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Ontario Commercialization Network to be Reformed?

The Ontario Commercialization Network Steering Committee Report was delivered to the Minister late February.  PWC produced a report on OCN prior to the Steering Committee Report but it was not made public.

ocnmap

The report makes some blunt assessments of serious problems with  Ontario’s current approach to economic development and commercialization.  Some key findings include:

  • Lack of co-ordination and sharing across many fragmented organizations
  • Lack of overall governance
  • Lack of clear entry-point for clients/entrepreneurs
  • Lack of metrics and performance targets
  • Need for better co-ordination between Provincial and Federal governments
  • Economic conditions demand quick action

Key recommendations include specifics related to:

  • Fixing the governance model
  • Fixing the delivery model
  • Reducing overlaps of products and services within the Province and between the Province and Federal programs

The report was one of the best i’ve seen so far – it cuts directly to the issues and provides some very rational recommendations.

Nortel US Patents Granted 2007 – Ranked 68th

From the US Patent Office -Nortel was ranked 68th overall relative to US patent filings in 2007, details are shown in the table below.

McKinsey recently published an article summarizing their analysis of US patent filings as a proxy to predict/identify centers/clusters of innovation.   Volume of patents is reflected by the size of the bubble, growth in patents and diversity of patent filing companies are the two axis.

screenshot_49

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Ranked List of Organizations with 40 or More Patents, as Distributed by  the Year of Patent Grant and/or the Year Of Patent Application Filing Granted: 01/01/2007 – 12/31/2007

