CONTENTS
Standing Committee on the Economy
Innovation Saskatchewan Vote 84
THIRTIETH
LEGISLATURE
of
the
Legislative Assembly of Saskatchewan
THE
ECONOMY
Hansard Verbatim Report
No.
4 — Tuesday, April 8, 2025
[The
committee met at 16:59.]
Chair
Thorsteinson: — Good evening, everybody. Welcome to the
Standing Committee on the Economy. I’m James
Thorsteinson. I’m the Chair of the Standing Committee
on the Economy. With us here tonight are Kevin Weedmark, Darlene Rowden, Hon.
Terry Jenson, Kim Breckner, Tajinder Grewal, and sitting in for Sally Housser
we have Bhajan Brar.
[17:00]
General Revenue Fund
Innovation Saskatchewan
Vote 84
Subvote (IS01)
Chair
Thorsteinson: — Tonight we will be considering the
estimates and supplementary estimates no. 2 for Innovation Saskatchewan.
We will now begin with consideration of vote 84, Innovation Saskatchewan,
subvote (IS01).
Minister Kaeding is here with his
officials from the agency. I would ask that officials please state their names
before speaking into the microphone. As a reminder, please do not touch the
microphones. The Hansard operator will turn your microphone on when you are
speaking to the committee.
Minister, please introduce yourself and
your officials and make your opening remarks.
Hon. Warren
Kaeding: —
Good evening. Thank you, Mr. Chair, committee members. I’m pleased to be here
for a consideration of the 2025‑26 estimates for Innovation Saskatchewan.
Here with me today are officials from
the agency. To my left is Kari Harvey, our chief executive officer. To my right
is Brent Sukenik, our vice-president of corporate strategy and services; Avery
Vold, our vice-president of academic research investments and life science
innovation; Drew Dwernychuk, our vice-president of energy, mining, ICT [information
and communications technology] and ag tech innovation; and Kelley Moore, our
vice-president, research and technology park operations. I would also like to acknowledge
my chief of staff, Drew Lumbard.
Mr. Chair, committee members, I hope you
will bear with me as I want to spend some time describing the many, many
incredible accomplishments and achievements found within our province by the
tech sector and done by the folks sitting both besides and behind me today.
Saskatchewan is built on innovation and
collaboration. From pioneering agricultural breakthroughs to revolutionizing
cancer treatments to save millions, our supportive connections open new
pathways for each other that help ensure the future health, safety, and
economic security of the province.
Now we see that same spirit embraced
nationwide as we come together in these unprecedented economic times. This
moment has reinvigorated our communities and reawakened us to the strengths
that we have right here in this province. Innovation Saskatchewan sees
tremendous opportunity to elevate our global innovation leadership and position
our province as a premier destination for research and technological
advancement, driving economic growth and employment.
Since 2009 this agency has been
responsible for advancing the Government of Saskatchewan’s innovation
priorities and has had a profound impact on the province’s tech sector and
research community. The agency launched core funding programs like the Agtech
Growth Fund and Saskatchewan Advantage Innovation Fund, which are dual research
and development grant programs advancing the commercialization of game-changing
technologies.
As well as the made-in-Saskatchewan
technology program, which connects companies with industry, public, and
non-profit partners to bring new technologies to market, Innovation
Saskatchewan also funds six major research institutes, some of which are national
facilities with state-of-the -art equipment and expertise only found in this
province.
In 2022 the Innovation Place research
and technology parks moved under the authority and management of Innovation
Saskatchewan, creating an agency unlike any other in the country. This unique
portfolio allows Innovation Saskatchewan to provide robust support, from
aggressive tax incentives for local investors, to flexible and specialized
spaces for start-ups, and investments for post-secondary research.
And perhaps most importantly, the deep
commitment to our government’s core values allows Innovation Saskatchewan to
fully maximize every dollar to ensure it provides the highest return for
Saskatchewan citizens and the world.
Mr. Chair, tonight I am proud to share
highlights of these immense impacts and show how Innovation Saskatchewan has
continuously punched well above its weight and will do so for many, many more
years.
In ’25‑26 the agency will continue
to focus on its four strategic goals to create economic growth and diversity.
Goal (1) ensure that Innovation Saskatchewan is funding research that is
creating economic impact and is aligned with Saskatchewan’s research and development
priorities; (2) build and support a sustainable and inclusive technology
sector; (3) focus resources into areas of strategic advantage and opportunity
such as ag tech, health tech, and cleantech to position Saskatchewan as a
world-class innovation hub; and (4) is to make Saskatchewan the premier
destination for local, national, and international research and innovation.
Innovation Saskatchewan has helped
create a dynamic research and tech environment in the province and is
continually strengthening its support to ensure global industry and innovation
leaders know that great ideas grow here.
This fiscal year the agency will receive
a budget of $32.5 million, a 5 per cent increase from the ’24‑25
budget. This new budget includes two main commitments that will invest in
revitalizing crucial infrastructure to further elevate the province’s global
research leadership position.
The first is a $3 million
commitment to the Canadian Light Source, or CLS, to upgrade essential
equipment, matching a $3 million investment from the federal government.
CLS is one of four Major Science Initiatives Fund’s research facilities of
national importance in Canada that call Saskatchewan home. This national
research facility operates Canada’s only synchrotron, a powerful instrument
that enables scientists to study the structural and chemical properties of
materials at the molecular level, advancing discoveries and technologies that
will transform our world.
Specifically the unique infrastructure
allows researchers to utilize beamlines for more advanced and experimental
techniques not possible at other facilities in the country and has led to
breakthroughs in innovative health, agriculture, environment, and advanced
materials research. Additionally CLS offers its full service to industry
clients, making it one of the most accessible synchrotron facilities in the
world and a crucial part of furthering and attracting global partnerships.
Since the facility began operations in
2005, almost 6,000 researchers have used CLS for incredible discoveries, from
helping in the fight against COVID‑19 to creating new cancer-fighting drugs, developing
more nutritious and climate-resistant crops, and supporting cleantech and green
mining processes.
This additional commitment by Innovation
Saskatchewan will ensure reliable and sustainable operation of the CLS so that
the facility can continue to serve more than 1,200 scientists annually from
across Canada and around the world. This will help researchers solve the
world’s greatest challenges, train the next generation of scientists, and
support industries to become more efficient, innovative, and sustainable in
their practices. Importantly this additional funding from Innovation
Saskatchewan will ensure that CLS will continue its legacy of innovation right
in Saskatchewan for future generations.
Mr. Chair, the second commitment is $4.1 million
for the Vaccine and Infectious Disease Organization, or VIDO. This builds on
Innovation Saskatchewan’s $15 million commitment in 2021 to expand the
capabilities for the organization to become Canada’s centre for pandemic
research. VIDO is another of Canada’s major science initiatives research
facilities of national importance located in Saskatchewan. It has been a world
leader in infectious disease research and vaccine development for humans and
animals for nearly half a century and is now one of the largest and most
advanced containment facilities in the world.
VIDO is a vertically integrated
organization with extensive vaccine manufacturing infrastructure, including
containment level 2 and 3 facilities. This commitment will help upgrade VIDO’s
infrastructure to include containment level 4 standards, the highest level
possible, and large animal housing and vaccine manufacturing, making VIDO one
of only a few facilities in the world with this capacity for infectious disease
research and development of new medicines.
