2007/12 (b)

BACKGROUNDER

Promoting Forest Innovation and Investment

One objective of the Forest Industry Long-Term Competitiveness Initiative is to improve economic opportunities for Canada's forest sector by investing in forest innovation. Through Natural Resources Canada (NRCan), the Government of Canada will provide $70 million in funding over two years. The funding will support the formation of the new national forest research institute — FPInnovations, the implementation of the Canadian Wood Fibre Centre and investments in forest innovation.

Institute Consolidation and Investments in Innovation ($60 million)

Canada's three national forest research institutes (the Forest Engineering Research Institute of Canada; Forintek Canada Corp.; and the Pulp and Paper Research Institute of Canada) will be merged to form FPInnovations.

Consolidation of these institutes will create the largest public-private forest research and development institution in the world. This consolidation will provide for greater efficiency and strength in innovation and research and development. FPInnovations will also allow the forestry industry to speak with a stronger common voice on forest-sector issues.

New investments in forest innovation will harness the capacity of FPInnovations and meet the long-term innovation challenges facing the sector.

The funding will provide for pre-competitive, non-proprietary research to address the development and adaptation of emerging and breakthrough technologies, such as forest biomass, forest biotechnology and nanotechnology.

These new technologies will help shape future opportunities for the forest sector, broadening the range of profitable products manufactured by a reinvigorated industry. Working collaboratively with universities, provinces and industry, FPInnovations will help stimulate the research and development and innovation needed for Canada's forest industry to be competitive.

Canadian Wood Fibre Centre ($10 million)

NRCan will fully implement the Canadian Wood Fibre Centre (CWFC), a new research entity to work in collaboration with the other three components of FPInnovations. The CWFC will focus wood fibre research from forest to end use to increase Canada's knowledge of wood fibre quality and how best to grow and utilize it in the long term.

For more information, media may contact:

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media.