2007 All Years
INTERNATIONAL BUSINESS MACHINES CORPORATION Patents By Year of Grant: 3125 3125
SAMSUNG ELECTRONICS CO., LTD. Patents By Year of Grant: 2723 2723
CANON KABUSHIKI KAISHA Patents By Year of Grant: 1983 1983
MATSUSHITA ELECTRIC INDUSTRIAL CO., LTD. Patents By Year of Grant: 1910 1910
INTEL CORPORATION Patents By Year of Grant: 1864 1864
MICROSOFT CORPORATION Patents By Year of Grant: 1637 1637
TOSHIBA CORPORATION Patents By Year of Grant: 1519 1519
MICRON TECHNOLOGY, INC. Patents By Year of Grant: 1476 1476
HEWLETT-PACKARD DEVELOPMENT COMPANY, L.P. Patents By Year of Grant: 1466 1466
SONY CORPORATION Patents By Year of Grant: 1454 1454
HITACHI, LTD Patents By Year of Grant: 1381 1381
FUJITSU LIMITED Patents By Year of Grant: 1293 1293
SEIKO EPSON CORPORATION Patents By Year of Grant: 1205 1205
GENERAL ELECTRIC COMPANY Patents By Year of Grant: 911 911
INFINEON TECHNOLOGIES AG Patents By Year of Grant: 847 847
DENSO CORPORATION Patents By Year of Grant: 753 753
TEXAS INSTRUMENTS, INCORPORATED Patents By Year of Grant: 749 749
RICOH COMPANY, LTD. Patents By Year of Grant: 727 727
SIEMENS AKTIENGESELLSCHAFT Patents By Year of Grant: 698 698
LG ELECTRONICS INC. Patents By Year of Grant: 682 682
NOKIA CORPORATION Patents By Year of Grant: 679 679
HONDA GIKEN KOGYO KABUSHIKI KAISHA (HONDA MOTOR CO., LTD.) Patents By Year of Grant: 677 677
Fujifilm Corporation Patents By Year of Grant: 660 660
SHARP KABUSHIKI KAISHA (SHARP CORPORATION) Patents By Year of Grant: 646 646
SUN MICROSYSTEMS, INC. Patents By Year of Grant: 610 610
NEC CORPORATION Patents By Year of Grant: 600 600
CISCO TECHNOLOGY, INC. Patents By Year of Grant: 580 580
ROBERT BOSCH GMBH Patents By Year of Grant: 568 568
KONINKLIJKE PHILIPS ELECTRONICS N.V. Patents By Year of Grant: 547 547
HONEYWELL INTERNATIONAL INC. Patents By Year of Grant: 538 538
BROADCOM CORPORATION Patents By Year of Grant: 533 533
SILVERBROOK RESEARCH PTY. LTD Patents By Year of Grant: 533 533
XEROX CORPORATION Patents By Year of Grant: 514 514
RENESAS TECHNOLOGY CORPORATION Patents By Year of Grant: 505 505
EASTMAN KODAK COMPANY Patents By Year of Grant: 492 492
TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. Patents By Year of Grant: 467 467
3M INNOVATIVE PROPERTIES COMPANY Patents By Year of Grant: 459 459
MITSUBISHI DENKI KABUSHIKI KAISHA Patents By Year of Grant: 459 459
SANYO ELECTRIC CO., LTD. Patents By Year of Grant: 454 454
LUCENT TECHNOLOGIES INC. Patents By Year of Grant: 432 432
BOEING COMPANY Patents By Year of Grant: 428 428
LG. PHILIPS LCD CO., LTD. Patents By Year of Grant: 418 418
SEMICONDUCTOR ENERGY LABORATORY CO., LTD. Patents By Year of Grant: 413 413
MOTOROLA, INC. Patents By Year of Grant: 411 411
HYNIX SEMICONDUCTOR INC. Patents By Year of Grant: 405 405
E. I. DU PONT DE NEMOURS AND COMPANY Patents By Year of Grant: 369 369
DELPHI TECHNOLOGIES, INC. Patents By Year of Grant: 356 356
TOYOTA JIDOSHA K.K. Patents By Year of Grant: 351 351
GENERAL MOTORS CORPORATION Patents By Year of Grant: 343 343
TDK CORPORATION Patents By Year of Grant: 338 338
UNIVERSITY OF CALIFORNIA, THE REGENTS OF Patents By Year of Grant: 333 333
BROTHER KOGYO KABUSHIKI KAISHA Patents By Year of Grant: 325 325
FREESCALE SEMICONDUCTOR, INC. Patents By Year of Grant: 322 322
HITACHI GLOBAL STORAGE TECHNOLOGIES NETHERLANDS B.V. Patents By Year of Grant: 322 322
HON HAI PRECISION IND. CO., LTD. Patents By Year of Grant: 321 321
FORD GLOBAL TECHNOLOGIES, L.L.C. Patents By Year of Grant: 315 315
SAMSUNG SDI CO., LTD. Patents By Year of Grant: 315 315
FUJI XEROX CO., LTD. Patents By Year of Grant: 313 313
ADVANCED MICRO DEVICES, INC. Patents By Year of Grant: 304 304
FUJI PHOTO FILM CO., LTD Patents By Year of Grant: 294 294
APPLIED MATERIALS, INC. Patents By Year of Grant: 285 285
HALLIBURTON ENERGY SERVICES, INC. Patents By Year of Grant: 284 284
AGILENT TECHNOLOGIES, INC. Patents By Year of Grant: 282 282
GENENTECH, INC. Patents By Year of Grant: 281 281
OKI ELECTRIC INDUSTRY CO., LTD. Patents By Year of Grant: 279 279
QUALCOMM, INC. Patents By Year of Grant: 278 278
AT&T CORP. Patents By Year of Grant: 273 273
NORTEL NETWORKS LIMITED Patents By Year of Grant: 272 272
ALTERA CORPORATION Patents By Year of Grant: 268 268

The Death of Canadian R&D Spending

The 2008 report on Canadian R&D spending from Research Infosource identifies the following top 10 R&D spenders -

Nortel $1.851B
BCE $1.26B
Magna $.725B
Pratt and Whitney $.444B
IBM $.377B
Atomic Energy of Canada $.228B
RIM $.253B
Alcatel-Lucent $.236B
Sanofi-Aventis Group $.207B
Apotex Inc $.181B

Nortel currently accounts for 32% of the R&D spend in the top 10 spenders in Canada, and Magna (automotive parts) currently accounts for 13%.   Over 45% of the R&D spend of the top 10 spenders in Canada is in decline and at risk of evaporating to nothing.

Unfortunately – RIM which is always held up as the shining tech light for Canada – isn’t even in the same league as Nortel and never will be.   It could be argued that RIM is likely to rapidly diminish in size/scope over the coming years as technologies such as the iPhone and Android continue to see rapid adoption.

Making Technology Happen

I have the first and second edition of this book on my bookshelf.  It is concise, practical advice for starting and running a technology/knowledge-based company… and it is written by a local tech leader – Denzil Doyle!   For those trying to figure out where to start and what to do I recommend this book as a good place to start reading.

