WD Success Stories 2008-2009

To advance its mandate to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program and project development and implementation, Western Economic Diversification Canada (WD) pursues four project activities:

• Business Development
• Innovation
• Community Economic Development
• Policy, Advocacy and Coordination

Business Development

This program activity, strengthens value-added production by supporting initiatives in priority sectors to introduce new products, technologies, or innovations to existing production and processes. This program activity also improves access to risk capital and business services for entrepreneurs and small business.

Examples of WD projects and initiatives within this program activity area which specifically advance WD’s strategic outcome of Business Development include the following:

• FPInnovations: Investment in forestry, pulp and paper technology
  
  
  

  Jim Dangerfield, FPInnovations; Alan Potter, FPInnovations; Charles Stewart, Krueger; The Honourable Lynne Yelich, Minister of State for WD; Gerry Salembier, Assistant Deputy Minister, WD; Jonathan Rhone, Nexterra.

  WD provided $1.2 million to FPInnovations, a world leader in creating science-based solutions that support the global competitiveness of the Canadian forest sector, toward the development and commercialization of world leading Canadian bio-energy technologies.
  
  This funding enabled FPInnovations to conduct commercial demonstrations of a biomass gasification system at mills across Western Canada. Currently boilers in the pulp and paper sector, as well as the wider forestry industry, use natural gas to produce the steam and water necessary to make paper products. The proposed gasification system is the first to demonstrate the operation of an industrial boiler using a synthetic gas, generated from waste wood, to produce paper.
  
  Following successful completion of construction, system optimization and performance testing, FPInnovations will engage in a strategy to share the results of its research. It is anticipated the project will demonstrate improved productivity in the pulp and paper sector through reduction of energy costs. They will also use the project findings to look at ways to utilize this new technology in mills across Western Canada.
• BC Wood Specialities Group 2008 Global Buyer Mission
  
  WD supported the BC Wood 2008 Global Buyers Mission (GBM) an event that produced estimated sales of $23 million, and assisted the BC Wood Specialties Group Association to market BC's value-added wood sector to over 170 international buyers from more than 17 countries, including Japan, Korea, Belgium, Germany and the US. For information about the 2009 Global Buyer Mission, held in Whistler, British Columbia visit the GBM 2009 website.
• BioMonterrey 2008 - International Congress and Exhibition of Biotechnology
  
  WD supported the efforts of seven western Canadian organizations to pursue international business leads at BioMonterrey 2008, Mexico's premier biotechnology congress and bio-fair, and the most important event of its kind in Latin America. WD's funds facilitated business-to-business matchmaking meetings at the event, and led to western Canadian firms being highlighted in a Mexican science and technology publication, Conocimiento ("Knowledge") magazine, as well as a Memorandum of Understanding between the Edmonton Waste Management Centre of Excellence and Mexico's water association, SMAAC (Sociedad Mexican de Aguas, A.C.). For more information, visit the BioMonterrey 2008 website.
• Conseil de développement économique des municipalités bilingues du Manitoba (CDEM): Providing access to capital for francophone entrepreneurs in Manitoba
  
  
  

  From lt-rt : Denis Tétrault, President of CDEM, Ron Lemieux, former Manitoba Minister of Transport, William Danylchuk, Reeve of RM of Taché and Minister Vic Toews who is delivering his speech.

  The Conseil de développement économique des municipalités bilingues du Manitoba (CDEM) is one of four Francophone Economic Development Organizations (FEDOs) in Western Canada. CDEM provides consulting and access to capital services to start-up and expanding businesses in Manitoba.
  
  A FEDO impact assessment conducted a case study of the CDEM access to capital programming and found that CEDM generated approximately $36.3 million in investment between 2003 and 2008 through consulting services offered to businesses.
  
  The CDEM also enhances access to capital by referring clients to the Franco-Manitoban loan fund, a partnership with the Business Development Bank of Canada and WD, and by making direct loans from its own investment fund.
  
  For more information, consult the Impact Study of Francophone Economic Development Organizations in Western Canada.

top of page

Innovation

WD’s Innovation program activity translates knowledge into new products and services and to new ways of designing, producing or marketing existing products or services for public and private markets.

Innovation occurs at the firm level, through a highly complex, interdependent system that includes elements such as knowledge infrastructure; basic and applied research and development; highly qualified people; access to adequate patient financing; technology commercialization facilities and support systems; and mechanisms to link these elements to each other.