These enhancements to CLS and VIDO are
essential to strengthening the province’s presence in the life sciences sector
to successfully embrace major opportunities emerging globally in health
research and innovation. They will also strengthen Canada’s pandemic
preparedness and ensure Saskatchewan is helping lead the response to any future
global health crises that impact our communities.
Moreover, these commitments complement
additional investments that Innovation Saskatchewan has made to strengthen
existing facilities that are foundational to the province’s research landscape
and make it easier for innovators to develop ideas in Saskatchewan. An effect
of this work is the attraction and retention of top talent and the provision of
critical made-in-Saskatchewan solutions worldwide.
As examples of the agency’s ongoing
commitments to other research facilities, Innovation Saskatchewan announced
additional investments for the Petroleum Technology Research Centre, or PTRC,
and the Sylvia Fedoruk Canadian Centre for Nuclear Innovation, known as the
Fedoruk Centre, in 2024. The agency helped establish PTRC’s new Energy Innovation
Hub at Innovation Place in Regina, with $1.5 million to help meet current
and future demands for energy research and innovation.
PTRC is an industry-driven research
organization and has been on the forefront of energy research for over 26
years. It is a world leader in carbon capture, utilization, and storage;
enhanced oil recovery; and geothermal energy. The Energy Innovation Hub allows
PTRC to advance these research strengths and expand its portfolio into emerging
and high-demand priority areas, including methane reduction, clean hydrogen,
and compressed air energy storage. This facility represents the future of
sustainable energy. It further elevates Saskatchewan’s position as a global
energy research leader and is fundamental in providing opportunities to train
the next generation of top energy experts in our province.
Innovation Saskatchewan also invested
$400,000 in the Fedoruk Centre in 2024 to support and expand nuclear research
in Saskatchewan. The Fedoruk Centre is an advanced science facility focused on
nuclear research, development, and training, and is also Saskatchewan’s sole
producer of FDG [fludeoxyglucose], a radiopharmaceutical required for PET
[positron emission tomography] and CT [computerized tomography] scans at
Saskatoon’s Royal University Hospital, which has increased vital health care
services for more than 3,000 patients each year, services that citizens could
previously only access out of province.
The Fedoruk Centre is also home to the
Saskatchewan synchrotron facility, one the few synchrotrons in Canada
accessible to external researchers and industry, which has been instrumental in
elevating Saskatchewan’s position as a global leader in nuclear research.
These commitments are in addition to
core funding provided by the agency to its six research partners that are vital
to the province’s research community and driving economic and employment growth
for our province, including $4.1 million for the CLS, 4.14 million
for VIDO, 1.675 million for PTRC, 2.5 million for the Fedoruk Centre,
and 256,000 for the industry-led International Minerals Innovation Institute,
or IMII, to support digital mining transformation.
IMII was established in 2012 with the
goal of building innovation and labour capacity in the province’s mining
industry and has expanded its visions to position Saskatchewan as a leading
mining jurisdiction through two primary areas: research and development
projects, and education and training programs. Since 2013 IMII has managed 50
projects worth more than $20 million through these initiatives.
Finally Innovation Saskatchewan will
provide $4.849 million in core funding for the Saskatchewan Health
Research Foundation or SHRF, which allocates funding to high-impact and
peer-reviewed health research relevant to the province. Since 2003 SHRF has
been responsible for managing the province’s investments in improving health
care through research and is actively engaged with the province’s research
institutions and post-secondary institutions. Over its more than 20‑year
history SHRF has funded a total of 1,381 projects and injected over $92 million
of direct investment into the health research ecosystem in Saskatchewan,
improving the lives of people in our communities.
Mr. Chair, Saskatchewan has a long
history as a research pioneer and has evolved into a one-of-a-kind research
powerhouse in our country that is not only impacting our global communities,
but generating tangible economic benefits for our province. Cumulatively our
post-secondary institutions generated more than $472 million in research
revenue, according to the latest data available from the ’23‑24 fiscal
year.
Innovation Saskatchewan has already
taken next steps to attract more international partnerships and collaborations
for our research community. The agency signed a memorandum of understanding
with the German Academic Exchange Service, or DAAD [Deutscher Akademischer
Austauschdienst], to encourage increased research and academic collaboration
between Saskatchewan and Germany. DAAD is one of the world’s largest and most
important funding organizations for the international exchange of researchers
and students.
[17:15]
In March, Innovation Saskatchewan hosted
the ISED [Innovation, Science and Economic Development Canada] Horizon Europe
secretariat at its Saskatoon research and technology park during the
organization’s cross-Canada tour. Horizon Europe is the world’s largest
research and innovation funding program and recently expanded programming
access to Canadian researchers. This will provide Saskatchewan researchers with
significant funding and partnership opportunities with European researchers in
areas already aligned with our province’s strengths and priorities.
These are two direct pathways that
Saskatchewan can use to enhance its participation with global partners in the
development of innovative solutions to address the greatest challenges facing
our communities, helping protect our populations, our global economies, and our
food systems.
Mr. Chair, in addition to these supports
for our research community, the agency’s Innovation and Science Fund, or ISF,
matches federal innovation funding dollars for projects from Saskatchewan
universities, colleges, and research institutes to promote research excellence
and competitiveness in the province. For example, in 2024 ISF invested $200,000
in a project at the University of Regina that aims to make small modular
reactors, or SMRs, safer and more efficient. With the world’s renewed focus on
nuclear energy, this project will provide valuable insight for Saskatchewan’s
government and industry as well as advanced training and employment
opportunities in SMR, technology that will benefit our province.
ISF is a critical funding source for
research projects in the province like this to secure and leverage federal
funds and grants. Since 2018 Innovation Saskatchewan has invested over
$18 million in ISF funding into innovative projects in Saskatchewan
institutions. In turn they have leveraged $137 million in external
investment with a 13 to 1 return on investment.
Innovation Saskatchewan will also
continue funding for its other core programs. The agency is allocating
$1 million each to the Saskatchewan Advantage Innovation Fund, or SAIF,
and the Agtech Growth Fund. As noted, these dual research and development grant
programs accelerate the commercialization of game-changing technologies
focusing on agriculture, mining, energy, manufacturing, and health care.
Innovation Saskatchewan’s investments in these programs have generated
exponential returns for the province’s economy as companies choose to stay,
grow, develop their technologies, and collaborate with industry.
Combined since 2019, SAIF and AGF
[Agtech Growth Fund] have committed more than $20 million to 85 projects
resulting in more than $147 million in post-project investment and a 343
per cent return on investment on average. Innovation Saskatchewan is allocating
$100,000 between the made-in-Saskatchewan technology program, or MIST program,
and the Innovation Challenge, which are two programs aiming to address public
sector challenges with local innovative solutions.
Rising Saskatchewan success stories like
Luxsonic Technologies and Rivercity Innovations used these programs early in
their journeys to test and refine their technologies. Now these companies have
expanded well beyond our provincial borders, sharing their solutions — like
immersive technology to improve access to health care and automated temperature
monitoring to reduce carbon footprints and food waste — while keeping their
companies firmly rooted in Saskatchewan.