Making Technology Happen describes in detail the techniques used to identify and exploit technology and how to build and manage a technology-intensive company around that technology. It covers such activities as ‘go-to market’ strategy development, general management, investment analysis, organizational development, and competitive market analysis – all from the perspective of a technology-intensive enterprise. It is used by governments and technology transfer professionals across North America, as well as by entrepreneurs and business executives


Ottawa 2.0 – The Flint Michigan of Canada’s High Tech World?

The Citizen published an article on the key role Nortel has had on the Ottawa high tech market, noting that there are no replacements for Nortel waiting in the wings to step-in to the void.

Here is a list of potential impacts on the City of Ottawa in a post-Nortel scenario:

  • Ottawa will increasingly rely on the Federal Government for our local economic future (3Q08 city reports put 75% of Ottawa’s economy as being linked to the presence of the Federal Government in Ottawa)
  • Ottawa economy will decline in size and associated tax base which will lead to reduced city services and programs due to:
  • Ottawa economic growth prospects will decline as the city becomes increasingly less attractive for knowledge-based multi-nationals to locate/expand in Ottawa due to declining size and skills of the local workforce brought about by:
    • Continued emigration of knowledge-workers out of Ottawa (Stats Canada reports have highlighted the lost high tech capabilities and workforce emigration away from Ottawa -  2 in 5 laid off tech workers left Ottawa)
    • Continued reduction in base of knowledge-workers with current experience (Stats Canada reports have highlighted that 4 of 5 laid off tech workers did not find work in tech)

Ottawa may soon be the “Flint Michigan of Canada” when it comes to high tech.

Of course, there are always  career opportunities available in ceramics and pottery.

Ontario Ministry of Research and Innovation – “Next Generation of Jobs Fund” a McGuinty Debacle?

With all the talk of government stimulus and spending it is disappointing to see the government not using programs that have already been approved and rolled-out.

Last year, the Ontario Government’s Next Generation of Jobs Fund was rolled out by McGuinty with much fanfare and promises of how his government would be fast tracking the program to “Git’r Done”.    The Next Generation of Jobs Fund is a five-year, $1.15 billion fund intended to create new highly skilled jobs.

“We’re stepping up because Ontario is not going to let others steal our future out from under us - we will produce the next wave of clean technologies that create jobs and clean up the environment,” said Premier McGuinty.

“We’re sending the message to companies around the world that if you’ve got a project that will grow your business and create jobs, we’ll make it happen in Ontario,” said Minister of Economic Development and Trade Sandra Pupatello.

“This fund is about building on our strengths to ensure Ontario can compete and win in the global economy - and create a better standard of living for Ontario families,” said Minister of Research and Innovation John Wilkinson.

There was also much noise made about how:

Companies are guaranteed a decision within 45 days of submitting a complete proposal.

So, since being announced a year ago….   nothing has happened.

Furthermore, last summer – Nortel, IBM and Carleton University submitted a proposal to establish and collaborate on a project called “Coral CEA”.  The group’s proposal was to setup an organization to focus on development of communications enabled applications with the objective of spinning-off companies and jobs.  In-spite of being under bankruptcy protection Nortel remained committed to the proposal because of it’s strategic value.

This was a proposal from two of Canada’s top innovators and Ottawa’s leading University… and nothing has happened.

In fact, worse then nothing has happened – good ideas have been submitted and no action has been taken.

It appears that the only jobs that the NGoJF is creating are jobs for government organ grinders whose purpose is to turn our “Creative Class” into dancing monkeys for the bureaucracy -

If McGuinty is serious about his commitment to innovation and the NGoJF – he needs to roll up his sleeves and take direct personal action in his government.   Right now McGuinty and his government fall into the category of “Big Hat, No Cattle”.

UPDATE: The Strategic Opportunity Program (part of NGoJF) has been very quietly shut-down …

sopdone

Universities Benefit from Recession?

In the UK, University applications are up 8%, with some Universities are up significantly higher:

Applications to Oxford and Cambridge rose 9.9%. The University of Exeter said it had an 18% increase in applications from British students and 88% rise in those outside the EU. New universities and smaller specialist institutions also reported record rises. Bedfordshire University had a 24% rise in home applications.

Enrollment/application numbers for Universities in the US and Canada for late 2008/early 2009 are hard to find, however here is what has been published so far:

In Canada, there is concern that recession impacts on post-secondary institutions may include decreasing endowment funds, reduced/weakened fund raising, halted or delayed development projects and less government funding.

