PTC 11th Report

8/14/2019 PTC 11th Report

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PREMIERSTECHNOLOGYCOUNCIL

11TH REPORTJUNE, 2008

Computer LiteratePopulation

World ClassTechnology

Industry

Leader in e-Health,e-Education &e-Government

ConnectedCommunities

GlobalTechnology

Hub

Skilled TechnologyWorkforce

We believe that with strong cooperation between the provincial government

and private enterprise, British Columbia will be one of

the worlds top ten technology centres


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Everyefforthasbeenmadetoconsiderallinformationobtainedandtobeasaccurateand

consistentaspossibleinouruseandanalysisofallresearchmaterials. However,errorsor

omissionsmayhaveoccurred. PleasenotifythePremiersTechnologyCouncilofany

significantinaccuraciesbyemailat:

[email protected]

PremiersTechnologyCouncil

730999CanadaPlace

Vancouver,BritishColumbiaV6C3E1

http://www.gov.bc.ca/prem/popt/technology_council/ 2008PremiersTechnologyCouncil


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Table of ContentsFOREWORD .................................................................................................................................... III

EXECUTIVE

SUMMARY.................................................................................................................... 6CleanTechnology...................................................................................................................... 6

RegionalInnovation.................................................................................................................. 7

IndustrialDesign.................................................................................................................... 10

CLEANTECHNOLOGY ................................................................................................................... 11

Introduction.............................................................................................................................. 11

CleanTransportation .............................................................................................................. 12

AnalysisandOpportunity...................................................................................................... 12

Technologies............................................................................................................................ 12

WasteasanEnergyResource ................................................................................................ 14

Analysis

and

Opportunity...................................................................................................... 14

Technologies............................................................................................................................ 15

CommonChallenges ............................................................................................................... 16

Recommendation..................................................................................................................... 19

REGIONALINNOVATION ............................................................................................................. 20

RegionalInnovation&Commercialisation.......................................................................... 20

ObjectiveofPTCRegionalTour ............................................................................................ 21

AddressingtheNeeds............................................................................................................. 22

Connectivity............................................................................................................................ 22

InnovationintheKnowledgeEconomy TheNeedforCooperation...................................... 26

RegionalIndustryResearchCollaboration ............................................................................. 29

BCsAdvancedEducationInstitutions ResponsivenessandFlexibility.............................. 31

Capital..................................................................................................................................... 31

INDUSTRIALDESIGN .................................................................................................................... 33

Introduction.............................................................................................................................. 33

DefinitionofDesign ............................................................................................................... 33

BenefitsofIndustrialDesign.................................................................................................. 34

BusinessCaseforIndustrialDesign....................................................................................... 34

BenefitsofPromotingDesigninaJurisdiction...................................................................... 35

IndustrialDesignPotentialforBritishColumbia ............................................................... 36

PotentialActionsforGovernment ........................................................................................ 38

APPENDIXA.LISTOFCLEANTECHNOLOGYROUNDTABLEPARTICIPANTS ......................... 40

APPENDIXB.PTCREGIONALTOURDATES,LOCATIONS&PARTICIPANTS ........................ 42

TourDates&Locations .......................................................................................................... 42

TourParticipants ..................................................................................................................... 43

APPENDIXC.REGIONALINNOVATIONSUPPLEMENT .............................................................. 49

ProvincialandRegionalAgenciesandInitiatives .............................................................. 49

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RoleofGovernmentinBCsEconomicDevelopment ............................................................ 49

EconomicDevelopmentLedbyRegionalOrganisations........................................................ 51

FederalAgenciesandInitiatives............................................................................................ 52

APPENDIXD.SUMMARYOFRECOMMENDATIONS................................................................... 56

10thReport ............................................................................................................................... 569thReport ................................................................................................................................. 60

8thReport ................................................................................................................................. 60

7thReport ................................................................................................................................. 63

6thReport ................................................................................................................................. 65

5thReport ................................................................................................................................. 67

4thReport ................................................................................................................................. 69

3rdReport ................................................................................................................................. 71

2ndReport ................................................................................................................................ 72

1stReport .................................................................................................................................. 76

APPENDIXE.PTCMEMBERS,STAFF&ACKNOWLEDGEMENTS ............................................. 77PTCMembers........................................................................................................................... 77

PTCStaff ................................................................................................................................... 78

Acknowledgements................................................................................................................. 78

RegionalInnovation................................................................................................................ 78

IndustrialDesign.................................................................................................................... 80

CleanTechnology.................................................................................................................... 81

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ForewordThePremiersTechnologyCouncil(PTC)wascreatedinAugust2001toprovideadvice

tothePremierontechnologyrelatedissues.ThemissionoftheCouncilistohelpmake

BritishColumbiaoneoftheworldstoptentechnologycentres.

TheHonourableGordonCampbellisChairoftheCouncil,apositionsharedwiththe

CoChair, Greg Peet, formerly Chairman, President and CEO of ALI Technologies

(acquiredbyMcKessonCorpin2002).TheCouncilisfortunatetodrawitsmembership

fromtwentyoneotherleadersofBCstechnologyindustryandfromseniorlevelsofthe

academicsector.

ThisisthePTCs11threport,thefourthofthegovernmentsmandate,andmythirdas

President. Initwecontinuetofocusonhowgovernmentcanencouragethegrowthof

clean technology options. We also investigate the role of Industrial Design in

strengtheningtechnologyindustries.

ThePTCalsoputagreatdealofeffortintolearningmoreabouttheroleofinnovationin

ourregionaleconomies. Toprepareforthis,thePTCconductedatourthatconsulted

withindividualsfrommanydifferentcommunitiesinBritishColumbia. Iwouldliketo

acknowledgeandthankallthosewhocametomeetthePTCandsharedwithusthe

strengthsand

the

needs

of

their

local

economies.

The

talent

of

people

we

met

from

aroundBritishColumbiaandtheircommitmenttotheirlocalcommunitieswastruly

impressive.

IwouldliketoexpressmypersonalappreciationtoallthemembersofthePremiers

TechnologyCouncilwhovolunteeredtheirtimeandenergy,andtothePremierand

governmentofficialsfortheircontinuingsupport.

Sincerely,

CherylSlusarchuk

President,PremiersTechnologyCouncil


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EXECUTIVESUMMARY

Executive SummaryInthis,its11thReportthePremiersTechnologyCounciladdressesthreetopics: CleanTechnology;

RegionalInnovation;and

IndustrialDesign.

CLEANTECHNOLOGY

Thegrowingglobalconcernaboutthestateofourenvironmentpresentsasignificant

emergingeconomicopportunityforthosewhodevelopandusenewtechnologytocreate

cleaneralternativesforexistingpractices. Inthis11threportthePTCexaminestwoareas

ofopportunity,cleantransportationandtheuseofwasteasaresource.

Estimatesarethat38%ofBCstotalcarbonemissionscomefromtransportation. This

proportion is higher than in mostjurisdictionsbecause approximately 90% of our

electricity generation is from clean hydro power. At the same time transportation

accounts forjust over a quarter of the total global demand for energy and this total

demandisestimatedtogrowby55%between1995and2020.WhileitisimportantforBC

toaddressitsowntransportationchallenges,developingtechnologiestodosowillalso

generateeconomicopportunitiesfortheprovince.Suchopportunitiesincludeimprovingvehicleefficiencyanddevelopingalternativefuelsources. TheseareareaswhereBChas

existingstrengthsandwherethereisinternationalinterestanddemand.

It is estimated that Metro Vancouver generates over 3 million tonnes of solid waste

annually. TheCapitalRegionalDistrictgeneratesmorethan100millionlitresofsewage

perday. Thesemunicipalwastefiguresdonotincludeagriculturalwasteandwaste

productsfromourindustrybase. Recoveringmaterialsandenergyfromthesewaste

streamsrepresentsaneconomicopportunity. NotonlycouldBCcaptureandusethe

energy,butthereisamarketforproductsandprocessesthatBCcandevelopasaresult.

ThePTCdeterminedthatregulationsareanobstaclethatiscommontothedevelopment

ofboth of these opportunities. Current regulations do not recognise the impact of

technologicaladvancesonalternativesbothfortransportationandthetransformationof

waste. The paceof technologicalchangeand theurgencyofadoptingbetter carbon

solutionshavemadeoptionsavailablethatgovernmentsareyettopreparefor.

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EXECUTIVESUMMARY

BChaslongbeenrecognisedasaleaderinregulatoryreform. Itmustcapitaliseonthis

expertise, through a focussed effort to address fundamental regulatorybarriers the

development of mechanisms that allow it to anticipate the opportunities offeredby

emergingtechnologiesanddeveloppolicyandregulationthatallowsthesetoflourish.To

achievethis,theRegulatoryReformOfficeshouldcollaboratewiththeClimateActionTeamandwiththePacificInstituteforClimateSolutions.

Recommendation 11.1: That the provincial government address the regulatory

challengestothedevelopmentofcleantechnologyby:

directingtheRegulatoryReformOfficetocollaboratewiththeClimate

ActionSecretariatandworkacrossministriestoidentify,prioritiseand

addressregulatorybarriersthataffecttheuseandapplicationofcurrentand

emergingtechnologiesinaddressingenvironmentalissues,and

directing

the

Pacific

Institute

for

Climate

Solutions,

through

its

collaboration

betweenUNBC,UVIC,SFUandUBC,tomapcurrentandemerging

technologiesandrecommendtotheRegulatoryReformOfficehow

regulationandgovernmentpolicyplanningshouldanticipateand

accommodatetheopportunitiesthattheypresent.

REGIONAL INNOVATION

The regions located outside of Greater Vancouver account for more than 50% of

manufacturingshipmentsandproduceahigherpercapitaincomefromexportsthanthe

Lower

Mainland.

To

better

understand

the

role

innovation

and

technology

could

play

in

improvingtheseregionaleconomies,thePTCconductedatourinthefallof2007. These

consultationsidentifiedanumberofkeymeasuresgovernmentcouldconsidersoregions

cantakebetteradvantageofinnovationandtechnology.

Themostcommonissuewastheneedforgreaterbroadbandconnectivity.Theprovincial

governmenthasextendedbroadbandthroughoutmuchofBC. Duetoinitiativessuchas

theConnectingCommunitiesAgreement,andothereffortsbyNetworkBC,92%ofBC

now has access tobroadband. Although this makes BC one of the most connected

jurisdictionsinNorthAmerica,thereisstillanopportunityforfurtherconnectivity.

