Last  Thursday OCRI released the results of our annual knowledge-based industry survey. You can read the full release here and check  here for supporting charts. This year we tracked a slight increase in the number of companies but one of the largest drops (down 4.4 per cent) in overall employment since the tech industry implosion in 2001 which was a staggering decrease of 12 per cent. In actual numbers: companies increased by 87 companies and 3,456 jobs were lost.

Considering all the challenges that Ottawa has faced over the past three years (read Nortel) the bottom line numbers ARE surprisingly solid but not thriving. See some of my earliers posts about Ottawa’ s competitive advantage and the big wins of 2010.  There are many things that need to improve in order for Ottawa to be truly thriving.   We must develop and support Ottawa’s entrepreneurial culture. We need to attract investment to the region.  The commercialization efforts of Ottawa’s newest companies must be supported. And above all we must be agressive and bold in our promotion of Ottawa as a destination of choice for investors, entrepreneurs and multinationals.  And this is why the OCRI knowledge-based industry survey is so important. These numbers provide a current snap shot of of the region’s most relevant industries and plays a key role in the fact finding and decision making processes of companies and indivuals looking to move to or invest in Ottawa.  Tracking  the trends of the knowledge-based community enables  the ability to identify and adapt quickly.

We have seen some bright spots – growth in the number of small startup companies, ongoing growth in Cleantech (employees and companies) and our newest cluster digital media went from zero two years ago to 97 companies this year. The ongoing increase in the number of small (0-9 employees) from 961 in 2009 to 1,071 (up 11.4 per cent) is a sign of the times – probably everywhere and not just Ottawa.  Even though they are small, they are a business and many of them are very busy – therefore generating income and ultimately contributing to the local economy. Their employment numbers are low but they are probably working to get even busier so that they can hire more people.  No surprise either to see so many startups. In challenging economic times – starting your own business is a good idea! Lots of major corporations were launched during tough times. OCRI does a TON of work with local startups, through our Regional Innovation Centre (formerly the Investment and Commercialization group) and our Entrepreneurship Centre located down at City Hall. The RIC is working with 185 early stage startups to help them get to the next level of success. All of these companies are deemed to have high potential – the outlook is good.  And our Entrepreneurship Centre served over 3,300 individual clients. GROWTH.

Granted, the large companies in Ottawa, those with more than 500 employees are becoming fewer and fewer all the time. 10 companies lost more than 100 employees and Nortel shed the most – 2,800. Telecom was hit hard but so too was knowledge based support services as Convergys closed its doors and HP decreased its numbers too. LOSS.

Last year we also had a few mergers and acquisitions which helped change the dynamics too. Ciena and Genband aquired Nortel divisions, Sanmina aquired Breconridge, Magellan acquired Haley, Ajilon Consulting merged with Ajilon Communications and Bell Mobile and Bell Sympatico officially rolled into Bell Canada. ADJUSTMENTS.

Often, our numbers get  compared to Stats Canada but they never match and they never will. We don’t track the same things. Our categories reflect Ottawa’s evolving knowledge-based economy, its diversity and current industries, whereas if you check the categories tracked by StatsCanada you’ll see it still tracks the same industries and categories that they did 10 years ago or longer.  Perhaps the most important note when comparing StatsCan to OCRI’s numbers is that year after year (with few exceptions) the overall trends are similar. Both go up in the same year and both go down in the same year.  So even though our numbers aren’t the same (because we track different things) the trend is.  Remember too that Ottawa holds a comparatively low and stable unemployment rate (6.6 per cent in December 2010) below the Ontario and national averages (8.1 per cent and 7.6 per cent respectively).

OCRI tracks Ottawa’s 12 knowledge-based industry sectors. We call them clusters :

- cleantech (including environment)
- contact centre/customer centre
- defence and security
- eBusiness
- life sciences (including medical technologies and health)
- knowledge-based support services
- photonics
- semiconductor
- software
- telecommunications
- wireless
- digital media

How we collect the numbers: Ottawa companies are invited to join the database. They “self assess” themselves – ie decide which sector is their primary industry, provide their company profile information (contact information, address, website, services) and are responsible for updating their employment numbers once a year, although they are able to update any number of times at any point in time throughout the year. The annual survey closes on December 31 of each year and the numbers in the data base at that time are the numbers we evaluate for the final report. FYI in 2010, we can confirm that 94 per cent fo the companies operating in the knowledge-based industry survey responded to the survey in 2010.