Mr. Chair, alongside its core funding
programs, the agency will also continue to support the innovation ecosystem
through additional commitments. Innovation Saskatchewan will provide $375,000
to Co.Labs, Saskatchewan’s first technology incubator and a critical pillar in
the tech community. Co.Labs’ start-ups set a new record for growth, generating
a total revenue of $81 million since inception in 2017. This rise follows
a 48 per cent increase in revenue generated from ’22 to ’23, marking significant
and sustainable growth and underscoring the viability of Saskatchewan’s tech
start-ups. Since its launch in 2017, Co.Labs has incubated 214 start-ups which
have created over 903 jobs and raised $50.6 million in private investment.
The agency also supports Cultivator’s
Agtech Accelerator, which connects companies developing cutting-edge
agriculture technology with industry and investors. To date the accelerator has
supported 47 companies from three cohorts, with cohort four recently started.
Together they have raised $119.2 million in private capital,
72.1 million in revenue, and created 193 new jobs.
Aligned with this, Innovation
Saskatchewan also continued investing in Canada’s largest agtech venture
capital fund, Emmertech. This is part of the $15 million commitment
announced in 2020 to invest $3 million per year over five years to ensure
ag tech start-ups in Saskatchewan continue scaling and growing.
Emmertech has already supported five
scaling Saskatchewan companies, including Rayhawk and Lucent Biosciences, which
are having a significant impact in our province and are on the cusp of global
expansion. For example, through support from Emmertech, Lucent Biosciences
established the first industrial-scale fertilizer production facility in
Rosetown, which enabled the company to transform from a research entity into a
commercial entity, moving all manufacturing from BC [British Columbia] to
Saskatchewan and create 15 jobs with more than half of the company’s employees
based in our province.
In 2025 Emmertech led a $3 million
financing round for Rayhawk to further develop its autonomous rail car loading
solution after an initial $450,000 SAIF funding round in 2022. Rayhawk’s
technology is already used by global enterprises in the mining industry, and
this funding will help the company expand into the agriculture industry with a
focus on grain-handling and food processing plants.
These types of investments are critical
for our province and national growth. It is predicted that by accelerating
investments in technology, agriculture has the potential to add
$11 billion to Canada’s gross domestic product by 2030. Additionally, investing
in high-growth start-ups with high market potential like Rayhawk and Lucent
Biosciences shows how Saskatchewan’s innovation ecosystem effectively works
together to provide funding support for start-ups at all stages and drive
economic growth.
Innovation Saskatchewan has also
committed $400,000 to the technology ecosystem program which supports
stakeholder programs and initiatives that advance tech sector growth. For
example, through this program, Innovation Saskatchewan supports Opus which is a
new start-up incubator and pre-accelerator program for the USask [University of
Saskatchewan] community headquartered in Collider at Innovation Place in
Saskatoon.
Opus fills a gap in our innovation
ecosystem by focusing on commercializing deep tech innovations that are
research based, equipping founders with the necessary skills for start-up
development with the end goal of facilitating their progression to other accelerators
and incubators like Co.Labs and Cultivator.
Opus is already seeing success in its
missions through PathoScan which is a revolutionary crop disease diagnostic
tool that enables farmers to perform real-time crop pathogen testing anywhere
without it requiring any technical background. PathoScan is another
made-in-Saskatchewan company that has benefited from the unwavering support in
our province’s tech ecosystem, fuelled by strategic investments from Innovation
Saskatchewan.
Since winning Co.Hack at Co.Labs,
PathoScan was accepted into Cultivator’s Agtech Accelerator program, receiving
$75,000 in the Agtech Growth Fund, won Startup TNTs 2024 investment summit, and
was then accepted into Opus. Through this journey, PathoScan has had the
opportunity to refine its product for market and is ready to share it with
global industries.
Access to these unique supports is
removing barriers for Saskatchewan innovators, attracting and retaining top
talent, and driving economic and employment growth. In fact since 2019
Saskatchewan’s tech sector has experienced a remarkable 100.86 per cent increase
in employment growth rate. That’s 715 new jobs per year on average, a pace that
will exceed our 2030 growth plan target. It’s also the highest employment
growth rate out of any of the Prairie provinces, surpassing both Alberta and
Manitoba.
Hundreds of tech companies in diverse
fields, like precision ag tech and immersive health tech, are choosing to stay,
to build and grow here because of the vibrant ecosystem. The new Saskatchewan
Polytechnic, Joseph A. Remai Saskatoon campus at Innovation Place in Saskatoon
officially broke ground on the site of the first building, the new skilled
trades and technology building. This will add a new dimension to the
first-of-its-kind innovation corridor in Saskatoon and open more opportunities
for everyone, from students learning new skills to start-ups looking for
untapped talent and to established companies and researchers building
partnerships.
Innovation Saskatchewan also sees a huge
opportunity to revitalize its park infrastructure in Saskatoon as well as
address an opportunity to further support these growing companies. The agency
will continue its planning to transform the Galleria west wing into a
multi-tenant space for scaling companies in key sector industries like ag tech
with integrated laboratories, pilot plant space, and other specialized
infrastructure.
Many of these companies have longer
development timelines and require specialized infrastructure, unlike typical
software start-ups. This project addresses these needs and adds capacity for
scaling companies that have outgrown incubator or co-working space but have not
yet reached the manufacturing phase.
From tech pioneers like Luxsonic
Technologies and PathoScan at Innovation Place Saskatoon, to industry-focused
sustainable energy experts like PTRC at Innovation Place Regina, to major
national research institutes like VIDO and CLS on the U of Sask
[University of Saskatchewan] campus, Saskatchewan, it’s well positioned to
elevate its global innovation leadership. This dynamic environment connecting
academia, industry, and government, providing comprehensive supports and
driving research and technology advancement, is exactly what Saskatchewan
imagined for its innovation ecosystem and why Innovation Saskatchewan was
created. Put simply, proximity leads to collaboration leads to innovation. That
is at the heart of everything that the agency does.
The agency’s unparalleled support for
our tech sector and research community has helped Saskatchewan leverage its
unique advantages and have an outsize impact in the world. Our province is
unmatched in its access to world-class research infrastructure, abundant
natural resources, and government-supported programs and tax incentives, and is
backed by a collaborative environment between industry, academia, and
government. These advantages, combined with the top talent in our province,
have already made us leaders in key economic sectors like agriculture and
energy.
In 2024, Saskatchewan exported more than
$18.5 billion in agriculture products, accounting for 41 per cent of total
provincial exports. Much of that success is due to so many years of crop
science work by Saskatchewan’s researchers and innovative agtech solutions that
revolutionize how we farm, what we grow, and how we export. Saskatchewan has
become synonymous with energy, and as a world-leading research in sustainable
areas like carbon capture and sequestration that allows us to produce 457,000 barrels
of oil daily with a smaller environmental footprint than our global
competitors.
This pioneering research in subsurface
energy has laid the groundwork to transition to renewable areas like geothermal
and compressed air energy storage while continuing to ensure a diverse energy
mix to safeguard Canada’s energy security. The province is also primed to grasp
opportunities in emerging global sectors like life sciences in mining and
critical minerals, where new technologies and solutions are in high demand.