Economicdevelopment,addressingthelastmile,andFirstNationsconnectivityarethree

key aspects of the existingbroadband challenge. For some the quality or level of

broadbandconnectivitylimitseconomicopportunitywhileotherjurisdictionslackaccess

ofanykind. Governmentshouldinvestigatewaystoimprovethequalityofexisting

broadbandtoaddresstheseeconomicdevelopmentchallengeswhilecontinuingitsefforts

toreachtheunserved. Alargeproportionoftheremainingunservedpopulationis

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EXECUTIVESUMMARY

locatedontheoutskirtsofconnectedcommunitiesinsubdivisions,housingclustersor

facilitieslocatedontheedgeoftown.Localinternetserviceproviders(ISPs)willcontinue

tobekeytoaddressingtheselastmilechallenges. Thegovernmentprocurementpolicy

thathassupportedtheseISPstodateneedstobemaintainedandsupplementedwith

otherpolicyinitiatives.

ThethirdkeyaspectistherolebroadbandcanplayforFirstNationsastheyadvancethe

socialandeconomicinterestsoftheircommunities. Theprovincialgovernmenthasto

continue making investments that assist First Nations in delivering broadband

connectivity. Itmustnotonlyassistwithconnectivitybutalsowithcapacitybuildingto

ensureexpertiseisbuiltthatcantakeadvantageofwhattechnologyhastooffer.

Recommendation11.2:Thatgovernmentcontinuetoaddressthebroadbandchallenges

forBritishColumbiaby:

establishing a plan to address broadband related hindrances to economic

developmentinBC;

continuing to use its own telecommunications procurement as a lever for

supportingregionaldeliverythroughlocalISPsandmakethissolutionpartofa

broaderpackagethatsupportslocalISPsinthedeliveryoftheseservices;and

continuinginvestmenttoassistFirstNationsinbroadbanddeliveryandrelated

capacitybuilding.

The PTC learned that for regions to takebetter advantage of existing government

programs there needs tobe collaborative working structures at the regional level to

addressinnovationandeconomicdevelopment.Thesecannotbedrivenbytheprovincial

governmentbutmustinsteadbeledbylocalbusinessorganisationsthatarebestsuitedto

identifyandleveragearegionsstrengths,andcaninvolveandunifycommunities.

Suchorganisationshavebeencreatedinthepastbuttheyneedastable,secureeconomic

developmentfundingstructurethatwilldrivetheregionalcollaborationthatbroader

governments need in their grassroots economic development partners. The

administrativecriteriaofsuchorganisationsshouldbeverystricttoensuredatabased

decisionmaking.

Recommendation11.3:Thatgovernmentcreateastable fundingstructure fornongovernmenteconomicdevelopmentbodiesthat:

areregionallycollaborative;

arelocallydrivenbybusinessleaders;

havesignificantindustryinput;and

havestrictdatadrivencriteriafordecisionmaking.

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EXECUTIVESUMMARY

Aswellascoordinationwithinaregion,thereisaneedforgreatercoordinationamongst

BCsadvancededucationinstitutions,organisationsandcompanies.Thisisparticularly

true for industries andbusinesses located away from the academic centres. Local

industries will often have a research challenge or innovation idea and require theassistanceofacademicexpertisetobringittofruition. Industryisunclearaboutwhoto

contactforexpertiseduetothelackofcoordinationwithinthesystem. Thereneedstobe

amethodforindustrytoshareresearchchallengeswithacademia. BCneedsregionally

relevant,internationallycompetitive,leadingedgeappliedresearchproducedbyworld

classacademicsinpartnershipwithvariousstakeholders.

Recommendation11.4:That theMinistryofAdvancedEducationsupport regional

researchdevelopmentanddeploymentintheregionsincollaborationwiththeBC

InnovationCouncilandpostsecondaryinstitutions.

Asindustrysectorstransformandtheeconomydiversifies,postsecondaryinstitutions

needtoeffectivelyrespondtolocalindustryandcommunityneeds.Thisisparticularlya

challengeforBCsruraleducationinstitutionsastheyattempttodelivereducationand

trainingservicestoasmall,geographicallydispersedpopulation.

Toaddressthisissueadvancededucationinstitutionsrequiretheflexibilityforjustintime

trainingmodels. Therecouldbearegionalorgrantfundtocoverthecostofimporting

summerorothershorttermprograms. Amodelthatprovidedcommittedgovernment

fundingforalimitedtimeperiodwithshortnegotiationandapprovalprocesseswould

greatlyassistcollegesastheymeetindustryneedsandaddressBCsskillsshortage.

Recommendation11.5:ThePTC recommends therebeabudgetallocation to fund

programflexibilityinordertoestablishshorttermandemergingtechnologytraining

programsasrequiredbyindustry.

OnefinalregionalissueidentifiedbythePTCisaccesstocapital,particularlyinsmaller

communities. UnderthegovernmentscurrentSmallBusinessVentureCapitalActs

(SBVCA)CommunityVentureCapitalProgram,$3millionintaxcreditsisallocatedfor

regionaldistribution.Thereispotentialtoexpandthisprogram. Thegovernmentcould

provideadditionalallocationtofundraisetotheVentureCapitalCorporations(VCCs)

withtheconditionthattheadditionalmoneyisspentregionally.

Furthermore,oneoftheanomaliesofthecurrent$3millionallocationisthatthevast

majorityofitisdistributedinthelargerregionalcentres. Thereisproportionallyless

distributedinthesmallerregionalcommunitieswhereaccesstofinancialorlegaladvice

andgovernmentagenciesismorelimited.Governmentshouldmakegreatereffortsto

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EXECUTIVESUMMARY

promotethisprograminsmallercommunities.

Recommendation11.6:ThePTCrecommendsthatadditionaltaxcreditsbeallocatedto

the Small BusinessVenture CapitalActs (SBVCA) CommunityVenture Capital

ProgramintheformofincreasedregionalallocationsandthattheInvestmentCapitalBranchimplementpolicytoencouragegreaterdistributiontosmallercommunities.

INDUSTRIAL DESIGN

IndustrialDesign(ID)iskeytotheinnovationandcommercialisationoftechnologies. It

isoneofthefewmeansleftforcompaniestogainacompetitiveadvantage,particularlyin

maturemarkets.

CompanieswhichuseIDoftenexperienceincreasedsales,improvedprofitmarginsand

higherstock

performance.

One

American

study,

for

example,

found

that

for

effective

designcompaniestheaverageearningstonetsalesratio75%higherthantheindustry

averageoverasevenyearperiod.CompaniesderivethesebenefitsbecauseIDhelpsto

differentiateanddefinepremiumproductsinanerawhenmostcompetitorshavethe

sameofferings. IDcanimproveaproductsutility,userexperienceandsustainability. It

canalsoimprovenewproductdevelopmentandmanufacturingprocesses.

Furthermore,thereisacorrelationbetweenajurisdictionsuseofdesignanditsglobal

competitiveness. Manyjurisdictions that have promoted ID are reaping thebenefits

includinghigherexportsandemployment.ThisisbecauseIDnotonlyhelpsdevelopthe

innovative

technology

sectors

that

drive

future

growth

and

competitiveness,

but

it

can

alsorevitaliseindustriesthatarestagnantorfacingchallenges.

BCsassetsinthisareaincludetheEmilyCarrUniversityofArtandDesign(ECUAD),a

National Design Research Networkbased at SFU, BC Industrial Design Association

(BCID),andastrongcreativeclass.BCcanbuildonthesestrengths. ID,forexample,can

playacriticalroleinthedevelopmentofcleantechnologiesandtheirassociatedproducts

and services. Itcanalsohelp transform our traditional resourcebased industries to

ensuretheyremaincompetitiveandanimportantcontributortoBCseconomy.

ThePTCidentifiedanumberofpotentialactionsforgovernmentbutoverallbelievesthat

governmentneedsaplanthatencouragesgreateruseofID.

Recommendation 11.7: That the provincial government develop a plan for the

promotion and development of Industrial Design as a key component of BCs

innovationeconomyandconsiderthefirststepofproviding$4.5milliontofundan

IndustrialDesignChairfortheEmilyCarrUniversityofArtandDesign.

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Clean TechnologyIntroduction

Climate change has become the key driver of a worldwide shift to environmental

responsibility.Furthermore,mostbelievethatcleantechnologieswillplayacriticalrolein

addressing climate change. These two factors have created a market demand for clean

productsandserviceswhichrepresentsasignificanteconomicdevelopmentopportunityfor

BC.ByencouraginglocaldevelopmentoftechnologytoaddressourownchallengesinBC,

governmentcanensureBCcompaniesarepositioned to takeadvantageof thisgrowingmarket.

Todate,themostcomprehensiveanalysisoftheeconomicimpactofclimatechangeandthe

roleofgovernmentinaddressingitiscontainedintheSternReviewReportreleasedin2006.1

Table1:SternReviewReport

STERN REPORT FRAMEWORKEARLY BCACTIONS

Strong long term targets for reducing GHGs and energy use

Price on carbon

Support for clean technology development

Remove barriers to behavioural change

Action to reduce deforestation

Planning for adaptation

International cooperation

Amend regulations for all above TBD

The BC provincial government isbeginning to effectively address these areas. It has

introducedacarbontax,incentivesforhybridvehicles,asignificantnewtransitplan,and

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CLEANTECHNOLOGY

amendedlegislationaroundtheBCUtilitiesCommissionandfuelstandards.Thesechanges

positionBCasagloballeaderinenvironmentalpolicy. ItalsoallowsBCtotakeadvantageof

boththeworldwideimperativetobemoreaccountablefortheimpactontheenvironment

anditsexpertisetobecomealeaderinthedevelopmentofcleantechnologies.

The PTC 10th report released in September 2007 identified opportunities for BC in the

generation of clean electricity and in the development of associated technologies. We

commendgovernmentfortakingactiononmanyofthoserecommendations. Inthisreport

thePTCcontinuesitsexaminationoftheapplicationanddevelopmentofcleantechnologies

inBC. TwomoresectorswhereBChasopportunitiesare incleantransportationand in

makinggreateruseofwasteasaresource.

