Waterloo Region, Canada: A Dynamic Knowledge Triangle David A. Wolfe Co-Director, Innovation Policy Lab Munk School of Global Affairs University of Toronto Presentation to the OECD Expert Panel Meeting, Paris, France, June 18, 2015

“I’m getting to know Waterloo [Region] very well, and it is clear to me that this place is special. It’s special for many reasons, including its collaborative culture, its research excellence, its philanthropic visionaries and its leadership in post- secondary education.” Stephen Hawking, Distinguished Research Chair at the Perimeter Institute of Theoretical Physics, Waterloo, Ontario, Canada

Waterloo Region: Economic Overview Mid-size region of 550,000 –100 km and 1 hour west of Toronto Highly diversified economy –Strength in ICT’s, advanced manufacturing and automotive –Significant financial services sector Strong research infrastructure –2 universities, plus one community college Strong civic capital and cohesive development coalition –Strategic use of federal and provincial resources Effective policy alignment across industry, academia, government and local associations

Diversified ICT Cluster

Strong Academic Infrastructure 150 Home to the Institute for Quantum Computing and the Perimeter Institute of Theoretical Physics Research institutes

A New Kind of University World’s largest Math and Computer Science school Engineering turns down >700 applicants/year with averages >90% “Ideas are you own” IP policy Pioneered world leading co-op program: 19,000 students, $225 million in salaries, 60 countries, 5,200 employers with 2,300 international work terms (2014)

Innovation in Waterloo Region Highly diversified industrial economy –Strength in ICT’s, advanced manufacturing & automotive, significant financial services sector Strong research infrastructure –Two universities, plus one community college –Disconnect between reputation for spin-offs and actual impact since 1990s –Coop students critical agents for knowledge transfer Big ‘D’, little ‘R’ –Research focused on incremental innovations or process innovation –Little inter-firm collaboration in innovation Strong civic capital & cohesive development coalition –Strategic use of federal and provincial resources Effective policy alignment

Track Record of Growing Big Tech enterprise wireless software digital display high performance digital imaging satellite communications EdTech & learning logistics technology network policy $15,384,688,000 8 of Canada’s largest tech companies started, grew and are headquartered in Waterloo Region 175 Disclosed combined revenues 2013 CountriesOperating in

Company Creation & Startup Growth Startups per year 500+ $99 MILLION Venture capital raised by Waterloo Region startups in 2013 Waterloo Region startups led the last 5 cohorts at Y Combinator RAISED have a 5-year survival rate 83%

Investment, exits & acquisitions Disclosed $414,996,000 $892,210,000 investments exits and acquisitions Disclosed

The transformation then (1997) in total revenues tech firms employed in invested venture capital, private equity and angel financing now! $100M 50 1,800 $7M 2013 total revenues tech firms active startups new tech jobs (since `97) total investment capital in 2013 >$22B >1, ,000 >$99 M

Tech multi-nationals that have set up shop in Waterloo Region

Collaborative Governance in Waterloo Strong evidence of cross-sectoral collaborative governance – that has intensified over time –Governance by ‘clouds’ rather than in silos –Collaboration and competition Selective reinforcement –Local entrepreneurs have supported series of civic associations –Central core of consistently engaged actors CTT Inc, Communitech, Chambers of Commerce, the Prosperity Council Growing attempt to link creative and cultural activities, i.e. Stratford, to ICT strengths –Major push into digital media and mobile apps

Waterloo Region Tech Accelerator Hub Joint initiative of Communitech, Centre for Digital Media and the Stratford Institute –Provides space for corporate & academic communities to converge –Combines Waterloo expertise in digital media and mobile technology & Stratford’s expertise in theatre arts –Includes Open Text, Christie Digital, RIM, AGFA Healthcare, COM DEV &Tech Capital Partners Platform innovation & networked governance Funded by federal & provincial research programs to leverage local assets

New Industries in Old Buildings Tech Accelerator Hub

Ranking against Regions and Cities at least double its size in population The World’s Top 20 Startup Ecosystems 1.Silicon Valley 2.Tel Aviv 3.Los Angeles 4.Seattle 5.New York City 6.Boston 7.London 8.Toronto 9.Vancouver 10.Chicago 11.Paris 12.Sydney 13.Sao Paulo 14.Moscow 15.Berlin 16.Waterloo Region 17.Singapore 18.Melbourne 19.Bangalore 20.Santiago Startup Ecosystem Report 2012

What others are saying about Waterloo Region “Waterloo is probably the best up-and-coming startup city in the world” “I would definitely take the long side of a population- adjusted prop bet that a $10B company emerges from Waterloo before NYC” — Sam Altman, President, Y Combinator