Think Canada! Why you should commercialize technology with Canadian partners.
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Presentation to Minnesota Licensing Executives Society, April 2010.

Presentation to Minnesota Licensing Executives Society, April 2010.

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Think Canada! Why you should commercialize technology with Canadian partners. Presentation Transcript

  • 1. Think Canada. Licensing Executives Society Minnesota Chapter Meeting April 2010 1
  • 2. Overview Introduction to Consulate General of Canada Canada’s Economic Relationship with Minnesota Why do business with Canada? Strong Business Environment Entrepreneur friendly Superb Infrastructure for Knowledge Industries
  • 3. Consulate General of Canada in Minneapolis Representing Canada in the Upper Midwest United States Consular Services for Travelling Canadians Political and Economic Relations, Public Affairs Trade and Investment Partnerships
  • 4. Canada – Minnesota Economic Relationship In 2008: MN exports to Canada. . . . . . $5.8 billion MN imports from Canada. . . . $15.4 billion Bilateral trade. . . . . . . . . . $21.2 billion 141,250 Minnesota jobs are supported by Canada–U.S. trade
  • 5. Why Canadians do Business in Minnesota Next Door Neighbor Similar Cultures Access to Innovation-Intensive Industries and Markets Medical Devices Agri-food Products Advanced Manufacturing and Materials Gateway to Larger US Market
  • 6. Why do Business with Canada?
  • 7. Think Canada… …For Strong Business Fundamentals
  • 8. Canada has a Relatively Strong Economy Despite the Global Slowdown Consensus Economics According to Consensus Economics, Canada has been a top performer among the G7 in GDP growth over the 2006-09 period and is expected to remain so through 2010-11. Real GDP Growth and Projections (%) 4.0 3.1 3.1 2010-11 3.0 1.9 1.8 2.0 1.7 1.5 % 1.0 1.0 0.8 0.7 0.7 0.5 0.3 0.0 2006-09 -0.6 -0.5 -1.0 Italy n any ada ce U.S. U.K. Japa Fra n Germ Can Source: Consensus Forecasts, March 2010, Consensus Economics Inc. 8
  • 9. Canada also has Superior Employment Growth Strong economic growth and rising demand for Canadian commodities over the last decade, combined with provincial and federal policies to improve the flexibility and adaptability to the changing workplace, have helped generate healthy gains in employment. Employment Growth (%) 1998-2008 Canada 2.0 France 1.4 Italy 1.2 U.S. 1.0 U.K. 1.0 Germany 0.6 Japan -0.2 -1 0 1 2 3 Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.86, November 2009 9
  • 10. Sound Fiscal Advantage Canada has enjoyed eleven consecutive annual federal budget surpluses ending in 2007-08; it has undertaken one of the largest stimulus packages among developed economies in the current global economic downturn. In Budget 2010, Canada has chosen to run short deficits to stimulate its economy without putting long-term prosperity at risk and is expected to return to balanced budgets in the medium term. Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in the G7 by a wide margin with a return to a surplus predicted shortly following the 2014- 15 fiscal year. Federal Government Budgetary Balance 2009-10* (% of GDP) 2010-11* 2011-12* 2012-13* 2013-14* 2014-15* 2008-09 0.0 -0.4 -0.1 -0.5 -1.0 -2.0 -1.6 -4.0 -3.1 -3.5 -4.2 -4.3 -4.2 -4.6 -6.0 -5.5 -8.0 -8.4 -10.0 Canada U.S. -10.9 -12.0 * Forecasts for both countries Source Canada: The Federal Budget, Finance Canada, March 4, 2010 Source United States: United States Congressional Budget Office, March 5, 2010. 10
  • 11. Leading Most Other G-7 Countries Canada was the only G7 country to post a surplus in 2008. Despite being in an overall deficit position during the 2009-2011 period, Canada will be in a far better position than most G7 member countries. Total Government Budget Balance 2008-11 (% of GDP) (National Accounts Basis) 2.0 0.1 0.0 0.0 a any nce an . . y U.K U. S nad Ital -2.0 Jap rm Fra Ca Ge -2.7 -2.7 -4.0 -3.4 -4.4 -4.8 -6.0 -5.3 -5.3 -6.5 -8.0 2008 -8.3 -8.3 -10.0 -10.4 -12.0 -12.8 -14.0 2009-11 Source: OECD Economic Outlook, No.86, November 2009 11
