Shawna L. Reibling, BA, Cert. CED

Centre for Sustainable Communities Canada

MEASURING REGIONAL CAPACITY IN SUSTIANABLE WATER, WASTE WATER,

WATER REUSE (W3R) TECHNOLOGY SECTOR IN WESTERN CANADA

04/18/23

Outline of Presentation

• Context

• Characteristics

• Findings

• Comparisons (Multimedia, Biotech)

• Exciting (Possible) Next Steps

04/18/23

Acknowledgements

• Project Participants: CSCC• Provincial

– Ministry of Competition, Science & Enterprise– Ministry of Community, Aboriginal & Women’s Services– Canadian Institute for Market Intelligence (CIMI)

• Federal– Western Economic Diversification– IRAP/ National Research Council

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Centre for Sustainable Communities Canada

• Not-for-profit virtual business consortium• Comprehensive analysis of the Water-related

Environmentally Sustainable Technology (EST) Industry in western Canada.

• This included SWOT & Cluster Studies and reviews of supporting service groups.

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A Unique Commodity

• Potable water is a finite resource

• Finite resource due to fiscal pressures• 16% U of C vs. 28% SFU students drink

bottled water everywhere (2002/03 survey of U of C & SFU students)

• changing patterns/sources of input (Langford)

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Measuring Cluster Capacity1. Export opportunities and description of sector

2. Venture capital supports

3. Regional Patents Filed

4. Law firms sector support

5. Post-secondary education sector support

6. Governmental program supports

7. International program supports

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W3R- EST Definition• “…including activities which produce

goods and services to measure, prevent, limit or correct damage to water, air and soil...It also includes activities that produce clean technologies, processes, products and services...”

• Two Categories of Water-related ESTs: resellers/repackagers

system integrators/manufacturers• Product/service divide is blurry: consultants

service is a product

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Regional Break-out of theWater-related Environmentally Sustainable Technology Cluster

BritishColumbia

Alberta* Sask.* Manitoba*

Distributors &Suppliers

226 24 9 12

Consultants 20 10 6 0Manufacturers 55 21 5 4

System Integrators 23 14 5 2Labs 10 4 0 0

Research Depts. /Patents

51 8 4 0

Testing & TrainingFacilities

4 3 1 0

Patents 28 17 4 4Patent Firms 21 13 2 2

Total 336 59 22 14* Data compiled has a BC focus, therefore information on smaller firms, especially in the Suppliers andDistributors sector are probably underrepresented in the three Prairie Provinces.

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Cluster Characteristics

• Both technology development and service oriented• Firms are mostly small and young (5-10)• No large anchor firms, small firms contract out

work to other firms• 60% of employees are highly qualified personnel• Most firms serve the domestic market (foreign

market opportunity)• Problem specific solutions (products)• Partnerships do occur, based on testing & manu.

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Cluster Description Cont.Breakout of Core WrEST Firms in BC by City

Lower Mainland Total 75 BC Interior 12

Vancouver 29 Fraser Valley 3

Burnaby 14

Richmond/Delta 8 BC Island Total 12

Surrey 16 Victoria 6

Langley 8 Island Other 6

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Cluster Characteristics Cont.

Note: We recognize that the system isn’t linear

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Venture Capital• Investors not aware of sector

• Not a risk problem, but perceived to have a low return on investment

• Due diligence is an issue

• Investors are recovering from “dot com crash”

• Exposure to water technologies is met with expressions of interest

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PatentsTABLE 1DISTRIBUTION OF US PATENTS ISSUED TOCANADIAN INVENTORS BY RESEARCH ENTITY

Sector Percentage ofTotal Patents

Sector Percentage ofTotal Patents

Corporate 44 Individuals 28US & Cdn. Corporate 6 Multiple Individuals 2Research Institutes 3 Government 9Universities 8 Not Categorized 0n = 158 Source: CSCC Research Program

TABLE 2DISTRIBUTION OF US PATENTS ISSUED TOUS INVENTORS BY RESEARCH ENTITY

Sector Percentage ofTotal Patents

Sector Percentage ofTotal Patents

Corporate 68 Individuals 22US & Other Corporate 0 Multiple Individuals 4Research Institutes 1 Government 3Universities 2 Not Categorized 0n = 90 Source: CSCC Research Program

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Patents ContinuedUS PATENTS GRANTED IN THE WATER TECHNOLOGIES SECTORTO CANADIANS SINCE 1990 BY CANADIAN CITY

Location # of Patents %British Columbia 28 16% Vancouver (Lower Mainland) 17 10% Kelowna 5 2% Other 6 5%Alberta 17 10% Calgary 8 5% Other 9 6%Saskatchewan 4 2%Manitoba (Winnipeg) 4 2%Ontario 83 48% London 8 5% Burlington 7 4% Ottawa 5 3% Toronto/GTA 23 13% Waterloo 6 3.5% Other 34 20%Quebec 28 16% Montreal 12 7% Other 16 9%Foreign 10 6%

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Law Firm Support

• Boutique firms

• Strong support capacity to file new R&D patents and developments (patent, trade-mark and IP firms)

• Lawyers also patent agents with technical professional backgrounds

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Academia• Specialized training programs present

• Lack of networking with private sector and universities – Professors are consultants and have weak links with

industry i.e. Manufacturing

• Limited demonstration and testing sites

• Canadian universities hold 8% of patents in this area, compared to 2% held by US Universities

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Gov’t & Int’l Support• High market demand with leverage of gov't

infrastructure programs.

• Government does support innovation through post-secondary funding

• Gov't programs not appropriate for small R&D

• Weak Canadian legislative environment at all four levels of government (innovative policy?)

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Cluster Similarities: Multimedia

• Both industries are small, young and innovative

• Both are service industries and technology integrators problem based

• Both are supported by patent friendly law firms

• Difference: Multimedia has a champion: Don Mattrick of Electronic Arts

• Diff: regulation & requirements; channelling

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Cluster Similarities: Biotechnology

• Both industries are small, young and innovative

• Both require specialized lab facilities and have high start up costs

• Difference: Has an industry champion: Julia Levy of QLT Phototherapeutics

• Technocentric bias?

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Further Research Opportunities• Pacific Centre for Water-related Environmentally

Sustainable Technologies (PC - WrEST):– Case study: Artificial creation of a champion?

What does increasing the social capital contribute? Map it? Track it?

• CEO forum to establish/solidify network connections:– Opportunity to direct the formation of networks.

Perceptions before and after info exchange. Degree of trust? Verification of innovation

policy?