How we scrub the numbers: Updated numbers are compared to the previous year, company by company. We compare to media reports and company announcements re: mergers, acquisitions, downsizing etc. and anything that doesn’t jive gets a phone call. Anything that doesn’t get resolved gets chased. Last year, we actually hit the road and drove all over town to verify existence and non-existence of companies – I’m pretty sure StatsCanada doesn’t do that!  So, we can be pretty rigorous too!

We are very confident that we provide a very reliable and accurate picture of Ottawa’s knowledge-based community.  The database is easily accessible if you’re interested in doing some exploring at www.ottawaregion.com. This is one of the most valuable reference tools for investment and development purposes. It’s up to date and provides accurate information which can help a company make an informed decision about relocating to or investing in Ottawa.

MOST important of all – if you work for an Ottawa-based company that fits into one of the 12 clusters listed above and your company is NOT on the list – get on it and be counted!

Cheers!

Welcome to  OCRI.tv where you can get caught up on who said what, when and how it can impact the way you approach your business on a daily basis.

Currently, archives include media clips and entire presentations from our events to give you a full picture of what you’ve missed but going forward we’re just going to let you in on the Q&A. If you want more you’ll have to come check out an event to reap all the benefits of the presentation and networking.

Cheers!

Ottawa ranked the 3^rd most sustainable city in Canada in 2009 among Canada’s large cities. It ranked highest in governance and Empowerment and second highest in Social Well-Being.
(Source: Annual Ranking of Canada’s Most Sustainable Cities, Corporate Knights, 2009)

Ottawa tied for 3^rd position in the world and also in the America’s in the ranking of best Eco-city.
(Source: Mercer’s Quality of Living Survey, 2010) 

A study by Canadian Business ranked Ottawa as Canada’s 2^nd best place to live and 3^rd best place to retire among the 154 cities ranked in 2009.
(Source: MoneySense, Canadian Business, 2009)

 Ottawa ranked 14^th in the world in 2009 in a survey of the best places to live in the world (quality of living) and 3^rd in the America’s out of 215 cities that responded to the survey by the Mercer Company. Ottawa is among the top 10 per cent cities globally.
(Source: Mercer’s Quality of Living Survey, 2010) 

Ottawa leads all cities in Canada in knowledge occupations with 26.4 per cent of employment in the knowledge field.(Source: City Magnets II: Benchmarking the Attractiveness of 50 Canadian Cities, The Conference Board of Canada, January 2010)

Ottawa rated as the best overall city in Canada on a creative class index based on the 3Ts of economic development -technology, talent and tolerance. Ottawa also tops other major metropolitan cities including New York, Boston, Washington, San Jose and London, England.
(Source: Who’s Your City? (2009), Richard Florida, Director of the Martin Prosperity Institute)

Ottawa was named to the Smart21 as a finalist in the Intelligent Community of the Year awards program, as a community that actively uses broadband and ICT to excel in today’s global economy.
(Source: Intelligent Community Forum, October 2009)

Ottawa was named to the Top 7 Intelligent Communities of the Year by the Intelligent Community Forum in January 2010.
(Source: Intelligent Community Forum, January 2010)

Ottawa was nominated for the 3^rd consecutive year as a Knowledge Metropolis in the annual Most Admired Knowledge City (MAKCi) Awards for the year 2009.
(Source: MAKCi Awards, The World Capital Institute & Teleos, 2009)

Ottawa was awarded first place in the Knowledge City-Region Category in the annual Most Admired Knowledge City (MAKCi) Awards for the year 2010.
(Source: MAKCi Awards, The World Capital Institute & Teleos, 2010)

In a ranking of Canada’s smartest cities conducted by the Canadian Council of Learning, an Ottawa-based non-profit corporation, Ottawa ranked 4^th among more than 4,500 communities across the country.
(Source: The Canadian Council on Learning, Maclean’s Magazine, May 2009)

Ottawa-Gatineau ranked second in a ranking of Canada’s most active cities in 2009 by the Canadian Council of Learning.
(Source: The Canadian Council on Learning, Maclean’s Magazine, May 2009)

Ottawa was recognized as a world-class festival and event city by the International Festivals and Events Association 
(Source: IFEA, September 2010)

This list is an excerpt from the 2010 Ottawa Report. the entire report can be accessed online.

