NRC Annual Report 2001-2002

Science atworkforCanadaNRC Annual2001-2002Report

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC is the Government of Canada’s leadingresource for scientific research, developmentand technology-based innovation. Itsoutstanding people help turn ideas andknowledge into new products, processes andservices, creating value for Canada.As an organization with global, national,regional and local presence, NRC is akeystone of Canada’s innovation system.NRC works hand-in-hand with partners fromindustry, government and universities to helpignite the spark of innovation in communitiesacross the land and to give Canadiancompanies a competitive edge in today’smarketplace.NRC operates world-class research facilitiesas well as information, technology and innovationsupport networks from coast to coast.In all, NRC is present in over 90 communitiesacross Canada through its network of researchinstitutes, technology and innovationcentres, the NRC Industrial ResearchAssistance Program and the Canada Institutefor Scientific and Technical Information.NRC’s impact extends even further throughthe thousands of partnerships, networks,collaborations, and national and internationalcommittees it is involved in.NRC’s work spans the innovation spectrumfrom scientific discoveries at the very frontiersof knowledge to technologycommercialization. For over eight decades,NRC has successfully forecast Canada’sopportunities and adapted itself to meetnational priorities as well as the needs of itsclients and partners.It has organized forces around key sectors,such as biotechnology, information andcommunications technologies, aerospace,manufacturing, construction, ocean engineeringand others.National Research Council CanadaScience at work for CanadaAnnual Report 2001-2002VNRC has moved boldly into important newfields, such as genomics, fuel cells, bioinformatics,high-performance computing,photonics, nanotechnology, and environmentaland sustainable developmenttechnologies.NRC is focused squarely on Canada’s futureand is committed to helping build thenation’s knowledge and innovation capacity,and providing the tools to succeed in theknowledge economy.For more information visit ourWeb site at: www.nrc-cnrc.gc.caor contact NRC at: 1-877-672-2672© Her Majesty in Right of Canada, 2002ISSN 1484-8503Science

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC Vision 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1President’s message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3NRC – science at work for Canada . . . . . . . . . . . . . . . . . . . . . . . . .4NRC research excellence – at the frontiers of discovery . . . . . .5Building national R&D capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Advances in basic sciences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Advances in biotechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Advances in engineering and construction . . . . . . . . . . . . . . . . . .13Advances in information and communications technologies . . .17Advances in manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192Value for Canada – taking technology to market . . . . . . . . . .21Intellectual property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Collaborations and partnerships . . . . . . . . . . . . . . . . . . . . . . . . . .23Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24Incubators/co-location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26Spin-off and start-up firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27Increasing innovation capabilities of Canada’s SMEs . . . . . . . . . . . .29Knowledge for Canada – a vital currency . . . . . . . . . . . . . . . . . . . . . .31Tab l e o f co ntent sCommunity based innovation – building technologyclusters across Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33NRC – community innovation initiatives across Canada . . . . . . . . . . . . . . .34Global reach – at work on the world stage . . . . . . . . . . . . . . . . . . . . . . . . . .41Highlights of NRC’s 2001-2002 international work . . . . . . . . . . . . . . . . . . . . . .42NRC – science lends a helping hand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45Outstanding people – outstanding achievements . . . . . . . . . . . . . . . . . . . . .47Outstanding people – outstanding employer . . . . . . . . . . . . . . . . . . . . . . . . . . .48Guest workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49Contributing to Canada’s skilled workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49Student and youth outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50Statement of operations by organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52NRC governing council & officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53NRC institutes/programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

2001-2002 marked a year of significant growthand outstanding achievement for the NationalResearch Council as it moved forward rapidlywith imaginative new initiatives and programsdesigned to build Canada’s innovation capacityin the 21st century. In early 2002, NRClaunched its Vision 2006, a far-reaching strategicframework that defines NRC’s purpose,priorities and plans to serve the interests ofCanada, Canadian industry and all Canadians.We live in a world governed by change – aworld where change seems to accelerate moreeach year. The world of science and technologyis dominated by an unprecedented convergenceof fields, disciplines and sectors.Scientific fields that were once distinct anddiverse are now merging and many of the frontiersof science and technology are inherentlymulti-disciplinary in nature. Science is enteringinto the domains of the very fast and very smallwhere new laws and principles hold sway andmuch remains to be discovered. Canada’s questto be a world leader in the knowledge-basedeconomy is generating fresh thinking and newideas about the role of community-based innovationand mechanisms for transferringtechnology and knowledge from the labs to themarketplace. The NRC Vision addresses theseforces of change.The commitment of the federal government tomove Canada into the top five R&D performersin the world and to make Canada one of theworld’s most innovative nations is the foundationfor NRC’s Vision and its contributions.In Vision 2006, NRC has set a deliberate andstrategic course. Vision 2006 recognizesCanada’s need to meet the challenges of innovation.It positions NRC on the leading edge ofdiscovery and enhances its capacity to putknowledge to work for Canada. The Visionfocuses directly on NRC’s role in fostering innovationthrough national, international andcommunity-based collaborations and partnerships.Vision 2006 is about the goals, thecommitment and the rewards of seeing“Science at Work for Canada.”President’s messageA Vision for Canada and all CanadiansW o r k i n g f o r C a n a d aDr. Arthur J. CartyNRC’s contributions in 2001-2002 helped movethis Vision into reality – through leading-edgediscoveries, technology breakthroughs, buildingcommunity-based technology clusters, generatingvalue for Canada through the creation ofnew business enterprises, technology commercializationand global reach.NRC staff are the foundation of this Vision. It istheir talent and creativity that will give theVision life. This Annual Report is the story oftheir achievements on behalf of Canada.3S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Our objective should be no less than to be recognized as one of the mostinnovative countries in the world. Achieving this will require a comprehensiveapproach, and the support and participation of all governments, businesses,educational institutions and individual Canadians… An innovative economy isessential to creating opportunity for Canadians.Speech from the ThroneJANUARY 30, 20014The impact of S&T in this new century shows no signs of diminishing. The challenges that faceour planet… economic and health disparities, the environment, the sustainable development ofnatural resources, bioterrorism, human health and disease… all depend for their solution onsustained public investment in research and innovation… The federal government has clearlyrecognized the important roles that science and innovation can play in underpinning futureeconomic growth. It has also recognized its central role and the opportunity in developing andsustaining a research enterprise that is connected to broader social and economic objectives.Investing in Excellence, 1996-2001A Report on Federal Science and TechnologyNational Research Council CanadaScience at work for CanadaResearch and innovation are critical to Canada’s futureeconomic growth and an improved quality of life for allCanadians. Canada must become known as a nation ofinnovators, one in which all sectors of society canbenefit from a globally focused, networked and innovativeknowledge economy. But innovation does notsimply happen – it requires long-term and strategicallydirected investments in research, people, infrastructure,networks and relationships.One of Canada’s important challenges is to unleash thevalue inherent in knowledge and innovation organizationslike NRC. The key to achieving this is aninnovation approach that mobilizes the public andprivate sectors, while integrating the elements of innovationat the international, national and communitylevels. There must be sustained and focused investmentsfrom all sectors for the creation of newknowledge and its use in Canadian industry. This effortmust span the research spectrum, from basic discoveriesthat advance the frontiers of knowledge, to thetransformation of knowledge into new products,services and technologies for world markets.With the launch of its Vision 2006 – Science at Workfor Canada, NRC is committed to providing leadershipin Canadian innovation and creating long-term benefitsfor Canadians.NRC will play a key role in helping Canada become oneof the top five countries in the world in research performanceand develop the knowledge foundation for theindustries of tomorrow.Working with industry, academia, and government, NRCwill increase the effectiveness of its innovation systemsby fostering national and international networks, andcommunity-based technology clusters.Such efforts will help betterCanada’s quality of life, improvethe environment, protect healthand create new sources of wealth.

NRC research excellenceAt the frontiers of discoveryD i s c o v e r yResearch anddevelopment are key tothe innovation process –not only industrialinnovation that leads towealth creation, but alsoinnovation that leads toimprovements in thequality of life.Report of the Expert Panel onCanada’s Role in InternationalScience and TechnologyJ UNE 2000Today’s research creates tomorrow’sopportunities. Leading-edge researchand development is at the very coreof NRC’s Vision 2006 and NRC’scontributions to Canada and allCanadians. Working in collaborationwith industry, government andacademic partners, NRC pursuesstrategically focused R&D to helpbuild Canada’s innovation and technologycapacity, support Canadianindustry, to seek solutions tonational challenges in health,climate change, the environment,clean energy and other fields, andlay the knowledge foundations forCanada’s future growth.5S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...“Innovation is the process through which neweconomic and social benefits are extracted fromknowledge… Knowledge has become the keydriver of economic performance.”Canada’s Innovation Strategy:Achieving Excellence – Investing in People,Knowledge and Opportunity6Building nationalR&D capacityNRC makes strategic investments in R&D facilities,programs and networks in every part ofCanada. It is the home of unique national scienceand engineering facilities, Canada’s nationalscience library, and Canada’s source for sciencebasednational measurements and standards. NRCalso plays an important role in major nationalscience facilities, initiatives and programs, helpingbuild Canada’s reserves of knowledge – the newestcurrency of our economy. NRC’s contributions tonational infrastructure create new opportunitiesand leverage Canada’s R&D investments.In 2001-2002, NRC made a number of major contributionsto building Canada’s R&D infrastructureand capacity. Among the highlights:NRC – National Institute forNanotechnologyNRC moved forward on the establishment of itsNational Institute for Nanotechnology (NINT), a$120 million world-class facility to be located onthe campus of the University of Alberta inEdmonton. This new research facility is a uniquecollaboration between the Government of Canada,represented by NRC, the province of Alberta andthe University of Alberta.NINT will be multi-disciplinary in scope, integratingNRC and partner strengths in physics, chemistry,engineering, biotechnology, informatics, pharmacy,medicine and new materials. The research programwill build on NRC’s and the University of Alberta’sexisting world-class nanosciences and nanotechnologyR&D strengths. Initially, NINT will direct itsNRC – Core strengths forCanadian R&D• 18 research institutes• 6 advanced technology and innovation centres• Sustained research in critical sectors: biotechnology,manufacturing, information and communicationstechnologies, aerospace, construction,nanotechnology, photonics, astronomy andastrophysics, fuel cells, ocean engineering, and others• National S&T knowledge and information resources• Local, regional, national and international S&Tnetworks, partnerships and collaborations – accessfor Canadian R&D to the world• National standards, codes and measurements, relatedR&D and services.

efforts toward developments in biotechnology,energy, and information and communications technologies,including:• “Lab-on-a-chip” nanotechnology – integratingbiology with electronics to build biosmart devices• Quantum and molecular computing – the nextgeneration of computing technologies• Nano-engineered devices with new surface properties,such as biocompatible medical implants andfuel cell catalysts• Protein and DNA tools that produce self-assembleddevices• Genomics, materials sciences, and instrumentationresearch.NINT, when completed, will feature a 12,000 squaremetre research and industry partnership facility,150 permanent, highly skilled research jobs, aprogram for 45 guest workers from industries anduniversities each year, and training opportunitiesfor some 275 post-graduate and post-doctoralresearchers annually. Overall, NINT will provideunique R&D collaborations, exchanges, and facilitysharingarrangements for researchers from NRCand the University of Alberta.New aerospace facilities andresearch directionsNRC moved forward with its new AerospaceManufacturing Technology Centre (NRC-AMTC) tobe located on the campus of the Université deMontréal, and its new Gas Turbine EnvironmentalResearch Centre (GTERC) in Ottawa.Construction of the NRC-AMTC will begin in 2002,with funding of $46.5 million over five years. Thiscentre will work with aerospace industry partners todevelop core competencies in modern manufacturingmethods that promise significant industry-widecost savings while maintaining quality, reliabilityand performance. The centre will employ up to 100staff and guest workers in four major researchprograms.Construction of the GTERC, funded at $23.4million, will also begin in 2002 with completion in2003. The centre will help Canada’s aerospaceindustry develop next-generation gas turbineengines to run at high altitudes and low temperatures,in compliance with strict environmental andsafety standards.Manufacturing technologiesfor the futureNRC established a new virtual materials processinglaboratory at its Industrial Materials Institute inBoucherville (NRC-IMI). The facility combines thelatest computer technologies with a top researchteam to develop tools needed by the manufacturingcommunity of the future.With an investment of $2.1 million, this initiativeenables researchers to develop next-generationautomated design and manufacturing tools forsuch sectors as aerospace and automotive.NRC – National facilities andfundamental R&D infrastructure• National astronomical observatories & data systems;access to international astronomicalfacilities• National metrology facilities• Canadian Bioinformatics Resource• Canadian Centre for Housing Technology• Virtual environment technology centres• National aerospace facilities – wind tunnels, fixed &rotary wing research aircraft, Aerospace ManufacturingTechnology Centre (under construction), Gas TurbineEnvironmental Research Centre (under construction),structures and materials testing facilities, engine test cells• Ocean and marine engineering test facilities• Aluminium Technology Centre• Canadian Hydraulics Centre• Centre for Surface Transportation Technology• High-throughput screening, DNA sequencing, andmicroarray facilities• Large-scale protein purification facility• Marine Biosciences and Aquaculture Research Station• Nuclear magnetic resonance imaging facilities• Ultra-fast laser laboratory• NRC – Canada Institute for Scientific and TechnicalInformation (NRC-CISTI)• Industry partnership facilities… and many more.7D i s c o v e r yS C I E N C E A T W O R K F O R C A N A D AIn all – some 400 S&T laboratories and facilities forCanadian R&D and innovation.

