Archived — Departmental Performance Report 2012–13

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Section II: Analysis of Programs and Sub-Programs by Strategic Outcome


Strategic Outcome

A Competitive Southern Ontario Economy

As the operating environment for FedDev Ontario continues to evolve, the focus remains on mitigating the challenges of a complex global marketplace by capitalizing on the region's assets, which include: a well-educated and diverse population; an excellent network of higher learning institutions; a business-friendly environment; a vibrant small business community; key economic clusters; and close proximity and access to the United States and international markets.

FedDev Ontario has worked to build upon these regional assets to help improve the competitiveness of the southern Ontario economy. The Agency did this by focusing its efforts in 2012–13 on the following three external-facing program areas: Technological Innovation; Business Development; and Community Economic Development. Through these programs, the Agency has provided funding and services to individuals, businesses, communities, and other key stakeholders across southern Ontario and strengthened its profile as a viable partner in economic development.

Note: Planned spending and FTE information at the Sub-Program level was not captured in the 2012–13 fiscal year as it was not previously required by the Treasury Board Secretariat.

Program 1.1: Technological Innovation

Description:
This program is intended to support the southern Ontario economy to become more innovative by creating new products, services, processes and/or markets so as to contribute to the region's competitiveness. This will be achieved by: encouraging the region's employers and companies to be more innovative; focusing on key emerging sectors; and by strengthening linkages between the region's businesses (especially SMEs) and its post-secondary institutions. These are the elements necessary to improve the region's productivity, accelerate growth, and maintain and enhance the region's living standards in the context of a globally innovative economy. Transfer payments in support of this program are made through a variety of initiatives under the authority of SODP, through the administration of contribution agreements with businesses, not-for-profit organizations and post-secondary institutions.

Financial Resources ($ millions)Footnote 5
Total Budgetary
Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(Available for Use)
2012–13
Actual Spending
(Authorities Used)
2012–13
Difference
2012–13
51.0 51.0 56.7 56.6 (5.6)
Human Resources (FTEs)Footnote 6
Planned
2012–13
Actual
2012–13
Difference
2012–13
30 42.7 (12.7)
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario has a strong innovative economy Increase in the number of employees in southern Ontario that are considered "highly skilled and qualified personnel"
Footnote a  Footnote b
74,300 people 76,700 people
Increase in the amount of investment in research and development by Ontario businesses A lesser rate of decline in business-performed research and development than has been the average in recent years (i.e. a figure less than, -$279 million in 2002 constant dollars), or positive growthFootnote 7 -$414 million (2002 constant dollars)

Footnotes

Footnote a

Data for this indicator is based on the nine economic regions identified by Statistics Canada that make up southern Ontario. These regions align with 37 census divisions identified as part of the Agency's mandate, with the exception of the census division of Muskoka, which is included in one of the nine economic regions.

Return to footnote a referrer

Footnote b

"Highly skilled and qualified personnel," is defined by Statistics Canada as, "individuals with university degrees at the bachelors' level and above." [Michael McKenzie (Statistics Canada), "A Profile of Highly Qualified People," Innovation Analysis Bulletin, Vol. 9 № 2, October 9, 2007.]

Return to footnote b referrer

Performance Analysis and Lessons Learned

In 2012–13, the Technological Innovation program worked to achieve its expected result of a strong, innovative southern Ontario economy through the following initiatives: Youth in Science, Technology, Engineering, and Mathematics (Y-STEM), Graduate Enterprise Internship (GEI), Scientists and Engineers in Business (SEB), Applied Research and Commercialization initiative (ARC) and Technology Development Program (TDP). These initiatives aligned with the three sub-programs below to support science, technology, engineering and mathematics (STEM) related interest and activities; develop entrepreneurial and business skills; and increase the regional focus on developing and commercializing innovative technologies. Through non-repayable contributions to not-for-profit organizations and post-secondary institutions, this program was able to help further the knowledge base of the region's workforce in 2012–13 and supported investment in research and development. Specific results related to SOA initiatives are highlighted in the following sub-programs.

Sub-Program 1.1.1: Science, Technology, Engineering, and Mathematics Awareness

Description:
This sub-program provides non-repayable contributions to not-for-profit organizations to deliver programs aimed at encouraging young people from Kindergarten to Grade 12 to pursue STEM education and careers. In the process, it also aims at developing the STEM employment pool and improving young people's knowledge of the business of science. This sub-program is necessary as many employers in STEM-related fields are reporting current or anticipated skill shortages. STEM graduates are not only needed to fill future job vacancies, they are a prerequisite for a more innovative and productive economy.