Clean Transportation

ANALYSIS AND OPPORTUNITY

Estimates are that 38% of BCs total carbon emissions come from transportation. This

proportionishigherthaninmostjurisdictionsbecauseapproximately90%ofourelectricity

generationisfromcleanhydropower. Thebreakdownofemissionsfromthetransportation

sectorinBCisasfollows:

PassengerVehicles37%;

HeavyDutyVehicles24%;

Offroad20%;and Marine,RailandAir19%.

Becausetheprovincehascommittedtoa33%reductionintotalGreenhouseGases(GHGs)by

2020, addressing the clean transportation challenge is mandatory. However,because

generationofGHGsfromtransportationisanimmenseglobalchallenge,thedevelopmentof

technologytoaddressitconstitutesaneconomicopportunity. Transportationaccountsfor

justoveraquarterofthetotalglobaldemandforenergyandthistotaldemandisestimatedto

growby55%between1995and2020.2 BCcanputitselfattheforefrontoffindingsustainable

transportationoptionsthataccommodateorreducethedemand.

TECHNOLOGIES

Thethreekeycomponentstoamoresustainabletransportationsystemare:

improvingvehicleefficiency;

changingtheenergysources;

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CLEANTECHNOLOGY

andreducingtheamountoftravel.

Thetechnologysolutionsthatareeitheravailableintheneartermorarealreadyavailable

willnotmeetallofourneeds. However,longtermsolutionscanonlybereachedbytaking

theinitialstepsrequiredtodeveloptheshortertermsolutions. Currentgasolinehybridcarsforexampleareasteptowardsdevelopingpluginhybrids,whichinturnareasteptowards

fuelcellhybrids. Thefinalstepisdependentuponthefirstbeingtakensuccessfully. InBC

boththosefirststepsandourlongtermsolutionsareprimarilyinareasofalternativepower

sourcesandincreasedwelltowheelefficiency.Thesearecriticalcomponentsoftheenergyto

transportationconversionchainasillustratedinFigure1.3

Figure1.Energyconversionchainfortransportation

Energy SourcesFossil fuelsNuclear powerRenewable energyBiomass

Energy carriersRefined petroleum productsElectricityNatural gasHydrogenBiofuels

TransportationOther energyneeds

Processing Storage End UseConversion

EmissionsEmissions

Inthischain,theimportantcleantransportationtechnologiesforBClieinthedevelopmentof

energycarriers,instorageandinenduseconversion. Theseinclude:4567891011

A. AlternativeFuelsThesecomprisebiogasfromanaerobicdigesters,hydrogenand

biohydrogen,andliquidbiofuelsincludingbothbiodieselandcellulosicethanol.It

alsoinvolvesassociatedsystemstoensurethebioproductsarepureenoughforuse.

B. BatteriesandBatterySystemsThereareavarietyofbatterysystems including

nickelmetalhydrideand lithium ionbatteries.Lithium ionbatterieshaveahigh

energydensityandarerecyclableattheendoftheirservicelife.Equallyimportantare

theassociatedpowerconversionandbatterymanagementandcontrolsystems.

C. HydrogenStorageSystemsCurrentonboardhydrogenstorageapproachesinclude

compressedhydrogengastanks,liquidhydrogentanksandmetalhydrides. Storingsufficient hydrogen on a vehicle to provide power for adequate distances at

reasonablecostremainsachallenge.

D. FuelCellSystemsFuelcellsystemsaresimpleelectrochemicalconversiondevices

which directly convert the chemical energy stored in a fuel like hydrogen into

electricalenergy.

E. GasDrivenEnginesThisinvolvesthedevelopmentofcleanerinternalcombustion

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CLEANTECHNOLOGY

enginesandthemotorsthatactuallyusethealternativefuelsources.

F. ZeroEmissionVehicles(ZEVs)andHybridsZEVsarevehicles thathave:no

tailpipeemissions,evaporativeemissions,onboardemissioncontrolsystemsandno

emissionsfromgasolinerefiningorsales.Hybrids,orHybridElectricVehicles,HEVs,

arevehicles thathave twoormorepowersources,suchasanelectricmotorandconventionalgasoline.ThesetechnologiesincludebatteryoperatedElectricVehicles,

FuelCellElectricVehiclesandPluginHybridElectricVehicles.TheHEVsarethe

hybrid vehicles commercially available today. Some of the others are available

commerciallyforcertainspecialtyapplications.

BritishColumbiacompaniesandtechnologiesplayvariousrolesinthedifferent

technologyareasdescribedabove. Manyhavenotonlysuccessfullydemonstratedtheir

technologiesbutalsohavethemcommerciallyavailable. TheSectorProfileforAdvanced

EnergyreleasedbytheMinistryofEconomicDevelopmentclearlydemonstratessomeof

ourstrengths.

It

highlights

our

research

capabilities

in

each

of

these

areas

and

lists

some

of

ourstrongestcompanies.Itstatesthatthere are approximately 89 companies currently

active in the Advanced Energy Sector, generating revenues of approximately $750 millionand employing about 3,000 people.12

Waste as an Energy Resource

ANALYSIS AND OPPORTUNITY

Modernsocietycreatesagreatdealofwaste. ItisestimatedthatMetroVancouvercurrentlygeneratesover3milliontonnesofsolidwasteannually,andthishasbeenincreasing. The

current generation rate is approximately 1.5 tonnes per person annually. As Metro

Vancouverspopulationincreasesfrom2millionto3million,wastegenerationisanticipated

toincreasefrom3millionto4.5milliontonnesperyear.13 Solidwasteisjustonepartofthe

challenge. TheCapitalRegionalDistrictgeneratesover100millionlitresofsewageperday,

enoughenergytoheatapproximately30,000homes.1415Thesemunicipalwastefiguresdonot

includeagriculturalwasteorwasteproductsfromourindustrybase.

Therearenumerouswaysfortechnologytoaddressthewastechallenges. Theyrangefrom

improvedmanufacturing

and

packaging

methods,

to

reusable

product

design

and

better

recyclingsystems. TheopportunityidentifiedbythePTCinvolvesrecoveringmaterialsand

energyfromourwastestreams.

Toomuchofourwasteisnotbeingharnessedandthereareanumberofwaystocaptureand

usetheenergycurrentlybeinglost.Thepotentialenergythatmightbeharvestedfromwaste

representsamaterialopportunitytocontributetoourcurrentenergyutilization.Oneestimate

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CLEANTECHNOLOGY

ofthetotalLowerMainlandbiogasenergypotentialfromorganicandsewagewasteisover

4,500,000gigajoulesperyearor2%ofthetotalenergydeliveredbyTerasenGas.16 17This

representsenoughenergytoheat45,000homesperyear,ortorun2,250busesperyearand

wouldconstituteadirectreductionof220,000metrictonsofCO2equivalents. Thatwould

requireidealcaptureconditions,butisdemonstrativeoftheopportunitynevertheless.

A second opportunity is in the growing demand for clean energy generation and

transmission.BCcandevelopandsellthenewproductsandprocessestotheglobalmarket

whiletakingadvantageoftheprovincesownwastetoenergyopportunities. Themarketis

immense,particularlyintheUS,whereitisestimatedthatUSlandfillsareresponsiblefora

thirdofallmethaneemissionsworldwide.18

TECHNOLOGIES

Theprocesses

of

converting

waste

to

energy

are

complex.

There

are

anumber

of

different

decisionsthatneedtobemadebasedonthenatureofthewastebeingconvertedandthe

potentialenduser. Figure2depictsdifferentstagesofwastetoenergyconversion,andlists

thetypesoftechnologiesthatcanbeconsideredateachstage.

Figure2.Wastetoenergysources,energycarriersandconversionchain

Transmissionand storage

Energyconversion

Theprocessdelineatedabove isone inwhichthewastesource is identified,amethod ischosentoconvertthattoenergyortoausableformofenergystorage,adecisionismadeon

howtotransmitthatenergyifnecessaryandfinally,thebestuseforthatenergyproductis

determined. Eachdecisionorstageinvolvestechnology. Examplesinclude:1920212223

A. CombustionThismostbasicenergyconversionprocessforbiomassyieldsashand

Wood waste

Agriculturalwaste

Waste fromindustrialprocesses

Residentialwaste

CommercialandInstitutionalwaste

Wastesupply

End use

Incineration /combustion

Gasification

Anaerobicdigestion

Pyrolosis

Woodpelletization

Biofuels

Gas pipeline

Liquefied gastransport andstorage

Liquid fueltransport andstorage

Heat

Electricity

Cogeneration

Transportation

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CLEANTECHNOLOGY

hotgaseswhichcaninturnbeusedtogeneratesteamtodriveaturbine.

B. GasificationTheconversionofbiomassintoashandvolatilegaseouscompoundsat

hightemperatureswiththerestricteduseofoxygen. Thiscreatesaflammablegas

readytocombust.

C. PyrolosisBiomassisheatedintheabsenceofoxygentovaporizeaportionofthematerial,leavingacharbehind.Biooilisproducedbycondensingpartofthegases

formedintheprocess.

D. AnaerobicDigestionAbiologicaldigestermimicstheprocessesoccurringinsidea

landfill,butacceleratesthesereactionsandproducesausefulresidue.

E. WoodPelletizationThemanufacturingofpelletsstartswithsizereductionandthe

extractionofcontaminants.Thematerialisthereafterdriedandhammermilleddown

toaspecifiedfractionalsizeandfinallyextrudedinapelletizer.

F. CellulosicEthanolSomeemergingtechnologiesofferthechancetocreateethanol

fromnontraditionalfeedstocks,suchasagriculturalresiduesorwood.

G. Bioand

Syngas

Treatments

Some

of

the

gases

produced

from

processes

such

as

gasificationneedtobetreatedorupgradedbeforetheyareusable.

H.WasteHydrogenCaptureandUseHydrogen isabyproductgasfromvarious

industrialprocessesinBC. Thereareanumberoftechnologiesbeingdevelopedto

capture,purify,compress,store,transportandusewastehydrogen.

Asmentionedearlier,theSectorProfileforAdvancedEnergyidentifiesBCcompaniesandBC

technologiesthatarelookingtodemonstrateorsupplytheirproductsandprocesses.24There

areBCcompaniesinvolvedingasification,pyrolosis,andthegenerationofbiofuels.Thereis

alsoresearchontheroleofgenomics,bothintheproductionofethanolthroughbiorefining,

andinoptimisingfeedstocksandenzymesystemsforbioenergy.Equallyimportant,thereare

usergroups inBCwhoare lookingfor thesekindsofcleanopportunities. Forexample,

municipalities,propertyandbuildingdevelopers,transportationfleetownersandgreenhouse

associationsarealllookingforalternativeoptionsfortheirenergysupplyneeds.

