Skip over navigation bars to content area.  Skip over navigation bars to table of contents.
Canada Flag Government of Canada Canada Wordmark
Français Contact Us Help Search Canada Site
Home What's New Media Room Business Gateway Site Map
Innovation in Canada
Beginning of table of contents Skip over table of contents to content area.
  Browse by Region
  Browse by Subject
  Reports on Federal Science and Technology
Beginning of content Skip over content information to footer notice area.

Submission—Oceans Technology Industry (West Coast)

Background

As part of Canada’s Innovation Strategy launched earlier this year, the Oceans Technologies (Pacific) Industry Innovation Committee was appointed to advise Industry Canada on the goals and targets outlined in “Achieving Excellence.” The committee looked at the following four key areas:

  • Knowledge Performance – Encouraging Canadian firms to reap more benefits from creating knowledge and bringing ideas to market. It also means increasing R&D investment in Canada by all sectors

  • Skills – Ensuring that in years to come, Canada has enough highly qualified people with the skills for a vibrant, knowledge-based economy.

  • The Innovation Environment – Modernizing our business and regulatory policies to support and recognize investment and innovation excellence.

  • Strengthening Communities – Supporting innovation at the local level so that our communities continue to be magnets for investment and opportunity.

In addition, the committee sought to develop a report with recommendations for improving Canada’s innovation performance in Ocean technology. The meeting was chaired by John MacDonald, founder of MacDonald Dettwiler & Associates, and recorded by Ian Brotherston of the Canadian Institute for Market Intelligence. The following companies participated:

Paul Lacroix, Chair
Quester Tangent Corporation

Harry Weiler, Vice Chair
Axys Technologies Inc.

David Lemon
ASL Environmental Sciences

John Jacobson
Offshore Systems Ltd.

Hans Grey
Kongsberg-Simrad

Jim McFarlane
International Submarine Engineering

What is Innovation?

Innovation means coming up with new ideas about how to do things better or faster. It’s about making a product or offering a service that no one had thought of before.

Innovation starts with a problem. It’s about having access to your customer’s problems, figuring out solutions and having the capability to react. Innovation is not the same as research and development because anyone can innovate. Innovation is for all Canadians.

Achieving Excellence:

Recommendation #1

Provide greater incentives for programs that target the commercialization of Ocean technologies as part of Canada’s Innovation Strategy. Enable government, institutions, and industry to carry out the required work for stewardship of the oceans.

Canada is a maritime country, despite the vastness of its Interior across North America. With three oceans bounding 244,000 km of coastline and approximately half of its sovereign lands under water, Canada is responsible for managing the second largest exclusive economic zone (EEZ) in the world, encompassing some 5 million square kilometers of Atlantic, Pacific and Arctic oceans.

Canada is recognized as a world leader in the processing and application of ocean data sets, and is globally respected for its expertise in the development of marine technologies. The global marine information services market is projected to grow to $8.05 billion CAD by 2010 and $12.42 billion by 2020 (Greenwich Report, 2000).

Canada can make a global impact in this market. While humanity has the ability to peer into space and reveal and study our moon, the planets, stars and even distant galaxies, we know relatively little about the oceans of our own planet. The oceans cover about 75% of our planet, but 95% of the oceans remain relatively unexplored. Consequently, society is ignorant of the significant impact that the oceans have on our existence, and perhaps more importantly, of the impact that we are having on our oceans. This represents a tremendous opportunity for Canada.

Recommendation #2

Government investment in Venus, Neptune, SEAMAP and BC Oil & Gas exploration should be levered to strengthen both domestic industry and infrastructure.

Over the next decade, the Canadian Federal & Provincial Governments, along with industry, are estimated to invest $232 million in four major West Coast projects. These include:

  1. Victoria Experimental Network Under the Sea (VENUS) – seafloor instrumentation project for Georgian Basin off the coast of Vancouver Island. Estimated budget: $10M over 4 years
  2. Neptune Project – seafloor instrumentation project for Juan de Fuca Plate (Joint US (70%) / Canada (30%) project). Estimated budget: $92M over 7 years
  3. Canadian Seabed Resource Mapping Program (SEAMAP) – Mapping of BC continental shelf to instigate informed decisions regarding B.C. Oil & Gas development. Project sponsors include Natural Resources Canada (NRCan), Department of Fisheries and Oceans (DFO), and Department of National Defense (DND). Estimated budget: $30M over 10 years
  4. BC Oil & Gas Exploration – Mapping of the seafloor in preparation and support of the expected resumption of offshore oil & gas industry in BC. Estimated budget: $100M+ over 10+ years

Recommendation #3

Implement a National Ocean Industrial Policy to align goals with needs, projects, incentives, taxes, immigration policy etc.

Eight of Canada’s provinces and all three territories border salt water. Supporting this reality, some 23 federal departments and agencies are involved in the varied aspects of oceans management, together with provincial governments and various other non-government organizations. The Department of Fisheries and Oceans (DFO) is the designated lead department that co-ordinates the management of Canada’s oceans. However, the complexities of managing differing mandates, as well as the often complicated conflicts between regulatory, environmental conservation and sustainable development concerns, and the goals of the commercial fishery, industrial and economic development make the task of effective integrated oceans innovation strategy a considerable challenge.

Recommendation #4

Double the funding support of successful innovation programs such as the National Research Councils Industrial Research and Assistance Program (NRC-IRAP).

Government should increase funding for industry, universities and laboratories through existing programs that encourage innovation. These include: Industrial Research & Assistance Program (IRAP), Canadian Foundation for Innovation (CFI), Technology Partnerships Canada (TPC), and the Knowledge Development Fund (KDF).

