Almost two weeks ago, the Government of Canada introduced new emergency measures specifically meant to support the tech and innovation sector amid COVID-19. This included funding of $250 million to Industrial Research Assistance Program (IRAP), $20 million to Futurpreneur Canada, and $962 million in new capital to Regional Development Agencies (RDAs).
RDAs “are the front line for economic development in Canada and help to address key economic challenges.”
Prime Minister Justin Trudeau highlighted at the time that the funding is meant to address gaps left by the federal emergency loan programs and the wage subsidies.
Following a recent conversation with Minister of Innovation Navdeep Bains about IRAP, BetaKit also sat down (virtually) with Minister of Economic Development Mélanie Joly, who is responsible for the RDAs.
The minister shared details on the latest commitment to RDAs and her thoughts on the steps the federal government has taken to support Canada’s tech and innovation sector.
Joly told BetaKit that details on how the $962 million will be disbursed by the RDAs is expected “very soon.” Though she was not able to provide exact timing, the minister noted, “I’ll be coming up very quickly with the details.”
“Basically, if you don’t have access to the wage subsidy, if you can’t get access to the Canadian Emergency Bank Account (CEBA) $40,000 [loans], and basically you’re falling through the cracks, come to see us at FedDev,” Joly stated.
It should be noted that during the interview Minister Joly often referenced FedDev, the RDA for southern Ontario, when asked generally about the agencies. BetaKit has confirmed, however, that the $962 million will be distributed amongst all the RDAs and Community Futures Development Corporations nationwide, not just FedDev.
RDAs are federal agencies under Innovation, Science and Economic Development Canada (ISED). The six RDAs across Canada span Atlantic Canada, Ontario, Western Canada, and the northern regions as well.
RELATED: Minister Bains says retaining top tier tech talent critical to Canada’s economic recovery
Of the new capital commitment to RDAs, $675 million is being allocated to the agencies with $287 million for Community Futures Network. Community Futures Network is a group of federal agencies placed across Canada that provide small business services in rural communities. The network’s funding is distributed through RDAs.
When the $962 million was announced on April 17, Joly said the investment is essentially doubling the budget of the RDAs. The federal 2018 budget allocated around $911 million to RDAs: $400 million over five years on an accrual basis, and $511 million over five years on a cash basis.
Joly noted that prior to the pandemic the development agency program had an annual budget of $1.3 billion, including support to the community futures organizations across the country.
While she would not provide exact details on how the funding will be disbursed, the minister said the $962 million will “provide measures such as loans” to small and medium-sized enterprises (SMEs) that aren’t able to access the existing federal emergency liquidity measures as well as traditional funding from financial institutions.
“Sometimes certain institutions are not willing to take the risk, but we will because this is what we need to do.”
“Sometimes certain institutions are not willing to take the risk, but we will because this is what we need to do to support our most innovative companies,” Joly stated to BetaKit. “[These companies] were already thriving before this pandemic, we had like the best year since the internet bubble last year, and we definitely know that we need to invest in them because they’ll be part of our economic recovery.”
ISED’s website notes RDAs “are the front line for economic development in Canada and help to address key economic challenges by providing regionally tailored programs, services, knowledge and expertise.”
It adds that the agencies are closely monitoring challenges presented by COVID-19, encouraging SMBs to reach out if they have been affected. At time of publication, no further details on the new funding are provided on either the federal RDA site or individual agency websites.
Joly told BetaKit the federal government worked to get more funding for the RDAs following conversations with a number of organizations including tech CEOs, chambers of commerce, the National Angel Capital Organization (NACO), and MaRS CEO Yung Wu.
RELATED: MaRS’ Yung Wu: “we have days, not weeks and months” to preserve innovation sector
Groups including the Canadian Digital Media Network wrote open letters to Joly and other ministers calling for increased funding, calling RDAs essential in helping Canada’s startup ecosystem with recovery.
“It is the first time that the RDAs will be playing a role in stabilizing the economy. Usually, RDAs are there in times of stimulus, and in times of to stimulate demand by making direct investments in communities across the country,” said Joly. “RDAs will be playing a role, eventually, I’m convinced, in the context of the recovery.”
Recognizing the recent closure of Toronto incubator OneEleven, Joly pointed to the role RDAs play in supporting incubators. Without providing details on how incubators might be able to access the additional funding she noted, “getting more funding through our incubators was key to make sure we keep that ecosystem very strong.”