Financial Resources ($ millions)Footnote 8
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 4.9 n/a
Human Resources (FTEs)Footnote 9
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 1.8 n/a
Performance Results
Expected Results Performance Indicators Targets Actual Results
More children and youth in southern Ontario are aware of STEM-related fields of study and/or careers Increase in the number of children/youth enrolled in Agency-supported STEM awareness programs 150,000 950,637

Performance Analysis and Lessons Learned

In 2012–13, FedDev Ontario's Y-STEM initiative invested in projects with the broadest reach and greatest potential to promote an improved STEM knowledge-base in southern Ontario to address both current and anticipated skill shortages in STEM-related fields. Priority was also given to projects that included student exposure to entrepreneurship in support of the continued development of highly qualified personnel and business leaders of the future. One such partnership was a $995,000 project with the Institute for Competitiveness and Prosperity to work with Actua (a not-for-profit post-secondary network) and the Rotman School of Management. Unlike other Y-STEM projects, this project focused on the innovative entrepreneur by cultivating a mindset geared to user-centred design, ideation and prototyping, enterprise creation, development and growth.

While the Y-STEM initiative's full impact on participants' pursuit of studies and careers in STEM fields may not be felt for many years, the Agency's investment has already had a direct impact on young people across southern Ontario. In 2012–13, there were 950,637 participants in STEM-enrichment programs as a result of FedDev Ontario's $13.7 million investment. The Agency also partnered with three additional, not-for-profit organizations that are providing southern Ontario's children and youth with opportunities to discover exciting STEM opportunities.

Sub-Program 1.1.2: Skills Development

Description:
This sub-program provides non-repayable contributions to not-for-profit organizations and post-secondary institutions for the delivery of programs aimed at providing STEM graduate students and recent graduates with business experience to complement their technical skills and the funding they need to commercialize their innovations. This is achieved through the creation of programs that offer internships in SMEs, commercialization fellowships at universities, and seed financing to help STEM entrepreneurs access the capital they need to bring their innovative ideas to market. This sub-program is necessary not only to help meet future labour/skills shortages in the STEM field, but also to help build a vibrant and innovative workforce capable of meeting future challenges in a global, knowledge-based economy.

Financial Resources ($ millions)Footnote 10
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 13.5 n/a
Human Resources (FTEs)Footnote 11
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 1.7 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario STEM graduates and graduate students have the business skills to work in STEM-related areas of employment Number of STEM graduates and graduate students participating in internships or commercial fellowships as a result of Agency funding 100 714
Number of STEM graduate students/recent graduates who have participated in business skills training funded by the Agency who are subsequently employed or self-employed in STEM-related fields 50 259

Performance Analysis and Lessons Learned

FedDev Ontario provided funding through its GEI initiative to support STEM graduates with internships involving structured mentoring opportunities in SMEs across southern Ontario. The internships assisted participants to develop business and management skills and enabled SMEs to benefit from the technical knowledge of the interns. Priority was given to industrial internships that promoted increased productivity while helping to address the anticipated labour impact and/or skill shortages. For 2012–13, 649 interns were placed in SMEs and are contributing their STEM expertise to southern Ontario enterprises, while gaining skills that will potentially result in full-time, high-quality positions in technology and innovation businesses. Of the 649 internship placements created, 289 have been completed.

The SEB initiative also contributed to results of this sub-program as it promoted the development of the next generation of entrepreneurs by assisting graduate students in STEM fields to access the support necessary to bring their innovative ideas to market. SEB established four new partnerships with not-for-profit organizations and post-secondary institutions that invested in commercializing the ideas of these STEM graduates and graduate students. A total of 259 STEM graduates have received assistance overall, including 65 commercialization fellows. Through targeted investments in regional innovation centres, post-secondary institutions and CFDCs, this initiative is helping to launch innovative start-up companies and promote an innovation-based economy.

Sub-Program 1.1.3: Technology Development and Commercialization

Description:
This sub-program provides non-repayable contributions to established not-for-profit corporations and/or post-secondary institutions to help support the commercialization of new products. This is achieved through funding collaborative ventures, which bring together and leverage the skill sets of various economic players to bring innovative ideas to market. This sub-program is key, given one of the main challenges facing the southern Ontario economy has been that many innovations are never commercialized. As a result, there is a real need to encourage collaboration so that post-secondary institutions, businesses (especially SMEs), and not-for-profit corporations can leverage their knowledge and skills to bring innovations to market faster and help the southern Ontario and Canadian economies be more globally competitive.

