Archived — Departmental Performance Report 2013–14

Archived information

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.

FedDev Ontario's First Five Years:

FedDev Ontario was established in August 2009 and tasked with providing an immediate stimulus to the southern Ontario economy in the wake of the global economic recession.

FedDev Ontario moved quickly to respond to the needs of the region and create a targeted programming suite to support the Government of Canada`s agenda of jobs, growth and long-term prosperity.

Since 2009, FedDev Ontario has been working to create opportunities for economic growth in southern Ontario by helping businesses become more competitive, innovative and productive by working with universities, colleges and research centres. In partnering with others, FedDev Ontario aims to promote economic prosperity by encouraging businesses to bring innovative ideas to the market; by supporting communities to develop and diversify local economies; and by championing the economic advantages that exist in southern Ontario.

These efforts have resulted in a list of impressive achievements by FedDev Ontario during the first five years:

FedDev Ontario was renewed for an additional five years (2014–15 to 2018–19) through Economic Action Plan 2013. Going forward, FedDev Ontario will continue to build on its achievements from the first five years. There is more work to do to restore southern Ontario as an economic engine of growth (within Canada and globally). Together, with partners across southern Ontario, FedDev Ontario is ready to contribute to building a stronger economy in southern Ontario and Canada.

Section II: Analysis of Programs by Strategic Outcome


Strategic Outcome: A Competitive Southern Ontario Economy

In 2013–14, FedDev Ontario continued its efforts to support its singular strategic outcome: a competitive southern Ontario economy. FedDev Ontario is focused on achieving this outcome by building on the region's competitive advantages (such as: 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 proximity and access to U.S. and international markets), to help address some of the persistent challenges facing the region.

FedDev Ontario directed its efforts in 2013–14 on four key areas in support of its strategic outcome: Technological Innovation, Business Development, Community Economic Development and Internal Services. Through these key areas, FedDev Ontario continued its delivery of transfer payment programs and services to individuals, businesses, communities and other key stakeholders across southern Ontario and strengthened its profile as a viable and active participant in the economic development of southern Ontario.

As indicated in the Foreword section of this document, information relating to financial, human resources and performance information is provided at the lowest level of the organization's Program Alignment Architecture. With regard to FedDev Ontario, this means that actual expenditures are provided at the sub-program level without comparison to planned spending.

FedDev Ontario has made best efforts to identify realistic targets for each of its programmatic and sub-programmatic areas. However, in certain cases there are sizeable discrepancies between the targets identified and actual results achieved. These discrepancies are partly explained by the fact that it is difficult to anticipate targets without having the benefit of historical data, since most of the programs under FedDev Ontario were launched in 2010–11

Although improvements have been made to integrate better planning and reporting tools (e.g., Performance Measurement Strategies and training for officials and clients), FedDev Ontario continues to seek ways to set targets. Given that FedDev Ontario launched its new suite of programming (the Southern Ontario Prosperity Initiative and the Advanced Manufacturing Fund) at the end of 2013 in preparation for 2014–15, FedDev Ontario will continue to be challenged to identify clear and realistic targets.

With respect to planned results, please note that in most cases the published results are generated from activities undertaken during 2013–14. However, in certain instances, results may reflect activities over multiple years with the goal of providing the reader with a more comprehensive analysis of the impact of investments for initiatives that were launched in 2010–11 and completed in 2013–14.

top of page

Program 1.1: Technological InnovationFootnote 6

Description

This program is intended to support the southern Ontario economy to be more innovative by creating new products, services, processes and markets so as to contribute to the region's competitiveness. This will be achieved by: encouraging the region's labour force to be more innovative; focusing on key emerging sectors; and by strengthening linkages between the region's businesses (especially small- and medium-sized enterprises) and its post-secondary institutions. These are the elements necessary to improve the region's productivity, accelerate economic growth and maintain and enhance the region's living standards in the context of a global, knowledge-based economy.

Transfer payments in support of this program are made through a variety of initiatives under the authority of the Southern Ontario Development Program through the administration of contribution agreements with businesses, not-for-profit organizations and post-secondary institutions.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used)
2013–14
DifferenceFootnote 7
62,760,436 62,760,436 61,687,965 56,430,801 (6,329,635)
Human Resources (Full-Time Equivalents [FTEs])
2013–14
Planned
2013–14
Actual
2013–14
Difference
21 23 2
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario has a strong knowledge-based economy Number of people in the labour force in southern Ontario that are considered "highly qualified personnel"Footnote 8 2,183,400 people 2,195,600 people
Share of Ontario's employment in knowledge-intensive business services (KIBS)Footnote 9 6.0% 6.1%

Performance Analysis and Lessons Learned

FedDev Ontario's activities and investments through the Technological Innovation program in 2013–14 aimed to support the long-term sustainability and global competitiveness of the southern Ontario economy. Through collaborative efforts with its partners in the region, including not-for-profit organizations, post-secondary institutions and small- and medium-sized enterprises, FedDev Ontario worked on a wide range of activities in 2013–14 (e.g., business skills training, internships/placements, etc.) to create an environment that would foster future innovation and growth for the southern Ontario economy.

