Regional Governance in Ottawa
The 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.
2.
3.
4.
Background
The issue and perceived problem
Ottawa is not unique
In search of a solution
ISRN Annual Meeting Vancouver May 12-15 2004
Background
Some definitions
Governance
Institutions, policies, rules that affect behaviours and
outcomes
Region
An 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 time
Economic governance: institutional players
Sponsor(s)
Key roles
Limits
Industrial governance: R&D labs, Universities, Firms
Sponsor(s)
Key roles
Limits
People, Entrepreneurs
Culture
Serendipity
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
ISRN Annual Meeting Vancouver May 12-15 2004
networked but mostly indirect
industry representation.
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 Comparisons
Ottawa – 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
Ottawa, All Technology Sectors
120
100
Photonics
Life Sciences
80
Microelectronics
Telecommunications
Software
60
40
20
Software
Telecommunications
Microelectronics
Life Sciences
Number of Firms
Photonics
0
1
2 to 5 6 to 10
11 to
25
26 to
50
Number of Employees
51 to
99
100 to 250 to
249
499
500 to
999
1000
and
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overMeeting
Vancouver May 12-15 2004
Distribution of Firms in Oxfordshire
(Total 1095)
400
380
350
300
250
Number of Firms 200
183
160
159
Series1
150
96
100
54
36
50
18
4
5
500 to
999
1000+
0
1
2 to 5
6 to10
11 to 25
26 to 50
51 to 99
100 to
249
Number of
Employees
ISRN
Annual
250 to
499
Meeting Vancouver May 12-15 2004
Distribution of High-Technology Firms in Ottawa
(1043)
250
223
217
200
190
169
150
Number of Firms
Series1
97
100
58
56
50
13
11
9
0
1
2 to 5
6 to 10 11 to 25 26 to 50 51 to 99 100 to 250 to 500 to
1000
249 Meeting
499
999 and over
ISRN Annual
Vancouver
May
Number of Employees
12-15 2004
Distribution of Firms Silicon Valley
(Total 25,787)
16000
15993
14000
12000
10000
Number of Firms 8000
Series1
6000
3405
4000
2372
2000
2227
823
579
207
93
251 to
500
501 to
1,000
63
25
0
0 to 4
5 to 9
10 to 19
20 to 50 51 to 100
101 to
250
1,001 to
2,500
2,500+
Number of Employees
ISRN Annual Meeting Vancouver May 12-15 2004
Ottawa Technology Firms
and Professional Services (Total 1327 Firms)
600
527
500
401
400
364
Number of Firms 300
268
Series1
200
149
142
99
100
23
18
250 to
499
500 to
999
12
0
1
2 to 5
6 to 10
11 to 25
26 to 50
51 to 99
100 to
249
Annual
Number of ISRN
Employees
1000 and
over
Meeting Vancouver May 12-15 2004
Comparing Technology Regions
Oxfordshire (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
Over 2,500
0.1%
0.9%
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%
12.6%
51 to 99
9.7% 51 to 100
8.4% 51 to 99
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
Ottawa
Sophia
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
Ran
k
Revenue Company
($mUS)
Ran Revenue ($mUS)
k
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
k
Revenue Company
($mUS)
Ran
k
Revenue
($mUS)
Wal-Mart (US)
1
246,525.0 Nestle
(Switz.)
38
57,598.9
Shell (NE/UK)
4
179,431.0 Assicurazio
ni (Italy)
44
53,598.9
DaimlerChyrsl
er (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
17,476.0
First 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 Company
($mUS)
Revenue
($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
9,673 Maxtor
3,779
Oracle
Source: Fortune 500 World’s largest corporations,
ISRN Annual Meeting Vancouver May 12-15 2004
Canadian Tech Firms
(World-wide Revenue ; Telecom Carriers Not included)
)
Company
Revenue Company
($mCDN)
Revenue ($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)
Company
Revenue Company
($,000CDN)
Revenue
($,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
4,081
Networks
Watchfire
6,900 Workstream
Hemera
5,681
Source: Branham Group, 2003
3,078
ISRN Annual Meeting Vancouver May 12-15 2004