In US, Universities share similar concerns as in Canada.   In the US there is particular concern regarding  decreasing endowment funds which are due mainly to the stock market decline:

… the average college endowment lost 2.7 percent in the fiscal year that ended June 30, 2008, according to Commonfund, an organization that manages many colleges’ endowments. A follow-up survey found endowments lost another 22.5 percent in the five months that ended Dec. 1, 2008.

In the US and Canada, Universities are likely to be beneficiaries of the various stimulus packages, which should off-set some of the concerns that are currently being expressed.

Project Sun Spot… a Cool Idea with Loads of Microbusiness Potential

Sun has developed Sun Small Programable Object Technology (SPOT).  It’s an experimental platform to inspire developers to build the next great toy, sensor, communication device — who knows — using Sun technology.  The Sun SPOT devices make include a flexible hardware platform as well as the software and tools to make it easy to innovate, experiment, and prototype whatever a developer can imagine.

The Sun SPOT Device is a small, wireless, battery powered experimental platform. It is programmed almost entirely in Java to allow regular programmers to create projects that used to require specialized embedded system development skills. The hardware platform includes a range of built-in sensors as well as the ability to easily interface to external devices.

This little platform is full of potential for “Creative Class” people to base a microbusiness on.

SheevaPlug… a “Plug Computer”…a Cool Idea with Loads of Microbusiness Potential

A small computer in a wall-plug, running Linux.

Marvell is selling this “development platform”, targeted at the following applications:

  • Network Control Plane Applications
  • High-performance Storage
  • Single Board Computers
  • Enterprise Printers
  • DVRs, NVRs, Video Surveillance
  • High-volume SMB Gateways

For those of the “Creative Class” looking for new microbusiness ideas, it might be something worth looking at.

What IT/Tech Certifications Have Value Relative to Salary and Job Opportunities?

There are a vast, and increasing, number of technical certifications available.  A big question many people have is what is the value – if any –  of an individual spending the time and money to obtain a certification.  Will the certification increase prospects for employment?  Will the certification increase the salary of the holder?

A study published by TechRepublic “2008 IT skills and salary report“, gives some insight into the salaries of various certification holders:

averagesalaries

TechRepublic also published another report identifying the following IT-specific certifications as being the “Top 10″ relative to increasing employment opportunities:

  1. Microsoft Certified Technical Specialist (MCTS) or Microsoft Certified IT Professional (MCITP) (formerly MCSE)
  2. Microsoft Certified Architect (MCA)
  3. Certified Information Systems Security Professional (CISSP)
  4. Systems Security Certified Practitioner (SSCP)
  5. GIAC Security Expert (GSE)
  6. Cisco Certified Internetwork Expert (CCIE)
  7. Cisco Certified Security Professional (CCSP)
  8. Red Hat Certified Engineer (RHCE) and Red Hat Certified Architect (RHCA)
  9. Information Technology Infrastructure Library (ITIL)
  10. Certifications for Special Situations (including VoIP)

CompTIA has a comprehensive list of IT/Technical certifications.

Outplacement Industry Booming in 2009?

A report from Insala provides some interesting insights into a business sector that is growing and expected to continue to grow in 2009:

Providing outplacement support to exiting employees has become standard business practice for many companies. The demand for such services is increasing in this heavy job-cutting market. This is evidenced by the following research:

  • 81% of employers engage help from external outplacement providers (The Value of Outplacement, Reed Consulting).
  • 50% of employers use only external outplacement providers (The Value of Outplacement, Reed Consulting).
  • 34.1% of surveyed organizations offer outplacement services to certain classifications of employees, while 13.6% offer it to all of their employees (HRfocus Termination Survey 2008).
  • 30% of 600 surveyed companies outsource outplacement services (H.R. Department Benchmarks and Analysis 2008, Bureau of National Affairs).

With this increasing usage, the outplacement industry has grown to a 3 billion dollar industry, and some sources state it is as high as 10 billion.

Financial performance data on individual outplacement firms is extremely limited due to the fact that the majority of firms are private. One public firm however recently reported a 25% increase in net revenue this year compared to last year. In September, Penna Consulting, a U.K. based public limited company reported their net revenue to be approximately 25% ahead of the same period last year and pre-tax profits earned in the first six months of this year will be higher than those of the full 2007/8 year. Consequently, they are projecting that market expectations for the full year ending in March 2009 will be materially exceeded.