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...“NRC National Reach – Local Touch”In addition to their national mandates, NRC’sinstitutes, innovation and technology centres,IRAP, CTN, and CISTI, provide a visible andvalued federal government presence andaccess point for industry and universities inover 90 locations across Canada.8NRC – Contributions to Canada’s majorR&D initiatives & programsSustained investments in R&D help advance knowledgeand develop technologies for Canada’s future. NRCworks in research fields of strategic national importance:• TRIUMF – Tri-University Meson Facility• Sudbury Neutrino Observatory• Canadian Light Source• Grid and High Powered Computing (HPC)• Nanotechnology R&D• NRC – National Fuel Cells Program• National security – chemical, biological,radiation and chemical threats• Genomics and health R&D – supportingthe Canadian Biotechnology Strategy• Special Interest Groups, Network Centresof Excellence (NCEs) and Federal InnovationNetworks of Excellence (FINE)• National Guide to Sustainable MunicipalInfrastructure• Photonics R&D and manufacturingtechnologies• And many more.Contributions to the Canadian LightSource – probing the unknownNRC scientists are making key contributions tothe Canadian Light Source (CLS) in Saskatoon,Saskatchewan. For example, researchers fromthe NRC Steacie Institute for Molecular Sciences(NRC-SIMS) are actively involved in planningresearch for the Far-Infrared Beamline at CLS.They will address such issues as: how energy flowsamong different parts of a molecule; what thenature and the forces are among atoms and molecules;how metal atoms bond to other chemicalgroups; and what the properties of carbon chainmolecules are and why astronomers find so manyof them in outer space. Beamline-based studies ofsurfaces and other interfaces with high spatialprecision will help in the development of miniatureoptical and biochemical sensors.Photo: Todd Korol for the University of Saskatchewan

Renewing NRC’s CanadianBioinformatics Resource (CBR)Worldwide growth in life sciences, genomics andbiotechnology will accelerate rapidly in comingyears creating a pressing need to organize andanalyze the large data sets that are fundamental toresearch in these fields. To prepare for the challenge,NRC has undertaken a comprehensiverestructuring of CBR, earning recognition by theSun Corporation as the "NRC Sun Centre ofExcellence in Distributed Bioinformatics" – one ofjust six Sun Centres of Excellence worldwide.Advances in basic sciencesTop: The “Perfect SpiralGalaxy,” captured witha new instrument ofNRC design at theGemini NorthTelescope; Right: NRCcontributions to newsoftware for the FUSEsatellite will help extendthe mission from threeto five years; Bottom:This giant gas cloudfound by NRCresearchers could leadto a new understandingof the interstellarmedium.D i s c o v e r yAstronomy and astrophysics –our gateway to the starsNRC conducts leading-edge research in astronomyand astrophysics, and provides the Canadianastronomy community with access to major astronomicalfacilities in Canada and internationally.NRC is also a world leader in the development ofadvanced instrumentation and works to transfer theknowledge and technologies it develops in astronomyand astrophysics to other disciplines.Cold cloud casts big shadowResearchers from the NRC Herzberg Institute forAstrophysics (NRC-HIA) have uncovered a cold,hard fact that could leave prevailing theories aboutthe interstellar medium (ISM) in the dust. Theyhave found and accurately measured the temperatureof a giant gas cloud in the ISM that is 6,000light years across with a mass 20 million timesgreater than the Sun. As reported in Nature (July2001), this is the first finding of a super-massiveinterstellar cloud composed primarily of very coldatomic hydrogen. This finding opens up new areasfor investigation and could force astronomers tore-examine their understanding of the ISM and itsrole in the life cycle of stars and galactic evolution.S C I E N C E A T W O R K F O R C A N A D AOrbiting FUSE repaired – from EarthWithout ever leaving the ground, NRC astronomersand engineers have helped devise an innovativerecovery scheme for the Far Ultraviolet ExplorerSatellite (FUSE). The spacecraft was launched in1999 on a joint mission between NASA, theCanadian Space Agency (CSA) and the FrenchCentre national d’études spatiales. Its mission is tostudy the rich FAR UV spectrum, inaccessible by theHubble Telescope. FUSE was designed to last threeyears but, midway during its second year, ring lasergyroscopes began to fail, affecting navigationcontrol and threatening to push the Canadian FineError Sensor (FES) far beyond design limits. TheCanadian team, including CSA contractors atComDev and the University of Toronto, and NRC-HIA worked to devise new software to track starsdrifting across the FES field of view. NASA has nowapproved the FUSE mission to operate for fiveyears.9

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...10Perfect image of a “Perfect Galaxy”Scientists captured a remarkable first light image ofgalaxy NGC 628 – the "Perfect Spiral Galaxy" – inPisces, with a new state-of-the-art instrument atthe Gemini North Telescope on Hawaii’s MaunaKea. The instrument that took the image, GMOS orGemini-Multi-Object Spectrograph, is the result ofseven years of design and construction by an internationalproject team led by NRC-HIA.Molecular sciences – the smallthings are keyNRC conducts cutting-edge research in selectedareas of molecular sciences that have the potentialto stimulate entirely new or emerging sectors of theCanadian economy. Strategic molecular sciencesresearch fields for NRC include: nanoscience,chemical biology, laser science, molecular interfaces,organometallic chemistry, and their relatedtechnologies.Tiny storage medium – majorindustry impactDespite their tiny size, or perhaps because of it,unique structures called nanotubes are alreadybeing explored for commercial applications, suchas video displays. A new NRC research program isfocusing on characterizing, modifying and producingnanotubes on a large scale. One project isalready looking at the potential of carbonnanotubes as a hydrogen storage medium forfuture fuel cell applications.NRC also opened a new laboratory in 2001-2002,for the production of large amounts of singlewallednanotubes. New nanotubes have beendeveloped, with patent applications filed and anew NRC spin-off company in the works.Making molecules measure themselvesBreakthroughs by NRC researchers have demonstratedthe possibility of having a moleculemeasure its own structure. In this ultra-fast phenomenonresearch, using attosecond electrons formolecular probing, an electron is pulled from themolecule by a strong field, only to be driven backwhen the field reverses its direction where it diffractsfrom the parent ion. Since diffraction occurswithin about one femtosecond (one-quadrillionthof a second), the structure of the neutral moleculecan be imaged. This has great potential for structuredetermination of non-crystalline molecules,particularly large biomolecules.Unique nanotechnology researchfacility on the wayNRC initiated a $1.4 million project to design andconstruct a new neutron reflectometer facility at itsCanadian Neutron Beam Laboratory in Chalk River.Scheduled for completion in the fall of 2003, thefacility will support nanoscale structure analysis inpartnership with universities. The facility will notonly generate new knowledge, but also focus on thedevelopment of innovative products for theemerging nanotechnology industry.Neutron holography breakthrough –new avenues for materials studiesThe combined efforts of NRCand Atomic Energy CanadaLimited staff at the ChalkRiver laboratory in atomicresolutionholographyresulted in new developmentsin the use of neutrons for thestudy of materials.

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Combating the threat of bioterrorismFollowing a global competition, the U.S. NationalInstitutes of Health (NIH) awarded a $2 milliongrant to a team from NRC for research to supportthe overall effort to combat bioterrorism. Thefunding will be used to develop a vaccine against ahighly virulent bacterium recognized as a potentialbiological warfare agent. NRC’s success was due inlarge part to its patented novel vaccine deliverysystem and its demonstrated expertise, facilities,and equipment for cutting-edge vaccine research.12New technique to evaluate spinalcord injury and functionNRC-IBD has developed a non-invasive functionalmagnetic resonance imaging (fMRI) technique thatcan be used to assess spinal cord function andevaluate spinal cord injuries or changes that resultfrom disease and treatment. Researchers canrecord fMRI images to “see” changes in the distributionof oxygenated blood that tell them how thespinal cord is functioning. There are now some35,000 Canadians living with spinal cord injuries.Algal bloom monitoring systemResearchers at the NRC Institute for MarineBiosciences (NRC-IMB) are developing an opticalsensing system to detect harmful algal blooms andmonitor coastal zones to improve coastal management.A Canadian company, Satlantic, is workingwith NRC to develop the system for sales in France,Ireland, the United States and South Africa.Better canola – better marketsScientists at the NRC Plant Biotechnology Institute(NRC-PBI) have developed canola seed with far lessanti-nutritional substances – sinapine and the seedphosphorus storage compound, phytate. Thisimportant scientific advancement will be commercializedthrough conventional breeding andselection of superior cultivars. Dow AgroScienceswill use the research as the basis for breedingimproved canola cultivars, a superior product thatwill provide the company with an importantcompetitive advantage.Decontaminating explosive soilsResearchers at the NRC Biotechnology ResearchInstitute (NRC-BRI) have developed soil qualityguidelines for TNT-contaminated soils. These toolswill help environmental risk assessors andmanagers of sites contaminated with explosives todetermine “how clean is clean.” The work, carriedout in collaboration with the Defence ResearchEstablishment in Valcartier and governmentagencies from the United States, the UnitedKingdom and Australia, will facilitate the managementof munitions-contaminated sites, such asmilitary training areas as well as production anddisposal sites.

Protein folding – better understandingof diseasesMolecular biologists from the NRC-BRI, working incollaboration with McGill University, have moved astep closer to understanding exactly how proteinsare folded and how a particular molecular machine,known as the calnexin cycle, actually “chaperones”the activity. This finding has important implicationsfor diseases, such as cystic fibrosis, hereditaryemphysema and other genetic diseases. Decodingthe structure of calnexin, a key protein involved inprotein folding and quality control, is the culminationof a ten-year research effort by the team.Advances in engineering and constructionD i s c o v e r yNRC’s R&D in engineering and constructionfocuses on the needs of Canada’s aerospace,construction and ocean engineering communities –key sectors for Canada’s economic growth andprosperity.NRC’s aerospace R&DThe aerospace industry remains one of the majorindustrial success stories for Canada. The manufacturingcomponent of the industry currently standsin third place in the world in terms of sales. Canadais a world market leader in regional and businessaircraft, commercial helicopters, gas turbineengines, landing gear, flight simulators, and aircraftguidance and control systems. The NRC Institutefor Aerospace Research (NRC-IAR) has served thisvital industry sector for over 50 years with leadingedgeresearch and development services.Safer landing gear coatingsFrom stainless steel cutlery to prosthetic hip andknee replacements, chromium has become a partof our daily lives. In its solid form, chromium isharmless. But hexavalent chromium – a formassociated with the electroplating process thatproduces the hard coating protecting aircraftlanding gear components from corrosion andwear – is carcinogenic and can cause a host ofhealth problems. The best alternative technologyto chromium is a deposition of a cermet (ceramic/metal composite) coating that is better for theenvironment and offers potential costand time savings. Working in partnershipwith Orenda AerospaceCorporation, Vac-Aero International,the Department of National Defenceand NRC-IMI, NRC-IAR is evaluatingnew cermet coatings to develop thecoating process, processing conditionsand product quality.13S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Dynamic model test for world’slongest cable-stayed bridgeScientists at NRC-IAR successfully completed high-Reynolds number testing in its wind tunnels of adynamic model of the Stonecutters’ Bridge scheduledfor construction in Hong Kong. Aeroelastictesting conducted for this project was used tobreak new ground in bridge aerodynamics. Thebridge will be the longest cable-stayed bridge inthe world when completed.Measuring greenhouse gasesNRC’s aerospace team has a long history ofresearch related to climate change and the environment.In the second year of a program funded bythe Canadian Climate Action Fund, the team usedits expertise and experimental Twin Otter aircraft tosuccessfully measure the spring burst of N 2 O fromagricultural lands in Eastern Ontario and NorthernSaskatchewan. N 2 O is an important greenhouse gaswith 310 times the warming potential of CO 2 , andone that might be controllable through modifiedfarming practices. The research addresses Canadiantargets established in the Kyoto Protocol.14Helping Canada’sspeed skating OlympiansWhen Canada’s speed skating championsCatriona LeMay Doan andJeremy Wotherspoon were lookingfor the right outfit to wear at theSalt Lake Winter Olympics, theycame to NRC’s wind tunnel to helppick the best design – under “live”conditions. They wore six differentsuits, tested previously only onmannequins. Tests found that somesuits do perform better – and therest is now gold medal history.New aircraft maintenance andrepair technology for industryWorking with the United States Air Force, theDepartment of National Defence and CMP Ltd.,NRC-IAR has made substantial progress in using aretrogression and re-aging heat treatment processto increase the corrosion resistance of selectedaluminium alloys. The major beneficiary will beCanadian aircraft maintenance and repair organizations,most of which are SMEs, since the newtechnology will open new markets.

