Commercialization Task Force 2003 Interim Report

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Commercialization Task Force2003 Interim Report

• February 2004

 
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• Agenda
• 2003
• Stage 1 Task Force Creation
• Stage 2 Problem Definition
• Stage 3 Research Validation
• Stage 4 Defining Solutions
• Stage 5 Formulating Recommendations
• 2004
• Stage 6 Selling the Solution Recommendations
• Stage 7 Implementation, Monitoring Feedback

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Commercialization Task Force

• Ottawa-Gatineau Region Institutions
• Ottawa Centre for Research Innovation (OCRI)
• Greater Ottawa Chamber of Commerce (GOCC)
• Ottawa Life Sciences Council (OLSC)
• The Ottawa Partnership (TOP)
• City of Ottawa
• City of Gatineau
• Recruitement des Gents dAffaires (RGA)
• National Organizations
• National Capital Institute of Telecommunications
  (NCIT)
• Information Technology Association of Canada
  (ITAC)
• Canadian Advanced Technology Association (CATA)
• PRECARN
• Software Human Resource Council
• National Research Council (NRC)
• Academic Institutions Industry
• The University of Ottawa School of Management
  Faculty of Engineering
• Carleton University Sprott School of Business
  Faculty of Engineering
• Algonquin College

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Mission

• Develop the environment (political, financial,
  professional, educational) and the means for one
  in five technology companies to become global
  leaders in their market segments by 2010.

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• Agenda
• 2003
• Stage 1 Task Force Creation
• Stage 2 Problem Definition
• Stage 3 Research Validation
• Stage 4 Defining Solutions
• Stage 5 Formulating Recommendations
• 2004
• Stage 6 Selling the Solution Recommendations
• Stage 7 Implementation, Monitoring Feedback

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Commercialization Academic Innovation vs
Industry Commercialization
Research
Market
Academic
Market Risk
Innovation Risk
Technology Risk
Industry
Development
Product
Product Risk
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Commercialization Elements
Idea Commercialization from Idea to Technology
to Prototype...
Market Channel
Satisfied Customer
Viable Business
Idea
Technology
Product
Product Commercialization from Product to Channel
to Customer to repeat Business...
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Problem Definition Task Force Views

• The ratio of profitable to non-revenue-generating
  technology companies in Ottawa-Gatineau is too
  low
• The percentage of technology companies crossing
  the threshold to become mid-size (50M annual
  revenues) companies with global leadership
  positions in their market segment is much too
  small
• Too many companies are being purchased at low
  valuations and eventually turn into precarious
  satellite RD labs partly from difficulties in
  creating complete companies
• There is too much emphasis on RD and not
  sufficient on commercialization.
• VC and other risk capital investments in
  Ottawa-Gatineau technology community continues to
  drop to non-sustaining level

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Company Size Distribution
G
G
5B
Large
Large
500M
Commercialization Loss
Medium
Medium
50M
5.0M
Small businesses
Small Businesses
0.5M
Maturing Startups (Product Stage)
Startups (Product)
0.0M
Early Startups (Technology Stage)
Early Startups (Technology Stage)
Revenues
Balanced Growth Community
Market Throttled Community

• Worrisome statistics
• Canadian venture capitalists handed out 60 per
  cent less money in the 1st quarter 2003
• In Ottawa the dollar value of VC investments fell
  90 to 43M from 372M in the same period the
  year before. The 1st quarter tally was down about
  80 from the 245M raised in the last quarter of
  2002.
• 18 firms (mostly already in the portfolio) shared
  the money compared with 20 firms the year before
  

Macdonald Associates and the Canadian Venture
Capital Association
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• Agenda
• 2003
• Stage 1 Task Force Creation
• Stage 2 Problem Definition
• Stage 3 Research Validation
• University Research Preliminary Findings
• Stage 4 Defining Solutions
• Stage 5 Formulating Recommendations
• 2004
• Stage 6 Selling the Solution Recommendations
• Stage 7 Implementation, Monitoring Feedback

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Statistical Research by Ottawa Schools of
Management

• Tyler Chamberlin
• John de la Mothe
• Jerome Doutriaux
• Scott Goodman
• Ajax Persaud

• Shaunak Bapat
• Francois Brouard
• Vinod Kumar

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Ottawa CompaniesDistribution by Employment
OCRI, Data Base 2Q03
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Comparing Technology Regions
Oxfordshire (1,095) Oxfordshire (1,095) Silicon Valley (25,787) Silicon Valley (25,787) Ottawa (1,043) Ottawa (1,043)
1 to 5 49.2 0 to 4 62.0 1 to 5 26.4
6 to 10 16.7 5 to 9 13.2 6 to 10 18.2
11 to 25 14.6 10 to 19 9.2 11 to 25 21.4
26 to 50 8.8 20 to 50 8.6 26 to 50 16.2
51 to 99 4.9 51 to 100 3.2 51 to 99 9.3
100 to 249 3.3 101 to 250 2.2 100 to 249 5.4
250 to 499 1.6 251 to 500 0.8 250 to 499 1.2
500 to 999 0.4 501 to 1000 0.4 500 to 999 1.1
1000 0.5 1001 to 2500 0.2 1000 0.9
2500 0.1
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Comparison of Large Corporations(World-wide
Revenue)
Fortune 500 High Tech Sector
Silicon Valley Company Rank Revenue (MUS) Canadian Company Rank Revenue (MUS)
Hewlett Packard 14 58,588 BCE 390 13,020
Intel 58 26,764 Nortel 470 10,701
Cisco 95 18,915 Cognos n/a 500
Source Fortune 500 Worlds largest corporations
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Initial Findings

• High Percentage of firms in the 10-100 employee
  range probably due to 3B venture capital inflow
  from 2000-2003
• Distribution of firms by size (local employment)
  comparable to other tech centres except
• At very low end, Ottawa has fewer
• Is the recent 50 increase in the number of tech
  companies sufficient to create a future pool of
  large successful tech companies?
• At the very high end, Ottawa has more
• Ottawa-based large companies small in size
  compared to Silicon Valley (both in employment
  and sales)
• Ottawa-based large companies tend to be branch
  operations of multinationals

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• Agenda
• 2003
• Stage 1 Task Force Creation
• Stage 2 Problem Definition
• Stage 3 Research Validation
• Stage 4 Defining Solutions
• Stage 5 Formulating Recommendations
• 2004
• Stage 6 Selling the Solution Recommendations
• Stage 7 Implementation, Monitoring Feedback

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Selling the Recommendations

• Work with Industry to finalize the details of the
  recommendations
• Present Recommendations to Federal Government
• Industry Canada Meeting
• other meetings...
• Present Recommendations to Provincial Governments
• Ontario
• Quebec
• Others
• Present to Municipal Authorities
• Ottawa
• Gatineau

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