Joly added the government will also be looking to partner with other organizations that can help support areas where RDAs are less present. When pressed, the minister said this will include working with “third parties” such as economic development agencies “to make sure that we’re much more present in the Toronto area, and the Montreal area, and big cities.”
Notably, FedDev covers southern Ontario including Toronto, with FedNor covering northern Ontario. Canada Economic Development for Quebec Regions’s (CED’s) mandate is province-wide.
The economic development minister also highlighted other programs the federal government has introduced for the innovation sector, including IRAP and the recently announced rent relief program.
Some tech CEOs have already expressed to BetaKit hopes that the rent program will be beneficial for their startups. However, one survey found only one in five Canadian small businesses expect their landlord to sign on to the Canadian Emergency Commercial Rent Assistance program.
“We’ve heard some gaps and for the wage subsidy or for the CEBA account, and we moved quickly to try to mend them,” said Joly, noting that the change in the wage subsidy criteria was particularly for startups and companies in a high growth phase.
RELATED: SR&ED payments beginning to flow to Canadian tech following delay caused by COVID-19
When asked whether the Government of Canada has plans to make changes to programs like SR&ED or introduce additional emergency measures for the sector, Joly told BetaKit “we will see how this new support lands.”
“We will continue to engage with leaders and startup communities all across the country,” she added. “Because that’s how we’ve been dealing with stakeholders and people since the beginning of the pandemic; getting out funding, seeing how it’s landing, tweaking, coming back, seeing how things are happening, and then making sure that it is always and always better.”
“There was no playbook for this pandemic,” she said. “We started from scratch and we went as quick as possible, knowing that we would be … basically building the plane as we fly it.”
February 20, 2020Smithsonian Magazine’s Gendered History of Human Computers article sheds light on how women launched and at one point, owned the digital age. Leading into this era, computers were humans, powering astronomy, war and the race into space. A large number of whom were women. Since the 1990s, women’s contributions to coding have dramatically reduced owing largely to sexism. The following infographic is based on that story’s data.
613.697.8818
suzanne.grant@cata.ca
In today’s world, commercial teams need to manoeuvre swiftly and smartly in an increasingly complex environment. Although technology opportunity moves at light speed, adoption, regulations, policy, procurement, talent and market readiness, tax and export complexity, and other obstacles can slow progress. Light speed meets human speed. Clearing the path for rocket ship aspirations of product market fit, sales acceleration, competitiveness, market domination and growth investment demands access to knowhow, experts and a broad network.
In today’s hyper communicated world, with broken search and splintered social media, trusted communities have an opportunity to extend their voice on issues of mutual interest. CATAAlliance is building a technology commercial leadership content hub for Canada’s tech community.
If this sounds like you forward your CV with a 100 word synopsis to : Cathi Malette at cmalette@cata.ca. Include the role title of interest in the subject line
July 12, 2019I met John when I was only 25 years old and the experience I shared with the CATA team set the trajectory of my career. To say that I am grateful for his mentorship would be an understatement.
Howard Stanley
Bell
I know he will be sorely missed.
Italia Corigliano
Our heartfelt condolences go out to Carol and his family and everyone at CATA. He leaves a very big hole to fill but his legacy is the capability in the organization that he created and developed that will enable CATA to move forward strongly in the future.
Dave Johnston
Sales Resource Group Inc.
Warmest and sincerest thoughts and prayers to you and other staff past and present.
Jim LeBlanc
J. LeBlanc International
Our most sincere condolences and sympathy for John’s family. We pray for them and wish them inner peace and patience.
I know John is in good hands now and he will be watching what our next efforts are to solve humanity problems with technology innovations.
Rest in peace my friend. We all miss you immensely.
Moe Vesal
Synetic Inc. & NuvolaCore Technology
I will miss him.
Peter G Bowie
He will be sorely missed indeed…Tough shoes to fill for sure.
Chris Kayser
My sincere condolences to his wife and family. My prayers assured at this time.
May his soul Rest in Peace
Mel Machado
The Canadian Association of Chiefs of Police (CACP) and the Canadian Advanced Technology Alliance (CATAAlliance) through its joint advisory body the eCrime Cyber Council are pleased to be hosting the Excellence in the Prevention and Investigation of Cybercrimes (EPIC) awards at #IPCS2019! These awards recognize and reward the valuable contributions by individuals and/or teams in Canadian law enforcement and private sector leaders who have demonstrated excellence, innovation and initiative in the prevention, detection, disruption, and dismantling of cybercrime actors and organizations, that has demonstrated a positive impact for cybercrime victims. There will be two EPIC awards presented: the first recognizing Cybercrime Investigators/Teams and the second recognizing Outstanding Cybercrime Product or Service from private sector innovators. Cybercrime Product or Service from private sector innovators.
