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Welcome to the 2003-2004 Networks of Centres of Excellence (NCE) Annual Report. As the NCE program approaches its 15th anniversary, this has been an active year – five networks completed their funding cycles, two new networks are establishing themselves, and new teams of researchers are applying for funding in 2005.

Over the last decade and a half, our mission has been to mobilize Canada's research talent in academic, private and public sectors and apply it to solve large-scale important problems. This mobilization is not only within networks, but among networks as well. This was clearly demonstrated by the fact that three networks – CANVAC, PENCE and MITACS – became involved in research to combat Severe Acute Respiratory Syndrome (SARS). These networks were flexible and capable of quickly mobilizing scientists to respond to emerging challenges.

Two new networks created in the past year are ArcticNet and Advanced Foods and Materials Network (AFMNet). Both are timely and forward-looking enterprises. Climate warming in the Arctic will have a profound effect on life in the Far North – and throughout North America – and research is needed to understand the environmental, social and economic impacts this change will bring. AFMNet will develop novel ideas in food safety, nutritional quality and human health. It will boost Canada's capacity to create new knowledge in areas that are important for the public, provide intellectual stimulation for students and generate valuable intellectual property.

Overall this year, the NCE program supported the research of 1,962 professors in 78 Canadian universities. The program's partners included 719 Canadian companies, 215 provincial and federal government departments and 272 agencies from Canada, along with 352 international partners, making it a truly national and international program. The NCE program stimulated outside investments of over $58 million, including more than $23 million from private sector companies. With the program's own investment, the total dedicated to research, training and commercialization was more than $136 million.

The NCE fostered commercialization of research last year by filing 105 patents, 31 of which have already been issued. Nineteen licences were granted and another 30 are being negotiated. Eleven spin-off companies were established – all in areas of high economic and social value. Our researchers published more than 3,500 papers in refereed journals. Perhaps most important, the NCEs helped shape the future for Canadian prosperity by training 4,881 research staff such as postdoctoral fellows, students, research associates and technicians to carry our strategy forward.

Designed as a partnership initiative of Industry Canada and the granting agencies – Science and Engineering Research Canada (NSERC), the Canadian Institutes of Health Research (CIHR) and the Social Sciences and Humanities Research Council (SSHRC) – the NCE program continues to meet its objective of improving the economy and our quality of life. This is made possible thanks to the support of universities, which are providing the networks with critical infrastructure and research personnel.

The achievements realized over the past year were a direct result of the vision and rigorous work of the scientific directors and the chairs of the boards of directors, who forged partnerships with research leaders from all sectors and across all disciplines. I want to thank them for their inestimable contributions. In doing so, I know I speak also for CIHR President Dr. Alan Bernstein and SSHRC President Dr. Marc Renaud.

I would also like to thank the Honourable David Emerson, Minister of Industry, and his predecessor, the Honourable Lucienne Robillard, for their support of the NCE Program.