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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:
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
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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
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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.
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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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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