Western Economic Diversification Canada
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Success of the WEPA
Strategic outcome – Community Economic Development
Community economic development accounted for 51% of the WEPA projects and 41% of total WEPA expenditures between the evaluation periods of July 14, 2003 to March 31, 2007.
Investments in community economic development by the WEPAs are intended to strengthen the competitiveness and sustainability of communities with particular focus on rural or northern development. Urban considerations are factored into the selection of projects where the economic and community impacts are recognized. Projects tend to have a community wide emphasis focusing on increasing the viability and diversification of local economies and contributing to enhanced community planning.
61.7% of funding recipients agreed that WEPA funding for their projects helped to increase viability and diversification of local economies and 88.7% felt it contributed to enhanced community planning. Mitigating economic crisis was not a major focus of WEPAs and less than half of funding recipients agreed that their projects achieved results in this area.
| Community Economic Development Impacts | Strongly Disagree/ Disagree | Neutral | Agree/ Strongly Agree | Don’t Know/Not Applicable |
|---|---|---|---|---|
| Increased viability and diversification of local economies | 10.0% | 18.3% | 61.7% | 10.0 % |
| Contributed to enhanced community planning | 1.7% | 5.0% | 88.7% | 5.0% |
| Helped mitigate economic crisis | 16.7% | 33.3% | 43.3% | 6.7% |
The WEPA administrative database indicated 40 communities had results related to enhanced community services. The database also indicated 27 business plans, tools, strategies or agreements developed through WEPA projects that contributed to results in community economic development.
Two examples of projects that demonstrated results in community economic development through WEPA funding from the file review are shown below.
- WEPA contributed $566,250 to Saskatchewan’s Aboriginal Human Resource Council (AHRC) project to extend funding for the oil sand sector job placement initiative (total projects costs of $755,000). The objective of the project termed Job Horizons was to increase employment opportunities and promote capacity building and skills training to Aboriginal residents of Northern Saskatchewan. By the time the project was completed in June 2008, 311 job placements have been made with 65 employers taking part in the project. The project resulted in increased aboriginal participation in the economy and increased opportunities for residents of northern and rural communities. The success of the project urged the AHRC to initiate dialogue with the federal government to undertake a scaled up version (Job Horizons II) beyond 2008/09.
- WEPA contributed $200,000 to the District of Campbell River in British Columbia to assist in developing an engineering design for the Campbell River cruise ship terminal (total cost of project was $500,000). The engineering design was completed and led to Phase III of the project (construction of the port) for which WD contributed $3.2 million out of the total cost of $24.5 million.
The port was built and officially opened with the arrival of Regent Cruises' 700-passenger Seven Seas Mariner. The port is owned and operated by the Campbell River Indian Band and it is estimated to bring substantial long-term economic benefits to Campbell River and the entire regional economy with the creation of over 200 jobs and estimated average annual economic impacts of $11.4 million. This project demonstrated the development of a business tool (the engineering design), which was implemented and is likely to lead to new and growing businesses and employment.
Strategic Outcome – Entrepreneurship and Innovation
Entrepreneurship and Innovation accounted for 49% of the WEPA projects and 59% of total WEPA expenditures between the evaluation periods of July 14, 2003 to March 31, 2007.
The WEPAs support initiatives that promote entrepreneurship, which include the development of infrastructure and linkages that strengthen clusters or foster growth within key strategic sectors of the economy. WEPA projects that support innovation invests in infrastructure, skill building and organization by enhancing technology commercialization and technology adoption in firms to support economic growth and maintain the competitiveness of businesses and sectors in western Canada.
In some cases, investments in entrepreneurship and innovation have a strong inter-related component in each other and also in community economic development.
Entrepreneurship
The WEPA logic model recognizes a competitive and expanded business sector, increased opportunities for investments and growth in international trade as some of the long-term impacts of investing in entrepreneurship activities. Some short and medium term outcomes that lead to these long-term outcomes include:
- Industry collaboration and stronger sectorial clusters through partnerships and strategic linkages;
- New and growing businesses through businesses created, maintained or expanded
- Improved business skills through entrepreneurship training programs; and
- Increased trade and participation in international markets and increase level of investment.
