This page is part of the 2022-23 Departmental Results Report.
Economic challenges resulting from the COVID-19 pandemic, the war in Ukraine and a global climate emergency were major elements of the NRC’s operating context in 2022–23. The Government of Canada took extraordinary measures to curb record-high inflation and reduce the threat of a recession. Despite Canada’s strong economic growth in 2022, employers were forced to re-evaluate pandemic-era spending decisions, as borrowing costs climbed to their highest levels in more than 15 years. These economic conditions placed downward pressure on the NRC’s revenues and activity with private-sector clients at a time when operating costs are increasing because of inflation, and when the Government of Canada is focused on stimulating business research and development (R&D) to increase Canadian competitiveness.
To better support business R&D across all regions and all sectors of the Canadian economy, the Government of Canada announced the creation of the Canada Innovation Corporation (CIC) and the transition of the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to the new organization. The integration of NRC IRAP will allow the CIC to build on NRC IRAP’s strong foundation of success to create a large-scale platform of R&D support for Canadian businesses, and enable the program to evolve and expand its influence to reach more firms across the country.
In addition to facing economic headwinds, Canada and the world directed attention toward solutions to address climate change, future health emergencies and the transition to a digital economy. With once-in-a-generation storms occurring more and more frequently, countries are moving quickly to decarbonize industry and increase the resilience of at-risk infrastructure and food supplies. The pandemic shone a light on the urgent need to boost vaccine and therapeutic research, as well as domestic biomanufacturing capacity in preparation for future infectious disease outbreaks. The NRC was tasked by the Government of Canada to create something unique in Canada: a biomanufacturing facility intended to produce biologics that would not otherwise be available for Canadians, and which could pivot during a future public health emergency to produce cell-based vaccines or other drugs needed to keep Canadians safe.
Like most federal organizations, the NRC shifted the majority of its employees to work remotely early in the pandemic. However, the NRC returned to its laboratories rapidly and reopened the Canadian Photonics Fabrication Centre (CPFC) under strict health and safety protocols to be able to continue important work for clients and collaborators. Following the Government of Canada’s announcement of a new common approach to hybrid work for the federal public service, the NRC adopted a similar model for all NRC staff, involving a return to the office for at least 2 to 3 days per week.
The launch of new artificial intelligence (AI) language models, such as OpenAI’s GPT-4, began to have a profound impact across industries, enabling sophisticated automation of tasks, such as drafting research papers, speeches or essays. Although AI has the ability to increase productivity in a wide range of sectors, it is a fast-evolving technology where policymakers will be challenged to guide progress and innovation in a positive direction. The NRC has prioritized the study of responsible and ethical AI to minimize potential adverse effects on society, such as the viral spread of misinformation.
Advancing reconciliation remains at the forefront. The NRC developed a strategy to build intentional relationships with Indigenous researchers, innovators and communities. This work will help advance equity for First Nations, Inuit and Métis peoples and bridge systems to create new forms of knowledge that can be brought to bear on critical issues.