Potential Action/Suggested Approaches

The options below offer WD means to increase Western Canada's engagement in LAC and to effectively contribute to the 'whole of government initiative' underway to become better engaged in the LAC region.

The most promising area for activity by WD is in the advancement of Western Canadian innovation clusters through relationship building with key stakeholders in Latin America. While this study interviewed a sample of innovation clusters with respect to their existing activities in LAC, further research would be required to assess the potential for technology based partnerships for specific innovation clusters.

Some suggestions are provided below with respect to activities that can support relationship building and other objectives. The suggestions are presented in order, with those thought to be most useful to supporting the advancement of innovation clusters through relationship building.

S&T Study Tour to Western Canada
There are two Trade Commissioners at Canada's LAC Posts (Sao Paulo, Brazil and Santiago, Chile) with specific responsibilities for Science and Technology. It may be worth considering supporting these Trade Commissioners in undertaking a Study Tour of Western Canada's innovation clusters. Consideration could also be given to inviting an appropriate official from the Inter-American Development Bank, and possibly the Latin American director for IDRC.

There may also be potential for a Western Canada capabilities brochure for dissemination to Canada's LAC Posts.

Relationship Building with Canada's Posts in Miami and Houston
DFAIT notes the importance of Canada's Post in Miami with respect to Canada's Latin America market development efforts⁵⁹. Most big American companies active in Latin America are headquartered in Miami. Houston is significant in the oil and gas industry. For example, PetroBras maintains a major procurement office in Houston. WD could liaise with these two Posts to explore potential LAC opportunities under the North American Platform Program.

Monitor ACOA's Technology Partnering Initiative
ACOA plans to work with Posts and NRC-IRAP in one or more markets interested in technology partnerships with Canada to identify and introduce potential matches. The approach would be based on NRC-IRAP's Open House Canada Program. Consistent with other recommendations in this report about innovation clusters, this ACOA activity may be a model worthy of closer examination.

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Facilitate Clusters/Academia Partnerships
One way to gain entry into many Latin American countries is through academic communities. The consultants encourage facilitation of an effective relationship between the innovation clusters and academic institutions, focused on the LAC region and led by the latter. WD could choose to facilitate a strengthened partnership between colleges, universities and the clusters to focus on the region, led by the academic community. Certainly collaborative partnership between academic institutions and these clusters are the norm today but a concerted effort along these lines should provide significant new leveraged results.

A related opportunity focuses on significant efforts to attract youth from the region to study in Canada and programs such as Global Vision Junior Team Canada⁶⁰ , which create opportunities for young Canadians to travel and learn abroad. Relationships established in student exchanges are life long and life changing. There is a role here for WD to ensure maximum impact in Western Canada of such opportunities.

Countries that are logical, but not sole targets for such relationships include Brazil, Chile, Peru, and those with which Canada is finalizing Free Trade Agreements. However, a detailed review of relationships developed in recent years by Canadian colleges and universities will almost certainly yield opportunities in other countries in the region. When consulted the constant and reasonable refrain from interlocutors revolved around a lack of resources to expand either exploration or activity. WD could play a facilitative role here.

Support Industry Associations
There is potential for WD to support efforts by private sector industry associations actively seeking to expand corporate engagement in LAC. WD could play both a sponsorship and facilitative role and ensure these new approaches take into account the needs of client groups across Western Canada. In particular, WD could work with the Canadian Council for the Americas and the Brazil-Canada Chamber of Commerce both of which undertake business development activities in LAC.

Awareness Building
WD could have a significant role in disseminating or enhancing knowledge on LAC. In particular, WD can consider ways and means of increasing market awareness in the business community and innovation clusters. For example, WD could play a role in ensuring that Western Canadian business and innovation clusters are fully briefed on the opportunities and impacts of new Free Trade Agreements in Latin America. A parallel activity is ensuring that Western Canada's viewpoint is heard prior to negotiation of any new FTA.

Embraer Outreach
WD is active in bringing major federal procurement opportunities to the attention of Western Canadian aerospace suppliers. The Embraer connection is advancing and a role for the department may be appropriate. An OECD plus Brazil agreement on buyer financing limits has improved the bilateral relationship, along with Air Canada's purchase of 60 Embraer aircraft. Embraer may be planning a mission of Canadian firms to Brazil.

