2020-2021 Departmental results report

From the Minister

Through adversity, we often uncover our greatest strengths. As Minister of International Trade, Export Promotion, Small Business and Economic Development, I was proud to see Canadians come together during the COVID-19 pandemic. Although foreign direct investment around the world slowed, global companies continued to see Canada as a stable, attractive investment destination. We also gained traction in countries that have not typically chosen to invest in Canada.

I’m pleased to present the 2020–2021 Departmental Results Report, which outlines Invest in Canada’s results and accomplishments. These successes are underscored by a commitment to maintaining strong partnerships and ensuring continued, coordinated efforts from key partners such as the Trade Commissioner Service, and Canada’s provincial, territorial and municipal governments.

This report highlights the agreements, tools and initiatives that Invest in Canada put in place in the past year to fulfill its mandate of bringing together all levels of government and private sector partners to provide seamless, single-window service to global investors. Together with its partners, Invest in Canada launched the Foreign Direct Investment Attraction Strategy, which will guide Canada’s efforts in the years to come. They have also built a strong network to share information, work collaboratively, leverage opportunities and create more jobs for Canadians. By adapting quickly to travel restrictions, Invest in Canada continued to raise awareness among investors through virtual events and webinars, working directly with investors to facilitate investment deals.

With one in eight Canadians employed by foreign-owned businesses, investment will continue to be critical to Canada’s economic recovery and the long-term wellbeing of Canadians. By strengthening networks and implementing systems to support them, Invest in Canada has established a successful foundation for attracting foreign investment and welcoming continued reinvestment in Canada. The important work completed in 2020–2021 will allow Canada to respond to new opportunities and showcase our unique strengths to the world.

From the Chair of the Board of Directors

We find the best to invest

Like so much else in the world during the global COVID-19 pandemic of 2020-21, foreign direct investment entered a state of flux from which it is only now beginning to emerge. Invest in Canada adapted to the shock of the pandemic with a strategic and coordinated approach that continues to attract the FDI crucial to building Canada’s economy and communities.

Globally, foreign direct investment fell sharply in 2020, and Canada was not spared from the downturn. Nevertheless, the team at Invest in Canada facilitated 18 major investments and secured one high-value retention in 2020-21, representing $1.5 billion into the Canadian economy and securing more than 2,000 jobs for Canadians.

As the world looks toward a post-COVID future, Invest in Canada is uniquely positioned and perfectly poised to seize on emerging opportunities, ranging from traditional sectors of Canadian strength to future-focused industries such as artificial intelligence, hydrogen and other forms of green energy, clean technologies, agri-tech, advanced manufacturing and rapidly developing supply chains in battery electric vehicles. We actively seek out the most committed and high-quality investors from around the world and work with them to make the most impactful investments in Canada. In so doing, we help investors maximize the success of their financial commitments, while contributing to a more prosperous, sustainable Canadian economy.

My colleagues and I on the Board of Directors of Invest in Canada bring global business expertise and insights, as well as deep ties to the Canadian business community, including the vibrant small business ecosystem. The Board of Directors is committed to supporting Invest in Canada’s mandate to seek out and attract the best in global investment.

We are confident that Canada will increasingly become a go-to destination for global FDI, and that Invest in Canada is playing a key role in bringing the world’s best to our home and native land.

From the Chief Executive Officer

As we begin to gain momentum and navigate our way forward following a challenging year, it is important to recognize our successes. Invest in Canada has proven to be instrumental in the Canadian foreign direct investment landscape. Our agency is small but mighty, and the successes outlined in this report reflect that our efforts of the past were well directed.

In 2020–2021, we worked directly with investors to facilitate important investment projects that had high dollar values and will result in thousands of jobs for Canadians. We led the efforts of 16 government departments and agencies to develop Canada’s Foreign Direct Investment Attraction Strategy, which will guide Canada’s future investment priorities. We released our first-ever Foreign Direct Investment (FDI) Report to share our results with Canadians and global investors. 

We reinforced our role as a trusted advisor to investors, doubling efforts to connect and engage with them virtually and compiling a list of 12 key services to meet the needs they identified and providing a coordinated service to clients from all levels of government. We launched a targeted promotion campaign in key markets worldwide and pivoted Canada’s presence at global events to a virtual format while travel was limited. We convened regular meetings with our federal, provincial, territorial, and municipal partners and introduced online tools to improve collaboration. At our city partners’ request, we commissioned a City Comparative Index tool to help investors make informed investment decisions. Our new digital tool, InfoZone features timely, investment-driven data that partners can use in their talks with foreign investors.

As an agency, we understand that the key to securing Canada’s position as a top-of-mind global investment destination lies in integrating our strengths. By consolidating the expertise, products, and insights of our partners, we can deliver high-value, seamless service to foreign investors. In the long-term, this strategy will help Canada stand out on the global stage and ensure economic stability and prosperity for all Canadians.

