Securing Tomorrow’s Prosperity University of Calgary – Faculty of Engineering Planning Workshop May 10, 2005 Rick Sloan Assistant Deputy Minister Industry and Regional Development Division Alberta Economic Development Securing Tomorrow’s Prosperity University of Calgary – Faculty of Engineering Planning Workshop May 10, 2005 Rick Sloan Assistant Deputy Minister Industry and Regional Development Division Alberta Economic Development

Securing Tomorrow’s Prosperity Outlines a strategy for keeping Alberta’s economic base strong, competitive, sustainable and driven by knowledge and innovation. It is the economic pillar of government's strategic plan for the next 20 years." Outlines a strategy for keeping Alberta’s economic base strong, competitive, sustainable and driven by knowledge and innovation. It is the economic pillar of government's strategic plan for the next 20 years."

Changing Economic Conditions World trade is moving from commodities to value added manufacturing and services. Alberta’s energy development is shifting from conventional to non-conventional resources. Global economics are shifting from industrial models to knowledge-based models World trade is moving from commodities to value added manufacturing and services. Alberta’s energy development is shifting from conventional to non-conventional resources. Global economics are shifting from industrial models to knowledge-based models

Time to Act is Now Global competition is intensifying. Other jurisdictions are not standing still. Alberta’s economy is strong Debt free Long-term economic strategy. Global competition is intensifying. Other jurisdictions are not standing still. Alberta’s economy is strong Debt free Long-term economic strategy.

Economy Has Performed Well Although Alberta’s economy has performed relatively well … Better than Average Below Average Jurisdiction Average =100

Goal: A Value-Added Economy Progressively adding more value through resource upgrading, reprocessing, manufacturing or adding knowledge to adopt and commercialize new products, services and technologies.

STP 4 Strategic Directions 1.Enhance current competitive advantages 2.Improve and strengthen innovation 3.Grow and strengthen Alberta small and medium-sized companies (SMEs) 4.Focus on priority sectors 1.Enhance current competitive advantages 2.Improve and strengthen innovation 3.Grow and strengthen Alberta small and medium-sized companies (SMEs) 4.Focus on priority sectors

Enhance Competitive Advantages Knowledge Ready Workforce Improve ability to educate, develop, attract and retain high knowledge workers and researchers Focus education/labour training on value- added needs Support recommendations in the Prepared for Growth Strategy. Knowledge Ready Workforce Improve ability to educate, develop, attract and retain high knowledge workers and researchers Focus education/labour training on value- added needs Support recommendations in the Prepared for Growth Strategy.

Enhance Competitive Advantages Competitive Business Climate Align tax strategies to support value added Minimize red-tape Attract investment Improve access to equity capital Competitive Business Climate Align tax strategies to support value added Minimize red-tape Attract investment Improve access to equity capital

Enhance Competitive Advantages Investment in Infrastructure Ensure that institutional facilities support objectives of strategy. Integrate transportation system Improve connectivity by supporting SuperNet Investment in Infrastructure Ensure that institutional facilities support objectives of strategy. Integrate transportation system Improve connectivity by supporting SuperNet

Strategy 1: Initiatives Enhance Current Competitive Advantages Central Alberta Economic Partnership Labour Force Strategy Industry/Gov’t Hydrocarbon Upgrading Taskforce ACR Technology Roadmap AB Budget (April 2005) $9.2 billion in Capital Projects ($2.7 billion for health, schools and post secondary facilities) Enhance Current Competitive Advantages Central Alberta Economic Partnership Labour Force Strategy Industry/Gov’t Hydrocarbon Upgrading Taskforce ACR Technology Roadmap AB Budget (April 2005) $9.2 billion in Capital Projects ($2.7 billion for health, schools and post secondary facilities)

