Think Canada! Why you should commercialize technology with Canadian partners.
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Transcript of Think Canada! Why you should commercialize technology with Canadian partners.
1
Think Canada.
Licensing Executives SocietyMinnesota Chapter Meeting
April 2010
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
Consulate General of Canada inMinneapolis
Representing Canada in the Upper Midwest United States
� Consular Services for Travelling Canadians
� Political and Economic Relations, Public Affairs
� Trade and Investment Partnerships
Canada – MinnesotaEconomic 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
Why Canadians do Business inMinnesota
� Next Door Neighbor
� Similar Cultures
� Access to Innovation-Intensive Industries andMarkets
� Medical Devices
� Agri-food Products
� Advanced Manufacturing and Materials
� Gateway to Larger US Market
Why do Business with Canada?
Think Canada……For Strong Business Fundamentals
8
Real GDP Growth and Projections (%)
0.8 0.70.3
0.70.5
-0.5
3.1 3.1
1.91.5
1.0
1.7 1.8
-0.6-1.0
0.0
1.0
2.0
3.0
4.0
Cana
da U.S.
U.K.
Fran
ce Italy
Germ
any
Japa
n
%
2010-11
2006-09
Canada has a Relatively Strong EconomyDespite 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 sothrough 2010-11.
Source: Consensus Forecasts, March 2010, Consensus Economics Inc.
9
Canada also has Superior EmploymentGrowth
� Strong economic growth and rising demand for Canadian commodities over the lastdecade, combined with provincial and federal policies to improve the flexibility andadaptability to the changing workplace, have helped generate healthy gains inemployment.
Employment Growth (%)1998-2008
0.6
1.0
1.0
1.2
1.4
2.0
-0.2
-1 0 1 2 3
Japan
Germany
U.K.
U.S.
Italy
France
Canada
Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.86, November 2009
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 developedeconomies in the current global economic downturn.
� In Budget 2010, Canada has chosen to run short deficits to stimulate its economywithout putting long-term prosperity at risk and is expected to return to balancedbudgets in the medium term.
� Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in theG7 by a wide margin with a return to a surplus predicted shortly following the 2014-15 fiscal year.
* Forecasts for both countriesSource Canada: The Federal Budget, Finance Canada, March 4, 2010Source United States: United States Congressional Budget Office, March 5, 2010.
Federal Government Budgetary Balance(% of GDP)
-0.4
-3.5 -3.1
-1.6-1.0 -0.5 -0.1
-10.9
-8.4
-5.5-4.6 -4.2 -4.3 -4.2
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2008
-09
2009
-10*
2010
-11*
2011
-12*
2012
-13*
2013
-14*
2014
-15*
Canada U.S.
11
� Canada was the only G7 country to post a surplus in 2008. Despite being inan overall deficit position during the 2009-2011 period, Canada will be in afar better position than most G7 member countries.
Source: OECD Economic Outlook, No.86, November 2009
Total Government Budget Balance 2008-11(% of GDP)
(National Accounts Basis)
0.1
-2.7
-5.3
0.0
-3.4
-6.5
-2.7
-4.8 -5.3
-12.8
-4.4
-8.3
-10.4
-8.3
-14.0
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
Cana
da Italy
U.K.
Germ
any
Fran
ce U.S.
Japa
n
2008
2009-11
Leading Most Other G-7 Countries
12
Canada has Sound Financial Institutions.
� With the world in the midst of the current financial crisis, investors can take comfortin 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 ofCanada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Bank of Montreal(31st) and CIBC (37th).**
Soundness of Banks* World Rank
10th9th
8th7th
6th5th
4th3rd
2nd1st
Canada
NewZeal
andAust
ralia
ChileHong KongSout
h Africa
Namibia
Singapo
rePana
ma
Brazil
Rank
*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
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’sCompetitive Alternatives 2008 report: aerospace, agri-food, chemicals, medicaldevices, pharmaceuticals, precision manufacturing, telecommunications,biotechnology, product testing, software design and Web and multimedia.
Source: KPMG Competitive Alternatives 2008
Percentage Cost Advantage (Disadvantage) Relative tothe United States
0.6 0.0
-3.6
-7.1-7.9
-14.3
-16.8-18
-16
-14
-12
-10
-8
-6
-4
-2
0
2
Cana
da U.S.
Fran
ce U.K.
Italy
Japa
n
Germ
any
15
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 taxsystem and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.
Overall Tax Advantage for Firms to Expand
International Comparison of Statutory General Corporate TaxRates in 2012
39.5 39.1
34.4
30.228.0 27.5
25.0
10
15
20
25
30
35
40
45
Japan U.S. France Germany U.K. Italy Canada
%� 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.
16
Relatively Few Steps in Establishinga Business…
� Regulations pertaining to the creation of new businesses are considerably more flexiblein Canada than those in the rest of the G7.