Our life science sector is built on our
strong foundation in agriculture and key research infrastructure like CLS,
Fedoruk Centre, and VIDO, critical to advancing research in critical areas like
nuclear medicine and vaccine production. Saskatchewan also has deep roots in
the fast-accelerating mineral sector, alongside the first rare earth elements
commercial facility in North America, that will allow us a chance to lead in
what could be a $770 billion market by 2040.
Innovation Saskatchewan is ready to help
usher in this new era of global innovation and take the next steps towards our
province’s bright future.
In closing, in ’25‑26 the agency
will expand on its strong foundations to extend support for Saskatchewan’s
innovation ecosystem and continue to champion the Saskatchewan advantage as the
province strives to be the best place to develop a technology company and
undertake advanced research to solve global challenges. The government is proud
to have Innovation Saskatchewan leading this mission, strengthening our
province’s core sectors while boldly advancing innovation to support the goals
of our growth plan.
Mr. Chair, as you’ve been maybe able to
tell, I am very excited about the opportunities that we have here. This
concludes my remarks, and I welcome any questions that the committee may have
on these estimates.
Chair
Thorsteinson: — Thank you, Minister. I will now open
the floor for questions. MLA [Member of the Legislative Assembly] Brar.
[17:30]
Bhajan Brar: — Yeah, thank you,
Minister, and your staff for giving your valuable time. I want to welcome your
officials to the legislature and look forward to our discussion this afternoon.
My first question is does Innovation Saskatchewan have a 2025‑26
strategic plan similar to the other government agencies and ministries? And if
you do, can you please provide me a copy?
Hon. Warren
Kaeding: —
So we produce an annual report. The 2024 annual report was tabled last July,
and you would expect the 2025 annual report to be tabled approximately the same
time this year. And in that you’ll find it responds to our strategic objectives
and goals for Innovation Saskatchewan.
Bhajan Brar: — And my second
question is, the budget for Innovation Saskatchewan has increased by over 13
per cent this year, one of the largest percentage increases in the government
budget. Can you please explain what this increase is for, by project or
activity?
Hon. Warren
Kaeding: —
Mr. Chair, we’re going to need I guess clarification on the question. If you
could just repeat the question for us?
Bhajan Brar: — Yeah. The budget
for Innovation Saskatchewan increased by over 13 per cent this year, one of the
largest percentage increases in the government budget. Can you please explain
what this increase is for, by project or activity as compared to the last year?
Hon. Warren
Kaeding: —
So I’ll get Brent to go through kind of how we got to that expense increase.
Bhajan Brar: — Okay, thank you.
Brent Sukenik: — Brent Sukenik,
vice-president, corporate strategy and services. So the 13 per cent increase
that you’re talking about is just on the expense appropriation. In it there’s
three key areas that account for that increase. One is for salary adjustments
that were processed this year. There’s a $300,000 increase for FTE [full-time
equivalent] increase, and that’s for two new positions to support the research
strategy. And the remaining of the increase is to support the ISF program.
Bhajan Brar: — So for the salary adjustments, how much is the
amount of the increase? Salary adjustments?
Brent Sukenik: — Yeah, the first increase was the salary
adjustments.
Bhajan Brar: — Okay. Okay. And my third question is can you please
outline the projected budget for the respective research parks in Regina and
Saskatchewan, including the breakdown of revenue and expenses for each of the
three divisions overseen by vice-president, and then the budget for central
services overseen by your fourth vice-president? I would appreciate just the
high-level revenue and expenses . . . [inaudible].
Brent Sukenik: — Thank you for the question. We don’t have the
detail to break down by vice-president organization.
We have two parts of the agency, and this goes back to when the two
organizations were merged. So the research park operations are self-funded so
we don’t get an appropriation to support the research parks. The appropriation
that we do get really supports a portion of our organization. There’s
$3.9 million that supports the administration side of the business, and
then the remaining amount supports specific program funding.
Bhajan Brar: — The fourth
question is how much money does Innovation Saskatchewan plan to spend on
renovation or improvements to the research parks respectively in 2025‑26,
and comparatively how much did you spend in ’24‑25?
Brent Sukenik:
— All of our capital relates to the operation of the research parks. We are
budgeting $12.8 million of capital expenditures for this coming fiscal
year which includes the $4 million contribution towards advancing the west
Galleria project. So that $12.8 million consists of some IT [information
technology] capital. We have base maintenance capital, some infrastructure, and
tenanted landlord improvements. The budget for this year was
$11.8 million, so it’s about a million dollars higher year over year.
Bhajan Brar: — Is there any money
in the budget for improvements to the space provided by Innovation Saskatchewan
in ’25‑26? And how much was spent on space improvement for Innovation
Saskatchewan in 2024‑25?
Brent Sukenik:
— The $12.8 million for this year’s coming budget, that is all related to
the park investment. We don’t have any budget in there for our own
administrative offices, and that holds true for the ’24‑25 budget. All of
our capital expenditures were either in infrastructure or the base maintenance
capital for the parks.
Bhajan Brar: — Now the sixth
question: how many square feet of space are sitting vacant at each of the two
respective research parks as of April 1st, 2025?
Kari Harvey: — Hi. Kari Harvey,
CEO [chief executive officer] of Innovation Saskatchewan. Thank you very much
for the question. So in terms of our vacancy rate, the current vacancy rate of
our combined park infrastructure is 19.49 per cent. So that’s our combined rate.
I guess to put that into context, so as you know, we have two research parks,
one in Regina and one in Saskatoon, and there are a total of 26 buildings
across both the parks. Just under about 2 million square feet of facility
that we operate, and about 25 per cent of that would be considered specialized
space like greenhouses and that sort of thing. And so in terms of that vacancy
rate, we are looking at strategies to try to reduce those vacancy rates as we
can.
Bhajan Brar: — Is there any
square feet area vacant, do you know? What is the figure for that? What is the
figure for the square feet vacant, unoccupied?
Kari Harvey:
— The number that I have here is actually as of February 28th of 2025, there
were 324,400 square feet of vacant space at the two parks. So there was 220,700
in Saskatoon and 103,700 in Regina.
Bhajan Brar: — In Regina, how
much?
[17:45]
Kari Harvey:
— 103,700 square feet in Regina.
Bhajan Brar: — Can you list for
me how much funding is being provided by Innovation Saskatchewan to each of the
following organizations for the commercialization of innovation, research, and
technology? Number one, Canadian Light Source. Number two, Vaccine and Infectious
Disease Organization. Number three, Saskatchewan Health Research Foundation.
Number four, International Minerals Innovation Institute. Number five,
Petroleum Technology Research Centre. Number six, the Sylvia Fedoruk Canadian
Centre for Nuclear Innovation.
Kari Harvey:
— Okay. I’ll start with the Canadian Light Source. So the amount of funding
that we’re providing to the Canadian Light Source is $4.1 million. That’s
the amount of operating funding that we’re providing to the facility. As the
minister mentioned in his remarks as well, we are making a commitment to the
Canadian Light Source of an additional $3 million. That $3 million
will not all be spent in this year. We will be working with them on how the
cash flow for that funding will flow over the next few years.