Financial Resources ($ millions)Footnote 12
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 35.0 n/a
Human Resources (FTEs)Footnote 13
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 6.1 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario businesses are able to bring innovative ideas to market Number of organizations able to advance their innovations closer to market (e.g., product and applied research, engineering design, product design) 5 297Footnote 14
Ratio of collaborations leveraged per project 2:1 12:1

Performance Analysis and Lessons Learned

Southern Ontario's continued recovery from the economic downturn depends on the region's technological progress within the global economy. SMEs across southern Ontario must invest in technology, innovation and business strategies geared to the demands of an increasingly competitive, global marketplace. Colleges and universities can assist businesses to undertake applied research, technology development, piloting, and demonstration activities.

In December 2011, FedDev Ontario extended its ARC pilot initiative, which leverages the applied research expertise of post-secondary institutions, to support SMEs addressing commercialization and productivity challenges. In 2012–13, 23 southern Ontario colleges and universities received funding to support 270 new collaborations with SMEs, which leveraged more than $14.8 million in private investments.

While the first phase of the ARC initiative was successful in encouraging greater collaboration and partnerships between post-secondary institutions and SMEs, some areas in the region (predominantly rural communities without local post-secondary institutions) did not benefit from ARC funding. As part of the extension, post-secondary institutions were encouraged to target new regions of Ontario. The number of census divisions in southern Ontario that were home to ARC-funded projects increased from 20 in the first intake to 28 in the extension phase.

Through the TDP initiative, the Agency encouraged private sector, post-secondary institutions and not-for-profit organizations to work together to accelerate the development of large-scale, advanced technologies that would result in significant new market opportunities for southern Ontario businesses. Through this initiative, FedDev Ontario invested in six significant collaborations targeted to the following key sectors: water, health, information and communication technology, and environmental technology. These six projects, to be completed by March 2014, have established more than 65 new partnerships, leveraged almost $55 million in private investment, created or maintained more than 225 jobs, and resulted in the ongoing development of 24 new innovations with commercialization potential. TDP projects involve international partners that will position southern Ontario as a global leader in the sectors they address.

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Program 1.2: Business Development

Description:
This program supports the 360,000 businesses (especially SMEs) in southern Ontario in their efforts to drive competitiveness by providing funding for the creation of start-up companies, helping existing businesses expand and helping companies improve their productivity. Transfer payments in support of this program are made through a variety of SOA initiatives under the authority of SODP through the administration of contribution agreements with businesses, not-for-profit organizations and post-secondary institutions.

Financial Resources ($ millions)Footnote 15
Total Budgetary
Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(Available for Use)
2012–13
Actual Spending
(Authorities Used)
2012–13
Difference
2012–13
118.5 118.5 131.6 131.5 (13)
Human Resources (FTEs)Footnote 16
Planned
2012–13
Actual
2012–13
Difference
2012–13
31 24.8 6.2
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario businesses are able to respond to future economic challenges Business investment in machinery and equipment in OntarioFootnote 17 $32.2 billion (annual dollars)Footnote 18 $31.4 billion (annual dollars)
Increase in real hourly wages in OntarioFootnote 19 $0.14 (2002 constant dollars) $0.13 (2002 constant dollars)
Increase in labour productivity in Ontario businesses 1 percent (year over year growth) 0.2 percent (year over year growth)

Performance Analysis and Lessons Learned

In 2012–13, the Business Development program worked to support greater flexibility among southern Ontario businesses to be better able to respond to future economic challenges. The Investing in Business Innovation (IBI) initiative provided funding for these efforts through contribution agreements with businesses and angel investor networks to accelerate commercialization and attract and leverage third party investment for the SME community.

The Prosperity Initiative (PI) also supported results for this program as it continued to encourage businesses, not-for-profit organizations and post-secondary institutions to undertake projects that would result in a more productive, diversified and competitive economy in the region.

In 2012–13 the Business Development program was effective in meeting its target for investment in machinery and equipment in Ontario. IBI and PI activities will continue to support this progress, as well as work to elevate the real hourly wages in southern Ontario and increase labour productivity in Ontario.