ThereinlaysBCsadvantage. BCislargeenoughtohavebothsupplyanddemandbutsmall

enoughthatthesepotentialpartnerscanbetterworktogether. Moreimportantlythereare

thoseonbothsidesoftheequationwhoarepreparedtoexperiment. Therearestakeholders

withingovernment, industryandacademiawhoareexploring innovativeways towork

together. Clearingbarriersofcostandregulationwillassistthegrowthofthisindustry.

Common Challenges

Tobetterunderstandtheopportunitiesarisingfromthesenewtechnologies,thePTCheldtwo

roundtables in February of 2008. One addressed alternative technologies tobe used in

transportationandthesecondlookedatwasteasaresource.Participatingintheroundtables

15


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CLEANTECHNOLOGY

wereboththosewhoareusersorbuyersofthenewtechnology,andthosewhoareinnovators

orcreators. Itbecameclearduringtheroundtablesthatnoonemiracletechnologywill

resolvealloftransportationandwastechallenges. Itwillinsteadrequireamenuofoptions

thatuserscanselectfromgiventhespecificcircumstances.

ThePTCsrolewastoidentifycommonchallengestothedevelopmentoftechnologiesacross

thesetwosectors. Duringtheroundtablesproponentsdiscussedthewidevarietyofissues

thatsurroundeitheradoptingthesenewmeasuresorbringingthemtomarket. Manyrelate

tothebarriersthatarecommontoallnewtechnologyventures,greenorotherwise. These

canincludeaccesstocapital,theskillsshortage,thecostsofprototypinganddemonstration,

creatingconsumerdemandfornewproductsandbridgingthatfinalcommercialisationgapto

create an affordable product. However, two keybarriers were identified that are more

specifictotheintroductionofcleantechnologies.

A. CostCost

issues

for

green

technologies

are

particularly

challenging

for

they

competewithlessexpensivetraditionaloptions. Thedifferentialismagnified

becausethecostoftheemissionsorwasteisnotusuallyreflectedinthecostofthe

lessgreenchoice. Thatiswhytheprovincialgovernmentistobecommendedfor

itsintroductionoftherevenueneutralCarbonTax. Introducedintheprovincial

budgetshortlyafterthePTCroundtables,itensuresthatexcessivecarbonusage

comeswithacost. Itwillhelpmakeenvironmentallysustainableoptionsmore

economicallyviable.

B. RegulationCurrentregulationsdonotrecognisetheimpactoftechnological

advancesonalternativeoptions,bothfortransportationandthetransformationof

waste. Thepaceoftechnologicalevolutionandtheurgencyofadoptingsolutions

thatwillslowclimatechangehavemadeoptionsavailablethatgovernmentsare

notpreparedtomanage.ThischallengeisnotuniquetoBritishColumbiaso

addressingitcangiveBCacompetitiveadvantageinthedevelopment,adoption

andmarketingofcleantechnologyoptions.

Belowareexamplesofthekindofregulatorybarriersthatneedtobeaddressedinboththe

transportationandwasteasanenergyresourcesectors.

I. Transportation:

A. Trucks can be made more efficient. Auxiliary Power Units can reduce idling,

aerodynamicmodificationsandmodificationstothetirescanincreasefuelefficiency.

In each case current highway regulations limit the use of these carbon efficient

technologieseitherthroughweight,orotherrestrictions;

B. Useofelectricvehiclesislimitedduetoalackofinfrastructureandcodestandardsto

16


19/87

CLEANTECHNOLOGY

allowforhomeandcommercialrecharging;

C. Vehiclesusinghydrogenasafuelarenotallowedtouseundergroundparkingunless

approvalandcomplianceisobtainedfromBCSA;

D. ProvincialSalesTax(PST)exemptiondoesnotapplytomediumdutyhybridvehicles

ortomixeduseitemssuchasboilersthatareusedtogeneraterenewableenergy;E. Hydrogenisnotrecognisedasafuelintheprovincialtaxconcessiononthemotorfuel

tax,eventhoughhydrogenasafuelisexemptfromGSTatthefederallevel;and

F. TheBCMinistryofTransportationisproposingchangestoregulationswhichwill

limitZeroEmissionVehiclestocertainroads(suchasgatedcommunities)unless

individualmunicipalitiespassbylawspermittingthemonotherspeedlimitedroads.

II. WasteasanEnergyResource:

A. FortheCityofVancouvertomovewasteheatfromtheBurnabyincineratortothe

EastFraser

development

it

would

cross

amunicipal

boundary

and

become

subject

to

theBCUtilitiesCommission;

B. MetroVancouvercanbuildsystemstorecoverenergyforusewithinitsownwater

andwastewaterutilities,butisrestrictedfromusingsuchenergyrecoveryprojectsto

generaterevenue;

C. Therearenoregulationstoallowforthecollection,handlingandtreatmentofnon

agriculturalwastesinanonfarmbiogasplant.Importationofofffarmwastelikely

requiresamendmentstoregionalSolidandLiquidWasteManagementPlanswhich

areunderthejurisdictionofRegionalDistricts, inthiscaseMetroVancouverand

FVRD;and

D. Anagriculturaloperationinterestedinonfarmbioenergyproductionthatwouldor

couldalsoacceptfeedstockfromotherfarmsorotherbiomasswastesourceswould

not be allowed to proceed based on current regulations that consider this an

industrial operationoutsideofnormalagriculturaloperations.

InJune2007,priortoits10threport,thePTCheldfiveroundtablesonothercleantechnology

sectors, including independent power production, renewable energy, bioenergy,

transportation, and energy in thebuilt environment. These roundtables also identified

regulatorybarriersasakeyinhibitortotheirgrowth. Thishandfulofexamplesillustrates

how regulations have not kept up with technology and now represent an unnecessary

impedimenttotheimplementationofbetter,moreenvironmentallyfriendlyprocesses.

In the short term, government must identify and address these existingbarriers to the

applicationanddevelopmentofenvironmentaltechnologysolutions. Fortunately,BChasa

strongtraditionandisarecognisedleaderinregulatoryreform. Since2001,BChasreduced

its regulatory requirementsby over 40%. Through the Regulatory Reform Office, the

Governmenthaspursuedinitiativestostreamlineandsimplifytheregulatorysystemwhile

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CLEANTECHNOLOGY

preservingregulationsthatprotectpublichealth,safety,andtheenvironment.Reducingthe

numberofregulationsisjustthebeginning. TheRegulatoryReformOfficeisworkingwith

ministriesacross government to improve thewaygovernment regulates andsupportsa

cultureofinnovation.

TheRegulatoryReformOfficeismakingadifferencebutitisclearfromthePTCroundtables

thatamorefocussedeffortneedstobemade.Thegovernmentmustcontinuetoaddressthe

fundamentalissuesaroundregulatorybarriers. Governmentalsoneedstogoforwardwith

mechanismsthatallowittoanticipatetheopportunitiesofferedbytechnologyanddevelop

policyandregulationthatallowstheseopportunitiestoflourish. Otherjurisdictionsalso

haveregulationsthatcannotkeepupwithdevelopmentsinemergingindustries.Beingable

tounderstand,testandimplementtechnologysolutionsmorerapidlythanotherjurisdictions

willkeepBCattheforefrontoftheevergrowingmarketforclimatechangesolutions.

TheClimate

Action

Secretariat

is

an

ideal

body

to

work

with

the

Regulatory

Reform

Office

to

identifyandprioritiseexistingchallenges. Furthermore,inordertoanticipatetechnologies

andthechallengestheymayface,bothorganisationscanworkwiththePacificInstitutefor

ClimateSolutions(PICS). Havingrecentlyreceivedfundingfromtheprovincialgovernment

thePICShasstatedthat:Workingwithgovernmentandindustry,instituteresearchteams

will frame questions, develop policy options and technological solutions, assess the

implications,andcommunicatetheissuesandopportunitiestogovernment,industryandthe

generalpublic.25 Governmentshouldensurethatanticipatingtheregulatorychangesneeded

toadoptandencourageemergingtechnologiesthatreducetheimpactofclimatechangebea

keydirectivegiventothePICS.

Recommendation

Recommendation11.1:Thattheprovincialgovernmentaddresstheregulatorychallengesto

thedevelopmentofcleantechnologyby:

directingtheRegulatoryReformOfficetocollaboratewiththeClimateAction

Secretariatandworkacrossministriestoidentify,prioritiseandaddress

regulatorybarriersthataffecttheuseandapplicationofcurrentandemerging

technologiesin

addressing

environmental

issues,

and

directingthePacificInstituteforClimateSolutions,throughitscollaboration

betweenUNBC,UVIC,SFUandUBC,tomapcurrentandemerging

technologiesandrecommendtotheRegulatoryReformOfficehowregulation

andgovernmentpolicyplanningshouldanticipateandaccommodatethe

opportunitiesthattheypresent.

18


21/87

Regional Innovation

Regional Innovation & Commercialisation

Innovationisaprocessthroughwhicheconomicorsocialvalueisextractedfromknowledge

through the creation, diffusion and transformation of ideastoproduce new or significantly

improvedproducts,servicesorprocesses.26 ConferenceBoardofCanada

Ajurisdictionsabilitytoinnovateandcommercialiseisfundamentaltoitscompetitiveness

andstandardofliving.Highlyinnovativejurisdictionsproducebetterqualitygoodsand

services,andhigherincomejobs.Theentireeconomy,includingthetraditionalresource-

basedindustries,mustbeinnovativetostaycompetitiveinthemarketplace.27Thereisan

emergingsocialandpoliticalconsensusthatinordertomaintainahighqualityoflife,BC

needs to enhance itsbasic and applied research capabilities and create new types of

knowledgebasedindustries.

BCsregionsplayanintegralroleintheoverallprosperityoftheprovince.Theregions

located outside of Greater Vancouver account for more than 50% of manufacturing

shipmentsandproduceahigherpercapitaincomefromexportsthantheLowerMainland.