FedDev Ontario also focused efforts on identifying opportunities to more efficiently and effectively use public funds and enhance its client-focused delivery, which included: strategically identifying projects yielding the most potential benefit for the southern Ontario economy; encouraging collaboration between key regional stakeholders to deliver programs and services; and using risk-based approaches to minimize the administrative burden on program recipients.

In total, FedDev Ontario invested $56.4 million for all activities under the Technological Innovation program, including $52.4 million in transfer payment funding to the five Southern Ontario Advantage Initiatives (Youth STEM, Graduate Enterprise Internship, Scientists and Engineers in Business, Applied Research and Commercialization and Technology Development Program) that supported the Science, Technology, Engineering and Mathematics Awareness, Skills Development and Technology Development and Commercialization sub-programs that follow. Through these investments, FedDev Ontario was able to exceed its initial performance targets for the Technological Innovation program and contribute to the overall success of FedDev Ontario's first five-year mandate, which concluded on March 31, 2014.

Moving into its second five-year mandate, FedDev Ontario will focus its efforts on supporting businesses to access the right skills rather than directly supporting skills development and training (Sub-Programs 1.1.1 and 1.1.2). FedDev Ontario's new suite of initiatives will continue to support some activities previously eligible under its skills development initiatives as part of broader project initiatives. For example, projects may include support to new entrepreneurs, opportunities for internships and support for skill development related to the adaptation or adoption of new technologies associated with productivity improvements in small- and medium-sized businesses.

top of page

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 science, technology, engineering and mathematics (STEM) education and careers. In the process, it also aims to develop the STEM employment pool and to improve young people's knowledge of the business of science. This sub-program is necessary as many employers in these fields are reporting current or anticipated skill shortages. STEM graduates are not only needed to fill future job vacancies, they are also a prerequisite for a more innovative and productive economy.

Budgetary Financial Resources (dollars)Footnote 10
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 5,795,558 n/a
Human Resources (FTEs)Footnote 11
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 1 n/a
Performance Results
Expected Results Performance Indicators Targets Actual Results
More children and youth in southern Ontario are aware of science, technology, engineering and mathematics-related fields of study and/or careers Number of children/youth enrolled in FedDev Ontario supported science, technology, engineering and mathematics awareness programs 150,000 833,603Footnote 12

Performance Analysis and Lessons Learned

In 2013–14, FedDev Ontario's Youth STEM (Science, Technology, Engineering and Mathematics) initiative, which is the core Southern Ontario Advantage Initiative for this sub-program, spent $5.7 million in support of outreach and engagement activities that reached more than 830,000 children and youth across southern Ontario—680,000 more than anticipated for the 2013–14 fiscal year.

A key area of focus in 2013–14 was continuing to work with not-for-profit organizations in the region to promote critical thinking, science and technology careers and entrepreneurship to children and youth across southern Ontario. FedDev Ontario also focused on activities that had a broad reach across the region, including projects that reached 33,558 Francophone and 8,329 Aboriginal youth. An example of one partnership that had a large impact in 2013–14, was the Perimeter Institute's Brain STEM initiative, which reached more than 500,000 children and youth. As part of the initiative, the Perimeter Institute developed a curriculum and related teacher training in entrepreneurship, science, technology, engineering and mathematics, which is now being introduced in all secondary schools across Ontario. It also leveraged the expertise of a broad range of partners, including school boards, the Science Teachers' Association of Ontario, TVOntario, CBC Radio and businesses, such as Title Entertainment and Eclipse Productions.

A key lesson learned in 2013–14 is that funding regional not-for-profit organizations with a diverse mix of partners and an expansive network allowed FedDev Ontario to leverage more resources to better and more efficiently engage children and youth across southern Ontario. This resulted in the program exceeding its 2013–14 targets.

top of page

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 science, technology, engineering and mathematics (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 small- and medium-sized businesses, 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 not only helps to meet future labour/skills shortages in the STEM fields, but also to build a vibrant and innovative workforce capable of meeting future challenges in a global, knowledge-based economy.

Budgetary Financial Resources (dollars)Footnote 13
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 15,800,360 n/a
Human Resources (FTEs)Footnote 14
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 1 n/a
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario science, technology, engineering and mathematics (STEM) graduates and graduate students have the business skills to work in related areas of employment Number of STEM graduates and graduate students participating in internships or commercialization fellowships as a result of FedDev Ontario funding 100 775Footnote 15
Number of STEM graduate students/recent graduates who have participated in business skills training funded by FedDev Ontario who are subsequently employed or self-employed in related fields 50 1,039Footnote 16

Performance Analysis and Lessons Learned

Providing southern Ontario graduates and graduate students with opportunities to gain practical work experience and business skills training to support the next generation of cutting-edge businesses, is another component for ensuring southern Ontario's long-term sustainability and economic growth.

Working in collaboration with not-for-profit organizations and post-secondary institutions, FedDev Ontario supported 650 internships for science, technology, engineering, and mathematics (STEM) graduate students and recent graduates in 2013–14 under the Graduate Enterprise Internship initiative. These experiences provided opportunities for on-the-job training and help in building the networks needed to secure future employment in STEM-related fields.

Through the Scientists and Engineers in Business initiative, FedDev Ontario worked in collaboration with not-for-profit organizations and post-secondary institutions to provide business skills and seed financing to assist 125 STEM graduates and graduate students commercialize their innovations and launch new businesses.