  • 12. Canada has Sound Financial Institutions. With the world in the midst of the current financial crisis, investors can take comfort in the fact that Canada has the soundest banking system in the G7. Five of the 50 safest banks are in Canada, according to a recent study: Royal Bank of Canada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Bank of Montreal (31st) and CIBC (37th).** Soundness of Banks* World Rank 1st 2nd 3rd 4th 5th Rank 6th 7th 8th 9th 10th ile il bia nd a a da e ma ng az ali ri c or Ch ala na Ko mi na Br ap str Af Ca Na Ze Pa ng Au ng uth Si Ho w So Ne *Standing among 133 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2009-2010 ** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , October 2009 12
  • 13. Think Canada… …as Friendly to Entrepreneurs
  • 14. Canada also has Low Business Costs. For the seventh consecutive time, KPMG’s Competitive Alternatives study finds Canada leads the G7 with the lowest business costs. Canada is the lowest-cost G7 country in 11 of the 17 industries analyzed by KPMG’s Competitive Alternatives 2008 report: aerospace, agri-food, chemicals, medical devices, pharmaceuticals, precision manufacturing, telecommunications, biotechnology, product testing, software design and Web and multimedia. Percentage Cost Advantage (Disadvantage) Relative to the United States 2 0.6 0.0 0 a any nce an . . y U.K U.S -2 nad Ital Jap rm Fra Ca -4 Ge -3.6 -6 -8 -7.1 -7.9 -10 -12 -14 -14.3 -16 -18 -16.8 Source: KPMG Competitive Alternatives 2008 14
  • 15. Overall Tax Advantage for Firms to Expand As a result of corporate income tax reductions introduced by the Government since 2006, Canada will have the lowest statutory corporate tax rate in the G7 by 2012. Canada is on track to having the lowest overall tax rate on new business investment (marginal effective tax rate (METR*)) in the G7 in 2010. International Comparison of Statutory General Corporate Tax Rates in 2012 45 39.5 39.1 40 34.4 35 30.2 30 28.0 27.5 % 25.0 25 20 15 10 Japan U.S. France Germany U.K. Italy Canada Source: The Federal Budget, Finance Canada, March 4, 2010 and the OECD Tax Database. * METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs. 15
  • 16. Relatively Few Steps in Establishing a Business… Regulations pertaining to the creation of new businesses are considerably more flexible in Canada than those in the rest of the G7. Canada ranks first among the G7 and OECD countries for the lowest number of procedures required to establish a new business. Number of Procedures* 10 9 9 8 8 7 5.7 6 6 6 6 5 5 4 3 2 1 1 0 Canada France OECD U.S. Italy U.K. Japan Germany Average Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founder with external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or company officers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders elect the directors and secretary of the company is not considered a procedure, as there are no outside parties involved. 16
  • 17. …and Relatively Less Time Canada ranks first among the G7 for the fewest number of days required for establishing a new business. Duration (days) 25 23 20 18 15 13 13 10 10 7 6 5 5 0 Canada U.S. France Italy U.K. OECD Germany Japan Average Source: Doing Business in 2010- The World Bank Group, 2009 17
  • 18. Highest Concentration of Entrepreneurs From a global standpoint, Canada has the highest concentration of entrepreneurs within its working population. Businesses, including start-ups, develop new products and services and get them to market and conceive new types of organization and production and put them into practice. New companies also serve to remind existing firms of the need to adapt and continue innovating. Number of Entrepreneurs as a Percentage of the Working Population 20 15.9 15 11.5 11.2 11.1 11.1 10.1 9.7 10 8.6 8.5 6.9 5 0 s d k d y en da um K. S. nd an ar lan lan U. U. na ed nm lgi rla rm Ir e Fin Sw Ca Be the Ge De Ne Source: Statistics Netherlands 2008 18