FindingssuggestthattheinnovationsupportsysteminCanadahasfocuseditseffortsand

programsonlargerpopulationcentres;butshiftingthefocustofosterinnovationinthelesspopulousregionscangenerateeconomicgrowthforBCandCanada.28Thereisincreased

awareness that innovative capabilities are sustained through local and regional

communitiesoffirmsandsupportingnetworksofinstitutions.29FerenceWeicker,alocal

consultingcompanyhiredtoanalyseBCsregions,hasidentifiedthispotential.Ference

Weickerstatestherearetremendousopportunitiestoexpandeconomicactivityinawide

rangeofexistingandemergingeconomicclusters.Theextenttowhichweareabletorealise

theseopportunitieswill,inlargepart,bedeterminedbyourabilitytoimproveproductivity,

addvalueanddifferentiateourproductsandservicesthroughinnovation.30

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REGIONALINNOVATION

Objective of PTC Regional Tour

ThePTCregionaltourwasundertakenbytheRegionalInnovationTaskforcetoexaminehow

innovationandtechnologycancontributetothegrowthanddevelopmentoftheregional

economies. The taskforce focused on issues that adversely affect the regions, and held

discussionsonactionsorinitiativestoencourageregionalleadershipandcollaboration.The

findingsprovidedthetaskforcewithimportantinsightregardingissuesaffectingBCsregions

andservedasastartingpointtodeveloprecommendationsforthisreport.

FindingsfromthePTCRegionalTourSummaryofGovernmentRelatedIssues

A. ConnectivityRegionsrecognisedthatthebroadbandinfrastructurebuiltthrough

theConnectingCommunitiesAgreementwithTelusrepresentsasuccessfulfirststep.

Theyalsomadeclearthatthisisviewedasonlyafirststepandthatbroadbandaccess

isanongoingissue.

B. Government Funding Regions would like a more equitable distribution of

governmentfundsforresearch,perhapsmorecloselytiedtoregionalindustry.

C. ResearchandTechnologyProgrammingRegionswouldlikemoreregionalsupport

fortechnologyinitiativesincludingprogramslikeMentorlinxandIdealinx.

D. AcademiaandIndustryLinkagesRegionsbelieveacademiashouldbetterinteract

withandsupportindustry. Thisincludesresearchinsupportoflocalindustryand

instruction or training that isbetter tied to industry needs. Students need tobe

trainedonthemostadvancedtechnologicalequipmenttoensuretheyarepreparedfortheworkplace.Costsforsuchequipmentarehighandthisisanexamplewhere

collaborationbetweenindustryandeducationinstitutionscouldprovebeneficial.

E. TalentTheskillsshortageismorecriticalintheregionsthaninthelowermainland

andgovernmentprogrammingaroundimmigrationandHighlyQualifiedPersonnel

(HQP)needstorecogniseandaddressthis.

F. Access to Capital Access to capital is a regionally magnified challenge and

governmentprogrammingaroundtaxincentivesneedstorecognisethis.

G. GovernmentandIndustryLinkagesRegionslooktogovernmentforsupportor

assistanceinotherwaysincluding:

Marketingassistanceinternationally;

Permittingreduceredtapeonregionaldevelopment;and

Consultingassistbusinessesinbridgingthedigitaldivide.

H. RegionalEconomicDevelopmentGovernmentneedstobetterunderstandand

championregionsandinparticularregionalclustersorstrengths.

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REGIONALINNOVATION

I. RegionallySpecificIssuesTherewereanumberofissuesraisedthatwerespecific

toaparticularregionorachallengewithlimitedregionalimpact.

KeyNeedsOverallThemesfromtheRegionalTour

ThroughoutitstourthePremiersTechnologyCouncilheardfrommanyindividualsand

organisations. Mostoftheissuesdiscussedrevolvearoundspecificchallengesthatfallinto

fourkeythemesandcanbeaddressedinthefollowingways.

1. BroadbandConnectivityThereisaneedtotakethenextstepinextending

broadbandconnectivityanditsbenefitstoallregionsandremoteareasofBC.

2. RegionalEconomicDevelopmentThereisaneedforlocalstructuresthatcan

betteridentifyandleverageaspecificregionskeydifferentiatorsorobvious

strengths.

3. Industryand

Academia

Linkages

There

is

aneed

to

tie

regionally

based

researchanddevelopmenttocentrallylocatedacademicexpertiseandthen

connectthemmoreeffectivelytoeconomicopportunities.

4. GrowingInnovativeBusinessesThereisaneedtoaddresstheinnovation

challengesalreadyidentifiedbythePTCbutmagnifiedbytheregionalchallenges

ofgeographyandpopulation,suchasskillsshortages,taxcreditsandaccessto

capital.

Addressing the Needs

CONNECTIVITY

ThroughoutthePTCsregionaltour,theissuethatwasraisedmostoftenwasthecontinuing

needforbroadbandconnectivity.Citizensnowviewconnectivityasessentialinfrastructure

becausetheyneedbroadbandtoaccessbasicgovernmentservices,suchasehealthande

learning,andtheprivatesectordependsonitasanessentialbusinesstool.

Theprovincialgovernmenthasbeenworkingtosolvethis issue inBC.NetworkBC isa

dedicatedprojectofficewithintheMinistryofLaborandCitizensServices,workingwithBC

communities,the

private

sector

and

all

levels

of

government,

including

First

Nations,

to

facilitateandencouragebroadbandconnectionstoallBCcommunities.TheBCNET2010

Project, launched in 2005 with capital funding of $3.15 million from the BC Ministry of

AdvancedEducationisbuildinghighperformancenetworksforBCsresearchandhigher

educationcommunitywhiletheProvincialLearningNetwork(PLNet)isaprogramthatgives

allBCpublicschools,collegesandotherinstitutionsfullaccesstotheInternet.

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REGIONALINNOVATION

ThePTChasalsobeenfocussedonthisissueforanumberofyears.NetworkBCwasformed

followingarecommendationfromthePTCin2003. Itsmandatewastodeliverorexpand

broadbandto366prioritycommunities,119ofwhichhadnoconnectionwhatsoever.Thefirst

step,theConnectingCommunitiesAgreementwithTelus,hadthekeygoalofestablishinga

connectioninthese119communitiesandthisphaseoftheprojecthaslargelybeencompleted(allbuttwoofthe119haveabroadbandconnection)andaccordingtoNetworkBCslatest

data,360of366communitieshaveabroadbandconnectiontothecommunity.

Due to these various efforts some 92% of the province now has access to abroadband

connection,makingBConeofthemostconnectedjurisdictionsinNorthAmerica. Having

saidthat,thejobisnotfinished.Theremaining8%representsapproximately300,000people.

Thisisafairproportionoftheruralpopulationandsobroadbandremainsanissueofconcern

forthosewhocametoconsultwiththePTC.

Theprovincial

government

is

to

be

commended

for

the

resources

it

has

dedicated

to

this

challenge. Buttheyarenottheonlygovernmentthatneedstobeinvolved. In2000,the

federalgovernment set a policygoal ofensuring thatbroadband networksandservices

wouldbeavailabletobusinessesandresidentsineveryCanadiancommunity. Industry

CanadahasdonesomeworkincludingthelaunchoftheBRANDpilotprogramin2002(now

over)andtheNationalSatelliteInitiativein2003. Itshouldhoweverbecomemoreinvolved

toensurethatCanadaremainsagloballeaderinthedeploymentofbroadbandnetworks.

TheBCgovernmentshouldcontinueitsdialoguewiththefederalgovernmenttoestablisha

targetedprogramthatadvancesbroadbandconnectivitywhileaddressinglocalandregional

infrastructureneeds.

Somespecificbroadbandchallengeswereraisedontourthatgovernmentshouldcontinueto

address. Thefirstisthelackofindustrialqualitybroadbandwhichlimitslocaleconomic

developmentopportunities. Inoneregion the technologybasedeconomicdevelopment

opportunitieswereconstrainedbecausetheavailablebroadbandwastooslowandlacked

redundancy. Dataheavybusinessesinthoseareaswereoftenrequiredtoshipharddrives

viagroundtransportationwhencollaboratingwithclientsonlargeprojects. Furthermore,

thosethatrequiredsecureandconstantaccesswereunabletolocateinthatcommunityin

spiteofotherfavourablefactorsbecauseofthelackofredundancy.Thesekindsofchallenges

wereprevalenttoonedegreeoranotherinmostoftheregionsthePTCvisited.

Asecondspecificchallengeisthelastmile. AnecdotalevidencethePTCgatheredonitstourindicates that a large portion of the unserved population is located on the outskirts of

connectedcommunitiesinsubdivisions,housingclustersorfacilitieslocatedontheedgeofa

town.Weheardstoriesofindustrialparks,forexample,thatwerelessthanakilometrefroma

connectionpointbutstillcouldnotgainaccess. Thisanecdotalevidenceissupportedby

figuresfromthe2001Census.

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REGIONALINNOVATION

Theseareall lastmile issues and to date thekey toaddressing themhasbeen the local

InternetServiceProviders(ISPs).TheConnectingCommunitiesAgreementusedgovernment

procurementtoleveraPointofPresence(PoP)ineachoftheidentifiedcommunitiesfromthe

incumbenttelecommunicationssupplier(Telus). ThelocalISPthenaccessedthePoPata

discountedrateanddeliveredtheservicetothehome. Governmenthasalsoplayedarole.NetworkBChashelpedbridgesomeofthislastmilecost,throughleveraginggovernment

spending,grantsandotherassistancetocommunities.

The local ISPs will continue tobe key players in addressing the remaining last mile

challenges.Theirlocalknowledge,localnetworks,experienceandexpertisemakethemideal

partnersforexpandingdeliverytothenextlayerofunconnectedBCcitizens. Theyalsotend

tobebasedinlocalcommunitiessotheyhavethegreatestinterestinsolvingthechallenge.

ThemodelthatallowsthelocalISPstoprovideservicetothesesmallercommunitieshinges

onprovidingthemwithlowcostaccesstothePoP. Thusitisimportantthattheseremain

partofprocurementpolicyasgovernmentnegotiatesitsnextMasterServicesAgreementfor

telecommunicationsservices. IftheISPsloseaccesstothediscountedPoPs,thesuccessin

bridgingthedigitaldividecouldbereversed.

BridgingthelastgapswilltakemorethanmaintainingthisPoPaccess. Governmentshould

considerdevelopingapackagethatprovidesavarietyofavenuestoencourageandassist

localISPsindeliveringlastmileservices. Optionsitcouldconsiderinclude:

taxincentivesforsmallInternetServiceProvidersofferingconnectionsorfor

householdsthatorderanInternetconnectioninruralandremoteareas;

internalgovernment

coordination

to

reduce

the

administrative

burden

and

costs

incurredbysmallISPswhoareworkingtobridgethedigitaldivide(i.e.towersites

onCrownLand);and

acentralisedtechnicalsupportstructurethatcansustainparticularlyremoteISPs

andnotforprofitcommunityISPs.