But just to explain kind of what that
funding is being used for, so as you’re likely aware, the Canadian Light Source
has been in operation for about 20 years. And while, you know, equipment and
replacements have been ongoing, they’re really at the point where they need to
make some significant infrastructure investments in order to ensure reliability
into the future. And so it’s part of their facility strategy to focus on
reliability.
A number of projects have been
identified. The first one began in May of 2024, which is focusing on a total
replacement of the linear accelerator which had components that were end of
life. The second part to this replacement involves the installation of a new
storage ring solid state amplifier, and this will replace obsolete technology,
again to provide some long-term improvements and stability. So again, that’s
where our $3 million for investment will be directed to.
The solid state amplifier project will
involve replacing amplifier tubes, which is a 1940s technology that’s being
phased out of synchrotrons around the world and has a greater point of
single-point failure, and in addition replacement parts are no longer
available. This new technology is going to involve the implementation of
modular transistors to generate the power needed for the particle accelerators,
and these are made up of modules that can be replaced while keeping the
facility operational, and this will reduce downtime. So that’s not currently
possible in the current system. This is going to add critical reliability and
redundancy within the facility.
Once this piece is completed, once those
two projects are completed, that will set the stage for additional improvement
with the installation of a second radio frequency cavity which again will
provide some redundancy in the facility. So that’s what that investment will be
targeted towards.
As I mentioned, the 4.1 is the
contribution that we provide to the Canadian Light Source as part of the
provincial commitment to this national facility. The federal government also
provides funding through the Canadian Foundation for Innovation through their
MSI [major science initiatives] program, and they will be providing in the
neighbourhood of $20.5 million this year for that facility.
Bhajan Brar: — You are talking
about only Canadian Light Source. I am asking the other five also.
Kari Harvey:
— So the next one I’ll talk about is VIDO. So funding for this year remains at
4.14 million. And again that is operational funding that we provide. And
similar to the response I provided with CLS, that’s the provincial contribution
to this facility that’s funded through the Canadian Foundation for Innovation.
We will be also investing an additional
$4.1 million, or we made a commitment to an additional 4.1, and this is
really to help set up the pandemic centre of research excellence as well. That,
again, similarly to the 3 million that we will be providing for CLS, that
will be provided over a number of years as we discuss with VIDO sort of what
those milestones are at. That additional 4 million though that has been
committed basically provides the full funding required for that pandemic centre
to be fully constructed. And this is in addition to the 15 million that
was committed to previously for that project. So to date about
11.5 million has been provided. We have three and a half million from the
original 15 million and then this additional 4 million that we’ll be
discussing with VIDO sort of how that, again, what the funding needs are and
the milestones that they’re going to meet to receive that funding.
So the next one I’ll talk about is the
Fedoruk Centre. So the Fedoruk Centre, again we’re maintaining funding from
last year’s level which is at $2.5 million. And essentially the funding
that comes from Innovation Saskatchewan is essentially the majority of the
funding that they receive for operations. They do generate a bit of funding and
revenue in terms of their radioisotope production, but the majority of the
funding for operating the facility comes through Innovation Saskatchewan, and
that’s for both the centre itself and also for operation of the Saskatchewan
cyclotron facility as well. In 2024 we also provided the Fedoruk Centre with an
additional $400,000 to provide an opportunity to do a request for proposals for
research projects.
So essentially — and this kind of goes
across the board for all of the facilities and all the research institutes that
we fund — we do work with them. If there is additional initiatives that are
targeted, we will work with them to look at if there’s opportunities for us to
help support those initiatives as well.
The International Minerals Innovation
Institute — and as you know, the goal of that organization is to ensure that we
have a lead in mining jurisdiction through research and development in this
province — we are providing this year 256,000. So this is an
industry-member-oriented organization and industry driven. So the industry
members on the board also contribute membership fees. So they receive an
additional about 600,000 from industry for membership fees and also some
additional contribution to some projects that they might be funding.
The Petroleum Technology Research Centre
we provide 1.67 million, and that again is consistent with what we
provided them last year. The PTRC is a not-for-profit organization that
supports sustainable oil production through innovation and increasing the
production of other subsurface energy sources in the province. They manage the
Heavy Oil Research Network, which funds industry-driven projects to develop new
and sustainable EOR technologies. And they also manage the Aquistore project on
behalf of SaskPower, which takes carbon dioxide from the Boundary dam capture
facility and sequesters it permanently.
The PTRC has expanded its mandate
recently, in recent years, to lead research in developing emerging subsurface
energy opportunities and resources in Saskatchewan. So they’re working with the
mining industry to determine geological feasibility of carbon capture,
utilization, and sequestration hubs in the province. They’re providing support
to municipalities in looking at potential applications of geothermal heat and
also exporting Saskatchewan expertise in CCUS [carbon capture, utilization, and
storage] and measuring monitoring verification.
So in addition we last year also
provided the PTRC with an additional bump of 1.5 million. That will not be
provided in this year, but that 1.5 million was specifically to help
establish the Energy Innovation Hub. And the Energy Innovation Hub consolidates
critical energy research equipment infrastructure into a single integrated lab
under PTRC management, and it’s located at Innovation Place.
So they basically took on or absorbed
the equipment that SRC [Saskatchewan Research Council] and the lab that SRC was
operating in Regina as part of their operations now. And the hub was officially
announced, and that was opened in September of this year. And in addition,
PrairiesCan [Prairies Economic Development Canada], the federal government,
also provided an additional 1 million to the project as well.
Okay, and I think the last one that you
requested was the Saskatchewan Health Research Foundation. And again this is a
provincial agency that funds and supports high-impact, peer-reviewed health
research in the province. And so the province is the sole funder again through
Innovation Saskatchewan for this organization. And we will be providing
4.849 million, which again is consistent with what we provided them last
year.
Bhajan Brar: — The Canadian Light
Source is presently operating on a part-time basis. Is Innovation Saskatchewan
going to continue and fund the operation of the Canadian Light Source over the
next 5 to 10 years?
[18:00]
Kari Harvey:
— So the Canadian Light Source, as we mentioned earlier, is one of the four
major research facilities that are here in Saskatchewan funded by the Canada
Foundation for Innovation. And so again just want to give you a little bit of
perspective.
The Canada Foundation for Innovation has
identified 19 research facilities across Canada that are supported through this
program, and four of those are located here in Saskatchewan. So essentially
Saskatchewan receives about a quarter of the total funding from the Canada
Foundation for Innovation for these facilities in the province.
So that includes Canadian Light Source,
VIDO, SuperDARN, which is the Super Dual Auroral Radar Network, which is a
global network of scientific radars monitoring conditions in the near-earth
space environments and that is headquartered at the U of S
[University of Saskatchewan], essentially monitoring space weather. Data is
collected worldwide and that analysis helps to contribute to the understanding
of how space weather impacts things like radio satellite communications,
pipelines, and power grids.
And then the fourth one is the Global
Water Futures Observatories, which is also led by the University of
Saskatchewan. And that is a network of scientific freshwater observation
stations, which includes 64 instrumented river basins, lakes, streams, and wetlands,
and five deployable measurement systems. And this project informs the
development and testing of water prediction models, monitors changes in water
sources, and underpins diagnosis of risk to water security. And so I guess just
wanted to give the context that these are, you know, major commitments that
have been made by the federal government.