Recipient survey respondents reported their products achieving results in some short and medium term outcomes entrepreneurship (Table 4-2). 93.3% of the respondents indicated that their projects resulted in increased successful partnerships and strategic linkages. From the WDP evaluation, key informants indicated the achievement of successful partnerships and strategic linkages, to support entrepreneurship. By promoting partnerships, the WDP sub-components such as WEPAs were said to improve knowledge transfer, create new investment opportunities, and increase collaboration between sectors and levels of government.
| Entrepreneurship Impacts | Strongly Disagree/ Disagree | Neutral | Agree/ Strongly Agree | Don’t Know/Not Applicable |
|---|---|---|---|---|
| Increased participation in international markets | 28.3% | 25.0% | 45.0% | 1.7% |
| Increased foreign investment in Western Canada | 21.7% | 31.7% | 18.3% | 28.3% |
| Increase productivity | 5.0% | 20.0% | 61.7% | 13.3% |
| Increased successful partnerships and strategic linkages | 0.0% | 6.7% | 93.3% | 0.0% |
Survey respondents were less likely to indicate that their projects resulted in foreign investment. 61.7% of respondents indicated that their projects increased their productivity.
Other short and med-term results achieved through WEPA investments and reported through other lines of evidence include:
- New and growing businesses: The administrative database had one WEPA project having identified 34 businesses created/ maintained/expanded as its indicator exceeded the project’s target outcome of 12. One WEPA case study, SpringBoard West Innovations in Saskatchewan, had one spin-off company with two other possibilities underway. Fifteen spin-off companies are expected to be formed by March 2010
- Improved business skills: The WEPA database indicates that two courses were developed for businesses, 53 sessions/courses/classes held. Three WEPA projects had a total of 1,944 individuals trained on entrepreneurship related courses from April 1, 2003 to March 31, 2007. From the file review, the Retail Merchants Association of BC developed customized retail training program in BC. The WEPA contributed $47,500 out of the total project costs of $115,000. Results from the project website indicate retail stores experiencing higher sales using the skills from the courses. The course is now being expanded into other provinces.
A WEPA entrepreneurship case study, the MB Audio Recording Industry Association/MB Motion Picture Industry Association in Manitoba showcased several results achieved both in the short and medium term.
Case Study: MB Audio Recording Industry Association/MB Motion Picture Industry Association (Project #2791) in MB
Short and medium term results achieved in this project include:
- Industry collaboration and stronger sectorial clusters through partnerships and strategic linkages
- New and growing businesses through businesses created, maintained or expanded
- Increased trade and participation in international markets and increase level of investment
In April 2004, WEPA provided $1.2 million to support the Manitoba Motion Pictures Industry Association (MMPIA) and the Manitoba Audio Recording Industry Association (MARIA) to initiate Phase II of a five-year initiative from 2004 to 2009. Additional support was received from the Province of Manitoba, Industry, and other governments with the objective to increase local, national, and international market access, and enhance the overall marketability and competitiveness of the film and music industry sectors in MB.
The project permitted hundreds of industry association members to attend key national and international film and music markets to locate broadcasters, distributors and partners for co-productions and recording deals with two trade missions organised to Los Angeles.
Film production success from Manitoba include:
- ‘My Winnipeg’ - won best Canadian feature at the Toronto International Film Festival in 2007.
- ‘Falcon Beach’ - first primetime drama series in Manitoba to be aired around the world.
- ‘Til Debt Do Us - TV show that won Frantic Films its first Gemini Award.
The success of the project was sited as a contributing factor in shaping post secondary education curricula in MB. As an example, Red River College (RRC) expanded its Digital Multimedia Technology two year degree program to include a third year in the area of 3D animation as a result of industry requirement for advanced skills in this area.
Respondents indicated increased and improved provincial, national and international awareness of the film and music industry in Manitoba in addition to increased participation in international markets. From the project files, 180 artists released albums in 2007 out of which, 163 were locally produced in MB. Of these albums, 37 had national distribution, 16 international distributions. An increasing number of small and medium sized businesses (service producers) emerged to support the growing film sector. Examples include catering companies, transportation and drivers, construction trades to support set building, set decoration, costume hair and makeup.
Contributions to the Manitoban economy were also significant. The industry employs 2,300 people in both direct and indirect jobs and has seen increases in production volumes and employment over the past few years. Manitoba has the second highest production volume in Western Canada totalling over $120 million in 2007-2008, exceeding production levels in both Alberta ($106 million) and Saskatchewan ($73 million).
Innovation
The WEPA logic model recognizes a strengthened and innovative system in western Canada as one of the long-term impacts of investing in innovation activities. Short and medium term outcomes that lead to this long-term outcome include:
- Enhanced technology adoption, commercialization and stronger linkages;
- Improved research and development capacity leading to technologies with commercialization potential;
- Improved innovation capacity; and
- Improved competitiveness of businesses in key sectors through technology skills development and knowledge infrastructure.
