ISRN Annual Meeting Vancouver May 12-15 2004 Regional Governance in Ottawa The Commercialization...
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Transcript of ISRN Annual Meeting Vancouver May 12-15 2004 Regional Governance in Ottawa The Commercialization...
ISRN Annual Meeting Vancouver May 12-15 2004
Regional Governance in OttawaThe Commercialization Task Force, an exercise in local
governance Jérôme Doutriaux
University of Ottawa ISRN 6th annual meeting, Simon
Fraser University, May 13 , 2004
ISRN Annual Meeting Vancouver May 12-15 2004
Outline
1. Background2. The issue and perceived
problem3. Ottawa is not unique4. In search of a solution
ISRN Annual Meeting Vancouver May 12-15 2004
Background
Some definitionsGovernance
Institutions, policies, rules that affect behaviours and outcomes
RegionAn area allowing for easy networking and personal
contacts, such as a CMA
ISRN Annual Meeting Vancouver May 12-15 2004
Background
Regional Governance in Ottawa over timeEconomic governance: institutional players
Sponsor(s)Key rolesLimits
Industrial governance: R&D labs, Universities, FirmsSponsor(s)Key rolesLimits
People, EntrepreneursCultureSerendipity
ISRN Annual Meeting Vancouver May 12-15 2004
The issue and Perceived Problem
1. Impact of telecom and photonics slowdown on local high-tech jobs, unemployment, VC investment
2. Belief that region has a unique “commercialization” handicap
ISRN Annual Meeting Vancouver May 12-15 2004
Perceived Regional weaknesses• Commercialization
– Early tech transfer (spin-offs) quite successful, while
– Growth of existing small firms seems to be limited
• U. of O. Executive Forum with local executives:
– Insufficient management capability– Lack of management leadership– Limited commercialization/sales experience/skills– Limited growth skills
ISRN Annual Meeting Vancouver May 12-15 2004
Preliminary research: Ottawa is not unique
• Preliminary Analysis:– Study of the distribution of firms based on
size in the region – Comparison of Ottawa to other technology
regions
• Research team: University of Ottawa (T. Chamberlin,J. delaMothe, J. Doutriaux) and Carleton University (F. Brouard); results to appear as a chapter in a book on SVN (in press; Elsevier).
ISRN Annual Meeting Vancouver May 12-15 2004
Initial Observations• Relatively low percentage of very small firms
in Ottawa• Relatively high percentage of medium sized
firms in Ottawa• Why?
• Differences in collection of Data (…preliminary research)• Differences of sectors included in studies• Impact of high VC investment in 1999-2000• Differences in environment• Differences in firm strategies, leadership, culture
• Note that Canadian firms tend to be small by World standards and that large Ottawa-based firms tend to be branches of multinationals
ISRN Annual Meeting Vancouver May 12-15 2004
In search of a solution
• The Commercialization Task Force• An exercise in collaboration in initiated by a local
entrepreneur and OCRI• Broad-based (OCRI, GOCC, OLSC, TOP, NCIT, NRC,
ITAC, CATA, Cities of Ottawa and Gatineau, University of Ottawa, Carleton University, Algonquin College)
• Objective is to “identify the problem” and develop an action plan to help local start-ups evolve into global leaders in their market segments
• Delivery would be through OCRI and related organizations
ISRN Annual Meeting Vancouver May 12-15 2004
In search of a solution
– Solutions and delivery expected to be “industry driven”
• Focus on exchange and communication rather than the usual pure “networking”.
• Expected to facilitate access to information, to encourage and support sharing of experiences and learning from peers at the top level (leadership, vision), to provide advice/support/training in tech marketing and sales.
• Supported by applied research to fully understand local firm’s barriers to growth in their social-political-economic environment
– CTF mainly institutionally and consultancy driven; well networked but mostly indirect industry representation.