Sub-Program 1.2.1: Business Investment

Description:
This sub-program provides repayable and non-repayable contributions or seed financing to start-up businesses to accelerate the commercialization of new products, processes and practices by leveraging private sector investment. This sub-program is necessary because one of the largest challenges to the southern Ontario economy is the lack of access to capital by start-ups to help commercialize their ideas, particularly since the economic downturn. To remain competitive and a leader in the knowledge-based economy, southern Ontario entrepreneurs need to have access to capital to help commercialize their ideas.

Financial Resources ($ millions)Footnote 20
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 26.6 n/a
Human Resources (FTEs)Footnote 21
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 7.3 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario entrepreneurs have access to capital to help commercialize new products, processes, or systems Number of businesses in southern Ontario who have received funding to commercialize new products, processes, or systems as a result of Agency support 40 81
Ratio of funding leveraged from other sources to Agency funding 2:1 2:1

Performance Analysis and Lessons Learned

Through the IBI initiative, FedDev Ontario successfully contributed to an environment where businesses can thrive by supporting direct access to capital for high growth start-up companies with innovative products, services and processes aimed at global markets. To be eligible for IBI funding, start-ups must first have funding commitments from recognized angel and/or venture capital investors. IBI also supports the growth of angel investor networks, thereby increasing the availability of angel investment capital and expertise to support these high growth firms.

Overall, demand for funding under IBI has been strong. FedDev Ontario invested $22.4 million in 81 start-up enterprises through IBI, 46 of which were new projects for the reporting year. This represents a 98 percent increase over the $11.3 million invested in 37 firms through IBI in 2011–12. Agency funding was matched by an additional $44.8 million in private sector funds, which brought the investment capital total to $67.2 million. In addition, IBI supported 13 angel investor organizations during the year. With the growth of these networks, their capacity to address SME access to capital needs increased as well.

Collaboration with private sector investors is a key component of the success of this sub-program. By matching a portion of investments through IBI, the Agency lowers the risk to investors and can increase their willingness to provide capital to a larger number of companies. As a result, the accelerated investment in start-up enterprises has enabled companies to increase revenues, expand their reach, and create high quality jobs to sustain this success.

The contribution awarded to Miovision Technologies Incorporated (Miovison) is among the highlights of projects funded by IBI in 2012–13. Miovision was awarded a repayable contribution of up to $922,500 to develop intelligent solutions for global transportation networks. The company delivers products that help to reduce traffic congestion, minimize the environmental impact of traffic, and improve overall road safety. This funding is expected to leverage more than $1.8 million of private sector capital. Since February 2011, the company has created 45 high quality jobs. More importantly, the company has grown its customer base by 38 percent, increased revenues by more than 90 percent and expanded its global reach to 31 countries. In May 2013, Miovision was presented with the Innovator of the Year award by Canadian Digital Media Network.

Sub-Program 1.2.2: Business Productivity and Innovation

Description:
This sub-program provides repayable and non-repayable contributions to for-profit and not-for-profit corporations to help improve productivity of individual businesses, industry sectors, sub-regional economies and economic clusters so that southern Ontario can be more competitive. This is achieved by making strategic investments with an emphasis on three priority areas: productivity enhancements; regional diversification; and economic clusters. This sub-program is necessary as a number of studies have indicated that Ontario's productivity lags behind its U.S. counterparts. As a result, southern Ontario needs to increase productivity to remain competitive in the global economy.

Financial Resources ($ millions)Footnote 22
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 104.0 n/a
Human Resources (FTEs)Footnote 23
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 12.6 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario businesses have processes, systems, or structures in place to enhance productivity Number of businesses who are adopting or have adapted productivity enhancements (e.g. processes, technologies, services) as a result of Agency funding 300 504
Number of organizations that have created new or expanded existing products, processes, technologies, or services in their regions as a result of Agency funding 15 5Footnote 24
Number of economic clusters created, maintained, or expanded as a result of Agency support 10 13

Performance Analysis and Lessons Learned

Through this sub-program, FedDev Ontario exceeded its performance targets in 2012–13 as it continued to deliver PI projects through its three streams: Productivity Enhancement, Regional Diversification and Building a Competitive Advantage. Within these streams, the Agency supported 522 organizations and delivered $75.6 million in funding, including investments distributed to smaller projects through third party delivery agents such as: Medical Devices Canada, Yves Landry Foundation, Ontario Chamber of Commerce and Canadian Manufacturers and Exporters. By building these strategic partnerships, third party delivery of small contributions is an efficient and effective method of enhancing the Agency's reach into all areas of the southern Ontario economy. It is also an important way to help accelerate innovation and improve the productivity and competitiveness of small businesses and communities.