NRC’s construction R&DThe construction industry is one of Canada’slargest, with over 850,000 people employed bysome 215,000 firms. Comprised primarily of smallcompanies, innovation in this sector poses specialchallenges. R&D and construction codes and standardsare critical to this sector to lower transactioncosts, facilitate technology diffusion and helpreduce trade barriers to improve industry access toglobal markets.New cement – cleaner environmentThe manufacture of cement generates carbondioxide and produces millions of tonnes of cementkiln dust (CKD) annually in Canada. The accumulatedCKD may contain extremely alkaline materialsand heavy metals, such as lead and cadmium, andhas been unusable in cement manufacturing. TheNRC Institute for Research in Construction(NRC-IRC) has produced blended cement containingsignificant amounts of CKD that demonstrateexcellent strength characteristics. They are workingto encapsulate and chemically bind trace metalelements in CKD to keep them from leaching.Understanding water pipe corrosion –better city infrastructureEach year, cities inCanada and the U.S.experience thousandsof failures in small greycast-iron pipes. Now,thanks to a three-yearcollaborative researchproject with theAmerican Water WorksResearch Foundation,NRC-IRC is working tobuild a new understanding of the effects of corrosionpitting on the performance and failure of thesepipes. Findings from the research will help utilitymanagers in making decisions about repair andreplacement of water mains and make for safer andmore cost-effective water supplies for Canadianmunicipalities.Burning up the town – in thename of scienceThe abandoned town of Kemano, B.C., has gone upin flames and NRC was on hand to take full advantageof the research opportunities hidden in thesmoke and fire. Kemano was a company town builtby Alcan to support a regional hydroelectricstation. When the station was automated, the townbecame obsolete and was donated to B.C.’s fireservices for fire research and training. The 40 abandonedhouses filled with donated furniture andprops made an ideal, full-scale experimental fireresearch site. Working with the B.C. Fire Commissioner’sOffice, NRC’s research team completed tworounds of tests. The first studied the response ofsmoke detectors in the homes, while the secondevaluated the performance of residential plasticsprinkler systems. The lessons learned will helpprotect Canadians from fire for years to come.15D i s c o v e r yS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Reducing aircraft noise in homesNRC-IRC researchers have developed a computertool that lets the user hear how noise changeswithin a building as an aircraft passes by. The toolallows the user to assess the effects of changing abuilding location and construction details on theacoustic comfort of occupants. City planners anddevelopers can now optimize the use of thevaluable real estate around airports as well asassess the impact of airport extensions, newairplanes and changes in air traffic patterns.NRC’s ocean engineering R&DNRC works with marine regulatory bodies, marinesystem designers, manufacturers and operators andthe defence community to ensure that Canada’socean engineering businesses and operations aresafe, environmentally friendly and competitive.Research at the NRC Institute for Marine Dynamics(NRC-IMD) provides industry with a unique concentrationof knowledge, facilities and technologies tosolve engineering challenges related to Canada’socean environments.Bergy bits and bumper carsNRC-IMD carried out a field program to investigatethe impact of ships colliding with small icebergs in2001. At NRC’s request, the Captain of the CCGSTerry Fox commanded a voyage that went against16With the strongest icebreaker hull in theCanadian Coast Guard’s fleet, the CCGSTerry Fox was the perfect vessel for NRC’sice-ship interaction research.NRC continued its research into lifeboatevacuation capabilities. Research includedan evaluation of the “Twin Falls Davit”system used on floating and fixedinstallations to determine the best heightof deployment, platform clearance andorientation.everything he’d been trained to do: he deliberatelyrammed his 88-metre vessel into small icebergs.NRC used the icebreaker like a high-tech bumpercar to gather first-hand information on the effectsof collisions with bergy bits – house-sized icebergsthat are hard to see in rough weather and often goundetected. As oil and gas development and tankertraffic off Canada’s east coast increases, the informationfrom this research will help oil companiesbetter design tanker hulls. It will also help definethe guidelines that set out the sizes of “bergies”that are safe to strike and the speeds at whichships can safely travel.

Wave impact and scaling – better shipdesign and safetyOcean waves exert a variety of loads on ships’hulls. Accurately predicting these loads helpsresearchers understand the amount of load a ship’sstructure is able to withstand. NRC-IMD is workingwith DND’s Defence Research EstablishmentAtlantic to study hydrodynamic load data, usingnumerical simulations applied to a naval frigateand a vehicle ferry. The objective is to help shipdesigners meet requirements for maximumstrength with minimum weight and cost in 2001.Safer lifeboat evacuationand rescue researchAn NRC research program to evaluate lifeboatevacuation capabilities as a function of weatherconditions and to develop appropriate measuresof performance, moved into its final stages in2001-2002. Studies assessed the entire lifeboatlaunch process – from lowering and splash downto sail away – and evaluated the performance ofan evacuation system used on a fixed petroleuminstallation. As a result of this research, NRC hasapplied for a patent for a launch-wave synchronizingtechnology. The research will also be used inthe development of new performance-based regulationsfor evacuation systems.Advances in information andcommunications technologiesD i s c o v e r yThe information and communications technologies(ICT) sector contributes some $58 billion toCanada’s GDP and represents more than 6 percentof the total economy. In 2000, the sector employedover 580,000 people, nearly 4 percent of economywideemployment. ICT expenditures on R&Dreached over $5 billion in 2001, accounting formore than 45 percent of total private sector R&D inCanada. NRC’s R&D continued to play a vital, crosssectorrole in 2001-2002 with major advances inhardware, software, information processing, andfundamental enabling and next-generation technologies.Human-computer interactionprogram underwayThe NRC Institute for Information Technology(NRC-IIT) has set up a multi-disciplinary humancomputerinteraction (HCI) program, bringingtogether expertise in human factors, computingscience, information science, experimental psychologyand cognitive psychology. Research is nowunderway with the private sector, government anduniversities to investigate key issues in HCI. NRC isalso spearheading the initiative to form a nationalHCI research community. One project has alreadyresulted in the “Nouse” program, which allowspeople to use a camera to control a computermouse by moving their head. A number of prototypeapplications have been developed that havepotential for the gaming industry, persons withdisabilities and surveillance.17S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...18Tele-oncology project forNew BrunswickNRC-IIT’s e-Business team in New Brunswick ishelping deliver a major health research initiativewith four hospital corporations, three Aboriginalcommunities, the province’s Department of Healthand Wellness, the Université de Moncton andothers. Researchers are working to develop an efficient,comprehensive cervical cancer screeningsystem in the province to reduce the incidence andmortality of this disease.“Nanospintronics” – opening newhorizons for IT and electronicsResearchers at the NRC Institute for MicrostructuralSciences (NRC-IMS) have invented a new typeof nanoscale transistor based on “spintronics.” Thedevice employs a new principle for controlling andswitching electrical current based on electron“spin.” The new transistor is made from a “quantumdot” – a type of electrical well or mound that holdsonly a few electrons. While this breakthroughcannot yet be incorporated in any practical device,the research opens the way for quantum computingand, further down the road, optical memory. If thepotential of quantum dots and nanospintronics isrealized, an incredible amount of information couldbe contained in one device and then programmedto interact with other such devices – ushering in aworld where the computing power now containedin a series of computers could be contained in asingle, very small and inexpensive device.ROSA success opens new doors forCanada in space explorationUsing technology developed by NRC-IIT, MDRobotics made a technological leap in the area ofvisual perception and autonomous service of spacevehicles as part of the ROSA – Remote Operationwith Supervised Autonomy – project. The new technologypositions Canada as the leading partner inintelligent visual surveillance in space missions. Inthis project, robotic equipment demonstratedintelligent autonomy while operating remotely inspace. The new technology holds great economicpotential since spacecraft components can beupgraded or reconfigured rather than replacingwhole satellites.3D laser scanning technologytested on space shuttleNRC’s internationally recognized 3D laser scanningtechnology underwent its first on-orbit testingaboard NASA’s Space Shuttle. Researchers successfullydemonstrated that a prototype could automaticallytrack moving targets and operate underthe extreme lighting conditions found in space. Thedevelopment and testing of this new technologymarked another milestone in Canada’s ongoingcontributions to space exploration. The firstCanadarm and the current space vision system –used in some 20 past missions – are both productsof NRC research. This new 3D technology has thepotential of becoming the new “eye” of CanadarmII. The new 3D laser camera marks a scientificbreakthrough. It is the first laser tracking systemthat can simultaneously digitize in 3D, detectsurface defects, track geometrical features in realtime and remain immune to extreme lightingconditions.

Advances in manufacturingCutting costs – reducing wearfor the resources sectorThe NRC Innovation Centre(NRC-IC) in Vancouver is helpingCanada’s resources sector cutcosts by reducing wear and tearon equipment. Working on behalfof the Mining Wear ResistanceMaterials Consortium – an affiliationof NRC, two universities andnine private firms from Australiaand Canada, including oil sandsgiant Syncrude, the researchersare unravelling the mysteries offriction and wear. This R&D has amajor impact, allowing firms thatmine the oil sands, for example,to cut their overall productionexpenses significantly.Image courtesy Syncrude Canada Ltd.D i s c o v e r yManufacturing remains one of Canada’s majoreconomic forces, touching virtually every sector ofthe economy. NRC’s R&D programs are targeted tohelp manufacturers increase their competitivenessand improve the commercial viability of productsand services. The programs also help manufacturerscreate and adapt to new technologies, materialsand processes, and meet their environmentalresponsibilities.Refining processes for food industriesResearchers at the NRC Institute for ChemicalProcesses and Environmental Technologies (NRC-ICPET) collaborated with Montréal-based ColarômeIncorporated, helping the company improve itsprocessing system for refining food grade coloursfrom vegetable extract. Process modificationsincluded replacing a biological processing stagewith a physico-chemical stage. The modifications,successfully implemented on-site, reduced thenumber of process stages, decreased processingtime by 33 percent, and improved product quality.Artificial cornea researchmoves forwardNRC-ICPET researchers, workingin collaboration with theUniversity of Ottawa’s EyeInstitute and other partners, aredeveloping new biosyntheticpolymers for use in tissue engineered(TE) corneas. Thechallenge is to develop a familyof synthetic materials that canbe made into TE corneas strongenough for transplantation, transparent enough tomimic natural corneas, and resistant to biodegradationand rejection by the body’s immune system.So far, they have developed a series of biosyntheticpolymers that can be tolerated by living cell tissueand modified to improve the strength of thematerial and cell adhesion. They have advancedcell biology to the point where both nerve cell andblood vessel ingrowth were demonstrated. And, theteam has been successful in developing proceduresthat allow the production of transparent, collagenbasedpolymeric materials to produce artificialcorneas.19S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...20Environmentally friendly,efficient insulationResearchers at the NRC Industrial Materials Institute(NRC-IMI) have helped RTICA Corporationbring a new thermal and acoustical insulation tomarket. The new insulation is made of 100 percentrecycled plastic, has a 25 percent better thermalinsulating efficiency than conventional fibreglassand cellulose insulation, and poses no health riskto installers or users. RTICA Corporation has spunoff a new company to commercialize this NRCtechnology.Prototypes for mine designResearchers at the NRC Integrated ManufacturingTechnologies Institute (NRC-IMTI) have developeda design and manufacturing process for constructingprototypes and models of mine design andtheir operational components. This is a brand newapplication for rapid prototyping that opens thedoor for many other potential applications inmining and natural resources exploration.Advances across-the-board infuel cells R&DNRC’s National Fuel Cells Program combinesstrengths and expertise from across its institutesand centres in 12 R&D initiatives targeted to helpthe development of this emerging industry inCanada. Working in partnership with industry,universities and public organizations in Canadaand abroad, the program integrates R&D efforts inmaterials, engineering, fuels and fuel processing,prototyping, systems testing and evaluation, andsystems technology evaluation. In 2001-2002, NRCmade advances on a number of key fronts in fuelcells R&D:• The fabrication and production of new cathodematerials that offer possibilities for higher performancematerials for both the fuel cell and batteriesindustries• Developments in oxide and bi-metallic alloycoatings for electrodes for organic acid and directmethanol oxidation that promise improved removalof organic pollutants and direct methanol fuel cells• Development of a first-generation micro fuel cell aspart of NRC’s Micro Fuel Cells Program – a collaborationof NRC institutes, Simon Fraser Universityand its newest partner, the Micro-NanotechnologyResearch Centre of Tsinghua University, China• Development of an analog multiplexer and differentialamplifier technique that can scan every cellvoltage of a fuel cell stack – a breakthrough thatallows fuel cell performance monitoring andimproved fuel cell safety• Development of a novel, multi-stage, nonmechanicalhydrogen compressor that can replacetraditional mechanical gas compressors, leading toreduced costs and more economical fuel cells• Invention of a new modelling and simulation toolfor the design and development of fuel cell-basedhybrid power systems – a development with wideapplication for fuel cell developers and utilitycompanies• Research into the potential use of farm wastes suchas pig manure, as a biomass-based source of fuelfor fuel cells.

Value for CanadaTaking technology to marketVC a pl ua ec i t yCanada must becomemore innovative if we areto continue to build on oureconomic and socialfoundation…We need tofind ways to create knowledgeand bring it tomarket more quickly…The Honourable Allan RockMINISTER OF INDUSTRYResearch creates new ideas andadvances the frontiers of knowledge.To put this knowledge to work, it mustbe transformed into new technologies,new products and new servicesfor the global marketplace.Research turns money into knowledge…innovation turns knowledge into money.NRC promotes innovation and createsvalue for Canada in many ways. It notonly enhances Canada’s R&D performance,it also develops and uses thecornerstones of wealth creation – newtechnologies and technology-basedenterprises, technology transfermechanisms, and knowledge transferand dissemination systems. NRCstrengthens Canada’s innovationsystem, works to attract foreign directinvestment in technology-based firms,21S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...“An innovative economy is driven byresearch and development… To secureour continued success in the 21stcentury, Canadians must be among the first tointegrate new knowledge and put it to use.”Speech from the ThroneJANUARY 30, 2001and helps build the innovation capacity ofCanadian businesses.In all its programs and activities, NRC takes anaggressive, entrepreneurial approach to stimulatethe innovation that Canada and Canadian firmsneed to succeed in the global knowledge economy.The approach is designed to gain the most benefitand leverage from the knowledge and technologiesNRC generates. It ensures that NRC can work effectivelyto meet industry needs and match thecapabilities of firms taking technologies to themarket. From collaborative R&D through to licensing,the creation of new enterprises, and industrialresearch assistance and support, NRC supportswealth creation through innovation.22NRC : Innovation snap shot 2001-2002Creating value through NRC technologiesDiscoveries• 180 patent applications• 65 patents issuedTechnologies transferred tothe marketplace• 51 licenses signed• licensing revenue – $3.8 million•256 active license agreementsResearch partnerships• 362 collaborations with industry• 152 collaborations with universities• 186 collaborations with other publicorganizationsNew companies created*• Capital Laser Inc.• Ionalytics Corporation• NavSim Technology Inc.* nine companies in spin-off pipelineNRC industry partnership facility (IPF)and incubation program• 71 companies incubating at NRC• New IPFs under construction: Fredericton,Boucherville, Saskatoon, Penticton, Vancouver,Victoria. Planning underway for IPFs inSt. John’s, Halifax, Winnipeg, Edmonton.