� Canada ranks first among the G7 and OECD countries for the lowest number ofprocedures required to establish a new business.
Number of Procedures*
1
56
89
5.7 66
0123456789
10
Canada France OECDAverage
U.S. Italy U.K. Japan Germany
Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founderwith external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or companyofficers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders electthe directors and secretary of the company is not considered a procedure, as there are no outside parties involved.
17
…and Relatively Less Time
� Canada ranks first among the G7 for the fewest number of days required forestablishing a new business.
Duration (days)
56 7
10
13 13
18
23
0
5
10
15
20
25
Canada U.S. France Italy U.K. OECDAverage
Germany Japan
Source: Doing Business in 2010- The World Bank Group, 2009
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 tomarket and conceive new types of organization and production and put them intopractice.
� New companies also serve to remind existing firms of the need to adapt and continueinnovating.
Source: Statistics Netherlands 2008
Number of Entrepreneurs as a Percentage of theWorking Population
15.9
11.5 11.2 11.1 11.110.1 9.7
8.6 8.56.9
0
5
10
15
20
CanadaNeth
erlands U.K.
Ireland
Belgium U.S.
Germany
Finland
Sweden
Denmark
Relative Generosity ofR&D Tax Incentives*(Index: Canada = 100.0)
76.1
77.0
80.6
84.0
85.9
100.0
123.9
50 60 70 80 90 100 110 120 130
Germany
Italy
U.S.
U.K.
Japan
Canada
France
19
Quality R&D Incentives
� Canada offers one of the mostfavorable tax treatments for R&Damong the G7.
� Canada provides a system oftax credits and accelerated taxdeductions for a wide-varietyof R&D expenditures.
� 30% refundable SR&ED taxcredit for small companies
� Eligible costs include: salaries,overhead, capital equipment,and materials.
� These tax-based incentives permitfirms to significantly reduce R&Dcosts through direct investment orsub-contracting in Canada.
Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009Note: 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
20
Canada has one of the World’sBest-Educated Workforces…
� The overall skill level of Canada’s workforce ranks high among competingcountries.
� Canada has the highest percentage of individuals achieving at least college oruniversity education, among OECD member countries.
Higher Education Achievement Among All Countries
56.755.0 54.0 53.0
51.2 50.0
44.042.0 42.0 42.0 41.0 41.0 40.5
30
35
40
45
50
55
60
Singapor
eCanada Jap
anSout
h Korea
Taiwan
Israel
NewZea
land
Belgium
Ireland
Norway
Denmark
France
HongKong
%
Source: IMD, World Competitiveness Yearbook 2009
21
Readily Available Qualified Engineers
� Canada leads the G7 in terms of the availability of qualified engineers in itslabour market.
Source: IMD, * Rank among 57 economies considered in the World Competitiveness Yearbook 2009.
Qualified Engineers Availability Index*
7.13 7.01
6.556.37
6.165.85
5.30
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Canada France Japan U.S. Germany Italy U.K.
Inde
x
22
� According to a recent annual quality-of-life ranking of 215 world cities, fourCanadian cities ranked among the top 25.
Source: Mercer Human Resources Consulting: April 2009
Overall Quality of Life Ranking (Top 25 Cities)(Index: New York City = 100.0 )
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
105.0
105.0
104.8
104.6
104.5
104.3
104.2
104.1
103.7
103.6
98
102
106
110
Vienna
Zurich
Geneva
Vancou
ver
Aucklan
dDus
seldo
rfMun
ichFra
nkfurt Bern
Sydney
Copen
hage
nWelli
ngton
Amsterda
mBrus
sels
Toron
toOtta
waBerl
inMelb
ourne
Luxem
bourg
Stockho
lmPert
hMon
treal
Nurembu
rgOsloDub
lin
Exceptional Quality of Life in Cities.
Think Canada…… for Applied Research and Development
Position of Canada in Scientific ResearchPublications, 1997-2004
“The State of Science & Technology in Canada”, Council of Canadian Academies, September 2006
Technology Clusters in Canada
New Models for Sharing ResearchInfrastructure, Building Research Capacity
National Institute forNanotechnology
� 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 hightech firms
New Models to Foster Innovation &Commercialization: The MaRS Centre
The MaRS Centre is a convergence facility located in the heartof Toronto’s Discovery District, Canada’s largest biomedicalresearch cluster.
� Phase I of the MaRS Centre (78K m2 in 3 buildings) is home to over 65organizations: leading researchers, technology transfer groups, SMEs,multinationals, service providers, venture capitalists and networkingorganizations.
� 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
The MaRS Centre101 College Street, Toronto
Phase I
Phase II
MaRS Discovery District
Source: MaRS Discovery District
Thank YouQuestions?
Michael Willmott
Consulate General of Canada, Minneapolis
612-492-2904
www.Minneapolis.gc.ca
www.InvestinCanada.com