Some key lessons learned in 2013–14 under this sub-program are that collaborative partnerships between not-for-profit institutions and post-secondary institutions can be successfully leveraged to provide southern Ontario graduates and recent graduates with access to internship and business skills training opportunities, while providing participating businesses with a vehicle to address their challenges through the use of highly skilled interns. Projects involving organizations with broad reach across the region also allow new entrepreneurs to seamlessly access expertise regardless of their geographic location. A good example of this collaborative approach was the University of Toronto's partnership with the Ontario Brain Institute. This collaboration enabled the university to place interns in businesses as part of a Neurotech cluster supported by the Ontario Brain Institute. These successful placements led to the hiring of eight interns at the end of their placements. Another example of a successful partnership was the Mississauga Regional Innovation Centre's (VentureStart) collaboration with 13 regional innovation centres in southern Ontario, which assisted them in launching more than 100 new start-up businesses across the region in 2013–14.

top of page

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 support the commercialization of innovative products and services. This is achieved through funding collaborative ventures, which bring together and leverage the skill sets of various economic players. This sub-program addresses the difficulty in commercializing many of the innovations developed in the region, which is a key challenge facing the southern Ontario economy. There is a need to encourage collaboration so that post-secondary institutions, businesses (especially small- and medium-sized enterprises) and not-for-profit corporations can leverage their knowledge and skills to bring innovations to market more quickly and support the southern Ontario and Canadian economies to become more globally competitive.

Budgetary Financial Resources (dollars)Footnote 17
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 31,596,444 n/a
Human Resources (FTEs)Footnote 18
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 6 n/a
Performance Results
Expected Results Performance Indicators Targets Actual ResultsFootnote 19
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, etc.) 30 35
Ratio of collaborations leveraged per projectFootnote 20 2:1 9:1

Performance Analysis and Lessons Learned

Leveraging collaborations in the private sector to promote greater technological innovation, commercialization and economic growth was also a key focus for FedDev Ontario's Technology Development Program in 2013–14. As part of the Southern Ontario Advantage Initiatives, which sunset in 2013–14, the Technology Development Program supported the creation of leading-edge business-led technology platforms and clusters in emerging industries such as water technology, neuroscience, big data, environmental sciences and health informatics.

In 2013–14, the Technology Development Program exceeded its performance targets by supporting 35 organizations, including not-for-profit and research institutions, post-secondary institutions and businesses, in advancing their innovations closer to market. In total, these organizations advanced 86 innovations—20 of which were successfully brought to market—under this initiative through activities such as product and applied research, engineering and product design. One example of the broad collaborations supported by the Technology Development Program is the Connected Health and Wellness Project. As part of the project, York University brought together 15 businesses and research organizations to create a common software platform and 40 software applications, which will allow individuals and their health care teams to collaboratively manage their health and well-being. The project also included an educational platform for healthcare professionals to establish standards in the practice and integration of health coaching into health promotion, disease prevention and management.

In addition to this work, FedDev Ontario incorporated the results of a survey of participants from its Applied Research and Commercialization initiative, which ended as of March 31, 2013, when planning its new suite of programs under the Agency's new mandate. With the launch in December 2013, the new programming suite includes the Investing in Commercialization Partnerships initiative, which responds to much of the feedback received in the survey. Results from the survey were also used to inform FedDev Ontario's work to develop longer-term approaches to promote technological innovation in small- and medium-sized enterprises in southern Ontario.

Key lessons learned in 2013–14 include the need to recognize and prepare for the complexity of large collaborations among many different partners, the importance of a strong anchor organization to manage projects and ensure project outcomes are achieved, and the value of risk-sharing between government and the private sector to encourage private-sector investment in emerging sectors. To this end, FedDev Ontario directed funding to support the efforts of these anchor organizations, mainly post-secondary institutions and research institutes, in establishing clusters in emerging industry segments, which facilitated business-to-business and business-to-post-secondary institution networking and collaborations in support of commercialization outcomes.

top of page

Program 1.2: Business DevelopmentFootnote 21

Description

This program aims at supporting the 360,000 businesses (especially small- and medium-sized enterprises) in southern Ontario in their efforts to drive competitiveness by providing funding to encourage the creation of start-up companies, help existing businesses to expand and assist companies to improve their productivity.

Transfer payments in support of this program are made through a variety of initiatives under the authority of the Southern Ontario Development Program through the administration of contribution agreements with businesses, not-for-profit organizations and post-secondary institutions.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used)
2013–14
DifferenceFootnote 22
90,406,932 90,406,932 89,670,252 87,659,299 (2,747,633)
Human Resources (FTEs)
2013–14
Planned
2013–14
Actual
2013–14
Difference
32 33 1
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario businesses are able to respond to future economic challenges Private investment in machinery and equipment in Ontario To support businesses to meet or exceed their 2013 investment intentions Preliminary results ($28.2 billion) indicate that businesses did not meet 2013 machinery and equipment investment intentions ($32.4 billion)
Ontario's labour productivity (real gross domestic product per hour) $42.38 Comparable labour productivity figure not availableFootnote 23

Performance Analysis and Lessons Learned

In recognition of the importance of access to capital, new equipment/technologies, cutting-edge research and collaborative networks to help businesses grow and succeed in the global market, FedDev Ontario invested $87.7 million in 2013–14 through its Southern Ontario Development Program and related Southern Ontario Advantage Initiatives (Investing in Business Innovation and the Prosperity Initiative).