NOMINATIONS ARE DUE BY SEPTEMBER 5 – to begin the process click on the relevant EPIC link below!
Using Technology to Accelerate Better Healthcare Outcomes with Bayer VP at the CATA Gala from CATAAlliance on Vimeo.
In this fifteen minute video, join Shurjeel Choudhri MD, FRCPC Senior Vice President and Head, Medical & Scientific Affairs, Bayer Inc., as he takes the stage at the CATA Gala to discuss ” Using Technology to Accelerate Better Healthcare Outcomes.” A Slide Presentation is also provided.
Dr. Choudhri was joined by Ohad Arazi, Chief Strategy Officer, Vice President Provider Solutions, TELUS Health as co keynote at the CATA Innovation Gala. Their presentations are complimentary.
Related:
Senior Vice President and Head, Medical and Scientific Affairs
Bayer Inc.
Dr. Choudhri is the Head of Medical and Scientific Affairs (M&SA) for Bayer Inc. He joined Bayer Corporation in 1999 and has had significant experience with the Bayer US and Global medical organizations. Before assuming his current role as Head of M&SA in Canada, Dr. Choudhri was a Global Clinical Leader, Anti-Infectives with Bayer Global Clinical Development.
Prior to joining Bayer, Dr. Choudhri was an assistant professor in the Departments of Medical Microbiology and Internal Medicine at the University of Manitoba in Winnipeg. He was also the director of the AIDS program at the St. Boniface General Hospital in Winnipeg; and the Manitoba satellite director for the Canadian HIV Clinical Trials Network.
Dr. Choudhri obtained his MD and also did his specialty training in internal medicine and sub-specialty training in infectious diseases at the University of Manitoba. Following completion of his training, he completed a senior research fellowship in Nairobi, Kenya. In 1996, he was awarded the Young Investigator Award by the Canadian Association of HIV Researchers. Dr. Choudhri has authored or co-authored over 100 scientific abstracts and has contributed to over 30 publications in peer reviewed journals. He is a passionate advocate for mobile and digital Health and is a member of the Canadian Advanced Technology Alliance (CATA) mobile health advisory board. Dr. Choudhri has played an active role in the creation of the Canadian Clinical Trials Asset Map and is a member of the Canadian Clinical Trials Coordinating Centre executive committee.
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group and ‘political party’ for Canada’s tech industry, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Quickly Advance Agendas with CATAAlliance
Contact: CATAAlliance at email info@cata.ca, tel: 613-236-6550, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
May 4, 2019Note: Attention community members, wishing to post content on any of the CATA managed social groups, we now need to confirm that you have provided crowdfunding support and have thus removed your posting.
See below for how to process your crowdfunding donation:
Can you help us advance our advocacy by making a donation to the CATA Competitive Innovation Nation Crowdfunding site at: https://chuffed.org/project/cata-advocacy
All funds raised will be invested in developing, designing, and producing content to support action on the Core Policy Planks & 15 active advocacy Campaigns, as well as a creating significant outreach and awareness to key influencers. As a not for profit, we rely on the support of community leaders such as yourself to sustain our work for the community.
You can view CATA’s advocacy program at: https://cata.ca/advocacy/
Note that donors have access to all CATA programs and services.
Thank you.
CATA info@cata.ca
Ps Crowdfunding options (click Donate Now icon): One-off or Monthly (sustaining) option and you have the choice, $Enter amount.
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group and ‘political party’ for Canada’s tech industry, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Quickly Advance Agendas with CATAAlliance
Contact: CATAAlliance at email info@cata.ca, tel: 613-236-6550, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
April 15, 2019Ontario Budget 2019 Highlights
Dear Community members,
The Lazaridis Institute in Waterloo is partnering with CATA for a national study on the role of international business in the success of Canadian technology firms.
Your participation will help Canadian tech firms improve what they do internationally.
To get started, there’s just two questions:
To answer these questions and offer guidance, should you wish, we have set up a very short qualifying 2 Question Survey at this URL: go to: https://goo.gl/forms/7nqk2oIlii8Z0KrD3
If you answer YES to the questions, you will then be invited to participate in our full survey (please!!!).
Everyone who completes the 2 Question Survey, will receive a complimentary copy of our research results.