Leverage Existing Western Canadian Links with LAC
Another opportunity is to have WD undertake a role in working with, leveraging, and supporting the very substantial economic links that already exist between Western Canada and the LAC region. Western Canadian corporations like Teck Cominco, Nexen, Enbridge, Methanex, EnCana, Canadian Superior Oil, Potash Corporation, Talisman and a dozen or more other energy and resources based firms are active and have invested billions of dollars in the region. These major Canadian companies have substantial experience in the LAC region that should be shared with other interested companies. Furthermore, their experience and knowledge can be used to advise and/or assist other Canadian firms. These companies have confronted the challenges of exporting to, investing in, and joint venturing with firms in the LAC region, and have experience dealing with policy, regulatory, and political challenges present in the region.

In addition they could be tapped for their experience/advice and perhaps used to piggy back new firms into the region in sectors such as environmental and petroleum technologies. The Canadian Wheat Board books a quarter of their sales in LAC, and Western Canadian suppliers sold over $150 million in peas, beans, and lentils into the area in 2007. These and other agriculture product exporters might be able to assist firms in the functional foods and nutraceutical cluster for example.

Non-Government Organizations (NGOs) with experience in the region can potentially be useful partners for initiatives in the LAC region. For example, business development in Latin America in many cases encounters impacts on Indigenous Peoples. NGOs are knowledgeable is such areas, including Corporate Social Responsibility which is a Government of Canada priority. Key NGOs with strong Western Canadian presence include the International Institute for Sustainable Development, the Suzuki Foundation, the Pembina Institute, and Canadian Business for Social Responsibility.

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Inter-American Development Bank Annual Meeting in Western Canada
There is an opportunity to hold the Inter-American Development Bank's annual meeting in Canada in 2011. WD could explore advocating for a Western Canada location. Canada's Executive Director at the Bank would be supportive. Multilateral Development Bank meetings are big events, attracting large numbers of senior decision makers. Such a meeting could be a useful venue to showcase Western Canadian capabilities and build relationships. ACOA was involved with the annual meeting of the Caribbean Development Bank held in Halifax in May 2008.

Potential Action Areas Not Directly Under WD's Influence

Smart Park Linkages: About five years ago Industry Canada experimented with encouraging relationships between Smart Parks in Canada and Smart Parks in Scandinavia, and sees the concept as being of possible value for Western Canada and the more advanced areas of Latin America. Chile may be the best target area, given Chile's S&T strengths and the effort that country is making to develop such partnerships.

Science and Technology Counsellor: Canada's Science and Technology Counsellors undertake S&T policy and program monitoring and reporting. The objective is to contribute to Canada's S&T policy and program formulation by maintaining an up to date intelligence scan of S&T policy issues in the host country. Furthermore, these Counsellors promote S&T collaboration with the objective of fostering S&T partnerships of Canadian governmental institutions, the academic community, and the business sector, with their counterparts in the host country. Canada maintains senior Science and Technology Counsellors in Brussels, Paris, Berlin, Tokyo, London, Washington, and New Delhi. No such representative is posted in Latin America. Canada does have trade commissioners with specific S&T responsibilities posted in Brazil and Chile. Recognizing WD's interest in innovation clusters, the absence of a Science and Technology Counsellor in Latin America somewhat restricts WD's ability to readily understand the policy dimensions and collaboration partnership opportunities that may face innovation clusters in Western Canada interested in Latin America.

Latin America Statistics: Statistics Canada data on investment by industry sector for Latin America are embedded within the "all other foreign countries" classification. While this is not WD's direct concern, such data grouped for Latin America, if possible, would be helpful. (The groupings used are U.S., U.K., other E.U., Japan and other O.E.C.D., and all other foreign countries.)

EDC Matching: EDC has an impressive matching capability, wherein bonded Canadian companies are introduced to EDC's major corporate contacts in Latin America. On occasion in-coming buyers tours are arranged. For example the Chilean mining industry is seeking alternative sources of power. EDC organized a visit to Canada by Chilean decision makers. In particular, coal technologies, a Western Canada strength, was highlighted during the visit. This matching service may have the potential for WD, in partnership with EDC, to support commercial, bonded Western Canadian companies associated with innovation clusters.

DFAIT Post Plans: DFAIT post plans are online on the department's intranet system. These post plans could be a valuable resource for WD with respect to any initiative under consideration. WD would benefit from full consultation with DFAIT on any potential WD initiatives in the study area. Senior DFAIT staff in British Columbia noted the value in WD undertaking pan-Western initiatives.

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