Intellectual propertyThe importance of new knowledge, managed effectivelyby organizations as intellectual property (IP),has grown dramatically in the past decade. Originaldiscoveries, know-how, software and new technologies– protected by patent or copyright – are thefoundations for new products, process innovationsand commercialization in the world’s marketplaces.To ensure its new discoveries make the mostimpact in terms of value creation for Canada, NRCchooses the best route to develop and exploit itsknowledge resources. Over the past several years,NRC has developed a collection of proven IPmanagement tools and practices that guide theevaluation, protection, exploitation and transfer oftechnologies to receptor firms. As a result, annualNRC patent applications have grown more than50 percent over the past five years, and licensingof these discoveries has continued apace.NRC patents and licenses0 50 100 1501997-19981998-19991999-20002000-20012001-2002Number of patent applicationsNumber of patents issuedNumber of licenses issued200Collaborations and partnershipsV a l u eOne of the best ways to transfer knowledge isthrough collaborative research. NRC teams up withindustrial and university partners to create newtechnologies and improve existing products andservices.NRC partnerships andagreements1997-19981998-19991999-20002000-20012001-20020 200 400 600 800 1,000 1,200 1,400Canadian organizations and partnersInternational organizations and partnersTotal organizations and partnersUnder such agreements, both sides share fundingand management of medium-to-long-termresearch. Partners are engaged early to ensure thatprojects align with their needs, the needs of themarketplace and NRC needs. Partners work side-bysidewith NRC researchers, increasing the technicalexpertise of the firm, ensuring that NRC is pluggedinto marketplace realities, and improving the oddsfor commercial success. Collaborations range fromprojects with single companies to multi-partnerarrangements with small and larger firms, as wellas university partners and all three levels ofgovernment.Over the past five years, NRC partnerships withindustry have doubled, those with public organizationshave nearly tripled, and those with universitieshave grown five-fold. The value of agreementsand collaborations reached some $401 million in2001-2002.With its long-standing track record for excellence inR&D and new technology creation, opportunities tocollaborate with NRC are of great interest to industrialand other partners. The investments made byNRC are heavily leveraged on behalf of taxpayers.In fiscal year 2001-2002, partner contributions totalled2.48 dollars for each dollar invested by NRC.23S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Intellectual property (IP) is frequently generatedthrough collaborations. Often, NRC, on behalf ofthe Government of Canada, retains the IP, whilepartners hold licenses (some exclusive) negotiatedin advance to exploit and manage the technology.When it is in the best interests of both parties, IPmay be assigned to the partner organization.Leverage impacts of NRC investments1997-19982 2.2 2.4 2.6 2.83Contributions to NRC agreements($ millions)0 5 10 15 20 25 30 35 401997-19981998-1999451998-19991999-20001999-20002000-20012000-20012001-2002242001-2002Ratio of partners' investments to NRC investmentsNRC contributions to agreementsCash contributions of partners to agreementsIn-kind contributions of partners to agreementsLicensingIn moving its discoveries to the marketplace,NRC seeks out industrial firms best positioned toexploit the technologies it has developed. Licenseagreements are generally granted in return for upfrontpayments and/or royalties based on sales.Often, licensing agreements arise from collaborativeresearch; in such cases the terms of theagreement reflect a client’s contribution indeveloping the technology. A single technologymay also be licensed to several clients for differentfields of application. In all cases, licensingrevenues flow back to NRC – benefitingCanadians. NRC reinvests these revenues in itsR&D programs to continue the cycle from discovery,to innovation, to market – creating neweconomic wealth for Canada.In 2001-2002, NRC formalized 51 licensing agreementsand received revenues from licensing ofjust over $3.8 million.NRC had a number of successful research collaborationsand licensing arrangements in 2001-2002,as the following examples demonstrate.NRC and Imperial Oil maximizeuse of scarce resourcesImperial Oil Ltd. signed a license agreement withNRC to use NRC-ICPET’s patented fluid coker feednozzle technology for petrochemical processing.The system, jointly developed with SyncrudeCanada Ltd., was originally intended for oil sandsprocessing in coker reactors to increase the yield ofsynthetic crude oil. However, as an alternate application,Imperial Oil has incorporated thetechnology in its Sarnia operation to upgrade lowerquality residuals from the primary refining processin a similar coker. The result is reduced waste andup to 20,000 bbl/day of a value-added, higher-gradepetroleum product, representing at least a onepercent increase in coker liquid yield.NRC licensing revenues($ thousands)1995-1996 1,1541996-1997 8021997-1998 2,1211998-1999 1,6851999-2000 1,1172000-2001 4,9042001-2002 3,840TOTAL LICENSING REVENUES FROMINTELLECTUAL PROPERTY

Meningitis-Cvaccine approved for CanadaOn January 14, 2002, NRC andits partners – Shire Biologicsand Baxter Corporation –celebrated the launch of amajor breakthrough in vaccinetechnology with the approvalby Health Canada of the NeisVac-C vaccine developed at NRC. Neis Vac-C is anew, highly effective vaccine that protects people ofall ages, including children as young as two monthsof age, against Meningitis-C. The vaccine’s capacityto effectively protect very young children, the grouphardest hit by Meningitis-C, sets Neis Vac-C apartfrom traditional vaccines used in North America.The vaccine was originally launched in Britain andwill continue to be introduced in other parts of theworld in 2003-2004. This NRC vaccine technologygenerated a single royalty payment to NRC ofalmost $3 million – the highest ever made to afederal government organization.Broadband Visual Communications –reaching out across CanadaNRC formed its Broadband Visual CommunicationsResearch Project (BVC) in 2001 as an outgrowth ofits ongoing research into broadband applicationsfor learning. This program involves collaborationswith the National Arts Centre (NAC), theCommunications Research Centre (CRC), theUniversity of Ottawa, CANARIE, McGill Universityand the Manhattan School of Music. The programfocuses on visual and interactive capabilitiesunique to broadband with a particular emphasison the environments and applications that bringpeople together across distance and time. Theprogram supports three learning communities:advanced violin students working with NAC musicdirector Pinchas Zukerman; high school studentsengaged in project-based learning in eight broadband-connectedschools across Canada; and highschool teachers involved in professionaldevelopment.“Science studies what is, technology createswhat has never been.”Dr. Theodore von Karman1881 – 1963White Rose oil field platform testOffshore oil field development is important toNewfoundland’s economy and the future of itsmarine engineering industry. With the province’sthird major offshore oil development about to getunderway, NRC is maintaining its record of havingbeen asked to study all three offshore productionsystems. The NRC-IMD Offshore Engineering Basinwas used for preliminary studies of the proposedFloating, Production, Storage and Offloading (FPSO)vessel for the White Rose Field. A seriesof model tests were conducted involving theproducers, Oceanic Consulting, and NRC tomeasure mooring loads, green water and otherfactors affecting the FPSO in the field. NRC was thesite for extensive testing of the Hibernia GravityBase Structure that has operated successfully since1996, the Terra Nova FPSO deployed in 2001, andthe Cohasset-Panuke project.25V a l u eS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC and Dow AgroSciences – battlingE.coli on a new frontNRC has signed a two-year agreement with DowAgroSciences Canada aimed at eliminating dangerousE.coli 0157 outbreaks, such as the Walkerton,Ontario tragedy. The research focuses on includingan antibody in cattle feeds, which will lead to theelimination of E.coli 0157 from cattle digestivesystems. The new E.coli research agreement followsa collaboration signed in 2000-2001 with ForagenTechnologies to commercialize a live vaccineinvented by NRC to eliminate E.coli 0157 in cattle.NRC worked successfully with Dow AgroSciencesbefore embarking on a $10 million strategic alliancewith the company for research in canola seedquality, enabling plant biotechnologies, and plantresistance to insects and disease.After hours – lights, camera, actionCreating economic value takes many forms atNRC – truly innovative, imaginative and occasionally,non-scientific forms. Following on the successof filming scenes for the feature film Rare Birds in2001 at NRC-IMD facilities in Newfoundland, thefilm industry returned this year with two moreproductions. The first was The Shipping News, a bigbudget film that brought millions of dollars andhundreds of jobs to the fledgling local filmindustry. The second was the filming of two docudramasabout the sinking of the Ocean Ranger andthe 1997 Around the World Alone Sailing Race.NRC’s world-class facilities were a major factor forproducers in deciding to bring the productions toNewfoundland.26Incubators/co-locationCreating value for Canada also involves helping togrow new science and technology-based firms.Incubation not only accelerates the process ofstarting and growing such firms, but also helpsthem stay in business. According to a 1997 U.S.study on the impact of incubator investments, 87percent of firms that were in incubators remainedin business after the first three critical years.Most of NRC’s research institutes have industrypartnership facilities (IPFs) or other means toincubate new, small, technology-based firms. TheseIPFs act as magnets that attract innovative firms toNRC. By co-locating with NRC, firms gain directaccess to NRC’s specialized facilities, the expertiseof its researchers, extensive national and internationalnetworks, and its technology intelligence andknowledge dissemination resources.In 2001-2002, 71 firms were incubating or colocatedat NRC. New industry partnership facilitiesare being constructed in Fredericton, Boucherville,Saskatoon, Penticton, Vancouver and Victoria, withnew IPFs on the drawing board for Halifax,Winnipeg, and Edmonton. Such facilities will be apart of any new NRC research facility in the future.

One of NRC’s newest industrypartnership facilities (IPFs), underconstruction at the NRC PlantBiotechnology Institute inSaskatoon. The facility, slated toopen in fall 2002, will contributeto an emerging cluster inSaskatoon on crops for enhancedhuman health.A graphic representation of NRC's futureIPF at the NRC Institute for Biodiagnosticsin Winnipeg. Construction is scheduledto begin in spring 2003, for completion inlate 2004. The new facility will promotethe development of medical devicetechnologies manufacturing.Spin-off and start-up firmsNRC spin-off firms 1997-2002Total newcompanies1997-1998 7 211998-1999 10 311999-2000 9 402000-2001 9 492001-2002 3 52Cumulativespin-off firmsV a l u eOften the fastest and most effective way tocommercialize a new technology or product is tocreate a new Canadian company. That venture caneither be a spin-off firm (formed by NRC employees)or a start-up firm (created by non-NRCprincipals using NRC technologies). Since1995-1996, NRC technologies have led to thecreation of 52 new companies in Canada.In 2001-2002, three new companies started upfrom NRC, with nine more in the spin-off pipelineawaiting formal “graduation.” The three newNRC spin-off firms were:• Ionalytics Corporation – Using NRC’s high FieldAsymmetric Waveform Ion Mobility Spectrometry(FAIMS) technology• Capital Laser Inc. – Using NRC’s Laser MicromachiningTechnology• NavSim Technology Inc. – Using NavSim shipmanoeuvring simulation software from NRC.Ionalytics Corporation – FAIMSmoves to marketOn November 22, 2001, NRC announced thecreation of Ionalytics Corporation, a companyspun off from NRC-INMS. Ionalytics has licensedNRC’s FAIMS technology, which was developed incollaboration with MDS-Sciex, a manufacturer ofmass spectrometry equipment based in Toronto.The new firm will design and manufacture FAIMSchemical analysis systems as accessories for themass spectrometers that are used in diversefields. Application areas include biotechnology(proteomics and drug discovery), security (detectionof chemical and biological agents), and themonitoring of environmental wastes. The companyhas already acquired a start-up investment of$2 million from Genesys Capital Partners Inc.of Toronto, a venture capital firm specializingin funding of biotechnology companies.27S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...“MDS Sciex has worked with various institutes of theNational Research Council… for the past 20 yearsand we owe much of our success to that enduringrelationship. We look forward to extending ourcollaborative efforts… to include Ionalytics, and wewill certainly support their continued developmentof the FAIMS technology.”Bill DavidsonV. P. SCIENCE AND TECHNOLOGYMDS- SCIEXVenture capital funding –over $220 million in five yearsThe past two years have seen a downturn in bothinvestment and employment in Canada’s hightechsector. According to a recent report byMacDonald and Associates, the number ofventure capital deals in Canada dropped27 percent and the amount committed dropped15 percent. In contrast, over the same period, thenumber of venture capital deals with NRC spinoffshas almost doubled, and the amount investedhas increased. Even in the last six months, newdeals were signed for over $2 million, with followondeals of over $50 million.28Capital Laser – laser micro-machiningto go commercialCapital Laser is a spin-off firm from NRC-IMTI inLondon, Ontario, created to commercialize NRC’sIP in laser micro-machining technology. The firmis incubating at NRC’s London facility during itsstart-up phase, a term expected to last for 12months. The co-location will be crucial to the newfirm since NRC’s contribution to the company ismainly in the form of trade secrets.NavSim Technology Inc. – helpingships navigate the worldNavSim Technology Inc. (NSTI) is a spin-off firmtaking an integrated navigation system to market.The system includes an advanced and unmatchedversion of AutoPilot that will be useful to ships,both large and small as well as fishing boats. Italso includes an electronic chart and displayinformation system, grounding and collisionavoidance systems, route planning and dynamicposition components. The product will be acompact system designed to integrate availableglobal navigation systems within laptop computers.The company plans to have the first CDavailable for market this year. NSTI started withsix employees.NRC bucking the trendin new venturesThe probability of success of a new venture,whether a spin-off or start-up firm, is low.According to Statistics Canada, 80 percent of newfirms will fail within their first ten years. Of tennew ventures funded by venture capitalists, onlyone is expected to be a true success; the resteither fail or exhibit only slow growth.In contrast to this rather bleak picture, NRCspin-offs since 1995-1996 are thriving. Of the 52created, 49 companies, or nearly 96 percent, havesurvived and most of these are prospering.“Genesys Capital Partners Inc. investsdirectly in research-oriented biotechnologycompanies with a focus on genomicsand proteomics technologies, late-stageclinical products, speciality pharma ande-health. We were on the lookout for newtechnology in the NRC laboratories whenwe came across the FAIMS research teamand decided to invest in this promisingcompany.”Damian LambMANAGING DIRECTORGENESYS CAPITAL PARTNERS INC.Some NRC spin-offs to watch• IatroQuest – spun off in 1998 to commercializetechnology for the virtually instantaneous detectionof chemical and biological toxins, the firmreceived almost $5 million in venture capitalfunding in 2001. The company is developingunique, miniaturized sensing and diagnosticsystems for defence and peacekeeping, medicaldiagnostics and environmental monitoringapplications

