Laurie Prange-Martin 1 The Emergence of New Sectors in Remote Regions: Borders, Help or Hindrance? Borders in the North Summer Institute borders-north-summer-institute 22 June 2016 Laurie Prange-Martin

Laurie Prange-Martin 2 Presentation Outline Introduction New sector emergence – my PhD dissertation Case study on Yukon ICT sector Migration and entrepreneurship Migration and borders So, what borders and entrepreneurship? What part do borders play in new sector emergence

Laurie Prange-Martin 3 What is new sector emergence? The pre-legitimization phase of the establishment of a new sector. – Wholly new sector – Old sector in new region We know surprisingly little about how to economically diversify regions.

Laurie Prange-Martin 4 So, why 2 Literature reviews Systematic literature reviews 1.New sector emergence 1.35 different conceptual sources 2.18 different theories 3.4 different methodologies 2.Defining remote regions 1.Alternative to the concepts of urban/rural 2.Uniqueness of northern areas 3.Reflect the problem with applying traditional theories in entrepreneurship and economics

Laurie Prange-Martin 5 Case Study: Yukon ICT Sector Some years, larger contributor to the Yukon GDP than Tourism Contemporary example of a new sector emerging Like other new sectors in remote regions, defies what has been typically identified as the ideal conditions to start and grow a new sector – E.g. There are no incubators, so is the region defined by political borders itself an incubator? Laypeople have identified the role that borders play in growing the Yukon ICT sector – And laypeople are communicating loudly that this issue must be improved!

Laurie Prange-Martin 6 Yukon ICT Sector Border Flows Source: northwestel http:// northwestel

Laurie Prange-Martin 7 Challenge with traditional Entrepreneurship Theory Schumpeter’s argument reflects the time – Focus on innovation disruption – Therefore, public policy only had to focus on regulation and intervention But, the research produced following these assumptions are from a time where public policy adequately funded… – Research – Education – Infrastructure And before the rise of international investment regimes (IIR), which I’ll explain later

Laurie Prange-Martin 8 Migration and Entrepreneurship Systematic literature review of empirical studies of new sectors revealed several key conditions that contribute to the how and why of new sector emergence – One major theme were economic migrants Already have sizable volume of research showing migrants (including refugees!) are on average more entrepreneurial than born-local citizens.

Laurie Prange-Martin 9 Migration and Borders Historically, physical boundaries, like mountains, oceans, etc. controlled migration More modern politically-based borders control the flow of migration But, the theories from border and migration studies don’t fit business or economics

Laurie Prange-Martin 10 So, what about borders and entrepreneurship? Entrepreneurship requires… 1.Qualified professionals – Hard to bring in economic migrants when professional certifications don’t easily travel 2.Access to customers – Hard to delivery goods and services when crossing borders means new rules to follow

Laurie Prange-Martin 11 Entrepreneurship in the age of IIR Where borders don’t apply to one part of the entrepreneurship environment International Investment Regime (IIR) – So-called trade deals designed to protect and benefit investors (with countries we are already successfully trading with!) – Growing criticism that IIR can only stifle and stop innovation required for entrepreneurship – Canada is the most sued country in the world in secret, for-profit arbitrations, and we lose nearly every time!

Laurie Prange-Martin 12 IIR the context of self-governing First Nations in Yukon According to Dr. Gus Van Harten, IIR are particularly bad for Indigenous peoples – FIPA trumps all Canadian law for 31 years in favour of Chinese firms and the Chinese government – Including the rights of self-governing First Nations in Yukon entrenched in agreements. – Treaties with First Nations are essentially null and void under FIPA when dealing with China – Source: nations-rights-at-risk-with-new-china-trade-dealhttp://yukon-news.com/news/first- nations-rights-at-risk-with-new-china-trade-deal

Laurie Prange-Martin 13 In summary… Borders define regions Borders limit entrepreneurial activities Borders may have historically benefited entrepreneurial activities – Which is changing in the age of IIR More work needs to be done to answer the question if borders help or hinder new sector emergence and entrepreneurship.

Laurie Prange-Martin 14 The End Thank you for your time! I welcome all feedback to translate this presentation into a journal article. Laurie Prange-Martin