For your time (about 10 minutes for the larger Survey), we will send you a $10 e-gift card that you can use at (e.g.) Amazon, Esso, Starbucks or Boston Pizza.
Thanks very much from both the Lazaridis Institute and CATA!
Sincerely,
Nicole Coviello, Lazaridis Research Professor;
Professor, Marketing; Research Director,
Lazaridis Institute for the Management of Technology Enterprises
ncoviello@wlu.ca
John Reid, CATA CEO
jreid@cata.ca
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group and ‘political party’ for Canada’s tech industry, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Quickly Advance Agendas with CATAAlliance
Contact: CATA at at info@cata.ca, tel: 613-699-8209, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
January 30, 2019
Alison Simpson, CMO & SVP Marketing & Communication, the TMX Group joins CATA TECHNOW for a video interview (4 minutes) with CATA CEO, John Reid on the subject of building an iconic brand, as it applies to corporations and countries. For Ms Simpson, brand is a promise to the world, and serves as a filter for actions and decisions, potentially a unifier for citizens with shared interests and values.
Alison has joined the team of CATA TECHNOW Analysts ready to comment on issues and topics of the day on CATA TECHNOW.
Alison Simpson
CMO, innovative business & brand builder, passionate people enabler
In a world with 500,000 new start-ups each month, Alison is renowned for helping established and emerging companies thrive in an increasingly challenging environment by ensuring their brand provides a differentiated competitive advantage that inspires employees, motivates consumers and grows the business. After a successful career building brands and delivering double digit growth for companies as diverse as Holt Renfrew, Apple, Molson, Rogers, Ford and Scotiabank, Alison founded her own marketing consultancy earlier this year. Forerunner Marketing provides fractional CMO services to a range of retail, start up and finance clients.
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Advance Agendas with CATAAlliance
Contact: CATAAlliance at info@cata.ca, tel: 613-236-6550, website: cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
Call to Action!
The CATAAlliance Innovation and Leadership Awards are the most prestigious annual awards conferred on individuals and corporations by Canada’s advanced technology community. They are presented in recognition of exceptional contributions made to the creation of science and technology-based industrial strength in Canada. Criteria for each award are explained as part of the category description in the on-line Nomination Guide.
View our 2018 Innovation Awards Winners.
CATA’s National Leadership Council will examine all nominations and determine the top leading candidates in each category. Please nominate today.
These leading candidates in each category will then be submitted to the CATAAlliance membership for voting and/or chosen by a selection Committee.
The 2019 winners will be announced at the 34th Annual CATAAlliance Innovation and Leadership Awards Gala May 15, 2019 at the Sprott School of Business at Carleton University, River Atrium & Conference Rooms, Richcraft Hall at Carleton University,in Ottawa, Ontario.
As a member of the Tulip Innovation team you will have the exciting opportunity to develop brand new features and maintain existing web applications to meet the huge demand for Tulip’s capabilities. You will build things quickly, iteratively, and try to get in front of real users within months.
As a senior software developer on our growing team, you will get a chance to develop complex web applications, using a healthy mix of Javascript (Node.js, React) and PHP. Working in a highly collaborative environment, you would help gather requirements, brainstorm ideas, architect solutions, solve technical issues, and strive to create a balance between the speed of delivery and feature-richness of Tulip products. This is an exciting role for someone who enjoys the challenge and responsibility of large projects.
Read full details: https://cata.ca/2018/seeking-senior-software-developer/
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Quickly Advance Agendas with CATAAlliance
Contact: CATA at at info@cata.ca, tel: 613-699-8209, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
Join us on Tuesday, January 22th, 2019 to listen to Dr. Diane Hamilton, President of Tonerra, award winning author of Cracking the Curiosity Code: The Key to Unlocking Human Potential, Founder of The Nationally Syndicated Leadership Radio Show, profiling international leaders making a difference. Interviewed by Dr. Cindy Gordon, CEO and Founder, SalesChoice.
Full Agenda: https://cata.ca/2018/webinar-culture-curiosity/
Register here: https://tinyurl.com/ybcz23d6
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Quickly Advance Agendas with CATAAlliance
Contact: CATA at at info@cata.ca, tel: 613-699-8209, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
December 22, 2018
Also in the News: Financial Literacy Added to the Competitive Innovation Nation Campaign
A balance sheet is a snapshot of what’s owned and what’s owed. The snapshot can be applied to consumers, governments and the private sector. I think most of us understand the concept.
But should we care about the health of Canada’s balance sheets?