The global recessionary forces did not have as significant an effect on the Ottawa economy as other main economic centres throughout the nation and around the globe. Although Ottawa’s economy contracted in 2009, as reflected by the decline (by 1.2 per cent) in its Gross Domestic Product (GDP), it performed better than Canada overall (GDP declined by 2.5 per cent). Similarly, though the region faced slight employment instability in the past year, it still had the lowest unemployment level among metropolitans in the country. The domestic economic conditions have been more resilient in Ottawa than in the rest of the country. As a consequence, economic and market conditions have already started to pick-up in the region. Ottawa’s economy is expected to grow at 2.8 per cent during the fiscal year 2010 , aided by the stimulus funding, rebound in consumer confidence, recovery in retail sector and housing market, as well as improvements in employment conditions, production and exports.

Since the start of the year 2010, economic indicators are showing signs of strength and the economy appears to be on the road of recovery. However, a federal government departmental spending freeze is expected to constrain growth in the public administration sector and thus, have a significant impact on the region’s overall economy by slowing down its projected growth over the next fiscal year. Despite this, the dynamic local labour market continues to show strength and is expected to further mature with the increase in the private sector activity. Notably, Ottawa enjoys diversity and resilience in its employment base. Its dominant public administration sector and a large knowledge-based industry, among others, generate unlimited opportunities for its residents and for businesses and individuals from around the world, and will continue to do so in the future as well. The post-economic downturn restructuring within the knowledge-based industry clusters, may also provide the opening for surplus knowledge assets from established firms to be recombined to create new, innovative companies and novel employment opportunities in the region.  Ottawa’s inclusive and tolerant environment and openness to talent, creativity and new ideas from around the globe makes it a truly diverse region and gives it a unique competitive advantage.

Ottawa has a highly educated population, with 51 per cent of its residents, having at least a college education and 43 per cent of its workforce employed in creative occupations . It also has a strong and growing arts community. Due to the presence of the federal government institutions as well as sizeable knowledge-based industry, Ottawa leads all Canadian cities in knowledge occupations with 26.4 per cent of its total employment in the knowledge field. With 72 per cent of its employed population working in natural and applied science, Ottawa has one in seven people working in the field of science or high-technology . This is in part a consequence of the exceptional education system, modern educational facilities and the state-of-the-art research infrastructure provided by the region’s academic institutions and the public and private sectors. Ottawa’s academic institutions will continue to play an important role in the region’s economic growth by developing talent and skilled knowledge workers for its private and public sector, by spawning its future entrepreneurs and by undertaking significant research activities. The presence of a dynamic local labour market complemented by these world-class post-secondary institutions and diverse employment base is creating opportunities for attraction and retention of highly educated and skilled knowledge workers into the region.

Ottawa is a recognized research and innovation leader on the global stage. Even during the weak economic period, the research activities at Ottawa’s post-secondary institutions were well funded. The overall sponsored research income for the universities grew by 5.14 per cent in 2008. Research funding during fiscal 2009 also remained stable since the government, which contributes about 70 to 80 per cent of all university research income, continued its research support in an effort to keep the research activity stable during the period. Ottawa also accounted for almost 76 per cent of the Corporate R&D spending in the province during 2008 . Overall, it grew by 2.22 per cent. However, since companies were tightening their belts during 2009, it is likely to have impacted their R&D budgets. The expected slowdown in the R&D activity will be compounded by the fact that for years Nortel was not only Ottawa’s but Canada’s biggest R&D spender. With it absent from the scene, the total Corporate R&D spending for the region most likely decreased substantially during 2009, though  the full-effect of the deteriorating global economy on Corporate R&D spending is yet to be seen.

The prevailing economic conditions provide an opportunity to the regional companies and the universities to rethink their R&D strategies to keep Ottawa within the ranks of innovation leaders. The main limiting factor in the past year for innovation and commercialization in the region has once again been a lack of venture capital investments. This trend is not unique to Ottawa, but globally shared by all major technology centres. The sluggishness in investment can be overcome by developing linkages between universities, private sector and government research institutions, by developing mechanisms to rebuild investors’ confidence and by developing financial support networks, including but not limited to a network of venture capital firms, for infusing capital into the local startups, public R&D facilities and other research-intensive organizations. With renewed commitments from the government and the local economic development agencies, the region has the potential to create a strong financial backbone for its research, innovation and commercialization activities.