I would say that one of the things that
we have been in discussions with the Canadian foundation and that the Canada
Foundation for Innovation has committed to and the federal government has
committed to is looking at how these facilities are funded in the long term. So
they’re looking at doing more life cycle funding. Right now all of these
projects are funded on a six-year agreement basis, but there is a recognition
that, given the permanency of these facilities in the places where they are
located, that there needs to be, you know, a rethink around how these are
funded into the future.
And so there has been no commitments
made yet on what that will look like but essentially, just again for some
context here, the way that the agreements work right now is that for these
six-year funding agreements, 60 per cent is funded by the Canada Foundation for
Innovation, 40 per cent those institutes or those organizations must find
matching funding. So that can be a contribution from the provincial government.
It can be other federal agencies, or it could be industry dollars that would be
used to leverage that 60 per cent.
As I mentioned, they are looking at this
longer term life cycle planning, and they’re doing . . . So what
they’ve identified is a program called a major research framework program that
they are currently exploring. And they’ve identified Canadian Light Source and
VIDO as two of the facilities that they are going to be piloting or working
through to set out what the parameters of this new program will look like. So
this will ensure a longer term view to supporting capital, operational
maintenance, and funding. And in addition they are going to be looking at
funding ratios as well.
So there has been, you know, some
discussion around whether 40 per cent of matching is an appropriate amount. We
again have not heard any confirmation of what those ratios will look like, but
we’ve heard that could be in the neighbourhood of 80/20. So these kinds of
decisions may impact, you know, the funding that would be required from the
province going into the future, but we don’t know what those exactly look like
yet.
So the CFI [Canada Foundation for
Innovation] is suggesting that all of these facilities will transition over
into this new major research framework program in 2027, is the time frame that
they’re looking at.
So right now CLS and VIDO are preparing
budget scenarios for this new framework to determine what those future funding
amounts would look like, and those need to be completed in the fall. And again
we will continue to work with our federal counterparts to understand, as this
program gets developed, what those impacts could be on the province.
Bhajan Brar: — Given that the
provincial industrial carbon tax corridor OBPS [output-based pricing system] is
being shut down, I assume that there will be no regional funding for the
technology fund that Innovation Saskatchewan will see. Is that correct?
Kari Harvey:
— So just for clarification, the Saskatchewan Technology Fund is under the
responsibility, so the policy, the governance . . . Responsibility of
that fund is with the Ministry of Environment. We have a partnership with them
to essentially deliver the back office or the administrative supports to that
program. And we were selected or asked to provide that role because of some of
the other projects that we’ve had, or the other programs that we have
experience in in managing these kind of like grant-related programs.
So in terms of the future of the fund,
what we do know is that the second intake is under way right now. There’s a
decision that we will be continuing with that second intake. Any future intake
will be paused while the Ministry of Environment and others are consulting with
industry about what the future of the fund might look like. And then from there
we would have to assess again what that impact is on, you know, our
organization if we continue to . . . I mean obviously if the fund is
no longer in existence, we would no longer be, you know, providing the support
for that fund.
Bhajan Brar: — I would appreciate
if you could just list me for all the approved technology fund projects that
are not yet completed but are still under way in ’25‑26, the total
funding for each project, and the expected project completion date.
Kari Harvey:
— So in terms of the projects, so there were 13 projects in total that have
been funded. The fund’s commitment to date is just around 25 million, 24,
just under 25 million. What has been deployed to date in terms of total
funding is 1.574 million. And so what’s outstanding is 23.4 million
and change.
Bhajan Brar: —
How much money remains in the technology fund as of April 1, 2025? And will
that money be awarded to new projects in ’25‑26?
Kari Harvey:
— So as of March 27th the amount held in the fund is 73.8 million. So
there’s an additional 50 million in the fund in addition to that
25 million that I spoke about earlier.
Bhajan Brar: — As of 1st of April, 2025?
Kari Harvey: — March 27th, 2025.
[18:15]
Bhajan Brar: — Okay. How many unfunded projects submitted
to the technology fund are sitting at Innovation Place? And what is the total
amount of the requested funding for those projects?
Kari Harvey:
— Okay, so just in terms of the fund’s second intake which began expressions of
interest on January 14th of this year, so as I mentioned, $50 million is
available. The second intake statistics include . . . Thirty-one
expressions of interest were received and reviewed. All have been deemed to be
eligible for the fund and have been invited to submit a full proposal.
So in terms of the total amount that’s
requested, we’re looking at 145 million in total for all of those
projects. And also in addition to that, this would result in about
600 million in private investments. So again, you know, the amount requested
and what’s available certainly far exceeds what will be able to be funded. But
it’s yet to be determined which projects will be funded.
Bhajan Brar: — What is the
breakdown of staff members between the number of managers and number of staff
at the start of 2025‑26?
Brent Sukenik:
— For ’24‑25, we had approved 108 FTEs. For the ’25‑26 budget we
have 112 FTEs. So the additional four are broken up: two for the tech fund and
then an additional two to support the research strategy.
Bhajan Brar: — My question is
number of managers and number of staff. Can you differentiate that?
Brent Sukenik:
— In total, we don’t have the breakdown specific at the manager levels. I just
want to make the point that all of our employees are out-of-scope employees.
But to look at the senior leadership team, so between the senior leadership
team and our executive team we have about 20 members, and the remainder would
be below that.
Bhajan Brar: — You can supply
later on if you want. If you want to get that breakdown for the managers, you
can give it later on if you don’t have now.
Brent Sukenik:
— Okay, we will get that breakdown for you.
Bhajan Brar: — Okay. Can you
please provide me there the salary ranges for the CEO and each of the
vice-presidents in 2025‑26?
Brent Sukenik:
— Effective April 1st, 2025, the salary range for the vice-president level, the
minimum is 151,958 and it goes to a maximum of 197,560. And our CEO position,
which follows the DM3 in the executive pay band, goes from 202,270 to 262,931.
Bhajan Brar: — Okay. Can you
please provide me with the list of non-monetary benefits provided to members of
the senior executive team in 2025‑26?
Brent Sukenik:
— We don’t have any non-monetary benefits provided.
Bhajan Brar: — Does any member of
your senior executive team receive a bonus? And if so, what were the amounts of
each bonus provided last year? And are similar bonuses provided for in the ’25‑26
budget?
Kari Harvey:
— So there is no bonus system in our agency, yeah. We essentially follow a very
similar process to the public service in terms of the merit-based program and
providing, you know, adjustments — incremental or economic adjustments — as
deemed approved, but also incremental adjustments based on performance as well.
Bhajan Brar: — Okay. Does
Innovation Saskatchewan have any specific contractor that handles your
communication work? And if you do, who is the contractor?
Brent Sukenik:
— We have two contracts for communication services. One was through a company
called Bravo Tango, and they’re doing brand development and video, and that
contract goes back about a year. And the other contract is with a company
called Exemplifi. It is a Canadian subsidiary of a US [United States] company.