The goal of this program activity is to strengthen the western innovation system in order to facilitate the development of clusters and to enhance the potential of innovation to create value and wealth.

Examples of WD projects and initiatives within this program activity area and Innovation include the following:

• The pulse crop industry in Saskatchewan
  
  WD’s support of this industry in Saskatchewan has resulted in a commercial success, accounting for 80 per cent ($1.6 billion) of Canadian pulse crop exports in 2008. Pulse crops are legumes, which are high in protein, starch, dietary fibre and amino acids, and form a vital part of human diet throughout the world.
  
  WD investments in the Pulse Crops Field Lab at the University of Saskatchewan resulted in the release 64 new varieties of pulse crops through the Saskatchewan Pulse Growers’ Variety Release Program. In addition, WD’s support of the Canadian International Grains Institute in Winnipeg addresses complementary aspects of the pulse crops commercialization supply chain and has directly contributed to the growth of the pulse processing industry in Saskatchewan. For more information, consult the Innovation Impact Assessment.
• Composites manufacturing in Manitoba
  
  

  

  Sean McKay, CIC's Executive Director, is explaining to Minister Yelich the different applications of composite materials.

  Since 2003, WD has approved $10.3 million in funding to support and kindle the growth of the composites cluster in Manitoba through the Composites Innovation Centre. The Centre has become the nucleus of composites manufacturing in Manitoba and a world leader within the industry. Driven by Manitoba’s industrial needs, the Centre focuses on technological advancement in four key sectors: aerospace, bio-materials, ground transportation, and civil infrastructure.
  
  The Centre bridges the technology gaps of industry from research to commercialization by developing new manufacturing processes, education and skilled labor through their synergies with Red River College and the University of Manitoba. The Centre has facilitated the education and training necessary to build a skilled workforce in Manitoba. The Centre is instrumental in developing capabilities around the core technologies critical for the manufacturing industry to keep pace with competitors as well as advancing technologies to give a competitive advantage to western Canadian companies. For more information, consult the Innovation Impact Assessment.
• The nanotechnology cluster in Alberta
  
  

  

  Minister Ambrose and Mr. Nakano of Hitachi High Technologies

  This cluster, located in Edmonton, Alberta, is built on the foundation provided by the National Research Council’s (NRC) National Institute of Nanotechnology (NINT) and the University of Alberta. WD’s support for the purchase of two pieces of state-of-the-art equipment for the nanofabrication facility at the University of Alberta and for the construction of the incubation facility (NanoFab) for start-up nanotechnology companies on the fourth floor of NINT contributed towards the creation of a critical mass of world-renowned expertise.
  
  NanoFab has become indispensable to its industrial and academic users and is facilitating the growth and sustainability of local companies. The incubation facility at NINT provides local nanotechnology start-ups with well-equipped facilities and proximity to the concentrated talent pool available at NINT and nearby faculties at the University of Alberta. For more information, consult the Innovation Impact Assessment.
• The therapeutic health products cluster in BC
  
  This cluster demonstrates the impact of several related investments in British Columbia. WD investments in the Centre for Drug Research and Development (CDRD), BC Institute of Technology (BCIT), BC Cancer Agency, and Genome BC have attracted additional investment in BC institutions; contributed to the pharmaceutical pipeline from BC researchers, and supported the development of the Natural Health Products (NHP) sector.
  
  The CDRD has calculated that they lever $5 for each $1 that they invest in a project.* Currently, the principal investigators associated with the CDRD’s 19 approved projects have received approximately $5M in grant funding. For more information, consult the Innovation Impact Assessment.
  
  * investments are calculated on the in-kind contribution of expertise, equipment and related expenses.

top of page

Community Economic Development

WD’s Community Economic Planning, Development and Adjustment, and Infrastructure program activities advance the Community Economic Development strategic outcome of economically viable communities in Western Canada with a high quality of life.

Community Economic Planning, Development and Adjustment

WD supports economic development and diversification in communities across the West by investing in projects that sustain local economies and help communities to adjust to changing and challenging economic conditions.

This program activity assists communities by helping assess strengths, weaknesses, opportunities, and potential for new economic activity and to develop and implement community plans. The process involves community-based consultations/facilitation and strives to integrate federal programs, services and horizontal initiatives directed towards western Canadian communities.