PI investments support increases in production capacity, new products and processes, regional diversification, strengthening industry clusters, business growth, and global competitiveness. The Agency invested in 13 projects that helped expand business clusters. Large cluster-building projects create meaningful impacts on the competitiveness of sectors such as the emerging Canadian green chemical industry, advanced lightweight materials and high performance computing. This type of investment will influence the creation and retention of high value jobs well beyond the life of the project, and is essential to the competitiveness of growing key southern Ontario sectors.

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Program 1.3: Community Economic Development

Description:
This program supports the 288 communities (small, large, rural, urban, Francophone and Aboriginal) in southern Ontario that are home to 12.4 million residents. These communities play a key role in enhancing southern Ontario's economic competitiveness and the long-term prosperity of the region. Southern Ontario depends on communities that can attract the best talent and compete for investment as dynamic centres of commerce and learning, and in turn, strong communities contribute to a prosperous southern Ontario. Through this program, the Agency supports communities and regions throughout southern Ontario to identify local solutions to local challenges and opportunities. Strong, safe and modern communities are essential building blocks for the region's competitiveness and long-term prosperity. FedDev Ontario will continue to work with others, including Infrastructure Canada, the province and its communities to support infrastructure needs within southern Ontario.

Transfer payments in support of this program are made through a variety of initiatives under the authority of CFP, EDI, EODP and infrastructure programming like the Building Canada Fund. The Agency will support this program through the administration of contribution agreements with businesses, not-for-profit organizations, post-secondary institutions and municipalities.

Financial Resources ($ millions)Footnote 25
Total Budgetary Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(Available for Use)
2012–13
Actual Spending
(Authorities Used)
2012–13
Difference
2012–13
34.5 34.5 54.7 34.6 (0.1)
Human Resources (FTEs)Footnote 26
Planned
2012–13
Actual
2012–13
Difference
2012–13
38 38.2 (0.2)
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Southern Ontario communities have strong economies able to sustain long-term economic development and growth Number of businesses in southern Ontario communities that are in "growing" industriesFootnote c 189,000Footnote 27 192,500
Increase in the Ontario employment rateFootnote 28 0.2% -0.5%

Footnotes

Footnote c

"Growing" industries refers to: aerospace, finance and insurance, information and communication technologies (ICT), pharmaceuticals, and professional services.

Return to footnote c referrer

Performance Analysis and Lessons Learned

The Community Economic Development program aims to develop and diversify southern Ontario economies and respond to the long-term challenges facing the region as it transitions towards an innovation-focused economy. Some of the key challenges facing southern Ontario are labour and skills shortages in STEM fields; attraction of new business investment; decreased access to capital; aging infrastructure; and the capacity of communities to respond to local conditions while recognizing the benefits of operating in a regional economy.

To address the challenges and opportunities facing southern Ontario communities (especially rural communities), the Agency worked collaboratively with economic stakeholders, including businesses, not-for-profit organizations, CFDCs and other levels of government to target investment towards growing industries in support of longer-term sustainability.

The four sub-programs below provide further detail on how this program is working to support prosperous communities across Ontario on an ongoing basis, while also contributing to the renewal and expansion of community infrastructure both through its own programming and in conjunction with delivery partners within the federal government.

Sub-Program 1.3.1: Community Futures Program

Description:
This sub-program is a national program, which provides funding to CFDCs to help rural communities develop their local economy and long-term sustainability along four business lines: strategic community planning and priorities, community economic development projects, business services, and business loans. CFP is necessary, because although the recent economic downturn has had a significant impact on all communities, rural communities (especially manufacturing-dependent communities) have been hit the hardest. Rural southern Ontario also continues to face persistent challenges: limited sources of funding for SMEs; consistently lower economic performance; declining number of available jobs; an aging workforce; and youth out-migration. Research has also indicated that a region's prosperity is intricately linked to the economic well-being of rural communities.