Additionally, a recent news article, Area Braces for Upsurge in the Ranks of Jobless, reported Lee Hecht Harrison’s outplacement business was up 50% over the same time last year.

The Current State of Canadian and Ottawa Business Incubators

Business incubation has been identified as a means of meeting a variety of economic and socioeconomic policy needs, which may include:

  • Creating jobs and wealth
  • Fostering a community’s entrepreneurial climate
  • Technology commercialization
  • Diversifying local economies
  • Building or accelerating growth of local industry clusters
  • Business creation and retention
  • Encouraging women or minority entrepreneurship
  • Identifying potential spin-in or spin-out business opportunities
  • Community revitalization

Business incubators typically provide a range of services to clients that may include:

  • Help with business basics
  • Networking activities
  • Marketing assistance
  • High-speed Internet access
  • Help with accounting/financial management
  • Access to bank loans, loan funds and guarantee programs
  • Help with presentation skills
  • Links to higher education resources
  • Links to strategic partners
  • Access to angel investors or venture capital
  • Comprehensive business training programs
  • Advisory boards and mentors
  • Management team identification
  • Help with business etiquette
  • Technology commercialization assistance
  • Help with regulatory compliance
  • Intellectual property management
  • Facilities (e.g. office space, specialized lab space) and associated business services (e.g. security, receptionist, meeting rooms, phone service, photocopiers, printers,  internet service)

Stats Canada released a report in late 2008 “The Business of Nurturing Businesses” which takes a look at business incubators in Canada based on survey data taken in 2005.   Some key findings from the report include:

  • Almost all business incubators are sponsored by economic development organizations, governments, academic institutions, i.e. tax money
  • 1 in 6 incubators offer facilities and on-site support services
  • Almost half of all incubators were focused on professional, scientific and technical services businesses
  • The top three most used services of incubators were: legal consultation, management guidance and assistence in obtaining financing

There are various lists of incubators in Canada, unfortunately none up-to-date, including:

In Ottawa, we have the following business incubators:

Unfortunately, with the exception of Carleton University’s Tony Bailetti, there is little/no information available on the public incubators relative to return on investment of the tax money in the operation of the incubators – which would lead me to believe that compelling results do not exist.

From the perspective of efficiency, it appears that our tax money is being spent a bit recklessly relative to overlapping mandates and services.    The Ontario government and Ottawa Municipal government have both being doing a review of how they are funding and delivering their economic development programs.   I hope that as part of this review, they look towards stronger collaboration and reduced overlap of services between Provincial and Municipal programs.

A future blog entry will examine how business incubators role will evolve/change in the context of Business Ecosystems.

References:

Emerging New Channels to Market for “Creative Class” Microbusinesses

For a start-up, one of the biggest challenge is gaining access to customers and being able to transact business with them as easily and quickly as possible.  In the last 5 years,  new business models have been emerging that help reduce that challenge, referred to as Ecosystem business models.

These new business models are providing knowledge workers (aka the “Creative Class“) access to ready-made delivery platforms and selling channels to a well-defined market.

These emerging channels to market typically provide a means to connect suppliers with consumers, usually handling the transaction between the two as a trusted mediator (taking a percentage in return for the channel services, e.g. selling platform, marketing, customer management, fulfillment, transaction handling):

  • Apple Apps Store – sells applications to Apple iPhone phone users, handles delivery and payment, payment is via iTunes account
  • Google Android Market - sells applications to Android mobile phone users, handles  delivery and payment using Paypal
  • Amazon Webstore - sell your wares online, access Amazon shoppers and Amazon store tools, handles payment using Amazon account
  • 99Designs -  companies/individuals post requests for graphics designs and designated “prize money”, companies/individuals post responses, the winning design selected gets the “prize money”
  • oDesk - teams or individuals post skills/availability, companies/individuals post jobs with desired fee for completion (fixed rate or hourly)
  • Shutterstock – royalty-free photographs, individuals/companies provide photos and get paid based on sales
  • Innovation Exchange – companies/individuals post challenges and cash, suppliers post responses
  • Mechanical Turk – people post questions/tasks, suppliers post answers/accept task
  • Cafepress – individuals/companies generate graphic content, Cafepress puts it on mugs, shirts, etc and handles all fulfillment for the supplier
  • Amazon Kindle – sell eBooks via Amazon and their new eBook reader
  • uTest – on-demand software testing
  • Crowd Spring – similar to 99Designs
  • Lulu - sells self-published books
  • Beta Test – links beta-testers with software publishers (e.g. iPhone)
  • Eclipse Foundation - links Eclipse IDE consumers with suppliers who build on top of the Eclipse open source IDE platform
  • Just Parts - links consumers of auto parts with suppliers
  • Top Coder – links software designers with companies who respond to contest proposals
  • Article One Partners - offers rewards for finding prior art against posted patents
  • Spot Us - allows journalists to post story ideas and solicit funding from public