Through this program, FedDev Ontario continued to focus its effort on providing targeted support to businesses by promoting the adoption of new technologies to enhance productivity and expand operations and to create jobs for Canadians. In 2013–14, the Business Development program also focused on continuing to build connections between southern Ontario businesses and various key stakeholders (e.g., angel/venture capital investors/networks, not-for-profit organizations and post-secondary institutions) within Canada and abroad to enable the type of growth and development that would allow them to better compete globally and to better integrate into successful global value chains. FedDev Ontario also worked to implement a new risk-based project monitoring plan to better leverage internal resources and investments, reduce the administrative burden on recipients and enhance client-focused service delivery.

top of page

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 and to leverage private sector investment. This sub-program addresses another key challenge to the southern Ontario economy: the lack of access to capital by start-ups to help commercialize their ideas. To remain competitive and a leader in the knowledge-based economy, southern Ontario entrepreneurs need access to capital to bring their ideas to market.

Budgetary Financial Resources (dollars)Footnote 24
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 19,517,713 n/a
Human Resources (FTEs)Footnote 25
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 7 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 that have received funding to commercialize new products, processes or systems as a result of FedDev Ontario support 40 69
Ratio of funding leveraged from other sources to FedDev Ontario funding 2:1 3.4:1Footnote 26

Performance Analysis and Lessons Learned

During 2013–14, the Business Investment sub-program, which is supported by FedDev Ontario's Investing in Business Innovation initiative, focused on making strategic investments in start-up businesses from high-growth/priority sectors (e.g., information and communications technology) to help leverage domestic or foreign angel and venture capital in the development of innovative technologies and products. It also focused efforts on supporting southern Ontario angel investor networks to expand their membership base, thereby expanding the number and size of the pools of investment capital potentially available to high-growth firms.

This approach was successful in encouraging collaboration between entrepreneurs and angel and venture capital investors and increasing private sector investment in start-up enterprises. Overall, 69 businesses in southern Ontario received FedDev Ontario funding to commercialize new products, processes or systems in 2013–14 resulting in 58 percent more businesses being supported than anticipated.

Although funding leveraged against FedDev Ontario investments in the 2013–14 fiscal year did not meet the performance target of 2:1, it is not wholly unexpected as 2013–14 was the final year of the Investing in Business Innovation initiative. Given the multi-year nature of projects under this initiative, leveraged funds from external investors were generally provided upfront, which reduced the ratio of external investment to FedDev Ontario funding in later years. However, over the lifespan of the initiative, every dollar invested by FedDev Ontario leveraged $3.40 in private sector funding, which exceeded the initiative's overall requirements. A key lesson learned is that performance targets for funding leveraged from the private sector against FedDev Ontario contributions should correspond to a time frame equal to the initiative life cycle rather than annually to better reflect the nature of the initiative's leveraging requirements.

The Business Investment sub-program also supported investment attraction activities for 10 angel investor networks in southern Ontario and two associations that represent angel networks. Increased angel investor membership will enable these networks to support greater numbers of start-up enterprises in the future.

Another key lesson learned in 2013–14 was that angel networks lack sufficient members with sector expertise outside of information technology and traditional industries. A larger membership base would broaden the range of industry expertise and contacts and create greater potential for syndication with investors from other networks and venture capital firms. Angel groups also struggle to recruit new members to maintain and grow funds available for investment. Close collaboration and sharing the financial risk for projects helps minimize investor risk and allows angel (and venture capital) investors to invest in more projects.

top of page

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 improve the productivity of individual businesses, industry sectors, sub-regional economies and economic clusters and the competitiveness of the southern Ontario economy. This is achieved by making strategic investments with an emphasis on three priority areas: productivity enhancements; regional diversification; and economic clusters. This sub-program addresses findings from a number of studies indicating that Ontario's productivity lags behind its U.S. counterparts.

Budgetary Financial Resources (dollars)Footnote 27
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 67,136,616 n/a
Human Resources (FTEs)Footnote 28
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 11 n/a
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario businesses have enhanced capacity to support innovation and improve productivity Number of new products, services, processes, practices, skills and technologies developed as a result of FedDev Ontario funding 300 221
Number of economic clusters created, maintained or expanded as a result of FedDev Ontario support 10 26

Performance Analysis and Lessons Learned

During 2013–14, the Business Productivity and Innovation sub-program, supported through the work of FedDev Ontario's Prosperity Initiative, focused efforts on making strategic investment in projects that would have a broad impact on the southern Ontario economy in three key areas:

This three-pronged strategy resulted in the Prosperity Initiative supporting more than 469 businesses in southern Ontario in 2013–14. This support took the form of either financial support (271 businesses) and/or collaboration on joint projects with other partners. The initiative also resulted in the development or adaptation of more than 200 new products, processes, technologies and services; the creation/maintenance/expansion of 26 economic clusters; and the leveraging of $333.6 million in funding from the private sector, other levels of government and non-governmental organizations.