If consumers, governments and the private sector load up on debt during the good times, then they struggle to repay those debts when the economy takes a turn for the worse.
Forecasters have done a poor job in estimating when collapses will actually occur, but they will occur and make no mistake about it, there will be economic and social consequences, including a further proliferation of user fees.
We will then have to decide what we can and cannot afford, and also accept a lower standard of living with higher unemployment as the marketplace forces us to take steps to strengthen our balance sheets.
Having a strong balance sheet, on the other hand, is the key to surviving a downturn. Strong balance sheets go hand and hand with the sustainability of social programs and safety nets.
So how are we doing?
Canada’s debt and deficit
Combined federal and provincial net debt nearly doubled from $833 billion in 2007/08 to a projected $1.4 trillion in 2016/17. This combined debt equals 67.5% of the Canadian economy or $37,476 for every man, woman, and child living in Canada.
Canadian governments (including local governments) collectively spent $62.8 billion on interest payments in 2015/16. That works out to 8.1% of total government revenue that year and $1,752 for each Canadian. The total amount spent on interest payments is approximately equal to Canada’s total spending on public primary and secondary education ($63.9 billion, as of 2013/14, the last year for which we have finalized data).
This is a far cry from the Prime Minister’s election campaign vow to balance the public books before the end of his government’s four-year mandate — a pledge that was central to the Liberal election platform.
While the PM is not responsible for the finances of every province and municipality, his government is setting the pace.
Simply put, we are over leveraged.
Household, personal debt levels in Canada
The OECD reports Canada’s household debt-to-GDP ratio had ballooned to 101 percent — significantly higher than any of the 35 developed and developing countries the OECD monitors.
The rapid accumulation of household debt for Canadians leaves our economy particularly vulnerable to shocks. Even a modest increase in interest rates will leave many Canadians in trouble.
The Private Sector
There’s a misconception that companies are cash rich while, in fact, they are actually drowning in debt.
In June 2017 the Canadian Centre for Policy Alternatives (CCPA) reported corporate debt increased $671 billion the past six years.
Canada now leads advanced economies in private-debt accumulation, which is one of the best predictors of economic crises, according to CCPA economist David Macdonald, the author of the Report.
A few strong companies do hold cash but debt is ballooning at other, weaker businesses, as investors rush to lend them debt-based investment capital.
These investors could face losses, perhaps significant losses, if economic growth falters. The broader economy is also vulnerable because companies with more debt have to cut back whenever downturns hit.
Economic Warnings
The government is leading us into a high risk dynamic in which we are a small fish in a big interconnected pond with significant branch plant ownership. Planned Liberal tax and regulatory changes will weaken balance sheets, putting us out of sync with major trading partners, especially the U.S.
As Canada changes risk to reward ratios downward, investment capital and talent pools will decide to go elsewhere or choose not take on the risk of starting and growing businesses in Canada.
As a case in point, the federal government is now advancing tax policy changes that adversely affect the small business community’s ability to grow and prosper. Insights into these negative changes are outlined in a new statement entitled, ” Coalition for Small Business Tax Fairness reacts to the federal government’s revised tax proposals.”
In January, 2018, Ontario increased its minimum wage an unprecedented 20 percent. This was followed by the loss in January of 59,000 part time jobs in Ontario. Across the Nation 137,000 part time jobs vanished, the biggest job decline in 9 years.
Also in January, the Bank of Canada increased the central bank rate by another quarter percent, the third increase since last summer. The Bank’s Governor, Stephen Poloz noted some economic warning signs, including uncertainty over the NAFTA Trade deal and that trade-policy uncertainty is expected to reduce investment by two percent over the next two years while in the past 16 months new foreign investment in Canada has fallen.
Canada’s Balance Sheet has been in decline for the past six months according to the Bank of Canada and the Bank warns that it is likely to continue to fall.
Faced with these realities, we need a Prime Minister who is focused on strengthening, as opposed to weakening, Canada’s balance sheets.
John Reid, Pres. & CEO, CATAAlliance, Canada’s One Voice for Innovation lobby group
To add your views to this Op-Ed and/or to confirm interest in engaging with us in advancing community advocacy or if you have an Op-Ed (read guidelines) to submit, please send an email to jreid@cata.ca
Dear Community members,
If you claim or plan to claim SR&ED Tax Credits, you will have an interest in the latest SR&ED Tax Incentive Program Update, prepared by CATA’s Sr. VP, Advocacy, Dr. Russ Roberts.