Results at a glance

The 2020–2021 fiscal year proved to be a challenging one for foreign direct investment (FDI) worldwide. Developed countries were particularly affected by significant drops in FDI due to the global economic slowdown caused by the COVID-19 pandemic. Within this context, Canada was on par with other G7 countries, ranking third in FDI flows behind the United States and Germany. Many of the results outlined in our 2020–2021 Departmental Plan relied heavily on a ‘business as usual’ model and were therefore significantly impacted by the economic downturn caused by an unpredictable pandemic. In response, Invest in Canada (IIC) pivoted operations quickly. We leveraged virtual platforms to meet with investors, targeted growing sectors and opportunities, and strengthened our national network.

Despite these challenges, IIC facilitated 18 major investments and secured one high-value retention, representing $1.5 billion to the Canadian economy and over 2,000 jobs for Canadians. Our nimble team of 67 full-time staff achieved these results with an actual spend of $29,622,107.

Our 2020–2021 activities were designed to meet the three targeted results outlined in our Departmental Plan:

Position Canada’s brand as a global leader in investment attraction

• Launched IIC’s first global integrated advertising campaign in support of the Government of Canada’s trade diversification strategy.
• Produced IIC’s first report on foreign direct investment in Canada, the FDI Report 2019, which included video spotlights on FDI success stories in Canadian communities.
• Participated in 64 virtual events in 12 countries, including 18 Signature Events for which IIC was a main partner.
• Launched several media partnerships to promote Canada as an investment destination in target sectors and countries.
• Completed over 250 investment supportive products, such as investor-facing proposals, sector factsheets, infographics, and event collaterals.

Establish Canada as a location and destination of choice for global investment

• Identified investor needs and developed 12 key services offered across Canada to global investors by the Investor Services team.
• Launched the City Comparative Index Tool, which features data and analytics to allow investors to compare individual Canadian markets in terms of labour, taxes, transportation, and other key selection factors to help them identify the best potential locations for their investment.
• Hosted or joined 100+ webinars as a speaker.
• Completed 861 calls, events, and meetings with regional and industry stakeholders.
• Supported 11 Prime Minister, Deputy Prime Minister or Ministerial-level trips or engagements.

Give foreign investors simplified access to partners, services, and tools to accelerate their investment

• Launched the innovative InfoZone digital platform as a one-stop central interface to allow partners to access data, information, research, and marketing material. This gives partners across Canada real-time, centralized access to the information they need for their daily interactions with investors.
• Developed Canada’s Foreign Direct Investment Attraction Strategy in partnership with 16 government departments and agencies to enhance collaboration and direct future priorities.
• Convened bi-weekly meetings with key economic development partners to ensure a coordinated approach when working with global investors and better connect them to the right expert in the right location.
• Coordinated opportunities for regional development organizations to share investment leads directly with the TCS’s Investment Officer network.
• Introduced the Canada Connexions customer relationship management system.

KEY RESULTS ACHIEVED IN 2020–2021

Together with our partners, we made an impact in 2020–2021, achieving the following results:

• 34% increase in awareness/recognition of the Invest in Canada brand, highlighting the positioning of Canada’s brand as a global leader in investment attraction.
• 2.7% increase in Canada’s FDI stock, strengthening Canada’s position as a destination of choice for global investment in a year that saw an overall drop in FDI worldwide as a result of the pandemic.
• 166 investment leads facilitated with partners providing simplified access for global investors to partners, services, and tools to accelerate their investments.

For more information on Invest in Canada’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.

Results: what we achieved

Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph
The following graph presents planned (voted and statutory spending) over time.

Invest in Canada’s funding profile has matched the maturation of the organization. Now that IIC is fully operational, its funding profile has stabilized. The organization is responsible for all employee benefits and pension contributions annually.

Budgetary performance summary for Core Responsibilities and Internal Services (dollars)

Core responsibilities and Internal Services	2020–21 Main Estimates	2020–21 Planned spending	2021–22 Planned spending	2022–23 Planned spending	2020–21 Total authorities available for use	2018–19 Actual spending (authorities used)	2019–20 Actual spending (authorities used)	2020–21 Actual spending (authorities used)
Foreign Direct Investment Attraction	$27,433,245	$27,433,245	$27,417,245	$26,889,245	$29,236,075	$4,884,967	$19,935,683	$22,370,508
Internal Services	$6,858,311	$6,858,311	$6,854,311	$6,722,311	$6,858,311	$5,833,968	$6,160,767	$7,251,599
Total	$34,291,556	$34,291,556	$34,271,556	$33,611,556	$36,094,386	$10,718,935	$26,096,450	$29,622,107

2020–21 Budgetary actual gross spending summary (dollars)

Core responsibilities and Internal Services	2020–21 Actual gross spending	2020–21 Actual revenues netted against expenditures	2020–21 Actual net spending (authorities used)
Foreign Direct Investment Attraction	$22,370,508	Nil	$22,370,508
Internal Services	$7,251,599	Nil	$7,251,599
Total	$29,622,107	Nil	$29,622,107

Corporate Information

Reporting framework

The Invest in Canada Hub’s Departmental Results Framework and Program Inventory of record for 2020–21 are shown below.