A key lesson learned from 2013–14 is that industry-driven collaborative projects between post-secondary institutions and small- and medium-sized enterprises using self-sustaining business models are an effective approach to support the commercialization of university/college-driven research. A good example of this success is FedDev Ontario's investment of $20 million in support of a high speed computing research and innovation platform in southern Ontario, titled the Southern Ontario Smart Computing Innovation Platform, which brings together a consortium of seven universities and a lead industry partner, IBM.

The Platform will use state-of-the-art high performance and cloud computing systems to process very large amounts of data in research areas to develop products and services that address some of the world's most complex problems and position southern Ontario and Canada as a leader in the digital economy. Furthermore, this investment has significant commercialization opportunities, including infrastructure, resource management and neuroscience, and these opportunities will be explored through partnerships with southern Ontario businesses that are looking to develop new systems for managing traffic, food distribution, electricity, and more, as well as new tools that can be used to diagnose and treat neurological disorders.

Another lesson learned is the value of employing indirect delivery mechanisms such as not-for-profit organizations to distribute small contribution amounts, ensuring efficient and effective delivery and enhancing FedDev Ontario's reach and impacts into all areas of southern Ontario.

top of page

Program 1.3: Community Economic DevelopmentFootnote 29

Description

This program supports the 288 communities (small and large, rural and urban, and Francophone and Aboriginal) in southern Ontario that are home to 12.7 million residents. These communities play a key role in enhancing southern Ontario's economic competitiveness, as strong, safe and modern communities are essential building blocks for 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. Through this program, FedDev Ontario will continue to work with others, including Infrastructure Canada, the Province and communities to support infrastructure needs within southern Ontario and to identify local solutions to local challenges and opportunities.

Transfer payments in support of this program are made through a variety of initiatives under the authority of the Community Futures Program, the Economic Development Initiative, the Eastern Ontario Development Program and infrastructure programming, such as the Community Infrastructure Improvement Fund. FedDev Ontario will support this program through the administration of contribution agreements with businesses, not-for-profit organizations, post-secondary institutions and municipalities.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used)
2013–14
DifferenceFootnote 30
55,397,113 55,397,113 75,083,532 71,120,480 15,723,367
Human Resources (FTEs)
2013–14
Planned
2013–14
Actual
2013–14
Difference
46 43 (3)
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario communities have strong economies able to sustain long-term economic development and growth Percentage of southern Ontario census subdivisions with a decrease in employment insurance beneficiaries (year-over-year) 50 percent or more of southern Ontario census subdivisions have a decrease in employment insurance beneficiaries (year-over-year) 64 percent of southern Ontario census subdivisions had a decrease in employment insurance beneficiaries

Performance Analysis and Lessons Learned

The 2013–14 fiscal year was a transition year for the Community Economic Development Program and the related activities and transfer payment programs within its four sub-programs: Community Futures Program, Eastern Ontario Development Program, Official Language Minority Communities and Infrastructure Delivery. While the Community Futures Program was ongoing, the Eastern Ontario Development Program and Community Infrastructure Improvement Fund were approaching completion (as well as other programs delivered by FedDev Ontario on behalf of Infrastructure Canada), and the Economic Development Initiative was undergoing its own renewal.

As FedDev Ontario transitioned its activities, it continued to work collaboratively with a variety of regional partners (e.g., Community Future Development Corporations, economic development organizations, not-for-profit organizations, governments and businesses) to support southern Ontario communities through targeted investments in business growth and retention, job creation, increased productivity and competitiveness, and infrastructure modernization. FedDev Ontario also focused work in 2013–14 on encouraging smaller and regional communities—particularly communities experiencing economic challenges—to find innovative and local approaches to build on their economic strengths. In total, FedDev Ontario invested $71.1 million across the following four sub-programs to provide strategic, targeted support to create the infrastructure to spur greater economic prosperity and advance the economic standing of communities across southern Ontario.

top of page

Sub-Program 1.3.1: Community Futures Program

Description

This sub-program is a national program, which provides funding to Community Futures Development Corporations to help rural communities develop local economies and long-term sustainability along four business lines: strategic community planning and priorities; community economic development projects; business services; and business loans. The Community Futures Program addresses a number of challenges facing rural communities. Although the recent economic downturn had a significant impact on all communities, rural communities (especially manufacturing-dependent communities) were hit the hardest. Rural southern Ontario also continues to face persistent challenges including: limited sources of funding for small- and medium-sized enterprises; consistently lower economic performance; a declining number of available jobs; an aging workforce; and youth out-migration. Research indicates that a region's prosperity is closely linked to the economic well-being of rural communities.

Budgetary Financial Resources (dollars)Footnote 31
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 12,138,162 n/a
Human Resources (FTEs)Footnote 32
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 16 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 Community Futures Program funding 2,100 5,185
Number of jobs created or maintained in rural southern Ontario communities as a result of Community Futures Program funding 6,300 14,982
Ratio of funds raised from other sources to Community Futures Program investments 1.7:1 4:1

Performance Analysis and Lessons Learned

In 2013–14, FedDev Ontario introduced an outcome-based funding component to the Community Futures Program's performance-based funding model, which had been initially launched in 2012–13 to enhance service delivery to rural businesses and communities. The performance-based funding model provides Community Futures Development Corporations with incentives to maximize their operational effectiveness and focus on improved performance and results. Through this enhanced focus on performance, southern Ontario Community Futures Development Corporations provided 785 new loans to small- and medium-sized enterprises in the region in 2013–14, disbursing an unprecedented $152 million in overall loan investments. Through these efforts, 5,185 new businesses were created, maintained, and/or expanded and 14,982 jobs were created and/or maintained in the region—more than double of targets set at the beginning of the year. The program also leveraged $4 for every dollar of FedDev Ontario contribution funding, which is an indication of the effectiveness of the Community Futures Program delivery model.