Executives can view the full update at: https://cata.ca/2018/sred-update-dec/
Dr. Roberts reports on Changes at the CRA, including links to source documents, Recent Evolutions in the Government’s thinking re ICT long term contribution to the Canadian Economy and a CATA Call to Action regarding 5 tax, finance and innovation recommendations.
For attendees of the CRA’S SR&ED national industry engagement technical workshops in the ICT sector (referred to above), there is a short Survey on the Workshops.
We want to understand your evaluation of these important ICT focused SR&ED technical workshops.
Sincerely,
John Reid, CATA CEO
jreid@cata.ca
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Op-In Groups: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Advance Agendas with CATAAlliance
Contact: CATA at at info@cata.ca, tel: 613-699-8209, website: www.cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
Call to Action!
Canada’s Innovation Policy Agenda Just Doesn’t Do It
As Canada’s Innovation advocacy Group, CATAAlliance, moderates crowdsourced ideas and guidance from over 800,000 opt-in members with strong Canadian interests. Their commentary provides direction for our efforts to promote positive changes that can provide Canada’s innovation based businesses the environment they need to compete and grow effectively.
Ultimately, our role is advocate for the changes needed to maximize the return on Canadians’ significant investments in science and technology through its commercialization by Canadians. The guidance we’re receiving tells us that there’s lots of room for improvement.
The creation of Canadian super clusters is a good first step to advancing Canada’s competitive innovation ranking, but stops short in having measurable outcomes. And recent NAFTA negotiations continue to keep the door open to Canada’s largest market and trading partner, the U.S., another important success.
Despite these positive steps, the government’s three-year effort to rationalize spending in a more innovative support system for S&T (Science and Technology) and to create a modern IP (Intellectual Property) regime does not address the perennial and key issue.
Specifically, tech leaders have argued – for close to a decade – that the critical challenge facing federal governments is how to significantly improve the return on Canadian Taxpayers’ investments in S&T linked business innovation. In our experience, the Liberals are not the first federal government to have ignored this critical issue as they developed their respective innovation agendas with limited prioritization given to what happens to the IP.
Some facts:
While we have not seen a careful analysis of the cost of the outflow of Canadian innovations from Canada in terms of a net benefit analysis, their impacts cannot be small. We believe that a financial audit is needed to put the issue into perspective.
Throughout work with the Conservative Government, CATA highlighted the need for better returns on our investments. Specifically, we argued that it is not the lack of Canadian S&T successes, creativity and innovations that are the problem. Rather, it is our governments’ failures to support the exploitation of the country’s successes to the fullest benefit of Canadians. We have carried forward the same message to the current Government.
Governments do not seem to grasp that a continued simplistic focus on throwing money at S&T support – either through academia or directly to businesses in the form of SR&ED (Scientific Research and Experimental Development) tax credits, grants, etc. – simply leads to the off shoring of the IP rewards for other countries to exploit?
So far, we have not seen the federal bureaucracy show much interest. On the other hand, the importance of the issue has been picked up in a spate of well-developed articles/Op-Eds, some offering ideas on what is needed.
CATA’s position is that it’s time for this Government to demonstrate true innovation leadership. Our call to action to all party leaders is to embrace 5 points:
All parties should embrace this guidance in election platforms. It will bring us much closer to having a system of innovation in which government, universities and the private sector work more closely together to move from invention to commercially viable solutions. This will not only create jobs, retain our talent in Canada, but also provide more solid returns to Canadians.
Co Authors: John Reid, CEO, CATAAlliance & Russ Roberts, Sr. VP Advocacy, CATAAlliance
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
https://www.linkedin.com/groups/37239/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Advance Agendas with CATAAlliance
Contact: CATAAlliance at info@cata.ca, tel: 613-236-6550, website: cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
November 2, 2018
50 Year of Doing the Same Thing, the Same Way
For 50 years the Canadian government has been following the same approach with regard to policy creation. They gather together a bunch of ‘experts’, ask their opinions and use that to either develop or support policy creation. This is the way the Barton report was created, and it was the basis for the strategy tables reports that they created this year.
What they don’t do is to actually do research to determine the underlying problems. They call it research but it is only opinion gathering. Using the ‘expert’ method only gets at symptoms and as a result we only ever address symptoms, not underlying causes. At the same time, they tend to ignore any actual real research because it doesn’t conform with their view of the way things should work. At one talk I gave to the Directors General of ISED, after going through the results of the research I was doing, one of them said that they couldn’t react to what I was telling them because they all had too much time invested in doing whatever they were doing now.
