Summary of the Evaluation of ACOA's Economic Development Programming

The Evaluation of the Atlantic Canada Opportunities Agency’s Economic Development Programs assessed the relevance, effectiveness and efficiency of grants and contributions made under the Atlantic Innovation Fund (AIF), the Business Development Program (BDP) and the Innovative Communities Fund (ICF) between April 1, 2018, and March 31, 2022.

The evaluation used a mixed-methods approach, where data from multiple lines of evidence were considered in the formulation of findings. The programs were not evaluated in isolation, but rather were examined through the lens of their relative value and ongoing contribution to Agency outcomes in the context of the Regional Economic Growth through Innovation (REGI) program. It also took into consideration the rapidly-evolving and inter-connected nature of current economic barriers as well as the impacts of the COVID-19 pandemic on the ability of the Agency to deliver its core programming.

Findings

Compounded by the COVID-19 pandemic, the greatest barriers to economic growth are evolving rapidly and becoming increasingly complex and interconnected. There is an opportunity to clarify expected outcomes of programs and ensure Agency priorities and resources are aligned with current needs and barriers. There is also an opportunity to improve the availability of reliable data on the nature and impacts of funded projects.

Atlantic Innovation Fund (AIF): With dwindling investments in recent years, along with the introduction of the Regional Economic Growth through Innovation (REGI) program and recent changes to the federal government’s approach to supporting innovation, the evaluation found that AIF is no longer relevant or contributing to the achievement of Agency outcomes.

Business Development Program (BDP): BDP’s relative value lies in its flexibility, which allows the Agency to provide regionally-relevant programming that is responsive to emerging opportunities and barriers. It has also proven to be an effective vehicle through which to rapidly flow relief and recovery funding critical to the survival of Atlantic Canadian businesses. There is, however, an opportunity to clarify program expected results.

Innovative Communities Fund (ICF): A large percentage of Atlantic Canada’s population resides in small rural communities, and the evaluation found that there continues to be a need for dedicated programming focused on supporting their growth. ICF offers unique place-based programming that responds to the specific needs of Atlantic Canadian communities. There is an opportunity to increase focus on investments that build the capacity of communities, especially in those areas that drive population growth and retention.

Recommendations

1. Ensure the continued alignment of key Agency priorities and resources with current drivers of economic growth and the barriers that constrain it:
   • Building upon work done pre-pandemic, clarify the Agency’s path forward for addressing the skills and labour shortage
   • Streamline the Agency’s suite of programming and reduce redundancies by eliminating AIF
   • Develop and implement a comprehensive, proactive path forward for the Agency’s approach to inclusive growth
   • Develop a coordinated approach to supporting SMEs address barriers related to supply chain disruptions
2. Implement an integrated change agenda that supports excellence in program delivery and accurate tracking and reporting of investments:
   • Ensure availability of high-quality data related to the nature of projects and their impacts on the Atlantic Canadian economy
   • Ensure reliable data is available on the profile of the Agency’s client base in terms of representation of diverse groups
   • Remove barriers and streamline processes to help program delivery staff continue to provide excellent service to clients and do their jobs more efficiently
   • Increase support for crucial role staff play in convening, pathfinding and coordinating ecosystem partners and advocating for needs of businesses and communities
   • Update internal program governance documentation to clarify expected results and eligible activities of each program

Why it matters:

As the federal government department responsible for economic development in Atlantic Canada, it is important for ACOA to be able to rapidly pivot in response to evolving economic conditions and priorities (e.g., Green Economy) and ensure its programs, policies and processes remain aligned with the factors that drive economic growth and address the barriers that constrain it. To do this, senior management needs access to real-time, reliable data on the nature of the projects in which the Agency invests and the impacts they are having on the economy. Reliable project data also supports the Agency’s ability to ensure its programs are aligned with Government of Canada priorities and are meeting the needs of diverse groups. Lack of reliable data also limits the ability of evaluations to accurately assess the relevance and performance of the programs.

The introduction of REGI fundamentally changed the way the Agency uses its flagship program, BDP. With the large majority of commercial investments now being funded through this new program, it is timely for the Agency to re-think its suite of programming with a view to ensuring that programs are optimized and are being put to their highest and best use. This means eliminating programs such as AIF that are no longer contributing to outcomes and in the case of BDP, it means leveraging its flexibilities to offer regionally-relevant solutions to local economic challenges. For ICF this means increasing investments in projects that improve the capacity of communities to seize opportunities that drive population growth. To do so will require a common understanding of the broad results each program is expected to achieve, and the types of projects it is intended to support.

The Management Response and Action plan can be found in the full report.