One channel which can be very significant for Microbusinesses is Paypal -

  • Paypal – “one-click” purchasing between suppliers and consumers.  Many niche sellers, e.g. 3rd party add-on suppliers for Joomla! use Paypal as their transaction vehicle.  Most eCommerce solutions provide a gateway to Paypal as the payment means.  Paypal itself also can accept credit cards on behalf of a seller.  Paypal by itself provides access to a group of consumers who are comfortable transacting business online.  Paypal provides a trusted supplier relationship between the buyer and the supplier.  I have to confess I never thought Paypal would amount to anything when I first heard about the business many years ago…

Unemployment in Canada will be 10% or higher in 2009..

The following table is based on historical data from Statistics Canada, it shows the tight coupling of US and Canada unemployment rates, with the Canadian rates generally lagging the US.  The Canadian unemployment rates have been historically higher then the US by anywhere up to 4%:

unemployment

Click to Expand

The current unemployment numbers for the US and Canada are as follows:

  • United States Department of Labor states the current unemployment rate as 8.1% as of February 2009.   States with double digit employment in January 2009 were reported as: California 10.1%, Michigan 11.16%, Rhode Island 10.3%, South Carolina 10.4%.
us-unemployment

US Department of Labor, Feb 6, 2009 - Unemployment Rate

  • Statistics Canada states the current unemployment rate as 7.7% as of February 2009, with Ontario at 8.7% unemployment

unemploymentrate

Statistics Canada, March 13 2009 - Unemployment Rate

The  historically tight coupling of the US and Canada unemployment rates mean that US forecasts can be reasonably used as a proxy for future Canadian unemployment rates.   Some sources and their forecasts for the 2009 US unemployment rate follow:

screenshot_64

Click to Expand

Bank of Montreal is forecasting a US unemployment rate of 9.3% in 4Q09.

Royal Bank of Canada is forecasting a US unemployment rate of 8.8% in 4Q09.

Based on the current forecast US unemployment rates and past trends, I expect the Canadian unemployment rate to rise to over 10% and potentially over 14% nationally by 4Q09. (NOTE: Toronto Dominion bank’s March forecasts expect Canadian unemployment to reach 9.9% by 4Q09.)

The coupling of the Canada and US unemployment rates  is interesting in many ways.  In particular, there are academic papers that examine the question of Canadian government policy -  specifically, can Canadian policy have any significant impact on Canadian unemployment numbers due to the tight coupling of our economy to that of the US?

My sense is our government, in general, has little hope of stopping Canadian unemployment rates from following that of the US.   I believe that from a practical perspective, all our government can reasonably do is moderate the impact of the unemployment growth with special social and employment programs; and sustain our economy and workforce until the US economy recovers by driving infrastructure and  entrepreneurial economic development programs.

In order to break the cycle, the Canadian government should be actively working to diversify our economy by  aggressively fostering new small business development and developing export relationships and associated selling channels with other countries outside of the US.

Some interesting articles and papers on the US and Canada unemployment numbers include the following:

A factor that can have a big impact on the rate of unemployment growth is what protectionist actions are taken by Canada, the US and others.  It is almost inevitable that if the recession continues to deepen — politicians will find protectionism as  one of the last tools in their basket of options to try.   Already the politicians are dancing around this topic – some articles on this topic are below:

Small Business Has a BIG Impact on the Canadian Economy

Many people are not aware of the big impact that small business has on the Canadian economy.   Unfortunately, the focus of the news and government is usually on the few large companies – automotive and financial of late.