On its part, the public sector also made its contribution to the development of the local economy in the past year through initiatives targeted at enhancement of the region’s research infrastructure and knowledge assets, renewal of its aging physical infrastructure and building capacity for the future. Government programs to build infrastructure; investments in building research and knowledge capacity for the knowledge-based industry of the future; long term investment in education at all levels, with particular emphasis on post-secondary education; and emphasis on workforce development and re-skilling of its workforce, bears signs of capacity building for the future. Such initiatives will contribute to the regional development by attracting foreign investment in the region to tap into its specialized knowledge base and its well trained and highly qualified labour force.

During 2009, the City also undertook initiatives to make the region a better place to live. This included, among others, initiatives to develop five new community gardens in 2009 to keep the city green; approval to build a new recreation complex, Kanata North Recreation Centre, at a cost of $43 million, as a new hub for physical activity and recreation in Kanata; approval to build Light Rail Transit extension; construction and improvements in cultural facilities and cultural infrastructure such as 11 City and community-operated museums, construction of a new Central Archives and the Irving Greenberg Theatre Centre, and so on . The region is deriving direct and indirect social and economic benefits from these public infrastructure projects aimed at not only increasing the attractiveness of the region to outsiders, but also at improving the quality of life for its residents.

Ottawa is a major economic centre and a technology hub, and one of the best places to live. It provides abundant high quality amenities; world-class research, physical and cultural infrastructure; excellent academic institutions; a dynamic labour market with diverse employment base and abundant professional opportunities; an enviable knowledge-based industry with the likes of IBM, Ericsson, Adobe, Cisco and RIM; an inclusive and diverse environment; and proximity to nature. This makes it a strong, resilient and diverse economy that has all the right elements for the convergence of knowledge, talent, innovation and entrepreneurship. If anything, the global economic downturn was a test of the true character of the region. Though we are still far from a complete economic recovery, and in all likelihood there will be more road-bumps on the way, Ottawa appears to be far more prepared and equipped to meet the challenges and emerge as a dominant player in the global market.

This content is an excerpt from the 2010 Ottawa Report. The entire report can be found online.

Talent is a key area of focus for Ottawa. While we have high quality, local talent with many students graduating every year from our universities and colleges, we need to encourage strategies that attract, engage and retain talent in Ottawa.  

Ottawa is expected to face shortages of skilled knowledge workers in specific sectors in the relatively near future. By generating interest in science and technology opportunities throughout the entire education experience including kindergarten through to Grade 12, increasing STEM (Science, Technology, Engineering and Mathematics) participation and implementing retention strategies we will be able to meet the demands for knowledge workers in the long term.

The technology sector in the region has recovered from the telecom collapse of 2001 and is now emerging from the global economic recession. Registration for computer and technology related programs in 2009 at post-secondary institutions did increase but remains dangerously low overall. It is important to note that early indicators in 2010 indicate that registration is down dramatically, with roughly only one quarter of the registrations seen four years ago.  In an effort to restore interest in computer engineering and computer science programs and establish entrepreneurship as viable career options in the minds of students, a number of programs and initiatives have been created that develop the city’s next generation of business leaders, skilled talent and entrepreneurs.

OCRI believes strongly in restoring the connection between entrepreneurism and traditional business skills among youth and the economic reality of our society. In an economy where eight of 10 net new jobs   are created by SMEs, Ottawa has an opportunity to promote entrepreneurism and teach business skills as a workforce asset since the majority of graduates will either be asked to contribute to the success of, or startup their own small or medium-sized enterprises. Our vision is that students have access to a broad array of entrepreneurship and business programs from the earliest grades through to post-secondary studies.

Junior Achievement, Summer Company and TalentBridge are all in place to help develop the entrepreneurial skills of students and aid their pursuit of careers in Ottawa’s diverse knowledge-based industry. The High School Technology Program is designed to introduce technology careers as viable options for students in Grades 10 through 12. All programs leverage community and industry mentors to help deliver them.