Examples of WD projects and initiatives within this program activity area which specifically advance WD’s strategic outcome of Community Economic Development include the following:

• Prince George Airport runway expansion
  
  
  
  

  Minister Jay Hill officially opened the Prince George runway expansion project, accompanied by (L to R) Prince George Airport Authority Chair Jim Blake, Deputy Premier Shirley Bond, Premier Gordon Campbell and Mayor of Prince George Dan Rogers.

  As part of the $200 million comprehensive federal mountain pine beetle response, WD delivered two programs: the Community Economic Diversification Initiative (CEDI); and the Airport Improvements Initiative (AII), which included funding for airport expansion projects in Kamloops, Kelowna, and Prince George. The objective was to enable mountain pine beetle affected regions and communities to pursue new economic diversification opportunities.
  
  One milestone of the AII was the completion of the Prince George airport runway expansion project in February 2009. This expansion will strengthen the local economy by bringing additional national and international flights into the region. Prince George airport anticipates an annual increase of 500 international cargo flight and 50 tourism-related international charter flights now that the runway expansion is completed. That traffic, combined with the marine traffic at Prince Rupert, and the existing railroad, strengthen the Northern British Columbia link to the Asia-Pacific Gateway for Canada and the world.
• Port of Prince Rupert Terminal
  
  

  

  The arrival of three super-post panamax container cranes at the Fairview terminal marked the new Prince Rupert terminal officially open for business.

  An opportunity emerged to develop cruise passenger traffic on the north coast and realize considerable economic benefits for British Columbia. WD provided $1.56 million to create the Northland Cruise Ship Terminal. It is projected that within ten years, Prince Rupert will have the potential to attract 140 vessels and more than 250,000 passengers annually.
  
  The new terminal has seen steady success since it began operations. The number of passengers has increased from 60,000 in 2004 to 100,000 passengers in 2007 when 60 large cruise ships landed in the community. In 2008, a total of $2.4 million in passenger tour revenues were generated and an estimated $10 million in economic benefits was realized. The development of the cruise terminal dock facility has established Prince Rupert as a port of call for international cruise lines en route to Alaska, and will continue to develop the tourism sector in the Pacific Northwest region.
• Société de développement économique de la Colombie-Britannique: Linking francophone entrepreneurs to the 2010 Olympic Games
  
  The Société de développement économique de la Colombie-Britannique (SDECB) invested substantial energy and resources to boosting the participation of francophone entrepreneurs in British Columbia and from elsewhere in Canada as service and product providers for the Olympic Games.
  
  The SDECB created a series of eight information workshops to inform western Canadian entrepreneurs about the potential and processes for establishing business relations with Olympic partners who purchase goods and services. These workshops have since been offered in Quebec, New Brunswick and Ontario. Over 500 people have participate in 15 workshops and many entrepreneurs have taken action to position themselves as goods or services providers.
  
  For more information, consult the Impact Study of Francophone Economic Development Organizations in Western Canada.

Infrastructure

This program activity provides public infrastructure funding in Western Canada to meet the Government of Canada's commitment to growth and the quality of life of all Canadians. Through the renewal and construction of infrastructure in rural and urban municipalities across Canada, communities are able to compete in the regional, national and global economy. WD delivers infrastructure programming in partnership with Infrastructure Canada and the four western provincial governments.

For examples of WD projects and initiatives within this program activity area, which specifically advances WD’s strategic outcome of Community Economic Development consult our Infrastructure Canada Programs in Western Canada section.

top of page

Policy, Advocacy and Coordination

WD’s Policy, Advocacy and Coordination strategic outcome is defined as policies and programs that support the development of Western Canada. In pursuing this strategic outcome, the department engages in three program activities: Collaboration and Coordination, Research and Analysis, and Advocacy.

The following is an example of a federal initiative that encompasses all of WD’s Policy, Advocacy and Coordination activities:

• Asia-Pacific Gateway and Corridor Initiative
  
  The objective of this federal initiative is to establish Canada as a competitive transportation network that facilitates global supply chains between North America and Asia, strengthening the economy as a result of these investments and policy measures. Over $2.5 billion in infrastructure is being invested through the National Policy Framework for Strategic Gateways and Trade Corridors. The various projects approved through WD’s initial commitment of $4.4 million, including a North Asian Posts’ Study Tour of western Canadian science and technology capabilities, were completed in April 2008.