AnotherconnectivitychallengebroughttotheattentionofthePTCisthecontinuingneedfor

broadbandsolutionsforFirstNationscommunities. Ineverycommunitywevisited,First

Nationsrepresentativesexpressedhowcriticalbroadbandwastotheirfuture.

Assisting

First

Nations

to

deliver

connectivity

to

their

communities

is

a

government

priority,

andcarriesparticularsignificancegiventherecentshiftinrelationsbetweenthefederaland

provincialgovernments,andFirstNations. TheNewRelationshipwithAboriginalPeople,

theTransformativeChangeAccordandBillC34arealldevelopmentsthatoccurredafterthe

PTCsoriginalbroadbandrecommendations.

InNovember2005FirstMinistersandNationalAboriginalLeadersagreedtotakeactionto

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REGIONALINNOVATION

improvethequalityof lifeforCanadasAboriginalpeoplesinfiveimportantareas:First

NationCrown relationships,health,education,housingandeconomicopportunities. In

accordancewiththatcommitment,BC,CanadaandtheprovincesFirstNationsLeadership

CouncilsignedtheTransformativeChangeAccord,whichcommitspartiestoclosingthe

socioeconomicgapsoveratenyearperiod. TheAccordincludesnumerouscommitments,suchasprovidingbroadbandconnectivitytoFirstNationscommunitiesandthecreationofa

fully integrated clinical telehealth network. Bill C34 gives First Nations control of the

curriculumdevelopmentanddeliveryfortheireducationprograms.

TheBCgovernmenthasgrantedFirstNationsmoreautonomytogovernandimprovethe

livesof theirpeople inBC.The2006ThroneSpeechspokeofclosing thegaps thathave

disadvantagedAboriginalchildrenandfamiliesinthepast.Althoughmanysocialindicators

havebeenimprovingthereisstillawidedividebetweenFirstNationsandtherestofthe

population for statistics such as unemployment and high school graduation rates. The

Campus2020

Report,

prepared

for

the

Ministry

of

Advanced

Education

in

April

2007,

has

set

agoaltoensuretheratesofAboriginalpostsecondaryparticipationandattainmentareequal

totheratesforthegeneralpopulationby2020.31ConnectivitycanempowerFirstNations

communitiesandprovidethemwithopportunitiesandtheabilitytocontinuethriving.The

FirstNationsSummitChiefs,uponcreatingtheFirstNationsTechnologyCouncilin2002,

declaredtheinternetacrucialelementoflife,asvitalascleanwaterorcommunityland.

In order to meet commitments made to First Nations over the past several years, the

provincial government has to make significant investments that assist First Nations in

deliveringbroadbandconnectivityforalloftheircommunities. Itmustnotonlyassistin

connectivitybut also in capacitybuilding to ensure the expertise isbuilt that can take

advantageofwhatthetechnologyhastooffer. Aswithbroadbandissuesfacingthebroader

population BC must also encourage the federal government to support First Nations

broadbandinitiatives.

Recommendation11.2:Thatgovernmentcontinuetoaddressthebroadbandchallengesfor

BritishColumbiaby:

establishingaplantoaddressbroadbandrelatedhindrancestoeconomic

developmentinBC;

continuingtouseitsowntelecommunicationsprocurementasaleverfor

supportingregionaldeliverythroughlocalISPsandmakethissolutionpartofa

broaderpackagethatsupportslocalISPsinthedeliveryoftheseservices;and continuinginvestmenttoassistFirstNationsinbroadbanddeliveryandrelated

capacitybuilding.

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REGIONALINNOVATION

INNOVATION IN THEKNOWLEDGE ECONOMY-THENEED FORCOOPERATION

Duringtheregionaltourmanyparticipantsstatedthatgovernmentneedstoincreasethe

economicdevelopmentservicesandprogramsitofferstotheregions. Tounderstandthis

concernitisimportanttoexaminetheprovincialandfederalinnovationinitiativesalreadyunderwayinBritishColumbia. TheBCInnovationCouncil(BCIC)inparticularhastobe

recognisedforrecent,regionallyrelevantinitiatives.Theyarelookingtocreatevirtualboards

toassistcompaniesandtheyareestablishingbusinessplancompetitionstograduatemore

regional companies. BCIC is also working with the Regional Science and Technology

Network(RSTN)toensurethatthenetworkhasanefficient,cohesiveapproach,andhas

granted them additional funding to administer mentoring programs. The provincial

governmenthasalsoundertakenanumberofoutreachinitiativessoregionscantakebetter

advantageof thestrong,butunderutilised,ProvincialNomineeProgram (PNP) tobring

skilledworkerstoBCcommunitiesfromothercountries.

Thereareanumberofotherlaudableprograms,(seeAppendixCforafulllisting)yetit

becamecleartothePTCthatmoreneedstobedoneatthelocalleveltoensurethebenefitsof

theseeffortsare felt in theregions.Numerousstudies indicate that for theeffortsof the

broadergovernmentstobeeffective,theremustbearegional,grassrootspartnertodrive

economicdevelopment. ThisraisesthekeychallengeidentifiedbythePTConthistour.

Withineachregion,thereisanotabledifferenceinthelevelsofcollaborationforeconomic

development. The PTCbelieves improving the locally driven and controlled economic

developmentnetworkswillassistinanumberoftechnologyspecificareas. Theseinclude

opportunities for: improved collaboration between research institutions and industry;

collaborationbetweenpostsecondaryinstitutionsandallianceswithresearchinstitutesand

nongovernmentalgroups.

Therehavebeenanumberofstudiesonthisissue.32TheGlobalConnectreportwasprepared

fortheMinistryofAdvancedEducationandBCICandsubmittedinMay2007. Itfoundthat

successful,sustainableinitiativesalsorequiregrassrootsmomentumthatisdrivenbylocal

leadership and a variety of other players in the innovation system. It recognised that

althoughtherehavebeenmajordevelopmentstofostercollaborationacrossinstitutionaland

organisationalboundariesinBC,thereremainsahighdegreeoffragmentationandthere

appearstobeanabsenceofacommunitythatishighlyengagedinanintegrativeprocessof

supportingcommercialisation.33Toooftenthesiloingofinterestsprohibitsthecreationof

similar collaborative cultures evidenced by the achievements of the most successfuljurisdictions, thosebeing the Connect Sweden network, the Council for Entrepreneurial

DevelopmentinNorthernCarolinaandConnectinSanDiego.34Thereportidentifiedthree

featuresofsuccessfulregions:aculturethatsupportscollaborationamongkeyelementsof

theinnovationcommunity;networksthatprovideplatformsforthatcollaboration,ledbya

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REGIONALINNOVATION

preeminent integrative organisation; and imaginative and wellaligned leadership that

allowsforthecultureandplatformstotakeroot.35

TheBanffConsensus,areportpublishedin2006followinganInnovationSummitbythe

CentreforInnovationStudies,furthersupportsthis. ItoutlinedkeyprinciplesforintegratingWesternCanadaintotheglobalinnovationsystem.TheConsensusnotedthatbothtopdown

andbottomupinitiativesareneededtocultivateinnovation,butthatinnovationcannotbe

stimulatedwithoutvisionandleadership. Italsodiscussestheabilityofgovernmentstoadd

value through cooperation. Pooling industryacademia research capabilities, bringing

knowledgeandskillstogether,leveragingR&Dresourcesandraisingtheprofileofregional

initiativescanharnesssignificantpotential.36

Asanexample,Japanimplementedinitiativesdesignedtoovercometheisolationofsmall

firmsinoutlyingregions.TheIndustrialClusterProjectoftheMinistryofEconomy,Trade

andIndustry

(METI)

and

the

Knowledge

Cluster

Initiative

of

the

Ministry

of

Education,

Culture,SportsandScienceandTechnology(MEXT)aimedtobuildinterfirmnetworksand

encourage universities and governments to play a more active role in local economic

development. The nine regionalbureaus of METI established networks of local SMEs,

universitiesandpublicresearchinstitutions.METIvisitsindividualcompaniesandresearch

laboratories, introducingbusinesses to local research facilities and finding matches for

researchandbusinessopportunities. MEXTfocusesoncommercialisinguniversityresearch

byencouraginginstitutionstoworkwithfirmsinlocalareas.Itprovidesseedfundingfor

joint activities, as well as the operating costs of associations, and improves the flow of

researchfromandbetweenuniversities.By2005METIhad19industrialclusterprojectswith

about6,100participatingcompaniesandaround250universities;italsoinitiated40,000new

businesses.37

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REGIONALINNOVATION

LessonsLearnedfromJapanBCImplications

A report producedby the Asia Pacific Foundation of Canada entitled,Japanese

ApproachestoTechnologyClusters:ImplicationsforBritishColumbia,examineswhat

canbelearnedfromtheJapaneseexperienceofclusterdevelopment.

A. NationalandProvincialBackingforLocalClusters

Indepthclusterstudiesneedtobecarriedoutbasedonthecompetitivestrengthsof

each of BCs regions and universities. BCs regions currently lack (strong enough)

coordinatingorganisationstosupporteconomicgrowthandtechnologyandtheylack

the capacity to plan and promote clusters. The commentary states, bottom up

initiativeswillonlybesuccessfulifalliedwithstrongcapacitybuildingintheregions

providedbycentralgovernments.

B. TheImportanceofLocalLeadership

Civicentrepreneurs

are

vital

to

catalyzing

collaboration

and

the

development

of

new

industries in local regions. They are adept at assisting with strategic visioning,

galvanizingsociallyorganisedactivitiesandrepresentingthecollectiveinterestsoftheir

region.

C. StrongerSupportforUniversityIndustryLinks

Theolddivision inknowledgeproductionbetweenpureandappliedresearchhas

givenwaytonewformsofpartnershipsandcollaboration.Effortstoimprovethese

relations are taking place as evidenced by on campus incubator facilities and

TechnologyLicensingOfficesinJapan.