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC-IRAP – 2001-2002performance highlightsIn 2001-2002, NRC-IRAP’s total level of activitywas $149.65 million. It provided some 12,400firms with customized information, advice andreferral services. The program’s total financialcontributions to firms were $97.87 million, including$29.71 million in Technology PartnershipsCanada funding on behalf of Industry Canada and$3.95 million in Youth Initiatives on behalf ofHuman Resources Development Canada. Thecontributions went to 2,841 SMEs for 3,271 innovationcapacity building projects.The program played a proactive role in identifyingand facilitating potential SME partnerships, networksand multi-stakeholder interactions at thelocal, regional, national and international levels.NRC-IRAP maintains a vital and growing networkthat includes more than 100 of Canada’s leadingpublic and private research and technology-basedorganizations. Organizations collaborate withNRC-IRAP to increase the innovative capability ofSMEs through Technology Advisory Services, aswell as other agreements for specific collaborationinitiatives. These collaborations enhanceclient value-added services, strengthen national/local infrastructure, extend the program’s reach,and bridge gaps in the program’s capabilities bycreating more innovation services for SMEs.In 2001-2002, total contributions to NM organizationsamounted to $23.52 million. NRC-IRAP also30Delta, B.C.-based Pure Logic TechnologiesLtd. is a consulting firm specializing insawmill design engineering. In a collaborationbrokered by NRC-IRAP, Pure Logicjoined forces with the NRC InnovationCentre in Vancouver and the NRC IntegratedManufacturing Technologies Instituteto develop ForeSight – an AutoCAD-basedcomputer program that allows planners todesign, build, and run a virtual sawmill – afirst for the sawmill industry.Cambridge, Ontario-basedAgribiotics Inc. has movedonto the cutting edge ofagricultural biotechnology byacquiring the rights to workwith an “inoculant” strain ofplant bacteria, originallydiscovered at the Universityof Wisconsin-Madison, thatpromises to improve theprospects of corn farmersaround the world. Agribioticswas able to beat out severallarger rivals and close a dealwith the University in lessthan two weeks – thanks tothe backing of NRC-IRAP andTechnology PartnershipsCanada.NRC-IRAP total level of activity in 2001-2002Total: $149.65 mIRAP-TPC contributionsto firms (20%)IRAP contributionsto organizations (19%)Financial arrangementswith OGDs (2%)IRAP contributionsto firms (42%)contributed a total of $4.31 million to CTN toaddress gaps in national, regional and communityinnovation systems. And, NRC-IRAP worked withlocal stakeholders across Canada to collectivelyimprove understanding of the community technologycluster concept, reinforce the Governmentof Canada’s innovation agenda, encourage moreSMEs and local institutions to participate incluster activities, and facilitate coordinationamong community players.Youth (3%)Wages, capital& operating (14%)

NRC-IRAP – new strategicplan on the wayIn 2001-2002, NRC-IRAP began work to develop anew strategic plan to provide more benefits toSMEs. The strategy is built on a number of keyelements that will strengthen the program furtherand move in new directions to promote innovation:• More assistance, advice and funding for highrisk/high-returnR&D at earlier stages – to helpsmall firms grow to medium-size, and mediumsizefirms grow to large firms• Increased efforts to create international networksand partnerships – global reach – to help SMEsaccess foreign technology, alliances and marketsvia missions, visits, joint ventures, partnershipsand collaborative R&D• Help to nurture new and emerging communitybasedtechnology clusters – supporting SMEparticipation, enhancing community infrastructurefor clustering, and seeking international opportunitiesthat promote community clusterdevelopment• Building a national competitive technology intelligence(CTI) capacity for NRC-IRAP – to help SMEsanticipate the future and make key technologydecisions sooner – keys to their growth and thecreation of new jobs• Greater focus on commercializing publicly fundedR&D – encouraging collaboration betweenresearch organizations and SMEs, promotingtechnology exploitation by SMEs, creatingreceptor capacities and creating tools, programsand forums for best practices, intelligence andinformation exchanges.Knowledge forCanada – a vital currencyIn today’s economy, the creation of new knowledgeand its transformation into new productsand services are fundamental to economic growth.NRC creates new knowledge directly through itsresearch activities, through publication in peerreviewedjournals, conferences and other key fora,through its participation on committees, and byorganizing and attending conferences andworkshops.In 2001-2002, NRC published 1,003 papers inleading peer-reviewed journals, including suchprestigious publications as Science and Nature. Ithad 800 papers published in conference proceedingsand produced 1,527 technical reports. NRCstaff held editorships or sat on the editorialboards of some 159 S&T publications. NRC staffalso sat on 432 national committees and 589international committees, organized 151 conferencesand workshops, and attended 646international conferences. NRC staff also held270 adjunct professorships with universitiesand colleges across Canada.NRC publications1997-19981998-19991999-20002000-20012001-2002*600 800 1,000 1,200 1,400 1,600Total publications in referred journalsTotal papers in conference proceedingsTotal technical reports* Technical reports have more than doubled primarily due toNRC-INMS having authored substantially more calibrationreports, as a result of the International Laboratory AccreditationCooperation Mutual Recognition Agreement.31V a l u eS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...32NRC’s Canada Institute for Scientificand Technical Information – vitalknowledge infrastructure for CanadaThe importance of NRC-CISTI as Canada’s sciencelibrary, largest scientific publisher and leadingscientific, technical and medical (STM) informationdissemination resource has assumedincreased importance in the knowledge economy.NRC-CISTI maintains, publishes and providesaccess to the STM information essential toCanada’s researchers. It provides access toCanadians through NRC Information Centres(NICs) across Canada as well as virtually via theInternet.In 2001-2002, NRC-CISTI provided nearly onemillion documents worldwide, with some62 percent to Canadians – 20 percent to industry,50 percent to the academic community, 7 percentto the medical community, and 11 percent topublic organizations. NRC Research Presspublished close to 6,400 peer-reviewed submissionsfrom authors in Canada and around theworld.The program’s support of NRC’s technologycluster agenda continued in 2001-2002, withinitiatives underway to open NICs in AtlanticCanada (New Brunswick and Prince EdwardIsland), in NINT and at the new NRC-AMTC inMontréal. The program also began operating theNortel Optical Knowledge Centre in April 2001,for Nortel Networks’ Optical Long Haul group inOttawa. Staffed by an NRC-CISTI informationspecialist, the centre provides Nortel staff withaccess to essential information resources. NRC-CISTI is looking at this unique operatingarrangement as a model for services to otherCanadian companies.NRC-CISTI is also adopting an integrated managementapproach for the development and deliveryof its knowledge and information products andservices. It will implement an innovativee-Business environment to provide access to,and extend the reach of, its information productsand services. It is also creating a unique“e-infostructure” which will provide Canada withpermanent electronic access to the world’s bestSTM information. In conjunction with NRC-IRAP,it extended its outreach to SMEs and industryassociations, and will offer new services such ascompetitive intelligence, technology roadmappingand technology forecasting information services.

Community-basedinnovationBuilding technology clustersacross CanadaDC oi sm cm o u v ne i r t y yCommunities are where the elements of a national,globally competitive innovation system come together.They have the potential to accelerate the pace ofinnovation, attract investment, stimulate job creationand generate wealth. To become magnets for investmentand growth, communities need a critical mass ofentrepreneurship and innovation capabilities.Communities where innovation thrives typically houseindividual “clusters” – internationally competitive centresof growth… Canada’s communities also have to be part ofa globally connected world.Canada’s Innovation Strategy:Achieving Excellence – Investing in People,Knowledge and Opportunity33S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...The growing international wave of innovationdriven at the local level is based on public andprivate sector teamwork, partnerships andnetworks. Canada, given its vast geography, relativelysmall and dispersed population, andpredominance of SMEs, has increasingly taken acollaborative approach to building communityinnovation over the past decade.NRC is a nationally accessible, community-basedS&T resource for Canadian business. With itsworld-class R&D, its renowned Industrial ResearchAssistance Program to provide technology adviceand support to SMEs, and its Canada Institute forScientific and Technical Information as a nationalinformation resource, NRC has long played aleading, dynamic role in many Canadian communities.NRC works with communities across thenation to increase their capacity in key technologyfields through jointly developed innovation strategiesthat support the sustained growth oftechnology clusters.Building technology clusters:the key components34NRC – community innovationinitiatives across CanadaIn 2001-2002, NRC continued to develop andexpand its local community cluster initiatives inpartnership with stakeholders across Canada andfocused on achieving four strategic goals:• Creating a globally competitive research and technologybase for cluster development at thecommunity level• Supporting community leadership, championsand knowledge-based strategies• Working with stakeholders to leverage funding andnew investment in community clusters• Stimulating the emergence of new firms, jobs,exports and investment growth.Newfoundland – ocean andmarine technologiesTo support the new ocean and marine technologiescluster in St. John’s, NRC began expansion of itscore R&D programs to respond to the community’sfuture requirements, as identified at the communityRound Table led by NRC and industry in early 2001.NRC completed plans to construct a dedicatedindustry partnership facility in 2002 to supportyoung entrepreneurs, start-ups and spin-offs. Italso increased NRC-IRAP, CTN and CISTI forces inSt. John’s to engage and support local SMEs.In partnership with Industry Canada and a numberof public and private sector partners, NRC is leadingthe Marine and Ocean Technologies Roadmap initiativeto identify the future market opportunities andtechnology requirements of Canada’s marine, shipbuildingand energy sectors. The roadmap deliverson one of the government’s commitmentsannounced in A New Policy Framework for theCanadian Shipbuilding and Industrial MarineIndustry: Focusing on Opportunities 2001.