Financial Resources ($ millions)Footnote 29
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 11.2 n/a
Human Resources (FTEs)Footnote 30
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a n/a n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Rural communities in southern Ontario have strong economies to help respond to future economic challenges Number of businesses in rural southern Ontario that have been created, maintained, or expanded as a result of CFP funding 2,250 3,625
Number of jobs created or maintained in rural southern Ontario communities as a result of CFP funding 6,750 10,643
Ratio of funds raised from other sources to CFP investments 1.7:1 3.7:1

Performance Analysis and Lessons Learned

CFP supports economic development and builds capacity in non-metropolitan communities in southern Ontario by providing operating funding to 37 CFDCs in the region. To better serve communities, the Agency continued to implement enhancements to CFP in 2012–13 including a performance-based funding model for all CFDCs receiving funding through CFP. Engagement sessions involving more than 200 participants, including local stakeholders and partners, were also held during the summer months. The Agency worked closely with the network of CFDC partners to develop and implement a process to recognize and assess performance, with the goal of enabling CFDCs to provide service excellence to their clients and the communities they serve. Targets were set to measure CFDC performance along CFP's four business lines and, effective April 1, 2012, a portion of a CFDC's annual contribution from FedDev Ontario was tied to performance based on specific criteria.

As a result of FedDev Ontario's support, CFDCs administered 706 new loans and created, maintained, or expanded 3,625 businesses and organizations in rural southern Ontario. This result, combined with more than 10,000 jobs created or maintained, demonstrated the effectiveness of this program in supporting local economic development in rural communities across southern Ontario.

Sub-Program 1.3.2: Eastern Ontario Development Program

Description:
This sub-program aims at promoting socio-economic development in rural eastern Ontario, leading to a competitive and diversified regional economy and sustainable, self-reliant communities. EODP contributions are available to support projects in two key areas: business development and community innovation. Each region in southern Ontario is different, despite the commonality of recent economic pressures, such as the global recession and growing international competition, and their socio-economic profiles (including their demographics, industrial base and resource endowments) vary considerably.

The economic challenges facing rural eastern Ontario have been exacerbated in recent years as a result of the global recession and the pressures facing the manufacturing sector. Facing new economic realities, the region is continuing to undergo adjustments, restructuring, and related challenges. Eastern Ontario's relatively large rural working age population is characterized by a higher share of older workers, and the region's youth are leaving the area for other opportunities. Furthermore, the economic hardship felt by workers, families and communities in this region is reflected in its relatively lower wages and household incomes, a lower labour force participation, and a higher proportion of people receiving employment insurance benefits when compared to Ontario overall.

Financial Resources ($ millions)Footnote 31
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 13.2 n/a
Human Resources (FTEs)Footnote 32
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a n/a n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
Eastern Ontario communities have strong economies able to respond to future economic challenges Number of businesses created, maintained, or expanded in eastern Ontario communities participating in EODP 500 2,896
Number of jobs created or maintained in eastern Ontario communities participating in EODP 5,000 9,382
Ratio of funds raised from other sources to federal EODP investments 2.7:1 2.7:1

Performance Analysis and Lessons Learned

EODP was renewed in Budget 2011 and was re-launched in the fall of 2011 with a budget of up to $30 million over three years. In 2012–13, contribution agreements with the 15 participating CFDCs in eastern Ontario were monitored to ensure they were achieving program goals. The CFDCs invested in local and regional projects aimed at improving long-term economic growth and prosperity of the region, and exceeded its targets for businesses and jobs. A total of 2,896 businesses benefitted from FedDev Ontario's support and 9,382 jobs were created or maintained in eastern Ontario communities as the Agency was able to leverage other funding from its EODP investments.

Sub-Program 1.3.3: Official Language Minority Communities

Description:
This sub-program includes a national program, EDI, which provides funding to Francophone and bilingual organizations to help create jobs and economic and sustainable growth in Francophone communities. EDI focuses on providing funding for community strategic planning initiatives and business and economic development initiatives. This sub-program is necessary to help ensure the long-term economic growth and sustainability of official language minority communities (OLMCs) in southern Ontario. It is also part of the Government of Canada's Roadmap of Canada's Linguistic Duality 2008–2013: Acting for the Future (Roadmap).

Financial Resources ($ millions)Footnote 33
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 0.9 n/a
Human Resources (FTEs)Footnote 34
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 0.4 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
Results
OLMCs have access to economic opportunities to help build strong communities Number of OLMC businesses that have been created, maintained, or expanded as a result of EDI funding 55 341
Number of jobs that have been created or maintained in OLMCs as a result of EDI funding 23 482
Ratio of funds raised from other sources to federal EDI investments 0.54:1 1:1

Performance Analysis and Lessons Learned

As part of the Government of Canada's Roadmap, EDI supports Francophone communities in southern Ontario and directly contributes to the region's rich diversity and economic sustainability. Since 2008, 30 projects have been approved in southern Ontario, which have directly enhanced the vitality of OLMCs across the region. As part of this funding initiative, FedDev Ontario invested in three larger strategic projects that focused on business counselling, micro-credit lending, and youth internships.