D. APlacetoCallHome

Theimportanceofinformallinkagesandcontactshasbecomewidelyacceptedinthe

innovationliterature.Crosspollinationofideasandprojectsprovidessynergiesand

encouragesserendipitousinnovation.TheKyotoResearchParkisagoodexampleof

the importance of place. The commentary suggests that BC should establish these

hubsandspaceshouldbesetasideforresearchinstitutes,industrialassociationsand

governmentagenciesatthesamelocation.Establishingtheselocalesshouldthentake

placeacrosstheprovince.38

Clearly,BritishColumbianeedscollaborativeworkingstructuresat theregional level to

addressinnovationandeconomicdevelopment.Forthesestructurestobeeffectivehowever

theycannotbedrivenby theprovincialgovernment.Theeffortmustbedrivenby localorganisationsthatcanidentifyandleveragetheregionsstrengthsandarealsobestsuitedto

meaningfullyinvolveandunifythecommunitiesandindustriesintheregion. Thebody

should includecommunity champions,representatives from industry,different levelsof

governmentandacademia,andRSTNs. Itiscriticalthattheyactunderoneumbrellagroup

andagreeonkeyareasoffocusfortheregion.

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REGIONALINNOVATION

ThePTCnotesthatsucheffortsandinitiativeshavebeenundertakenbefore,mostrecently

throughtheRegionalEconomicAllianceprogram,whichwaspilotedin2005.Thatprogram

wasprecededbytheOkanaganPartnershipwhichbeganwithsomefederalfunding. These

organisations have faced challenges however as the limitations of pilot funding have

preventedcreatingasustainablemodel. Theyareoftenforcedtofundthemselvesthroughadministrationfeesonaprojectbyprojectbasisandthislimitstheirabilitytofocusonthe

besteconomicdevelopmentstrategyforagivenregion.

Theneedthenisforastable,secureeconomicdevelopmentfundingstructurethatwilldrive

the regional collaboration thatbroader governments need in their grassroots economic

developmentpartners.

Recommendation 11.3: That government create a stable funding structure for non

governmenteconomicdevelopmentbodiesthat:

are

regionally

collaborative;

arelocallydrivenbybusinessleaders;

havesignificantindustryinput;and

havestrictdatadrivencriteriafordecisionmaking.

REGIONAL INDUSTRYRESEARCH COLLABORATION

Aswellascoordinationwithinaregion,thereisaneedforgreatercoordinationamongstBCs

manyadvancededucationinstitutions,organisationsandcompaniestoenhanceinnovation

andcommercialisation. Thereareanumberofprovincialprogramsandorganisationsthat

are

looking

to

address

this.

The

Accelerate

BC

program

developed

by

MITACS

is

an

excellent

example. Itplacesgraduatestudents inanactualworkplacetoassistonresearchissues.

Another is the Applied Genomics Innovation Program from Genome BC. It looks for

genomicsapplicationsinexistingindustriesandcurrentprojectsincludeapplicationsfor

fishing,mining,bioenergy,andagriculture. Therearealsoinstructivemodelsfromother

jurisdictions,suchastheUK.

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REGIONALINNOVATION

UKInitiativestoPromoteInnovation

TheUKDepartmentforInnovation,UniversitiesandSkills(DIUS)isofferingarangeof

initiatives intended to help smallbusinesses link up with universities and colleges to

developnewproductsandservices.Keyfeaturesinclude:

Atleast1,000innovationvoucherseveryyearby2011tosupportsmalland

mediumsizedbusinessestoworkwithauniversity,furthereducationcollegeor

researchorganisationoftheirchoice.Thisisexpectedtogenerateaninvestment

ofatleast3milliontoinitiatecollaborationsbetweenSMEsandtheknowledge

base.

Doublingthenumberofknowledgetransferpartnershipsbetweenbusinesses,

universitiesandcolleges.

Pilotinganewspecialisationandinnovationfundthatbooststhecapacityof

furthereducation

colleges

to

unlock

workforce

talent

and

support

businesses.

Expandingthenetworkofnationalskillsacademies.

DIUSandtheConfederationofBritishIndustry(CBI)willfacilitatethe

interchangeofinnovationexpertisebetweenthepublicandprivatesector,

includingthesecondmentofprivatesectorexpertsintothepublicsectorforthe

purposeofmentoringinproinnovationprocurement.39

WhatBCcurrentlylacksisanoverarching,collaborativeprogramtotieitsdifferentinitiatives

together. Aswellascoordinationwithinaregion,thereisaneedforgreatercoordination

amongstBCsmanyadvancededucationinstitutions,organisationsandcompanies.Thisis

particularlytrueforindustriesandbusinesseslocatedawayfromtheacademiccentres.Local

industrieswilloftenhavearesearchchallengeorinnovationideaandrequiretheassistanceof

academic expertise tobring it to fruition. Industry is unclear about who to contact for

expertiseduetothelackofcoordinationwithinthesystem. Thereneedstobeawaythat

industry can share research challenges with academic researchers. BC needs regionally

relevant,internationallycompetitive,leadingedgeappliedresearchproducedbyworldclass

academicsinpartnershipwithvariousstakeholders.

Recommendation11.4:ThattheMinistryofAdvancedEducationsupportregionalresearch

developmentanddeployment in the regions incollaborationwith theBC Innovation

Councilandpostsecondaryinstitutions.

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REGIONALINNOVATION

BCSADVANCED EDUCATION INSTITUTIONS -RESPONSIVENESS AND FLEXIBILITY

Asindustrysectorstransformandtheeconomydiversifies,postsecondaryinstitutionsneed

to effectively respond to local industry and community needs. At the regional level in

particular,theirmandateseemstobechangingastheyarerequiredtobalancelocalissuesandprovincialtrainingpriorities. BCsruraleducationinstitutionsfaceaddedchallenges

when attempting to deliver education and training services to a smaller, geographically

dispersedpopulation.

Asanexample,acompanymayneed50workerstrainedtobeminingengineeringtechnicians

overtwoyears. Theprogramwouldbefullforthatperiodbutnotsustainableinthelong

term,makingitmoreexpensivetoinitiate. Furthermore,technologyrelatedprogramsare

expensivetostartandrunforashortperiodsoitisnoteconomicallyviableforthebusinessto

payfortheentirecourse. Placingthecostsolelyonthestudentisanequallyimpractical

solution.

To address this issue advanced education institutions require flexibility forjust in time

trainingmodels. Technologycanplayaroleinaddressingthischallengeasitnowoffers

greater opportunities to diversify offeringsby partnering with other institutions. The

MinistryofSmallBusinessandRevenuehasrecentlyinstalled38videoconferencingfacilities

ashavemanyofthecolleges. Thesefacilitiescanhelpdeliveroneoffprogramstoaddress

shorttermneedsaswellasdiversifyofferings.

Collegesshouldbeincentedtohostestablishedprogramsfromotherorganisationsandthe

additionalcostsincurredshouldnotbepaidbytheexistingbudget.Therecouldbeagrant

fund,oraregionalfund,tocoverthecostsofimportingsummerprogramsorprograms

with a one or two year window of viability. A new model that provided committed

governmentfundingforalimitedtimeperiod,withashortnegotiationandapprovalprocess,

couldmeetsomeindustryneedsandhelptoaddressBCsskillsshortage.

Recommendation11.5:ThePTCrecommendstherebeabudgetallocationtofundprogram

flexibilityinordertoestablishshorttermandemergingtechnologytrainingprogramsas

requiredbyindustry.

CAPITAL

TheMinistryofEconomicDevelopmentsInvestmentCapitalBranchadministerstaxcredit

incentives under the Small Business Venture Capital Act (SBVCA) and the Employee

InvestmentAct(EIA).BothprogramssupporttheBCgovernmentscommitmenttotriplethe

supplyofventurecapitaltocompaniesincommunitiesthroughouttheprovince.Ensuring

thereisadequateseedcapitalforemergingsmallbusinessesisastrategicpriorityandover

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REGIONALINNOVATION

$270millionhasbeeninvestedineligiblecapitalinvestmentsundertheSBVCAsince2003.40

The PTC wishes to congratulate government for this highly successful initiative that is

promotingeconomicdevelopmentandfosteringacultureofinnovationintheprovince.

TheEquityCapitalProgramwascreatedtoencourageequityinvestmentineligiblesmall

businessesinBritishColumbia. Torecognisetheriskelementinvolvedinmakingequity

investments,theprovinceprovidesa30%refundabletaxcredittoinvestorswhoinvestin

eligible smallbusinesses under the program. The SBVCA Community Venture Capital

ProgramisanaddontotheEquityCapitalProgramandwasestablishedtoencourageequity

investmentinregionalbusinessesoutsideoftheGVRDandCRD.41

TheCommunityVentureCapitalProgramallocates$3million intaxcredits forregional

distribution. This$3millionisalwaysfullysubscribed,whichindicatesthereispotentialto

expandsuch

aprogram.

The

government

could

provide

additional

allocation

to

fundraise

to

theVentureCapitalCorporations(VCCs)providedthatadditionalmoneyisspentregionally.

Should the regional component notbe met, government could clawback the difference

through the pacing requirements. Furthermore, one of the anomalies of the $3 million

regionalallocationisthatthevastmajorityofitisdistributedinthelargerregionalcentres.

Thereisproportionallylessdistributedinthesmallerregionalcommunitieswhereaccessto

financialorlegaladviceandgovernmentagenciesismorelimited.

Onepotentialsolutionistoexpandtheregionalallocationbutintheformofathirdtier,for

regionsofevensmallerpopulationthanwherethemajorityofthecurrentregionalallocation

isdistributed.Thechallengetotheadministrationofsuchaprogramhoweverwouldbehow

todifferentiatebetweensuchcommunitiesandthelegalimplicationsofsuchadifferentiation.

In other words, how and where would one draw the line? From an operational policy

perspectivehowever,governmentcouldmakegreatereffortstopromotetheprograminthe

smallercommunities.

Recommendation11.6:ThePTCrecommendsthatadditionaltaxcreditsbeallocatedtothe

SmallBusinessVentureCapitalActs(SBVCA)CommunityVentureCapitalProgramin

the form of increased regional allocations and that the Investment Capital Branch

implementpolicytoencouragegreaterdistributiontosmallercommunities.