Improve/Strengthen Innovation Develop a province-wide culture of innovation Increase the rate and amount of technology adoption, diffusion, and technology commercialization Focus and coordinate Alberta’s research investments Increase business investment in R&D Develop a province-wide culture of innovation Increase the rate and amount of technology adoption, diffusion, and technology commercialization Focus and coordinate Alberta’s research investments Increase business investment in R&D

Profit Reinvestment Discovery Research Applied Research Technology Adoption & Commercialization New & Improved Products/Processes/ Services Marketing Products, Processes/Services Business Innovation Model

Strategy 2: Initiatives Improve/Strengthen Innovation Innovative Energy Technologies Program EnergyINet IBM Centre for Advanced Studies Carbon Dioxide Management Innovation Program Improve/Strengthen Innovation Innovative Energy Technologies Program EnergyINet IBM Centre for Advanced Studies Carbon Dioxide Management Innovation Program

Grow & Strengthen SMEs Management capacity Mentoring Networks and supply chains Market and export intelligence and development Management capacity Mentoring Networks and supply chains Market and export intelligence and development

Strategy 3: Initiatives Grow & Strengthen SMEs Canadian Manufacturers and Exporters (CME) Lean Consortia Agrivalue Processing Business Incubator NAIT/SAIT Microsoft Business Solutions Centre Bio-Technology Business Development Centre (proposed) Grow & Strengthen SMEs Canadian Manufacturers and Exporters (CME) Lean Consortia Agrivalue Processing Business Incubator NAIT/SAIT Microsoft Business Solutions Centre Bio-Technology Business Development Centre (proposed)

Focus on Priority Sectors Energy Technologies and Services Value-added Energy Products Agri-food Building/Wood products Tourism Information and Communication Technology Health and Bio industries Environmental Technologies and Services Energy Technologies and Services Value-added Energy Products Agri-food Building/Wood products Tourism Information and Communication Technology Health and Bio industries Environmental Technologies and Services

Focus on Priority Sectors Future years’ Revenue (Sales $110 billion) 2002 Revenue (Sales $60 Billion)

Value of Alberta Manufacturing Shipments Food & Beverage Chemical & Chemical Products Refined Petroleum & Coal Products Computer & Electronic Products Fabricated Metal Products Machinery

AEC Sector Strategy Vision Develop, diversify and organize the sector to successfully compete globally, create wealth and sustain their key position in the Alberta economy… Strategies –Raise Sector Profile –Encourage Better Practices –Address Skilled Labour Shortages –Facilitate Alliances, Supply Chain Development & Business Vision Develop, diversify and organize the sector to successfully compete globally, create wealth and sustain their key position in the Alberta economy… Strategies –Raise Sector Profile –Encourage Better Practices –Address Skilled Labour Shortages –Facilitate Alliances, Supply Chain Development & Business

AEC Sector Team Initiatives COAA’s Alberta Construction Workforce Supply Demand Forecast Provincial Nominee Program (PNP) Alberta Economic Development Authority’s Report Mega Project Excellence: Preparing for Alberta’s Legacy COAA’s Alberta Construction Workforce Supply Demand Forecast Provincial Nominee Program (PNP) Alberta Economic Development Authority’s Report Mega Project Excellence: Preparing for Alberta’s Legacy

Post-Secondary Support for STP Hewlett Packard Grid Research Centre, U of C 15,000 new post secondary spaces to be added in next 3 years $250 million added to endowment funds for medical, and science and engineering research Hewlett Packard Grid Research Centre, U of C 15,000 new post secondary spaces to be added in next 3 years $250 million added to endowment funds for medical, and science and engineering research

Lean Manufacturing Program Competitive Assessment, Improvement Recommendation & Implementation Assistance Workshops, Training Sessions and Lean Conference Increased productivity & profitability Program Expansion Competitive Assessment, Improvement Recommendation & Implementation Assistance Workshops, Training Sessions and Lean Conference Increased productivity & profitability Program Expansion

Securing Tomorrow’s Prosperity Questions