  • 19. Quality R&D Incentives Relative Generosity of Canada offers one of the most R&D Tax Incentives* favorable tax treatments for R&D (Index: Canada = 100.0) among the G7. Canada provides a system of tax credits and accelerated tax France 123.9 deductions for a wide-variety of R&D expenditures. Canada 100.0 30% refundable SR&ED tax credit for small companies Japan 85.9 Eligible costs include: salaries, overhead, capital equipment, and materials. U.K. 84.0 These tax-based incentives permit firms to significantly reduce R&D U.S. 80.6 costs through direct investment or sub-contracting in Canada. Italy 77.0 Germany 76.1 50 60 70 80 90 100 110 120 130 Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009 Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate. Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system. * Calculations based on large firms 19
  • 20. Canada has one of the World’s Best-Educated Workforces… The overall skill level of Canada’s workforce ranks high among competing countries. Canada has the highest percentage of individuals achieving at least college or university education, among OECD member countries. Higher Education Achievement Among All Countries 60 56.7 55.0 54.0 55 53.0 51.2 50.0 50 44.0 45 % 42.0 42.0 42.0 41.0 41.0 40.5 40 35 30 k e ng a nd ce De y um da uth n d an l Ne srae ar a re or pa lan rw a la an Ko na iw nm ap lgi Ko Ja Ire Ta No Fr I Ca Be Ze ng ng Si Ho w So Source: IMD, World Competitiveness Yearbook 2009 20
  • 21. Readily Available Qualified Engineers Canada leads the G7 in terms of the availability of qualified engineers in its labour market. Qualified Engineers Availability Index* 8.0 7.5 7.13 7.01 7.0 6.55 6.5 6.37 6.16 Index 6.0 5.85 5.5 5.30 5.0 4.5 4.0 Canada France Japan U.S. Germany Italy U.K. Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009. 21
  • 22. Exceptional Quality of Life in Cities. According to a recent annual quality-of-life ranking of 215 world cities, four Canadian cities ranked among the top 25. Overall Quality of Life Ranking (Top 25 Cities) (Index: New York City = 100.0 ) 110 108.6 108.0 107.9 107.4 107.4 107.2 107.0 106.8 106.5 106.3 106.2 105.9 105.7 105.4 105.3 106 105.0 105.0 104.8 104.6 104.5 104.3 104.2 104.1 103.7 103.6 102 98 r f t g l g na ich eva ve nd dor ich fur rn ey en on am els to wa erlin urne our holm rth ea ur lo lin ien Zur en cou ckla sel un ank Be ydn hag lingt terd uss oron tta B lbo mb k Pe ontr emb Os Dub V G an Au Dus M Fr S en el ms Br T O e oc M ur V op W A e M Lux St N C Source: Mercer Human Resources Consulting: April 2009 22
  • 23. Think Canada… … for Applied Research and Development
  • 24. Position of Canada in Scientific Research Publications, 1997-2004 “The State of Science & Technology in Canada”, Council of Canadian Academies, September 2006
  • 25. Technology Clusters in Canada
  • 26. New Models for Sharing Research Infrastructure, Building Research Capacity National Institute for Nanotechnology Example of federal lab co-located on university Campus $120M joint venture between NRC, Government of Alberta & University of Alberta. Opened June 2006 Shared facilities, staff jointly or cross appointed between NRC and the university Multi-disciplinary institute: physics, chemistry, engineering, biology, informatics, pharmacy and medicine Incubation facilities for start-ups will act as a catalyst for a nanotech cluster in Edmonton, accelerate commercialization of new technologies and the growth of high tech firms
  • 27. New Models to Foster Innovation & Commercialization: The MaRS Centre The MaRS Centre is a convergence facility located in the heart of Toronto’s Discovery District, Canada’s largest biomedical research cluster. Phase I of the MaRS Centre (78K m2 in 3 buildings) is home to over 65 organizations: leading researchers, technology transfer groups, SMEs, multinationals, service providers, venture capitalists and networking organizations. Private sector tenants outnumber public sector tenants 3:1. The MaRS Incubator (4K m2) houses 27 promising emerging life sciences, engineering and information technology companies. The MaRS Collaboration Centre is a conference venue. The MaRS Venture Group provides hands-on support to companies. Phase II space will be doubled
  • 28. MaRS Discovery District Phase I Phase II The MaRS Centre 101 College Street, Toronto Source: MaRS Discovery District
  • 29. Thank You Questions? Michael Willmott Consulate General of Canada, Minneapolis Michael.Willmott@international.gc.ca 612-492-2904 www.Minneapolis.gc.ca www.InvestinCanada.com