In order for Ottawa to maintain its position as an innovative technology leader, it is imperative that we have a sustainable talent pipeline. In 2009, OCRI introduced more tools and resources that help develop the skills of our future business leaders. OCRI assumed responsibility of the Junior Achievement programs in Ottawa, a mainstay in the lives of many young entrepreneurs. As part of the TalentBridge initiative, the new Ottawa Innovation Challenge gave teams of students an opportunity to address real life business challenges facing local SMEs, over a period of only 48 hours. From this successful project another seed was planted for the Ottawa Community Challenge (OCC) which will give students an opportunity to work on social enterprise-based projects for nonprofit organizations and community associations. OCC will be implemented in 2010. Satellite kiosk offices of the Entrepreneurship Centre have been opened in two more suburban communities expanding the reach of advisory services. Two new Entrepreneur’s Edge professional development programs were also introduced in 2009.

The strategic combination of technical skills and entrepreneurial ability feeds our diverse knowledge-based industry and furthers Ottawa’s position as a leading creative economy in today’s world of limitless opportunities.

Creating an environment that is attractive to skilled talent anywhere in the world who are considering career options or relocation is a crucial element of the city’s talent recruitment approach. The city must continue to foster strong retention of new recruits to the area, as well as existing, homegrown talent. Integration, access to challenging and meaningful projects and jobs, like-minded peers and a sense of community are key elements of a broader decision to “stay” or “leave” the city. These success factors also help in the individual’s promotion of the city as a destination of choice. Rather than merely marketing Ottawa abroad, the city is well served by creating the right conditions once new talent arrives, as it is likely that individuals well established in Ottawa will be far more influential for others considering Ottawa because of their own personal experience.   

OCRI is a champion for education, working with the school boards, the universities, and the colleges to help make education more accessible to students and to improve the education experience from Kindergarten through to PhD. No other element of the local infrastructure is as integral to the ongoing growth and future success of Ottawa’s economy as the education system.  By providing critical links between the local business community and entrepreneurially-minded students eager for real-life work experience while supporting initiatives that enable students to learn at their highest potential, OCRI is helping to ensure that Ottawa is well equipped with generations of skilled and enthusiastic talent.

A generation ago, Ottawa was a one dimensional, regional centre, almost completely dependent upon federal government expenditures. Today, the Ottawa region is a vibrant, international technology hub, recognized around the world for its highly educated workforce and its ability to develop innovative solutions – from photonics to wireless to clean energy and beyond.

Innovation and entrepreneurship are Ottawa’s key advantages. Our deep talent pool and keen eye for opportunity has enabled this generation to create a diverse and resilient economic foundation that combines the buoyancy of the federal government with our strong tourism industry and renowned knowledge-based industry to create a global technology centre that is supported by a network of specialized industry clusters – all of which contribute to balanced employment growth and the creation of new wealth.

OCRI’s annual Knowledge-based Industry Survey of 2010 shows a 4.8 per cent growth in the number of companies in Ottawa but 3.8 per cent decrease in the number of employees in the knowledge-based industry. While the sale of Nortel assets meant the region lost a major tenant, it was balanced by the ongoing growth of many large multinationals including RIM, IBM and Huawei. The companies that purchased Nortel’s assets, Ericsson, Avaya and Ciena, are all in a position to expand and contribute to the successful growth of the region. Local companies across all clusters continue to gain global recognition for successfully penetrating their respective market spaces.

The cluster approach to economic development delivers significant results for the region and the individual companies within the clusters. It enables Ottawa, our companies and associations to focus development efforts in specific areas of strength to leverage global opportunities for success. The region’s traditional clusters include: photonics, ebusiness, software, life sciences, wireless, and security. 

Emerging sectors such as communications enabled applications, digital media, cleantech and virtual education are starting to gain traction and attention here in Ottawa and abroad for our home-grown base of companies, technologies and innovators. GENERATOR, Ottawa’s new digital media cluster, was launched in December 2009, and the 2010 survey indicates that the digital media sector experienced the greatest growth in the number of companies (up 54 per cent) and the number of employees (up 50.9 per cent).