And that contract is for website redesign services. That contract was tendered,
or that project was tendered last August through a competitive bid process.
Bhajan Brar: — Does Innovation
Saskatchewan provide any free space in the research parks either to other
agencies of government, non-profit, or private companies?
Kari Harvey:
— So we do not provide free space for any other government agencies. What we do
on occasion is, as part of our commitment to ecosystem initiatives or, you
know, events and those sorts of things, from time to time we will provide like
a conference room space for an event as part of our contribution, our in-kind
contribution, to that particular event. But we do not provide like leases, free
space, to government agencies or organizations.
[18:30]
Bhajan Brar: — One of your
budgetary goals is, at Innovation Saskatchewan, you triple the size of the
technology industry in Saskatchewan by 2030, right? Can you please confirm for
me what the size of our technology sector was when the Saskatchewan government
growth plan was released, what the size of the technology sector was in the
most recent year available, and what you are projecting the size of the
Saskatchewan technology sector will be at the end of 2025 given your available
budget.
Kari Harvey:
— So in September of last year, we commissioned, or released a report on the
progress of meeting the growth plan goal of tripling the technology sector by
2030. And so some of the findings that we saw, in looking at employment numbers
we’ve seen, since 2019 there’s been 109 per cent increased employment growth,
which has outpaced the growth of the technology sector in all Prairie provinces
and in addition, the other provincial sectors, economic sectors.
Since 2016 we’ve seen an average of just
over about 700 jobs added each year which is on pace to meet or exceed the 10‑year
target of 7,900 jobs. And what we found is that the technology sector accounts
for about 10 per cent of all jobs that were created in the province between
2016 and 2023.
Just, I guess, another statistic that I
can add is that in 2019 there were 347 technology companies in Saskatchewan.
And what we’ve seen since then is that there’s an increase of 14 companies that
have been established, with five of those over 100 employees. And then just in
terms of employment numbers, in 2016 there were 2,098 employees in the
technology sector and in 2023, 5,489 jobs.
Bhajan Brar: — During the 2024‑25
estimates introduction by the former minister responsible for Innovation
Saskatchewan, he talked at length about two initiatives that will expand
support for key innovation industries. The first was the redevelopment of the
flagship building at the research and technology park in Saskatoon, and the
second was the expansion of the Saskatchewan technology start-up tax incentive
overseen by Innovation Saskatchewan.
What is the status of the building
redevelopment project in Saskatoon? Has it been completed? Is this space in
use? And if it is in use, which companies are occupying the space and what are
they being charged per square feet of space?
Kari Harvey: — So in terms of how many tenants currently
occupy space in the research park, so there are basically 160 tenants that we
have between the two research parks and just under 4,000 employees that are
located there. In terms of the sectors that are represented, we have ag tech,
health, life sciences, industry services and support, information and
communication technologies, and natural resources. And then as I mentioned,
about 25 per cent of our space is specialty space, so greenhouses, growth chambers,
pilot plant, and laboratories.
In terms of the Galleria building and
the work that’s being done there, so we are in the process of a redevelopment
project of part of the Galleria building, the west wing, which we refer to as
the west Galleria. And this is space that was previously occupied by the
Saskatchewan Research Council, so it’s been sitting vacant for a while because
it requires some significant improvements in order to become leasable.
And so the project will entail about a
$35 million investment overall to develop some specialized space that will
support our scaling ag tech companies. So we expect that the project will
include five to eight separate suites that will support these companies and
will include a combination of office, lab space, high bay, and pilot plant
space.
So this is a facility that’s currently
not available anywhere in the province, so this is not up and running yet, as
per your question. We’re in the design phase right now. So last year, as I
think Brent may have mentioned earlier, we had $2.4 million that we put
towards the design of that space.
Going into this year we will continue
design, but we’ll also be investing about $4 million into the first phase
of our base building improvements. So that’s what we expect. So that would
include things like our HVAC [heating, ventilating, and air conditioning], you
know, upgrading those sorts of mechanical systems. And then the following year
we would move into phase 2 base building upgrades. As well, we would start the
specialization of suites as we have tenants that are interested in moving into that
space.
So to answer your question, there’s no
companies in that space yet because we’re just in the process of redeveloping
that.
Bhajan Brar: — Now what are they
being charged per square foot of space?
Kari Harvey:
— So the business model that we have as an organization is, of course, we exist
to really help early-stage companies to grow, and we want to have flexible
space and lease arrangements to really allow that to happen. So we don’t have a
standard per se kind of lease rate that we would lease any given space out. We
really work with each of the individual tenants to understand where they are in
their growth to really determine, you know, what we can offer in terms of that
space.
Again depending on the type of space as
well, we have a whole variety as I mentioned. The specialty space like our
greenhouses would be probably considered some of our most expensive space, but
you know, as I mentioned we really have a range anywhere from, you know, market
rates to, you know, very extremely low, you know, low lease rates to some of
those really early-stage start-up companies, because we want them to have their
. . . we want to make sure that they are putting their funding into
research and developing their product and really getting their business off the
ground.
Bhajan Brar: — My question is, is
there any limitation that up to such-and-such area there will be this rate, and
up to such-and-such area there will be this rate? How do you fix that?
Kari Harvey: — So yes, you are
correct. Like in that, like we don’t have again per se, you know, set lease
ranges, but as a company grows we work with them to understand where they’re at
from a financial perspective. And we would absolutely expect that a company’s
lease rate will go up, you know, as they’re growing and they are generating
revenues. And in addition we will work with them all the way to the point where
if they get too big that they would move out of the park.
I would also just mention, I guess, that
we do have as part of our decision-making process, we have what’s called the
management advisory committee. And we have one of those in Regina and one of
those in Saskatoon that’s made up of various stakeholders: the city, the
university, other industry or ecosystem partners that would basically approve
any leases that we bring forward to be considered. So it’s part of our head
lease agreement that we have with both the universities.
I mean it’s expected that we are
bringing in the technology-related companies. And this is part of that process,
is that we would take these leases, and you know, to get approval for these
tenants to be approved to be considered as part of the park. But as I
mentioned, as they grow, we work very closely with them to understand, you
know, at what point do their lease rates need to be increased and/or at what
point do they need to look at moving outside of the park.
[18:45]
Bhajan Brar: — For the start-up
tax incentive, please advise how many companies you expect to apply for the tax
incentive this year. What would be the expected tax savings for the companies?
And finally, in 2024‑25, how many companies applied for the incentive and
received it?
Kari Harvey:
— So in terms of the way that this program works, start-up companies do apply
to become an eligible company underneath the Saskatchewan technology start-up
incentive program. And essentially we work with IRAP [industrial research
assistance program] as well to understand, to do that evaluation on the company
to determine the novelty of their product and the commercial viability as well.
So they go through that process to be considered an eligible company.
Once a company is considered eligible,
it doesn’t mean necessarily that they’re going to, you know, be a part of the
program, because the program works in a way that they are deemed to be eligible
but they have to get an investor to come and invest in their company. So we
also approve investors under the program, but we don’t do the matching. It’s up
to the company to get the investor and to get that investment from the company.
So the program itself, as you’re likely
aware, it is one of the most aggressive angel investment tax credits in Canada.