Prince Edward Island – a roadmapto the futureNRC co-led an initiative with the Atlantic CanadaOpportunities Agency (ACOA), the province, anduniversity and private sector partners to assessopportunities for P.E.I. to translate its economicstrengths in primary resources into a sustainablebioresources technology cluster. The BioresourcesTechnology Roadmap was completed in March2002. The exercise considered over 100 opportunityareas and recommended a focus on bioactivecompounds from marine and other sources whiletaking into account regional strengths and asustainable development context. The steeringcommittee commissioned supplementary reportson receptor capacity in Atlantic Canada and on thebioresource inventory in P.E.I. This exercise workedto bring the Atlantic community together around acommon vision for the growth of the bioactivestechnology cluster. The next steps in the processwill be to refine the research opportunity for thecluster, develop a business plan, identify aHighlights of communityinnovation initiatives• Ocean and marine technologies – St. John’s –creating new opportunities for this industry sectorlocally, regionally and nationally• Life sciences and marine biosciences – Halifax –building on community strengths and integratingplayers in these emerging fields• IT/e-Business – Fredericton, Moncton, Saint Johnand Sydney – integrating regional strengths tobuild a world-class IT/e-Business cluster• Aerospace manufacturing technologies –Montréal – assisting the SME community inCanada’s largest aerospace cluster• Advanced aluminium technologies –Ville Saguenay – building value-addedmanufacturing in a region housing 95 percentof Canada’s aluminium players• Photonics – Ottawa – supporting the emergingworld-class high-tech cluster in photonics andbuilding on Ottawa’s vibrant IT cluster• Medical devices – Winnipeg – building a clusterin precision and virtual manufacturing of medicaltechnologies• Crops for enhanced human health & nutraceuticals –Saskatoon – building new dimensions for this worldleadingagro-biotechnology cluster• Nanotechnologies – Edmonton – building Canada’sR&D capacity, infrastructure and programs• Fuel cells – Vancouver – supporting the developmentof a world-class cluster in fuel cell and alternativeenergy technologies.community champion, and create an AtlanticCanada Bioactives Cluster Network.To support further growth of innovation capacity inthe province, NRC has established an NRCInformation Centre and is expanding its NRC-IRAPand CTN presence. Negotiations were underway atthe end of the year to lease long-term space inCharlottetown to house NRC’s increased activities.Nova Scotia – life sciences, marinebiosciences and ITThe Greater Halifax region is emerging as one ofthe “smartest” and fastest growing research centresfor life sciences in Canada. Life sciences are one ofthe province’s most dynamic industries, expandingat more than double the national rate.To support this dynamic sector and help strengthenthe region’s innovation capacity, NRC has begun toincrease its R&D capacity in genomics, proteomics,bioinformatics and advanced imaging, allocating$15 million to NRC-IMB. Work also began on an IPFfor the institute to increase technology transfer andcommercialization strengths. In partnership withDalhousie University, the Queen Elizabeth II HealthServices Centre, and the Halifax medical community,NRC-IBD and NRC-IRAP completed plans for astrong R&D and business presence at the new brainrepair centre in Halifax. NRC’s key contributionswill be the installation and operation of a functionalmagnetic resonance imaging system and theestablishment of fundamental R&D infrastructureand capability for the centre. As well, the LifeSciences Development Association (LSDA), establishedin 2000-2001, elected a permanent boardand formed new executive and steering committees.The LSDA is vital to the integration, planning,cooperation and governance of the entire lifesciences community effort. NRC-IMB co-chairs theLSDA and NRC-IRAP is on the steering committee,contributing to LSDA outreach, networking andcommunications activities.35C o m m u n i t yS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...In Cape Breton, NRC established the nucleus of aninformation technology (IT) research groupconnected to its national IT and R&D strengths.Located at the University College of Cape Breton inSydney (UCCB), the group will help develop corecompetencies in software engineering for real-timecontrol and embedded systems for short-range,dynamically reconfigurable wireless networks. NRCand UCCB will establish an IT innovation centredesigned to support start-up companies andencourage technology transfer. NRC-IRAP recentlyinitiated an internship program with UCCB that willsee up to ten graduates per year join the NRC-IITresearch group.New Brunswick – moving into thee-Business “big leagues”NRC began construction of its new research institutedevoted to information technology ande-Business on the Fredericton campus of theUniversity of New Brunswick. Scheduled to open inthe fall of 2002, the new facility will be home to 40NRC researchers and a similar number of guestworkers, visiting scientists and industrialresearchers. It will be tied closely to NRC institutesand national facilities across Canada as well asbeing home to an NRC information centre. Work isunderway thanks to an additional $12 millioninvestment by ACOA and the Government of NewBrunswick, on satellite facilities in e-Business/IT inSaint John and Moncton, and on a broadbandresearch network to connect all NRC NewBrunswick facilities with partners.NRC and ACOA hosted a two-day forum inSaint John to identify issues and opportunities36In 2001-2002, NRC beganconstruction of its newresearch institute devotedto information technologyand e-Business on theFredericton campus ofthe University of NewBrunswick. The newfacility is scheduled toopen in the fall of 2002.Building new community innovationinfrastructure in Canada• New industry partnership facilities on the way – 10• New advanced technology facilities on the way – 6• New/enlarged institutes/satellite facilitiesand programs – 11• New/expanded NRC-IRAP and NRC-CISTIservices/presence – 11and to propose a model for development of acollaborative cluster. A steering committee laterrecommended that a new body – the NewBrunswick Knowledge Industry Leadership Network(KILN) – be formed. The governance structure isnow under discussion with the community.NRC-IRAP collaborated with local stakeholders tosupport SME e-Business projects, establish theAtlantic Ventures Group – an organization designedto attract investment and match sources of capitalwith growing companies – and support NB-SPIN, anetwork of IT professionals interested in softwareprocess improvement. NB-SPIN offers a forum forthe free exchange of software process improvementexperiences and concepts, providing SMEs withaccess to information and services that willimprove their competitive performance.

Québec – aerospace manufacturingand aluminium technology clustersNRC moved forward with itsvalue-added aluminiumproducts industry clusterdevelopment effort in VilleSaguenay. Constructionbegan on the NRCAluminium TechnologyCentre on the campusof the Université de Québecà Chicoutimi. The centre willprovide industry with technicalsupport and expertiseneeded to develop valueaddedaluminium-basedproducts and services. It will combine R&D activities,and process simulation and instrumentationefforts targeted to aluminium manufacturing technologiesdevelopment and to the transformationof aluminium into finished and semi-finishedproducts. The centre will be home to 80 researchers,technicians and technical staff working tosupport industry, mainly SMEs. In addition, about20 young scientists will be trained at the centreeach year – helping build the highly skilled talentCanada needs in this important sector.In Montréal, NRC’s goal of creating its world-classAerospace Manufacturing Technology Centre(NRC-AMTC) saw major progress. The facility willprovide the region with an integrated approach toaerospace manufacturing technology research,development and application. Located on thecampus of the Université de Montréal, it willaccommodate up to 100 staff and guest workersinvestigating advanced metal products, informationsystems and computational methods, advancedcomposite products, and functional materials. Theresearch will focus on next-generation manufacturingwith particular relevance to SMEs. The centrewill respond to the needs expressed by theindustry, including challenges in manufacturing andlife cycle costs, environmentally compliant materials,processes and systems, strategic intelligenceand information management systems, and thetraining and development of highly skilled people.Ontario – photonics – light speedtechnology for CanadaNRC accelerated its plans to establish its NRCCanadian Photonics Fabrication Centre(NRC-CPFC) in Ottawa with the technology clusterfunding announcements made in the federalbudget in December 2001. The centre will be aunique national resource designed to give theCanadian photonics industry the competitive edgeit needs. It will provide a facility to develop andtest prototypes of new photonics devices, trainhighly qualified personnel, and serve as a leadingedgeR&D resource and network centre for industryand university researchers. Completing the innovationequation, the centre will help address theshortage of personnel in photonics through remoteand on-site training, internships and re-skillingprograms.In addition to tying into NRC-IMS strengths and allof NRC’s program, network and knowledgeresources, the centre will be closely connected tothe business and government communities. NRCand Photonics Research Ontario (PRO) signed aMemorandum of Understanding at NRC’s sixthOttawa Regional Innovation Forum in May 2001, topromote collaboration in the areas of photonicsand biophotonics research. The new centre willfocus its initial R&D, design, fabrication and technologytransfer activities around new lasers,photonics integrated circuits, detectors andsensors, chips for wavelength division multiplexingand semiconductor optical amplifiers – technologyfields with enormous growth potential.37C o m m u n i t yS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Manitoba – medical devicesmanufacturing clusterNRC is expanding its R&D program in medicaldevices and software, and building a new R&Dprogram to support opportunities for the manufacturingof medical devices in Winnipeg. As part of38this effort, NRC-IBD will strengthen its R&Dprograms in medical imaging techniques and inmanufacturing – design, precision and virtualmanufacturing centred on materials, imaging,processes and related technologies. All activitieswill be connected via the high-bandwidth Ca3.net,locally, regionally and nationally. The goal is tocreate a national research network for distributedprocessing.NRC-IBD will also open a new IPF to promote thedevelopment of medical diagnostic technologiesmanufacturing. The new facility will house spin-offsfrom NRC and other companies with related manufacturingtechnologies, providing them with accessto business support services, commercializationsupport and linkages to NRC’s R&D, knowledgedissemination and industrial research assistancestrengths. The IPF will also house an industrialworkshop that will support the manufacture oflarge, high-tech products, such as magnetic resonanceimaging devices. The entire clustering effortwill be defined, coordinated and integrated withkey players in the community including Manitobahospitals, universities, local industry and businesspartners, and federal, provincial and localeconomic development organizations.Saskatchewan – crops for enhancedhuman healthNRC began work on a new research program –Crops for Enhanced Human Health – at NRC-PBI inSaskatoon. The world market for these types ofcrops is expanding rapidly – projected growth is onthe order of 10 -15 percent annually. The potentialmarket for Canadian firms is estimated to be worth$1.5 billion within three years. The initiative willalso enable greater participation by rural communitiesin valued-added activities.The program focuses on high-quality crops toproduce functional foods with enhanced humanhealth properties and naturally derived plantcompounds, increasingly called “nutraceuticals.”NRC will support the accelerated growth of acompetitive, Prairies-based nutraceuticals/functionalfood industry based on its research,technology development and transfer, and industrialresearch assistance strengths in the region. Anational “nutraceuticals” technology roadmapexercise, launched in December 2001, will helpidentify promising key technologies and lead to anational-scale action plan for this new field. Inaddition, this new initiative responds to the prioritiesof the Canada-Saskatchewan AgriFoodInnovation Fund. Plants will also be modified toproduce therapeutics and other health products, aprocess called molecular farming.The new program and the related development of anew IPF at NRC-PBI are natural fits given NRC’sexceptional track record in nurturing the developmentof the agro-biotechnology cluster inSaskatoon. A number of government, private sectorand university players are already actively movingthis cluster initiative forward, including WesternEconomic Diversification Canada, the Universitiesof Calgary, Manitoba and Saskatchewan, federaland provincial government agriculture ministries,provincial research organizations, agro-manufacturing/processingcompanies, and the SaskatchewanNutraceutical Network – to name a few.

The NRC Innovation Centre(NRC-IC) in Vancouver is hometo NRC’s National Fuel CellsR&D Program. Work isunderway here to create afull-fledged NRC institute tolead NRC’s fuel cell and fuelcell manufacturing research,technology development andtransfer programs.Alberta – nanotechnology poisedto pay off for CanadaExperts are predicting that the economic impact ofnanotechnology will be in the range of $100 billionannually within the next decade. Market estimatesfor “lab-on-a-chip” – just one application of nanotechnology,but one where Canada is alreadystrong – are estimated to be on the order of$10 billion annually.Through its collaboration with universities andindustry locally, nationally and internationally,the National Institute for Nanotechnology (NINT)will work to stimulate the emergence of newnanotechnology-based industries in Alberta andacross Canada.NRC will be the R&D anchor and provide itscommercialization strengths to nurture the growthof this cluster. The main features of the new instituteinclude:• Access to full NRC research, innovation capacity,knowledge and commercialization networks,programs and services by industry, university andgovernment organizations• A major physical installation and state-of-the-artfacilities, shared by the University of Alberta andNRC• A collaborative R&D program with Canadian andinternational partners focused on major opportunityareas for Canada• A national NRC mandate for molecular andnanoscale science and engineering, technologytransfer and commercialization.NINT, to be located on the campus of the Universityof Alberta, will take approximately three years toconstruct, but the research program has alreadybegun, with researchers working out of existingNRC institute facilities until temporary space isoccupied at the University of Alberta inSeptember 2002.A community Round Table consultation inEdmonton to engage academia, government andbusiness people in defining the key elements forthe cluster development effort is scheduled forearly in the 2002-2003 fiscal year. NRC will use theresults to refine its research program and workwith partners to build a community-based andcommunity-driven action plan.39C o m m u n i t yS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...“Promoting innovation, research and development is a cornerstone ofour government’s agenda. With the creation of this Institute, Canadawill be poised to play a leading role in this exciting new technology –widely considered to rival the impact of the 19th century industrialrevolution. This joint investment is another great example of what canbe accomplished through our Team Canada approach to makingCanada a leader in the new knowledge-based economy.”The Right Honourable Jean ChrétienPRIME MINISTER OF CANADA40British Columbia – fuel cellslighting the wayThe NRC Innovation Centre (NRC-IC) in Vancouveris home to NRC’s National Fuel Cells R&D Program.When funding from the December 2001 federalbudget doubled the NRC-IC budget, work began tocreate a full-fledged NRC institute to lead NRC’sfuel cell and fuel cell manufacturing research, technologydevelopment and transfer programs. NRCwill link its strengths with the province’s fuel cellsleaders, expertise, and networks, and with relatedfuel cell activities nationally, to promote the growthof an environmentally sound, viable fuel cellsindustry in the region and across Canada. This is asignificant opportunity area for Canada – the estimatedvalue of the fuel cells market by 2010 is$100 billion worldwide. British Columbia, site ofthe nation’s most promising emerging cluster offuel cell innovators, is well-positioned to leadCanada’s effort to capture a significant share of thismarket.These developments follow on investments inNRC-IC and in collaborations with government andindustry partners to promote fuel cells R&D andcommercialization activities. For example, NRC-ICis working to complete the construction of ninenew hydrogen-safe fuel cell research laboratories atits Fuel Cell Technology Centre, in partnership withFuel Cells Canada and Western EconomicDiversification Canada, to accommodate growingdemand for hydrogen-safe fuel cell laboratoryspace.The new laboratories will serve many purposes,such as providing space for R&D testing, productdemonstration, and incubator facilities for newcompanies. The labs will also be used to carry outtesting and development of new parts and subsystemsdeveloped either by NRC-IC or as a result ofNRC collaborations. Existing developers of fuel celltechnologies will also have the opportunity to usethe labs to demonstrate their technology forcommercialization of their products.In the coming months, NRC will host a communityRound Table to help define the agenda and actionplans to drive this important local and nationalinnovation initiative.