The Ottawa region welcomes new companies to the economic landscape and is fuelled by a strong entrepreneurial spirit that is innovative, resilient and able to identify opportunities in the global market. Ottawa has undergone a transformation from a knowledge-based industry dominated by a few large players accounting for the bulk of employment to a more balanced mix of multinational companies and hundreds of small- and medium-sized enterprises (SMEs). Ottawa has crossed the threshold to a new economy in which innovation is the driving force of wealth creation. 

Programs that facilitate growth, foster innovation and attract investment in Ottawa will fuel innovation in our community. OCRI is in tune with the needs and objectives of Ottawa’s emerging and established businesses and its community leaders. OCRI is optimistic that the city, with its strong technology base and diverse economy, can continue to attract and retain critical talent and assume a position as a global leader and one of the most desirable cities in the world.

The new economy is driven by knowledge and innovation and based on creativity.  In order for Ottawa to thrive in this new economy now and in the future, it must be understood that the most successful new companies will be smaller, more nimble and highly adaptable. The key to global success is collaboration. Critical economic development initiatives undertaken in the past year include further advancement and improvements in the areas of international trade, investment and commercialization, entrepreneurship, talent development and retention, and clusters (including cleantech, life sciences, wireless/mobile applications and digital media).

Through OCRI, Ottawa’s knowledge-based companies have access to a full range of commercialization and investment resources to accelerate their growth in the global marketplace, including startup support and facilitating investment in high-potential emerging technology leaders in Ottawa. The Investment and Commercialization group at OCRI provides comprehensive business advisory services including: access to Entrepreneurs-in-Residence, which brings successful entrepreneurs and local business leaders in-house to assist local startups and growing companies with the strategic development of their companies; access to market research that provides young companies with the critical information they need to fully analyze their market potential and positioning; and access to a global network of potential investors, customers and partners. In 2009, 125 companies benefited from OCRI’s business advisory services, of which 61 per cent represented the ICT sector. An additional 90 companies called upon OCRI for market intelligence and business analysis. 

With OCRI’s support, an impressive list of high-potential emerging technology companies have been accelerated through the commercialization process, secured early financing and established themselves in their respective markets. These companies and other more established players have leveraged OCRI’s linkages to the international marketplace that OCRI has developed through its strong relationships with the Department of Foreign Affairs and International Trade (DFAIT) and the C100, through direct contact with a strong network of multinational enterprises and investors worldwide, and through participation in targeted commercialization and investment oriented events. 

OCRI presents a variety of events and opportunities that can help companies and individuals accelerate their paths to success. The Ontario Venture Summit (OVS), eastern Canada’s premier risk capital event, hosted by OCRI, puts pre-evaluated early stage companies in front of qualified investors, providing unique and fast tracked routes to potential investors and strategic partners. Companies that presented at OVS in 2009 raised over $11M in investment money. While in the same year, a venture capital boot camp coordinated by OCRI and DFAIT showcased 20 of Ottawa’s best emerging technology companies to U.S. investors.

A series of early-stage entrepreneur development programs are available through OCRI and other Ottawa-based organizations. OCRI’s TalentBridge and Entrepreneurs’ Edge as well as other community programs including Lead to Win, Exploriem, and Wesley Clover’s Affiliate Program help to develop entrepreneurial expertise and improve the success rate of new and future companies. 

OCRI’s Entrepreneurship Centre is dedicated to helping Ottawa entrepreneurs make informed decisions regarding starting and growing their businesses.  Demand for these services continues to grow and many of these clients will create viable businesses with the assistance from OCRI. In the very near future, these companies can become economic drivers in Ottawa – creating jobs and contributing to the local economy.

Ottawa has an enviable innovation system which includes a series of private and public research labs and facilities complimented by strong linkages to the Ottawa Technology Transfer Network (OTTN), university-based Technology Transfer and Business Enterprise (TTBE) offices and Ontario Centres of Excellence (OCE).

Certainly, there are areas that require improvement in the region. The most urgent issue remains the lack of early stage capital.  OCRI is looking at opportunities to attract and build early-stage funds in the region which can co-invest alongside the Investment Accelerator Fund and the Ontario Emerging Technology Fund in the regional startups and which bring other value to these early stage companies through a local investment partner. There is also a need for proven Go-To-Market programs that can meet the demand in the community and bring potential customers and channels directly to high potential Ottawa companies, in order to speed up the go to market process. 

