all areas of science and engineering to help solve current and future challenges. Over the next five years, the act will double the base budget of the National Science Foundation, the primary agency for funding academic research and technology development.
Roughly a third of this funding will go to a new Directorate for Technology, Innovation and Partnerships that will turn fundamental research discoveries into strategically important technologies and services, and make them available to innovative companies capable of bringing them to market. Initially, the focus will be artificial intelligence, robotics, quantum computing and biotech. In the future, the discoveries made in research facilities across the country will determine the areas of strategic importance.
The CHIPS Act will also provide US$2.6-billion yearly in new money for STEM education, including support for scholarships, fellowships and traineeships to prepare workers for critical fields such as artificial intelligence, microelectronics education and cybersecurity. Added to the billions already invested by the National Science Foundation, the National Institutes for Health and numerous other departments and agencies, this new level of funding will attract the best and brightest young talent from around the world to the U.S.
Overall, the U.S. two-part strategy emphasizes that increased investments in science, research and innovation must underpin initiatives to move toward a prosperous and sustainable future.
Meanwhile, Canada over the past two decades has built an enviable reputation as a leading science-and-technology-development nation with major public investments in university research. But investments in publicly funded research are not keeping pace with those of many other countries. We are not developing the number of highly qualified individuals needed to drive our rapidly developing innovation economy. Canada now stands 28th in the OECD in graduate-level educational attainment.
There is a real risk that we will return to the 1990s, when examples of brain drain were often in the headlines as top researchers, scientists and engineers left Canada for greener pastures.
Major new investments in university research would develop the highly qualified talent increasingly needed to drive innovation in all sectors. Such investments will also spur brain gain through increased opportunities for international graduate students to make Canada their new home.
Public investment in university research also leverages private-sector investment in collaborative projects that help drive an innovative economy. Until recently, low business investment in research and development reflected the fact that many sectors did not feel competitive pressure to improve their operations.
In recent years, however, extreme weather events have made innovation for sustainability more urgent than ever, while the pandemic has accelerated the need for digital transformation to serve customers and citizens. Today, business investment on Canadian campuses amounts to $1.3-billion and is growing each year as companies increasingly focus on innovation.
Now is the time for the federal government to respond to the growing international investment in R&D and talent in order to be globally competitive in the 21st century. Canada must renew its talent-based research advantage to help drive the economic growth we urgently need to build a prosperous, sustainable and resilient future.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
