2007 Ottawa Report – Ottawa Growing its Innovation Economy

OTTAWA– OCRI, Ottawa’s lead economic development agency, released the 2007 Ottawa Report, formally known as the OCRI Report in September. This annual initiative provides a comprehensive and authoritative perspective on the most recent economic, technology and educational indicators for Ottawa. The Report compiles statistical data which shows the city’s strengths and points out areas needing improvement to maintain economic growth.

The newest edition of the Ottawa Report focuses on economic development, innovation and commercialization, and critical talent. These three key themes spotlight the economic foundation of Ottawa, presenting the city as a knowledge-based and innovation-driven economy.

Ottawa is one of North America's fastest growing economies. The city boasts the highest level of R&D spending per capita in the country, local companies invest more than $4 billion in research and development projects annually along with more than $1.5 billion annually in public sector research. A recent CIBC study reported that Ottawa experienced the strongest momentum of economic activity in Canada during the first quarter of 2006.

“Our economy’s growth is strong and steady,” notes Jeffrey Dale, OCRI's President and CEO. “To sustain Ottawa’s continued economic success we need to focus on attracting new investments, narrowing the gap between innovation and commercialization and recruiting and retaining highly educated talent.”

The Report builds a strong case for investors to do business in Ottawa – highlighting the city’s many competitive advantages. The region possesses a strong administrative and operational support infrastructure necessary to start, operate and expand a business – features that make Ottawa, Canada’s innovation capital.

The science and technology sectors continue to fuel Ottawa’s growth and development. However, the 2007 Ottawa Report identifies that the city’s knowledge-based industries face the unique challenge of a dwindling amount of risk capital investments directed toward start-up enterprises and a scarcity of available talent, key elements to a company’s success.

Nortel, Ottawa’s largest knowledge-based corporation, hopes to see talent strategies put in place that will keep Ottawa on top. “Ottawa is the main hub for Nortel's technology innovation, so it is important for us to hire and retain highly skilled workers locally,” says John Roese, Chief Technology Officer, Nortel. “Competition is tight for top talent with the hottest skills and we expect it to get even tougher as baby-boomers retire in greater numbers. However, Ottawa has all the building blocks to overcome this challenge. In order for the city to maintain its leadership role in the global high tech ecosystem, it will be crucial for industry, academia, and government to work together to address key challenges – such as declining student enrolment in technology programs and integrating immigrants into the workforce.”

Ottawa is a world-class city. It has extensive international trade links, a diplomatic core, a thriving business sector, is home to the Federal government and has a high quality of life. The 2007 Ottawa Report captures all the advantages of living, working and doing business in the region. It also reinforces the importance of addressing problems that are specific to the city to continue on the path of economic prosperity.

Key findings in the 2007 Ottawa Report include:

• there are approximately 79,063 students registered at post-secondary institutions in Ottawa;
• total enrolment in science and technology courses at Ottawa’s three major universities has decreased by 21 percent between 2001 and 2005;
• within the last 12 months alone, enrolment has decreased by nine percent in science and technology courses;
• the number of pupils having taken some form of co-op education has increased by close to 21 percent in the 2005-2006 academic year;
• the number of co-op employers providing co-op placements also increased by 27 percent over the year prior, reflecting the emphasis that Ottawa area employers place on these co-op programs;
• the Ottawa Region has the second largest concentration of science and engineering employment out of 316 North American cities, surpassed only by Silicon Valley. One in nine employees is a scientist or engineer;
• economic growth in the Ottawa Region fared far better than other census metropolitan economies in Ontario in 2006, with the GDP having increased by 2.6 percent to $41.5 billion;
• personal income per capita also increased by 6.6 percent to $39,168 – a stark increase over the previous annual growth rate of 3.9 percent;
• the Ottawa Region`s unemployment rate decreased to 5.2 percent in 2006, a decrease from the 6.6 percent unemployment rate in 2005. The last time unemployment was this low was in 1988;
• the number of knowledge-based companies in Ottawa decreased by 0.4 percent (decreased by 8) in 2006 to 1,803;
• self-employment has become a more prevalent form of employment now than it was just over ten years ago. This growth in self-employment and the number of start-ups has led analysts to suggest that the region is home to a highly ‘entrepreneurial culture’; and
• after recording a total VC investment in 2005 of $359.40 million (spread over 29 separate deals), in 2006 the disclosed number stands at $264.65 million with a total of 17 deals.

About OCRI
OCRI (Ottawa Centre for Research and Innovation), the city's economic development corporation, is leading the way for Ottawa. OCRI is the rallying point to bring business, education and research together to create the winning economic conditions that allow Ottawa's technology companies to thrive locally and compete globally. At OCRI we promote sustainable economic development to maintain our high quality of life. For more information on OCRI visit our website at www.ocri.ca and for more information on the Ottawa Region please visit www.ottawaregion.com.

For information contact:

Tiffany Pitter-Lawrence
Manager, External Communications, OCRI
Tel: (613) 828-6274 ext. 256
Cell: (613) 851-0768
Email: tiffanyl@ocri.ca

Source: OCRI