The Way I See It… by Michael C. Volker
B.C. Could
be a Global Top Ten Technology Center
Shortly after
getting into office just a year ago, British Columbia’s Premier announced the
formation of the Premier’s Technology Council. Gordon Campbell saw fit to put
the technology industry high on his agenda as an economic thrust for the
province. He personally chairs the Council consisting of seventeen high tech
leaders, most of which are technology company CEOs.
Gerri Sinclair
is the Council’s full-time president. An accomplished entrepreneur herself, she
sold her Simon Fraser University spin-off company, Ncompass Labs, to Microsoft
Corporation just a year ago.
In April, the
council released its second report listing forty-five recommendations for
improving broadband infrastructure, increasing public access to the Internet,
developing the high tech industry and marketing British Columbia as a
technology centre.
The report’s cover proclaims, "We believe that with strong
cooperation between the provincial government and private enterprise, British
Columbia will be one of the world's top ten technology centers by 2006."
That’s a bold statement, but it’s this kind of vision that’s needed to
build a vibrant industry. Yet, I couldn’t help but notice a missing element.
In the same
month, the Federal Government announced a whopping $32.3 million in support for
six B.C. companies through the Technology Partnerships Canada program. These six range from early stage ventures such
as Azure Dynamics Corporation and fSONA Communications Corporation to one of
B.C.’s early pioneers, MacDonald Dettwiler and Associates (MDA), now a well-run
profitable company. This funding is a sharp contrast to the anti-subsidy
oriented Provincial Government which does not believe in providing favors to
specific enterprises.
On one hand, it's encouraging that the Feds are investing such sums in
B.C. With the demise of the provincial Science Council's technology
development program, there's not a great deal of help for early stage
companies. On the other hand, though, I have to wonder why the government (i.e.
we, the taxpayers) is investing in a firm like MDA. To the Fed’s credit, one
cannot discount the impact that the National Research Council’s industry-assistance
programs has had on the development of young companies that have used this
support to get new products to market. We need more of that.
I believe that we could get a greater bang for our buck with a broader
distribution of funding. Six companies out of more than six thousand B.C.
technology companies means pretty low odds for most. Perhaps some federal
support for already proven local industry-driven organizations such as the B.C.
Advanced Systems Institute with its product development and technology transfer
programs would give us better leverage – especially when coupled with private
capital.
Some of B.C.’s recent initiatives are effective in providing a broad
market-driven mechanism for increasing the capital base. For example, the B.C.
Securities Commission’s de-regulation project already makes it easier for
companies to access capital. The Small Business Venture Capital Act designed to
attract and increase angel style investing through tax credits is having a
considerable impact.
It appears that both our provincial and federal governments are keen to
see B.C. thrive in advanced technology. Predicated on different political
ideologies, they each have their own strategies for accomplishing this. Federal
Industry Minister Allan Rock was in Vancouver recently to talk about Canada’s
“Innovation Agenda”.
Since the Premier’s Technology Council’s members are industry people -
not politicians - they are well positioned to engage in dialog with both levels
of government. By understanding the
different strategies and agendas, the Council could have an even greater impact
on industry development.
The way I see it, B.C. could indeed become one of the world’s top
technology centers. Cooperation between the provincial government and private
enterprise is an excellent start, but I believe that the odds of achieving this
recognition can be greatly improved if the spirit of cooperation extends beyond
provincial boundaries.
Michael
Volker is a high technology entrepreneur and director of Simon Fraser U's
University/Industry Liaison Office. He runs Vancouver’s Angel Technology
Network and is Chairman of the BC Advanced Systems Institute and past- chair of
the Vancouver Enterprise Forum. He may be reached at mike@volker.org.