Overall, the changes implemented through the full adoption of the performance-based funding model under the Community Futures Program have resulted in increased business counselling and a higher number of business loans issued by Community Futures Development Corporations to small- and medium-sized enterprises in rural southern Ontario.

top of page

Sub-Program 1.3.2: Eastern Ontario Development Program

Description

This sub-program promotes socio-economic development in rural eastern Ontario, leading to a competitive and diversified regional economy and sustainable, self-reliant communities. Eastern Ontario Development Program contributions are available to support projects in two key areas: business development and community innovation.

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. 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, while the region's youth are leaving the area for other opportunities. The economic hardship felt by workers, families and communities in this region is reflected in its relatively lower wages and household incomes, a lower rate of participation in the labour force and a higher proportion of people receiving employment insurance benefits when compared to Ontario overall.

Budgetary Financial Resources (dollars)Footnote 33
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 13,566,576 n/a
Human Resources (FTEs)Footnote 34
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 3 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 the Eastern Ontario Development Program 500 4,732
Number of jobs created or maintained in eastern Ontario communities participating in the Eastern Ontario Development Program 5,000 6,044
Ratio of funds raised from other sources to federal Eastern Ontario Development Program investments 2:1 2:1

Performance Analysis and Lessons Learned

Through the Eastern Ontario Development Program in 2013–14, FedDev Ontario continued to help eastern Ontario communities sustain and grow their economies by contributing to the development of businesses and expansion of their economic capacity. During 2013–14, eastern Ontario Community Futures Development Corporations were able to create, maintain and/or expand the number of businesses in eastern Ontario by more than nine times the anticipated target (4,732). This facilitated businesses' ability to create or maintain 6,044 jobs in the region and resulted in a two-fold return on FedDev Ontario's $13.2 million investment.

Further to the activities related to existing projects, FedDev Ontario also focused on the re-launch of the Eastern Ontario Development Program, which was allocated $48 million in funding over five years through Economic Action Plan 2013 (effective April 1, 2014).

A major lesson learned in 2013–14 is that increased emphasis on the alignment between the Community Futures Development Corporations' program investment decisions and local economic development priorities for business growth and economic diversification has benefitted a far greater number of eastern Ontario small- and medium-sized businesses than anticipated. As a result, in the 2014 re-launch of the sub-program, FedDev Ontario revised the Eastern Ontario Development Program guidelines to target projects with economic development priorities related to encouraging jobs, growth and prosperity.

Another important lesson learned is that the economic circumstances facing communities in eastern Ontario require strategic investments over a longer period of time. This lesson was incorporated into the five-year renewal of the Eastern Ontario Development Program in 2014.

top of page

Sub-Program 1.3.3: Official Language Minority Communities

Description

This sub-program includes the Economic Development Initiative, which is a national program that provides funding to Francophone and bilingual organizations to create jobs and sustainable economic growth in official language minority communities. The Economic Development Initiative focuses on providing funding for community strategic planning initiatives as well as business and economic development initiatives. This sub-program helps to ensure the long-term economic growth and sustainability of official language minority communities in southern Ontario. It is also part of the Government of Canada's Roadmap for Canada's Official Languages 2013–2018: Education, Immigration, Communities.

Budgetary Financial Resources (dollars)Footnote 35
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 500 n/a
Human Resources (FTEs)Footnote 36
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 0 n/a

Performance ResultsFootnote 37

Performance Analysis and Lessons Learned

A major focus under this sub-program in 2013–14 was the re-launch of the Economic Development Initiative with a five-year investment (2013–2018) of up to $4 million as announced in Economic Action Plan 2013. Following the announcement, FedDev Ontario began outreach activities with official language minority communities in southern Ontario to encourage the development of projects for the new round of program funding, which was officially launched in February 2014.

Based on lessons learned in the previous round of Economic Development Initiative funding, program improvements were introduced, including updated program guidelines that provide greater clarity and focus for projects being delivered from 2013–2018 as well as investing in larger projects that can benefit Francophone communities across southern Ontario. FedDev Ontario will provide funding to eligible projects that support: 1) strategic community economic planning to enhance the economic base and competitiveness of Francophone communities and small- and medium-sized enterprises; and 2) business and economic development to respond to needs and foster the economic growth of community-identified industry sectors, including knowledge-based and manufacturing industries.

top of page

Sub-Program 1.3.4: Infrastructure Delivery

Description

This sub-program provides funding, often in partnership with other orders of government, to not-for-profit, private and public sector entities operating across a range of priority infrastructure areas (e.g., roadways, bridges, water and wastewater treatment, recreation and other urban/rural physical infrastructure). This sub-program includes infrastructure investments that 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 products to market, thereby positioning the province and the country to better compete in the global economy.

While a large number of initiatives introduced under Canada's Economic Action Plan (2009) have successfully reached their respective construction deadlines, 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.