ISRN Annual Meeting Vancouver May 12-15 2004
The Preliminary Research:
Comparison of the distribution of firms by level of local employment in various
regions
ISRN Annual Meeting Vancouver May 12-15 2004
Data Used
• OCRI database of Ottawa firms– Updated to Q2 of 2003– Limited quality
• Statistics from several other regions– Oxfordshire, Silicon Valley, Sophia Antipolis.– Not exactly similar
ISRN Annual Meeting Vancouver May 12-15 2004
Regional ComparisonsOttawa – Oxfordshire – Silicon Valley – Sophia Antipolis
•Ottawa includes telecommunications, photonics, microelectronics, software, life-sciences (1043 firms; 1327 firms if professional services are added)
•Oxfordshire includes: Bio-Technology, Software, Telecom Services, Computer Equipment, Electrical/Electronic Equipment, Instruments, Technical Consulting and Testing, Other R&D, Other Computer Services, Aerospace
•Silicon Valley Includes: BioScience, Computers/Communications, Defence/Aerospace, Environmental, Semiconductor, Software, Professional Services, Innovation Services
•Sophia Antipolis includes only “independent high-tech firms” in software, telecom, multimedia-internet, IT services, health sciences, pharmaceutics.
ISRN Annual Meeting Vancouver May 12-15 2004
1 2 to 5 6 to 10 11 to25
26 to50
51 to99
100 to249
250 to499
500 to999
1000andover
PhotonicsLife Sciences
MicroelectronicsTelecommunications
Software0
20
40
60
80
100
120
Number of Employees
Number of Firms
Ottawa, All Technology Sectors
Photonics
Life Sciences
Microelectronics
Telecommunications
Software
ISRN Annual Meeting Vancouver May 12-15 2004
159
380
183160
96
5436
184 5
0
50
100
150
200
250
300
350
400
Number of Firms
1 2 to 5 6 to10 11 to 25 26 to 50 51 to 99 100 to249
250 to499
500 to999
1000+
Number of Employees
Distribution of Firms in Oxfordshire (Total 1095)
Series1
ISRN Annual Meeting Vancouver May 12-15 2004
58
217
190
223
169
97
56
13 11 9
0
50
100
150
200
250
Number of Firms
1 2 to 5 6 to 10 11 to 25 26 to 50 51 to 99 100 to249
250 to499
500 to999
1000and over
Number of Employees
Distribution of High-Technology Firms in Ottawa (1043)
Series1
ISRN Annual Meeting Vancouver May 12-15 2004
15993
3405
23722227
823579 207 93 63 25
0
2000
4000
6000
8000
10000
12000
14000
16000
Number of Firms
0 to 4 5 to 9 10 to 19 20 to 50 51 to 100 101 to250
251 to500
501 to1,000
1,001 to2,500
2,500+
Number of Employees
Distribution of Firms Silicon Valley (Total 25,787)
Series1
ISRN Annual Meeting Vancouver May 12-15 2004
149
527
364
401
268
142
99
23 18 120
100
200
300
400
500
600
Number of Firms
1 2 to 5 6 to 10 11 to 25 26 to 50 51 to 99 100 to249
250 to499
500 to999
1000 andover
Number of Employees
Ottawa Technology Firms and Professional Services (Total 1327 Firms)
Series1
ISRN Annual Meeting Vancouver May 12-15 2004
Comparing Technology RegionsOxfordshire
(1,095) Silicon Valley (25,787) Ottawa(1,043)
1 to 5 49.2% 0 to 4 62.0% 1 to 5 26.40%
6 to 10 16.7% 5 to 9 13.2% 6 to 10 18.20%
11 to 25 14.6% 10 to 19 9.2% 11 to 25 21.40%
26 to 50 8.8% 20 to 50 8.6% 26 to 50 16.20%
51 to 99 4.9% 51 to 100 3.2% 51 to 99 9.30%
100 to 249 3.3% 101 to 250 2.2% 100 to 249 5.40%
250 to 499 1.6% 251 to 500 0.8% 250 to 499 1.20%
500 to 999 0.4% 501 to 1,000 0.4% 500 to 999 1.10%
1000 and over 0.5% 1001, to 2,500 0.2%
1000 and over 0.9%
Over 2,500 0.1%
