Ottawa studying how to help Canadian tech startups become billion-dollar firms

OTTAWA — The us government is closely studying tips about how to help Canadian tech startups come to be global testimonials — transformations that may eventually provide a boost for that ailing economy.

Trudeau’s rebranding of Canada offers sunshine to Davos, but it’s cold comfort for battered oilpatch

In a speech in Davos, Pm Justin Trudeau distanced Canada from its natural resource economy (i.e. gas and oil), and instead played up its economic diversity and it is technology brainpower in their efforts to “rebrand” the country

Read more

The findings of a recent report they are under analysis through the Liberal government, that has also been told internally that building medium and small tech firms into billion-dollar players remains a key challenge.

The review comes amid debate how better to revive the economy, which is struggling with low commodity prices.

The study, commissioned through the federal and Ontario governments, outlines possible strategies to help budding entrepreneurs become high-growth operations.

Some startups pack the potential to eventually drive national prosperity and be “significant employers of tomorrow,” said the September document made by the Centre for Digital Entrepreneurship and Economic Performance, a fiscal think-tank.

The research into the findings comes as the Liberals prepare their first budget, expected late next month. Some anticipate the fiscal blueprint to incorporate measures to boost the tech and startup sectors.

“In an environment of stagnant domestic growth and continued global economic uncertainty, Canada has a number of critical economic priorities to address within the months and years ahead,” the study says.

Along with diversifying the economy and expanding trade and exports, the document highlights the necessity to turn research and technological innovation into high-growth Canadian businesses that compete on the global stage.

Related

Canadian manufacturing sales beat expectations in DecemberTrudeau promotes spending to boost economy as economists warn of weak outlook

To make it happen, it explored six “priority areas” for Canada:

— Concentrate on better identifying companies with high potential and help them to scale up.

— Improve accountability by demanding better reporting and more data transparency from startup assistance groups — like business incubators and accelerators. It’s seen as a method to shed more light on the actual return on public investments.

— Attract more large corporations to participate within the success of Canadian incubators and accelerators. These partnerships tend to be more prevalent in the United States.

— Raise the quality of mentor programs by connecting more high-potential companies with business leaders who have experience building billion-dollar tech firms.

— Increase the exposure of startups to international markets.

— Explore new models to increase the function of investors in startups.

“Canada’s continued underperformance around the creation of high-growth firms, and limited transactional activity within its startup community, speaks to real weaknesses within the entrepreneurial support ecosystem,” said the report, commissioned under the previous Conservative government.

The new government confirmed it will read the document to further its knowledge of how incubators and accelerators can “drive innovation, entrepreneurship and the global competitiveness of Canadian companies,” Hans Parmar, a spokesman for Innovation, Science and Economic Development Canada, wrote within an email.

The government, he added, is committed to developing policy based on sound evidence.

Internally, a federal memo prepared last be seduced by the deputy minister of Industry Canada, said the six priority areas within the findings “can be taken by governments and the BABI industry (business accelerators and business incubators) to assist address weaknesses in Canada’s entrepreneurial support system.”

The memo and also the report were obtained by The Canadian Press under the Use of Information Act. A version of the research has additionally been posted around the think-tank’s website.

Meanwhile, “secret” briefing material sought to attract the attention of Navdeep Bains, the brand new Economic Development minister, to several “key areas of challenge” facing Canada and businesses within the global digital economy.

Growing small- and medium-sized tech firms to become listed on the ranks of high-growth and billion-dollar companies was one of the important challenges, said the “hot issues” memo. The document was also obtained through the Canadian Press underneath the Use of Information Act.

Since coming to power last fall, the Liberals have emphasized the country’s knowledge-based economy.

Last month, Prime Minister Justin Trudeau used a high-profile international speech to advertise the idea that Canada has more to provide than just commodities, although he acknowledged they were still a crucial part of the economy.

“My predecessor wanted you to definitely know Canada because of its resources,” Trudeau told the planet Economic Forum in Davos, Switzerland. “I want you to understand Canadians for our resourcefulness.”

 

The Canadian Press