Text Version

Departmental Results Framework

• Core Responsibility: Foreign Direct Investment Attraction
• Departmental result 1: Canada’s brand is seen as a global leader in investment attraction
  • Indicator: Improved score in global FDI attractiveness index
  • Indicator: Increased awareness/recognition of the Invest in Canada brand
  • Indicator: Percentage increase in “my opinion of Canada as a prominent global leader for foreign investment”
• Departmental result 2: Canada is a location and destination of choice for global investment
  • Indicator: Percentage increase of Canada’s FDI stock
  • Indicator: Increase in FDI stock from key target markets
  • Indicator: Increase in FDI investments from key sectors
• Departmental result 3: Global investors have simplified access to partners, services and tools to accelerate their investment
  • Indicator: Number of investors/decision makers using the independent Cost Comparative Analysis Tool for FDI decisions
  • Indicator: Number of partners collaborating to access, build and format data sets to be highly available to potential investors
  • Indicator: Number of investment leads facilitated with partners
• Program Inventory
  • Marketing
  • Investor Services
  • Data Partnerships and Pan-Canadian Collaboration
• Internal Services 

Changes to the approved reporting framework since 2019–20 

The reporting framework in the 2020-21 Departmental Plan has been refined since 2019-20 to include departmental results and indicators which were not included in last year’s departmental plan.

Structure	2019–20	2020–21	Change	Reason for change
Core responsibility	Foreign Direct Investment Attraction	Foreign Direct Investment Attraction	No change	Not applicable
Result	Not applicable	Canada’s brand is seen as a global leader in investment attraction	New result	Footnote Note 1
Result	Not applicable	Canada is a location and destination of choice for global investment	New result	Footnote Note 1
Result	Not applicable	Global investors have simplified access to partners, services and tools to accelerate their investment	New result	Footnote Note 1
Program	Marketing and Outreach	Marketing	Title change	Footnote Note 2
Program	Partnerships & Strategy Development	Data Partnerships and Pan-Canadian Collaboration	Title change	Footnote Note 2

Footnotes for table: Changes to the approved reporting framework since 2019–20

Note 1

New result and indicators as the departmental results framework was not established for 2019-20.

Return to footnote Note 1 referrer

Note 2

Better reflects recent changes to refine program descriptions.

Return to footnote Note 2 referrer

Supporting information on the program inventory

Financial, human resources and performance information for the Invest in Canada Hub’s Program Inventory is available in GC InfoBase.^iv

Supplementary information tables

The following supplementary information tables are available on the Invest in Canada Hub’s website:

• Reporting on Green Procurement
• Details on transfer payment programs
• Gender-based analysis plus
• Horizontal initiatives
• Up-front multi-year funding

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures^v. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA+ of tax expenditures.

Organizational contact information

email: CorporateServices@invcanada.ca

website: www.investcanada.ca

Appendix: definitions

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

core responsibility (responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a 3 year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority (priorité)

A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result (résultat ministériel)

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

experimentation (expérimentation)

The conducting of activities that seek to first explore, then test and compare the effects and impacts of policies and interventions in order to inform evidence-based decision-making, and improve outcomes for Canadians, by learning what works, for whom and in what circumstances. Experimentation is related to, but distinct from innovation (the trying of new things), because it involves a rigorous comparison of results. For example, using a new website to communicate with Canadians can be an innovation; systematically testing the new website against existing outreach tools or an old website to see which one leads to more engagement, is experimentation.

full time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person year charge against a departmental budget. For a particular position, the full time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.

gender-based analysis plus (GBA+) (analyse comparative entre les sexes plus [ACS+])

An analytical process used to assess how diverse groups of women, men and gender-diverse people experience policies, programs and services based on multiple factors including race ethnicity, religion, age, and mental or physical disability.

 

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2020–21 Departmental Results Report, those high-level themes outlining the government’s agenda in the 2019 Speech from the Throne, namely: Fighting climate change; Strengthening the Middle Class; Walking the road of reconciliation; Keeping Canadians safe and healthy; and Positioning Canada for success in an uncertain world.

horizontal initiative (initiative horizontale)

An initiative where two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

non budgetary expenditures (dépenses non budgétaires)

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement)

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting (production de rapports sur le rendement)

The process of communicating evidence based performance information. Performance reporting supports decision making, accountability and transparency.

plan (plan)

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes)

Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.

result (résultat)

A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible)

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.