An Innovation Strategy Working Group, comprised of local representation, was formed in mid-2009 to assess the current state of the region in order to stimulate and champion innovation, enable acceleration of innovation through alliances, attract talent to Ottawa, attract sufficient capital for local companies, provide metrics and celebrate innovation in Ottawa.  Late 2009, OCRI established the Ottawa Technology Roundtable (OTR) which includes federal and provincial cabinet ministers, university and college presidents, and industry CEOs and presidents. The OTR, chaired by OCRI, has addressed five key themes: emerging sectors and innovation; marketing of the region’s capabilities; talent development, funding for companies and collaborative partnerships.

Overall, venture capital investment has decreased over the past several years and fallen far behind investment in other cities and regions.  Despite that fact, the average deal size in Ottawa fared well against the national average in 2009, where three Ottawa-based companies secured sizable venture investments and global recognition for their commercialization efforts. In 2010, there were seven disclosed VC investments in Ottawa-based companies. The number of deals and average deal size continues to lag dramatically behind other major centres in Canada. Angel investment remains small. However, the launch of the Capital Angel Network in Ottawa shows promise of bringing angel investors across the region together to co-invest in a more organized fashion.

OCRI continues to work diligently on behalf of Ottawa’s knowledge-based community to ensure that public policy is put in place to spur private sector investment into the innovation space. Such initiatives include identifying new pools of risk capital; stimulating angel investment and venture capital funds to seed innovation at the early stage of company development; and encouraging the federal and provincial governments to create and stimulate risk capital programs that demonstrate their support for these strategic initiatives.

Increased investment combined with a sustainable business environment that supports emerging companies and entrepreneurs, will enable Ottawa to develop a healthy and diverse economy with a strong international profile and global success.

Cities all around the world are becoming more aware of their power as engines of economic growth. Not only are they able to influence the situations in their own municipalities but they can have a major impact on the overall performance and reputation of the surrounding regions and ultimately the entire country.  That’s why the economic development associations of Canada’s 11 largest cities have joined together under the considercanada.com banner. With a cooperative approach to overall economic prosperity, the C-11 cities of  Halifax, Quebec City, Montreal, Ottawa, Toronto, Waterloo, Winnipeg, Saskatoon, Calgary, Edmonton and Vancouver are working together to help companies from around the world determine which city (or cities) is the best possible fit for their businesses as they expand their reach into Canadian and North American markets.

This week, members of the C-11 are here in Ottawa, hosted by OCRI, to discuss current issues and opportunities.  It will be interesting to know if the discussions reveal the issues to be more common than unique and that the ideas roll easily when more than one city concentrates on identifying solutions.  This week also serves as the platform from which they will launch the considercanada.ca brand.  This coordinated brand gives the 11 cities a consistent rallying point and a destination on the Web where trade organizations and companies from around the world can seek C-11 information, success stories, and get answers about investment opportunities.

Mike Darch, Executive Director, OCRI Global Marketing, one of the founding members of the C-11 and ConsiderCanada team, has learned from his years of experience promoting Ottawa and Ottawa-based companies around the world that even our largest city centres are viewed as “small” in the big picture.  He knows that Canada’s large cities have much more to gain from banding together than competing against each other for growth opportunities.

There is a lot interest in what is being done to attract investment to Canada.  The task isn’t without its challenges but there is a compelling list of reasons why investing in Canada is a good idea and each of the member cities contributes to this list….

• World’s soundest banking system, according to the World Economic Forum
• Fastest economic growth among G7 countries for 2011, according to the IMF
• The highest proportion of post-secondary graduates in the OECD
• Lowest debt-to-GDP ratio in the G7
• Lowest taxes on new business investment in the G7
• Lowest R&D costs in the G7, with a 12.9% advantage over the U.S.
• High quality of life featuring publicly-funded healthcare
• A commitment to the rule of law and a strong justice system

Visit www.considercanada.com for the bigger picture.

The Ottawa region has long been recognized as a centre for innovation and technological advancements. The city’s visionary corporate sector, highly educated workforce, diverse employment opportunities and unique blend of world-class research institutions make it an ideal location to advance new ideas and initiatives that sustain job creation, generate wealth and enhance Ottawa’s global reputation.