ISRN Annual Meeting Vancouver May 12-15 2004
Comparing Technology Regions
Oxfordshire (624)Silicon Valley (9,794) Ottawa (768)
6 to 10 32.9% 5 to 9 34.8% 6 to 10 24.7%
11 to 25 28.8% 10 to 19 24.2% 11 to 25 29.0%
26 to 50 17.3% 20 to 50 22.7% 26 to 50 22.0%
51 to 99 9.7% 51 to 100 8.4% 51 to 99 12.6%
100 to 249 6.5% 101 to 250 5.9% 100 to 249 7.3%
250 to 499 3.2% 251 to 500 2.1% 250 to 499 1.7%
500 to 999 0.7% 501 to 1,000 0.9% 500 to 999 1.4%
1,000 and over 0.9% 1,001 + 0.9% 1,000 and over 1.2%
ISRN Annual Meeting Vancouver May 12-15 2004
Size Distribution of Firms (by number of employees)
Oxfordshire Silicon Valley OttawaSophia
Antipolis
1 to 10 66% 0 to 9 75% 1 to 10 45% 1 to 10 83%
11 to 50 23% 10 to 50 18% 11 to 50 38% 11 to 50 12%
51 to 99 5% 51 to 100 3% 51 to 99 9% 51 to 100 2%
100 to 249 3% 101 to 250 2% 100 to 249 5% 101 to 200 1%
250 to 500 2% 251 to 500 1% 250 to 499 1% 201 to 500 1%
500+ 1% 501+ 1% 500+ 2% 500+ 0%
Total 1095 Total 25787 Total 1043 Total 573
ISRN Annual Meeting Vancouver May 12-15 2004
Largest Canadian Corporations(World-wide Revenue)
Company Rank
Revenue ($mUS)
Company
Rank
Revenue ($mUS)
George Weston
269 17,476.0 Alcan 402 12,540.0
Bombardier 329 15,115.9 Power Corp.
418 12,108.9
Royal Bank 337 14,771.7 ScotiaBank
432 11,633.1
Onex 344 14,424.1 CIBC 464 10,835.8
BCE 390 13,020.7 Nortel 470 10,701.0
Magna Int. 391 12,971.0 Manulife 479 10,526.6
Source: Fortune 500 World’s largest corporations, 2003
ISRN Annual Meeting Vancouver May 12-15 2004
Largest Firms from Other Countries
(World-wide Revenue)Company Ran
kRevenue
($mUS)Company Ran
kRevenue
($mUS)
Wal-Mart (US)
1 246,525.0 Nestle (Switz.)
38 57,598.9
Shell (NE/UK) 4 179,431.0 Assicurazioni (Italy)
44 53,598.9
DaimlerChyrsler (Germany)
7 141,421.1 Samsung (Korea)
59 47,605.6
Toyota (Japan)
8 131,754.2 China National Petroleum
69 44,864.4
Total (France)
14 96,944.9 George Weston
269 17,476.0First
Canadian!Source: Fortune 500 World’s largest corporations, 2003
ISRN Annual Meeting Vancouver May 12-15 2004
Californian Tech Firms(World-wide Revenue)
Company Revenue ($mUS)
Company Revenue ($mUS)
Hewlett-Packard
58,588 Science Applications Int
6,104
McKesson 50,006 Agilent 6,010
Intel 26,764 Apple Computer 5,742
Cisco Systems 18,915 Amgen 5,523
Sun Microsystems
12,496 Applied Materials 5,062
Solectron 12,276 Jacobs Engineering Group
4,555
Computer Sciences
11,426 Gateway 4,171
Oracle 9,673 Maxtor 3,779
Source: Fortune 500 World’s largest corporations, 2003
ISRN Annual Meeting Vancouver May 12-15 2004
Canadian Tech Firms(World-wide Revenue ; Telecom Carriers Not included)
)
Company Revenue ($mCDN)
Company Revenue ($mCDN)
Bombardier 23,798.9 H.P Canada 1,800.0
Nortel 10,621.0 ATI Tech. 1,022.5
Celestica 8,288.8 Xerox Canada
1,518.6
General Electric Canada
3,379.3 EDS 1,427.1
Siemans Canada 3,100.0 Linamar 1,360.1
Pratt and Witney Canada
2,600.0 Honeywell Canada
1,323.0
Source: ROB Top Tech 2003
ISRN Annual Meeting Vancouver May 12-15 2004
Software Firms in Ottawa(World-wide Revenue)
Source: Branham Group, 2003
Company Revenue ($,000CDN)
Company Revenue ($,000CDN)
Cognos 500,200 TrueArc 5,236
Corel 130,300 FreeBalance 5,036
Pieta Tech. 13,500 Taske Tech. 4,200
MXI 10,100 Data Kinetics 4,100
Autoskill 7,868 KOM Networks
4,081
Watchfire 6,900 Workstream 3,078
Hemera 5,681