Budgetary Financial Resources (dollars)Footnote 38
2013–14
Planned Spending
2013–14
Actual Spending
2013–14
Difference
n/a 43,987,463 n/a
Human Resources (FTEs)Footnote 39
2013–14
Planned
2013–14
Actual
2013–14
Difference
n/a 16 n/a
Performance Results
Expected Results Performance Indicators Targets Actual Results
Southern Ontario infrastructure is able to support future economic development and growth Number of infrastructure projects funded and/or administered by FedDev Ontario 377 601Footnote 40
Number of completed infrastructure projects funded and/or administered by FedDev Ontario 360 275Footnote 41
Funds leveraged from other sources through infrastructure programming funded and/or administered by FedDev Ontario 1:1 1:1.3

Performance Analysis and Lessons Learned

In recognition of the vital role that infrastructure plays in supporting communities and businesses to grow, prosper and better compete in the global economy, FedDev Ontario invested nearly $44 million for Infrastructure Delivery, which helped fund and/or administer 601 projects in 2013–14. Although this represented a 63 percent increase over the original target of 377 projects, this increase was primarily the result of fewer projects being completed during the preceding fiscal year than initially projected. In contrast, FedDev Ontario had 275 infrastructure projects completed in 2013–14, representing a 24 percent decrease when compared to the original target. These results underscore the multi-year nature of infrastructure projects and funding as progress and completion can be influenced by a number of factors, including inclement weather. In all cases, projects are monitored closely for compliance against their respective funding agreements until their successful completion, and all efforts are made to ensure projects adhere to estimated timelines as closely as possible.

In 2013–14, FedDev Ontario continued to strengthen its relationship with regional stakeholders (e.g., federal departments, the Ontario government, municipalities, not-for-profit organizations, and First Nations) by working collaboratively to improve and rehabilitate local infrastructure. A key area of focus during the year was the administration of the Community Infrastructure Improvement Fund across Ontario, which supported the expansion of facilities such as community, recreational and cultural centres and arenas to encourage the economic growth and prosperity of Ontario communities. These projects leveraged external funds at ratios ranging from 1:1 to 2:1 (depending on the project) for each dollar contributed by FedDev Ontario in 2013–14. Taking this into account, along with the rest of the portfolio of infrastructure programs delivered under this sub-program, $1.30 was leveraged for each dollar invested by FedDev Ontario in 2013–14.

Under this sub-program, FedDev Ontario was also responsible for continued monitoring of legacy activities as well as administering programs in partnership with others. Specifically in 2013–14, a total of 47 Community Adjustment Fund projects that had received funding in previous fiscal years were still subject to ongoing monitoring by FedDev Ontario employees for compliance and, in some instances, repayment of funding. Further work was also done to continue to administer the Recreational Infrastructure Canada program and deliver funding to the City of Brantford for the Brantford Greenwich–Mohawk Brownfield Remediation Project.

In 2013–14, FedDev Ontario continued to administer the Building Canada Fund and its Top-Up program across the province. This program, jointly funded with the Government of Ontario, provided funding for local infrastructure projects (e.g., roads, bridges, water treatment and high-speed broadband access) in communities with less than 100,000 people. FedDev Ontario also worked in joint partnership with the Province of Ontario to deliver the Canada–Ontario Municipal Rural Infrastructure Fund and unilaterally delivered the Municipal Rural Infrastructure Fund Top-Up program on behalf of Infrastructure Canada.

A key finding in 2013–14 is that lessons learned, evaluations and audit results from previous infrastructure programming can support improved client-focused service delivery. To this end, FedDev Ontario made continued improvements during the year to streamline business processes and enhance communications and client engagement.

top of page

Internal Services

Description

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 (including policy activities); 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 Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used)
2013–14
DifferenceFootnote 42
14,248,285 14,248,285 20,266,932 19,069,825 4,821,540
Human Resources (FTEs)
2013–14
Planned
2013–14
Actual
2013–14
Difference
110 133 23

Performance Analysis and Lessons Learned

Throughout 2013–14, FedDev Ontario continued to support its program delivery and engagement activities through the provision of effective and efficient internal services, including financial services, human resource capacity building, communications activities, strategic policy guidance, and support for intergovernmental and stakeholder relations.

An ongoing focus across all internal services functions was the streamlining and optimizing of processes, systems and capacities that would enable FedDev Ontario to continue its effective program delivery while strategically positioning the organization to be more dynamic and responsive to client needs, as well as external reporting requirements.

To support this focus, FedDev Ontario was able to successfully implement improvements to its performance measurement and reporting capabilities through the strategic use of data from Statistics Canada, as well as a benchmarking review to enable comparisons to international jurisdictions. Further to this, FedDev Ontario implemented the Treasury Board's Directive on Performance Management and engaged other Regional Development Agencies on the implementation of the Treasury Board Secretariat's Common Human Resources Business Processes and sharing of tools.

In anticipation of its next five-year mandate, FedDev Ontario also reviewed and updated its existing governance structures in 2013–14 to ensure greater transparency and accountability in the decision-making process across the organization. This organizational evolution is indicative of the efforts FedDev Ontario has made year-over-year to its internal management and service delivery mechanisms as it has matured from its start-up status in 2009 to an efficient and productive economic development agency. In moving into its second five-year mandate, FedDev Ontario is building on its role as a co-investor by strengthening its ability to serve as a champion for the economic interests of southern Ontario, and as a convenor in bringing stakeholders together to respond to the region's challenges and opportunities.

