Day 4 Evening - Ricard


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Day 4 Evening - Ricard

  1. 1. Lead to Win “Technology start-ups: Advantage Gatineau ” June 23, 2009 Jean Ricard Economic development advisor DÉ-CLD Gatineau
  2. 2. Agenda – ADVANTAGE GATINEAU <ul><li>DÉ-CLD of Gatineau </li></ul><ul><li>Establishing a business in Gatineau, QC </li></ul><ul><li>Financial benefits </li></ul><ul><li>The BOTTOM line </li></ul>Slide
  3. 3. DÉ-CLD of Gatineau <ul><li>Mission </li></ul><ul><li>Support entrepreneurs and organizations </li></ul><ul><li>Stimulate Gatineau’s economic development </li></ul><ul><li>Strategic niches </li></ul><ul><li>Integration of business, technologies and processes </li></ul><ul><li>Language Technologies – Internationally renowned </li></ul><ul><li>2008 success story </li></ul><ul><li>Leveraged $35M in investment for Gatineau companies </li></ul><ul><li>Invested close to $1M </li></ul><ul><li>94 start-ups, 372 new jobs </li></ul>Slide
  4. 4. <ul><li>Over 60 information technology companies </li></ul><ul><li>StAYTech : Solutions in IT Service Management </li></ul><ul><li>Cactus commerce: Development of e-commerce solutions </li></ul><ul><li>BlueBear LES: image detection software </li></ul><ul><li>DIUM, Frontline Robotics, Multicorpora, Cogniva, Mtek Vision, Searidge, Mapleworks, etc. </li></ul><ul><li>A language technologies hub </li></ul><ul><li>Language Technology Research Centre at UQO (LTRC) </li></ul><ul><li>Over 60 language technology experts including speech recognition and knowledge management </li></ul><ul><li>Close to 20 projects involving 20 external partners </li></ul>The city of Gatineau - Skills and Knowledge hub
  5. 5. Financial benefits Local incentives <ul><li>City of Gatineau </li></ul><ul><li>Municipal tax breaks – 5 years (100% 1 st 3yrs) </li></ul><ul><li>Incubation fund (up to $15K) </li></ul><ul><li>Écho Capital Fund </li></ul><ul><li>$15M regional fund for start-up & growth </li></ul><ul><li>Up to $1M in loan or equity </li></ul><ul><li>FSO (Outaouais) </li></ul><ul><li>$3M local government fund </li></ul><ul><li>Loan or equity up to $250,000 </li></ul>Slide
  6. 6. <ul><li>Businesses can cut R&D costs by half or more </li></ul><ul><li>Considerable benefits to conducting R&D in Quebec </li></ul><ul><li>Net advantage: Eligibility of indirect costs </li></ul>SOURCE: Invest in Canada Bureau, 2007 1. In calculating the combined credit, the federal tax credit is reduced by the provincial tax credit receivable. Financial benefits Québec SR&ED tax credits 60.94% Yes 35% Yes 37.5% Quebec 41.50% Yes 35% Yes 10% Ontario Refund Rate Refund Rate Combined Credit 1 Federal Credit Provincial Credit Small Canadian-controlled Private Corporations
  7. 7. <ul><li>M.D.E.I.E. </li></ul><ul><li>Multiple programs for commercialization and export </li></ul><ul><li>PSVT: project-based loans and/or subsidies </li></ul><ul><li>PSPE: subsidy for up to 40% of commercialization costs for eligible products </li></ul><ul><li>Investment Quebec </li></ul><ul><li>CDAE: Reimbursable payroll tax credit of up to $ 20,000 </li></ul><ul><li>Guaranteed bank loans for R&D investment claims </li></ul>Slide Financial benefits Other Québec programs
  8. 8. Financial benefits F ederal incentives for QC companies <ul><li>CED-Q for the Quebec regions </li></ul><ul><li>Assistance to Quebec manufacturing SMEs </li></ul><ul><li>Repayable and non-repayable contributions </li></ul><ul><li>Grants (on occasion) </li></ul><ul><li>Industrial Regional Benefits (IRBs) </li></ul><ul><li>Bid advantage on large Defence contracts with a presence in Gatineau (Quebec) </li></ul><ul><li>Multitude of other programs (NSERC, IRAP, etc.) </li></ul>Slide
  9. 9. The BOTTOM line – it’s your $ <ul><li>Exemples $1.2M $500K </li></ul>Slide <ul><li>Assumptions : </li></ul><ul><li>Total R&D salaries $ 600,000 $ 300,000 </li></ul><ul><li>Total R&D contracts 200,000 100,000 </li></ul><ul><li>Total capital R&D expenses 200,000 50,000 </li></ul><ul><li>Total materials consumed/transformed 200,000 50,000 </li></ul><ul><li>Total IT salaries (E-business) 200,000 100,000 </li></ul><ul><li>Resulting R&D and IT tax credits </li></ul><ul><li>Quebec based $ 355,500 $ 291,531 </li></ul><ul><li>Ontario based $ 278,000 251,750 </li></ul><ul><li>Advantage Gatineau $ 77,500 $ 39,781 </li></ul><ul><li> 28% 16% </li></ul>
  10. 10. Establishing a business in Gatineau <ul><li>So why not Gatineau? </li></ul><ul><li>Is 5 minutes from downtown Ottawa </li></ul><ul><li>Has both OC Transpo and STO routes </li></ul><ul><ul><li>These routes also go to downtown Ottawa </li></ul></ul><ul><ul><li>Connections to Orleans, Kanata, South, Aylmer etc. </li></ul></ul><ul><li>Against major traffic flow across bridges </li></ul><ul><li>Has all the amenities of downtown Ottawa </li></ul><ul><ul><li>Junk / fast food, good restaurants, banking, parking, etc. </li></ul></ul><ul><li>Costs are lower </li></ul><ul><ul><li>Rent is 25% lower than downtown Ottawa </li></ul></ul><ul><ul><li>Hydro is less expensive </li></ul></ul>Slide
  11. 11. Establishing a business in Gatineau Slide Yes, Ontario residents get it all back at the end of the year I’ll need to pay Quebec income taxes -Most companies incorporate Federally -Need a Gatineau business permit -Need to register “online” to Qc Business Registry I need to incorporate in Quebec -Bill 101 requires some French (signage) -Larger companies require French web sites I’ll have to translate everything to French -Highest bilingualism rate in Canada -Most speak the language of business I have to speak French REALITY MYTH
  12. 12. Do your homework <ul><li>It’s YOUR bottom Line </li></ul><ul><ul><li>It’s not just the product / service </li></ul></ul><ul><li>Prepare a business plan </li></ul><ul><ul><li>Include a market analysis and sales plan </li></ul></ul><ul><ul><li>You’ll need it </li></ul></ul><ul><li>Maintain/expand your business network </li></ul><ul><ul><li>Including government agencies </li></ul></ul><ul><li>Ask for advice / guidance </li></ul><ul><ul><li>Consider governments as partners – they can help </li></ul></ul><ul><ul><li>LTW, OCRI, Chamber of commerce, DE-CLD, etc. </li></ul></ul>Slide
  13. 13. Questions? Slide How to reach us at DÉ-CLD of Gatineau Yannick Bouchard: [email_address] Jean Ricard: [email_address] Visit us at GTEC 2009, Oct 5-8 Showcase city Westin Hotel, booth #____