As an example of the lack of research, I was at a meeting of the Digital Strategy table or whatever it is called and the opening statement presented the hypothesis that we are experiencing a problem in Canada in scaling companies. I asked a simple question something to the effect of if there is a problem, have you measured the size of the problem, where we are now in numbers terms, where you think we should be and what the difference is. Of course they hadn’t done anything of the sort.
The whole idea of superclusters comes out of a recommendation regarding clusters in the Barton report but they have abandoned all economic rationale for cluster creation by creating superclusters. There is no such thing as superclusters. Successful clusters are local and best organized sectorial or vertically. And yet the superclusters include multiple geographies, multiple sectors and multiple verticals in order to create a tidy program. The Digital Media supercluster is claiming that they will create 50,000 jobs. If you do the math on job creation, basing that math on research instead of wishful thinking, it will create about 500 jobs, not 50,000.
Check out this for the math
Kevin Peesker’s, President, Microsoft Canada, has come the closest to defining success. He claims that the DMS will create 50,000 jobs. Really, I read it there. The investment “is projected to generate 50,000 new jobs that provide skilled and long-term employment opportunities for Canadians.” That seems like a pretty big number so I did some math to fact check the reasonableness of his claim.
I checked Microsoft’s own numbers to see if that’s the rate at which they generate jobs. They Have $83 billion of investment and they employ 131,000 people. That’s $633,000 of investment per employee. Based on that ratio, The Digital Media Supercluster, with $190 million should create about 300 jobs. I recently did some math on the average software company and it takes the average firm about $400,000 of capital to support an employee. On this basis, the DMS should create about 479 jobs.
479 jobs is a good sized tech company in Canada. It’s not a Supercluster but then did we really think $950 million would get us 5 Superclusters. I’m still looking forward to definitions of success that are achievable but if this is what the Superclusters are planning, then we are in for some big disappointments.
When I’m giving speeches I sometimes refer to an Article from the Globe. It talks about Canada’s 5 new R&D programs, designed because Canada lags the rest of the OECD at R&D. Sounds like it could have been written yesterday but it’s from April 1967. We’ve been spending billions of dollars on ineffective policy development for 50 years and we keep doing things the same way.
About Charles Plant, Senior Fellow, the Impact Centre
Charles Plant is a Senior Fellow with the Impact Centre, working to develop research and education programs in innovation and entrepreneurship.
He is a serial entrepreneur who has been an officer, director or investor in a dozen technology companies. Charles has also provided financing, consulting and coaching services to several dozen other technology companies. He was co-founder and CEO for 15 years of Synamics, a telecommunications software firm that provided mass calling platforms to telcos.
He spent four years at MaRS ending as CFO but spent most of his time as Managing Director, heading up a group of former entrepreneurs and specialists who developed thought leadership, provided education, mentorship, market intelligence and capital to over 2,000 technology startups in Ontario.
Active for much of his career in the world of finance, Charles has been a corporate banker, an investment banker and served on the Management Committee and as CFO of the Investment Accelerator Fund (IAF) at MaRS and CFO of MaRS Innovation.
As an educator, Charles spent seven years on the faculty of York’s Schulich School of Business teaching in the MBA program and now teaches management and leadership skills at the University of Toronto’s School of Continuing Studies. He has an MBA in marketing and is a CPA and Chartered Accountant. His blogs and other resources for entrepreneurs can be found at https://scaleupos.com.
Email: cplant@imc.utoronto.ca
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
Opt-In: https://cata.ca/communities/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Advance Agendas with CATAAlliance
Contact: CATAAlliance at info@cata.ca, tel: 613-236-6550, website: cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
October 25, 2018
Canada’s Innovation Policy Agenda Just Doesn’t Do It
The creation of superclusters is a good first step to advancing Canada’s competitive innovation ranking. And the USMCA trade agreement keeps the door open to Canada’s largest trading partner, the U.S., which is another important success.
But despite these positive steps, the government’s three-year effort to create a more innovative support system for S&T (science and technology) along with a modern IP (intellectual property) regime doesn’t address the perennial and key issue.
Specifically, tech leaders have argued – for close to a decade now – that the critical challenge facing federal governments is how to significantly improve the return on Canadian taxpayers’ investments in S&T-linked business innovation. This isn’t the first federal government to have ignored this critical issue, as innovation agendas have often been developed with limited prioritization given to IP.
