5. Conclusions and Recommendations

5.1 Relevance

Based on the interviews and the results from the survey, we find that the ITPP and FJST programs are relevant and consistent with government priorities and objectives on innovation and entrepreneurship. There is, however, some disagreement on whether WD delivery of the programs is in line with WD’s new and strategic way of delivering programs and services through third parties.

5.2 Success/Impacts

The programs are meeting the needs of client firms in western Canada, and in particular, very small businesses with less than ten employees. Graduates hired with the assistance of ITPP and FJST have had a positive impact on the export and technology performances, respectively, of the participating firms. The “cost” incurred during the learning curve or training period when the graduate is being incorporated into the SMEs’ operations is mitigated by the wage subsidy of the programs. Firms in Saskatchewan and Manitoba had a greater need for the support.

Many graduates are finding career opportunities with the firms they joined through the programs. In terms of hiring few difficulties were encountered. In a reasonably buoyant economy where most graduates are finding employment within six months of graduation, the programs have brought the attention of graduates to the opportunities in small firms. More S&T than international trade graduates stayed with their firms which suggests that the S&T graduates have proven themselves to be relatively more valuable to their firms.

One year appears to be an acceptable term for clients. One year was adequate time for graduates to establish a need for the position, and to prove themselves as able to fill that position.

5.3 Effectiveness

Clients were pleased with the application process finding that it was simple, clear and reasonable. Issues with the process concerned the time taken to approve graduates for employment under the programs, the involvement of a number of WD staff in an application, and the cap on the number of applications a company was permitted to make. Reporting requirements have not posed problems for clients.

For the most part, clients appear to have been able to attract suitably qualified graduates. The programs are not as well known as they should be; there has been limited promotion at universities and colleges, and more generally which has limited knowledge of the programs among graduates and companies. Particular difficulties arose in hiring by rural firms.

In terms of alternative program delivery, provincial delivery was not thought to be a likely alternative because provinces, certainly BC, are explicitly phasing out subsidies to business. On the grounds that direct delivery was no longer consistent with WD’s strategic approach to fulfilling its mandate, some advocated delivery by community-based organizations. Removal of direct contact with SMEs would, however, eliminate an important source of policy information for WD, and possibly deflect the programs from their focus on new economy firms.

As evidenced by the results, most considered the programs to have been very useful to small businesses and to graduates and would like to see the programs continue. There were, however, differing views on whether they should be delivered directly by WD or by a third party. Some also advocated a targeting by sector and technology.

5.4 Recommendations

Based on the success of the ITPP and FJST, the programs should be continued. They should also continue to be delivered directly by WD, and not through a third party, in order to maintain the access provided by the programs to SMEs in western Canada as an important source of policy information for WD.
If the programs are continued, a number of changes are recommended to improve program delivery:
1. The programs should be more widely promoted in western Canada to industry associations, and university campuses, as well as within WD itself, particularly to WD regional offices in rural areas. In addition, information on the programs should be more readily accessible on the WD website.
2. Particular attention should be paid by WD regional offices to assisting firms in rural areas to recruit graduates through the programs.
3. WD regional offices, in administering the programs, should try to have a single point of contact for participants within the offices for applications, reporting and payments relating to each project.
4. Closer linkages with other federal programs concerned with technology and trade development in SMEs such as IRAP should be encouraged to improve awareness of the WD programs and provide the opportunity to clients for broader-based, complementary support.
5. Eligibility criteria should be broadened to open the programs to start-ups and firms that are applying technology they do not own, and to lengthening the period from graduation for ITPP candidates from three to five years.
6. WD regional offices should collect performance metrics on client firms as part of the firms’ annual reporting. Data should include graduate recruitment, graduates retained, and destination of graduates leaving the firms (type of job, location, forwarding address) as well as data on export revenues, and new products and services. Firms should be asked to provide this data for at least three years after the ITPP and/or FJST projects terminate.
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