Sub-Program 1.3.4: Infrastructure Delivery

Description:
This sub-program includes providing funding, often in partnership with other levels of government, to not-for-profit, private and public sector entities for a range of infrastructure priority areas (e.g., roadways, bridges, water and wastewater treatment, recreation and other urban/rural physical infrastructure). This sub-program includes infrastructure investments that help support a prosperous economy for southern Ontario and Canada by maintaining and continuing to attract highly skilled workers, businesses, and investors. It also supports innovation in various industries, particularly the construction sector, by promoting modernization, the implementation of new technologies and the acceleration of product development to market, thereby positioning the province and the country to better compete in the global, knowledge-based economy.

While a large number of initiatives introduced under Canada's Economic Action Plan (2009) have successfully concluded, some of the longer-term initiatives, such as the Building Canada Fund — Communities Component Regular Intake, delivered in partnership with the Ontario government, continue to provide funding for ongoing projects across the province.

Financial Resources ($ millions)Footnote 35
Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
n/a 7.1 n/a
Human Resources (FTEs)Footnote 36
Planned
2012–13
Actual
2012–13
Difference
2012–13
n/a 17.6 n/a
Performance Results
Expected Results Performance Indicators Targets Actual
ResultsFootnote 37
Southern Ontario infrastructure is able to support future economic development and growth Number of infrastructure projects that are funded and/or administered by the AgencyFootnote d 75 506
Number of infrastructure projects completed that are funded and/or administered by the AgencyFootnote e 738 878
Funds leveraged from other sources through infrastructure programming funded and/or administered by the AgencyFootnote f 1:1 1:1Footnote 38

Footnotes

Footnote d

Includes only those projects that were expected to begin in 2012–13. Actual results include CIIF, which was announced in Budget 2012 after this target was set.

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Footnote e

Includes infrastructure projects that began prior to 2012–13. CIIF projects that were not completed in 2012–13 would not be captured in the actual result.

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Footnote f

Refers only to funds leveraged during 2012–13.

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Performance Analysis and Lessons Learned

In its role as southern Ontario's regional development agency (RDA), and as a federal delivery partner with Infrastructure Canada, FedDev Ontario continues to strengthen its relationships with stakeholders, other RDAs across the country, and other levels of government to deliver a suite of infrastructure programming. These programs are designed to create jobs, growth and long-term prosperity in our communities. They include the Building Canada Fund — Communities Component Regular Intake, the Canada–Ontario Municipal Rural Infrastructure Fund, the Municipal Rural Infrastructure Fund Top-Up in Ontario and the Brantford Greenwich Remediation Project.

In 2012–13, FedDev Ontario also successfully launched CIIF. Announced in Budget 2012, this fund provided a total government investment of $150 million for the repair and improvement of infrastructure facilities across Canada. The Agency was responsible for delivering the program for all of Ontario. In this first year, Agency staff utilized the lessons learned and best practices from previous infrastructure programming to successfully assess, monitor and deliver 430 CIIF projects across the province.

Strategic infrastructure investments can be a catalyst for economic growth and quality of life. To that end, the programming that FedDev Ontario delivers ensures infrastructure built throughout Ontario is constructed and renewed in partnership with local communities in a variety of investment categories including water, wastewater, sewage, transportation, culture and recreation. Since its inception, the Agency has directly funded and monitored over 1,500 infrastructure projects, representing a total federal investment of more than $509 million. This investment supports the competitiveness and diversification of Ontario's businesses and communities. Included in these totals are the 506 projects funded and/or administered by the Agency in 2012–13, which far exceeded the initial target as a direct result of the launch of CIIF. The Agency also exceeded its anticipated number of completed projects in 2012–13.