The governments need to align their policies to support the innovation goals. This alignment should encompass purchasing, reduced taxation, and regulatory barriers. Innovation champions should be recognized and encouraged. Entrepreneurial attitudes and technology transfer to industry from government must be part of the job. The government should use successful programs such as CCRS/SR&ED and IRAP to encourage more applied development (ie. “big D”) as well as commercialization. In order to encourage an innovation environment, the government must send clear signals to their employees and industry that their policies and programs are aligned.

Recommendation #5

Realize that government is a key customer for the ocean technology industry. Hence, supportive government policies will be important in achieving innovation success or failure.

Canada is recognized as a world leader in the processing and application of ocean data sets and is globally respected for its expertise in the development of marine technologies. This reputation did not come easily but rather was earned through decades of technical and financial investment in one of the world’s harshest marine environments. This investment not only allowed the country to capitalize on its marine resources while gleaning a better understanding of the marine environment, but also established the country’s marine technology community as an international leader in the field.

Recommendation #6

Reinstate a “BUY Canadian” procurement policy across government for the Oceans Industry. Be the first customer / user of new products.

Ocean Technology industries offer:

  • marine technologies and equipment (robotics, sub-sea vehicles, navigation, imaging equipment, oceanic sensors, marine applications programming and information systems used in ocean operations, surface vessels, airborne/spaceborne remote sensing systems);
  • communications and electronics equipment frequently used in navigation;
  • professional services (electronic and environmental engineering, offshore platform design, materials and structural design, systems integration, oceanography, meteorology, ocean surveying and mapping).

Throughout the 1980’s, the Institute of Ocean Sciences in Sidney, B.C. and the Beaufort Sea project helped promote and enhance the development of Ocean technology on Vancouver Island. Companies located in Vancouver were established to commercialize technologies developed for the submarine industry. The Unsolicited Proposal (UP) Program was an excellent mechanism for innovation. “It helped to build MacDonald Dettwiler into what it is today”, says John MacDonald founder of MDA. Canada needs to reinstitute the UP program.

For a “Buy Canadian” policy to work, as it did in the past with the UP program, the federal government needs to restore adequate funding and independent decision-making to its labs and agencies here on the Pacific Coast. Government labs can not effectively purchase and support innovative products without the budget to do so.

Currently, there are several hundred companies employing 40,000 persons in BC’s Ocean Technology Industry. More than fifty of these companies work in ocean instrumentation and related business. They have world leading technology, with over 85% of their sales exported from Canada. Due to the lack of any sizeable Canadian domestic market, these companies have had little collaborative business together and have little to no resources targeted for the domestic market. While profitable, this sector is not well capitalized. 30-50% of their annual expenditures are directed toward research and development.

A “Buy Canadian” procurement policy would offer product validation for SME's competing internationally. The first question most foreign governments ask is, “Has your government purchased your product/service?” Too often the answer is no.

Recommendation #7

Invite industry early in the process to participate with government to access problems and formulate solutions.

The innovation process starts with accessing problems and continues through R&D, commercialization, demonstration & validation, and commercial success. Government and University personnel need to understand that significant innovation, including R&D, is carried out in industry, as well as in government and university laboratories. A new “worldview” must be adopted and encouraged through the creation of public-private-partnerships or “Clusters.”

Recommendation #8

Accept a reasonable risk level and reward risk takers in government and industry.

Risk avoidance generates a large volume of regulation and paperwork for both government and industry. The government should accept reasonable levels of risk and reward government innovation champions, departments, and programs that accept risk, rather than penalizing them. This will encourage innovation, reduce paperwork and bureaucracy, and save resources. Innovation by its nature requires risk.

Recommendation #9

The government must ensure that our workforce has the skills needed to supply government, university and industry to meet our goals.

Increasing resources to learning institutions, encouraging our youth, and initiating a skill-based immigration policy are key parts of any solution.


Recommendation #10

The B.C. Ocean Technology industry needs a Tier 1 business to lead it in the global marketplace.

We need a new approach. The BC Ocean technology industry has not been well served by either the provincial or federal governments over the last 15 years. The industry has been weakened by federal and provincial feuding over the oceans, the removal of DREP - the Department of Defense’s research laboratory, and the inequity of government programs east to west - Western Economic Diversification (WD) and the Atlantic Canada Opportunities Agency (ACOA) operate very differently.

The BC Oceans Technology Industry needs a Tier 1 business to lead it in the global marketplace. This Tier 1 business, once created together with Universities, government laboratories, and the existing ocean technologies subcontractors, would be a strong world leading technology and business cluster that would lever government investment in Venus, Neptune, SEAMAP and hydrocarbon development. This would help enhance the development of the industry and its infrastructure, while providing the capacity to contract business and compete on international projects. A locally developed Tier 1 business in Sidney, BC near the existing government labs (IOS, HIA and PBS), the University of Victoria with its School of Earth and Ocean Sciences, and the established ocean technology companies is a real possibility. Currently, the Sidney-based Ocean Technology Cluster together with UVIC and HIA, are working to create this Tier 1 company based upon a private-public-partnership model.

Innovation is not just for government. Our recommendations for industry are as follows:

  1. Invite government to help solve problems
  2. Seek out government champions
  3. Encourage partnerships between government, universities and industry via clustering. Work
    together for the mutual benefit of the domestic market (ie. “grow the pie”). Compete aggressively in the international market
  4. Celebrate successes
  5. Invest in partnerships between university, government and government laboratories
  6. Partner with universities and employ COOP and grad students in ongoing operations
 
Beginning of footer notice area
     
   
   
Date created: 2003-03-03
Last modified: 2003-11-16
Top Important Notices