Global reachAt work on the world stageI n t e r n a t i o n a lSpeed wins in the global knowledge society. Advances invirtually all fields are taking place at breakneck speed.Innovative ideas and technologies originate withindividuals, research networks, centres of excellence andcompanies around the world. For Canada to take fulladvantage of this knowledge, talent and technology in atimely fashion, it is imperative and urgent that Canadianresearchers, universities and companies become integralpartners in the international effort in S&T.41Report of the Expert Panel on Canada’s RoleIn International Science and TechnologyJUNE 2000S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...42Innovation is a global issue, rooted in eachnation's ability to create, exploit and transform newknowledge into the innovative products that cancreate a competitive edge in global markets.Canada’s participation in international S&T is vitalfor the nation to gain access to the S&T knowledgeand information it needs to succeed in the knowledgeeconomy. This global reach improves thequality of knowledge produced by Canadianresearchers. It creates access to the world’s bestS&T facilities, equipment and talent. It providesvital access to the knowledge produced byresearchers in other nations, a necessity for Canadaand Canadian businesses. It opens doors forCanadian firms to access the technology opportunitiesand information they need to remaincompetitive.NRC has created international S&T networks ofstrategic importance for Canada. NRC uses theselinkages and networks, not only to transfer S&Tinformation back to Canadian firms, universitiesand public sector partners, but also to generatenew business opportunities for Canadian SMEs.NRC’s international activities are focused on sevenkey objectives:• Developing/renewing international S&T alliances ofvalue to Canada• Enhancing NRC’s reputation and credibility forleading-edge R&D around the world• Securing access to international R&D programs andfacilities for Canadian researchers• Promoting international standards harmonization• Stimulating foreign direct investment in Canada• Increasing recognition of its role as an effectiveintegrator and facilitator of international researchon behalf of Canada• Improving its S&T foresight and forecasting for newresearch and technology domains.Highlights of NRC’s 2001-2002international workThroughout 2001-2002, NRC continued to buildnetworks, collaborations and strategic alliancesaround the world for Canada through hundreds ofbilateral organization-to-organization and multilevelagreements, technology and researchalliances, as well as over 50 formal collaborationagreements with 22 nations. In 2001-2002, NRCreceived over 180 incoming delegations and ledover 40 formal outgoing missions to other countries,plus numerous other informal internationaloutreach activities. NRC employees sat on 589international committees and attended 646 internationalconferences. NRC also organized105 international conferences and workshops.New and renewed international tiesNRC worked with international partners to renew anumber of agreements and memorandums ofunderstanding (MOUs), continuing access forCanadian scientists to international R&D projects,programs and opportunities.• Canada and Taiwan renewed their MOU on scienceand technology cooperation for another 10 years,expanding areas of collaboration to includenanotechnology. The value of the agreement is$4 million. This MOU continues a strong history ofcollaboration between the NRC and the NationalScience Council of Taiwan. Since 1997, there havebeen 16 co-research projects, 13 workshops andalmost a dozen patents as a result of the MOU.This is the largest corporate collaboration for NRCoutside of North America• On the occasion of the visit to Canada of thePresident of Spain, H.E. José Maria Aznar, NRCsigned a letter of intent with the Consejo Superiorde Investigaciones Cientificas to foster technologicaland scientific cooperation between the twonations. The letter identified several cooperationareas to be explored in four scientific workshops:innovation policy and technology transfer, biotechnology,microelectronics/telecommunications andmarine research. Two of the workshops were held in2001-2002, one in each country• NRC and the British Council renewed their MOUfor the Joint Science and Technology Fund thatprovides financial support for collaborative

esearch between NRC and British laboratoriesin strategic areas of mutual interest, includingadvanced materials, biotechnology and communicationstechnologies. It also supports theexchange of students and staff working in mutualresearch areas through Researcher ExchangeAwards. Seven new cooperative research projectawards were approved, worth some $1.4 million.Some $2.5 million has been awarded to dateunder the MOU• To celebrate the 30th anniversary of the Canada-Germany S&T Agreement, NRC signed an MOU withGermany’s Hermann von Helmholtz Association ofNational Research Centres. The MOU established ajoint fund of $1.5 million per year over the nextthree years to conduct-leading edge collaborativeresearch projects.• NRC and the Centre national de la recherchescientifique of France (CNRS) renewed their MOUfor an additional five years until 2006. ThisAgreement promotes research collaboration infields of science and technology. Since 1998, thisagreement has financially supported ten suchcollaborative projects in the following sectors:biotechnology (3), manufacturing technologies (1),information technologies and telecommunications(2), and molecular sciences (4)NRC: 2001-2002Access to international S&T for Canada• NRC-United Kingdom – seven R&D projects• NRC-France – 16 R&D and standards development projects• NRC-European Union framework programs – five FP5 projects• NRC-European Union member states – over 170 projects• NRC-European Union – seven ongoing projects, workshops,conferences, and networks – such as the Canadian-EuropeanResearch Initiative on Nanostructures (CERION)• NRC-Spain – two workshops• NRC-Taiwan – 18 R&D projects, missions/visits, workshopsand exchanges• NRC-Singapore – eight R&D projects, training & exchanges• NRC-Thailand – missions, exchanges/training & R&D• NRC-Japan – 10 R&D projects• NRC-People’s Republic of China – 10 missions/visits fromhigh-ranking officials, exchanges & several R&D projects• NRC – access to worldwide astronomyfacilities/projects/agreements for Canada’s astronomers• NRC-CISTI, NRC-INMS – dozens of collaborativeagreements/MOUs• NRC-IRAP – missions/visits/competitive intelligence forCanadian SMEsInternational R&D collaborations –benefits across the boardInternational R&D collaborations benefit partnernations through new knowledge, new technologies,new business opportunities and improved qualityof life, as some 2001-2002 highlights from NRC’slong-term collaboration with Taiwan’s NationalScience Council (NSC) demonstrate:• The development of copper source reagents forthe production of copper containing thin filmswith applications in micro-electronics and hightemperaturesuperconducting ceramics has resultedin a U.S. patent for the technology and filingfor a patent under the Patent Cooperation Treaty• Development of a method to model and simulatewhat happens when light aircraft collide withairport lighting towers, which will lead to improvedsafety through the design and construction oflighting towers that cause minimal damage toaircraft in the event of a collision43I n t e r n a t i o n a lS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...• Significant advances for the industrial applicationof quantum dots through techniques developed toplace quantum dots at a variety of pre-determinedsites across a semi-conductor substrate. Theproject also developed a technique for growingquantum antidots – potentially useful for nanoelectronicdevices.Access to the world’s knowledgeand informationNRC-CISTI has developed a number of resourcepartnerships providing access for Canadian researchersto the information resources of other majorS&T libraries around the world. In 2001-2002, themajor agreements included: the British DocumentSupply Centre, l’Institut de l’informationScientifique et Technique (INST – France), KoreaInstitute for Science and Technology Information,the Institute of Scientific and Technical Information(China), Sunmedia of Japan, and the Science andTechnology Information Centre (Taiwan).NRC-CISTI also designed the Web site of theTechnology Foresight Network (TFN) of the APECCentre for Technology Foresight, launched inSeptember 2001 in Bangkok, Thailand. The TFN willuse this site to provide information to technologyforesight professionals in APEC economies andglobally, as well as to provide access to a variety ofresources that will help build bridges amongpartners – key tools for innovation and competitivenessin the global economy.44New markets for Canadian Tsuga in JapanCanadian Tsuga, also known as Hem-Fir in Japan, is one of the strongestcommercially available softwood lumber products in the world today. InCanada, Tsuga carries a certified E-120 grade – proof of the wood’s superiorstrength and stiffness. In October 2001, the Japanese Ministry of Land,Infrastructure and Transport confirmed that Canadian Tsuga was fully acceptedfor post-and-beam house construction under the Japanese Building StandardLaw. Japan also assigned design values specifically for Canadian Hem-Firproducts – meaning that Canadian exporters can differentiate Canadianhemlock from that of other countries. This is the first time that Japan hasaccepted a foreign grading for their traditional lumber products. Japan’s acceptanceof the Canadian E -120 standard came, in no small part, because of thedirect involvement and support of NRC-IRC’s Canadian Construction MaterialsCentre for the E-120 certification.Measurement comparisonsstand up to scrutinyThe importance of metrology in international tradehas increased greatly over the past decade.International trade agreements now demanddemonstrated equivalence between the metrologystandards of buyer and seller nations. NRC-IMNS,as Canada’s national metrology authority, representsCanada in measurement comparisons withother nations as part of the Mutual RecognitionArrangement of the Comité international des poidset mesures (CIPM).NRC participated in some 35 such comparisons in2001-2002, as well as in the comprehensive internationalreview process that takes place following thecompletion of comparisons. As a result, NRC’s calibrationand measurement capabilities in acoustics,ultrasound and vibration, photometry and radiometry,and chemical metrology were added to theCIPM database. Canada’s standards are now recognizedby all of our major trading partners, helpingremove technical barriers to international trade andincrease exports.International opportunities for SMEsIn 2001-2002, NRC-IRAP undertook a number oftechnology missions to Taiwan, Thailand, China,Korea and Hong Kong, including participation inthe Team Canada mission to Germany. By the endof the fiscal year, the 53 SMEs involved in themissions had signed 8 MOUs, 7 contracts, and 41partnership agreements. NRC-IRAP also undertooka series of exploratory missions to Asia, Hungary,Mexico and the United States, and participated inseveral missions organized by the Department of

Foreign Affairs (e.g. the composite materialsmission to France) as well as individual provincialmissions.In addition to technology missions, NRC signedor extended a number of key internationalarrangements:• A new agreement was signed with the China-UnitedNations Industrial Development Organization toassist technology transfer and technologicallinkages between Canadian and Chinese SMEs• NRC-IRAP’s support to Intelligent ManufacturingSystems Canada in its work with seven internationalregions on collaborative R&D was extended,with several collaborative projects under developmentinvolving NRC institutes• The agreement with the Canada-Israel IndustrialR&D Foundation was extended to facilitate linkagesbetween Canadian and Israeli SMEs and institutionsNRC – science lends helping hand• The agreement for exchanges of NRC’s IndustrialTechnology Advisors with the Agence national devalorisation de la recherche of France was extendedto investigate best practices and stimulate linkageswith SMEs from both nations• An agreement was signed with Thailand’s NationalScience and Technology Development Agency todevelop its Industrial Research Assistance Program,modelled after NRC-IRAP.• NRC-IRAP also led a mission with 14 CanadianSMEs to the APEC Technomart in Suzhou China toform technology-based joint ventures and seek outnew research collaborations. NRC made sevenpresentations during the Technomart and organizeda major exhibit at the technology fair for the event.Firms signed a number of new agreements.I n t e r n a t i o n a lNRC conducts R&D in areas such as marinebiosciences and seafood safety, medical diagnosticsand devices, agricultural and pharmaceuticalbiotechnologies, construction codesand materials standards for buildings andinfrastructure, aerospace and metrology – allare vital to ensuring public health and safety,not only for Canadians, but for people aroundthe world. In 2001-2002, NRC continued thistradition of “R&D for the public good” througha number of international R&D efforts.45Improving marine toxin andreference standardsNRC-IMB is leading an international team ofscientists from Canada, Australia, NewZealand, Taiwan, Singapore, Japan and theUnited States on a three-year APEC project todevelop and validate new analytical methodsand produce new marine toxin standards andreference materials. For the millions of people inthe Pacific region dependent on seafood for theirlivelihood, and as their main source of protein,the project will have life-saving impacts.S C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...46Puffer fish poisonings solvedAnalytical chemists at NRC-IMB successfully identifiedsaxitoxin as the causative agent in near fatalpoisonings in the United States associated witheating Atlantic Puffer fish, a species never previouslyassociated with toxicity. Apart from therapid resolution of the poisoning mystery, thisexpert research in marine toxins has resulted inincreased awareness of a potential new source ofseafood poisoning.Helping identify the victims of theWorld Trade Center attackIn the aftermath of the September 11 attack onthe World Trade Center, health officials in NewYork City were faced with the unprecedented challengeof identifying the thousands who died whenthe twin towers collapsed. American firm GeneCodes Corporation, a leading company in thecreation of DNA sequencing software and databases,was chosen for the task. Gene CodesForensics, a wholly owned subsidiary of GeneCodes Corporation, was created for the solepurpose of handling the specific needs of thisproject.To help manage the tremendous amount of datagenerated by the project, Gene Codes recruitedthe leader of NRC’s Canadian BioinformaticsResource specifically for his world-leading expertisein genetic database management. UsingNRC’s expertise, new software was created thatcould rapidly catalogue, search, and compare vastamounts and different types of genetic information,with the ultimate goal of identifying victims.By using different DNA sequencing techniques, aunique DNA signature could be developed foreach victim and compared to samples taken froma missing person’s personal effects, such as atoothbrush or hairbrush. The software was thefirst of its kind able to handle such a vast array ofinformation and data with the goal of identifyingthe victims as quickly as possible.As the world came to terms withthe September 11 tragedy, a teamof experts was called upon toinvestigate and report on theperformance of the affected buildingsin the vicinity of Ground Zero.Among them was an NRC expertin building performance – the onlymember from outside the U.S.invited to join the study.

Talent for CanadaPC ae po ap cl iet ySkills and learning are the foundations ofCanada’s Innovation Strategy. It is our knowledgeand skills that lead to new concepts and originalproducts and services. This strategy is aboutequipping all Canadians with the tools they needto participate in Canada’s workplace… Theirknowledge is now the currency of our economy andthe factor that will ensure our continued socialdevelopment.47The Honourable Jane StewartMINISTER, HUMAN RESOURCESDEVELOPMENT CANADAS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC is committed to helping buildthe critical mass of skilled, knowledgeablepeople that are thefoundation of Canada’s future. NRC’scontributions take many forms acrossthe country, from student programsand youth outreach activities toguest worker and expert resourceexchanges with other S&T organizationsaround the world.48Outstanding people – outstanding employerGreat people. Great minds. It’s that simple. NRC’ssuccess on behalf of Canada lies with the nearly4,000 dedicated, knowledgeable, creative andtalented men and women that give the organizationlife. Over NRC’s 85-year history, its people haveearned an international reputation for excellence inleading-edge research and innovation – they haveearned the highest regard of peers, colleagues andcollaborators in a wide range of science and engineeringdomains.In 2000-2001, NRC launched its EmploymentPhilosophy – its commitment to NRC staff andCanadians to being an outstanding employer ofoutstanding people – as a cornerstone of Vision2006. In 2001-2002, NRC undertook a pilot surveyacross a number of its programs and institutes todefine, with staff, the roadmap for living up to theprinciples of the Philosophy. The findings from thispilot phase will be used to refine the survey and,following its completion in 2002, to put thefindings into action.

