1. 7 th Annual ISRN National Conference Gerry Cooper Director, innovation Industry Canada May 5, 2005 Session II: Ontario ICT Clusters

2. Cluster Building Elements Networking Benchmarking Branding Action Plan Multi S/H Projects Cluster Assets Cluster Infra Skills Training Culture Success Stories Town Halls Cluster Promotion Best Practices Lessons Learned Mid Course Changes Staging/Renewal Cluster Development Process Assessment Planning Implementation Communications Innovation Commercialization

3. City-Region Innovation Networks Cooperation Partnerships Cluster Players Governments Local Regional Provincial Federal Innovation Champions Local Leaders Angels Mentors Universities & Colleges Engineering Sciences Bizness Schools Med Schools Trades Schools Private Sector Anchor Firms SMEs Biz Assoc’ns Intermediaries Local Media

4. City-Region Innovation Networks Partnerships Federal Support Team Federal Support Team Alignment Collaboration GoC Labs NRC Labs CRC CanMet CANARIE WWTC OGDAs CRA-SRED HRSD Health Canada Environ’t Cda NRCan AAFC Portfolio NRC IRAP BDC VC EDC SSERC SSHRC CIHR CFI NCE PreCarn/CMC Industry Cda TPC RCI CSBFA SITT & IS

5. Federal Government Support The Innovation-Commercialization Continuum CFI SSERC CIHR Genome Cda Federal Labs NRC-IRAP SSERC-I2I CIHR-PoP NCEs NRC-IRAP CRA-SRED 3Council- IPM IC-RCI BDC CSBFA HRSD ITCan/Posts Export Dev Co Tax Incentives TPC BDC VC H2EAP SDTC Discovery Proof-of-Concept, Pre-clinical Studies Prototype/ Preprod’n, Alpha-Beta Tests Phase 1-3 Clinicals Sales, Profits & Benefits Basic Research Applied Research Technology Develop’t & Demonstrat’n Marketing/Sales/ Production

6. Federal Government Support Selected Websites CFI: www.innovation.ca/www.innovation.ca/ SSERC: http://www.nserc.ca/http://www.nserc.ca/ CIHR: http://www.cihr-irsc.gc.ca/http://www.cihr-irsc.gc.ca/ Genome Cda: http://www.genomecanada.ca/GCprogrammesRecherche/http://www.genomecanada.ca/GCprogrammesRecherche/ Fed Labs: http://www.fptt-pftt.gc.ca/main_e.shtmlhttp://www.fptt-pftt.gc.ca/main_e.shtml NRC-IRAP: http://www.nrc-cnrc.gc.ca/business_e.htmlhttp://www.nrc-cnrc.gc.ca/business_e.html CRA-SRED: http://www.cra-arc.gc.ca/taxcredit/sred/menu-e.htmlhttp://www.cra-arc.gc.ca/taxcredit/sred/menu-e.html

7. Federal Government Support Selected Websites Continued TriCouncil IPMP: http://www.nserc.ca/professors_e.asp?nav=profnav&lbi=b6 http://www.nserc.ca/professors_e.asp?nav=profnav&lbi=b6 Network of Centres of Excellence: http://www.nce.gc.cahttp://www.nce.gc.ca TPC: http://www.tpc.ic.gc.cahttp://www.tpc.ic.gc.ca BDC VC: http://www.bdc.ca/en/business_solutions/venture_capital/ http://www.bdc.ca/en/business_solutions/venture_capital/ SDTC: http://www.sdtc.ca/http://www.sdtc.ca/ ITCan: http://www.itcan-cican.gc.ca/http://www.itcan-cican.gc.ca/ EDC: http://www.edc.ca/index_e.htmhttp://www.edc.ca/index_e.htm HRSD: http://www.hrsdc.gc.ca/http://www.hrsdc.gc.ca/

8. TPC’s Ontario ICT Portfolio ($ Millions) Anchor Firms: RIM, March Networks, IBM Canada

9. GTA’s ICT Cluster Largest in Canada & 3 rd largest in NorAm: –Over 180,000 employed directly or indirectly –$32.5 billion sales p.a. & $6.2 billion exports –Over 3,300 firms in 3 main nodes –Proximity to demanding beta testers & early adopters in GTA –Alliances with ICT-related research & education institutions –Good availability of & access to risk capital Offers a lot of talent, technology, market pull Source: E&B Data, 2004

10. GTA’s ICT Cluster Cont’d Education & Research: 44 ICT-related degree programs at UoT, York, Ryerson, UOIT 22 @ Bachelors level, 16 @ Masters, 4 @ PhDs 38 ICT-related technologist programs at 7 colleges 81 ICT-related research institutes & labs at UoT, York, Ryerson: 50 at UoT, 21 at Ryerson, 10 at York U Source: E&B Data, 2004

11. GTA’s ICT Cluster Cont’d

12. Risk Capital: Regional Distribution of Canadian VC Activity, GDP and KBI (Average % 2001) Source: Macdonald & Associates Limited, 2003, Statistics Canada, Industry Canada.

13. Distribution of VC Investment by Sector 1996-2002 (Avg. share %) Source: Macdonald & Associates Limited, 2003

14. GTA’s ICT Cluster Cont’d Has critical mass & dynamics to stay in top tier in NorAm GTA has 35% of Canada’s ICT firms; Ontario has 50% –Leadership via Innovation Networks improving e.g., TRRA, MaRS Coordination, collaboration of science, business, social & $ capital Branding, recognition, Champions –Trend to technologies convergence being recognized Above industry average sales & investments growth forecasted 2 nd lowest total operating costs n/w/s exchange rate Cost advantage: 18% - 43% re US centres; average is 23% GTA has hi growth end user markets i.e., health care, financial sector, education & training, digital media Renewal of 50 cultural, recreational facilities via $1 billion public- private funds

15. Questions & Comments