The Government of Canada publishes a ton of data on small businesses.   Some key metrics from 2007 about small business in Canada include:

  • There are over 1 million small businesses in Canada
  • Small businesses that have fewer than 50 employees -  contribute 26 percent to Canada’s GDP
  • Small businesses employed approximately 5 million individuals – 48 percent of the total labor force in the private sector
  • Small businesses created 100,000 jobs  – accounting for over 40 percent of all jobs created in Canada

Good sources for information on small businesses in Canada, their characteristics and impact on Canada’s economy include the following:

Lead to Win Ecosystem Announced

On Feb 12th, during a presentation at MaRS in Toronto, Tony Bailetti announced the launch of the Lead to Win Ecosystem.

ltw-ecosystem

The Lead to Win ecosystem will be headquartered in Ottawa,  it is focused on:

  • Facilitating the formation of multi-location, international teams
  • Equipping teams to exploit the new creativity economy
  • Supporting teams’ rapid start-up, operations and execution
  • Linking teams to opportunities and channels

The Lead to Win ecosystem is based on the 2002 Lead to Win program which was extraordinarily successful in delivering meaningful and measurable economic development results to the Ottawa region.

If you are interested in more information on the Lead to Win ecosystem or want to be a part of it – drop a note to Tony Bailetti, and read the material on Business Ecosystems on this site.

Is The Recession The Best Thing to Happen To Canada?

There are two interesting new ideas that I find very promising, and if the City of Ottawa is able to capitalize on them, it may create a major new source of growth for our local economy.

Richard Florida is a professor at the Rotman School of Management in Toronto.  His primary area of research is that of the “Creative Class”.   Dr Florida argues that the economy is shifting away from routine-oriented jobs to creativity-based occupations.    He also argues that the ability of an economy to adapt and weather disruptions are greater for a creativity-based economy compared to routine-jobs based economy.   Dr Florida recently delivered a report to the Ontario government on this topic - it is interesting reading.

In Ottawa, we have Tony Bailetti, a professor at Carleton University.  His primary area of research is that of  “Ecosystems”.   He argues that the business models of the world are changing.   During the Industrial Age – companies were vertically integrated.  During the Technology Age – companies were horizontally integrated with outsourced partners.  In the emerging Ecosystem Age – Dr Bailetti argues that it is all about creative knowledge workers and collaboration.    An ecosystem is not a single company, but rather is a collaborative community formed around a central keystone organization that facilitates collaborative relationships and access to wide established markets.  And this is more then just a theory – Ecosystems exist today and their numbers are growing.   A leader in this emerging Ecosystem business model is headquartered in our city! The Eclipse Foundation is a very successful keystone organization — they are at the heart of the worlds most successful Integrated Development Environment platform.

Ecosystems are a means of organizing and enabling knowledge workers, leveling the playing field against established Technology Age and Industrial Age competition, and flattening the world relative to allowing world-wide virtual teams to come together to create innovation, wealth and economic growth.  Ecosystems effectively give a practical framework around how we can capitalize on the power of the “Creative Class”.

Dr Florida and Dr Bailetti’s work have evolved independently but are very complimentary and timely.

I would love to see Tony and Richard get together as  their ground-breaking ideas represent a strong opportunity for Ottawa, Ontario and Canada to re-invent itself.

If you are one of those people who is planning  to create their own microbusiness and you are looking for ideas to pursue – you would be wise to learn more about what Ecosystems are and how you can capitalize on them.   The good news is that Tony is planning to make an important announcement on Thursday about a new initiative related to Ecosystems that you will want to know about – because it can help you - I’ll post an update to this post on Friday.

Ottawa Already Has an Innovation Hub – It’s Name is Tony Bailetti

It was great to see the article from Peter Kovessy of the Ottawa Business Journal today entitled “Innovation Hub in Stagnation”.  We need more public oversight, debate and analysis on how our local political leaders have and  are proposing to spend our tax dollars to spur innovation and economic growth for our region.

Relative to the Innovation Hub idea – there have been very negative public comments made about the plan  from Ottawa tech leaders and entrepreneurs right from the beginning. The father of local high tech, Denzil Doyle, was straight to the point:

It is discouraging to see the idea of an Innovation Hub being run up the flagpole. On a scale of one to ten, I would rate it at minus five as something that is going to solve the region’s high tech problems. About 20 years ago, we were told that if we invested in a life sciences technology park, we would grow a life sciences industry that would rival the telecom industry. We all know how that turned out. We seem to forget that Mitel started in the basement of an office building in Kanata and that a combination of its working capital and outside investment financed its real estate requirements thereafter. DY-4 started in a very ordinary building on Laperriere Ave – and so on.

