What Are Technology Clusters?

Clustering is a term that economists have borrowed from science to describe the growth of a significant concentration of innovative companies around a nucleus of R&D facilities, such as those provided by a university or a leading-edge government laboratory.

In recent years, several of NRC's research institutes have become central hubs for dynamic technology clusters in diverse areas of science and engineering. Communities such as Montreal, Ottawa and Saskatoon have seen the tremendous growth that can occur when industry leaders and researchers come together to identify needs and develop solutions that touch the lives of people in their sphere of influence. With stakeholder involvement in strategic planning, this local touch can quickly transform a small community into a dynamic network with global reach.

Community integration is the key to technology cluster success. Fuelled by innovation, the cluster becomes a hotbed of investment and technology transfer. Small companies spin off from the original R&D laboratory. Startups find the technical and financial support they need to establish a customer base for innovative products and services. The success of one company attracts another, and another-eventually building a critical mass of skilled people, expertise, capital and entrepreneurial drive. Such an environment helps create local jobs and fuels economic growth in a region. Overall, clusters contribute to a higher quality of life for the community, the region and the country.

In June 2000, NRC launched a five-year $110-million Atlantic Initiative, a key component of the Government of Canada's $700-million Atlantic Investment Partnership. This initiative was designed to forge partnerships and build on Atlantic Canada's existing strengths to create globally competitive technology clusters. Between 2001 and 2002 NRC received close to $300 million in additional funds to expand its cluster activities in other communities across Canada.