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Program 1.4: Internal Services

Description:
The Internal Services program supports all strategic outcomes and is common across government. Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services.Footnote 39

Financial Resources ($ millions)
Total Budgetary Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(Available for Use)
2012–13
Actual Spending
(Authorities Used)
2012–13
Difference
2012–13
14.8 14.8 19.8 19.0 (4.2)
Human Resources (FTEs)
Planned
2012–13
Actual
2012–13
Difference
2012–13
125 119.8 5.2

Performance Analysis and Lessons Learned

Since its first full year of operation in 2010–11, the Agency's focus has evolved from establishing capacity and creating processes to achieving greater efficiencies and performance measurement. In 2012–13, FedDev Ontario worked to strengthen its internal controls and financial oversight, stabilize its workforce, and effectively communicate and promote the Agency's programming and success stories. The Agency's internal service areas also dedicated significant resources to supporting the delivery of FedDev Ontario programming, stakeholder engagement, economic research, program evaluations, the implementation of the Industrial Regional Benefits Policy and played a key role in the activities surrounding the renewal of FedDev Ontario beyond its current five-year mandate. In addition, the Agency made significant short-term investments in 2012–13 to implement environmentally friendly office practices, to adopt several Government of Canada standards (e.g., Directives on Recordkeeping, GCDOCS, Workplace 2.0, travel management system), and enhanced collaboration with RDAs to reduce the duplication of effort.

Footnotes

Footnote 5

Actual spending at the program level is greater than the sum of all related sub-programs as expenditures were incurred for program level activities that supported more than one sub-program.

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Footnote 6

The actual FTE total for the program level is greater than the sum of all related sub-programs as FTEs were attributed to program level activities that supported more than one sub-program.

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Footnote 7

In the 2012–13 Report on Plans and Priorities, this target was incorrectly transcribed as "$279 million." Given that business-performed investment in research and development in Ontario has been in decline for several years, the target was to reduce the rate of decline, or reverse it.

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Footnote 8

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 9

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 10

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 11

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 12

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 13

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 14

Includes data from the ARC initiative, which was extended into the 2012–13 fiscal year.

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Footnote 15

Actual spending at the program level is greater than the sum of all related sub-programs as expenditures were incurred for program level activities that supported more than one sub-program.

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Footnote 16

The actual FTE total for the program level is greater than the sum of all related sub-programs as FTEs were attributed to program level activities that supported more than one sub-program.

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Footnote 17

In the 2012–13 Report on Plans and Priorities, this indicator was incorrectly transcribed as "Increase in business investment in machinery and equipment in Ontario."

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Footnote 18

In the 2012–13 Report on Plans and Priorities, this target was incorrectly transcribed as "$32,157,000 (annual dollars)".

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Footnote 19

In the 2012–13 Report on Plans and Priorities, this indicator was incorrectly transcribed as "Increase in real hourly wages in southern Ontario."

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Footnote 20

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 21

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 22

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 23

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 24

Although five businesses were able to create or expand their products, processes, technologies or services in their regions as part of the Agency's Regional Diversification stream (PI), another 38 businesses under the broader PI were able to create new or expand existing products, processes, technologies, or services in southern Ontario regions. In addition, there was a 68 percent greater result than expected with respect to PI's Productivity Enhancement stream and a 30 percent greater result than expected with respect to PI's Building a Competitive Advantage stream.

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Footnote 25

Actual spending at the program level is greater than the sum of all related sub-programs as expenditures were incurred for program level activities that supported more than one sub-program.

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Footnote 26

The actual FTE total for the program level is greater than the sum of all related sub-programs as FTEs were attributed to program level activities that supported more than one sub-program.

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Footnote 27

In the 2012–13 Report on Plans and Priorities, the target was incorrectly transcribed as 195,000.

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Footnote 28

In the 2012–13 Report on Plans and Priorities, this indicator was incorrectly transcribed as, "Increase in the southern Ontario employment rate."

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Footnote 29

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 30

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities and were captured as part of activities at the program level.

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Footnote 31

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 32

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities and were captured as part of activities at the program level.

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Footnote 33

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 34

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 35

Financial resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 36

Human resources at the sub-program level were not defined in the 2012–13 Report on Plans and Priorities.

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Footnote 37

These numbers include numbers from the CIIF program which was announced in Budget 2013. CIIF provided funding to 430 infrastructure projects across Ontario.

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Footnote 38

This includes joint partnerships with the province of Ontario and other programming where funds leveraged include other non-federal funding.

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Footnote 39

Internal services within the Agency include financial and human resources that support program policy, delivery, outreach, and communications activities. In the future, the Agency is expected to quantify the percentage of internal service costs to programs at the lowest level of the PAA structure.

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