Entrepreneur John Oligvie called it out:

I have spent a lot of time in Silicon Valley and in Boston and these two global high-tech centers have managed so far without building “innovation hubs”. This is discredited, “big government” thinking. Technical and business innovation can only be done by entrepreneurs, not by government. If you asked local VCs and tech entrepreneurs what they needed most in order to succeed, I doubt that anyone’s first answer would be “a big shiny new building”.

From my perspective, I have yet to talk to a local entrepreneur who is supportive of the Innovation Hub.  When it comes to high tech and innovation driven economic development – most do not feel the City of Ottawa is coupled into reality.

I personally believe we need to have less of our tax money being spent on “overheads” such as buildings and associated staff and instead direct the tax money to programs that directly support the needs of regional entrepreneurs and the important local economic development they produce.

People like Tony Bailetti and the Talent First Network are on the right track -

“To innovate effectively, small and cheap is big; big and expensive simply doesn’t work” says Bailetti. He adds: “What we need to drive massive innovation in Ottawa is many small innovation hubs like TheCodefactory, all linked to early buyers worldwide. Mechanisms that enable our innovators working anywhere in Ottawa to collaborate with early buyers at the start of the innovation cycle can produce significant benefits for our community.”

Tony Bailetti is one of the few people around that truly understands what it takes to foster innovation and deliver regional economic development.   His actions and results as one man have exceeded the results of any local organization or initiative when it comes to developing entrepreneurial activity and results for our region.  He is motivated by the desire to “Do the right thing” and “To make a difference” for his community and his students.   Tony is one of Ottawa’s (if not Canada’s) most valuable resources when it comes to economic development and technology innovation.

As an example – in 2002, Tony Bailetti ran an entrepreneurial training course called “Lead to Win”.   The course was free to the participants.  Of the 29 participants – over 50% launched a company in the Ottawa region.  The resulting entrepreneurial activity, innovation and  companies – launched by that one initiative, by that one manresulted in the creation of over 300 local jobs and the influx of over $90M into our local economy.

That is exactly the type of  community-based leadership and grass-roots economic development activity our governments should be encouraging, learning from and backing.

Ottawa already has an Innovation Hub and its name is Tony Bailetti.


Fur Trading, Lumber, High Tech and Ottawa

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Like fur trading and the lumber industry,  the Ottawa high tech industry is well on its way into the local history books.

For several years now, people around town have increasingly talked about tech in tones of warm remembrances of past glory rather then excitement about present and future possibilities.

I don’t believe Ottawa high tech will ever reach the halcyon highs of the past – those days are gone and never to return.

I do believe that Ottawa high tech will continue to exist – but in a much different form and with an increasingly smaller economic contribution to our region.

With an increasing number of local tech workers joining the jobless ranks – most with limited prospects – Ottawa is likely to see a temporary boom in the growth of local microbusinesses. These new microbusinesses will include some focused on tech, others in more traditional businesses such as services and contracting.

Some examples of microbusinesses that might develop in Ottawa can be inferred from  microbusinesses that have been generated by graduates of training programs at Microbusiness.ca (view here).

So what exactly is a microbusiness?

A microbusiness  is a small business or enterprise with less than 5 employees and little access to commercial banking.  Microbusinesses are typically side-businesses run from the house or via the internet. Starting a microbusiness is often a possibility for many people, due to low start-up costs, however profits generated from many microbusinesses vary immensely.

Microbusinesses often employ inexpensive micromarketing techniques to promote their products, services, and microbrands within a specific microsegment of the market.

Micromarketing is the practice of tailoring products, brands (microbrands), and promotions to meet the needs and wants of microsegments within a market. Micromarketing is all about digital content and innovative ways of distributing it.

A microbrand is a small-scale brand recognized only in a certain geographic location (e.g. city) or by consumers in a specific micromarket or niche market.

A microsegment is an extremely precise division of a market which are the focus of personalized direct marketing and promotion campaigns. Each campaign is meant to target and appeal to the specified tastes, needs, wants, and desires of the individuals that make up the microsegment.

In the high tech world  the question to reflect on is:  What opportunities are realistic for an Ottawa-based microbusiness to attack and expect success?

More on that topic in a subsequent post.

References:

http://en.wikipedia.org/wiki/Microbusiness

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