To this end, the addition of Canada Business Ontario to FedDev Ontario in June 2013, as well as the advances made in supporting and promoting partnerships through the Industrial and Technological Benefits to southern Ontario firms, are further examples of how the organization continues to evolve and broaden its scope as it solidifies its position as a significant contributor to the future prosperity of southern Ontario.

Footnotes

Footnote 6

2013–14 Actual Spending and Actual FTE amounts reflect total resource use for the program as well as all related sub-programs.

Return to footnote 6 referrer

Footnote 7

The difference between actual and planned spending can be attributed to lower than expected project costs, delayed project completions, and the conclusion of FedDev Ontario's suite of programming, which did not allow for new projects to be initiated in 2013–14.

Return to footnote 7 referrer

Footnote 8

Highly skilled personnel is defined by Statistics Canada as "individuals with university degrees at the bachelors' [sic] level and above" (Michael McKenzie, "A Profile of Canada's Highly Qualified People," Innovation Analysis Bulletin, 9, 2 (October 9, 2007), 29–32).

Return to footnote 8 referrer

Footnote 9

The KIBS subsector includes establishments whose primary activities depend on human capital, knowledge, and skills. The KIBS final product is a consulting service and knowledge transfer. Other than being knowledge intensive, these services are intermediary (i.e., services intended for businesses).

Return to footnote 9 referrer

Footnote 10

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 10 referrer

Footnote 11

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 11 referrer

Footnote 12

Includes formal enrollment in in-person classes, as well as online programs.

Return to footnote 12 referrer

Footnote 13

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 13 referrer

Footnote 14

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 14 referrer

Footnote 15

May include some results from previous years not reported to FedDev Ontario until the 2013–14 fiscal year.

Return to footnote 15 referrer

Footnote 16

These results include participants who participated in business skills training supported by FedDev Ontario in previous fiscal years, but whose employment was not reported until the 2013–14 fiscal year.

Return to footnote 16 referrer

Footnote 17

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 17 referrer

Footnote 18

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 18 referrer

Footnote 19

Excludes data from FedDev Ontario's Applied Research and Commercialization initiative, which ended in 2012–13.

Return to footnote 19 referrer

Footnote 20

Each collaboration leverages significant private sector investments to contribute to the advancement of innovative ideas to market.

Return to footnote 20 referrer

Footnote 21

2013–14 Actual Spending and Actual FTE amounts reflect total resource use for the program as well as all related sub-programs.

Return to footnote 21 referrer

Footnote 22

The difference between actual and planned spending can be attributed to lower than expected project costs, delayed project completions, and the conclusion of FedDev Ontario's suite of programming, which did not allow for new projects to be initiated in 2013–14.

Return to footnote 22 referrer

Footnote 23

Statistics Canada data series (Cansim Table 383-0011) used to calculate this target has been terminated. The replacement data (Cansim Table 383-0029) are not fully comparable with those previously published.

Return to footnote 23 referrer

Footnote 24

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 24 referrer

Footnote 25

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 25 referrer

Footnote 26

Overall initiative performance was 3.4:1, but for 2013–14 it was 0.4:1. Funding leveraged against FedDev Ontario contributions is generally provided upfront, resulting in a lower ratio of leveraged funding in the final year of the project life cycle.

Return to footnote 26 referrer

Footnote 27

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 27 referrer

Footnote 28

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 28 referrer

Footnote 29

2013–14 Actual Spending and Actual FTE amounts reflect total resource use for the program as well as all related sub-programs.

Return to footnote 29 referrer

Footnote 30

The difference between actual and planned spending can be attributed to the transfer of $19.8 million in authorities from 2012–13 to 2013–14 for the Community Infrastructure Improvement Fund. This is offset by below-budget final project costs, delayed project completion, and the conclusion of FedDev Ontario's suite of programming, which did not allow for new projects to be initiated in 2013–14.

Return to footnote 30 referrer

Footnote 31

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 31 referrer

Footnote 32

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 32 referrer

Footnote 33

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 33 referrer

Footnote 34

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 34 referrer

Footnote 35

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 35 referrer

Footnote 36

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 36 referrer

Footnote 37

Given the renewal of the Economic Development Initiative in Economic Action Plan 2013 and official launch by FedDev Ontario in February 2014, there is no performance information to report for fiscal year 2013–14.

Return to footnote 37 referrer

Footnote 38

2013–14 Planned Spending was not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 38 referrer

Footnote 39

2013–14 Planned FTEs were not identified at the sub-program level in the 2013–14 Report on Plans and Priorities.

Return to footnote 39 referrer

Footnote 40

Includes projects active during the 2013–14 fiscal year.

Return to footnote 40 referrer

Footnote 41

Project completion dates are subject to a variety of factors beyond FedDev Ontario's control, such as inclement weather and protracted tendering processes, which create challenges in forecasting and achieving targets.

Return to footnote 41 referrer

Footnote 42

The difference between actual and planned spending can be attributed to the June 2013 transfer of funding for Canada Business Ontario as well as increased activities, such as stakeholder engagement and outreach sessions, to support FedDev Ontario's five-year renewal.

Return to footnote 42 referrer

Date modified: