2021-22 Departmental Results Report

From the Minister

From the President

The National Research Council of Canada (NRC) has dedicated more than 100 years to delivering scientific excellence, support for industry innovation, and collaborative platforms to achieve shared outcomes. As Canada evolves and new priorities emerge, the NRC consistently rises to the challenge – responding to the most pressing needs of Canadians today, while preparing to address the critical issues of tomorrow.

I am pleased to be back leading the NRC as we wrap up a productive year with many accomplishments, including:

Taking effective action on climate change: The NRC had many firsts in clean energy research and sustainable aviation, such as the first demonstration of switching from diesel to biogas generated from food waste to produce clean energy, the first flight test of a fully hybrid electric powered aircraft, and the first successful high pressure combustion testing for turbine engines using hydrogen fuel. We also opened a one-of-a-kind hybrid test facility in Ottawa to advance low-carbon aviation technology, and launched several programs in clean transportation, including the Low-emission Aviation program to help the Canadian aviation sector transition to low-carbon solutions. We advanced research in carbon neutral construction and resilient infrastructure through important work including publishing the National Building Code of Canada and National Energy Code of Canada to help make buildings and homes more energy efficient. We also supported Canadian small and medium sized enterprises (SMEs) in the development and implementation of over 400 clean technology projects.

Developing health care solutions for the future: Construction of the NRC's new Biologics Manufacturing Centre in Montréal was completed, ahead of schedule, in only 10 months adding crucial domestic biomanufacturing capacity in Canada. In addition, we advanced COVID-19 vaccines with firms such as VBI, initiated the technology transfer of Novavax's COVID-19 vaccine, established a network of testing laboratories for personal protective equipment, and provided support to innovative firms developing COVID-19 solutions.

Supporting industry innovation and growth: The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) continued to enhance its funding and advisory support to Canadian businesses, by expanding the Large Value Contribution (LVC) pilot program, funding 14 new projects including one with over $3 million in funding. The NRC completed construction of its new advanced manufacturing research facility in Winnipeg, which will provide manufacturers with the latest technologies, such as machine learning, digital twinning, and sustainable food packaging. We also opened our labs in the new advanced materials research facility in Mississauga, which will help to accelerate the discovery of new catalyst materials and commercialize new disruptive products.

Collaborating to overcome national challenges: We formally launched 3 new Challenge programs in 2021-22: Aging in Place; Internet of Things: Quantum Sensors; and Arctic and Northern. These programs focus on key societal issues including improving the quality of life of Canada's aging population, increasing Canada's quantum capacity, and addressing pressing issues for Northern peoples and communities.

Creating a workforce that represents Canada's diversity: We made several important strides as an organization to create a more equitable, inclusive and anti-racist workforce and workplace, including renewing the NRC's commitment on anti-racism, developing a new 3-year Workforce and Workplace Equity, Diversity and Inclusion Strategy, removing barriers to equitable access and participation, and increasing diverse representation across the NRC.

To achieve significant results in advancing knowledge, supporting government policy mandates, and supporting business innovation in 2021-22, the NRC:

• Generated 1,187 peer-reviewed publications, filed 270 new patent applications, and maintained a portfolio of 1,855 active patents (issued or pending);
• Labs worked with 1,035 R&D clients, of which 93% reported that the NRC helped them achieve positive results, such as increased jobs, sales and R&D capacity; and
• Worked with over 9,000 firms through NRC IRAP, and supported 32% revenue growth and 18% employee growth for NRC IRAP‑funded clients (from 2018 to 2020).

Through these and many other achievements, we and our partners responded to the challenges Canadians and the world faced last year, many of which are challenges we continue to face today, and in doing so, enhanced the lives of Canadians from coast to coast to coast. I am very proud of the level of dedication and excellence everyone in our organization brought to their work during a challenging but productive year, and continues to bring for the benefit of our country.

Results at a glance

The NRC uses its network of researchers and facilities, and its national funding program for industrial innovation to advance knowledge, apply leading-edge technologies, and work with other innovators to find disruptive, relevant and sustainable solutions to Canada's economic, social and environmental challenges.

In 2021-22, the NRC continued to advance its strategic areas of focus to deliver results to Canadians and support the Canadian science, technology and innovation ecosystem.

Scientific and technological knowledge advances

Demonstrating continued excellence in science and technology advancement plays a key role in maintaining the NRC's status as a leading research and development (R&D) organization. The NRC's R&D activities in 2021-22 continued to move the needle on some of the country's most important priorities, including climate action, digital transformation, manufacturing innovation, quantum capacity, and astronomical leadership. Advancements were made in alternative energy and fuels, sustainable transportation, and clean oceans and coasts, bringing the country closer to a healthy, safe, more resilient future. NRC expertise in digital technologies, artificial intelligence (AI), data analytics, machine learning, and nanotechnology helped lay the groundwork for progress in advanced manufacturing, innovative technologies for industrial applications, and increased cyber security.

Innovative businesses grow

The NRC's network of research and technical services, and its national funding program, NRC IRAP help Canada's small and medium sized enterprises (SMEs) increase capacity, take ideas to market and grow globally. In 2021-22, NRC IRAP worked with over 9,000 firms, continued to sponsor and fund Canadian SMEs solving COVID-related challenges through Innovative Solutions Canada; provided support for the placement of graduates in ground-breaking Canadian companies; and advanced SME access to sustainable international partnerships, new markets, and Global Value Chains through initiatives such as the Canadian International Innovation Program and Eureka. The NRC also supported many Canadian businesses with R&D services to help increase domestic capacity of novel products and technologies, with the goal of expanding internationally.

Evidence-based solutions inform decisions in government priority areas

Through collaborative partnerships, the NRC is able to develop the solutions needed to address Canada's most pressing needs. The pandemic demonstrated how sharing data and pooling resources can quickly lead to innovation and enable the government to successfully deliver results for Canadians, especially those most in need. In 2021-22, the NRC continued to prioritize the goals of advancing Canada's biomanufacturing capacity; strengthening the health care system; improving food, drug and water safety; and enhancing the resiliency of buildings and infrastructure.

Internal services

The NRC's common and corporate services need to run smoothly in order to support the organization's research, engineering, and innovation activities. By continuing to deliver internal service excellence, the NRC is able to help staff focus on core work to achieve better outcomes for the organization. To support the organization in its transition to the future work environment, the NRC developed a new Telework Policy, strengthened its IT infrastructure, improved internal health, safety, and security procedures, and continued to review and renew its facilities, completing the first year of the fabrication facilities revitalization.

In 2021-22, new initiatives were introduced as part of the NRC's Strategic Human Resources Plan to support a diverse, talented, healthy, and engaged workforce, and various projects were undertaken to promote respect, civility, and inclusion in the workplace. Building off the new Workforce and Workplace Equity, Diversity and Inclusion (EDI) Strategy, the NRC also increased efforts to strengthen representation of equity deserving groups within its research divisions and corporate branches, and implemented cross-program initiatives to increase the participation of women, Indigenous Peoples, persons with disabilities, and racialized persons in science, technology, engineering and mathematics (STEM) fields.

For more information on the NRC's plans, priorities and results achieved, see the "Results: what we achieved" section of this report.

Results: what we achieved

Core responsibility: Science and Innovation

Description: Grow and enhance the prosperity of Canada through: undertaking, assisting and promoting innovation-driven research and development (R&D); advancing fundamental science and Canada's global research excellence; providing government, business and research communities with access to scientific and technological infrastructure, services and information; and supporting Canada's skilled workforce and capabilities in science and innovation.

The NRC has 3 departmental results for tracking and reporting against its core responsibility:

• Scientific and technological knowledge advances;
• Innovative businesses grow; and
• Evidence-based solutions inform decisions in government priority areas.

Results

Clean renewable fuels and energy for effective action on climate change

Drawing on established partnerships with academia, industry and other government entities, as well as various R&D and testing facilities, the NRC is well positioned to contribute to solving climate-related challenges. The NRC collaborated with researchers through its new Advanced Clean Energy (ACE) program to accelerate the development of clean renewable fuels and energy storage materials for the transition to a low carbon economy. To frame this research, the NRC partnered with Natural Resources Canada (NRCan) and the Canadian Space Agency to develop a Life Cycle Analysis Framework for Hydrogen Production Pathways in Canada, as well as a comprehensive report on the current and future landscape of battery chemistries in Canada, prepared with Environment and Climate Change Canada (ECCC), NRCan, and the Battery Materials Association of Canada. Through a research partnership with Polar Knowledge Canada, the NRC demonstrated the first fuel-switching in a diesel generator using biogas generated from community food waste to produce clean energy. In support of clean marine transportation, NRC researchers assessed the effects of hull-cleaning methods and coatings on fuel consumption, and developed energy models under various operating conditions, for data-based solutions that will lead to reduced emissions from Canadian vessels. The work will help advance analysis and provide unique support to Canadian vessel owners and operators to reduce vessel fuel consumption and emissions, and enable custom solutions based on data from their fleets.

To support metrological traceability in determining fossil fuel related carbon emissions, the NRC coordinated 3 international measurement comparison studies of carbon isotopes with the International Bureau of Weights and Measures, to formally assess reliability of standards and the need for new generation standards. Additionally, in collaboration with the University of Ottawa (uOttawa) and Université du Québec à Montréal (UQAM), the NRC demonstrated major discontinuity in the CO2 isotope ratio measurements, almost 10 times above data quality objectives of the World Meteorological Organization Global Atmosphere Watch Programme.

NRC IRAP also supported government efforts to accelerate clean growth in Canada by funding Canadian SMEs to develop and implement clean technology projects. The program contributed approximately $73 million to support 412 clean technology projects in 2021-22, with key projects focused on emissions control, clean energy and smart grids.

Creating a stronger, cleaner, more sustainable Canadian transportation and aerospace sector

The new Clean and Energy Efficient Transportation program was launched to address complex challenges such as vehicle performance, consumer acceptance, infrastructure deployment, component cost and supply, and reliance on critical minerals for zero emission transportation. The NRC also launched the new Resilient Ground Transportation program, supported Canadian businesses and other government departments (OGDs), and initiated strategic projects aimed to improve resilience and address weather related challenges for freight and passenger ground transportation. In addition, the NRC's new Low-emission Aviation program (LEAP) was launched to help revolutionize the Canadian aviation sector's low-carbon transition and propel innovation for low emission aircraft, and support other government departments in developing green technology policies and regulations.

In 2021-22, the NRC advanced a series of research projects to explore uncharted territory for transportation technologies. Under LEAP, a 40 member team of NRC research engineers and technicians converted a Cessna 337 civil aircraft to hybrid electric power by replacing the aircraft's rear engine with a fully electric propulsion system, including an electric motor, battery and support systems, and flew it for the first time. In November 2021, NRC expertise in aerosol measurement was leveraged for a pioneering study with Rolls-Royce and Airbus to investigate the impacts of 100% sustainable aviation fuel on aircraft engine emissions. For the first time in NRC history, high pressure combustion testing was successfully performed using realistic engine conditions. The testing used hydrogen fuel to evaluate the performance of a Siemens SGT-A05 combustion system for turbine engines. Finally, in partnership with Defence Research & Development Canada, the NRC demonstrated the first complete autonomous flight of a medium-lift helicopter in February 2022.

In September 2021, the NRC opened a one-of-a-kind hybrid test facility in Ottawa to help the aerospace industry develop sustainable, low-carbon aviation technology. The Hybrid Electric Research Outfit offers innovators in the aircraft electrification space a flexible platform to scientifically test new ideas on a ground-based micro-grid, in order to gauge how their innovations will perform in flight.

Healthy coasts and ocean

With over 200,000 kilometres of coastline and a vast network of rivers, Canada has extensive water resource opportunities. In 2021-22, the NRC continued research on engineering solutions for harsh marine environments, and to address the impacts of climate change, pollution, and contamination. NRC researchers studied the exposure of immature spartina alterniflora^{Footnote 1} to various waves, currents and water levels, and found that young coastal marshes do not offer the same protection as established mature wetlands. The project demonstrated the importance of adaptive management and maintenance of wetlands in the first few years after restoration or construction, and highlights a new and innovative way to protect coastal environments while maintaining and enhancing existing ecosystems.

The NRC continues to leverage both physical and digital tools to better understand Canada's oceans, coasts and waterways. In 2021-22, the NRC developed an interactive web-enabled digital atlas of tidal energy resources in northern Canada, which is now being used by communities in the north. This work could lead to future development of tidal energy resources to supply the energy needs of remote northern communities. At the NRC's coastal wave basin research facility in Ottawa, NRC experts built a physical model of Toronto's road infrastructure, and recreated scenarios, from typical light rain conditions to extreme flood conditions. Through the testing, researchers were able to evaluate the infrastructure's ability to capture water under various flooding conditions. Finally, the successful integration of the NRC's scalable testbed system in the St. John's ice tank facility has expanded the testbed's capability such that sensor platforms and autonomous control algorithms can be evaluated at model-scale, enabling work in simulation environments and de-risking full-scale deployment and evaluation.

Smarter, more intuitive digital technologies to solve real world problems

The NRC has the capacity to explore the use of artificial intelligence (AI), data, analytics, and modeling to create innovative and meaningful solutions for a safer, more inclusive society.

In 2021-22, the NRC integrated social psychology theories with modern AI technology, developed new methods for detecting and analyzing abusive content in social media, and conducted a survey of ethics-related issues in the field of online abuse detection leading to development of novel techniques to improve abuse detection systems. Novel machine learning evaluation metrics were developed to enable AI agents to identify COVID-19 hate speech in social media, with the related technical report winning Best Paper at the 34th Canadian Conference on AI, and ethical guidelines for responsible R&D in AI were designed and made available to AI researchers and practitioners.

In collaboration with Indigenous communities and language experts, the NRC's Indigenous languages technology project continues to support the revitalization of Indigenous languages. The NRC's verb conjugation software for Southern Michif was rolled out through a course taught by the Prairies to Woodlands Indigenous Language Revitalization Circle; coverage of the Kahnawà:ke version of the Mohawk verb conjugator was increased from 200,000 to 600,000 forms; and preliminary work began on a verb conjugator for Mi'kmaw, which sparked the interest of a major Mi'kmaw organization in expanding its relationship with the NRC. In collaboration with an instructor at Northeastern University, NRC researchers have been making the ReadAlong studio speech-text alignment software for Indigenous-language videos more user-friendly.

The NRC used its data analytics capabilities to help SMEs, OGDs and internal clients adopt AI and data-driven decision making processes, leading to increased revenue for the NRC, and the development of new technologies around text analytics, causal modelling, cybersecurity, and the diagnosis of COVID-19 using medical images. The NRC also delivered several analytics tools to OGDs in 2021-22, including the upgrade of Public Health Agency of Canada (PHAC)'s Global Public Health Intelligence Network and migration to PHAC's own hosting environment; 3D image analytics application tools for the Department of National Defence; and a cyber-security pattern-recognition tool for the Communications Security Establishment. Finally, to increase Canada's quantum capacity, the NRC has engaged academic and commercial stakeholders to develop its new Applied Quantum Computing Challenge program, in alignment with Canada's National Quantum Strategy.

Disruptive technology solutions for advanced manufacturing, innovative printing, and nanotechnology

The NRC uses leading-edge research and technical expertise to develop novel materials for adaptive, intelligent, multi-functional applications in advanced manufacturing, intrinsic sensing and imaging, telecommunications, and nanotechnology development.

After a two-year building process, construction of the NRC's new advanced manufacturing research facility in Winnipeg, Manitoba was completed in November 2021. The facility will help manufacturers increase their global competitive edge, focusing on additive manufacturing, digital twinning, machine learning, and sustainable food packaging. An Indigenous working group was engaged to ensure Indigenous representation in staff and student hiring, and within the scientific and research agenda, and interior of the facility. In addition, following the November 2020 opening of the NRC's new advanced materials research facility in Mississauga, the facility officially opened its labs in September 2021. By coupling AI and machine learning with lab automation, projects will accelerate the discovery of new catalyst materials and processes, which will reduce the cost, time and risk to develop and bring new materials to market, helping Canada meet its emission reduction targets and grow the clean energy and manufacturing sectors.

To help the automotive industry meet challenges related to the manufacturing of high performance thermoplastic composites, the NRC brought together partners from the automotive supply chain to come up with low‑cost, high‑speed solutions through its industrial R&D group, STAMP Composites. Building on its success, the NRC began scoping out STAMP Hybrids, an industrial R&D group that will focus on cost-effective hybrid composite/metal components.

The NRC continues to explore emerging technology areas, using a range of pathways to effectively disseminate research to others in the research community and the private sector. In 2021-22, the NRC demonstrated 100% fabrication yield of nanowire-based devices, establishing a viable route for the scalable fabrication of efficient single photon sources and the development of hybrid on-chip platforms. Researchers also filed 2 patents and published findings in Nature Communications on work developing 3D printed antennas and lenses for potential applications in 5G telecommunications, consumer goods, and health care. Finally, a key research focus was to understand the underlying science linking polymer science, optics, and imaging for more precise and robust 3D imaging technology. In achieving this, NRC researchers constructed micron-scale 3D printing technology and fabricated micro-optics which were then delivered to a Canadian SME.

Representing the country in the field of astronomy and astrophysics

The NRC operates as Canada's foremost authority on astronomy and astrophysics, by maintaining the country's largest observatories and representing the country in leading astronomy initiatives around the world. In 2021-22, the NRC delivered 44 state-of-the-art, low-noise cryogenic amplifiers with industry partner Nanowave Technologies as part of its contribution to pre-construction of the Square Kilometer Array (SKA). This NRC-developed technology was a crucial contribution to the SKA's precursor, the MeerKAT, the most sensitive radio telescope of its kind.

In advancing our understanding of the universe, an NRC astronomer was lead author on a Canadian-led paper from 36 international astronomers, which was published in the Astrophysical Journal Supplement Series. Using the world's most advanced ground-based telescope, the Atacama Large Millimeter/submillimeter Array (ALMA) in Chile, the paper presents state-of-the-art observations of molecular gas in 51 galaxies belonging to the Virgo Cluster, providing the clearest evidence to date that the environments surrounding galaxies can reach far into the galaxies and have a lethal impact on the fuel needed to birth new stars.

Cross-sector research in collaboration with key partners

The NRC's Ideation Fund supports the development and validation of technology concepts for high risk, bold ideas that have the potential to have disruptive socio-economic impacts for Canada. In 2021-22, 6 funding agreements were signed totaling $150K for New Beginnings Round 3 projects to support small-scale exploratory research by individual NRC researchers. Through the New Beginnings Initiative, NRC researchers were able to explore chemically modified boron nitride nanotubes, which are used to reinforce materials and ensure final structures are stronger and better protected against heat, flame and radiation. NRC and McGill University researchers developed a plasma reactor to effectively carry out surface chemical functionalization^{Footnote 2}, and findings were published in the prestigious American Chemical Society Applied Nano-Materials Journal. Another New Beginnings success was the use of numerical modeling and machine learning for the prediction of sources and pathways of microplastics in aquatic environments.

In 2021-22, 2 new projects were selected for Round 3 of the Small Teams Initiative for the exploration of transformative ideas by NRC teams. The Speech Generation for Indigenous Language Education project will involve collaboration with Onkwawenna Kentyohkwa School, W̱SÁNEĆ School Board, the University of Edinburgh and Blue Quills University, and the NRC will collaborate with the University of Waterloo and SME, Brilliant Matters, on a project focused on hybrid inks for near-infrared detectors.

Through its Collaboration centres, the NRC partners with leading Canadian institutions to develop internationally recognized expertise, and accelerate science excellence and technology development in key areas of research. The NRC has established 9 centres, including the NRC-University of British Columbia Collaboration Centre for Clean Energy Transition, CIC-NRC Cybersecurity Collaboration Consortium, Karluk Collaboration Space with Memorial University of Newfoundland, NRC-Fields Mathematical Sciences Collaboration Centre, and NRC-Waterloo Collaboration on Artificial Intelligence, Internet of Things, and Cybersecurity. Results from the other 4 Collaboration Centres for 2021-22 include:

• New projects were launched in the rare disease space at the NRC-CHU Sainte-Justine Collaborative Unit for Translational Research, with 2 high potential projects renewed in the development of novel anti-cancer therapeutics and animal free models of disease.
• The Centre for Research and Applications in Fluidic Technologies held a workshop in March 2022 to showcase expertise and infrastructure at both the NRC and University of Toronto for the advancement of microfluidics-based biodevices. The centre also opened a new Device Foundry at the University of Toronto's St. George campus, an important milestone in the growth of microfluidics research and fabrication in Canada to help enable the deployment of advanced point-of-care technologies.
• A new lab with state-of-the-art equipment was commissioned by the NRC-uOttawa Joint Centre for Extreme Photonics to enhance quantum capabilities. The centre also created the Alex Szabo Fellowship with SPIE, the international society for optics and photonics, for early career researchers from the Global South to work at the centre for 6 months.
• Under the Collaboration Centre for Green Energy Materials, the NRC developed an ultrafast, one-step method for continuous synthesis of high-entropy alloy nanoparticles from a mixture of pure metal powders, and authored a publication featured on the cover of the American Institute of Physics Publishing's Journal of Chemical Physics. The next big thing in materials science, high entropy alloys are stronger, more malleable, wear and heat‑resistant, and have high potential for clean energy applications.

Advancement of SME work through NRC IRAP support services

NRC IRAP continued to play an important role in the advancement of SMEs in 2021-22 by working with 9,078 SME firms, providing $467.9 million in funding to 3,657 Canadian SMEs, delivering advisory services to an additional 5,421 unfunded firms, supporting 16,160 jobs in client firms, and nominating 29&nbp;firms to the Accelerated Growth Service.

In its third year, NRC IRAP's Large Value Contribution (LVC) pilot program supported many enterprises affected by COVID-19 and the resulting supply chain issues. NRC IRAP funded 33 LVC projects, including 14 new projects, one of which received a contribution of over $3 million. In response to a recent program evaluation, the program has committed to continuing to refine LVC project development and approval processes to improve workflow and optimize uptake by more Canadian SMEs.

NRC IRAP also supported the placement of 2,238 graduates in quality jobs with innovative Canadian SMEs through the Youth Employment Program. Of graduates who completed the internship, 89% reported that they were employed or self-employed after their placement, with 93% of them staying with the original employer. NRC IRAP has also been a strong advocate in supporting participation of women in STEM fields. 53% of participating recent grads identified as women, exceeding the program's target of 50% and the 30% representation of women among Canadian STEM graduates.

NRC IRAP provides targeted support through its Contribution to Organization (CTO) funding mechanism, and results can be measured through client feedback shared through a Post Service Assessment (PSA). PSA results indicated that 93% of the 140 clients supported through CTOs targeting women, visible minorities and indigenous entrepreneurs were satisfied with the services, 95% indicated the CTO had a positive impact on their business, and 88% indicated plans to implement the results within one month.

Equity, Diversity and Inclusion (EDI) is integral to the mission, mandate and goals of NRC IRAP. Building off the recommendations from the program's 2021-22 evaluation to increase awareness and promotion of EDI, NRC IRAP continued to advance efforts to reduce barriers to participation and increase diverse representation. NRC IRAP completed an assessment of its web presence, client portal and client-based forms, client and internal communications and process documents to identify content and messaging that unintentionally reduces the participation of under-represented groups in NRC IRAP programs and services. In 2021-22, the final assessment report was produced, including findings and considerations to help guide NRC IRAP's EDI strategy moving forward, and contribute to supporting SMEs grow. NRC IRAP also continued to participate in working groups and EDI initiatives, including participation on the Women's Entrepreneurship Strategy Assistant Deputy Minister Committee and Working Group to collaborate on strategies in support of women entrepreneurs, representation on the European Network of Innovation Agencies (TAFTIE) Diversity and Inclusivity Taskforce to review best practices in the EDI space, and work with UK Research and Innovation to support government EDI initiatives.

To capitalize on existing Canadian private sector capacity to address ongoing pandemic-related challenges, NRC IRAP continued to work with Innovative Solutions Canada (ISC) and partners to sponsor and fund Canadian SMEs addressing COVID‑related concerns. In 2021‑22, 6 COVID-related challenges were launched, submissions from 168 Canadian SMEs were reviewed, and over 960 assessments were completed for 20 partners, with almost half of these from the ISC Testing Stream and Challenge Stream programs. Of the 168 COVID-response applications assessed, 21 firms were supported with an investment of $9.23 million through 25 projects, 3 of which were through the testing stream.

Supporting innovative businesses to grow, scale-up, and export

The NRC has explored new channels to promote the NRC's intellectual property (IP) to broader audiences, and increase the potential commercialization of Canadian research. These include licencing discussions that could benefit a wide range of Canadian clean tech firms, 4 direct IP outreach initiatives, and IP licencing conversations with Canadian companies. The NRC continued to focus on IP outreach through participation in the Government of Canada's ExploreIP marketplace, and has implemented a new, streamlined client agreement process to improve consistency and efficiency when working with partners.

NRC IRAP continued to co-deliver the CanExport SMEs Program, which helps Canadian SMEs develop new export opportunities. The program supported over 1,269 projects, assisting Canadian SMEs establish a presence in international markets. An additional 46 clients received funding from the CanExport Innovation Program, which assists Canadian SMEs, as well as academic and non-government research centres, pursue and sign collaborative R&D agreements with international partners.

A successful NRC IRAP client, Vitacore became the first authorized manufacturer of N95 respirators made in Canada and acquired Health Canada approval for an enhanced design, the first Canadian-made N99-equivalent single-use respirator. NRC IRAP guidance helped the company acquire domestic and international certifications, which will allow them to expand to other countries. Building off the success, the company is now collaborating with Canadian universities on opportunities to use recycled masks for new materials and applications.

NRC partnerships for international collaboration in science and technology

The NRC fostered its global presence, supporting SMEs in accelerating their R&D through working with international partners, enabling access to networks and infrastructure to help them scale-up and grow globally.

The NRC's continued presence in Japan and Germany was crucial in the signing of 6 Memoranda of Understanding (MOU) with the Advanced Telecommunications Research Institute in Japan, and with Germany's DLR (German Aerospace Center) and BayFor (Bavarian Research Alliance), as part of the 50th Anniversary of Collaboration. The relationships also resulted in collaborations with CiRA (Japan's Centre for IPS Cell Research and Application), work with large Japanese multinational organizations to facilitate SME connections with Global Value Chains, Calls for Proposals on Low-Carbon Hydrogen Technologies, and 6 collaborative projects in AI Solutions for Industrial Production.

The NRC continued to deliver the Canadian International Innovation Program (CIIP) with Global Affairs Canada to support SME expansion into global markets, including India, Brazil, Israel, and South Korea. In 2021-22, $3.5 million in contributions were allocated to SMEs involved in 25 active projects, 7 new projects with a total value of $8.6 million were initiated with $2.3 million in funding committed on the Canadian side, and 2 virtual partnership development activities were delivered with the United Kingdom (UK) and South Korea, benefitting 20 participating Canadian SMEs.

Information Technology for European Advancement (ITEA) is the Eureka Cluster on software innovation, enabling a large international community of industry, SMEs, start-ups, academia and client organisations to collaborate in funded projects that turn innovative ideas into new businesses, jobs, economic growth and benefits for society. NRC IRAP supported 2 winning projects for the 2021 ITEA Award of Excellence: the PARTNER project focuses on health care systems to lower costs and improve patient comfort, and the VMAP project will improve the efficiency and interoperability of virtual engineering procedures.

Collaborative R&D to advance Canada's most pressing needs

Bringing together a national network of researchers and scientific facilities to bear on Canada's most significant challenges and goals, such as climate change, securing supply chains, and positioning Canada as a leader in emerging disruptive technologies, the NRC supported 356 projects with 93 unique collaborators and over $114 million in funding to date through its Challenge programs and Cluster support programs (formerly named Supercluster support programs). In addition to the programs in the table below, the Arctic and Northern Challenge program was launched in 2021-22, with project work beginning in 2022-23, and development of the Applied Quantum Computing Challenge program has begun.

Key Challenge program results for 2021-22:

• Disruptive Technology Solutions for Cell and Gene Therapy: Advanced a clinical candidate AAV-LPLD^{Footnote 3} gene therapy and its manufacturing process; initiated 2 UK collaborations on gene therapy process optimization; finalized funding to support CAR T manufacturing infrastructure and production capabilities; and provided scientific leadership on the development of microfluidic processes and biodevices for therapeutic cell product engineering and manufacturing.
• Materials for Clean Fuels: With the opening of labs at the NRC's advanced materials research facility in Mississauga, inaugural projects focused on accelerating discovery of new catalyst materials and processes to address challenges related to climate change. Coupling AI and machine learning with lab automation will greatly improve the discovery time of new materials, reduce cost, time and risk to bring new materials to market, help meet emission reduction targets, and grow the clean energy and manufacturing sectors.
• High-Throughput and Secure Networks: At the end of 2021-22, the program had 44 collaborative agreements in place, including a 3-year US collaboration aimed to provide SI (system of units) traceability path for NRC-developed quantum dot single-photon sources, which led to the custom design of an on-chip radiometer. The chip was integrated into the demonstration apparatus being constructed at the NRC, and is expected to greatly enhance its capabilities.
• Artificial Intelligence for Design: Worked with over 23 academic partners on projects such as AI-powered design for stem cell therapy, and enhancing the design of photonic power convertors. An NRC paper on materials acceleration, Neural evolution structure generation: High Entropy Alloys was featured on the cover of the American Institute of Physics Publishing's Journal of Chemical Physics.
• Pandemic Response: Advanced lead therapeutics, COVID-19 antibodies, an adjuvant for improving vaccine effectiveness, and production of SARS-CoV2 spike protein variants being leveraged by partners as vaccine candidates. Delivered tools for future pandemics such as AI-enabled radiography decision support, virus and vaccine modelling, and lipidomics-based diagnostics and personalized treatment. 
• Aging in Place: Following the program's launch in 2021-22, work began under 4 pillars: connection, health, safety, and standards, aiming to improve the quality of life of older adults and their caregivers by collaborating on projects such as wearable sensors that will support preventative home and community based care.
• Internet of Things (IoT): Quantum Sensors: The program launched in 2021-22, and began 35 projects with industry and academia, spanning the quantum sensors space from quantum photonics to chip-based systems, atom-defined quantum devices, quantum magnetometery, and high-resolution quantum-enhanced imaging.

Cluster support program results for 2021-22:

• Sustainable Protein Production: Projects focused on accelerating protein crop design, improving the quality and safety of pulse crop products, and processing and valorization technologies for sustainable protein.
• Ocean: Projects focused on biosensing technologies to monitor ocean health, value-added marine products, and novel aquaculture feed sources, in alignment with Canada's Blue Economy. This included a Queens University collaboration to develop separation and characterization protocols for micro and nano-plastics in Arctic fauna.
• AI for Logistics: Projects included AI-enabled tools for reducing risks to first responders of freight transportation fires, monitoring of Ti-alloy machining to reduce scrapping of parts and optimize tool life, and AI-based cybersecurity techniques such as fog computing using IoT devices, which could lead to collaborations with several Canadian ports. 
• Digital Health and Geospatial Analytics: Progress was made on collaborative projects with government agencies, and universities in British Columbia and Ontario, and 5 new projects were signed in areas such as predictive health care through machine learning, and tools for personalized assistive technologies.
• Advanced Manufacturing: The program leverages industrial R&D groups to share costs and risks associated with technology development while providing access to NRC experts and facilities. Projects conducted within the METALTec industrial R&D group led to a design tool and qualification procedure to assess the corrosion resistance of assemblies that incorporate high strength aluminum alloys, and robotic forming of complex sheet metal components.

Innovating health care solutions

The NRC works with public and private sector organizations to accelerate discovery and development of innovative biologics, therapeutics, and digital platforms for quality patient health care. Aimed at improving health care for Canadians through prevention, diagnosis, monitoring, and treatment, the NRC continued its work to advance remote health through several projects last year. The NRC worked with Interactive Health International to advance development of virtual software for training of clinicians in remote communities. This large-scale project has potential applications for space, northern communities and internationally. The NRC also collaborated with NASA (National Aeronautics and Space Administration) and the Canadian Space Agency for another large-scale project to develop certified diagnostics testing for the International Space Station. Finally, the NRC collaborated with Health Canada to develop guidelines for accessible virtual care, which are available on the Ontario College of Art and Design website for public and industry use. An interactive software for mental health is also available for cohort studies, with plans to transfer the software to a patient advocacy group for wider diffusion, and planning is underway to transfer a contactless vital sign monitoring system to industry.

The NRC continued to leverage its digital technologies expertise for research collaborations in the health sector. NRC and uOttawa researchers developed bioinformatics tools for network analysis in lipidomics and metabolomics, and worked with Beaumont Medical School in the US to use the tools in determining changes in Dementia Lewy Bodies^{Footnote 4}. The NRC also worked with uOttawa to develop AI diagnostic models for dementia subtyping and began working on the development of early diagnosis methods through combined analysis of animal models and patient samples. Finally, the first open-source machine learning framework for drug discovery called TorchDrug, was released, aimed at accelerating the drug discovery process through open-source collaborations. The NRC reported its technical results in an International Conference on Learning Representations paper, and in 2 workshop papers for the International Conference on Neural Information Processing Systems.

Responding to the COVID-19 pandemic and preparing for future events

By being able to quickly pivot to address urgent COVID-19 needs, the NRC's response to the pandemic demonstrated its capabilities and furthered its credibility as a reliable national research and development organization. With the continued global spread and emergence of variants, the important work that began the previous year was far from over in 2021-22 and the NRC was able to progress many key initiatives.

The NRC conducted 4 technology transfer packages moving towards manufacturing, including a new COVID-19 vaccine lead with Oragenics/Biodextris, and initiated the technology transfer of Novavax's COVID-19 vaccine at the BMC. Two products were also advanced to preclinical studies and 3 products from NRC collaborators have entered clinical trials, including VBI's COVID-19 vaccine candidates, using NRC intellectual property assets as a manufacturing platform. NRC IRAP provided advisory services and more than $37 million in funding to support 13 clients working towards made-in-Canada vaccines and therapeutics to combat the COVID-19 pandemic. NRC IRAP also supported clients to adapt their manufacturing capabilities to produce personal protective equipment (PPE), disinfection and sanitization solutions, and medical innovations for diagnostics, testing and treatment of COVID-19.

The NRC continued to improve Canada's pandemic preparedness by leading the establishment of a network of PPE testing laboratories and operating as a reference lab to address measurement challenges and provide technical support to the network. The NRC also played a leading role in establishing a standardized testing method, working with organizations such as ASTM International, and contributed to a collaborative study on the performance of labs across the network. NRC metrology experts also developed a suite of reference materials to support COVID-19 testing and began distributing them within Canada and internationally. The materials are in high demand due to their utility in determining antibody levels against COVID-19.

Enhancing food, drug and water safety

In alignment with a recent program evaluation recommendation to expand its strategic plan to focus on sustainability, the NRC supported an ecosystem of collaborative projects to develop technology solutions for a sustainable Canadian food system, including:

• Work with Agriculture and Agri-Food Canada (AAFC) on solutions for food waste reduction, value-added products from pulse crops and agricultural waste streams, and foodborne pathogen detection;
• Work with NRCan, ECCC, and Health Canada to monitor technologies and sustainable approaches to upscale renewable bioresources into platform chemicals and bioplastics;
• Collaboration with the Canadian Space Agency, AAFC, and the Arctic Research Foundation on year-round local food production in the Arctic, including a test facility for novel controlled-environment agricultural technologies using renewable energy; and
• Work with researchers from the US Department of Agriculture on a routine AI assessment of wheat infestation to better understand wheat's response to Fusarium Head Blight – an increasingly potent agricultural pest.

Building on previous studies supported by Health Canada, on measuring contaminants in illegal dried cannabis and vape liquids, in 2021-22, the NRC completed a large-scale study, comparing legal and illegal edible cannabis products, funded by the Ontario Cannabis Store in partnership with the Ontario Provincial Police (OPP). The study found that most illegal products had less than 20% of the promised levels of THC (Tetrahydrocannabinol); levels in illegal samples varied drastically, making decisions on safe portions impossible; nearly all illegal samples contained at least one pesticide; and some contained pesticides up to 1000-times higher than allowed Health Canada limits. Results from the study led to a legal cannabis media campaign by the Ontario Cannabis Store and the OPP.

Ensuring Canada's water is clean and free of contaminants is pivotal to protecting the health and safety of Canadians across the country. In 2021-22, the NRC advanced its own collaborative research efforts, as well as developed tools and infrastructure to support other research efforts. In partnership with industry and the municipality of Grande Prairie, Alberta, the NRC built a bio-electrochemical wastewater treatment demonstration plant and successfully demonstrated removal of 90-95% of BOD (biochemical oxygen demand) in compliance with current regulations. This facility and associated novel biological technique will improve communities' access to more reliable drinking water and wastewater systems that meet legislated standards.

NRC-developed novel sensors for monitoring environmental health are being applied for water toxicity indicators that can operate in remote environments, with easy-to-use IoT platforms for real-time monitoring of fresh water from anywhere in Canada. Working in collaboration with ECCC and NRCan, the application for monitoring waters around developing areas and for quality control in water treatment facilities could potentially reduce costs of more expensive testing and focus resources where most required. Working with NRCan on another research project, the NRC also developed an IoT-enabled biosensor that uses a microbial fuel cell capable of detecting the presence of toxic compounds and biodegradable organic materials in water, for instant access to environmental water characterization across Canada.

As the world's top analytical chemistry labs for marine and freshwater toxins, an NRC team developed nearly 40 biotoxin certified reference materials and began research on tetrodotoxin – a deadly neurotoxin most commonly found in pufferfish usually found in tropical waters. With potentially harmful levels in shellfish in Europe and the UK, NRC researchers worked with the Canadian Food Inspection Agency to develop analytical tools to help evaluate whether the neurotoxin has also moved into Canadian waters and poses a risk to shellfish.

Working collaboratively to drive resilient infrastructure forward

Addressing challenges related to climate change and working to build more sustainable infrastructure requires key players to bring together expertise and resources. To make progress on long-term climate action goals and advance research in carbon neutral construction, waste reduction, and resiliency of infrastructure, in collaboration with federal partners, the NRC:

• Initiated an industry consortium to discuss topics such as asphalt shingle durability and waste; and nature based solutions for commercial roofs.
• Published online design and compliance tools for climate-resilient roofing systems.
• Investigated the effects of various smart grid technologies (including time-of-day electricity rates, smart thermostats, rooftop solar power, battery storage, and thermal storage) installed in homes to assess benefits and power utility.
• Partnered with the Nuclear Waste Management Organization to develop safe and durable repository technologies for storage of Canada's spent nuclear fuel.
• Published the National Building Code of Canada 2020 and the National Energy Code of Canada for Buildings 2020 in March 2022, which include emergency performance tiers that will help enable regulating jurisdictions to make new buildings and homes more energy efficient; the new Codes will also facilitate mass timber construction up to 12 storeys.
• Supported the Construction Codes Reconciliation Agreement, making progress on updates to the code development system processes, including the approval process for code changes, as well as advancing methodologies for the identification, assessment, and reporting of variations.
• Continued to develop guidelines for safe and efficient homes and buildings, including: studies related to radon exposure, ventilation, mold, wildfire smoke exposure, overheating and formaldehyde emissions; de-risking and validating novel energy efficient office lighting systems for light-sensitive individuals; and collaborating on design tools for building codes to control impact noise in the multi-unit residential market.

Gender-based analysis plus (GBA Plus)

The NRC is committed to employing a diverse and representative workforce and to fostering an open, accessible, inclusive, and anti-racist work environment and culture. This commitment extends to the creation of a more inclusive Canadian innovation system, recognizing that diversity fuels innovation. Engagement is an important tool in making progress in these areas, and the NRC actively works to engage on GBA Plus with its employees, in its research, and with its innovative SME clients.

To help ensure NRC research benefits as many Canadians as possible, diverse groups need to be represented, especially in management discussions and decision-making, which is why the NRC continues to increase representation in all aspects of the organization. The NRC incorporates GBA Plus into research initiatives at all stages of the process from ideation to evaluation. To measure progress and impact, the NRC monitors and tracks statistics on under-represented groups and women in science, technology, engineering and mathematics (STEM), and collects success stories on research that impacts diverse populations.

NRC IRAP is designed so that no one particular group of firm owners is selected or favoured over any other, allowing for subscribed firms to represent a cross-section of the Canadian economy. The nature of the program permits it to, at times, choose to target initiatives, such as to serve Indigenous led SMEs, Indigenous entrepreneurship, and benefits to Indigenous communities. In keeping with this ability, NRC IRAP began to set goals for diversifying participation in its programs and build on work already underway to provide support to women and Indigenous-led firms through a number of agreements with not-for-profit organizations. Through NRC IRAP's Contribution to Organization (CTO) funding mechanism, in 2021-22, 4 CTOs targeting women, visible minorities and Indigenous entrepreneurs supported 140 firms for a total contribution of $1.1M. Detailed GBA Plus information can be found in the supplementary tables.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals

In 2021-22, the NRC advanced its environmental sustainability priorities and met or exceeded targets set out in its Departmental Sustainable Development Strategy (DSDS) 2020 to 2023, including 269 NRC publications in support of at least one Sustainable Development Goal (SDG). In accordance with the Federal Sustainable Development Strategy, the NRC advanced work in greening government, effective action on climate change, clean growth, modern and resilient infrastructure, clean energy, and safe and healthy communities, in support of SDGs (see the NRC's DSDS Report for more detail):

• SDG 7: Access to affordable, reliable, sustainable and modern energy: the NRC has published research in bioenergy and low-carbon intensity fuels, and engaged remote and Indigenous communities to de-risk microgrid installations and train at the facility, supporting access to affordable, reliable and sustainable energy.
• SDG 9: Resilient infrastructure and sustainable industrialization: contributing to the government goal of supporting modern and resilient infrastructure, the NRC has released national life cycle assessment guidelines, reports and publications related to wildland-urban interface fires, and collaborated on clean technology projects and pilot demonstrations using satellite-based heath monitoring technologies.
• SDG 11: Inclusive, safe, resilient and sustainable cities: the NRC has developed long term risk management plans and site file closures, helping to reduce potential environmental and human health risks from identified contaminated sites.
• SDG 12: Sustainable consumption and production patterns: the NRC has put in place maintenance and service contracts with green considerations, helping to reduce environmental impact and ensure best value in government procurement decisions.
• SDG 13: Combatting climate change and its impacts: the NRC advanced initiatives for green operations, including major energy retrofits, LED lighting retrofits, zero-emission fleet vehicles, and vehicles equipped with telematics to lower emissions. The NRC's National Energy Code for Buildings also helps reduce Canadian GHG emissions.

Experimentation

In 2021-22, NRC teams advanced processes and solutions for 5 key projects: client agreements, procurement, project management, onboarding and hiring. Over the course of the year, client agreement and procurement solutions were rolled out and project management changes were adopted. Performance of the new solutions in the first year already shows a 5 to 10-fold decrease in project time recording and an increased value of goods acquired through procurement cards, both representing a significant reduction in administrative effort. Following an in-depth review, improvements to the NRC onboarding process were embedded in ongoing operations, including an online solution to streamline supervisors' preparation for new employees. To ensure successful implementation, wide engagement activities took place with stakeholder groups and various service providers involved in the onboarding process. Implementation of a streamlined hiring process began last year, including preparations for an online proctoring tool for written assessments, and analysis of alternative second language evaluation options. In addition, use of government acquisition cards for low value, low complexity transactions was greatly increased, reducing lead times for receiving goods and freeing up capacity for procurement services.

In June 2020, NRC IRAP signed a two-year MOU with the Business Development Bank of Canada (BDC), designed to create value for clients through access to capital with preferential loan rates. In 2021-22, NRC IRAP made 34 referrals to BDC resulting in 15 contracts with an average loan size of $277,000, with an additional 9 contracts pending, for a total of $9.16 million lent to SMEs, of which $7.5 million was allocated to Ontario-based firms. BDC is an approved partner of the Canada Digital Adoption Program network launched in March 2022 and NRC IRAP provides continued support to BDC in delivering company referrals through the network.

Key risks

Given the rapidly evolving context within which the NRC operates, it has become more important than ever to identify and respond to emerging risks that could impact the achievement of its results. Several new threats emerged in 2021-22, including record high inflation, the Russian invasion of Ukraine, supply chain disruptions, and the growing labour shortage. In response to these and other events, the NRC worked to mitigate risks related to organizational financial constraints, security threats, external crises such as the pandemic, competition for highly skilled talent, and barriers to employee engagement.

To mitigate the risk of having insufficient funds for necessary investments in facilities, equipment and infrastructure, the NRC finalized its Facilities Renewal Plan, and worked to assess and prioritize its building recapitalization through a real property portfolio strategy, which includes potential cost savings. To guard against possible cyber-attacks and data breaches, the NRC updated its Departmental Security Plan and stood-up 3 task forces to enhance the security of information assets. The NRC continues to explore various models to improve its agility when responding to crises, such as the pandemic. Finally, to attract top talent and support the mental health and wellbeing of employees, the NRC developed a Wellness Strategy, and set the stage for the development of a Talent Attraction Strategy and Employer Value Proposition in 2022-23.

Results achieved

The following table shows, for Science and Innovation, the results achieved, the performance indicators, the targets and the target dates for 2021-22, and the actual results for the 3 most recent fiscal years for which actual results are available.

Financial, human resources and performance information for the NRC's Program Inventory is available in GC InfoBase.^{Footnote 9}

Budgetary financial resources (dollars)

The following table shows, for Science and Innovation, budgetary spending for 2021-22, as well as actual spending for that year. Explanations on the variance between planned and actual spending are provided in the spending and human resources section of this report.

Financial, human resources and performance information for the NRC's Program Inventory is available in GC InfoBase.^{Footnote 9}

Human resources (full-time equivalents)

The following table shows, for Science and Innovation, budgetary spending for 2021-22, as well as actual spending for that year. Explanations on the variance between planned and actual spending are provided in the spending and human resources section of this report.

Financial, human resources and performance information for the NRC's Program Inventory is available in GC InfoBase.^{Footnote 9}

Internal services

Description: Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support program delivery in the organization, regardless of the internal services delivery model in a department. The 10 service categories are:

• acquisition management services
• communication services
• financial management services
• human resources management services
• information management services
• information technology services
• legal services
• material management services
• management and oversight services
• real property management services

Leveraging NRC common and corporate services to support R&D work

The NRC continued efforts to review and streamline its common corporate services, adapt the workspace to comply with COVID-19 measures and support the transition to the future work environment, and implement initiatives to improve the organization's ability to attract, develop, and retain a diverse, talented, healthy, and engaged workforce.

In 2021-22, the NRC's Human Resources (HR) Branch continued to face significant demands related to the COVID-19 pandemic, and was still able to make progress on initiatives from its Strategic HR Plan. The NRC's refreshed Wellness Strategy 2021-2024 focuses on raising awareness of employee and workplace wellness, equipping employees and managers to support workplace wellness, and improving psychological health at the NRC. As part of early implementation, mental health response crisis training was offered to NRC supervisors, and wellness sessions and speaker events were provided to support employee mental health. The NRC also continued to promote mental health resources such as the Employee Assistance Program and LifeSpeak, with increased usage rates for the year.

The NRC also launched its new Workforce and Workplace EDI Strategy last year, which sets out a path of action for the next 3 years under 5 strategic areas of focus: hiring diverse talent, supporting career development and talent advancement, fostering an inclusive, accessible and anti-racist culture, addressing barriers in policies and systems, and enabling progress through governance and accountability. In this first year of the Strategy, new EDI initiatives included:

• Launching a grassroots speaker series and antiracism training for senior leaders and all staff;
• Establishing hiring and representation goals for designated employment equity groups and management-led actions to increase representation through hiring;
• Launching the NRC Guide to Land Acknowledgements, NRC Anti-racism Library Guide, and the NRC's Indigenous Engagement Network; and
• Forming the NRC Black Employee Resource Community (BERC) and promoting employee networks across the public service.

To support the growth and development of NRC employees, an NRC-wide mentoring program "Mentoring@theNRC" was launched in April 2021 as a component of the NRC's Leadership Development Framework, with close to 500 registered employees. Consultations with stakeholders, including equity deserving networks, and an internal survey to determine reasons people are attracted to the NRC as an employer were completed as part of the development of a new Talent Attraction Strategy, planned for a 2022-23 launch. The HR Branch also led the development and implementation of the NRC's new Telework Policy to support the organization in its transition to the future work environment, and training sessions were conducted with supervisors and employees to prepare for implementation.

The NRC continued to augment its values and ethics policy framework, and made headway on various projects to promote respect, civility, and inclusion in the workplace. This included a new Policy on Conflict of Interest (COI) with directives, training sessions in conflict resolution, managing difficult conversations and strengthening civility in the workplace, mandatory scenario-based training sessions, and a declaration system for NRC employees as well as a new COI protocol for Research Centre Advisory Boards. The NRC also delivered a new Directive on Breaches of the Research and Scientific Integrity Policy, and a Workplace Assessment on Risk Factors for Workplace Harassment and Violence, which complements the continued delivery of Ombud and informal conflict resolution services and training sessions to all the NRC employees. The Ombud continues to meet regularly with senior management to raise systemic issues for resolution.

In 2021-22, the NRC continued to work diligently to improve its IT infrastructure and modernize its research IT platforms, with initiatives focused on secure research collaboration and enabling leading edge research. The NRC launched an initiative to provide a secure IT environment that enables world-class research and cooperation, with pilots to improve online collaboration and resolve barriers that prevented research functions from migrating to secure environments. The NRC also developed a proof of concept sandbox environment to test faster access to experimental computation, tested cloud-based high performance computing (HPC) clusters, piloted an approach for interoperability across multiple environments, and deployed new on-site HPC to support research into quantum computing. To determine what other digital infrastructure will be required to support world class research, the NRC worked with science-based departments to launch a cross-departmental Research IT Policy Project.

The NRC has continued to conduct a comprehensive review of its buildings and real estate in order to support the organization's growing needs and modernise the existing infrastructure. The remaining building condition assessments for the national capital region (NCR) were completed, resulting in about 50% completion of the real property portfolio. The NRC also completed accessibility assessments for the built environment for over 60 buildings across the country, and carbon neutral studies were launched for the Montreal Road, Saskatoon and Royalmount sites to support portfolio capital planning. The first year of the Advanced Electronics and Photonics fabrication facilities revitalization was also completed, leveraging Budget 2021 funding of $90 million over 5 years to enable facility upgrades and the latest equipment needed for basic research and technology deployment in the fields of quantum and semiconductor photonics.

The NRC has continued its efforts to enhance health, safety, and security procedures to address COVID-19 measures, the future of work environment, and an evolving workspace. Last year, the NRC introduced a new Departmental Security Plan (DSP) for 2021-2024, ensuring the NRC's security priorities are aligned with the Policy on Government Security. The Plan's implementation is already underway, with a new Security Risk Management team focused on identifying and mitigating emerging risks in areas such as cyber security as well as improvements to the physical security access for a number of NRC buildings.

To provide current information on the changing external landscape, the NRC's Travel Security program was enhanced with the addition of a health and safety section focused on global legislation and constraints imposed by COVID-19 control procedures, to complement existing guidance on security while traveling. The Travel Security Briefing has become an important part of the travel preparation process and is required for any employee travelling outside of Canada.

Budgetary financial resources (dollars)

The following table shows, for internal services, budgetary spending for 2021-22, as well as spending for that year.

Human resources (full-time equivalents)

The following table shows, in full‑time equivalents, the human resources the department needed to carry out its internal services for 2021-22.

Spending and human resources

Spending

The following graph presents planned (voted and statutory spending) over time.

The NRC's actual spending of $1,436.3M in 2021-22 represents a decrease of $212.4M from the $1,648.7M spent in 2020-21. This decrease is largely associated with additional funding received and spent in 2020-21 as a result of COVID-19. This includes incremental statutory funding under the Public Health Events of National Concern Payments Act.

Budgetary performance summary for core responsibility and internal services (dollars)

The "Budgetary performance summary for core responsibility and internal services" table presents the budgetary financial resources allocated for the NRC's core responsibility and for internal services.

Actual spending of $1,436.3M in 2021-22 in comparison to planned spending of $1,332.4M represents an overall increase of $103.9M (7.8%). The variance from 2020-21 planned spending is due to additional grants and contributions funding received for NRC IRAP, and capital funding received for the Canadian Photonics Fabrication Centre and the BMC, including the reprofiling of BMC construction costs from 2020-21 to 2021-22.

The following table summarizes 2021-22 spending and year-over-year variances.

Human resources

The "Human resources summary for core responsibility and internal services" table presents the full-time equivalents (FTEs) allocated to the NRC's core responsibility and to internal services.

Human resources summary for core responsibility and internal services

The NRC's actual 2021-22 FTEs (4,285.9) has increased by 24.6 FTEs (0.6%) when compared to the 2020-21 FTE level (4,261.3). The increase is mostly attributable to increased FTEs within Science and Innovation, primarily due to ramping up of operational capacity in 2021-22 for the BMC.

Expenditures by vote

For information on the NRC's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2021.

Government of Canada spending and activities

Information on the alignment of the NRC's spending with Government of Canada's spending and activities is available in GC InfoBase.^{Footnote 9}

Financial statements and financial statements highlights

Financial statements

The NRC's financial statements (audited) for the year ended March 31, 2022, are available on the departmental website.

The NRC's consolidated financial statements include both the NRC and its portion of the accounts of the Canada-France-Hawaii Telescope Corporation (CFHT) and TMT International Observatory LLC (TIO). The NRC relationship with CFHT and TIO meets the definition of a government partnership under Canadian public sector accounting standards, which requires that its results be proportionally consolidated within those of the NRC. All inter-organizational balances and transactions are eliminated as part of the consolidation process. CHFT and TIO statements as at December 31, 2021 have been proportionally consolidated with the NRC's March 31, 2022 accounts.

The NRC's consolidated total expenses of $1,402M in 2021-22 represent a decrease from $1,627M in 2020-21. The NRC's major expense components are salaries and employee benefits ($566M) and grants and contributions ($576M), representing 81% of total expenses. The $225M decrease is primarily due to a decrease in grants and contributions of $245M, an increase in salary and employee benefits of $12M, and an increase of $8M in other operating expenses. The variance in grants and contributions is mainly due to a $375M decrease in the Innovation Assistance Program which ended in 2020-21, a $71M increase in NRC IRAP contribution to firms, and a $53M increase in the Youth Employment and Skills Strategy. The salary increase is mainly due to renewed collective agreements, an increase in term/casual employees, and an increase in Phoenix compensation claims. The planned expenses, as reported in the NRC's Consolidated Future Oriented Financial Statements in the 2021-22 Departmental Plan were $1,365M. The variance between planned and actual results of $37M is primarily due to increases in grants and contributions.

The NRC generates revenue which can be reinvested in operations. The NRC's consolidated total revenues of $168M in 2021-22 represent an increase from $156M in 2020-21. The NRC's major revenue components were research services ($68M) and technical services ($79M), representing 87% of revenues. The planned revenue, as reported in the NRC's Consolidated Future Oriented Financial Statements in the 2021-22 Departmental Plan was $188M. The total variance of $20M is largely attributed to technical service ($19M lower than the planned results).

Condensed Statement of Financial Position (audited) as of March 31, 2022 (dollars)

The NRC's consolidated net financial assets totaled $326M as at March 31, 2022, an increase of $5M from the March 31, 2021 balance of $321M. The balance is made up of the Due from the Consolidated Revenue Fund (CRF), accounts receivable, inventory for resale and cash and investments. The increase is primarily due to a $10M increase of the Due from the CRF.

The NRC's consolidated liabilities consist of accounts payable and accrued liabilities, vacation and compensatory leave, lease inducements, deferred revenues, and employee future benefits. The balance as at March 31, 2022 of $298M represents a $6M increase from the March 31, 2021 balance of $292M. The increase is primarily due to a $6M increase in deferred revenues.

The 2021-22 planned results information is provided in the NRC's Future-Oriented Statement of Operations and Notes 2021-22.

Corporate information

Organizational profile

Appropriate minister: The Honourable François-Philippe Champagne, P.C., M.P., Minister of Innovation, Science and Industry

Institutional head: Iain Stewart, President

Ministerial portfolio: Innovation, Science and Economic Development

Enabling instrument[s]: National Research Council Act, R.S.C. 1985, c. N-15

Year of incorporation / commencement: 1916

Other: The NRC is a departmental corporation of the Government of Canada, reporting to Parliament through the Minister of Innovation, Science and Industry. The NRC works in partnership with members of the Innovation, Science and Economic Development Portfolio to leverage complementary resources to promote science and research and integrated innovation, to exploit synergies in key areas of science and technology, to promote the growth of small and medium-sized enterprises and to contribute to Canadian economic growth. The NRC's Council provides independent strategic advice to the NRC President and it reviews organizational performance. The President provides leadership and strategic management and is responsible for the achievement of the NRC's long-range goals and plans in alignment with government priorities as reflected in his mandate letter. Each of the NRC's Vice-Presidents is responsible for a number of areas composed of programs and research initiatives, centres, the Industrial Research Assistance Program, and/or a corporate branch. Vice-Presidents and NRC managers are responsible for executing plans and priorities to ensure successful achievement of objectives.

Raison d'être, mandate and role: who we are and what we do

"Raison d'être, mandate and role: who we are and what we do" is available on the NRC website corporate page.

For more information on the department's organizational mandate letter commitments, see the Minister's mandate letter.

Operating context

Information on the operating context is available on the Operating context: conditions affecting our work (2021-22) page.

Reporting framework

The NRC's Departmental Results Framework and Program Inventory of record for 2021-22 are shown below.

Core Responsibility: Science and Innovation

Departmental Results Framework

Program Inventory

• Advanced Electronics and Photonics
• Aerospace
• Aquatic and Crop Resource Development
• Automotive and Surface Transportation
• Business Management Support (Enabling)
• Collaborative Science, Technology and Innovation Program
• Construction
• Design & Fabrication Services (Enabling)
• Digital Technologies
• Energy, Mining and Environment
• Genomics Research & Development Initiative Shared Priority Projects
• Herzberg Astronomy & Astrophysics
• Human Health Therapeutics
• Industrial Research Assistance Program
• International Affiliations
• Medical Devices
• Metrology
• Nanotechnology
• National Science Library
• Ocean, Coastal and River Engineering
• Research Information Technology Platforms (Enabling)
• Security and Disruptive Technologies
• Special Purpose Real Property (Enabling)
• TRIUMF

Internal Services

Supporting information on the program inventory

Financial, human resources and performance information for the NRC's Program Inventory is available in GC InfoBase.^{Footnote 9}

Supplementary information tables

The following supplementary information tables are available on the NRC's 2021-22 Departmental Results Index page:

• Details on transfer payment programs
• Response to parliamentary committees and external audits
• Gender-based analysis plus

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Organizational contact information

Mailing address:
National Research Council Canada
1200 Montreal Road, Bldg. M-58
Ottawa, Ontario, Canada K1A 0R6

Telephone: 613-993-9101 or toll-free 1-877-NRC-CNRC (1-877-672-2672)
TTY: 613-949-3042
Fax: 613-991-9096
Email: info@nrc-cnrc.gc.ca
Website(s): https://nrc.canada.ca/en/

Appendix: definitions

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

core responsibility (responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a 3‑year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority (priorité)

A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result (résultat ministériel)

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments' immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

A framework that connects the department's core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on a department's actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

experimentation (expérimentation)

The conducting of activities that seek to first explore, then test and compare the effects and impacts of policies and interventions in order to inform evidence-based decision-making, and improve outcomes for Canadians, by learning what works, for whom and in what circumstances. Experimentation is related to, but distinct from innovation (the trying of new things), because it involves a rigorous comparison of results. For example, using a new website to communicate with Canadians can be an innovation; systematically testing the new website against existing outreach tools or an old website to see which one leads to more engagement, is experimentation.

full‑time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person‑year charge against a departmental budget. For a particular position, the full‑time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person's collective agreement.

gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus])

An analytical tool used to support the development of responsive and inclusive policies, programs and other initiatives; and understand how factors such as sex, race, national and ethnic origin, Indigenous origin or identity, age, sexual orientation, socio-economic conditions, geography, culture and disability, impact experiences and outcomes, and can affect access to and experience of government programs.

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2021-22 Departmental Results Report, government-wide priorities refers to those high-level themes outlining the government's agenda in the 2020 Speech from the Throne, namely: Protecting Canadians from COVID-19; Helping Canadians through the pandemic; Building back better – a resiliency agenda for the middle class; The Canada we're fighting for.

horizontal initiative (initiative horizontale)

An initiative where 2 or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

non‑budgetary expenditures (dépenses non budgétaires)

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement)

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting (production de rapports sur le rendement)

The process of communicating evidence‑based performance information. Performance reporting supports decision making, accountability and transparency.

plan (plan)

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes)

Identifies all the department's programs and describes how resources are organized to contribute to the department's core responsibilities and results.

result (résultat)

A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization's influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible)

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.