Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Special Report

Ottawa’s superclusters unlikely to hit goals for job creation, GDP growth: Budget watchdog

The federal government’s superclusters program is underspending and will miss its ambitious targets for job creation and GDP growth, according to a report released Tuesday morning by the Office of the Parliamentary Budget Officer (PBO). 

The Liberal government announced the program in the 2017 federal budget, pledging $950 million over five years for organizations it said would help forge strong links between firms and research institutions, develop more skilled talent and share the risks involved in developing disruptive technologies. In February 2018, Innovation Minister Navdeep Bains announced the five successful consortia, focused on digital technology, proteins, advanced manufacturing, AI and oceans. 

But protracted contract negotiations between Ottawa and the new organizations meant the first projects were only unveiled in March 2019. ISED has already pushed back its superclusters targets by a year, citing the time it took to evaluate applications. The PBO’s report offers the first independent look at how the program is proceeding. Here’s what you need to know.

Special Report

Ottawa’s superclusters unlikely to hit goals for job creation, GDP growth: Budget watchdog

By Murad Hemmadi
Parliamentary budget officer Yves Giroux in Ottawa in March 2020. Photo: The Canadian Press/Adrian Wyld
Oct 6, 2020
A A
A Small A Medium A Large
Share

Gift

Share

The federal government’s superclusters program is underspending and will miss its ambitious targets for job creation and GDP growth, according to a report released Tuesday morning by the Office of the Parliamentary Budget Officer (PBO). 

The Liberal government announced the program in the 2017 federal budget, pledging $950 million over five years for organizations it said would help forge strong links between firms and research institutions, develop more skilled talent and share the risks involved in developing disruptive technologies. In February 2018, Innovation Minister Navdeep Bains announced the five successful consortia, focused on digital technology, proteins, advanced manufacturing, AI and oceans. 

But protracted contract negotiations between Ottawa and the new organizations meant the first projects were only unveiled in March 2019. ISED has already pushed back its superclusters targets by a year, citing the time it took to evaluate applications. The PBO’s report offers the first independent look at how the program is proceeding. Here’s what you need to know.

The money: Innovation, Science and Economic Development Canada (ISED) had paid out just $30 million as of Mar. 6, 2020, compared to a projected outlay of $104 million. The superclusters and private-sector partners have pledged another $97 million to the projects announced to that point. 

The jobs: The PBO report estimated the program will directly generate 27,000 jobs if both Ottawa and private-sector partners fulfill their spending commitments. Ottawa had promised over 50,000. The PBO extrapolated from data for 24 announced projects, which ISED expects will create 2,594 jobs, a rate of 14 positions for every $1 million in joint government and partner spend. “The department’s current projections suggest [the superclusters] are on track to exceed their target of 50,000 jobs over a 10-year horizon,” said John Power, spokesperson for Innovation Minister Navdeep Bains. He claimed they’ve already created over 6,100 net new jobs to date.

Missing the target: The PBO found it “highly unlikely that the government will meet its objective of increasing GDP by $50 billion over 10 years,” citing comparable initiatives in other countries. Hitting the target would require every dollar of the $2 billion Ottawa and private-sector members are putting up to generate $25 for the economy, but the watchdog noted that somewhere between a three- or eight-fold return is more common. Even a multiplier effect of 8.82 seen in some U.S. examples, which the report called “optimistic,” would only generate a GDP lift of about $18 billion.  

The data gap: Per the report, ISED said it’ll track things like productivity increases and the creation of new products and processes, but the PBO didn’t find “quantifiable objectives for any of these metrics.” The department did disclose some new program objectives in March, setting the superclusters a collective goal of creating 150 new companies and roping in 100 large “anchor” firms by the end of the 2022–2023 fiscal year. 

The pandemic effect: The PBO’s study cuts off before the pandemic, at which time the five superclusters had announced a collective 45 projects. At Ottawa’s direction, each subsequently dedicated a portion of its budget to COVID-19 measures. The Vancouver-based Digital Technology Supercluster, for example, set up a $60-million program that has backed 35 projects, including platforms for virtual mental health, addiction treatment and telework for youth and health-care workers. They’ve also been involved in other parts of the pandemic response. Hamilton, Ont.-based Next Generation Manufacturing Canada linked StarFish Medical, a Victoria-based device-design and contract-manufacturing firm, with a Winnipeg firm that had commercialized a ventilator created by a former University of Manitoba professor; the federal government subsequently ordered 7,500 units.  

The government responds: “We are seeing the five superclusters live up to their promise in terms of leveraging industry contributions, and supporting collaborative projects with small and medium-sized enterprises which are having a national impact,” Bains said in a statement. He said Canada needs to back areas where they have knowledge clusters, existing economic activity and research expertise, and the program is designed to break down silos between sectors. Power said the superclusters have approved 219 projects valued at more than $800 million so far, and its non-pandemic undertakings attracted “$1.5 of industry investment for each $1 of government investment.”

Gift the full article

The opposition perspective: “There should be widespread anger from the science and research and innovation community about what’s taken place,” said NDP innovation critic Brian Masse. “This is lost years during an age of innovation.” He has previously criticized the government for failing to hit program-spending targets following major announcements. Masse called the superclusters “a very poor return of job numbers for our investments,” and suggested they were set up at the expense of other, potentially more effective strategies. Ottawa has continued to provide R&D and business support through other programs such as the regional development agencies and the Strategic Innovation Fund.

#Parliamentary Budget Officer #superclusters

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: The Canadian Press/Adrian Wyld

Most Popular This Week

News

Canada-U.K. digital trade is set to grow under new phase of Pacific Rim trade pact

By Joanna Smith
Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot across an expanse of low forest of a rocket launching into blue skies.
News

People hired to promote Canadian rocket firm didn’t actually help, company alleges in lawsuit defence

By David Reevely

Briefing

New 100% U.S. tariffs on drones take effect, hitting Canadian industry

By David Reevely   |   Sep 3, 2026

Solomon says Canada will stick with its own AI rules after U.S., tech giants push G20 not to regulate

By Murad Hemmadi   |   Sep 3, 2026

Ottawa defence supplier Allen-Vanguard put into receivership

By David Reevely   |   Sep 3, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi   |   Aug 28, 2026
Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Canadian investors are dumping U.S. government debt for American corporate bonds

By Chaimae Chouiekh   |   Aug 24, 2026
An image of tall buildings against a cloudy blue sky.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi   |   Aug 27, 2026
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
News

Canadian universities are still struggling to commercialize their research, new data shows

By Catherine McIntyre   |   Aug 25, 2026
Exterior of a University of Toronto building
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith   |   Aug 28, 2026
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.
News

Canada-U.K. digital trade is set to grow under new phase of Pacific Rim trade pact

By Joanna Smith   |   Sep 1, 2026

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account