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INDUSTRIALDESIGN

Industrial Design

Introduction

In its10threport thePremiersTechnologyCouncil recommendedsteps thatwouldgive

BritishColumbiaacompetitiveedgebyimprovinginnovationandcommercialisation. One

keycomponentidentifiedatthattimebutnotexpandeduponistheroleofIndustrialDesign

(ID).Anumberofstudiesindicatethatcompaniesbenefitfromusingindustrialdesign.42 43 44

45Thesebenefitsinclude:

differentiationinthemarketplace;

increasedproductutility,visualquality,anduserexperience; improveddevelopmentandmanufacturingprocesses;

greatersustainability;and

improvedbusinessperformance.

Duetothiswiderangeofbenefits,designisoneofthefewmeansleftforcompaniestogaina

competitiveadvantage,particularlyinmaturemarkets.

At Sony, we assume all products of our competitors will have basically the same technology, price,performance and features. Design is the only thing that differentiates one product from another in themarket place!

46- Nono Ohga, former Chairman and CEO, Sony

DEFINITION OF DESIGN

AccordingtotheIndustrialDesignersSocietyofAmerica(IDSA), IndustrialDesignisthe

professionalserviceofcreatinganddevelopingconceptsandspecificationsthatoptimisethe

function,valueandappearanceofproductsandsystemsforthemutualbenefitofbothuser

and manufacturer.47 Industrial design, which sometimes overlaps with other design

disciplines, isaboutmarryingprecisionandaccuracywith the look, feelandutilityofa

product. ThiscanbedemonstratedthrougharecentexampleofsuccessfulID,theApple

iPod.

Thisproduct

not

only

employed

cutting

edge

technology

to

create

an

efficient

device

forstoringandplayingmp3s,itdidsoinanattractiveandeasytouseform.ButIDisnotjust

aboutmakingaprettyproduct;itisaboutensuringtheproductisuserfriendlyandoperates

effectivelyaswell. SteveJobsofApplesaiditbest,Designisnotjustwhatitlookslikeand

feelslike. Designishowitworks.48

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INDUSTRIALDESIGN

Benefits of Industrial Design

BUSINESSCASE FORINDUSTRIAL DESIGN

Designcanbeasourceofcompetitiveadvantageinthemarketplacebecauseitdifferentiates

anddefinespremiumproductsinanerawhenmostcompetitorshavethesametechnology.49

Throughimprovingusability,ergonomics,aesthetics,sustainabilityandoverallquality,ID

creates more competitive products and services, improves customer experience and

strengthensthebrand.

Thebenefitsofdesignarenotlimitedtocreatinganimprovedproduct. IDalsoimproves

productdevelopmentandmanufacturingprocesses,speedingtimetomarketandensuring

newproducts integratewiththerestoftheproductportfolio. Itservesasaresourcefor

creatingnew

business

opportunities,

and

improving

acompanys

ability

to

cope

with

change.

IDcontributestoincreasedsales,improvedmargins,andhigherstockperformance. Inshort,

theuseofIDisjustgoodbusiness.

Asaresult,manycompanieshavemadedesignanintegralpartoftheircorestrategy. These

includeApple,Philips,Google,DeWalt,Nokia,P&G,Xerox,Sonyandothers. Theimpactof

astrongdesign program is demonstratedbysuccess stories from thesecompanies. For

example,theiPodwasredesignedforlargercapacityandsmallersize. Itwaslaunchedin

spring2004andincreasedApplesbrandvalueby24%from2003to2004.50Appleisnotthe

soleexampleofthiskindofsuccess. TheUKDesignCounciltracksaDesignIndexof61

designledbusinessestradedontheLondonStockExchange. Thisindexhasoutperformed

keystockmarketindices(FTSE100andFTSEAllShare)byabout200%inthepastdecade.5152

Increasedbrandvalue isnot theonlybenefit. Investment indesignwillcontribute toa

companysrevenueandprofit.OneannualstudyamongUKcompaniesrevealedthatevery

100spentondesignbydesignalertcompanies(1)increasedrevenueby225.5354Companies

thatincreasedtheirinvestmentindesignwerealsomorelikelytoexperiencerevenuegrowth,

byasmuchasthreefoldifthecompanyuseddesigntoleadandguidetheproductorservice

developmentprocess.Thesefiguresindicatedthatdesignalertcompaniessawanaverage

increaseof602,000intheiryearlyrevenue.55

Theimpactofdesignisnotlimitedtothisjurisdiction,norisitlimitedtoconsumerproducts.IntheFinnishmetalsector,forexample,thereisapositivecorrelationbetweenthedesign

investmentincompaniesandtheirsalesgrowth.56

1 The design alert businesses are specific 250 companies out of the 1,500 businesses thoroughly interviewed in the UK DesignCouncil National Survey of Firms. In these companies design had made a direct impact on a number of measures, such ascompetitiveness, market share, revenue and employment.

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INDUSTRIALDESIGN

SimilardesignimpactshavebeennotedinNorthAmerica.Asevenyearstudyamongalmost

200 manufacturing companies submitting filings to the US Securities and Exchange

Commission (SEC) demonstrates that companies with more effective industrial design

(rankingdonebydesignmanagersglobally)outperformtheircounterpartssystematically.For

effectivedesigncompanies;theEBITDA(Earningsbeforeinterest,taxes,depreciation,andamortisation)toNetSaleswasonaverage75%higherthantheindustryaverageoverthe

seven years. Companies with less effective ID had a 55% lower ratio than the industry

average.InvestmentindesigncanalsobemeasuredwiththeNetIncometoTotalAssets

(ROA) ratio. The study demonstrated a significant association with ROA and effective

industrialdesign. Notsurprisingly,thecompanieswithamoreeffectivedesignprogram

outperformedtheircompetitorsinstockmarketreturnsduringeveryyearofthestudy.57

There is little doubt that design is a wise investment regardless ofbusiness sector or

jurisdiction.

BENEFITS OF PROMOTING DESIGN IN AJURISDICTION

ItisjustasimportanttopromoteIDatajurisdictionallevel. IDisacriticalcomponentof

competitiveproductsandbusinessprocesses.Thisisparticularlytrueinthedevelopmentof

the innovationandtechnologysectorsthatdrivegrowthfortheeconomy. Furthermore,

increaseduseofIDincreasesexportsandemployment.Consequently,itisnosurprisethat

countrieswithhigheruseofdesignrankhigherintheGlobalCompetitivenessReportbythe

World Economic Forum.58 59 Many otherjurisdictions are now investing heavily in the

developmentandpromotionofIDwithaviewtobuilding thenextgenerationofglobal

technology

companies.

This

investment

is

also

driven

by

the

fear

of

losing

companies

and

tax

revenuesifdesignandR&Dbecomeoutsourcedinadditiontomanufacturing. Thewords

DesignedintheUSA,assembledinChinawhichareonthebackofeveryiPodmaynotbe

trueforlong.60

Economically successful countries with national design polices or programs include the

UnitedKingdom,Denmark,Finland,Sweden,Norway,Germany,NewZealand,Australia,

SouthKorea,Japan,Taiwan,ChinaandIndia.Theseareallcountrieswithstrongtechnology

relatedindustriesandgrowingeconomies.EvenmoreimportantlyfromtheBCperspective,

theyarealljurisdictionswithwhichwetradeandcompete. Therateofadoptionamongst

otherjurisdictionsisincreasingandBCshouldmovesoontopreventlowusageofIDfrom

becomingacompetitivedisadvantage.

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INDUSTRIALDESIGN

Industrial Design Potential for British Columbia

TraditionallyBCseconomyhasbeendrivenbytheresourcebasedindustrieswithlittleuseof

ID. Even the technology sector here does not have many companies with proprietarytechnologyorproductdevelopment.ThenetresultisthatIDinvestmentinBChasbeenquite

small. ThePTCbelievesthatthisisripeforchangeduetoanumberofstrengthsand,more

importantly,theneedtoaddresssomepressingchallenges.

Oneasset in thisareahasbeentheEmilyCarr InstituteofArtandDesign(ECIAD). Its

programsofferbothaBAandanMAinindustrialdesignandproduceabout30IDgraduates

peryear. Governmentistobecommendedforrecognisingtheimportanceofthisinstitution

throughitsrecentdesignationofEmilyCarrasaUniversity,tobecalledtheEmilyCarr

UniversityofArtandDesign(ECUAD).BCalsohostsaDesignResearchCanadanetworkat

SFU,which

links

design

researchers

to

industry.

The

BC

Industrial

Design

Association

(BCID)

can alsobe considered a strength. Although small, their commitment to the further

developmentoftheindustryandtheirknowledgeoflocalopportunitieswillbeimportantto

futuresuccess.

AnotherstrengthidentifiedinthePTC10threportistheimportantroleBCscreativeclass

playsinfosteringinnovationandcommercialisation.IDprofessionalsareanintegralpartof

thecreativeclass thathelps toattract talentandcontributes to thestrengthof theentire

economy.

BCspotentialinthisareaisdemonstratedinsomeoftheearlysuccessstoriesamongBC

companiesusingIDandworkingwiththeBCdesignservicesector.Thesecompaniesare

mainly in outdoor equipment, transportation, lighting, clean technology, advanced

manufacturing,andhightechnologysectors.IDhasalsoplayedaroleindevelopinguser

interfacesforthenewmediasector. STEMCELLTechnologiesworkingwithForm3Design

consultancyreducedthemanufacturingcostsoftheirequipmentby40%throughdesign.61

Xantrexexceededitssalesforecastfortheproductcategoryby30%intwoyears.62Angstrom,

withhelpfromTangramDesign,hasusedindustrialdesignnotonlyinthedevelopmentof

successful demonstration products but also as a strategic business tool.63 Greenlight

InnovationcooperatedwithUNIQUE:IDandreducedassemblytimeandmaterialcostsof

theirequipmentby25%to30%.64

TherearetwoparticularopportunitiesforindustrialdesigntoplayaroleinBCsindustries.

Thefirstoftheseisinthedevelopmentofcleantechnologiesandtheirassociatedproducts.

Design decisions made in product development affect the entire value chain and the

environmentalfootprinttheproductcreatesduringitslifecycle.Itisestimatedthat70%to

90%ofanygivenproductsfootprintcanbeaddressedatthedesignstage.65

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INDUSTRIALDESIGN

Figure3.Designdecisionsaffectallpartsofthevaluechain66

Rawmaterials

INFLUENCE OF DESIGN DECISIONS

Productmanufacturing

Distribution &sales

UseDisposal &recycling

Rawmaterials

INFLUENCE OF DESIGN DECISIONS

Productmanufacturing

Documents

PTC 11th Report