Some facts:
A large portion of our S&T graduates, particularly information technologists, take their knowledge straight to the U.S. after graduating. In the computer sciences and engineering domains, the brain drain at some highly ranked universities can be up to 40 per cent of graduates.
In the past five years 183 Canadian companies have been acquired, with nearly 70 per cent of the acquirers being U.S. firms. According to PwC, 77 per cent of Canadian tech founders are planning to eventually exit their company.
How many of these companies selling to foreign entities were funded with taxpayer money? Should more funding go to companies focused on a long-term, stay-in-Canada vision, as was suggested by SOTI Inc.’s Carl Rodrigues in The Globe in 2017?
While we haven’t seen a net benefit analysis of the cost of the outflow of Canadian innovations from Canada, the impact cannot be small. A financial audit is necessary to put the issue into perspective.
CATA has consistently argued that there’s no shortage of S&T success, creativity and innovation in Canada. The issue, rather, is our government’s failure to help exploit the country’s successes to the fullest benefit of Canadians.
Governments don’t seem to grasp that a continued, simplistic focus on throwing money at S&T support – either through academia or directly to business in the form of SR&ED (Scientific Research and Experimental Development) tax credits or grants – simply leads to the offshoring of IP rewards for other countries to exploit.
So far, we haven’t seen the federal government show much interest. But it’s time for this government to demonstrate true innovation leadership.
Our call to action, to all party leaders, is to embrace the following five points:
Recognize that while Canada remains strong in terms of the quality and impact of its scientific output, the country lags behind in commercializing that output and generating wealth;
Create a 21st century tax commission focused on improving the nation’s innovation support through fiscal measures, then test all recommended measures through public consultations and deliver a final report in 12 months;
Propose improvements to SR&ED and test them through public consultations;
Support current work on developing a modern IP system with appropriate fiscal measures for IP exploitation in Canada, while covering some of the costs of the patent process; and,
Publish benchmarking metrics comparing Canada to other leading countries building innovative capacity.
If all parties embraced this guidance, it would bring us much closer to a system of innovation in which government, universities and the private sector work closer together to move from invention to commercially viable solutions.
This will not only create jobs and retain Canadian talent, but also provide more solid returns to Canadians.
As Canada’s innovation advocacy group, CATAAlliance moderates crowdsourced ideas and guidance from more than 800,000 opt-in members with strong Canadian interests. They provide direction for our efforts to promote positive changes that can provide Canada’s innovation based businesses the environment they need to compete and grow effectively.
Co Authors: John Reid, CEO, CATAAlliance & Russ Roberts, Sr. VP Advocacy, CATAAlliance
October 20, 2018Various Commentators:
https://www.theglobeandmail.com/opinion/editorials/article-globe-editorial-why-are-canadian-governments-funding-american-tech/
https://www.theglobeandmail.com/business/commentary/article-canadas-innovation-economy-has-been-over-hyped-and-needs-a-reality/
CATA Research and Advocacy:
The above analysis and commentary is supported by research papers and Department of Finance Tax Expenditure reports:
Event Promotion (e.g., webinars, seminars, Conferences) is one of the 10 Ways to Advance Your Agenda with CATA
https://cata.ca/business-resources/
Examples:
ProductCamp Ottawa 2018 event (November 10, 2018): CATA Partnered with Discount Code
iSisters Awareness Event, CATA supported (Sept., 27th, 5:30 – 7:30 pm, Ottawa)
Canadian launch of The Robot Of The Year Competition (Sept. 17th, Toronto, Complimentary Reception)
About CATAAlliance
Interact with your Innovation Peer Group Now (No Tech Firm Left Behind)
https://www.linkedin.com/groups/37239/
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.
Support CATA Advocacy Today through Crowdfunding
10 Ways to Advance Agendas with CATAAlliance
Contact: CATAAlliance at info@cata.ca, tel: 613-236-6550, website: cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy
October 11, 2018
Hashtags: (copy# and tag)
Twitter Names
@BlackBerry
@SNCLavalin
@mindbridge_ai
@Pythian
@LazaridisInst
@Telfer_uOttawa
@PaulBrentTech
@SalesChoice_inc
Power and Engagement Words for Social Media
best-seller
easy
step-by-step quick tips
quick results
2 minutes or less
instantly
quickly
now
excusive offer
members only
first time
twofer…firs the word YOU and second, your prospects name
Will you join my group? Because it will make you smarter.
October 10, 2018
Using Youtube to announce advocacy (CATA TECH NOW Live)