Collaboration and Coordination

Through the Collaboration and Coordination program activity, WD engages other levels of government; other federal departments; industry; academia; and the not-for-profit sector in order to facilitate the development and/or diversification of the western Canadian economy. As a result, WD works in partnership to develop policies and programs, leverage resources, address economic challenges and take advantage of local economic development opportunities.

• Western Economic Partnership Agreements (WEPA)
  
  The objective of the WEPAs is to continue federal-provincial cooperation and collaboration in promoting and supporting sustainable economic development through new four-year, agreements (2008-2009 to 2013-2014). The WEPAs, which are equally cost-shared with each of the four western provinces, will allocate $50 million in each province towards federal and provincial priorities, including research and development; trade and investment; business productivity and competitiveness; and value-added production in traditional industries.

Advocacy

WD’s Advocacy program activity aims to advance Western Canada's interests in national policies, priorities and programs by facilitating an improved understanding and awareness by policy makers of regional issues and opportunities.

Specific examples of this activity include providing input into Cabinet submissions, establishing and participating in western-based consultation forums, advocating in support of specific regional projects or issues, and engaging western Canadian stakeholders in the development and implementation of national priorities.

Examples of WD projects and initiatives within this program activity area which specifically advance WD’s strategic outcome of Policy, Advocacy and Coordination include the following:

• Industrial and Regional Benefits Tours
  
  During 2008-2009, WD participated in a total of 11 events at the regional (Western Aerospace Alliance Conference, Abbotsford Air show, Saskatchewan Defence Opportunities Forum), national (CANSEC defence trade show; Unmanned Vehicle Systems Canada Conference; DefSec Atlantic defence trade show; Maintenance, Repair and Overhaul Workshop) and international (Farnborough International Air Show, Senior Aerospace/Defence Trade Commissioners Meeting) levels to promote western Canadian industry and help individual firms network with international aerospace and defence companies.
  
  WD also supported and attended supplier development events held by foreign aerospace and defence companies such as Lockheed Martin Maritime Systems and Sensors, BAE Systems, BAE Systems Hagglunds, Daimler AG/Mercedes-Benz Special Trucks.
• United Airlines flights
  
  
  
  

  United Express plane taking off from runway 15 at Saskatoon Airport. Photo from www.jetphotos.com

  Through the Canadian Consulate in Chicago, in 2007-08, WD highlighted the economic growth occurring in Saskatchewan and Western Canada. WD’s advocacy efforts were successful in attracting United Airlines flights out of Saskatoon and Regina into Chicago and Denver. United Airlines presence will bring more visibility to Saskatchewan and Western Canada and will assist the business community of Saskatchewan expand its export markets.
• Veterinary and Infectious Disease Organization/International Vaccine Facility (VIDO/InterVac)
  
  WD collaborated with the University of Saskatchewan, western stakeholders and other federal government departments to advocate, develop the policy rationale, and coordinate funding that brought the VIDO/InterVac initiative to fruition.

Research and Analysis

Postdoctoral fellow Dr. Ursla Fernando and Dr. Alexander Zakhartchouk test samples at the Vaccine and Infectious Disease Organization. (Photo from our own stockphotos)

WD’s Research and Analysis program activity involves preparing and disseminating information that results in an increased understanding of western Canadian challenges, opportunities and priorities, and which provides the factual intelligence necessary to undertake internal or external policy and program development. This can include externally-generated or in-house research involving economic overviews; environmental scans; analysis of federal or other government documents; and sectoral or issue analysis that supports departmental policy, planning or program development. This program activity includes external consultation on key economic issues or opportunities facing Western Canada with leaders from both the private and public sectors.

Examples of WD projects and initiatives within this program activity area which specifically advance WD’s strategic outcome of Policy, Advocacy and Coordination include the following:

• Asia Pacific Foundation of Canada
  
  The Asia Pacific Foundation of Canada conducted a pan-western research project aimed at identifying opportunities linked to the development of Canada’s Asia-Pacific Gateway economy. The two-year initiative engaged researchers and stakeholders in order to identify strategies and actions to capitalize on economic development linked to multi-billion dollar public investments in Gateway-related transportation infrastructure in Western Canada.
  