The recent global economic crisis left its mark on every country. However, as a result of: Canada’s stable financial system; low corporate taxation; business-friendly immigration laws and legal system; and  presence of the best educated workforce in the OECD; abundant natural resources; excellent incentives for research and development; and consistently high quality of life, Canada has emerged as one of the strongest survivors of the downturn.  

In fact, Canada was identified as the most stable economy during the recent crisis by the OECD. When Ottawa is compared to economic trends in Ontario, Canada as a whole, and to other major cities in North America, you can see how well our city performed. 

Ottawa was fairly well insulated from the tumultuous year and entered 2010 relatively unscathed in comparison with other major metropolitan cities here in Canada and abroad. Although the residual impact may emerge in the 2010 economic indicators, we are proud of Ottawa’s predominantly positive economic profile.

Here in Ottawa, despite the recent economic challenges, enrollment in post-secondary science and technology programs grew in 2009; the research intensity of our universities increased; venture capital in Ottawa, although continuing its downward trend, had an average deal-size that was better than the national average; and employment across our knowledge-based sectors remained stable experiencing only a slight decrease.

As the lead economic development agency for the City of Ottawa, OCRI is committed to working with companies, research institutions, technology clusters, business leaders and educational partners to move our economy forward. Together, we are able to identify and capitalize on valuable ways to propel Ottawa forward in terms of R&D, commercialization and investment as well as developing our future leaders and connecting skilled talent with meaningful careers in the knowledge-based sector. 

Over the past few years, we have witnessed incredible growth in the number of small (less than 50 employees) and medium sized businesses (between 50 and 500 employees). We see this trend continuing as the entrepreneurial community in Ottawa identifies new and compelling business opportunities and technologies that will spur the region’s innovative developments.

The profile of Ottawa’s knowledge-based industry has changed, grown and evolved. From one dominant telecom sector, many have emerged. Today, there are several mature sectors – wireless, photonics, software, security, and life sciences. But we are also seeing younger sectors emerge – cleantech, digital media, and virtual education.

We remain committed to the cluster approach to economic development and continue to identify emerging sectors that will benefit from a coordinated effort that increases the sector’s profile and expands the reach of Ottawa-based companies. Our organization’s strengths lie in our ability to make connections, enable strategic partnerships and nurture relationships that deliver beneficial results for the entire community through the enhancement of our knowledge-based industry.

This is an exerpt from the 2010 Ottawa Report. The entire report can be found online.

Tis the season!  As the Christmas carols begin to blare from individual laptops, it launches a different tradition here in my office – sorting and reviewing nominations for the OCRI Awards. Last year we had a record number of nominations and this year we’re on track to do the same. Ottawa’s knowledge-based industry companies (large and small, young and old) are all eligible for an OCRI Award. There are 11 categories this year to choose from.  Our new online process,developed by local company FluidSurveys, makes things easy for both nominees and reviewers.

“It’s an honour just to be nominated” Ugh, we hear that at every award ceremony from L.A. to Ottawa. But, could they be telling the truth? Absolutely! Ask past finalists and winners and they will tell you that being chosen as one of just three finalists can bring major perks. Past winners include DragonWave, SiGe and Bridgewater Systems for Company of the Year; Jason Flick, Rob Woodbridge and John Roese as Next Generation Executives; QNX and Alcatel-Lucent won the strategic partnership award last year, most promising startups include: Telepin, Embotics and Menova; product of the year accolades have gone to Neptec, Pika and Ross Video Limited. The CRI Critical Care Education program took home the health innovation trophy and our universities and colleges are producing winners in a variety of sectors and areas of expertise.

So, why try?

1)      Being a finalist proves your company has already passed a major hurdle after being carefully scrutinized, and often indicates it is worth a second look, or even a first. That can’t be bad if you’re looking for funding, new markets or skilled talent.

2)      It’s proof that someone thinks your work stands out from that of competitors. The competition is quite fierce and the judging vigorous. This can renew employee morale and build confidence that your company and your leadership team are on the right track.

3)      Gain recognition as a leading knowledge-based company or individual who demonstrates extraordinary excellence in one of Canada’s best known centres for research, innovation and technological advancements.

4)      You get a very cool takeaway video that you can add to your own brag reel. 

5)      AND you just might WIN!

Nominations close December 10. DON’T miss out.

GOOD LUCK and remember – you can’t win if you don’t play!