Table 4-3 indicates some short and medium term results reported by survey recipients for innovation. 81.7% of respondents indicated that their projects resulted in increased education, training, or skill development, which is related to outcomes in improving competitiveness of the businesses in key sectors. About half of respondents indicated results in increase research and development and in increase technological capacity. Slightly less than half of respondents indicated results in technology linkages and in knowledge infrastructure. From the WDP evaluation, key informants indicated that technology has been an area of recent investment for WDP and its sub-components such as the WEPAs with such activities as training, science and technology programs, involvement in building research centres, and technology commercialization and adoption work.
| Innovation Impacts | Strongly Disagree/ Disagree | Neutral | Agree/ Strongly Agree | Don’t Know/Not Applicable |
|---|---|---|---|---|
| Increased education, training, or skill development | 1.7% | 6.7% | 81.7% | 10.0% |
| Increased research and development | 11.7% | 15.0% | 58.3% | 15.0% |
| Increased technology capacity in community | 13.3% | 6.7% | 50.0% | 30.0% |
| Increased technology linkages | 15.0% | 16.7% | 48.3% | 20.0% |
| Increased physical infrastructure for research and development | 15.0% | 21.7% | 45.0% | 18.3% |
| Developed a technology in a research institution with commercialization potential | 25.0% | 13.3% | 31.7% | 30.0% |
Results from other lines of evidence linked to both short and mid-term outcomes of WEPA investments in innovation are shown below:
- Technology adoption, commercialization and stronger linkages: The administrative database indicates that from 2003 to 2007, WEPA investments resulted in 6 patents being filed. From the file review, WEPAs support to organizations such as Communities for Tomorrow brings together businesses, researchers and municipalities to develop innovative new infrastructure solutions, test them, and deliver them to the global market.
- Research and Development, and Knowledge Infrastructure: From the WEPA administrative database, 26 new products resulted from research and development activities. From the file review, WEPAs provided $2.5 million to the Alberta Research Council to assist in building an agriculture fibre pilot processing facility. Expected outcomes form the project will be the establishment of new-bio-products companies in western Canada leading to job creation and new economic activities.
A WEPA innovation case study, the Canadian Light Source Inc project in Manitoba showcased several results achieved both in the short and medium term.
Case Study: Canadian Light Source Inc (Project #3209) in SK
Short and medium term results achieved in this project include:
- Industry collaboration and stronger sectorial clusters through partnerships and strategic linkages
- Increased trade and participation in international markets and increase level of investment
The Canadian Light Source, Inc. (CLS) is a $173.4 million national synchrotron (scientific machine designed to produce very intense beams of x-rays and ultraviolet light) light facility located on the University of Saskatchewan campus in Saskatoon, Saskatchewan.
This particular project was designed to provide operating funding over a five and a quarter year time frame from 2003/04 to 2007/08. This project is funded under the Western Economic Partnership Agreement (WEPA) and is cost-shared (50/50) with the Province of Saskatchewan ($3 million each). The project supported operating funding for development of beamline science for industrial users, industrial liaison scientists, working with industry to identify opportunities, business development and marketability, and development of a CLS economic development strategy. Other funding has been provided under WEPA to CLS to purchase new equipment (CLS benefited from more than $1 million in funding in February, 2008).
WEPA funding allowed CLS has developed strong working relationship with 39 Canadian universities and their synchrotron scientists. Other relationships have been established with different industry sectors, including mining, oil and gas, agriculture, pharmaceuticals, medical imaging, aerospace, automotive, and medical device manufacturers.
Case study respondents indicated that this particular project increased or contributed to increased viability and diversification of local economies, technology linkages, research and development, technology skill development, and successful partnerships and/or strategic alliances. The completion of the Phase I beamlines was described as an important output of the project. As well, increased academic, national and international awareness have resulted from the project.
Respondents also reported that WDP funding brought about two major impacts:
- WDP funding allowed CLS to be heavily promoted across the academic community, as well as with businesses, nationally and internationally. Funding also afforded CLS the occasion to undertake significant promotional activities, both locally, provincially, national, and internationally, and has allowed CLS to bring its activities to the ‘layperson,’ and establish its relevance.
- Secondly, WDP funding has provided CLS with tremendous leveraging power to access additional funds from other sources. Reporting on some project indicators such as increased industry use was not available due to the confidentiality issues surrounding the information of industry users. The evaluators received a guided, extensive tour of the facility and it was noted that the CLS facility is greatly expanding the construction of a beamline to be used in medical and veterinary research.