  For more information, visit the Asia Pacific Foundation of Canada website.
• Airport Facility Study
  
  In 2007-2008, WD partnered with the Saskatchewan Aviation Council and the Saskatchewan Ministry of Highways and Infrastructure, approving $42,500 toward total project costs of $100,000 to commission a Saskatchewan Air Transportation Strategy. The Strategy, outlined in a 181-page study report by LPS Avia Consulting, was released in February 2009 and sets out a strategic plan for the development of air traffic infrastructure in Saskatchewan.
  
  The report identifies important strategic improvements required to meet growing transportation needs in Saskatchewan. The report also provides a comprehensive framework through which the municipal, provincial, and federal governments can work with private interests to ensure that the Saskatchewan airport network is suitable for present and future air transport needs.
• Winnipeg Cluster Study
  
  In 2007-2008 WD partnered with Destination Winnipeg, committing $80,000 to undertake an industry cluster and business analysis of the City of Winnipeg. The purpose of the study was to gain an improved understanding of Winnipeg’s economy and to recommend strategies for government and business to pursue in support of Winnipeg’s economic development.
  
  The project consisted of three components. The first component involved quantitative forecasting of economic trends in the following ten Winnipeg industries through 2017, including: aerospace, agri-food, advanced manufacturing, biopharma, convergent media, energy and environment, financial services, information and communication technology, tourism and transport logistics.
  
  The second component of the project involved a business analysis of Winnipeg's agri-food sector. "Winnipeg Industry Cluster Research and Business Opportunity Analysis: Agri-Food" examined the key factors driving change in this sector, as well as opportunities in hemp, pulses, and biomass. The third component of the project involved a business analysis of Winnipeg's advanced manufacturing, energy, and environment sector. "Winnipeg's Advanced Manufacturing and Energy & Environment Cluster Study" examined the development of this cluster and provided recommendations for government action. The study provided critical new information on the Manitoba economy and will help guide economic development decisions by all three levels of government.
• The NEXT West Project
  
  This initiative was a three-year (April 2005 to March 2008) research, consultation and communications project that investigated economic, generational, and community transformations in Western Canada, with the purpose of providing strategic insight and advice for western Canadians, their governments and their communities. The total cost for the project amounted to $1,855,600 to which WD contributed $652,100 (36 per cent). Other sources of funding included several foundations, corporations, and the provincial government of Alberta.
• Survey of Western Exporters
  
  In 2006-2007, WD approved $119,300 for the Western Centre for Economic Research (WCER) to undertake a survey on the export activities of western Canadian small- and medium-sized enterprises (SMEs). Completed in 2008-2009, the survey of 400 SMEs from across the West investigated sector-specific barriers to exporting, marketing methods employed by western Canadian companies, participation of SMEs in export supply chains, and the relationship between export activity and the growth strategies of SMEs.
  
  To access the Reaching Out: Exploring SME Exporting Opportunities and Challenges study, visit the WCER website.

Offical Languages

• Economic Development Initiative
  
  Canada’s Roadmap for Canada’s Linguistic Duality 2008-2013: Acting for the Future, led by Canadian Heritage, brings together 13 departments and an investment of $1.1 billion over five years to expand access to the benefits of linguistic duality among Canadians; to support the vitality of Official Language Minority Communities (OLMCs); and to capitalize on the economic benefits of linguistic duality for all regions of Canada.
  
  The Economic Development Initiative (EDI) Roadmap, led by Industry Canada, brings together five departments and an investment of $38 million, of which WD will receive $3.2 million. The goals of EDI are to foster the development of new business expertise through innovation, entrepreneurship, partnerships, and diversifying economic activities. Furthermore, the EDI will contribute to the promotion of the economic benefits of Canada’s linguistic duality and the linguistic skills of Canada’ human capital.
  
  In 2008-2009, WD approved cost shared funding of $255,600 through the Economic Development Initiative (EDI) and the Western Diversification Program (WDP) to enable Le Collège universitaire de Saint-Boniface to purchase equipment for the Faculty of Science and the Multimedia and Communications program. The new equipment will allow the Faculty of Science to undertake research in areas such as bio-insecticides, new drug sources, and the development of disinfectants from plants. Upgrades to the multimedia lab will include equipment necessary to meet current industry requirements, providing graduates with skills in film subtitling, closed-captioning, and multimedia platform technologies in both official languages.
  
  For more information on this project, consult the news release regarding Le Collège Universitaire de Saint-Boniface funding.