An investor can earn up to 225,000 in tax credits and claim a maximum of
140,000 per year. And these tax credits can actually be claimed over a
seven-year period. Start-ups can raise a maximum of 2 million under the
program. And as I mentioned, this program has been in place since 2018.
In terms of the numbers of start-ups
that we expect, it’s difficult to say because it really depends on the company
themselves. And in any given year when the program was first rolled out, we had
a large number of applicants. So we had 24 start-ups that applied, or that were
approved, I should say. And that ranges anywhere between, you know, seven at
our low in 2023 — there was some challenges in the investment climate in that
particular year — up to the 24 start-ups that were approved.
In terms of investors approved, we have
again on any given year ranged from 88 at our highest to the lowest year was 41
in terms of the number of investors that were approved under the program. But
just in terms of total accumulated numbers, what we’ve seen is 150 million
of private investment has been attracted under that program, which is comprised
of 41.4 million that was raised actually under the program and then 70
more million that was raised as co-investment under the program.
So 521 jobs have been created by
start-ups through this program. As I mentioned, 423 investors in total have
been approved, and 112 technology companies have been approved under this
program.
Bhajan Brar: — My question that
will not be in your books. One question. Recently in BC a locomotive engine has
been elevated from coal to hydrogen to decrease the carbon dioxide. Is there
any provision or thinking in the innovation department to step into the hydrogen?
There are a number of terminal plants. Have you thought about that?
Kari Harvey:
— I would say that that would be something that we would see being looked at
through the Petroleum Technology Research Centre, and in fact I know that they
are. That is one of the areas that they’re currently exploring as well as part
of that new Energy Innovation Hub.
Bhajan Brar: — Now my last two
questions that don’t allow both our sides to sleep. Tariffs. How have you
accounted for tariffs?
Kari Harvey:
— Okay, thank you for this question. So I’ll answer this in a few different
parts. So in terms of the tariff impact on our sector stakeholders, we’ve been
looking at it, the impact on researchers, the impact on the tech sector
generally, and then of course the impact on our operations as well.
What we know right now is that has
stalled about 16,000 grant applications that are vying for 1.5 billion in
funding. And the NIH [National Institutes of Health] funds more than 300,000
researchers at more than 2,500 universities.
So Canadian researchers receive
relatively small amounts of direct and indirect funding, but there is lots of
cross-border collaborations that could impact research progress. The University
of Saskatchewan holds about 3.2 million in NHI grants and other funding
for 16 projects. And VIDO last year received an indefinite-delivery,
indefinite-quantity contract for preclinical trial models for infectious
disease, which was a seven-year contract with a ceiling of about
146 million.
So what we know is that it’s not clear
how this contract is yet going to be impacted. Tariffs also may impact the
overall costs associated with scientific equipment that’s imported from the US,
and so we know our agencies are looking at alternative options or sources for
that equipment.
And then just another item to mention is
just access to data. So there is some question about if there’s a move from the
US to remove access to data or stop collecting data, that that could impact
things like vaccine research and other research priorities.
So this also though, however, may be a
great opportunity to look at recruiting and retaining researchers as well,
because we know that there are potentially researchers that are looking for
other jurisdictions that might be more friendly to research support. I think
you probably would have seen in The Globe, there was an article there
about a researcher in Ottawa who was a cardiologist that was recruited to
California and made the decision to not proceed because he did not want to move
to the US in the current situation that they’re in.
So we’re in discussions. You know, we’re
in discussions with the research agencies and research partners to understand
how these might be opportunities and also just to understand where, you know,
where further impacts might happen. And then I would also say, you know, that’s
also the importance of expanding research opportunities with other countries
like Germany in terms of the project that we have . . . the
memorandum of understanding that we had signed with the German Academic
Exchange. So we’re trying to support in that way as well.
In terms of the impact on our technology
sector, the discussion that we’ve had is really that there is an expectation,
at least in the short term, that there will be minimal impact. And in fact
there is a report that Deloitte released in the spring here which is basically
suggesting that there’s going to be — so this would have been after the tariffs
— that there will be growth in the technology sector again this year.
Software companies aren’t expected to
experience immediate impacts as tariffs are focused really more on goods.
However any of our technology companies that have hardware components could be
impacted, you know, mainly due to supply chain disruptions, particularly if
there’s a reliance on the US.
The longer term macroeconomic
consequences, of course, like any other sector it could have consequences if
there is decreased demand for services as, you know, businesses look at ways of
reducing costs and those sorts of things. And you know, we may see impacts on
venture capital investments as well.
So in terms of our operations as a
research park, of course we’re following the direction of SaskBuilds and
Procurement in an effort to reduce our reliance on US products and prioritizing
Canadian suppliers through reporting and tracking, the reduction of US products
and services, as well as including language and new criteria in any of our
procurement documents.
So right now minimal impacts for us have
been identified as most of our projects that were funded from last year are
near completion, or the orders have been completed and/or goods received.
And so most of our 2025‑26
projects are in early stages so we will be looking at ways to ensure that we’re
reducing reliance on US products and will be incorporating any other
procurement policies and processes that have been directed as per government.
Bhajan Brar: — Thank you.
Consider that question as the last question because already your explanation
answered my second question. And now I will ask my colleague if they want to
ask any questions. Okay.
Brent
Sukenik: — Before we finish, I have the answer
to your question that you had asked previously on the managers. Based on our
current staff position, we have 16 positions at director and above; we have 36
manager and senior manager level and 53 below the manager level.
Bhajan Brar: — Thank you. At the
end, I will say thanks to the officials and thanks to the minister. And still
if anything left, kindly supply me a copy of that. I shall be highly
appreciative of that. Any other question?
Chair
Thorsteinson: — Seeing no further questions, we will
now adjourn consideration of the estimates and supplementary estimates
no. 2 for Innovation Saskatchewan. Minister, do you have any closing
comments?
Hon. Warren
Kaeding: —
Well as you can tell, I have a lot of experience beside me, and I certainly
want to appreciate them and want everyone to know of the wealth and depth of
talent that we have in Innovation Saskatchewan. So I’d say the tech sector in
this province is in very good hands.
I do want to thank the committee members
as well as you, Mr. Chair, and certainly the very respectful questions that we
had today from our colleagues, certainly appreciate that. And I learned a lot
on this sector as well, so I do appreciate your questions. And certainly thanks
very much to Hansard and other officials in the building tonight.
[19:00]
Bhajan Brar: — Thanks again.
Hon. Warren
Kaeding: —
Thank you.
Chair
Thorsteinson: — Thank you, Minister. MLA Brar, do you
have any closing comments?
Bhajan Brar: — I will say thank
you to all of you who gave up their valuable time. And we discussed very, very
valuable items here that will be in the interest of our public.
Chair
Thorsteinson: — Okay, thank you. Thank you, Minister,
for being here with us this evening. Thank you to all the officials who joined
us as well. This concludes our business for the day. I would ask a member to
move a motion of adjournment. I recognize Terry Jenson has moved. All agreed?
Some
Hon. Members: — Agreed.
Chair
Thorsteinson: — Carried. This committee stands
adjourned to the call of the Chair.
[The committee adjourned at 19:01.]
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