Guest workersNRC institutes, technology and innovationcentres engaged more than 1,206 guest workersfrom Canadian and foreign universities, companiesand public and private sector organizations.Not only does NRC benefit from the participationof these skilled workers in collaborative projects,their home organizations gain equally from thetraining provided and the transfer of knowledgeand know-how from NRC.NRC guest workers1,000 1,050 1,100 1,1501997-19981,2001,2501998-19991999-20002000-20012001-2002Total guest workersContributing to Canada’s skilledworkforceThe demands of the knowledge-based economycreate an ever-growing need for a well-educatedand skilled workforce in all parts of the economyand the country. NRC helps build this workforce,not only through its own recruitment and trainingactivities, but also through support of programs ofother government agencies and universities – inCanada and internationally.Supporting federal YouthEmployment InitiativesTo help SMEs meet their needs for highly qualifiedpersonnel, NRC-IRAP manages two youth internshipprograms on behalf of Human ResourcesDevelopment Canada. In 2001-2002, a total of550 graduates were placed in 460 SMEs acrossCanada. Total contributions to firms amounted to$3.95 million. Of these contributions, more than$3.86 million was invested in the Science andTechnology Internships Program supporting 541recent graduates working in 455 firms. The remainingcontributions were invested in the ScienceCollaborative Research Internships Program tosupport nine graduates in collaborative projectswith SMEs in British Columbia, Manitoba andOntario.NRC-IRAP youth employment initiativesRegional investments from 1999 - 2002($ millions)BC/YTAB/NU/NTPRONQCMARNF/LB0 0.5 1 1.5 2 2.51999-2000 2000-2001 2001-200249P e o p l eS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...Training to meet Canada’s needfor a specialized workforceThe creation of new technologies requires a workforcethat has the knowledge to properly use them.To give future graduates advanced industryorientedskills, NRC-IMI has signed an agreementwith six educational institutions in three provinces.The agreement will allow NRC to transfer its technologyexpertise and achievements in a structuredenvironment that will help students build skills andgain relevant practical experience. The universitypartners include McGill University, ÉcolePolytechnique, Université Laval, the University ofWindsor, the University of New Brunswick, andAhuntsic College. The activities will focus on theuse of process modelling and simulations softwaredeveloped at NRC-IMI, within the framework oftraining programs for engineers and technicalofficers at the six institutions.New graduate bio-based curriculumNRC-BRI is collaborating with Oklahoma StateUniversity in the development of a new studentinternship program that will be part of its “BiobasedProducts Graduate Program” scheduled tostart in the fall of 2002. The university’s researchprogram is focused on developing bio-based technologiesfor converting agricultural raw materialsinto various chemical feedstocks. Students willwork in multi-disciplinary teams to become familiarwith bio-based or bioconversion research involvedwith these technologies. The U.S. Department ofEnergy, recognizing the expected energy shortageand the need for alternatives, such as the use ofbiomass to produce energy, will fund the trainees.NRC-BRI will welcome a number of the trainees onan annual basis to provide hands-on experience.50Student and youth outreachIn 2001-2002, NRC student programs provideddirect, hands-on training and development work forsome 781 graduate, co-op and summer students,and approximately 222 post-doctoral fellows(PDFs). As an ongoing program, NRC and theUniversity of Ottawa also hosted four high schoolstudents from Taiwan on six-week summer workassignments. NRC also continued its Women inEngineering and Science (WES) Program to helpencourage talented female students to pursueprofessional careers in engineering and science.Helping young Canadians reachtheir potentialA strong science culture is a keystone of Canada’sinnovation system. Young Canadians, in particular,need to understand and see the benefits oflearning science and engineering for their futurecareers and adult lives. In addition to direct experience,employment and training opportunities, NRCworks to interest young Canadians in careers inscience and technology through a variety of activitiesin communities across Canada, including visitprograms for schools (and their teachers), scienceand engineering challenges, and science promotionactivities, such as the publication of scienceresource materials.PDFs and RAs100 150 2001997-19981998-19991999-20002000-20012001-2002250Total research assistantsTotal post-doctoral fellows (NSERC visiting fellows)

NRC student programs1997-19981998-19991999-20002000-20012001-20020 100 200 300 400 500Total supervised grad studentsTotal non-grad co-op studentsTotal women in engineering and science (WES)Promoting science, technology,engineering and mathNRC significantly increased its national distributionof science promotion materials to young people in2001-2002, sending over 114,000 bilingual NRCscience resources, including Periodic Table materialsand Canadian Skies posters, to schools andindividuals across Canada. In addition, NRCcontributed a direct insert to SchoolNet magazineand promoted these resources with teachers,provincial education ministries, resource centresand school boards across Canada. Materials werealso made available on the Internet – includingSchoolNet and the Ontario Ministry of Education,Science and Technology portal site for teachers andstudents (OYSTER).Science challenges and competitionsNRC continued its support for the NationalEngineering Week and Engineering Challenge forelementary students – an NRC initiative. TheEngineering Challenge puts engineers in the classroomwith elementary teachers to engage studentteams in a problem-solving activity linked to thescience curriculum. In 2002, the challenge for gradefive students was to design and construct a rubberband-poweredcar.NRC also maintained its support for the AventisBiotech Challenge offering high school studentsthe opportunity to explore the science of biotechnology,through science projects in moleculargenetics, microbiology, biomaterials, environmentalbiotechnology and other applications. In a similarvein, NRC provided national support to CanadianNational Marsville – the cross-Canada spacescience and astronomy program that offers grades6-8 students the chance to explore the Mars environmentand create life-support systems suited tothe red planet.“Centre of the Universe” opensin VictoriaA special dimension was added to the nationalastronomy education and science promotion landscapein 2001 when NRC-HIA opened its multifacetedvisitor’s centre in Victoria B.C. Called TheCentre of the Universe, the facility focuses on thecelebration of Canadian astronomy and its proximityto NRC’s historic Dominion AstronomicalObservatory. The centre supports efforts to promoteCanadian astronomy and achievements in allregions, in collaboration with other agencies,universities and organizations. Visitors have alreadycome to the new facility from all Canadianprovinces, 21 U.S. states, and 27 countries on6 continents.Creativity – connecting thearts and sciencesPromoting science and its role in modern life andsociety was at the core of the Millennium Conferenceson Creativity in the Arts and Sciences – aunique collaboration between NRC, The CanadaCouncil for the Arts and the National Arts Centre(NAC). The conferences grew to include many ofCanada’s leading S&T organizations as well asinternational partners. The celebration of theconnection between the arts and sciences continuedin 2001-2002 with the publication ofRenaissance II: Canadian Creativity in the Arts andSciences – Innovation in the New Millennium. NRCalso signed MOUs with the NAC to explore distancelearning using the promise of broadband technologiesand with the Canada Council for the Arts for anArtist in Residence (AIRes) Program at NRC. Thisprogram will see artists working hand-in-hand inNRC labs with researchers to open new channels ofcommunications and break down barriers betweenthe professions of scientists and artists.An engineering team from Montréal’s École de technologiesupérieure conducted underwater tests at NRC’s CanadianHydraulics Centre in Ottawa of their human-poweredsubmarine. The team went on to win with the fastest subat the 6th International Submarine Races.51P e o p l eS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...STATEMENT OF OPERATIONSBY ORGANIZATIONFor the year ending March 31, 2001( DOLLARS ARE IN THOUSANDS)FY 2000/2001Organization Expenditures 1 IncomeResearch Institutes $357,597 $63,991Industrial Research Assistance Program 2 145,299 28,215Scientific and Technical Information 45,738 24,125Technology Centres 11,905 14,40052Corporate Branches 94,139 3 4,605Total $654,678 $134,336For the year ending March 31, 2002( DOLLARS ARE IN THOUSANDS)FY 2001/2002Organization Expenditures 1 IncomeResearch Institutes $415,250 $72,927Industrial Research Assistance Program 2 152,096 32,585Scientific and Technical Information 46,292 27,604Technology Centres 17,207 14,796Corporate Branches 90,301 3 5,374Total $721,146 $153,286(1) Expenditures shown above include both appropriation and income-based expenditures.(2) Includes amounts received and expended under IRAP/Technology Partnership CanadaPre-Commercialization program (2000-2001, $27.381M; 2001-2002, $31.743M).(3) Expenditures include construction projects for research institutes managed centrally.

NRC council membersDr. Wayne CliftonDr. André GosselinDr. Jacques-Yves GuignéMr. David HallidayMr. Peter HarderDr. Clarke HenryDr. Ross McCurdyMrs. Pascale MichaudMr. Gilles OuimetDr. Louise ProulxPresident, Clifton Associates, Regina, SaskatchewanAssociate ProfessorCentre de recherche en horticultureUniversité Laval, Ste-Foy, QuébecChief Executive Officer, Guigné InternationalLimited, Paradise, NewfoundlandVice president, AMEC Dynamic Structures LimitedPort Coquitlam, British ColumbiaDeputy MinisterIndustry Canada, Ottawa, OntarioManager of Research, Products and ChemicalsDivision, Imperial Oil, Sarnia, OntarioChief Executive OfficerInNOVAcorp, Dartmouth, Nova ScotiaConsultantMcKinsey & Company, Montréal, QuébecPresident and Director GeneralPratt & Whitney Canada, Longueuil, QuébecVice-Principal (Research)McGill University, Montréal, QuébecGoverning council & officersNational Research Council CanadaMarch 31, 2002W o r k i n g f o r C a n a d aDr. René RacineDr. Patricia ShewenDr. David F. StrongMs. Kim SturgessDr. Eva A. TurleyProffesor Emeritus, Physics DepartmentUniversité de Montréal, Montréal, QuébecChair, Department of PathobiologyUniversity of Guelph, Guelph, OntarioVictoria, British ColumbiaPresident and Chair, Engineered Diamonds Inc.Calgary, AlbertaSenior Scientist, London RegionalCancer Centre, London, Ontario53NRC Executive officersDr. Arthur J. CartyMs. Patricia MortimerDr. Peter A. HackettMr. Jacques LyrettePresident (and Chair of Council)A/Secretary GeneralVice-President, ResearchVice-President, Technologyand Industry SupportS C I E N C E A T W O R K F O R C A N A D A

N R C – F R O M D I S C O V E R Y T O I N N O V A T I O N...NRC-BRI NRC Biotechnology Research Institute . . . . . . . . . . . . . . . . . . . . . . .Montréal: (514) 496-6100NRC-CISTINRC Canada Institute for Scientific andTechnical Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Canada and U.S.: 1-800-668 1222outside North America: 613-998-8544NRC-HIA NRC Herzberg Institute of Astrophysics . . . . . . . . . . . . . . . . . . . . . . . .Victoria: (250) 363-0001Penticton: (250) 493-2277NRC-IAR NRC Institute for Aerospace Research . . . . . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 991-5738NRC-IBD NRC Institute for Biodiagnostics . . . . . . . . . . . . . . . . . . . . . . . . . . . .Winnipeg: (204) 983-7692Calgary: (403) 221-3221NRC-IBS NRC Institute for Biological Sciences . . . . . . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 993-5975NRC-ICPETNRC Institute for Chemical Process andEnvironmental Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 993-3692NRC-IIT NRC Institute for Information Technology . . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 993-3320Fredericton: (506) 451-2674Moncton: (506) 851-3607Saint John: (506) 636-4775Sydney: (902) 564-6481NRC-IMB NRC Institute for Marine Biosciences . . . . . . . . . . . . . . . . . . . . . . . . . .Halifax: (902) 426-833254NRC-IMD NRC Institute for Marine Dynamics . . . . . . . . . . . . . . . . . . . . . . . . . .St. John’s: (709) 772-2479NRC-IMI NRC Industrial Materials Institute . . . . . . . . . . . . . . . . . . . . . . . .Boucherville: (450) 641-5000NRC institutes /programsNRC-IMS NRC Institute for Microstructural Sciences . . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 993-4583NRC-IMTI NRC Integrated Manufacturing Technologies Institute . . . . . . . . . . . .London: (519) 430-7079NRC-INMS NRC Institute for National Measurement Standards . . . . . . . . . . . . . .Ottawa: (613) 993-7666NRC-IRAP NRC Industrial Research Assistance Program . . . . . . . . . . . .(across Canada): 1-877-994-4727NRC-IRC NRC Institute for Research in Construction . . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 993-2607NRC-PBI NRC Plant Biotechnology Institute . . . . . . . . . . . . . . . . . . . . . . . . .Saskatoon: (306) 975-5571NRC-SIMS NRC Steacie Institute for Molecular Sciences . . . . . . . . . . . . . . . . . . . .Ottawa: (613) 990-0970Chalk River: 1-888-243-2634NRC-IC NRC Innovation Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Vancouver: (604) 221-3011NINT National Institute for Nanotechnology . . . . . . . . . . . . . . . . . . . . . .Edmonton: (780) 492-8636NRC Technology CentresNRC-CHC NRC Canadian Hydraulics Centre (Ottawa) . . . . . . . . . . . . . . . . . . . . . . . . . . . .(613) 993-9381NRC-CHCNRC Thermal Technology Centre (Ottawa)NRC-CSTT NRC Centre for Surface Transportation Technology (Ottawa and Vancouver) . .(613)998-9639For more information visit our Web site at: www.nrc-cnrc.gc.caor contact NRC at: 1-877-672-2672Graphic design: Consult Ink. Limited